Indianapolis Times, Volume 47, Number 282, Indianapolis, Marion County, 3 February 1936 — Page 1

INFLATIONISTS UNITE AGAINST NEW TAXATION Farm and Bonus Blocs Join in Program to Issue $5,249,000,000. AWAIT ROOSEVELT PLAN Administration Goes Ahead With Measures to Produce Revenue. By T vitrd Press WASHINGTON. Feb. 3.—lnflationists of both House and Senate rallied today to the fight for controlled currency expansion to stave off the need lor new taxes. Farm and bonus inflationary blocs united—tacitly, at least—on a, program looking toward issuance of some $5,249,000,000 in new currency. Os this amount, $2,249,000,000 would be used to finance bonus payments to veterans, and $3,000,000,000 for the Frazier-Lemke farm mortgage refinancing bill. The big inflationary drive is expected to await introduction of the Administration's new taxation program, expected ths week. New Tax Rill Studied Justice and Treasury Department officials have been working on tax measures which might total almost $1,000,000,000. The new farm bill, made necessary by invalidation of AAA. would account for $500,000,000 of the taxes; bonus amortization expense for a year would total about $230,000,000; and the remainder would come in an Administration effort, regarded as likely, to recover $200,000,000 in AAA processing taxes through a retroactive law. Strategy of the bonus inflation bloc headed by Rep. Wright Patman <D„ Tex.) called for a fight on the direct issue of currency expansion rather than an attempt to attach an inflationary rider to the $2,249,0CC,000 bonus appropriation. The Patman group decided to make no effort calculated to delay the appropriation bill. To do so would make, them vulnerable to the charge that their inflationary attempts were delaying bonus payments to veterans. “We Know Our Friends’" Indications were that the FrazierLemke bill would be the first inflationary issue to come up for a showdown fight. The petition for an immediate vote on the measure lacks only three of the 218 signatures needed. Leaders of both farm and bonus inflationary blocs disclaimed an outright agreement to combine their strength. It was inferred, however, that the two groups would fight side by side for currency inflation. Senator Elmer D. Thomas <D„ Okla.). leader of Senate inflationary forces, summed up the situation with the significant statement: “We know who our friends are and what our strength is.” Rep. Patman said his group has 'not yet joined forces with the Fra-zier-Lemke supporters. He inferred, however, that the currency expansionists would fight side by side with the farm mortgage advocates in the fight for issuance of new greenbacks. Administration leaders in both houses looked forward anxiously to President Roosevelt's tax program. No Hint of Recommendations No indication has come from the Administration as to what form the new tax recommendations may take. Mast probable sources of new revs • nue, however, are broadening of the income tax base, increased inheritance levies and a manufacturers’ sales tax. Senator Thomas was ready to lead a Senate drive for expansion in lieu of election-year taxes. In deciding not to press *h?ir drive for payment of the bonus in greenbacks, inflationists conceded Administration leaders a temporary victory. Secretary of the Treasury Henry Morgenlhau Jr. has made no tax suggestions, but has said the bonus and farm relief would be financed through "orthodox methods "—new taxes or Federal borrowing, or both. Morgenthau is expected to appear before the House Ways and Means Committee this week, at his own suggestion, to discuss taxation. His appearance is likely to coincide with announcement of the Administration tax program. MOTOR TRUCK FOOLS FORMER MULE DRIVER Fire Built I’nder Stalled Vehicle Lands Him in Hospital. By United Press DETROIT. Feb. 3.—Before Elbridge Harding became a truck driver, he was a mule driver. When a mule stalled, he'd build a fire under him. Yesterday. Harding's truck stalled and today he was in a hospital recovering from injuries received in the explosion. Times index Amusements 4 Births, Deaths / 14 Books 9 Bridge 7 Broun 9 Comics .15 Editorial 10 Financial .11 Merry-Go-Round 9 Mrs. Roosevelt 6 Pegler 9 Radio 5 Serial Story 7 Sports 12, 13 State Deaths 16 Want Ads 14 Woman's Pages 7

The Indianapolis Times FORECAST: Snow, sleet or rain tonight and tomorrow; lowest temperature tonight about 24; colder by tomorrow night.

VOLUME 47—NUMBER 282

STUDIES POWER PLAN

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Senator George W. Norris

THREE STRIKES THREATEN N. Y. Elevator Men and Building Service Employes Make Demands. By United Press NEW YORK. Feb. 3.—Threat of three strikes, which would affect hundreds of thousands of persons, hung over New York today. Most seriously considered was the claim of union leaders that elevator operators and other building service employes were prepared to walk out on “five minutes’ notice” unless their demands were met. This strike was set for today, but it, appeared to have been postponed temporarily pending further negotiations. It would paralyze partially 1200 buildings in mid-town Manhattan in a space bounded by 14th and 42d streets and Fifth and Eighth-avs. A strike has been ordered for tomorrow at 10 a. m. for 40.000 millinery workers and meantime a temporary truce held up the threatened strike of 105,000 garment workers. Fear of violence that might follow the proposed strike of the elevator and other building service employes led authorities to keep 2000 extra police in the district. One of the most heavily guarded buildings was the world’s tallest, the Empire State. The elevator union has charged that the Empire State employes were coerced into joining a company union. A1 Smith is president of Empire State. Shortly befove noon, Mayor F. 11. La Guardia announced at City Hall that he “understood” the strike call would not go out today and William D. Rawlins, of the Realty Advisory Board, an employer group, said “some progress has been made toward a peaceful solution.” Union officials would give no confirmation of the optimistic reports of the Mayor and Mr. Rawlins. OLSON BLAMED BY WIDOW OF LIBGETT Governor Accused of Having Permitted Murder. fiy United Pres* MINNEAPOLIS. Feb. 3.—The widow of Walter Liggett today sought to lay blame for his assassination at the door of Gov. Floyd B. Olson. “The murder of my husband could not have been committed without the permission of Gov. Olson.” she testified at the murder trial of Isadore Blumenfeld. A few moments earlier she had revealed that her husband received a threat against his life barely two hours before he was machinegunned to death last Dec. 9. She was under cross-examination. The statement regarding Olson—who long had been bitterly attacked by her and her husband in their vitriolic Midwest American—was given as she sought to establish a motive for the murder. JORDAN WIDOW ASKS LIFT ON INJUNCTION Action Pending on Probate of Local Capitalist’s Will. Attorneys for Mrs. Alice Boyer Jordan, widow of the late Arthur Jordan. Indianapolis and New York capitalist, today asked Federal Judge RoL°rt C. Baltzell that a temporary injunction granted in Superior Court here be lifted in the will contest case now pending in a New York court Last summer Herbert E. Wilson, Superior Jucge, granted the injunction to Mrs. O. B. Skiles and Mrs. John S. Kittle, daughters of Mr. Jordan, preventing toe widow from entering a final decree in probating the will. Attorneys for Mrs. Jordan are John J. Cortin. former attorney to Alfred E. Smith, and Nathaniel L. Goldstein, former deputy attorney general of New York State. MARKET LIST STEADIES AFTER EARLY REACTION Utilities Come Back From Lows; Westinghouse Recovers Loss. By United Press NEW YORK. Feb. 3.—Trading came the nearest to a standstill that has been witnessed on the Stock Exchange in months today. The list steadied and firmed after an early reaction. Even the utilities came back from their lows. Westinghouse Electric recovered an early loss and firmed to a gain of nearly a point. Chrysler recovered part of its decline of more than a point. Steel common registered a fractional loss. Rails were steady to firm. Silvers rallied.

NORRIS SCANS DAM PROPOSAL LINKED TO CITY Tennessee Project Seen as Source of Cheap Power for Midwest. INDIANAPOLIS IN ZONE Senator Reveals Thoughts as High Court Delays Action on TVA. ! By United Press WASHINGTON. Feb. 3.—While | the Supreme Court today delayed | decision on constitutionality of TVA, Senator George Norris (R., Neb.) announced he was “thinking over” a proposal to build a $200,000,000 | dam at the mouth of the Tennessee River as a flood control and hydro- ; electric project. Senator Norris, who has introduced a bill calling for a program modeled on TVA and extending over ; the entire Mississippi Valley, said i he believed a dam at the mouth of I the Tennessee would be “the best | way of controlling flood waters of j the Mississippi.” In addition, he pointed out, the dam could be used to supply cheap electric power to cities within a radius of hundreds of miles, including Indianapolis, Chicago, Louisville, Cincinnati, Columbus and perhaps even as tor north as Cleveland. Mr. Norris emphasized that no concrete action had been taken with regard to the proposal. “I’m just thinking it over,” he said. 7 WORKERS ARE KILLED IN FIRE 18 Others Injured as Blaze Sweeps Dormitory at Parker Dam. By United Press LAS VEGAS. Nev., Feb. 3.—Seven men were killed and 18 were injured today in a fire that swept a dormitory and another building at Parker Dam, according to word received by Six Companies, Inc., dam builders. The victims were trapped in the dormitory. One hundred twentyfive others escaped through windows and doors. The report said none of the bodies yet had been identified. Several of the injured were reported in critical condition. 2 HELD IN ALLEGED MURDER CONSPIRACY Police Say Man Hired Another in Plot to Kill Charles Jones. Detectives today are investigating an alleged murder conspiracy in which a man is said to have hired j another to kill his wife’s first husband. The two men alleged to have been ; involved were arrested Sunday. They j are Harvey Bush, 53. operator of a shoe shop at 1039 S. East-st, and I Frank McGuire, 51, of 523 N. Noble- : st. According to the story police said j McGuire told them, he hired Bush ; to kill Charles Jones, of the Craig I Hotel, who is employed in a bakery j on S. East-st. Jones is the first husband of Bush's wife, according to police. The men are held on vagrancy charges. CHRYSLER EMPLOYES WILL BE GIVEN BONUS $2,300,000 to Be Distributed to 59,000 Workers. By United Press NEW YORK. Feb. 3 —The Chrysler Corp. today announced approximately $2,300,000 would be distributed to employes as a bonus. The fund has been appropriated out of earnings and is to go to all employes who were on the pay rolls of the corporation during any part of the first quarter of 1935. A special distribution is to be made to employes in Canada. London and Antwerp. Approximately 59.000 employes are to participate. The minimum payment is to be S3O. VAN SWERINGEN MOVES TO REORGANIZE REALTY Petition Filed as I. C. C. Delays Holding Company Inquiry. By United Press CLEVELAND. Feb. 3—Permission to reorganize the Van Swerin- ! gen real estate holdings under Sec- ! tion 778 of the Bankruptcy Act j was sought today in Federal Court. The petition was filed with Judge Paul Jones by the law firm of Tolies. Hogsett & Ginn as the Interstate Commerce Commission at Washington postponed an investigation of the Mid-America Corp., Van Sweringen holding company. If the request of reorganiza- | tion is granted, the plan will be j drawn up and submitted to Judge Jones and creditors for approval. Fire Causes $250 Damage A fire caused by kindling piled j too close to a furnace caused damj age of $250 to the residence of I James H. Eaves, 1453 N. New JerI sey-st, early today. r

MONDAY, FEBRUARY 3. 1936

ADDRESSES MINERS

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NRA IS LAUDED BY GOV^EARLE ‘Greatest Law Ever Passed,’ Miners Told; Al Smith Is Criticised. By United Press WASHINGTON, Feb. 3.—The NRA was “the greatest law ever written on the statute books of the American republic.” Gov. George H. Earle of Pennsylvania told the United Mine Workers today in a speech attacking “special interests.” The Governor also criticized Alfred E. Smith’s threat to bolt the Democratic Party in a speech to the miners’ convention which will later hear William Green, A. F. of L. president, discuss the question of craft unions versus industrial unions. A move to oust Green as delegate of the United Miners was defeated this morning. “Unconstitutional or not,” Gov. Earle said, “the principle NRA established must and will be followed by America in the days to come. “That principle was nothing more than fair play established nationally. It placed every state on an equal footing. It was fair to labor, and it was fair to industries in the various states.” The Governor broadened his attack to include Al Smith, the Liberty League and sweat shops. “Technological unemployment,” he said, “is by far the greatest evil of our civilization. President Roosevelt saw that. He not only saw, he acted. The National Recovery Act was his answer to the challenge of the machine. “Shall we have fair play through regulation of business and industry? I say we must have it if our nation is to go forward. We have had enough of cruel and merciless exploitation of workers in mine and mill and factory.” HOFFMAN HINTS AT NEW MYSTERY MAN Important, Arrest Pending, His r riends Say. By United Press TRENTON, N. J., Feb. 3.—Gov. Harold G. Hoffman believes he has identified a vital mystery man of the Lindbergh kidnaping case and may order his arrest within 48 hours, friends of the Governor said today. The suspect is reported to be the “stoop-shouldered man” whom Col. Charles A. Lindbergh saw 7 at St. Raymond's Cemetery in New York while Dr. John F. (Jafsie) Condon waited with the $50,000 ransom. Col. Lindbergh said the man held a handkerchief to his face as he walked furtively past and then dropped it in a vacant lot adjoining the cemetery. A few minutes later a man whom “Jafsie” and Lindbergh identified as Hauptmann took the ransom. Laboratory analysis revealed that the user of the dropped handkerchief suffered from a sinus ailment similar to one that afflicted tubercular Isador Fisch. from whom Hauptmann insists he obtained the ransom money. OIL EMBARGO STUDIED BY LEAGUE EXPERTS Inquiry Pushed Despite Duce’s Warning of War in Europe. By United Press GENEVA, Feb. 3. —Experts of oil producing nations within the League began today a five-point investigation to determine the practicability of an oil embargo against Italy—a move which Mussolini has tried to persuade League members will lead to war in Europe. From this they hope to learn whether the sources from which Italy obtains oil can be closed and whether an embargo would affect enough tank steamships to have any material effect. YOUTH DIES IN CRASH Three Others Injured as Car Strikes Film Transport. By United Press ORLEANS. Ind., Feb. 3. Ben Hankinn. 19, was killed instantly yesterday when an automobile in which he was riding collided with a film transport. Calvin Gregory, driver of the automobile, suffered a skull fracture. William McPherson and Litha Lowe, other occupants of the car, suffered minor injuries.

12 MOTORISTS FACE ARREST FOR STICKERS Police Charge Drivers With Attempting to Fix Traffic Tags. CAMPAIGN HITS TRUCKS Salesman Hurt Seriously When His Automobile Strikes Transport. The city’s drive against the traffic menace gained headway today with issuance of 12 warrants for motorists who are alleged to have attempted to fix stickers. The stickers, according to Traffic Capt. Lewis Johnson, were of the old type and had been presented to motorists before the new drive started. However, none of these are to be “honored” and Capt. Johnson said police are to arrest the group in the next 48 hours. The stickers were mailed to police officers and torn up by Capt. Johnson. Under the system invoked Saturday night, triplicate stickers are to be issued. In this way, the motorist has his notice of violation in addition to copies held by the arresting officers and the traffic department. Truck Drivers Warned Indianapolis business firms issued orders to their truck drivers and salesmen not to double park or stop their vehicles in restricted zones. Capt. Johnson said that all courtesies heretofore extended companies whose truck drivers have been permitted minor infractions of the law to expedite deliveries hav been withdrawn. In addition to halting traffic injuries and deaths in Indianapolis and Marion County through strict enforcement of the sticker law, the police also seek to raise added revenue. Police officials said that other cities in the nation comparable in size to Indianapolis found that the accident toll was reduced measurably through enforcement of sticker ordinances. Marion R. Lindamood. 24-year-old salesman, is in critical condition at City Hospital today as the result of injuries received Saturday night in an automobile collision on W. Wash-ington-st near Richland-av. Mr. Lindamood’s coupe, witnesses said, sideswiped a transport truck on an icy stretch. His coupe then struck a utility pole, spilling out the three occupants. Passenger Escapes Injury Leland E. West, 23, of 5830 W. Washington-st, incurred head injuries, but Gerald Mills, 23, of 1200 Earl-av, escaped injury. They were passengers in the Lindamood coupe. Mr. Lindamood, who lives at 5717 W. Morris-st, received critical head and body injuries. The truck left before police arrived. Mrs. Edna Lemon. 4107 W. Mich-igan-st, her daughter, Margery, 6. and Mrs. Ella Lemon, 59, were cut and bruised yesterday afternoon when the auto in which they were riding collided with a car driven by Fred Stalhut, 40, of 3936 W. Mich-igan-st, who was arrested on charges of reckless driving and failure to have a driver’s license. Miss Annette Marcus, 16, of 643 E. 31st-st, is recovering in City Hospital today fiom injuries received last night while riding in an automobile driven by Martin Weinstein, 21, of 2932 Ruckle-st. The car struck one driven by John Rooves, 31, of 227 E. 19th-st while turning in the 900 block, N. Delaware-st. EXTEND NEUTRALITY ACT, IS SUGGESTION Pittman Proposes Present Bill Be Kept. By United Press WASHINGTON, Feb. 3.—A oneyear extension of the expiring neutrality act was suggested today by Chairman Key Pittman of the Senate Foreign Relations Committee. The act, expiring Feb. 29, made it mandatory for the President to embargo war materials in event of war between two foreign nations. The new measure sponsored by the Administration was designed to replace the temporal" act but it drew such strong attacks at secret hearings that delay was forecast in acting upon it. Senator Pittman said that extension of the temporary act would not jeopardize enactment of substitute legislation at this session as favored by Secretary of State Cordell Hull. The proposed permanent neutrality bill followed the precedent set by the present temporary law in making it mandatory upon the President to declare an embargo on the shipment of arms, ammunition and implements of war to belligerent nations immediately upon the outbreak of a war between two or more nations. The new bill would make it mandatory upon the President to extend this embargo to all other nations if and when those nations enter the I conflict as belligerents. LA FOLLETTES HAVE BOY Second Child Is Born to Wife of Senator From Wisconsin. By United Press WASHINGTON. Feb. 3.—Senator j Robert M. La Follette (Prog., Wis.), passed out cigars to his colleagues j today and proudly announced “It’s a boy.” The seven-pound son, the second born to Senator and Mrs. La Follette, arrived last night.

Entered as Second-Class Matter • at Postoftice, Indianapolis. Ind.

TEXTILE BLOC LOBBYING TO KEEP PROCESS TAXES, HOUSE COMMITTEE TOLD

Promises to Farmers Sure to Play Big Part in Next Campaign. BOTH SIDES ON RECORD Landon Latest Candidate to Dangle Bait of Aid for Agriculture. By United Press WASHINGTON, Feb. 3. One month’s experience with the 1936 presidential campaign demonstrated today that both major parties will promise farm voters liberal subsidies, rewards, bonuses or benefits to replace the late Agricultural Adjustment Administration checks. The latest pay-the-farmer bill generally is regarded as the Landon plan—an important factor in Gcv. Alf M. Landon’s front porch campaign for the Republican presidential nomination. The Governor has given cautious indorsement to the bill introduced in the House by Rep. Clifford R. Hope, a western Kansas Republican. The Landon plan attempts to compensate farmers for disadvantages suffered under the industrial protective tariff system. Republican candidates generally have approved the soil conservation theory which underlies the AAA substitute proposed by the Roosevelt Administration. The basic difference between the Landon and Roosevelt plans is that the Governor would not control crops to create a fictitious scarcity of agricultural commodities. The President still is committed to the scarcity principle. Knox Rejects Scarcity Theory Frank Knox of Chicago also has proposed soil conservation as a basic factor in farm relief. He rejects the scarcity theory, although the Knox plan would require withdrawal of 25,000,000 acres a year from normal agricultural production. These acres would be revitalized. The Landon plan as presented to the House does not stipulate where revenue would be raised nor what the program would cost. It would create a system of payments to producers of basic exportable agricultural commodities. This bill would authorize the Secretary of Agriculture to determine a marketing year annually for each commodity. He would estimate (Turn to Page Three)

BUILDING PERMITS SHOW HEAVY GAIN Volume Increases $406,201 Over Week in 1935. Increase of $406,201 in building permits for the week ending Feb. 1 over the same week in 1935 was reported today by Wiliam F. Hurd, Indianapolis building commissioner. Despite severe cold weather, the week showed a total of $423,873 in building permits, against $17,672 in the corresponding week of 1935. The permits last week totaled only 82, against 111 in the same week a year ago. The month of January, 1936, showed a gain of $664,830 in building permits for construction and rehabilitation of structures over the same month in 1935. Mr. Hurd pointed out that issuance of a $300,000 permit for construction of the new plant of Chevrolet Body Cos., 1110 W. Henry - st, was responsible for a portion of the large increase in construction activity in Indianapolis during the last month. MARINE BAND ‘RETREAT’ BLOWN BY SWANSON AID Assistant Secretary Roosevelt Clears Up Mystery of ‘Affront’ to Women. By United Press WASHINGTON, Feb. 3.—Assistant Secretary of the Navy Henry Latrobe Roosevelt told the House Naval Affairs Committee today that he ordered the now famous “retreat” of the United States Marine Band from the Women’s Patriotic Conference on National Defense. The action had led to bitter criticism by Republicans. The House committee ended an inquiry with a letter f-om Assistant Secretary Roosevelt. He took full responsibility and said his verbal order was “on account of the political color given to the conference.” COURT DENIES AID IN LINDBERGH LAW TEST Texan Faces Death for Kidnaping of Two Policemen. By United Press WASHINGTON. Feb. 3.—Arthur Gooch, Paris, Tex., today was denied Supreme Court intervention in his fight against a death penalty under the Lindbergh kidnaping law for the alleged abduction of two policemen who attempted to arrest him.

O. K. Seed Bill By United Press WASHINGTON, Feb. 4.—'The Senate today passed the seed loan bill providing for $60,000.000 to be loaned to farmers for production, harvesting of crops and feed for livestock. The amount loaned to each farmer would not exceed SIOOO. The bill, passed without a record vote, goes to the House. Senator William King (D„ Utah), said that while he did not oppose the bill in itself he wanted to know where the money was coming from. “We must have increased taxation to meet these enormous expenditures of the government. I thnik the committee on finance should begin consideration of means to increase the national revenue,” Senator King said. The bill provided for the governor of the Farm Credit Administration to make the loans.

WET WEATHER SEENFOR CITY Rain, Snow or Sleet Due Here Tonight, Possibly in Combination. A drizzle that fell this afternoon confirmed the Weather Bureau’s forecast that snow, sleet or rain may follow on the heels of the break in the city’s worst cold wave in a score of years. The storms are expected to be blown in by southwest winds after a rise in temperature to 30. the highest mercury recording in almost two weeks. The storms are expected to begin tonight and continue through tomorrow, J. H. Armington, Federal meteorologist, predicted. A switch in winds will bring colder weather tomorrow night, he said. Mr. Armington said that the storms may be a combination of snow, rain and sleet or may be any one of the three forms of precipitation. The winds may change late tomorrow afternoon, and the northwest winds would bring the temperatures down to 15 or 18, Mr. Armington said. The comparatively mild weather yesterday and today turned the snow-covered streets into sloppy lanes of melting snow. The city street cleaning department had been hampered by subzero temperatures but danger of a severe coal shortage was relieved by the upward trend of the mercury. Gov. McNutt announced today that he had received word from a Pennsylvania coal operator that the firm had 2,500,000 tons of anthracite available in case of a fuel shortage, which could be shipped on short notice. More Cold Forecast By United Press Temperatures above zero today heartened shivering Midwest families menaced by a coal shortage. ; The situation remained critical in lowa, where 15 counties are with- j out coal for families on relief. Enough coal for the “worst cases” was mined Saturday in overtime operations authorized by union officials to relieve suffering. Snow and colder weather were forecast for tomorrow throughout l the Midwest. The mercury dropped to 16 be- . low at Devils Lake, N. D„ today, but it was 8 above at Des Moines and 17 above at Chicago. EASTERN VICE RAIDS BRING NEW ARRESTS Alleged Leaders Captured, Authorities Claim. By United Press NEW YORK, Feb. 3.—Four syndicates controlling New York’s $12,000,000 a year vice rackets were regarded as completely smashed today j when 11 additional executives of the interlocking rings were arrested. The new arrests were announced by Rackets Prosecutor Thomas E. Dewey as the culmination of a week-end of raids which began Saturday night with the arrest of seven men and 70 women. Apparently on information elicited from the first prisoners, Mr. Dewey’s agents raided secret hiding places and brought in Jack Ellenstein, reputed successor to Nick Montana, white slave overlord now in Sing Sing, and Al Weiner, who allegedly succeeded his father, Louis Weiner, when the latter was sent to prison last summer. Both were held without bail on compulsory prostitution charges. The most powerful ring conducted a chain of scores of resorts and was headed, according to investigators, by Peter Balitzer, now held in Philadelphia for extradition on : vice charges. Two of his alleged lieutenants, Jo-Jo Weintraub and Lawrence Healy, are under arrest here.

FINAL HOME PRICE THREE CENTS

Charge Made as New Deal Substitute Farm Bill Is Reported Favorably. SENATE DEBATE NEARS Slight Changes Are Made in Measure Presented Representatives. I By United Press WASHINGTON, Feb. 3. Charges that a “well organ- ; ized” movement in the textile ! industry seeks to block recovj ery of outlawed AAA processing taxes were laid before a House subcommittee today at the same time the Administration’s new farm bill was favorably reported to the House, Rep. Henry Ellenbogen (D., Pa.) charged before a House labor subcommittee that the alleged movement in the textile industry was designed to block the proposed retroactive tax legislation to recover some I $200,000,000 in taxes which the Su- ; preme Court ordered returned to j processors. Senate Action Started The Administration has been seeking a method to recover the taxes and also will ask Congress for substitute farm taxes, totaling probably $500,000,000, to finance the new progra mfor soil conservation and production control. Senator Elmer Benson (F.-L., Minn.) introduced a bill in the ; Senate today to enablee consumers ; and farmers to recover from processors the amounts of processing | taxes which the Supreme Court—- | after invalidating AAA—ordered rei turned to the processors. The House bill, reported today by a 17-to-6 vote, differed slightly from the measure already reported to the eSenate for debate today or tomorrow. Republicans prepared to attack the new measuree as unconstitutional. Institute Denies Charge Meanwhile, Rep. Ellenbogen brought up the subject of processing taxes during testimony of textile men at the sub-committee hearing. “Every member in Congress is getting letters opposing these taxes,” he said, asserting that the Cotton Textile Industry, Inc., was one of the organizations behind it. Bearded G. H. Dorr, chairman of | the institute's board, denied that his organization was “organizing any lobby to fight the taxes” and said that the industry was merely apprehensive over possible precipij tate action by Congress. The House farm bill calls for use of soil conservation features in both permanent and temporary farm programs for production control. The co-operation of the states in forming individual “little AAA” units would be confined to the permanent. The measure provides for benefit payments to farmers who co-operate. Grants Are Provided Chairman Marvin Jones (D„ Texas) of the House Agriculture Committee, said he would introduce the bill formally this afternoon but was undecided when he would bring it to the floor. A provision which would prevent auditing of the disposition of the funds under the program except by the Secretary of Agriculture was stricken out. The section now says that the disposition is subject only to “review” by the Secretary of Agriculture. The House bill provided that the Secretary of Agriculture may make grants to thosec arrying out provisions of the act for soil conservation, rebuilding and use of land under the temporary program, which expires Dec. 31, 1937. It would set up a permanent program, which can be thrown into effect whenever machinery for carrying out its provisions is organized in the individual states. Asks Cotton Act Repeal By United Press WASHINGTON, Feb. 3.—President Roosevelt today recommended to Congress the prompt repeal of the Bankhead Cotton Act, the KerrSmith Tobacco Act and the Potato Act. Mr. Roosevelt’s recommndations were in a special message of one paragraph: “I recommend to the Congress the prompt repeal of the act of April 21, 1934, as amended, known as the Bankhead Cotton Act; of the act of June 28, 1934, as amended, known as the Kerr-Smith Tobacco Act; and of title two of the act of Aug. 24, 1935, known as the Potato Act of 1935. This recommendation is made because of the termination of the program of agricultural production adjustment under the act of May, 1933, as amended, known as the Agriculture Adjustment Act, to which the three acts mentioned were auxiliary.” The three laws apparently were invalidated by the recent Supreme Court decision outlawing AAA. although the court has not ruled directly on the constitutional questions involved in them. Scalding Water Fatal to Baby By United Press BLOOMINGTON. Ind., Feb. 3. Sarah Lou Tandy, 2, died in Bloomington Hospital from bums suffered when she fell against a kettle and was scalded.