Indianapolis Times, Indianapolis, Marion County, 9 March 1938 — Page 1

{ SCRIPPS = HOWARD §

PARIS CABINET WILL RESIGN.

PREMER SAYS|

British Dominions Refuse German Demands for Colonies.

FOREIGN AFFAIRS TODAY PARIS—Cabinet to resign. LONDON—Dominions balk Nazis. VIENNA—PIlebiscite hinted. MOSCOW-—Doctors testify. SHANGHAI—Japs hope for peace. TOKYO—Naval talks denied. BUCHAREST—Jews restricted.

BULLETIN

. PARIS, March 9 (U. P.).— / Prime Minister Camille Chau- * tempts informed the Socialists . tonight that the Cabinet would resign. An unofficial report was circulated that the Cabinet had resigned.

Dominions Refuse

To Give Up Colonies LONDON, March 9 (U. P.) —Certain British dominions have made clear that they are not prepared to agree to colonial concessions to Germany, it was learned today as Joachim von Ribbentrop, German

Foreign Minister, arrived here to * open. Anglo-German conversations. Authoritative quarters understand that in recent conversations between the British Government and the Dominions strong pressure was brought to bear, particularly by Australia and New Zealand, regarding Premier Neville Chamberlain's conversations with Herr Von Ribbentrop. , The attitude of the dominions -makes it almost impossible, reliable "quarters said, for the British Government to make any concessidns to Adolf Hitler's demands for unconditional return of former German colonies now under the mandate of various members of the British Commonwealth of Nations. Guarded by heavy detachments of police, who feared renewal of last night's wild Communist demonstrations, Herr Von Ribbentrop reached London this afternoon.

~The German diplomat arrived at:

Victoria Station at 9:40 a. m. (Indianapolis Time). It was surrounded by several hundred police and hundreds, of persons crowded the approaches to the station. No one was allowed ‘on the platform without authorization. The Minister’s car arrived at the station so speedily that most of the crowd failed to recognize him. There was no demonstration of any kind. Special measure to protect Herr Von Ribbentro op were taken aiter anti-Nazi scenes last night in Pic¢adilly Circus where Communists fought police and were dispersed only when mounted reinforcements In Commons today, Prime Minister Neville Chamberlain told a questioner that Sir Ronald Lindsay, - Ambassador to Washington, had been instructed to inform the United States that the British Government reserves itd rights to the islands of Canton and Enderbury in the Pacific. However, Mr. Chamberlain said, Britain intends to submit proposals to the United States which might end any controversy in a matter mutually satisfactory. Geoffrey Shakespeare, Parliamentary Undersecretary of the Ad.miralty, told a House of Commons questioner that the British Government is protesting the recent air attack on the British destroyers Blanche and Brilliant off the eastern Spanish coast. He said the Government takes serious view of the incident and believes Loyalist planes were 'responsible.

Austria May Vote

On Independence

VIENNA, March 9 (U. P)— Sources close to the Government -confirmed tonight that Chancellor Kurt Schuschnigg intends to hold a national plebiscite in which Austrians will be asked to answer yes - or no to the question, “Are you for an independent Austria?” The ballot will be printed with only “yes” on it. Those desiring to “vote “no” must cross out the word and write in “no.” The minimum age of eligible voters will be 24. This provision was expected to eliminate young ex-

tremists, especially extremist Nazis. ]

Rumania Curbs

Baptized Jews

BUCHAREST, March 9 (U. P.).— Jews viewed with anxiety-today the publication of an 8000-word decree covering the Rumanian citizenship law, whereby Jews who have been baptized during the last 10 years, nevertheless remain legally Jews.

Although the decree refers only.

to citizenship it is feared in many (Turn to Page Three)

TIMES FEATURES ON INSIDE PAGES

Books ,....... 9 Movies ....... 4 Broun ... Bite " Cireling City. . Comics . er * Curious World. 17 Editorials ....10 Fashions . ¢.:.. 7 Financial ....12 Flynn asaness 10 asses 10

Obituaries .... 8 Pegler ........10 Pyle

Mrs. Roosevelt 9 Scherrer ......

secre sscsae 9

FORECAST: Occasional rains tonight and tomorrow; warmer tonight with I Towest above freezing; colder tomorrow.

VOLUME .49—NUMBER 311

‘Carve Me With Care’ Request Of Cafe Guest

MILAN, March 9 (U. P.).—Amleto Rambelli, 31, a normally quiet bookkeeper, rested in hospital today, recovering from a brain storm

which he attributed to frustrated

love. -Rambelli went to a fashionable restaurant and ordered a table for seven. He said he was expecting six guests. “I want to show them a grand time,” he said. “First bring me all the vegetables in the place.” Mystified, but eager to please, waiters took him dishes of carrots, celery, lettuce and other vegetables. “Now bring me big owls of gelatine and mayonnaise dressing,” ordered Rambelli. These were brought, Rambelli carefully spread the vegetables about ofi the table cloth. Then he lifted the big bowls of gelatine and mayonnaise ‘and poured the contents over the vegetables. Finally, he stretched himself on the table, smeared mayonnaise on his face and said: “When my guests arrive, please carve me with care, as if I were a roast chicken.” By this time women in the restaurant were shrieking and the management was convinced that something was amiss, The waiters quieted the guests, assured Rambelli that he would be carved as desired, and telephoned police.

BURGLAR SLAIN BY POLICEMAN

Six Youths Held as Confessed Burglars; Another Is Wounded in Brawl.

Police today sought to identify a Negro burglar shot to death last night:as he and a companion fled after looting a filling station. He was the second burglar slain in the last four days. Meanwhile, officers were investigating four other burglaries, in which loot totaled $450; two &attempted purse snatchings and an

argument, which resulted in a youth “neck.

being “shot ini the

They alse were continuing: inves-]

tigation of the activities of six youths alleged to have confessed they burglarized nearly a score of taverns, gasoline stations and other establishments in Marion and nearby counties, The youths were held for the Grand Jury on burglary charges by Municipal Court Judge Charles Karabell. The filling station burglar was shot .iff” the back of the head ‘by Patrolman Robert Butler and died a few minutes after being taken to City Hospital. Patrolmen Butler and Osa Woodall were dispatched to the iilling station at 843 N. Capitol Ave. after an unidentified man reported seeing two men in the station.

Warned to Halt

As the policet radio car arrived, two Negro youths ran out the front door. Patrolman Butler said he shouted “stop” three times, then fired once when the burglars continued running. One fell and the other escaped. James West, 19, of 724 Roache St., was shot in the neck and wounded seriously at his home last night following a quarrel with Ray Shimwell, 22, of 2708 Ethel St., who is accused of the shooting. Witnesses told police that Shim-

a, well charged West had accused him

of a streetcar holdup. Two men fled after a vain attempt to snatch purses from Mrs. Dale Hadley, 5605 E. 20th St., and sor St., in the 200 block of N. New Jersey St. last night. Held the burglary probe are Eldon Suddeth, 18, of .1635 Cottage Ave.; Paul McKinney, 23, of 1749 Draper St.; Maurice Stephens, 18, of 1742 Laurel St.; Wesley Hoard, 22, of 1841 Applegate St.; Robert Patterson, 186, 163 Leonard St., and Walter Me of 627 Orange St. Henry Brandt, 66, was held by police today after they said he confessed stealing articles from hardware stores and selling them for a few cents. He is charged with petit larceny. ‘Miss Zola Beasley, 18 E. 37th St., reported the theft from her apdrtment last night of a fur coat valued at $200, a $70 typewriter and jewelry valued at $27.

, 20,

McNutt’s

By RAYMOND CLAPPER Times Special Writer WASHINGTON, March 9.—Some of the liberal members of the Roosevelt Administration are beginning, after a period of amused indifference, to take seriously the Presidential candidacy. of Paul V. McNutt. “His recent monster reception here was treated as a most amusing and amateurish performance that would make him look ridiculous. Loyal New Dealers, with only a few conspicuous exceptions, boycotted the party and waited confi-

7 | dently for the brash young fellow

to hang himself. Those who scoffed have begun to pray—pray that High Commissioner McNutt won’t make it. The best evidence of their alarm is the story now going the rounds of the New Deal that one of Mr. McNutts Presidential backers is the big util-

COMPANY CARS | HELD OPEN T0

City Removes Exemptions to $2 Penalty for Parking Overtime.

29 DRIVERS PAY $293

Woman’s License Revoked After Conviction on Drunken Driving Charge.

Corporations, previously exempted from the $2 overtime penalty for illegally parked vehicles, will ‘ke required to pay them in the future on the same basis as a private motorist, city officials said today. City Clerk Daniel J. O'Neill Jr. said the plan-would affect approxi-

mately 1500 cars annually. Meanwhile, three persons, including two school children, were recovering from traffic injuries received overnight: Thirty-seven motorists were fined $293. Under the old parking sticker system, affidavits were not written on unpaid stickers -where State House records showed the owner to be ‘a corporation, Mr. O'Neill said. Reason for the exemption was that ownership of the car could be determined only by a check of the corporations,

Warrants to Be Served

At a conference of City officials in January, the City Prosecutors agreed to write affidavits on all types of offenders. Albert Schlersker, Chief Morrissey’s secretary who is in charge of setting up the new system under an ordinance signed by Mayor Boet-. cher today, said the warrants issued to corporations will be served. Mr. O'Neill said that 14,000 stickers were unpaid last-year instead of 20,000 as previously reported. Nine thousand were issued to out-of-town cars which in most cases never can be collected, he said. He said City Prosecutors have agreed “to begin writing warrants on last year’s unpaid stickers in ‘an effort to salvage some.” Chief Morrissey said the traffic offieers. being instructed in the | a method of Sunt stickers

parked cars will | n ‘again in a few days. The ordinance signed by Mayor Boetcher today: places responsibility for collection. of sticker fines upon Chief Morrissey and sets up a|f double check system ‘between the Police Department and the City Clerk’s office. Among those arrested overnight were two truck drivers for failure to have the new directional signals required by State law.” Ten drivers were accused of speeding and a woman was charged with driving while drunk. 2

37 Drivers Pay $293

Forty-two motorists appeared in Municipal Court. Five were granted continuances, 37 were convicted and 29 paid fines and costs totaling $293. An additional $146 in fines and costs was suspended. Seventeen, charged with failing to stop at preferential streets or roads, paid fines and costs totaling $106, with an additional $95 sus-' pended. Six, charged with running red lights, paid $53, with $21. sus-. pended. Three were convieted of speeding, paying $60. Heaviest fine, $20 and costs, was imposed on Charles. Bedle, 3069 N. Pennsylvania St., accused by State Highway patrolmen of driving 80 miles an hour on State. Road 40 through Ben Davis and ‘Bridgeport. Mr. Bedle denied driving do, sayng he may have been going between 65 and 70. The p: trolmen said they began the chase at High School I Road and, driving faster than 80 miles an hour, were unable to stop Mr. Bedle until after -passing ‘the Marion-Hendricks County line. Convicted of intoxication and failing to stop after an accident,

31 | Mrs. Opal Smelcer, 2501 Park Ave.

was assessed fines and costs totaling $46 and was given a suspended sentence of 30 days in jail by Judge Charles Karabell. : Her driving license was suspended for | six months. She was charged with failing to stop after her aute siruck a car patie in the 2400 block of Central ve. 3 Joan Maley, 7, of 1419 N. Wallace

St., was knocked down and bruised (Turn to Page Three) :

TRAFFIC FINES

WEDNESDAY, MARCH 9 1958

Could This Possi ibly Be t Greta Garbo?

Reports of flourishing romance

Stokowski and Greta Garbo has all Ifaly tensely - hoping for a glimpse of one or both of the famed

couple. That’s why there was a ing

GIRL PARALYTIC AWAITING CRISIS

Kept in Respirator After Operation to Aid Useless Arms and Legs. 1

KANSAS CITY, Mo., March 9 (U, P.) —Sylva Eugenia Davis was conscious and smiling today affer a dangerous operation in which she risked her life with the hope that it would enable her to walk and use her arms for the first time since she was born 20 years ago. The postoperative crisis came today. By night, her surgeon expected to know whether she would live or die, Whether She wie eh be Sole to. 1 rom the w c Bele Th Bul, “Write reads os. Ee Liou

rare spinal operation and laid bare the fragile nerves: leading from her brain to the voluntary muscles of ‘her arms and legs, said that Miss Davis was slightly improved and that her early return to conscious-

ness was “a favorable indication of |

successful recovery.” Injured at Birth Ca The girl's blight, caused by an

injury at birth, had left her with |

limbs that dangled uselessly, but. which developed in size and muscle

as: she grew and gave her a ‘body that appeared normal. The surgeon, ‘who insisted on anonymity, believed that the chances of giving at least partial. locomotion to her limbs were worth ‘the ‘risk involved. - The risk was taken yesterday at St. Luke’s Hospital. Today, outside the door of her room, Miss Davis’ father and mother stood vigil. They | had been thére all night. The drone of the electrical respirator, wherein the girl lay, carried past the closed door and the steady. ominous beat reassured the parents 20 times a minute that the breath and life of their’ daughter was being maintained. “She called for me.when she regained consciousness. and smiled and looked up at the dector and said ‘hello,’ ” the mother, Mrs. Carlos! C. Davis said. . “She- told me that she was rather weak, but I. think ‘she is getting along fine.”

RAINS AND COLDER FORECAST FOR CITY

TEMPERATURES

32 10am... 3H 32 11a m... 35 33 12 (Noon) . 36 3 1pm... 37

The Weather Bureau today pre dicted “colder weather tomorrow” with occasional rains. The forecast said the mercury would decline after a rise tonight. A mixture of sleet, snow and rain fell in Indianapolis for a half hour

. | early. today.

be. Fenown for day: 5 Her hysicion; who performed the |

between Leopold

oF Shotosraphass | and Mit Garbo State "to ‘Rest On Own Offer In Beer Debate

Officials here intend to make no|

additional compromise offers to avert the impending Indiapa-Mich-igan “beer embargo war,” Hugh Barnhart, Indiana Excise director, announced today. Pointing out this State now has a peace proposal pending before the Michigan ‘Liquor Control Commission, Mr. Barnhart said “Indiana can go no further.” Meanwhile, it was reported: at Lansing, Mich, that Governor Frank Murphy would make the final decision on Indiana’s offer. This offer authorizes the 14 Indiana importers to waive handling charges on beef brought here from Michigan. “Jf it is ‘net accepted by

1, the embargo ordered by. |$

830.60 iia cet M fon-,

Monday, agreed’ to the compromise plan which they said would place .Michigan beer on an equal competitive basis with Indiana prod-

ucts. 2 Word of their action and the intention of -the Indiana Alcoholic Beverages. Commission to formally adopt this resolution was sent to the Michigan Commission. The Michigan Commission, according to reports, failed to agree, as Michigan wholesale beer distributors denounced ‘the Indiana boycott ‘and Michigan brewers declared the compromise would not protect them against discrimination in Indiana.

Beer War Decision Rests With Murphy

LANSING, Mich, March 8 (U. BP.) —Governor Murphy will make the State Liquor Control Commission’s final decision to end or prolong the Michigan-Indiana beer war, it was learned today. Although no official comment

came from the Commission or the Covernor’s office, that Commissioners had promised to submit to Edward G. Kemp, the Governor's: legal -advisor, the proposal to hold up the Maich 14 ban. - Chairman Edward W. McFarland ‘announced last night after hearing arguments of Michigan brewers and distributors “that he “couldn’t say” when a decision would. be - forth‘coming. The apparent indecision caused distributors wro handle ' Indians beer to express fear that the Commission might wait until the ban becomes effective, thereby ' practically destroying their efforts for an armistice. -

“We'll have.to weigh the matter | ‘| carefully,” Mr. McFarland said, “and

above all we want to be reassured that Indiana:is acting in good faith in promising to waive present exorbitams fees on Michigan beer.” . Commissioners agreed that PR Th of the fees would, in effect, remove the actual discrimi-

nation against Michigan beer.

Indians Sporto: at a meeting

it was learned

‘San “ Diego.

tered - as Second-Class Matter a Postoltes, indiaanpoils. Ind.

Times-Acme Photo.

in action when a ‘mysterious guest of a prominent " hotel here came out and tried to run the gantlet with one arm shielding her face. Marriege of Stokowski

is reportedly set for mid-March.

|BUND TO MEET

INGITY MONDAY

Scheduled Host to Conclave Refuses to Identify Heads Here.

The German-American Bund— Nazi. Amerika Deutschen Volksbundes—will meet at an East Side residence at 8:30 p. m. Monday, letters and announcements circulated here stated today. An occupant of the home in which the meeting is scheduled to take place declined to comment.

“We have no statement to make,” he said. “We will not confirm or deny the meeting.” fe refused to identify Bund leaders here. snd ‘said any information ave to come from ‘William ago, the organization's

Kunze, : national sd director.

District American Legion and Veterans ‘of Foreign Wars officials ‘previously had said they would eppose organization of the bund here.

Boycott Charged

The bund’s announcement said: “Due to pressure exerted by certain unfriendly groups, it has been impossible to secure a public meeting hall for this occasion. We are therefore anxious to have our house filled with German-Americans who have enough backbone to assert their constitutional rights of peace-

able assembly in the face of op-

position: by these boycott racketeers.” The cards bore the closing state-

ment:

“Yours for Fy! Cleanup—a White Man’s U. S. ~The cards 2 Mr. Kunze would speak. : The Athenaeu:n management recently cancelled a reservation for a meeting there. Leaders of longestablished German-American so.cieties here have voiced opposition to the bund.

LEGISLATURE CALLS ~ MOONEY AND WARDEN

SACRAMENTO, Ca., March 9 (U. P.).—Thomas J. Mooney, the longimprisoned labor leader, will «be questioned by the California Assembly Thursday morning in connection with a resolution to effect his release. The Assembly ordered that Mooney and Warden Court Smith of San Quentin Prison appear before it preliminary to a vote on the resolution, offered by Rep. Paul Ritchie of The resolution asks Gav, Frank F. Merriam to pardon Mooney. The motion to summon

‘Mooney was passed, 36 to 29, ‘without debate.

v - -

U. 8S. CRISIS IS SEEN

MIAMI BEACH, Fla., March 9 (U. P)—America today is at its “third great crisis” and must choose between democracy .and dictatorship, Frank E, Gannett, Rochester, N. Y,, newspaper publisher, asserted in an address to the. Committee

of One Hundred here.

Scoffers Changing Tune, Clapper Reports

his properties before they are crushed between the jaws of public competition. The report is that Mr. Willkie indicated to some of Commissioner McNutts friends that he was for their man, and that he had given some ‘financial aid. Mr. Willkie denies this @emphatically. In reply to my specific inquiry, Mr. Willkie said: “I have never made a contribution of one cent to Paul McNutt’s presidential campaign and do not expect doing], so. I do not expect to promote’ it nor have anything to do with it. Paul McNutt and I were classmates in college. I know him and like him. Any other report to you is entirely false.” Both are Indiana men and they were graduated together from Indiana University in 1913. When Mr. McNutt was Indiana Governor, he debated the Government's power policy with Mr, Willkie at -In-

ities man, Wendell Willkie, who at | dia

the moment is in a retreat. before

napolis. SB oSar des of Mr. Willkie's. _po-| every

candidate on the Democratic side who naturally will appeal to those businessmen who see little prospect of a Republican victory in 1940 and who in that case will prefer to pitch in and try to get a “safe and sane” candidate nominated by the Democratic In fact, what makes the McNutt’s candidacy so strong in its potentialities is the breadth of its appeal. The New Dealers can’t say he wasn’t loyal. As Indiana Governor he put through a state NRA and in every other way went down the line on New: Deal ® policies. Yet: businessmen will be interested in his aggressive reorganization of the Indiana State Government in which he wiped out or consolidated many bureaus although he did it by ob-

taining a reorganization act for] than the one which Mr.|

broader Roosevelt is having so much trouble Congress. Mr. McNutt’s

with in

miss all state employees and to raise or lower their salaries. "Businessmen also will be interested in his handling of labor disorders in which he called out the National Guard and put troubled areas under martial law. Yet one

is the labor favorite for the U. S. Senate this year, Alex Gorton. Commissioner McNutt won the interest of ‘men with a speech to their convention several years ago when he criticized states and musivipalities hat defaulted

law gave the Governor Thee an endl administrative board

‘| one of the Indiana McNutt boosters.

Soon atier that for | Nutt is expected to return here from

Club, the interchurch forum, citi- |"

zens of Greek. descent and of almost every other descent. Some here say Mr. McNutt is out in front too early. It also is possible that rival aspirants will wake up some fine morning and discover that Commissioner McNutt has been there first and left them nothing but an empty barrel to

McNutt to Return Here on March 17 High Commissioner Paul V. Mecon March 17 and pend.

‘Washington \ his three or four days in Indiana before

departing for his Philippine Island

post, Frank McHale, Indiana Demo- | 727,509.

crat national committeeman, said

toga, former Governor was enter-| joker

tained here before he and other InDemocra

freight rate increase authorized by

§ » i a x ; gy y i A Pe is Sau > we oa y 4% . iP ' + : } ¥ + 3 * EES c

PRIC

E THREE CENTS

LOSELY-

&’

———

Compromise Rail Rate |

Increase Is Granted

WASHINGTON, March 9 (U. P.). —The 270 million dollar annual

the Interstate Commerce Commis-

sion opened the way today for a White House inquiry into problems of the nation’s railroads. Less than an hour after the ICC anounced its decision, President Roosevelt said that his projected meeting with leaders of the indus- | try, railway labor, Congressional experts , and Government officials would be held early next week. Mr. Roosevelt and the experts will seek to chart, if possible, a way for the railroads to solve the economic problems which still exist despite’ the ICC’s decision granting them a 10 per cent horizontal freight rate boost with exemptions. ‘Phe railroads had asked a 15 per cent increase. Some experts said the exemptions would reduce the increase to the equivalent of a 5 per cent horizontal raise. The 10 per cent increase applied to all commodities, except agricultural products other than tropical fruits, animals and products not including horses and mules, lumper, shingles and lath, cottonseed oil and vegetable oils other than linseed oil. On these commodities, a 5 per cent increase was authorized. : The ICC said it would permit an increase of 10 cents per ton on anthracite coal, but no increase was permitted on bituminous coal, coke, lignite, and iron ore which commodities, the ICC said, “justly and reasonably should bear no further increases. than those already impos sed. ws: The order provided that the $47,500,000 rate increase granted on certain commodities last’ year should be considered as part of the 10 per cent increase authorized yesterday.

Farmers Affected Doubly, Schenck Says

Hassil Schenck, Indiana Farm Bureau, Inc. president, said today that Interstate Commerce Commission authorization of railroad freight rate increases “raises a national problem.” He said he planned to. confer with American Farm Bureau officers. “The increases will affect the farmer as a producer and consumer,” he said. “They will increase commodity prices.” At the same time, C. H. Hibbard, Kingan & Co. assistant traffic manager, declared that “burdens on the packing industry always fall back on the farmer.” H, A. Hollopeter, Indiana State Chamber of Commerce traffic manager, said he hoped the increase would solve the railroads’ problems although the “Chamber is opposed to universal rate increases.” He expressed satisfaction that the increase did not include bituminous coal shipments. M. D. Nickel, Indiana Regulated Highway Carriers, Inc. executive secretary, predicted “not much freight will be diverted to trucks by the railroad rate increase.” He said motor carriers are seeking Commission authorization ion of rate increases!

Bridges Charges TVA Dictatorship

(Editorial, Page 10)

WASHINGTON, March 9 (U. P). —Senator. Bridges (R. N. H.) today attributed the Tennessee Valley Authority conflict to dictatorial and authoritarian methods of TVA Director David Lilienthal, whom he’ compared to Adolf Hitler. Senator Bridges, who asserted that an effort was being made to avoid a congressional inquiry into

Teapot Dome scandal,” replied to the speech of Senator Norris (Ind. Neb.), blaming TVA Chairman A. E. Morgan's jealousy - for the inter- | agency turmoil. The new broadside attack was a prelude to a ite House conference on Friday when President ‘Roosevelt will ask all three TVA members for “the facts” behind the charges and counter-charges around the agency. Senator Bridges demanded a con- | gressional investigation rather than ‘a, Federal Trade Commission inquiry as. proposed by Senator Norris. “They call Governments of. many, of Italy, of*Hungary, ° thoritarian states’ because all pot thority is centered in the dictator,” he said. “In the heart of America a new star has risen in the consellation of authoritarian states—the state of Tennessee. And David Lilienthal is its Der Fuehrer!” Senator Bridges c! that dis-

the General Accounting Office totaled $15,542,459 and that only $4,814,950 has been accounted for, leaving unexplained and not recovered to the Treasury a total of $10,-

~ He charged that TVA contracts business contained a “hidden for a secret rebate

tic leaders left for| Mr Senator Minton's |

| bill.

TVA because of fear of “another |

crepancies in TVA accounts with |day.

5

TAX IS BEATE RAIL RATES

NATIONAL AFFAIRS TODAY

FAMILY FIRMS tax deleted by House, RAILROADS’ problems probed. : : _ “TVA SCANDAL?” charged by Senator Bridges. = NAVAL BILL minority report issued. WILLKIE denies Supporting McNutt,

Ronsevelt Veto eto of Tax Bill Hinted

WASHINGTON, March 9 (U. P). —Disregarding threats of a presie dential veto, the House today tens tatively eliminated the 20 per cent surtax on closely held corporations from the Administration's tax Tevision . bill,

The vote, in committee of the whole, was 180 .to 124. Reps. Ludlow, Larrabee, Jenckes, Griswold, and Pettengill (D. Ind.) and Halleck (R. Ind.) voted against the family firms tax. Reps. Greenwood and Crowe (D. Ind.) voted for it. Rep. Farley (D. Ind) was absent. AN A coalition of Democrats and Ree publicans, led by Rep. John W. Mc Cormack (D. Mass.) successfully ate tacked the so-called “third basket” levy—controversial center to the Administration’s bill to relieve the tax burden on industry. Rep. McCormack introduced the amendment to strike the surtax. The House, however, presumably will vote a second time on the amendment when the reading of the hill is completed. The vote against the tax on closely held corporations came in the face of a warning by Chairman Robert L. Doughton (D. N: C.) of the Ways and Means Committee that - Presi. dent Roosevelt probably would veto the tax bill if the “third basket” levy is eliminated.

Two Votes Taken

It was estimated that deletion of the “third basket” surtax would cut about 45 million dollars from the revenue the Ways and M and Meaps Com-= mittee expec tak meas“ure it : The teller v tentatively. #liminating the surtax came after the House had voted 165 to 122 in. a standing vote to eliminate. the cone troversial levy. The action followed personal ape

peals by Rep. Doughton and Rep.

Fred M. Vinson (D. Ky.) tax subcommittee chairman, that the tax be upheld. Leaders were undetermined immediately after the vote whether to demand a roll call later in an éffort to put the 1-B tax back into the The . decision depen on whether they believe enough of the nonvoting members : would. support the Administration on a roll call.

Seeks Court Tes Test

| On Salary Tax

Times Special

WASHINGTON, March 9-5An of fort to force a Supreme Court test on Congress’ right to tax. income from Government bonds and { salaries paid by state and local ernments will. be made by Senator La Follette (Prog. Wis.) when the tax bill reaches the Senate Finance Committee from the House, perhaps this week. Heartened by the Court's recent decisions. lifting some of the border= line exemptions from such taxation,

‘Senator La Follette believes the

Justices would now be willing -to .revoke entirely the protection they have hitherto given income from

/| these fields.

He thinks ‘the Court would ‘hold that the 16th Amendment to the Constitution “means what it says. That is, that the Federal Government can tax income “from whatever. sburces derived.” . He hopes to get the Senate Fie nance Committee to agree to an amendment providing for such taxation, and in this effort he: will bes backed by Senator Clark (D. Mo.) and others. Rep. Jerry Voorhis (D. Cal): tried to get a similar amendment before the House yesterday but i was Tuled out of order.

Minton and VanNuys : Oppose Publicity Clause .-

Times Special WASHINGTON, March 0.—Sonator Minton (D. Ind.) will oppose President Roosevelt and vote to repeal the publicity clause in the tax bill, he said today. . The House yesterday raised ‘the level above which. all corporations must report salaries, bonuses. and commissions. from $15,000 to §15.000 annually. President - Roosevelt has urged that the’ publicity feature. be retained. ; “I' promised when elected that, 1 would be, for ‘repealing such: Jb a ~ | ticity - provisions in the tax la Te Senator Minton explained. “And- 1 intend to keep that promise. als though I have come to: the conclusion’ that’ the President is. right about the beneficial effects: of such publicity.” - ; Senator VanNuys ®. Ind) also Will yale for Tepe), he declared 10

“Id with the idea that: any particular benefit is derived from such publicity,” he said." “I have watched it for years and will vote against it every chance Y get.” !

SCOLDED TRUANT FOUND ACCOMAC, Va.. March 9 U. oot Suthorities ‘today