davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1933-06-07
Probers Ask Right to Sift
Morgan Income Taxes

drafted by a special sub-commlt-
tee. It will be introduced in the
Senate during the afternoon and
it's immediate adoption asked.
Court Battle Expected
The resolution would empower
the committee to investigate a
series of stock transactions by
Thomas S. Lamont which enabled
him to reduce his 1881 income
taxes. It likewise would authorize
it to investigate similar transac-
tions by any other partner in the
Morgan firm.
The proposed tax inquiry un-
doubtedly will result in a court
battle.
John w. Davis, chief of the
Morgan counsel, intimated he
would not allow his clients to
answer any questions touching in
come taxes even after the Senate
orders such a specific inquiry.
Davis took the position that the
Senate itself does not have the
power to investigate income taxes.
He based this contention on the
fact CongresS-both House and
Senate-directed that income tax
returns be kept secret.
Sweeping Powers Asked
The proposed expansion of the
investigating committees powers
will be so sweeping as to include
all bankers and stock brokers, as
well as the Morgan partners. I'm
der the terms of the proposed
resolution, the committee could
investigate the income tax re-
turns of the partners in Kuhn,
Loeb & Co.; Dillon, Read & Co.,
or officers in the Chase National
or any other great bank.
The resolution specifically
would authorize an inquiry 'into
all transactions in reference to
the sale or other disposition of all
kinds of securities with a view ito
determining their effect on the
taxing power of the Federal Gov
ernment." It's prompt adoption
by the Senate seemed assured.
The Washington times., 1933-06-07
MERCURY AIMS
To BEAT 80

The mercury reached SO de-
grees early this afternoon, two
degrees higher than the hottest
temperature recorded yesterday,
and was still going up.
The Weather Bureau predicted
the temperature would go above
80, with little chance of relief in
sight. There is a slight chance
of thundershowers tonight, but
the prediction for tomorrow is
fair and warm.
Three persons were overcome.
Ernest Stephens, 1900 block
Pennsylvania Ave. S. E., collapsed
in a store, cutting his head on a
showcase as he fell He was
treated at Emergency Hospital.
Kathryn. zanellott, S, of the
400 block K St. N. W., was
treated at Casualty Hospital.
Charles Keyes, steamboat fire
man, was taken to Providence
Hospital.
The Middle West saw all June
heat records broken.
Lincoln, Neb., had 107 degrees,
while Omaha and Concordia,
Kan, saw 1O6.
Six deaths was the toll of the
torrid wave. Two more fatalities
in st. Louis today swelled the
total to four, while one death was
reported in each Detroit and
Grand Rapids, Mich.
The Washington times., 1933-06-07
'enate Republicans Vote for Sales Tax
Log Of Round
Globe Flight
washington Time)
SATURDAY, JUNE 3


4::21 a. m.-Took off from
Floyd Bennett Field, N. Y.
11:30 a. m.-Sighted d over
Lewisport, Newfoundland.
1885 a. m.-Heard passing to
sea off Musgrave Harbor, N. F.
11:5O a. m.-Sig h t e d over
Wadham Island, off Newfound-
land.
SUNDAY, JUNE 4
$40 a. m.-Landed at Kra-
gero Island, Norway.
TOO p. m.-Took off for Oslo.
1920 p. m.-Landed at Lille
strom airport, Oslo.
MONDAY, JUNE 5
1910 a. m.-Took off for
Moscow.
7:45 a. m.-Landed at Moscow
airport.
Sis p. m.-Took off from
Moscow for OmSk. 4
TUESDAY, June 6
5:35 a. m.-Landed at Omsk,
Siberia.
$40 p. m.-Took off from
Omsk for Chita.
$40 p. m.-Sighted d over
Novosibirsk.
WEDNESDAY, JUNE Z
1905 a. m.-Reported south
of Nishniudinsk, 1000 miles east
of Omsk.
The Washington times., 1933-06-07
DOLLAR SHOWS
SHARP DROP

NEW YORK, June 7 G.N.sJ.
The dollar slumped to a new
low against foreign currencies in
the local exchange market today.
Sterling ran up a new high
for the year and the best levels
since September, 1881. At $4.06A
it represented a gain of "a
cents. The European gold cur
rencies also moved sharply
higher.
Francs gained 1 point at All,
Swiss francs S points at 23.10,
guilders 4 points at 48.08, while
belgas lost / point at 1856.
The Scandinavian exchanges
rallied in sympathy with the
pound, as did the Canadian dol
lar, which gained three-siXteenths
of a cent at 80 1916 cents.
German marks were under
pressure, losing II points at
27.78, but pesetaS and lire were
strong and moderately higher.
The Washington times., 1933-06-07
Germany Declares
Embargo on MOneu

BERLIN, June 7 G.N.SD.
Hjlmar Schacht, president of the
Reichsbank. announced today
that he will declare a 100 per
cent moratorium tomorrow on all
forms of payments abroad, ef-
fective Friday morning. A mora
torium proclamation has been
generally expected since Schacht
told the foreign bankers trans
fer conference that Germany
would be unable to meet her
private obligations because she
lacked gold and foreign exchange.
The Washington times., 1933-06-07
AWAITS
ARRIVAL Of
MATTERN
Globe GirdIer Sighted 1000
Miles East of 0msk;
Making Good Time

News of James Mattern's
safe arrival at Chita, LOO miles
east of Omsk, Siberia, was
eagerly awaited today.
The round the-wOrld airman
should have reached his Objec-
tive by 7:1O a. m. today wash
ingtOn time). Matte N had eSti-
mated the flight would take
IA hours.
Owing to slow cOmmunica-
tiOn facilities in Siberia, it may
be hours before news Of Mat
terms arrival reaches the out
side world. E<
MOSCOW, June 7 (T.NS.),
Flying fast and high, Jimmy
Mattern's round-the- worl d
plane, Century of Progress,
was reported sighted south of
the town of Nishniudinsk,
1000 miles east of Omsk, at
:O5 a. m. today (Washing-
ton Time).
Mattern apparently was making
good time, having covered the
1000 miles in 6 hours and SIS
minutes after leaving Omsk.
Nishniudinsk is approximately
TOO miles west of Chita, Mattern's
objective.
OMSK, Siberia, June 7 G.N.S)
Bucking Siberian headwinds, Jim
my Mattern fought his way East
toward Chita this afternoon in
the fifth stage of his round-the-
world flight.
Making Good Time
High in the air, the intrepid
Texas aviator was sighted over
Novosibirsk exactly three hours
after he took off from Omsk in
the Century of Progress, at $40
a. m. Omsk time (5:10 p. M,
Tuesday, Washington time).
Since Novosibirsk is about 400
miles east of Omsk the flier ap-
peared to have averaged only
about 13O miles an hour.
Aviation officials here estimated
that with luck Mattern should
reach Chita about II hours after
CONTINUED on Page 2, Col. p
The Washington times., 1933-06-07
REED To PUSH
FOR ACTION
ONFLOOR
27 Legislators Back Proposal
as Wagner Warns Relief
Must Be Speeded

A 11a per cent general
manufacturers sales tax, to
raise $22O,OOO,OOO annually in
revenue for the $3,30O,O0O, 900
public works program in the
industrial recovery bill, was
agreed upon today at a con-
ference of q Senate Republi-
cans.
The sales levy, with food, cloth
ing and medicine exempted, will
be urged by Senator Reed RO of
Pennsylvania as . substitute for
increased corporation and gaso-
line taxes, approved by the Senate
Finance Committee.
The conference went on record
against the licensing provisions in
the bill.
Warning by Wagner
A warning to industry that the
depression "still RACES" was voiced
by Senator Wagner CD Of New
York as the Administrators fight
for passage of the industrial con-
troll program was pushed with
fierce vigor.
Wagner declared that only by
drastic legislation to bring about
early employment OF 100000
idle men and women can the ma
tion be saved from collapse "too
alarming to contemplate"
Described by veteran Senators
as "the most important single
piece of legislation ever consid-
cred by Congress-" the bill was
involved in three major contro-
yersies, with others brewing.
Vital Points
The three storm centers we're:
/. How to raise the $220,000,-
900 annual revenue needed to
carry out the great public works
program.
2. Whether to grant the
President power to license" in
dustrial and business establish
ments-a power sought only as
a club, for use in rare in
stances against recalcitrant
members of trade group.
8. Whether to grant industry,
in return for sweeping conces-
sions to labor and the public,
temporary exemption from the
Federal antitrust laws.
Senator Walsh CD of Massa-
chusetts completed the draft of a
sales tax amendment to be Of
fered as substitute for the 1882
special taxes, which would be con-
tinued for another year under the
bill.
The Washington times., 1933-06-07
Senate Votes Beer
LegaL in Oklahoma

A bill legalizing 80 per cent
beer in Oklahoma when and if
the same is legalized by ma
jority vote Of the people Of Okla
homa by act Of the State legis.
lature." was approved today by
the Sentae. The bill would re-
peal an Oklahoma bone-dry act
passed by Congress when Okla
homa was a territorq. The house
must pass on the senate'S changes
in the bill.
The Washington times., 1933-06-07
B D D N CARRIES
STOCKS HIGH

NEW YORK, June 7 Q.N.S)
The bulls sent the stock market
whirling upward in tremendous
dealings today as the boom was
resumed in the face of the bad
news of the Chicago, Rock Island
& Pacific Railway bankruptcy.
Strength was apparent from
the opening and the Rock Island
development, which came about
noon, affected the rails tempo.
rarily, but was ignored by the
rest Of the list.
The market was a rotating af-
fair all day. The early dealings
saw a new uprush in the wire
and steel shares. This was fol
lowed by a whirl in the coppers
in furious dealings. Later Gen
eral Electric, Westinghouse and
the motors we're pushed to the
fore to keep the boom pace from
s1ackening.
BulIish sentiment was famed to
new heights after yesterdays re-
action by fresh gains in the busi-
ness barometers of steel and power
production and railroad traffic,
Added to this was the expectation
that the industrial control bill.
would pass the Senate later in
the day.
A rally in commodities, led by
grains, developed after early slug
gishness and this helped the bulls
campaign. Another factor was
the revival of initiation sentiment
by the slump in the dollar to new
lows. The bond market was
strong while bank shares made
a belated response to the boom
spirit by staging a brisk advance
The Washington times., 1933-06-07
j, 8. To OPPOSE
STERILIZATION

A possibility that the United
States may oppose immediate
stabilization of world currencies
at the economic conference in
London was made known in high
official circles today.
This Government has come to
the conclusion that the time may
not be ripe for even temporary
stabilization of currencies.
This view is shared by Great
Britain, but France is urging
immediate stabilization of the
dollar and pound in relation to
the franc on the ground that the
French government cannot adhere
TO any trade agreements without
reservations while the British and
American currencies are subject
to uncontrolled fluctuation.
Additional news of economic
Uarley on page A.
The Washington times., 1933-06-07
USED WIFE:
|. IN DEALS
PROBERS
LEARN
Income Levy Dodge Revealed
as Morgan Firm Works
to Throttle Quiz

Copyright, 1888, by International
News Service
Unauthorized reproduction in whole @
part absolutely prOhibited).
The vast power of the great
international banking firm Of
J. P. Morgan and Company
was exerted today to prevent
a Senate inquiry into a quiet
little series Of stock transac-
tions between Thomas S. La
n1ent, a Junior partner, and
. his socially prominent wife
which enabled him to reduce
his Federal income tax in
1881.
The Morgan firm threatened Q
legal fight to the United States
Supreme Court to prevent Senate
publication of the transactions.
In the face of this terrific oppo-
sition, International News Service
learned of the deals.
Wife Borrowed Money
The information, gathered by
special investigators, revealed
that young Lamont sold securt
ties on December 30, 1881, taking
a small loss.
On that day and the next fol-
lowing day, his wife purchased
all that he sold-some directly
and some through a broker.
Mrs. Lamont paid for the
securities with money borrowed
from her husband, although she
had an independent estate.
She gave Lamont an unse-
cured note to guarantee repay
ment of the loan.
Four months later, young
Lamont bought the stocks back
from her by the simple expe-
dent of tearing up the note.
This occurred in the second
week of April, 1882.
The deals saved the Lannon'S
about $1,000 in Federal taxes.
These were the transactions
which the great house of Morgan
sought to shroud in secrecy.
They were transactions which
John w. Davis, Democratic nomi-
nee for President in 1924 and
now chief counsel to the house
of Morgan, described as "per-
fectly legal"
Defends Transactions
Davis defended the transactions
at a secret session of the Senate
Banking and Currency Committee
and in conversations with indi-
vidual Senators. He declared the
sales by Lamont to his wife were
bonafide and made in good faith.
He insisted Mrs. Lamont was
perfectly able to buy the secur1-
ties, because she had an inde-
pendent estate of her own, but
followed her husbands advice in
borrowing the money and giving
her note.
Davis explained Mrs. Lamont
finally grew tired of owning the
stocks, because their market value
failed to increase. He said she
also disliked having a note out
standing against her. Finally, he
(Continued on Page 2, Col. y
The Washington times., 1933-06-07

One of the secrets of 'Big
Business" to legally escape Fed
eral taxation was disclosed to-
day by the Senate Banking
Committees investigation of
the railroad holdings of the J.
p. Morgan & Co.
The Van Sweringen brothers,
whose 18,OOO.mile railroad en-
pire was finally acquired by J.
p. Morgan & Co., created a
chain of holding companies to
merge and consolidate their rail
holdings.
In each instance stock was ex-
changed for stock, SO that no
cash was passed, o. P. Van
Sweringen admitted after per-
SiStent questioning.
This method cost the Govern
ment huge sums in taxes be-
cause no profits were recorded
on the books of any company,
even though the value of the
holdings increased enormously.
Authority to make a sweeping
inquiry into the income tax re-
turns of all partners in the firm
of j. P. Morgan and Co., will be
asked of the Senate today by
the Senate Banking and Currency
Committee.
A resolution giving the com
mittee special powers to probe
the effect of individual stocE
transactions on Federal taxes was
The Washington times., 1933-06-07
CAN 7 PAY, HINT
Of DEBTORS

Great Britain and several other
debtor nations have unofficially
indicated to this government that
they do not see how they will be
able to meet the June Is pay.
ments, it was learned on high
authority today.
However, it was emphasized,
no formal request for a postpone
ment or a discussion of the debt
situation has been received from
any of the debtor nations.
Instead, in the case of Great
Britain, this Government has
been asked to state it's position
on the June IS payments in the
light of the indication that Brit
ain does not see how it can
make the payment.
The Washington times., 1933-06-07
DeLGUQre Votes
Beer, Three to One

WILMINGTON, Del, June 7
G.N.SO Beer can now flow free
ly in the whole State of Della
ware after all communities out
side of the city of Wilmington
voted three to one to over
throw the local option dry laws
and permit the licensed sale of
beer, wine and liquor. Whining
ton was the only wet spot in
the State previous to yesterdays
election. Repeal of the Eight
eenth Amendment was voted a
few weeks ago.
The Washington times., 1933-06-07
Signatures Near
For 4-POHer Pact

PARIS, June 7 G.N.SO The
four-power pact for control of
European peace proposed by Pre-
mier Mussolini of Italy has been
brought to the stage where all in
terested nations can now attach
their signatures, International
News Service was informed on
high authority today. Modifica-
tions have been made to appease
French objections.
The Washington times., 1933-06-07
Rock Island Votes
To Take BQnkruptcu

NEW YORK, June Z Q.N.SD.
The $551,O00,O0O Chicago, Rock
Island and Pacific Railway today
went into bankruptcy under the
new Federal law for the reor-
ganization of it's top-heavy capi-
tai structure. This action was
taken at a meeting of the board
of directors here. The petition.
it was stated, would be filed
later in the day in Chicago, the
roads main offices.
The Washington times., 1933-06-07
EdIUinG Booth, W,
Unconscious O. Week

HOLLYWOOD, CAL. June 7
G.N.SD.-Edwina Booth, motion
picture actress, stricken by an
obscure tropical ailment, is in
a more dangerous condition than
at any time during the past 13
months, her mother, Mrs. j. L.
Woodruff, revealed today. Miss
Booth has been unconscious for
a week. Miss Booths illness
was caused by over-exposure to
the sun during the filming of
a picture in Africa.
The Washington times., 1933-06-07
Warmers Plan Work
On so Feature Films

HOLLYWOOD, Cal, June 7
GN.SD Warner Brothers
First National motion picture
studios hummed with activity to-
day after a shutdown of several
months. Hundreds returned to
work as so features, the largest
production budget in eight years,
were announced as the goal for
the coming year.
The Washington times., 1933-06-07
GasOLine-ELectric Bill
Back in Conference

The gasoline and electrical
energy tax bill was back in the
conference stage today, following
Senate rejection Of a conference
report which failed to exempt
municipally-owned light plants
from the 8 per cent tax on eleco
trical output.
The Washington times., 1933-06-07
Railroad Bill Put
In COnfereeS' Hands

The Administrations railroad
coordinator bill was sent to con-
ference today by the House for
agreement upon differences be.
tween the House and Senate.
The Washington times., 1933-06-07

Detailed testimony in Nor
gan banking hearing on
Page s.
Edwin C.. Hills story of
hearing on Page 2.
The Washington times., 1933-06-07

additional news of economic
Narley on page AZ
The Washington times., 1933-06-07
MATTERN BELIEVED NEAR CH|TA ON FLIGHT
THE WEATHER

Generally fair and continued tonight
and Thursday; gentle to moderate southwest
winds.
Temperature yesterday-Highest, 81; lowest,
TO- O932-Highest, 80; lowest, 69.)
Humidity yesterday-Hghest 50; lowest, 54.
The Waterbury Democrat., 1933-05-02

ris everywhere. the children could not be found.
 Two other deaths occurred near Naples Mill. The victims were John Lillie, Jr., 55, and his mother, 86. Their home was demolished and Lilies wife and son were critically injured. Fourteen persons were seriously hurt in Fulton County and 50 others received minor hurts. Communication lines were disrupted in the southeastern part of the county.
 At Peroria dozens of structures
 were damaged and one building was glown into the Illinois river. Wheaton reported hige hail. stones. Windows and autom obile tops were smashed. La Grange and
 Joliet reported damage, and in out lying sections of Chicago slight damage was caused. Canton, H., May 2-UP)-A school teacher was credited today with saving the lives of a score of
 her young pupils when tornado swept through Canton and Fulton County.
 The teacher became alarmed by the storm clouds and quietly
 marched the children to the base ment of the small school building. When the storm struck a few min-
 utes later it lifted the building from its foundation and hurled it several hundred feet. Teh children and the teacher were left uninjured.
The Waterbury Democrat., 1933-05-02
Attorney Guilfoile
 Is Reinstated
(Continued erom Page n

prematurely brought.
 Attorney Francis P. Guilfoile and Attorney William K. Lawlor took the witness stand to testify as to the conduct of Attorney Guil- foile during the last several months here. Attorney Lawrence L. Lewis represented the state and Attorney Patrick Healey represented the county grievance committee at to- days hearing.
 No objections to the granting of the petition were offered and in fact Attorney Healey recommended that the petition be granted. At- torney Thoms presented a number of letters to Judge Booth in which the character and conduct of At torney Guilfoile were lauded. The letters were from the clergy. prom inent citizens and court officials.
 After Attorney Francis P. Guil- foile and Lawlor had testified. telle ing of Attorney Joseph Guilfoile's diligent efforts while working in their offices during the past several months, and when he heard no ob- iections, Judge Booth said that the court has to judge the feelings of the Bar. Since the opinion seems to be unanimous for reinstatement. Judge Booth said, he declared Att torney Quilfoile reinstated.
 In presenting his summation Of the case, Attorney Thoms said he was speaking both personally as representing the petitioner and also as the president of the Waterbury Bas Association. He urgently re- ouested the court to grant the peti- tion.
 Letters presented to the court were from: Judges: Francis T. Reeves, John F. McDonough, Den- his J. Slavin, Edward Mascolo, Edward J. Finn. theodore V. Mey- CT. and Harry J. Beardsley of Wa
The Waterbury Democrat., 1933-05-02
DIVORCE LAWS
 OF NEVADA ARE
 IN MUCH DANGER
Banking Interests in That State Are Practically Nothing-RenO Blamed and Fight Opens

Reno, Nev, May = (U.P.) = Nevada has completed six full months without normal banking facilities. Six months ago last night, Governor Merely Griswold declared the nations first bank. holiday to protect the chain of twelve Wingfield banks. Since then only one Reno bank, and banks in Lasvegas and Ely, have re-opened.
 Re-opening of the Wingfield banks through preferred stock purchase by the Reconstruction Finance Corporation, was prevent ed by protests of Reno depositors' groups which contend the institu- tions were loosely managed. Tn re- prisal, business interests elsewhere in the state declared boycott against Reno merchants and start ed a statewide campaign to re- peal the easy divorce laws which give Reno it's greatest industry.
The Waterbury Democrat., 1933-05-02

expand markets for American goods there. It must be remem- bered that American investments there are larger than those in any other country except Canada. They were valued at more than billion dollars before the depression.
 Ambassador Welles will try to operate more suavely and diplo- matically than did Gen Enoch Crowder in 1922 when, as special presidential envoy, he forced dras- tic reforms on the Cuban congress. But his mission will be one-to use state department jargon-of preventive intervention" Pre- sumably he will undertake to ob- tain a revised electoral code as we'll as to get rid of Machado. The threat of withdrawal of recogni- ton and of economic pressure should be enough to bring Mach ado to terms without any sugges- tion of armed intervention.
 Elections Juggled
 In 1919 Cuba, under a code drafted by Crowder, had a rather good election. but Cuban politf- clans have whittled at the code
The Waterbury Democrat., 1933-05-02
Y. M. C. A. NOTES
ball game goes on early at about Q.1E ..

ball game goes on early at about
 9:15.
 James Lawlor. president of { he
 Crosby Hi-Y club, will lead the
 grand march at 10 o'clock. Other
 Hi-Y officers who will follow him
 in the grand march are Vice. -prksi- dent Nicholas Belurry. secretary, Bradley Barlow. treasurer, Farrel Martin and the following members |of the executive: George Breithaupt, Thomas Skipp. Paul Delaney. James Doherty. r Mayor Leonard Johnson of the Y. M. c. A. Dormitory Village announces that Allen H. Board man has accepted an invitation to be the guest of the dorm men at the regular weekly dinner tonight at 6:15. MT Boardman has a very interesting collection of moving pictures which he took personally in the West Indies Islands. Dinner will be served at 6:15 and the moving pictures will start at e:45.
 Ray Walker. village bugler, will
 sound the first chow call at 6:10.