Indianapolis Times, Indianapolis, Marion County, 18 November 1939 — Page 3

| | British-F re

nch Pact

With Japs Indicated.

By Rec

Tokyo, Moscow Relations

NAZIS EXECUTE

Favorable but New _Entente Unlikely.

PHILIP SIMMS Times Foreign Editor

By

WASHINGTON, Nov. 18.—Stranger things have happehed in this strange war than that Japan should " yet line up with Great Britain and

France. Reports from Tokyo that Jap-anese-Soviet relations have reached

& more favorable point than ever}.

before,” while not doubted here, are

on the other hand not taken to

mean that a new Far Eastern entente is in sight. Confidential information

Japan thoroughly distrusts the Rus-

sians, she is a realist and her need

and Russia's need just now happen to coincide. . Russia very much needs a free hand in Europe as long as the war in that area lasts. Japan desperately wants to end the war with China soon. Russia and Japan, therefore, have good reason to prolong their Present truce.

Japan Dislikes Communism

The Japanese are just as hostile to Communism as they ever were. Their leaders resent as much as ever Berlin's pact with Moscow. Many feel that when it was signed Adolf Hitler sealed his own doom, just as he himself once said any nation would that made an ally of the . Soviets. Other developments indicate that the future of Asia is quite as uncertain as that of Europe. The attitude of all the interested powers is completely hidden in a fog. France is reported to have suggested to Generalissimo Chiang Kai-shek that he make peace with Japan, and Britain has just ordered her troops to evacuate: the treaty ports. Hardly enough are being left behind te do police duty. Britain's announced reason was that the war in Europe necessitated the move. -But the- handful of effectives she is recalling from China are not even a drop in the European bucket. Besides, Britain is. refusing additional manpower, even when offered by Canada, Australia and other dominions. To them she says she needs material, not men. The real reason, therefore, must be sought elsewhere.

Hitler Put Himself on Spot -

Observers are wondering if Britain, France and Japan are preparne the ground for an understandg. “If can not be denied,” says Ryuri Yoshimura in “Nippon Oyobi Nippojin,” that .“by effecting the rapprochement with Germany, Soviet Russia intended to give rise to .another World War which would provide the necessary ground for retraditional policy of bolshevizing the world.” Stalin therefore, not Herr Hitler, he argues, initiated the MoscowBerlin pact. This he did because “Germany had been hesitating to make up her mind whether to go to war with Great Britain. Thus|Sal we can not but believe that the person who set fire to the fuse of the second European war was Stalin.” ; Nevertheless, the writer goes on to say, Herr Hitler has placed himself on the spot. “For, in the last stage of the war, when the Germans have been worn out from long, exhaustive warfare, the Communist Party may openly start its baneful activities among the Germans.”

Japan’s Stand May Be Vital

Looking ahead, the writer foresees the time when Japan’s attitude will be highly important and her bargaining position correspondingly excellent. “If Japan,” he observes, “should gide with the Anglo-French—allow-ing, as a result, the United States to concentrate her energies on assisting the European democracies—the strength of the German-Italian combination would necessarily suffer. No help could be expected from Russia. That is why Germany is once more trying to attach Japan to her own camp. It also accounts for he rumor thai Germany is acting as intermediary between Japan and Soviet Russia for a rapprochement.” The Japanese writer's conclusion is that Japan should settle the China war at the earliest possible moment. She would then be free to move in whatever direction her interests seemed to dictate.

from authoritative sources is that while

ent Events

3 MORE CZECHS IN PRAHA RIOTS

10,000 Storm Troops Keep Guard in Protectorate; 1200 Arrested.

(Continued from Page One) Czechoslovak Minister,

announced

Committee in Exile, headed by Benes, to raise a Czech Army to fight with France. Also it was reported that a Polish Army of several thousands, headed by Gen. Wiladislaw Sikorski, Polish Premier, was established on the French front, under the Polish flag and Wearing the Spanish Basque blue berets with the eagle insignia of Poland. ttached

Means Early Allied Victory, Benes Says

LONDON, Nov. 18 (U. P)— { Former President Eduard Benes of Czechoslovakia said today that Czechoslovakian resistance to Germany which led to nine executions in Praha yesterday and to three more today will contribute to an early Allied victory. \ Benes now is chairman of a man rule increases it ‘will mean which is raising an army to fight on French soil. “Czechoslovakia contributes in two ways to the success of the Allied cause,” Benes said today. “First, national res ce in our home country is very strong. At the moment difficulties in Germany with the Catholics, Monarchists, Socialists and old German democrats are growing constantly, “Added to this are the difficulties Germany has with the Polish population. As Czech resistance to Germore trouble for Germany. trouble for Germany. . Predicts Roused Nation °

“Second, Czechoslovaks in England and France are taking action in a military way. Our purpose is to put into action on the Western Front a Czechoslovakian Army under command. of Czechoslovakian officers.” Benes said that the Praha executions “are a crime that will affect Czech opinion the same as the assassination of nurse Edith Cavell did England.” “The reign of terror in Czechoslovakia is getting more brutal and terrible. . . . What was supposed to be retaliation for a celebration of Czech Independence Day is simply brutal assassination,” he said. He said Germany’s internal situation was becoming - more - difficult and that Germany’s position in the war deteriorating. Nation Still Lives, He Says “Czechoslovakia lives spiritually and morally; it’s only a question of time—only a short time—until Czechoslovakia will also be free poliiieally and internationally,” he

Jan Garrigue Masaryk, former Czechoslovakia Minister to Great Britain, said the student demonstrations had not been encouraged by Czech officials in exile because any general uprising now, when the war hadn’t -actually started, would be “stupidly premature.” He said the student demonstration; was “symptomatic of the nervousness and restlessness of the Czech people under German rule.”

CIVIC LEAGUE DENIES IT PROTESTED COWS

The East 21st St. Civic League will protest against the reported use of its name by a Health Board employee in efforts to rid an East Side section of cows. At its meeting last night at the home of Mrs. Regina Kramer, 4400 E. 21st St, the league was told that the health officer told owners of cows on E. 21s" St., 4400 and blocks, that the league wanted them Maken from the neighborhood. League members said that the cows were kept about 100 feet from homes and they had no complaint against them. The League scheduled a Christmas party for children on Dec. 15 at School 68.

IN INDIANAPOLIS

Here Is the Traffic Record, County City 1938 Ses RARN IRB EDN 100 67 1839 ......... ~Nov. 17— 9|Arrests ...... O|Accidents .. FRIDAY TRAFFIC COURT Cases Convie- Fines

Violations Tried tions Paid $120 35

3

17 | tasis.

60 $278 [2%

Ss War Veterans, dinner, craze soe panish P= a

Syiphony Orchestra, hs Bast Toa Tia Bo: “dance, Hotel | m8

Severin, 9 p. m-. MARRIAGE LICENSES

(These tists are (rom official records in the County Court House. The Times, therefore. is riot responsible for errors in names and addresses.

38 91.10% 8, Me

join, Louise Moore, at ‘12102 Bellefon-

Girls Wilber, Lillian Cross, at olenias. Dale, Sare, at Michael, elen Kocolowski, a Methodist. Donald, Myra Hartzell, at Methodist. Floyd, Rosemary McGeorge, at Methodist.

DEATHS Prank Newport. 6 64, at 227 N. New Jersey, coronary occ mortage. Hill, , ‘at 3910 Byram, cerebral olden, 78, at 2177 Dexter, obFT of gall bladder ¥ ‘Hermia Junghans, at 1067 Hosbrook, carcinoma. Harry Vance, 44, at 1337 W. 27th, dis. | BX

S. Loretta Wiese, 23 days, at Riley, atelec-

Edward Tompkins, 75, at 3442 Kenwood, chronic myocard

FIRES

Friday 3 17 a. m.—5530 College, smoking fur-

= 03 a. m.—1107 Owosso, sparks’ from

124 .~—~Camby, Ind. Siam Oumby. and Washington,

a a, m.—1410 Kelley, sparks from a a. m.—3207 N. Arsenal, boys with 10:49 a. m.—706 Sheffield,

J138 a m—~1410 Rel) > 3327p m.—4700 E bi

7”

ras

a3

Be.

Susy 61st, short in

m.—49th and Boulevard, hot Saturday

ok pet OO “BS eeee

—Box 1735, { 1801 E. Mi

n, smoke.

38th. Am —200 West Drive, White River | Bism

m.—19th and College, short | Ei

the formation of a Czech National 1 os

Western Front.

CLAIM BRITISH FLIERS ROUTED

Nazis Say Three Planes Tried to Attack Base At Wilhelmshaven.

BERLIN, Nov. 18 (U. P.).—The Army High Command announced today that three British airplanes had attempted to raid Wilhelmshaven, German naval base, but had been “thwarted,” by anti-aireraft fire. ; German pursuit’ planes chased the three raiders after anti-aircraft gunners had’ turned them back, but were unable to catch them, the communique said. The time ‘of the raid was not announced, but was believed to have been yesterday. (On Sept. 4, the day after they

Wilhelmshaven and were reported to have seriously damaged a- German pocket battleship. Gernians have denied that any warship was damaged in the raid but the 1939 edition of Jane's Fighting Ships, authoritative naval annual, came out this week authenticating the report and quoting “American press sources,” as saying the damaged ship was the Admiral Von Spee, one of three German pocket battleships.) The German communique added that “in the West, there were only limited reconnaissance actions.”

Extend Air Activity

“In the district between the Moselle and the Rhine there was local artillery fire,” the communique said. “On the Upper Rhine everything was quiet with the exception of enemy machine gun fire. East of the Moselle the French were digging trenches. We also observed heavy artillery in this district. “Our air reconnaissance was carried far Into French’ and English territory.”

British Fear Nazi Raids - As ‘Blackouts’ Lengthen

LONDON, Nov. 18 (U. P).— Winter settles unofficially over the Allied wat fronts at midnight (5 p. m. Indianapolis Time), lengthening the long, hazardous nights of “blackout” and. increasing the fear that Germany, blocked off the sea

‘and out of France, will try to stim-

ulate her hungry people by serfding fleets of bombers against the British Isles. At midnight, the clocks in Great Britain and France will stop for an hour, ending daylight savings time. This means, in London for instance, that “black-out” starts at 4:34 p. m. Monday and that hundreds of thousands of clerks and

4500 | factory hands will have to go home

in absolute darkness. The perils of this condition were best illustrated by figures showing that 564 persons were killed in

October. These casualties at home were greater than the combined British and French losses on the battle front. 1

OFFICIAL WEATHER | U. S. Weather Bureato

INDIANAPOLIS FORECAST — Mostly cloudy tonight and tomorrow; probably occasional rains; not much change in temperature.

Sunrise

esse 6:34 | Sunset TEMPERATURE —Nov. 18, 1938— 8a m....... 59 BAROMETER 6:30 a. m...30.19 FORD srectnt 24 hs, ending 7 Ms

seibitation ; since Jan.

. na—Cloudy 1 and tomorrow, ian occasional cooler in extreme north portion.

als—Cloudy

coos 4127

jomoriow, probably o gecasion what cooler

Lower Michigan Generally fair tonight and tomorrow, except pro sional a alo! g sou thern 4 ay somewhat

cooler fo Ohio—Intermitant rain tonight and ON oe armer. in south portion tonight;

Rentucks.Intermitient rain Jonisht and tomorrow; in central portions {onight: colder aaa

fon Taf some and

seed essrgersas Bt ceieiiiennm, eset.

went to war, British fliers bombed | per

British traffic during “blackout” in|.

FRAUD DEFENSE

BEGINS MONDAY

FOR 2 ON TRIAL

SEC Ald Tels of Inspecting

‘Books of Firms Accused “In Swindle.

TW Persons ‘shared with using

{the malls to defraud nearly 200 In-

diana investors of more than $640,-

000 will begin their defense ‘Monday

|in Federal Court.

‘The Government completed its

| p. m. yesterday after {five days of testimony.

Edward J. Hartenfeld of Hender-

son, ‘Ky., and Chicago, and John K. Knapp, 2703 Washington Blvd., are

on trial. Two other defendants,

| Mrs. Ethel Pitt Donnell, 3707 N. Me-|

Gary Safety Leader Tests Drunk-O-Meter for Judge

GARY, Ind. Nov. 18 (U. P.).—Richard S. ‘Kaplan, 40, president of the

Gary Safety Council, plans to sit down wi

—for the causes of Justice, science possible, *+

a bottle of whisky today and safety—and get as “blotto” as

- His purpose will be fo fest a einleosRicten: a device to determine whether a person is intoxicated. Its use has been a point of issue between

the Safety Council and Police Department on one side, and Judge William Fletcher of the Gary City Court on the other. “Judge Fletcher doesn’t consider the test accurate and believes results of such tests should not be acceptable as evidence,” Mr. Kaplan said. “The police believe they are accurate. I propose to end the controversy today.”

Breath Analyzed in Test

In using the device, the subject blows into a balloon, his breath is analyzed, and-the percentage of alcohol in the blood is determined. Scientists say a person is considered intoxicated when the blood’s alcoholic content passes .15 of 1 cent. “I'll take a couple of drinks; ” Mr. Kaplan said, “then I'll blow into the balloon and a test will be made. A little later I'll take a <couple more and another test will be made, and so on until I'm really tight.” Judge to Be Present

The test will be conducted in the office of Police Chief William .J. Linn. Kaplan said Judge Fletcher, members of the Police Department and officials of the Safety Council would be present. He said Judge Fletcher had promised to accept the tests as evidence if he is satisfied with the demonstration. Mr. Paplan didn’t believe he would enjoy himself. He expects to have a bad hangover. Furthermore, he has to buy his own drinks.

RUMANIA EXTENDS HAND TO TURKEY

BUCHAREST, Rumania, Nov. 18]

(U. P.).—Rumania demonstrated friendship for Turkey, which has an alliance ‘with Great Britain and France, by disclosing today that Lufti Kirdar, Governor of Istanbul, was being taken on a tour of inspection of Rumania’s aircraft defenses in industrial centers. Kirdar spent two days in Bucharest and now has gone to Brasov, the nation’s greatest industrial center, to see the anti-aircraft guns the Rumanians have set up in the surrounding Carpathian Mountains. Meantime, it was reported at Istanbul that Jugoslavia had agreed to a Rumanian-Turkish proposal for a Balkan entente conference, and that a meeting would almost certainly be arranged, with Bulgaria invited to sit as an observer along with the entente nations—Turkey, Greece, Jugoslavia and Rumania. The general belief was that Italy was strongly in favor of a six-nation Balkan neutral bloc including Bulgaria, which} she could dominate.

JOINS FIGHT ON MILK PRICE RISE

Members of East 21st St. Civic League to Add Their Protest; Racket Charged.

(Continued from Page One)

milk law is assessed against the producers, herice the farmer gets very little more gross income from his milk than he did before the advent of the law. “Now we find no iota of a legitimate reason why the price of milk should be raised at the present time,” his statement said. “Agricultural figures show us that there is more feed for cows, such as fodder, hay, corn, etc., this fall than there has been for the past 10 years. “Figures also show us there is more surplus milk at the present

time in Indiana than there was one|jno

year ago. Since we have proof that there is a surplus of milk at the present time and an abundance of cow feed we find no reason for increase Jn price of milk to the consumer.” Mr. Roberts cited to those administering the law that 80 per cent of the voters in Indiana live in towns and cities and buy milk. “If we are required to wait until 1940 to get the rascals in order to hold down the retail price of milk for the unemployed and the poor, the ears of said 80 per cent of voters will be open for political speeches advocating a change,” the statement said. :

A. M. T. ASKS SINGLE U. S. HEALTH AGENCY

CHICAGO, Nov. 18 (U. P.).—The American Medical Association, in an eight-phase platform it said was designed to meet the “exigency” presented by the Wagner Federal health bill, today recommended establishment of a single Federal agency to co-ordinate all health functions of the Government. The platform ‘was the first in A. M. A, history. The A. M. A. board of trustees announced it as their “official viewpoint of suggested courses of American medicine,” and expressed hope it might be of value to Federal authorities in drafiing health legislation.

HORE-BELISHA AT FRONT WITH BRITISH EXPEDITIONARY FORCES, Nov. 18 (U. P.).— War Secretary Leslie Hore-Belisha visited British troops in the front lines today and witnessed mock battles in muddy fields behind advance blockhouses.

Dow W. Vorhies, County Commissioner, Dies at 63

(Continued from Page One)

Indiana Democratic Club, a member of the board of trustees of the Cen-

‘ ter Methodist Church, and a direc-

tor of the Southport State Bank. One of the organizers of the Indiana County Commissioners Association, he had been president and was sec-retary-treasurer at the time of his death. He had been active in the Indiana Farm Bureau. Mr. Vorhies was one of ‘the 10 founders of the Southport State Bank in 1916. He was a director from ‘ that time, and at his death was secretary of the board. > Funeral services will be held at 3:30 p. m. Monday at Shirley Bros.

4 to-|Mortuary. Brief services also will be held at the. Center Methodist}

Church at 1 p. m. Monday. John Linder to Speak : The Rev. A. L. Swarens, Center

.| Church pastor, will officiate. John F.

Linder, County ‘Attorney, will also

“|speak at the mortuary services.

The Court House will be closed Monday afternoon and the Commis-= sions’ Court will be closed all day.!\ Active pallbearers will be. Fabian W. Biemer, Edward Cooper, Sheriff Al Gi Feeney, Glenn B. Ralston,

Sheldon A. Key and Donovan A.

Honorary pallbearers will include

yor Reginald H. Sullivan, Judge | Marcy, IR, Cox. Judge Dewey E. ) en: k

ade Smiley N_Chim

# » »

ridian St. and Robert D. Beckett, 5520 College Ave, have pleaded guilty and are awaiting sentence. Motions Overruled - After the Government concluded

: al 2 : 7 its case yesterday and the jury was A Nazi soldier takes shelter in the alley between two buildings as-a land mine explodes on the

sent from the courtroom, Judge Robert C. Baltzell overruled motions for a directed verdict of acquittal filed by attorneys for Hartenfeld and Knapp. Judge Balfzell told James A. Ross, the attorney he appointed to defend Hartenfeld, that “there is no question about the evidence as far as Hartenfeld is concerned.” = Mr. Ross had asserted that the evidence presented was not sufficient to prove Hartenfeld’s part in the alleged conspiracy. Harold Woodard, Knapp’s attorney, said in his motion that “there is no evidence of Knapp’s part in a conspiracy. Knapp’s acts are consistent with intocence.”

‘There’s Much Difference’

Judge Baltzell replied that “so far as the evidence is concerned as to the defendant Knapp, there is much difference between him and the others.” “The evidence is rather limited as to him,” the Judge stated. “It: is plain that some of the notes which he did not enter in the books did not come to his attention.” Knapp was bookkeeper and secretary for the holding company involved in the alleged scheme. “The question is whether or not his acts were done in innocence as an employee or did he know what was going on?” Judge Baltzell added.

Nolan Denounces Knapp

In reply, U. S. District Attorney Val Nolan said he agreed with the court when comparing evidence against Knapp with the others, “but that is not the test.” “Here we have a secretary of a corporation sitting there day in and day out. He inevitably knew that money was being taken from these people in a scheme to defraud. He knew the value of the assets and ne krew that worthless paper was beissued by. the company. The risks he took were not great, neither were his returns. “This company needed a secretary to do a dirty job. Mr. Knapp sat in on board of directors’ meetings where those things occurred.” The Government's final witness was C. H. Ronan of Chicago, a financial analyst for the Securities & Exchange Commission. :

Inspected Firms’ Books

He was sent to .the Henderson, Ky., offices of the four companies involved in the alleged scheme to inspect their books after the SEC had issued a stop order to prevent further issuance of bonds and certified notes. When he arrived he found many of the companies’ books missing he said. When he asked Knapp. for them, he testified, he was told that the books were not available and that ‘they were either “destroyed, mislaid or'lost.” Investors testifying for the Government have said that they were told by the company officers “the firms were a gold mine” and that by investing they would become financially independent. The aggregate amount of securities issued to the public by the four firms was $996,555, Mr. Ronan testified. The “net realization” on this amount, he stated, was $568,231. He also testified that one group of building and loan stocks secured from investors totaled $29,305. These were sold on the market for $8752, he said. $182,000 X.0oss Described This block of nates was recorded in the journail,- Mr. Ronan said, in one entry after the companies learned that he was coming to inspect the books. The jury also heard testimony that T. J. Kelly, Advance Paint Co. president, now dead, lost $182,000, which was nis or for which he was trustee, in the alleged scheme. This was the largest individual loss described during the trial. The testimony was given by John A. Royse, attorney, of 5349 Washington Blvd., trustee for the Kelly estate. Of the $182,000 Mr. Royse said, $122,000 belonged to Mr. Kelly, his wife and the paint company. The other $60,000 belonged to three local priests and a local woman, for all

: of whom Mr. Kelly was trustee, Mr.

Royse testified.

TEN LIVES ARE LOST IN BOAT COLLISION

BEAUFORT, N. C, Nov. 18 (U. P.).—Men were diving fn relays in the inland waterway today in

|search: of the bodies of 10 men

Dow W. Vorhies . . . in publié

office 27 years.

E. Wilson, Timothy P. Sexton, Ira P. Haymaker, Judge Dan V. White, Judge Henry O. Goett and John B. Brewer. Others are County Prosecutor David M. Lewis, Harry Barreit County Commissioners John 8S. Newhouse and William A, Brown, Judge Joseph T. Markey, Arthur A. County isurer, Frank E. in Dunn,

drowned when a fishing boat and a tug boat collided last night. One other man was missing and: was feared drowned. Two bodies hay been recovered. fishing boat Southland,

a in the waterway which parallels the coast, was rammed by

the tug, Escape, eight miles from|

here. It went down quickly and the victims. were trapped in her cabin. No one rboard the Escape was lost. The tug was towing an oil barge.

Both are owned by the Salvay|

Process Co. of New York and were bound for the plant of the Bum! tion ‘at Wilmington, Del. ithland s owned by

“Aided by Youth

Prof. R. A. Halliburton

The condition of Prof. R. A. Halliburton of Franklin College for whom 15 students volunteered J blood, was improved at the Methodist Hospital today. One of seven students whose blood was found to be of the right type took part in a transfusion. The other six are awaiting call if needed. The first call was issued when peritonitis developed after the 34-year-old economics teacher had undergone an appendectomy.

ELDER, WHALE QUIT 2% POSTS

Act Seems Designed to Take Heat Off McNutt in 1940 Campaign.

(Continued from Page One)

dues, and danced to a swing band until midnight. The new officers of the club were selected by a nominating committee headed by Hallie Myers, State Highway Department Safety Director.

Beattey Named Director

James Beattey Jr., head of the Motor Division of the State Public Service Commission, was elected to the Board of Directors, to succeed Mr. McHale. Other directors were re-elected. They were Alex Pursley, of Hartford City, close personal friend of Governor M. Clifford Townsend; T. A. Dicus, State Highway Commission Chairman, and Walter Foley, of Evansville. Mr. McHale and Mr. Elder apparently stepped out of the club’s official roster in a move to escape “heat” that Republican leaders have promised to put on Mr. McNutt if he is given the Democratic nomination for the Presidency next June. Mr. McNutt was criticized for his connections with the club in the U. S. Senate last July when his appointment as Federal Security Administrator was approved. The attack was led by Senator H. Styles Bridges (R. N. H.), who said he would investigate the club and present ‘his findings to the Senate|© after Jan. 1.

Revenues $150,000 Annually

The club was organized during the first year of Mr. McNutt’s regime as Governor of Indiana in 1933. The club’s revenues are estimated variously at between $150,000 and $200,000 annually. - The proceeds are used by the State Democratic Committee to pay campaign expenses. Democratic leaders repeatedly have defended the club on the ground that raising campaign funds from political job holders is better than soliciting funds from business and industrial leaders.

KIN CALLS CAPONE NEAR-MODEL CITIZEN

BALTIMORE, Md. Nov. 18 (U. P.).—Al Capone, who “put the finger” on hundreds of gangsters while he ruled the Chicago underworld, is the victim of legend and misunderstanding, his brother asserted today. John Capone told reporters that Al always was a near-model citizen —doesn’t drink nor gamble and smokes only an occasional cigar and pays his debts. That new description of Capone, whose gang ran the Chicago rackets during the prohibition era with submachine guns, was given as the exconvict settled down to routine hospital life to undergo treatment for paresis, a softening of the brain resulting from syphilis.

KUHN’S WIFE CALLED AS DEFENSE WITNESS

NEW YORK, Nov. 18—(U.P.)— Defense attorneys, today called Mrs. Fritz Kuhn, wife of the GermanAmerican bundesfuehrer, as a witness at his grand larceny trial to offset assertions that he had had “more than a casual interest” in two other women. She will testify Monday when Kuhn's trial on charges of stealing $1891 from the bund’s treasury re= sumes in General Sessions Court. Mrs. Kuhn was expected to testify that he is a good husband.

|ADMINISTRAT FACING ANOTHEF BIG 1940 DEFICIT

Observers Predict F. D. R

“Will Fight General Tax Increase. |

By LUDWELL DENNY Times Special Writer ; " WASHINGTON, Nov. 18.—A larg Federal deficit next year, with general tax.increase to offset hug new defense expenditures, is pres dicted here. This prediction is based on: 1. The statement of Acting

: Treasury Secretary John W. Hanes :

denying that Chairman Marriner S. Eccles of the Federal Reserve Board, in favoring higher income and excess profit taxes, spoke for the Administration. 2. The Presi-

dent's 1 on g

record against general Incoms % tax increase and Denny reform, and his Me. ny 7 postponement of war and excess profit taxes at the special session. 3. A’ campaign year is not the time many Congressmen would pick to raise taxes, especiglly in the lower and middle brackets. 4, The U. S. Chamber of Com~ merce demands tax reduction. If the President opposes a general tax increase as predicted, he is expected to sugar-coat the deficit by asserting that increased pros= perity will produce added revenues from existing rates and virtually balance the budget. He has said, that a 90-billion-dollar. national in come would produce about 101% billion-dollar Treasury receipts which would clear most of the anticipated forty-four-billion-dollar deficit. Economists Not So Hopeful But New Deal economists are not as hopeful as the President and Mr, Hanes that production next year will maintain present levels or pro~ duce a 1940 national jncome of 85 to 90. billions. ‘These economists predict a slight spring slump. ih The “anti-war bloc” and the lib= | eral group will force the fight in Congress for higher taxes and tax reform. In addition to the usual | incentives for the La Follette tax reform, they now want to preveht a war boom, and tc protect social service expenditures jeopardized by the large ‘defense deficit. There will be a Van Zandt-Nye bill for heavy excise taxes on war goods, and a Voorhis bill taxing war and excess profits 80 per cent. The 1918 war and excess profits taxes produced a two-and-a-half-billion-dollar revenue, but presumably in 1940 would produce much less. The War and Navy Departs ments oppose such taxes. Byrnes Proposes Cuts To offset the increased defense deficit, Senator James F. Byrnes (D, S. C), who is often a White House spokesman, proposes cuts in other expenditures. The President has just increased current defense expenditures more than a quarter of a billion to a total of almost two billions—in addition to his request for a new one-and-one-third-bils lion-dollar - naval building authorization. : Any large cut would have to come out of the two-billion-dollar relief, one-billion-dollar social security, or and-and-one-fourth - billion « dollar agriculture appropriations—it could not come out of the -one-billion-dollar interest charge. But Congress ° has just cut one million workers off WPA, and there are still nine and one-half million unemployed. Old age pensions probably will go up instead of down. Farmers are not cut ina campaign year. Hence the prediction that total expenditures and deficits will rise, unless Congress unexpectedly forces the President to accept tax increases.

BOY SHOOTS BANDIT WHO KILLED FATHER

CHICAGO, Nov. 18 (U. P.) —Vito Addante, 32, owner of a small grocery, was a hero in the eyes of his son, Pasquale, 13. He had been held . Oe Lr a ta Lo put up a fight. Last February he killed one bandit. Pasquale was alone in the store last night when a bandit entered | and demanded money. ‘We haven’t got much,” Pasiale. protested. “You can’t take it.” The bandit, keeping his gun aimed at the boy, walked behind the counter and took $10 from the till, The elder Addante, who was in a rear room, came out as the bandit | started to leave. vy He fired one of the nine bullets in his gun. The bandit turned and fired. The bullet struck \Addante near: the heart and he slumped to ‘the floor, dead. : As he fell, Pasquale, a seventh grade pupil, crawled to his father’s body, picked up his gun, and began firing, Three times he pressed the trigger. Three bullets found their mark

but the bandit stumbled away.

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v