Indianapolis Times, Indianapolis, Marion County, 9 March 1939 — Page 3
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Pari
Ss Paper Reports
Hitler Plan
To Seize Holland and Switzerland;
Crisis a Postponed, Journal des Debats Reveals.
PARIS, March 9 (U. P)—Thefs
“conservative newspaper Journal des 'Debats published ‘today what it said
was an outline of Fuehrer Hitler's 1939 plan for invading Holland and
Switzerland to force the democra-
‘cies to capitulate to the colonial demands of Germany and Italy. The plan would provide a doublethreat to the security of Great ‘Britain and France, the newspaper said. Asserting that it had learned of the plan from “an unimpeachable ssource,” the newspaper said its exyo had originally been scheduled for the middle of March but that various developments in the international situation had forced a ‘postponement to an unknown date.
BERLIN, March 9 (U. P.). —Responsible political quarters described as “ridiculous and laughable” today a report in the Paris Journal des Debats of an alleged German intention to invade the Netherlands and Switzerland.
“Various and increasing difficul-
| ties for the western powers will be
created in all directions,” the newsepaper said.-“The Hainan Island oc-
| lcupation (by Japan) was designed | to disturb the democratic powers in
regard to the Far East as a preliminary movement. “The Italian campaign against Fance is another move. Italy must strengthen her garrisons in Libya and try to exercise pressure on the
" $Somalian frontiers.”
$Injured
Italy Might Act First The newspaper sald that the plan included: “Agitation in Palestine and Syria “will be stimulated into revolution. The present difficulties at the Palestine Conference in London must be watched. They. are highly instrucKive, “The Italian mobilization follows in the plan which Hitler drew up some time ago and which views he decisive date for action as coming some time after the end of the Spanish civil war. Italy would then officially formulate her African and a osean demands, which the uehrer would support in a great N pouch setting forth his own demands in ultimatum form. “A lightning blow which, in HitAler’s mind, would force the Western ‘powers to capitulate would consist of a sudden attack against Holland and eventually against Switzerland. The aim would be to seize territorial “securities” Asserting as a pretext that it was only provisional occupa-s tion, Germany would enumerate her demands and attempt to put France sand Britain in a position where they would be obliged to grant satisfaction. Then, if negotiations were opened, new demands would be presented.” ¢
Japan to Insist on
Pacific Naval Parity
¢ TOKYO, March 9 (U. P.).—Japan aims to secure command of its own side of the Pacific in its new policy of building a fleet as large as that wt its strongest possible competitor,
a Navy spokesman said today.
As he made his statement, the House of Representatives approved a 8 059,100,000 - special China budget. + This budget, which is in addition to all ordinary budgets, is to cover costs of the China War. The Navy spokesman said Japan aimed to command the Western Pacific in order to facilitate smooth execution of its national policy. That policy, he said, made it necesry to prepare to meet the greatest al strength any single power might send to the Far East. ™
SHANGHAI, March 9 (U. P.).— ;Japanese airplanes, raiding Ichang
2
Speeding ....
Reckless driving ...,
ounty Deaths
(To Date)
City Deaths (To Date)
11 3
Running preferential streets
Running red Drunken driving ....
thers
Accidents ...
venere M
LY PW — —
le
MEETINGS TODAY Indianapolis Real Estate Board, luncheon, Hotel Washington, noon Hoosier State Sportsmen’s Show. Manufacturers building, state Fair Grounds, afternoon and night Advertising Club ofr Indianapolis, luncheon, Columbia Club, Florist Telegraph Delivery Association, Nmeeting, Claypool Hotel, all
Sigma Chi, luncheon, Board of Trade, noon.
American Business Club, luncheon, Colupibia ah, 00 ; Pa Credit Grou luncheon, omens Grille "the William H. Block Co.
Be hacia. luncheon, Board of Trade, noon. a Nu, luncheon, Hotel Washington,
~ Caravan Club, luncheon, M Murat Temple,
»
noo! A Radio Engineers’ Guild, meeting, Hotel
A
Antlers. 8 p. Oil Club, luncheon, Hote) Severin, noon. Construction Leagu of Indianapolis, Juncheon, Architects. Vand Builders Build-
ing, gr Tngianapelis Fra Club, meeting, 110
nt Bets Theta 8h I luncheon, Canary Cottage, noon
MEETINGS TOMORROW .
Hoosier Sportsmen’s Show, Manufactur‘pat State Fair Grounds, afterdiana + Kssoctation
of Creal ‘Men, Ba . Clay ool Hotel, 6 p hata regional donference, Columbia Club,
% change " iu, *lincheon, Hotel WashL Selesmen’ s Club, luncheon, Hotel Washn| "Bptilsl Club, luncheon, Columbia Club,
serve Officers’ Association, luncheon, sBosrd of Trade, a
oon Delta. “luncheon, Columbia Club,
“BIRTHS Girls
Ernest, Abner Bigbee, at 1222 Cornel. Hardesty, Mary Buckner, at 444 N. West. ili E Rouse, at 2345 Hiside. Siilan Lillian Mo le, Olive Shue, Ci arles, Bernice opper, bert, Merle Waggoner, at ymond, Martha
BRAZIL AID OF
Americans in North China Say Japan Is Trying to Drive Them Out.
WASHINGTON, March 9 (U. P.). —The United States and Brazil today concluded a five-point agreement involving direct and indirect extension "of approximately 120 miliion dollars in financial aid to the South American republic. Meanwhile George Rublee, former head of the Intergovernmental Committee on political Refugees, reported to President Roosevelt that Germany “is prepared to take definite measures to transform the present chaotic conditions of exodus
from Germany into conditions of orderly emigration.”
received a complaint today that the Japanese are seeking to drive American enterprise out of North China market. They requested the U. S. Government to take further steps to protect American rights and interests. The agreement with Brazil, concluded by the State Department and President Roosevelt in conversations with Dr. Oswaldo Aranha, Brazilian Foreign Minister, represents mobilization of United States commercial and credit resources to combat economic inroads of totalitarian governments in Brazil,
Provisions Listed -
Provisions of the agresment: 1. The Brazilian Government will free its exchange market for commercial transactions and facilitate transfer of equitable returns upon investments made in Brazil by United States citizens. 2. The Export-Import Bank will extend acceptance credits to meet amounts due to American exporters for imports from the United States.
3. The Export-Import Bank has arranged an extension of credits to facilitate Brazilian purchases of American products, to improve Brazil's transportation facilities and development of other domestic undertakings. 4. President Roosevelt has stated
that he will recommend to Congress
authorization to .place at the Brazilian Government's disposal a gold reserve up to 50 million dollars to assist in the organization and operation of a Central Reserve Bank of Brazil. The gold would be repaid from Brazil's future precduction of gold. 5. The Brazilian Government gives notice of intention to resume on July 1 interest payments and amortization on its dollar debt, in accordance with an agreement made with the Foreign Bondholders Protective Council.
three times, set fire to oné-third of the city and caused casualties estimated at 3000, Chinese news dispatches asserted today. Ichang is on the upper Yangtze between Hankow and Chungking. Dispatches asserted that 40 Japanese planes in their raids yester= day dropped more than 100 bombs on the city. These raids followed a raid on Ninghsia, in Shansi Province in the northwest, in which according to Chinese dispatches 300 civilians were killed or wounded by 103 bombs which struck in the down town district. Yungchang, Yungteng, Kuland, Lanchow and Sainfu also were
bombed.
] IN INDIANAPOLIS
ere Is the Traffic Record Gerad 8 cen Ci
Mitre ‘Smith, at St. Helen Fitzwater, at St. at St.
VinVine Vin-
nold, Dorothy Doty, at Methodist. File. Juanita Syphers, at Methodist, Edward, Helen Walz, at Colem: Leroy, Maggie uarles, at 2424 Shriver. Kenneth, Fern Wilson, at 1438 W.’ Ohio.
DEATHS
Christopher G. Bock, 53, at St. Vincent's, chronic myocarditis. Charles S. McGinnis, Hospital, carcinoma. ie Lenora Houston, 70, at 3223 Graceland, chronic myocarditis. Verne Kreiser, 56, at 6379 Park,
a hepatic cirrhosis. 169, at 1337 Montcalm,
rank. Bryant, cerebral hemorrhage. : Milford L. Pitcher, 49, at Methodist, acute appendictis Mildred E. i: rdy, 28, at 1469 N. Alabama, peritonsillar abscess. py 1a Young, 43, at Methodist, carci-
nO oll E. MeRaight, 49, at 51 N. Capitol, coronary occlusio: Amanda Hill, 78, I 1119 Deloss, arterio-
sclerosis. 83, at Methodist,
rles Bertelsman, arteriosclerosis. alinda Richter, id at 3407 Winthrop, cerebral hemos Richard R. Pris aer, 4 days, at Coleman, RD raCoalial hemorrhage. Lida Ratliff, 67, at Methodist, coronary oe oe Miller, 5649 N. y A er, Pennsylvani cerebral hemorrhage. ¥ 2 John Caylor Carney, 55, at 910 Lesley, coronary occlusion. Harry Sink, 57, at 1035 S. Tremont, coronary occlusion Judge Veron 64, at City, bronchopneumonia.
Jennie Jackson,
51, at Veterans
bama, coronary occlusion foiorace Jones, 54, at Tia Edgemont, inAddie Brock, 84, at 20 chronic myocarditis 08: Beulevar), Mary Helen Hunter, 29, at City, lobar pneumonia.
INCORPORATIONS
Bako Paint Co., Minnesota corporaHon withdrawal pom Aogiana, n ros nc., Dela - tion; withdrawal from Indi PH ore dormors is ppy & Co., Waveland: disso-
Water Works Co. of Perdin Ferdinand; final dissolution. ang. Ind, Huntington rniture Market, Huntington; dissolution by decree Inc,
Winton Engine Corp., Delaware corporation: withdrawal from Indiana. P al change ofr Real y Corps Indians : e of resident agent to bert PB onrans 1 30 W. Michigan St., lis. The Northeast Republican Club, Inc 1912 Valley Ave. Indianapolis: no capital stock; Tal and Mildred Felknor, C. C. Callaway Jr., tration of tratle- LT “Fan-cy,” class 44;
Ww. Gordon Grant, Atlanta, Ga. tration of trade-mark, ‘‘Sun-Glo,” 44; nonalcoholic beverages. Aviation Linen Supply, Inc., sylvania Ave., ast icag resident ES chi Steve Matros, 1414 ‘Michigan Ave., hicago; capital stock, 100 shares
arthe ‘Robertenn, nta, Ga.:
regisnonalcoholic thet er-
re isclass
Sowers Steve
$120,000,000
The U. S. Chamber of Commerce |
FOREIGN SITUATION
PARIS—Furported Hitler plan to obtain colonies published. BURGOS — ¥ranco reported planning warning to Madrid. planes to quell revolt. MADRID--Defense Council uses Planes in attempt to quell revolt,
LONDOM--Britain seeks world’s strongest air force. ” 8 »
WASHINGTON — Accord with Brazil provides for new debt payments. 2 ” ” SHANGHAI—3000 reported dead in Japanese raid on Ichang.
TOKYO — Japan to demand naval equality in Western Pacific.
BRITAIN SEEKS BEST BOMBERS
Aid to France, if War Comes, to Be Discussed By General Staffs.
LONDON, March 9 (U. p) ~The Eritish Air Force is “as formidable as any in the world and in bomber fighting forces we possess what we believe to be the best in the world,” Air Minister Sir Kingsley Wood told the House of Commons today in introducing the budgetary air estimates. It was sxpebted that British and French General Staffs would soon discuss the size and strategy of a British expeditionary force which, it is regarded as certain, would be sent to France in event of war. Continuing the revelations of British war preparations—viewed as an indirect warning to the totalitarian ‘powers—the Air Minister announced that 75,000 men would be required in 1939 for the royal air force and its reserves and auxiliaries. Twenty new air force stations will be established in 1939, he said. © |
Field Army Shaped
Tieslie Hore-Belisha, War Minister, in announcing in the House of Commons yesterday that the Government was shaping a field army of 19 or more divisions for use in| France if neecssary, took pains to say that the Government hac not actually committed itself to dispatch of an expeditionary for:e during its war plan talks with Frence, But there seemed no doubt in the minds of those who heard him outlin: detailed plans for a “field army” thet the Government believed that if Britain and France became involved gs allies in a continental war it. would ‘be necessary at once for | © Britain to send a formidable army to France at once. This would be to aid in safeguarding the English Channel ports from the French side, to strike some quick blow at an exposed part. of an enemy army, and even more important to show France and the world that Great Britain intended to put every ounce of its strength and its vast reserve power into the struggle.
MRS. GABLE LOSES $7000 IN CELEBRATION
HOLLYWOOD, March 9 (U. P.). —N\rs., Maria Gable was back from Nevada today, minus nearly $1000 she lost at roulette while celebrating her divorce from Clark Gable. Friends said she had especially bac luck with her favorite number of 35 at the two Las Vegas casinos where she played far into the night after. She is expected to remain in Hollywood several days and leave for. New York City to meet friends
Thurman S. Tongret, 70, at 1805 N. Ala- row
Indian- |p
Sophia Meyer, |K
Sus Penn- | Omaha
returning from Europe.
apoli's Blvd, East Chicago: resident agens, A. A, Bochnowski, 4611 Baring Ave., East ‘Chicago; capital stock, 100 shares no par value; real estate business: Eugene Dom)kowski, Jeanne Dombkowski, Matt Dom hkowskli. ery Lancers, Inc.. 5012 W. 15th 'St., Gary; no capital st ock: : cial and athletic© Charles Jong James Skomac, Georze F. Winslow id others.
OFFICIAL WEATHER
a aueBY U. S. Weather Rureau
INDIANAPOLIS FORECAST — Unsettled and colder tonight with lowest temperatures 30 to 35; tomorrow. mostly cloudy with rising temperature, probably followed by rain.
_ Sunrise 1 . 6:06 | Sunset ens
TEMPERATURE —March 9, 1938—
- 31 | ceoses 37
5:45
1p. m. “BAROMETER
Prec: nitation 24 Lt 7 a. m.. Tota precipitation since Jan. Exce: s § since Jan. 1
MIDWEST WEATHER
Inciana—Generally fair in north, un hc in south portion, colder toni ht; tomorrow incregsing cloudiness followe by rain, rising temperature. Illinois—Mostly cloudy, occasional rain probable in south and west central portions tonight and tomorrow and in northeast and extreme north portions tomorrow; somewhat colder in extreme east portion tonight. rising temperature tomor-
Lov er Michigan—Cloud becoming fair, colder tonight; tomorrow increasing cloudiness, snow in west and south portions by afternoon or night. Ohio— Fair and much colder tonight; tomorrow increasing cloudiness, colder in extreme east portion tomorrow; Saturda fam a n south and rain or snow in nort Ken to cky---Mostly cloudy and colder tonight. fomorrow cloudy, rain tomorrow night and in west portion tomorrow aftgrin: colder in extreme east portion to-
WEATHER IN OTHER CITIES AT 7 A. M.
Station Weather Bar. Temp. Amarillo, TeX ...e....PtCldy 1 Bismarck, N. , esse. PtCldy Boston Cloudy
Chicaro ... Cloud Cincinnati Proldy Clevel: ind Clear
Jacksonville, 2a. en ansas city, Little Roc kK
and | Miam:
$50 par value; operate laundries and | 8 nd lineg ply siness;
Franco Masses Army Before Madrid U.S. 10 EXTEND
Miaja Uses Ta Tanks and Planes to Suppress
Communist Revolt.
; By United Press Generalissimo Franco massed his
‘| armies outside Madrid today for quick intervention if the new|3
Spanish Loyalist Defense Council
against its peace program. It was reported at the French frontier that Gen. Franco had already occupied Loyalist positions abandoned by the Loyalists in the attempt to crush the Communist
revolt. The Communist outbreak in Madrid, Valencia, Cartagena and other cities appeared to have been crushed yesterday but still was going strong today in Madrid where a powerful Loyalist force under Gen. Jose Miaja, Defense Council head, attacked the Rebels with tanks, infantry, airplanes and artillery. The rebellion also appeared to be gaining ground in the Ciudad Real sector, south of Toledo, and the Governor appealed by radio to Gen. Miaja to dispatch republican airplanes to bomb the Communists there.
Franco Prepares to Attack
Gen. Franco, his field headquarters moved up close to the front lines, received regular reports on the uprising and was reported consider= ing a 24-hour ultimatum to the Defense Council for unconditional surrender on threat of launching the greatest offensive of the war. He barred all nonmilitary traffic within 25 miles of Madrid, indicating that he was ready to strike at any hour. In London, sources close to the Government reported that Great Britain might challenge the newly established Franco blockade of all Spanish Mediterranean ports, where his submarines were ordered to sink on sight ships of any nationality that try to reach Loyalist ports. At Valencia, National Defense Council officials reported that more than 2500 Communists had been arrested there and at Cartagena, including Gen. Juan Bernah, and a large number of others at Madrid, where at least 10 executions were reported. “Republican forces are advancing victoriously,” Gen. Miaja announced to the people of Madrid by radio as its attacking troops forced two Communist companies and part of! the 200th Brigade in the Madrid sector to surrender. “Republican troops have occupied all of the entrances to Madrid. At least 1000 of the rebel carabineers have deserted their leaders and joined the Republicans.”
Reinforcements Called
The Defense Council urgently called in reinforcements from | the units in the front lines around Madrid and attacked the Communist strongholds in the outskirts. Gen. Miaja’s troops, led by mobile units, surrounded the Communist brigade garrisoned at Canilleras and forced its surrender. Later
other Communist units were reported surrendering, but there still remained a large scattered force of, Rebels, including several strong motorized units, which defied the Council’s authority. The Defense Council has been seeking to negotiate with Gen. Franco for an “honorable” peace but Gen. Franco so far has given
than unconditional surrender. The Communist rebellion was in protest against the Council’s peace negotiations, demanding a fight-to-the finish. It was said that if Gen. Franco decided on an ultimatum he would drop leaflets announcing it on Madrid by plane.
U. S. Protest to
|France Reported
LONDON, March 9 (U. P.). — The
‘| Leftist news sheet, The Week, re-
ported today that U. S. Ambassador Willic>1 C. Bullitt in Paris, had adviced the Fronch Government that Washington viewed with “alarm and distrust” the recent BritishFrench maneuver which turned the
over to Gen. Franco. Any extension of such methods, in which a British warship took a Franco intermediary to the island, would have a worse effect on public opinion in America than did the British-French recognition of the|h Franco regime, The Week said.
fails to crush Communist rebellion |}
no sign that he would accept other,
Mediterranean Island of Minorca|
COUNTERFEITING SUSPECTS HELD
Two Indicted After Finding. Of Bogus Bills Buried On Golf Course.
CHICAGO, March 9 (U. P.)—A detective story which unearthed a golf course cache of $17,880 in counterfeit money and rivaled buried treasure fiction was revealed today by Federal indictment of two men.
The Federat Grand Jury voted counterfeiting, * indictments late vesterday against Frankie Parker, reputed “airplane bootlegger” of the Prohibition area, and August Englehart, former Chicago saloonkeeper now ‘serving a counterfeiting term at Terminal Island Federal prison in California. The jury acted on a story of international counterfeiting, code letters and buried treasures unfolded by Capt. Thomas J. Callaghan, ace investigator for the U. S. secret service. -
Traces Spurious Bills
Capt. Callaghan said the -golf course cache of spurious $20 bills was part of $80,000 worth Englehart obtained from a two million-dollar supply reportedly printed in Europe for “Count” Victor Lustig, famed international swindler. Lustig is serving a 20-year term in Alcatraz Island Federal prison, imposed in New York in 1935. About the time of Lustig’s capture, according to Capt. Callaghan’s information, $80,000 of his counterfeit hoard came into the hands of Englehart ‘and Parker. Englehart allegedly wholesaled the bills in Chicago at $30 for each $100 worth. The Chicago supply dried up abruptly in 1936 after Arnold Becker was sentenced to a year and a day in prison for passing two of them. Becker had known Englehart and
2 TAVERN OPERATORS ARRESTED IN RAIDS
Two tavern operators of New Bethel and Beech Grove were to appear in Municipal Court today on charges of possessing slot machines and advertising a lottery after deputy sheriffs arrested them in raids last night. Deputies said they seized a truckload of punchboards, electric race horse machines, a blackjack machine and other alleged gambling equipmon® and two jars of lottery tickets bearing the name “E-Z-Pickens.” The equipment came from the New Bethel tavern, deputies said. Several slot machines were taken from a tavern in the 1900 block on Churchman Ave., Beech Grove, they reported.
REPORT PASSENGERS ON AIRLINER SAFE
NEW YORK, March 9 (U. P.).—
via Radiomarine’s coastal station at Chatham, Mass., that it had received an SOS call from a British passenger airplane down at sea but had learned later the occupants were safe.
Reorganizati
After stifling a revolt that threatened to curtail materially the Chief Executive’s powers, the House passed the controversial measure last night by a vote of 246 to 153. The vote was almost strictly along party lines, 234 Democrats, eight Republicans, one American Laborite, one Farmer Laborite and two Progressives voting for it. Against it were 148 Republicans and five Democrats. The Indiana delegation split on strictly party lines, with all the
:| Hoosier Democrats voting for the
bill, all the Indiana Republicans against it. Rep. Gerald Landis (R. Ind.), ex-
* |plaining the vote of his Republican
colleagues, declared that reorganization had been one of the chief issues of the 1938 campaign in his
_|district and that the people of In-
diana are “against any reorganization bill that will give more power to the President.” Administration leaders predicted that a similar bill would be approved by the Senate, and that there would be no repetition of last year’s battle when 29 days were consumed in debate on a measure which
ion Bill Goes To Senate for New Fight
WASHINGTON, March 9 (U. P.).—Senate Republicans and anti-New Deal Democrats prepared today for an assault on the House-approved Government Reorganization Bill which would give the President limited authority to reshuffle premanent and emergency Federal agencies.
Chairman Byrnes (D. S. C) of the Senate Reorganization Committee said last night that the issue had been “thoroughly covered,” and that there was “no disposition” on his part to hold hearings on the House bill. Senator Byrnes, who has introduced a companion bill in the Senate, planned to sponsor the House proposal, which permits the President’s reorganization suggestions to become effective automatically within 60 days after their submission to Congress unless hoth Senate and House reject them.
membership and a substantial bloc of anti-New Deal Democrats, how= ever, began conferences on strategy to win’ approval of a bill proposed by Senator Byrd (D. Va.), which would nullify reorganization proposals unless the two Congressional branches approved them within 20 days. House Republicans offered features of the Byrd plan curing consideration of the bill yesterday, but were beaten down by the Yop-fieavy Democratic majority.
Republicans and some Democrats
Administration
i Tackles Pal and Smothers Fire
Parker in Joliet Penitentiary. - |~
Practically the entire Republican |
Times Photo.
Although his neighbors were calling him a hero, George Brand was at his studies today at Washington High School, as usual. Yesterday George tackled his friend, Ray Swindle, and smothered a fire which was burning Ray’s clothing. Ray was in the City Hospital recovering from leg burns. The accident resulted from a gasoline explosion.
Gasoline Explodes; 1 Injured
Seventeen - year -old Ray Swindle was in City Hospital today recovering from burns on the legs that only a timely football tackle by his chum, Geoge Brand, prevented from becoming more serious. Ray, 1751 Morgan St., and his friend, George, 18, of 2220 Thornberry St. were watching Gesrge’s brother-in-law, Dale Padget of 2214 Thornberry St. clean some auto parts in gasoline. : The boys were dropping lighted matches into a small can of gasoline, George said, to see if it would explode. The gasoline ignited and spread to Ray’s clothing. He began running, but Brand threw him to the ground with a flying tackle and smothered the flames. Brand was unhurt.
DOZEN PENNSYLVANIA POLITICIANS INDICTED
HARRISBURG, Pa., March 9 (U. P.)—Twelve Pennsylvania Democratic leaders were indicted by the Dauphin County Grand Jury today on charges of political “macing,” misuse of highway funds and conspiracy to monopolize the State’s bonding and insurance business. The indictments had been recommended by the September Grand Jury which three months ago began an investigation into graft and corruption chrages against the “Little New Deal” organization of former Governor Earle. Three former state cabinet officers were among those named in the indictments. They were David L. Lawrence, Ralph M. Bashore and Roy E. Brownmiller.
Strauss Says:
The S. S. Columbus reported today, |&%
There are something like 500 ties—and they'll go in no time at all.
| agencies,
Reciprocal Levy' Bill Snarled in Senate By Riders.
By LEE G. MILLER
[Report Profits T ax Doomed as Gesture To Assist Business
Roosevelt Sees Treasury Officials and Aids ~ In Congress.
Ee (Continued from Page One)
Times Special Writer
WASHINGTON, March 9.—With a deadline six days off, the Administration’s bill to remove the reciprocal income-tax immunity of Federal, and State salaries has ru into “grease trouble.” Three Senators from agricultural states have introduced amendments to the .salary-tax bill which calls for increasing the excise taxes on certain imported oils, with which domestic oils and greases compete. The Senate Finance Committee, which had already reported the bill favorably, agreed to conduct hearings on these unrelated riders—an unusual procedure. In view of the hearings, which the Committee hoped to conclude today, the bill has not been brought up in the Senate for a vote. Its sponsors now expect it to be called up Monday. If action is not obtained by next Wednesday, incometax day, numerous officials and employees of quasi-governmental whose salaries the Supreme Court has recently held taxable, will be in a stew. For the bill carries a provision excusing them from taxation of their salaries in past years.
Passed by House
The Treasury has said it must collect income tax on these back salaries, in view of the Supreme Court’s ruling in the Port of New York Authority case, unless Congress orders otherwise by March 15. The House has already passed the bill. The riders which are causing the delay were introduced by Sengtors Connally (D. Tex.), Bailey (D. N. C.) and Gillette (D. Ia.). They would in effect raise the taxes on the principal imported oils from 3 cents a pound to 5 cents, and thus benefit domestic producers of lard, cottonseed oil, soybean oil, tallow and grease. Committee Reported Split
Secretaries Hull and Wallace, Resident Commissioner J. M, Elizalde of the Philippines (a major source of coconut oil) and others have testified against the riders. The Commitee is said to be divided fairly evenly on them. While the salary-tax bill appears to be stymied only for a few |days, with enactment in sight, the Administration’s twin proposal to strip the tax exemption from Federal, state and local securities is still in the early stages of consideration. The House Ways and Means Committee has not touched it yet. The Senate’s special committee on the subject, headed by Senator Brown (D. Mich.), was to have made. its report March 1, but obtained a three-month extension. Senator Brown said today he hoped the report could be finished in April.
WASHINGTON, March 9 (U. P.). —The House Judiciary Committee decided in secret session today io hear testimony from two immigration officials on the Harry Bridges deportation case before acting on an
impeachment resolution against Labor Secretary Perkins.
revenue must be devised to take their place. Thus business and industry will find, before the bill is finally enacted—probably months hence—that there is no easy road in tax revision. Business pressure is concentrated chiefly now upon repeal of the capital-gains tax and removal of the remaining vestiges of the undis=-tributed-profits tax. For this, it is suggested that the old form of straight corporation tax be substituted. The Administration, dicated, will resist repeal of the capital-gains . tax, though it may recommend some. modification to reduce the complications of this levy, Repeal of the tax, according to experts, would invite evasions of all -sorts. While there is much agitation for abolishing the undistributed-profits tax, this levy is a blessing to some distressed businesses and industries, through the various cushions it provides for them, and its elimination would be resisted from some quarters.
Psychological Effect Studied
Psychologically, it is felt, a change in the undistributed-profits tax might. help business more than revision of other business tax reforms, but some experts. believe that repeal or modification of the capital= stock and excess-profits taxes might accomplish more real relief. These taxes are expected to receive atten= tion from the Treasury. Treasury experts also are studying the possibility of lowering the rate on intercorporate dividends, and more liberal treatment of consolidated corporation tax returns and carry-over of losses. One Treasury objective will be the simplification of business tax re=turns, so that business taxes will be lumped in only two general categories, income and Social Security taxes. Secretary Morgenthau will not submit his recommendations to Con= gress until after the March 15 returns are in, It is expected that the Treasury recommendations will be ready about April 1,
Milk Industry Monopoly Charged
WASHINGTON, March 9 (U. P.). —Dr Frederic C. Howe, former consumers counsel for the Agricultural Adjustment Administration, charged today that two large producers fix retail prices for the two billion dollar milk industry. He did not name the two distribe utors who “fix the price to the consumer at one end of the line as they fixe the price to the farmer at the other end,” but said they operate out of New York ity. Mr. Howe introduced charts showing that the National Dairy Products Corp. and the Borden Co. together handled large percentages of milk distribution in selected cities in 1930, but he did not say those were the two companies to which
it is in-
he referred.
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Foulard “SELF-folded"
Neckties—
that form
a
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i
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