Indianapolis Times, Volume 46, Number 215, Indianapolis, Marion County, 17 January 1935 — Page 1

Tango By Vida Hurst Copvriibt, R*fi*t#r and Tribnt Syndicate.

CHAPTER ONE A S the orchestra began the first strains of a tango Carlos and Treasure smiled at each other. “Think you can do it?” he said. “I know I can,” the girl answered. “It’s no different from dancing it to the victrola and goodness knows we’ve practiced it enough.” No one else In the night club noticed as the young couple left their obscure table by the wall, but they had not gone once around the floor before the other dancers were pausing to watch them. The boy, swarthy and fiery, advanced and retreated with the passionate abandon possible only to a South American. The girl, delicately blond with hair like corn silk and blue eyes of an intoxicating sweetness was a perfect foil. Even the cheap white dress she wore could not conceal the lissome beauty of her figure, the flashing symmetry of her legs. As if unconscious of the fact that they were now alone on the floor they moved through the measures of the dance to its conclusion, gravely triumphant. There was a burst of applause. Carlos whispered, “Do you hear that, Treasure? They are clapping for us.” Flushed and silent they returned to their table the center of all eyes until the music started again. “That was perfect,” the boy approved. “Aren't you glad now I made you practice it?” "Yes, and you've been awfully patient with me, Carlos.” “Most American girls are too self-conscious to do it well but you have learned to do it beautifully.” "It’s the most fascinating dance in the world.” she admitted. Absorbed in each other they did not observe the stout, smiling man who had followed them to their table. “That was a mighty pretty exhibition you put on just now,” he said. “I've seen the tango danced in many different places but I never 6aw it done more gracefully.” Carlos’ black eyes beamed. “I was born in Argentina,” he said proudly. The proprietor of the night club bowed and smiled broadly. “It is a pleasure to have you with us ” His little eyes were almost hidden in layers of fat as he waddled back towards the bar. Pete Fernando hadn’t spent almost 40 years in the entertainment business without learning how to size up his customers. He knew that these were a couple of inexperienced youngsters. The girl looked as if she had never seen the inside of a night club before. What he did not know was that they had practiced for weeks to make this appearance. The Bermudas had lived in the same neighborhood with the McGuires foi more than a year. Carlos worked in an oil station and half the girls on Filmore-st were crazy about him. There wasn't one of them who hadn’t longed to be in Treasure's shoes those nights he was teaching her to' tango to the music of his mothers victrola. Her blue eyes were sparkling as she looked across the table to her companion. “You're different tonight,” Carlos said. "I’ve never seen you like this befort.” “It’s the excitement,” she confessed. “I had no idea it would be so wonderful. The lights and music and all the lovely, lovely ladies.” “You are more beautiful than any of them.” he declared passionately. Beneath 4he table his hand sought hers but she evaded him. "Let's dance again.” His eyes burned into hers but Treasure was conscious of nothing but her surroundings. The tawdry red hangings and gilt fixtures were scarlet and fine gold to her inexperienced eyes. Carlas himself was only a part of the entire glamorous setting. She did not repel his advances. She did not even notice them until they had left the club and were on a street car bound for home. “Wasn't is gorgeous?” she sighed. His heavy eyebrows met in a scowl above his devouring eyes. “It could have been better.” “Why. Catlos, what do \ m mean?” “You didn't pay any attention to me. You didn’t even seem to know 1 was there.” Bewilderment was in her voice. “I didn't dance with any one else.” “No, but your eyes were all over the place. You weren’t thinking of me at all.” “Everything was so new and strange to me. Carlos. I was trying to see it all at once.” ‘“While I was thinking of nothing but you,” he announced dramatically. For one moment she forgot that he was just a neighborhood boy who had taught her to dance. He became as darkly mysterious as if sne never had teen him before. When he whispered “Can’t you see I'm mad about you?” a flash of (Turn to Page Nine)

TODAY’S WEATHER

Hourly Temperatures 6 a. m 34 10 a. m. . . 33 7a. m 33 11 a m . 34 8 a. m 32 12 tnoon) . 36 9a. m 32 Ip. m ... 37 Tomorrow's sunrise, 7:04 a', m.; •unset, 4.48.

The Indianapolis Times Fair and colder tonight with lowest temperature about 20; tomorrow increasing cloudiness and warmer, followed by snow and rain.

NR A, W Wf DO OUR MRT

VOLUME 46—NUMBER 215

BLOW ON HEAD KILLED INFANT, JURY IS TOLD Lindbergh Baby Slain on Night of Kidnaping, Doctor Bares. GREWSOME STORY TOLD Morbid Details of Finding Tiny Body Leave Flier Flushed, Unhappy. : By Unit- r^Prrss FLEMINGTON, N. J., Jan. 17. : Col. Charles A. Lindbergh’s son was : instantly killed by a blow received | during the actual kidnaping, the : Government disclosed today through physicians’ testimony in the murder j trial of Bruno Richard Hauptmann. Morbid details of the discovery of the baby’s body were spread on the ; records through those who discov-

ered the child’s body in the Sourlands, and through those who made an exacting identification of it. Poignant as the experience was, par ti c ularly to Col. Charles A. Lindbergh, who sat, flushed and unhappy, through the recital, it was necessary to the state's case. Necessary to refute many strange contentions of the defense, among

them that the body Col. Lindbergh identified as that of his baby might have been a child who had strayed from a nearby orphanage. The state opened this phase of the case by putting on the stand William Allen, Negro, and Orville Wilson, his partner, who made the chance discovery near the Mt. Roserd, four and a half miles from the Lindbergh home. It began its testimony to refute any supposition that Col. Lindbergh was mistaken, when Sergt. Zapolsky was called to say that the baby’s hair still clung to his head when he was found. The hair is important, because it matched a curl treasured by Mrs. Dwight W. Morrow, the baby’s grandmother. Bares Chilling Details It followed the identification line through Inspector Harry Walsh of the Jersey City police, who told of matching the clothing found on the body with cloth from the Lindbergh home. Then it called Coroner Walter Swayze, who signed the death certificate, and Dr. Charles Mitchell, the coroner's physician who made the autopsy. Dr. Mitchell took his hearers I through the chilling details of his I examination, and supported the state’s opening declaration that: 1. Death was caused by a fractured skull 2. Death occurred on th? night of the kidnaping. Reilly Hammers at Testimony Cross-examination failed to break down any of the witnesses, and with this phase of the case over, the state began to outline its story of the ransom money and the recovery of it. Francis D. Bartow partner in J. P. Morgan & Cos., and several other employes of the firm, testified that they prepared the ransom money which Mr. Bartow turned over to A1 Reich, companion of Dr. John F. Condon. At that point recess for lunch was ordered. Edward Reilly, chief of defense counsel, charged the methods employed by Dr. Mitchell in his autopsy had been “poor.” He asked if the doctor had considered that “you might have died before a | suspect was arrested and then there would be no witness to the autopsy.” Shouts at Reilly “No.” Dr. Mitchell replied. Q —You didn't think this case of sufficient importance to call in another physician from New Jersey. New York, and Pennsylvania? A— No. I considered myself competent. At one point Mr. Reilly interrupted the witness. “Let me answer your question, will you?” Dr. Mitchell shouted. Hauptmann's counsel earlier had insinuated that the body found in i the Sourland Mountains and identified as that of the Lindbergh baby, (Turn to Page Three)

McNutt Forces Face First Test on State NRA as Republican House Caucus Pledges Opposition

First test of administration strength in the 1935 Indiana General Assembly will come on the state NRA bill, it became evident this afternoon with the 35-member Republican minority in the House of Representatives pledged solidly against the legislation. The Republicans caucused last night and agreed to oppose creation of a state NRA. a bill for which was introduced Tuesday with administration approval. The Republicans, it is reported, are afraid of price fixing provisions which may be in the new bill, which is being drafted to replace the original bill. The latter is being held in committee. Democrats admitted today they expect defections from the majority’s ranks and believe that the bolters may be numerous enough to join with the solid-voting Republcan minority to block the bill. The Republican caucus last night also included discussion of the $1.50

McNutt Orders Drastic Buying System Change Sweeping Revisions in Practices of State’s Purclfasing Department Demanded After Probe Conducted by The Times. (Editorial on Page 14) , Gov. Paul V. McNutt today ordered sweeping changes in the practices of the State Purchasing Department. At the same time he sharply declared that he would demand restitution in cases “where it appeared the state had been overcharged” for supplies. In an executive order, in which he cleared officials and employes of the department of any dishonesty, he directed that the present purchase methods be completely overhauled by Jan. 25.

BANDITS STAGE 2 RAIDS HERE SIOOO Seized by Trio in Holdups of Downtown Office Staffs. Three bandits made two hit-and-run stops in downtown offices here today within 15 minutes of each other, gathering almost SIOOO in their stops. Two waited in a car at the Western Auto Store, 363 N. Illinoisst, while one went in. He reached the foot of a stairway leading to a balcony office of Manager J. I. Liebert and started up. Fred Blanton, 1434 Roosevelt-st, standing at the bottom of the stairs, stopped him. “Pardon me, I think I’m next,” Mr. Bfanton said, and started upstairs ahead. The bandit followed and ordered Mr. Blanton and Mr. Liebert to lie on the floor. He picked up two cloth sacks with between SIOO and $l5O in them, and left. Clerks and customers carried on business as usual ill* full view of the bandit. He joined the two in the car and then they drove to the National Furniture Cos., 335 W. Washingtonst, where all three entered brandishing guns. They herded six clerks and Nathan Kahn, owner, .into an inclosure along the side of the store, where one remained to guard them. Two went back to the rear in the credit department, off which, in a small room, auditors were going over the books. There they threatened three girl employes with guns, and compelled D. W. Sherman, credit manager, to open the vault, from which they took between S7OO and SBOO in cash. They brought the three girls and Mr. Sherman to the inclosure at the side, herded them in with other employes and left. The auditors were undisturbed and did not know' the store had been held up. Thoso threatened by the men w'ere Mr. Kahn, who lives at 3:25 N. Pennsylvania-st, his son, Roger; Mr. Sherman, 4630 College-av; Frank Kelly, 341 N. Belle Vieu-pl; Baxter Trout, 545 Fletcher-av; Mrs. Opal Schoener, 1120 N. Tuxedo-st; Orville Harper, 1432 Hoyt-av; Miss Olive Davis, 229 Orange-st; Sophia Zerfas, 2179 N. Pennsylvania-st; Wilda Ellis, 421 Congress-av, end Edward Hughes, 4042 College-av. WORK RELIEF BILL TO COME UP NEXT WEEK Rule to Permit Amendments, Says Speaker Joseph W. Byrns. By Uniti and Press WASHINGTON. Jan. 17. The Administration’s $4,000,000,000 work relief bill probably will be brought up in the House next week under a rule permitting amendments, Speaker Joseph W. Byrns said this afternoon. POLITICAL CHIEF KILLED Wheeling Democratic Leader Dies in Car Crash. By l nitrd Pr . .< PARKERSBURG. W. Va.. Jan. 17. —John W. Reister. Wheeling Democratic political leader. was killed instantly today w r hen his automobile crashed into the rear of a parked produce truck at Waverly. W. Va., 12 miles north of here. He was 50.

Dr. Mitchell

tax limitation law. but no decision was reached on the proposal to eliminate the emergency clause in the law which permits tax-making groups to get around the limitation. Gov. Paul V. McNutt today received from the General Assembly the measures extending the tax moratorium through 1936 and paving way for the special election in the Second Congressional District. The tax measure action was delayed by adjournment of the Senate yesterday. The enrolled bills were signed by Speaker Edward H. Stein before the House after they had been received frem the Senate. By a 90-1 vote, the House adopted the bill introduced by Rep. Martin J. Downey (D„ Hammond) inflicting the death penalty for ransom kidnapings. Rep. Charles L. Coffin fR., Marshall) who cast the only dissenting vote said he was a conscientious objector to capital punishment.

INDIANAPOLIS, THURSDAY, JANUARY 17, 1935

He also assigned the State Board of Accounts to make a detailed study of the Purchasing Department’s records to “determine whether improvement can be made in the operation of the department.” Since last summer The Indianapolis Times nas been quietly investigating state purchase methods with the co-operation of the Governor. Last week this newspaper laid the complete results of its study before him. Gov. McNutt conducted his own inquiry and today’s action resulted. Both the Governor’s investigation and that of this newspaper arrived at identical conclusions: Merely Rubber Stamp’ That the Purchasing Department had drifted into the position of a mere rubber stamp for department heads in the buying of office equipment. That, while the department had more than paid its way in institutional buying, it had allowed loose methods to creep into other fields of purchasing. That because of these loose methods unscrupulous salesmen had overcharged the state in numerous instances. That frequently specifications either did not exist or were carelessly drawn. That the department failed in certain types of purchase to bulk its orders and thus obtain the ultimate in savings for the taxpayers. Lax Practice Scored That there wafe no evidence of graft or corruption on the part of state officials, although lax practices in several instances might cause inferences of dishonesty to be drawn. That bidding procedure needed standardization. That, despite these deficiencies, particularly in buying office supplies, the Purchasing Department had brought about considerable improvement over the old method of independent buying by department heads. That the Conservation and Highway Departments, each of which has its own engineering staff, had developed highly efficient purchase systems. That the Purchasing Department was seriously undermanned. That there had been technical violations of the purchase law. Immediate Remedy Provided The Governor’s order provided an immediate remedy for the most serious defects and left to the State Board of Accounts the working out of the details. The executive order follows in full: “To All Persons Concerned, Greetings: “My attention has been directed to certain conditions which have developed in the Central Purchasing Department as a result of the rules and regulations which have been in force. An investigation was made at my order and from the reports I am convinced that there have been no acts of dishonesty on the part of any executive or employe of the Central Purchasing Department. “It is my firm belief that many of the matters disclosed are the direct result of the imposition of the various state departments on the Central Purchasing Department. In other words, the various state departments and divisions have sought to have their purchases made in accordance with their desires and upon their specifications rather than to submit their request, through their respective administrative officer, to the Central Purchasing Department, to be purchased (Turn to Page Six)

Other important House measures offered: • A bill by Rep. Chester V. Parker (R., Pittsboro) abolishing the 15cent state property tax and exempting bonds issued prior to Aug. 8, 1932, from the $1 and $1.50 tax levy maximums; authorizing township trustees temporarily to abandon schools in which last year’s average daily attendance was less than 15; a bill requiring deputy sheriffs, city and state policemen to furnish SIOOO surety bonds; a bill prohibiting discrimination in employment on public contractors of any workman on account of his religion. or race; prohibiting game wardens from carrying firearms and prescribing fines of SSO to SSOO for violation; lowering to 2750 the minimum population of fifth class cities and providing fines, license suspensions and 90-day jail sentences for intoxicated motorists.

CONGRESS GETS ROOSEVELT SOCIAL SECURITY PROGRAM

OFFICER HUNTS SON IN BRUTAL SLAYINGPROBE Patrolman Gets Out of Sick Bed, Promises to ‘Get , Story.’ It was the stark duty of Patrolman George Liese to hunt his own son in connection with a murder today, and he went about it with the objective courage of a father of ancient Rom^e. Released from his duties as a radio patrolman by Chief Mike Morrissey, Patrolman Liese promised he would use all his police training and all his knowledge of his son’s habits to find him and bring him m. The son, Richard Liese, 16, is sought in connection with the murder last Tuesday of James Eli Hunt, 25-year-old bakery salesman, father of a 4-months-old child, who was mortally wounded by a gunshot in his truck at 73d-st and Ditch-rd. Deputy Sheriffs and police said they had positive knowledge that young Liese had been on the truck during afternoon rounds with Hunt, but Liese has not returned to his home. 11l with a heavy cold and off duty. Patrolman Liese, who is 45, arose from his sick bed yesterday and tramped for hours about in the rain at the scene of the crime, hunting clews. Haggard, he returned late last night to his home, 4418 Manlove-av, and asked pertinent questions about the meager evidence left at the scene of the crime his son is suspected of having committed. “Why” he asked, as his wife stood nearby in their modest liv(Turn to Page Six)

Paroled Convict Blamed for San Quentin Break Chief Plotter, Under Arrest, Smuggled in Guns Used in Sensational Delivery, Officials Charge. By United Press SAN QUENTIN PRISON, Cal., Jan. 17.—A paroled convict anxious to help his friends still in San Quentin Prison plotted the most amazing jailbreak in California prison history, officials charged this afternoon. The story of the delivery was pieced together from the confessions wrung from three convicts recaptured after two hours of freedom, ended when a passe cornered them and fatally wounded a fourth member of the fugtive band. The stories named Clyde Stevens, 28. a paroled convict, and Rudolph

SCHWAB TO TESTIFY IN MUNITIONS PROBE Steel Magnate Summoned for Renewed Inquiry. By United Press WASHINGTON, Jan 17.—Charles M. Schwab, head ■of the Bethlehem Steel Corp.. will be a witness before the Senate Munitions Committee when it resumes its inquiry into the arms business, It was learned this afternoon. The Senate voted to give the munitions probers an additional $50,000 today. HEAVY RAINFALTbRINGS DROP IN TEMPERATURE Warmer Weather Is Promised in This Vicinity Tomorrow. With the temperature falling after the heavy downpour of yesterday, J. H. Armington, local meteorologist, today promised warmer temperatures for tomorrow. He predicted, however, that the mercury would fall to 20 tonight. Traffic conditions were slowed almost to a standstill and commv.nication lines were endangered last night in northern Indiana by the sleet and freezing temperatures.

Adopted by the House and sent to the Senate were eight fish and game bills. The Senate introduced five new measures, passed 16 bills through second reading and adjourned until this afternoon. The House will meet again at 10 tomorrow. A measure introduced by Senator Jesse E. Wade (D., Mt. Vernon), would empower county commissioners to appoint an investigator to collect overdue interest on school fund loans and recommend foreclosure of such loans if necessary. The House advanced the administration's amendments to the financial institutions law which will release between $3,000,000 and $4,000,000 of frozen deposits in defunct financial institutions. The bill is ready for final House consideration tomorrow. The Black-Reisinger old-age pension amendments will be a special order of business in the House at 11 tomorrow.

Entered as Second-Class Matter st Postofiice. Indianapolis. Xnd.

A SCALDING PARTY

, /,#/ % NL*! ‘

She didn’t want to be a bathing girl, Vera Reed, 21 (above), night club beauty, told Chicago police, but George Eastman Dryden, Kodak millions heir, insisted and shoved her, fully dressed, into a tub of scalding water at a party in his apartment, she declared. Mr. Dryden, freed on S2OO bond, scoffed at her story, saying that he merely meant to be a good host and sober her up. Someone turned on the hot water tap by mistake, he said, and furthermore he didn’t push her.

“brains" of the plan. Stevens, whom police posses found hiding in a river shack early today, shipped four revolvers into the prison on a .construction truck, the confessions said. Hidden under the cowl of the truck, the weapons rode in and out of the prison for several days before the plotters had a chance to remove them and carry them into the prison carpenter shop. There two of the guns were placed in a keg of nails and the other two were hidden under a band saw to await the day the State Board of Prison Terms and Paroles met at the prison. Plotters Strike Swiftly The plan was to seize Warden James B. Holohan and Frank C. Sykes, president of the board, and, using them as hostages, force their way from the prison. Straight told Alex McKay, Los Angeles robber, of the plan. They persuaded Joe Kristy, 26, Los Angeles kidnaper, and Fred Landers, 27, San Francisco robber, to join them. Kristy, McKay and Landers were working on a house project outside the walls near Holohan's home. The board met yesterday and the plotters struck. Straight, using another convict's coat, walked through the gate and boarded the same truck which had brought in the guns. The truck was driven by McKay to the warden’s home, where the other plotters joined the group. Warden’s Skull Fractured Unnoticed by guards, they entered the rear door of the residence and met Warden Holohan. Straight, according to the story told by the others, slugged the official with the butt of a revolver Warden lTolohan’s skull was fractured. He is in critical condition. Mr. Sykes, Warren Atherton and Joseph Stephens, members of the board, and Mark Noon, secretary', were in the dining room. They were forced to change clothing with the prisoners and to march to Warden Holohan's automobile standing at the front door. Two guards met on the way were commanded to accompany the party. Using the six captives as hostages and shields, the quartet fled northward, turned back and headed for the coast. They were trapped at Valley Ford, 40 miles from the prison, and in the battle that followed, Straight received fatal wounds. Meanwhile, Stevens, sought for days as the bandit who had held up four San Francisco banks, was traced to an island in the San Joaquin delta region, where he presumably had gone to keep a rendezvous with "he fugitives. He was captured without a show of resistance. although he was heavily armed. _

Subnets Plan for Unemployment Insurance and Old-Age Pensions to Legislators; Report Also Issued. PUTS INITIAL COST AT 100 MILLIONS Legislation, Already Prepared, Expected to Be Introduced This Afternoon; Quick Action Urged by Committee. By Times Special WASHINGTON, Jan. 17.—President Roosevelt this afternoon submitted to Congress a plan for unemployment compensation, old-age pensions, and the protection of mothers and children which he estimated would require $100,000,000 to initiate. The President said the plan safeguarded the national credit and took into careful consideration the capacity of industry to assume financial burdens involved. With this message the New Deal entered its second phase directed toward protecting men, women and children

DISARM SAAR, .FRANCEJNSISTS And Hitler Agrees to Demand in Principle; Transfer to Be March 1. (Copyright. 1935. by United Press) GENEVA, Jan. 17.—Germany today agreed ip principle to demilitarization of the Saar, as demanded by France and Great Britain. French fears of attack unless the Saar was included specifically in the Rhineland zone caused a dispute which delayed the League of Nations Council decision to award the territory to Germany. Asa result of the German agreement, the way was believed open for immediate award of the territory to the reich. As soon as Germany agreed in principle to the demilitarization France agreed that the Saar should be handed over formally to Germany on March 1, the date suggested. Germany withdrew its demand that the transfer be made by Feb. 15. The German reply to the French demands was submitted this morning. It is said that the Versailles Treaty settled the demilitarization problem. This implied that, inasmuch as the treaty demilitarized the entire Rhineland and the Saar is in the Rhineland, the Saar would remain demilitarized. If the French formally accept the German reply as satisfactory, it is expected that the council will make its declaration of award this afternoon.

CITY WORKER KILLED IN AUTO ACCIDENT Robert Madden Is Struck Crossing Street. Funeral services for Robert Madden, municipal garage employe, injured fatally in an automobile accident last night, will be held at 9 Saturday morning at the Holy Angels Roman Catholic Church.

Burial will be in Crown Hill. Mr. Madden, who was 77 and a resident of this city 50 years, was the fourth victim of automobile acci-

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dents in Marion County this year. He resided at 3317 Northwestern-av. Witnesses said Mr. Madden walked from behind a parked car at 30th-st and Northwestern-av into the path of an automobile driven by William F. Kellermeier, New Albany. Mr. Madden died two hours later at St. Vincent’s Hospital. Surviving are two daughters. Miss Gertrude Madden and Mrs. Evelyn Madden Fancher. and a son-in-law, Wesley W. Fancher. all of the Northwestern-av address. WALLACE SETS LIMIT FOR COTTON OUTPUT Quota of 10.500,000 Bales Virtually Same as Last Year’s. By United Pret* WASHINGTON, Jan. 17. Henry A. Wallace, Secretary of Agriculture, today set a Bankhead tax-free cotton production limit for 1935 of 10,500,000 bales of 500 pounds each. The allotment is virtually the same as that for the 1934 crop. EX-SOLDIER ENDS - LIFE Shoots Self Before Return to Marion Hospital. Elzie Shamans, 41, who was to have been returned to the mental ward of the United States Veterans’ Hospital, Marion, killed himself with a shotgun today at his home. 2205 N. Jefferson-st. Fomer Governor Dead By United Pre WOODSTOCK. Vt„ Jan. 17. Former Gov. Franklin 'Swift Billings died yesterday of heart disease. He was Governor from 1925 to 1927. He was 72.

HOME EDITION PRICE TWO CENTS Outside Marlon County, 3 Cent*

from some of the hazards and vicissitudes of life. The message proposed that the pensions and benefits be financed through taxes on pay rolls I and w’ages. Legislation has been prepared and was to be introduced this afternoon to put Mr. Roosevelt's program into effect. Simultaneously with the message were made public the recommendations of the President’s Committee on Economic Security. The committee urged immediate action to establish: 1. A uniform pay roll tax on employers to whom the act would be applicable. 2. Legislation creating machinery for Federal participation in administration of unemployment compensation. Three Principles Propounded The message propounded three general principles which should guide the nation in undertaking to provide economic security: 1. The system should be self- ; sustaining rather than a burden upon the proceeds of general taxaI tion. * 2. Except for old-agen insurance, actual management should be left to the states subject to federal supervision to assure proper standards. 3. All funds should be under federal control. “This plan for economic security is at once a measure of prevention and a method of alleviation,” Mr. Roosevelt said. “The establishment of sound means toward a greater future economic security for the American people is dictated by a prudent consideration of the hazards involved in our national life. Backs Plan Fully “No one can guarantee this country against the dangers of future depressions, but we can reduce these dangers. “We pay now for the dreadful consequences of economic insecurity —and dearly. This plan presents a more equitable and infinitely less expensive means of meeting these costs. We can not afford to neglect the plain duty before us. I strongly recommend action to attain the objectives sought in this report. The committee recomihended a 3 per cent pay roll tax to be effective Jan. 1, 1936, but said states could assess it against employers alone, or against employers and employes with or without contributions from the state. If general economic recovery in the first two years beginning next Jan. 1 is not satisfactory, the committee suggested a lower tax rate but said it should attain 3 per cent by 1938. ’ Employers who had employed four or more persons during any 13-week period of the taxab’e year would be liable to the assessment. The committee opposed exemptions for any specified industries, but recommended a separate nationally administered system of unemployment compensation for railroad and maritime workers. 90 Per Cent Credit Planned Employers who paid unemployment compensation contributions to state authorities under state law w'ould be given a credit against the Federal tax up to 90 per cent. On the basis of 3 per cent contributions, the committee believed the maximum benefit period could not exceed 16 weeks and should be reduced to 15. It said workers long employed without drawing compensation might be given an additional week for each six months of employment during which they had not received benefits. The committee recommended a waiting period of four weeks between loss of a job and first payment of compensation benefits. The Federal Government would receive and invest all social insurance funds. A social insurance board would be created within the Department of Labor to administer the Federal unemployment compensation act and part of the old age security system. Propose Life Annuities To supplement the latter, ti <* committee proposed that the Government sell to persons with annual incomes of $2,500 or less deferred life annuities on a cost basis. These would guarantee the purchaser a definite life-time income, (Turn to Page Ten)