davidaulloa/AmericanStories huggingface dataset:
Evening star., 1938-01-03
AXRATESARESET
F0RSMALLF|RMS
Committee Agrees on 1212
to Is Pct. Up'to $4,000
Incomes.
BY TIE Associated Press.

A House tax subcommittee agreed
tentatively today to place on corpora
tons with incomes of $25,000 or less,
tax rates of 1912 per cent on the first
$4,000 of income. IA per cent on the
next $4,000 and 16 per cent on the
remaining $4,000
Chairman Vinson said members had
decided also that those rates should
apply to all corporations in that in
come category, including those in
bankruptcy or receivership and in.
solvent firms.
If the latter have income of more
than s25,000, he said, the subcom-
mittee would place on them . fat
Is per cent tax.
Mutual investment companies, in
stead OF being given separate tax
treatment As under present law, he
asserted. would be taxed Ike other
corporations.
Previously the subcommittee had
approved tentatively. for $25, 900 cor
porations. rates Of 1912 per cent on
the first $4,000 of earnings and IA per
cent on all between IS, 900 and $25, 900.
The proposed revision OF the present
Nndistributed profits tax, Mr.. Vinson
said, will contain a provision for a
one-year carryover of operating losses
which corporations could use as
credit against their undistributed
profits. In determining operating
loss, he said, tax exempt interest would
be included in gross income.
Corporations with income up to
s25,000 would pay no undistributed
profits tax. Bigger firms would pay
under a previous agreement, rates of
16 to 20 per cent, graduated accord
ing to the percentages OF income dis
tributed in dividends to stockholders.
Corporations in an intermediate in
come class range would pay taxes
higher than the $25. 900 firms, but less
than the is to 20 per cent rates on
the larger companies.
Evening star., 1938-01-03
ROOSEVELT'S MESSAGE
ASKS BIGGER DEFENSE
AND HELP OF BUSINESS
Text of Roosevelt Message
Expresses Thankfulness on Nations Remaining at
Peace-Declares Legislative Program Is
Necessary to alleviate Suffering.

because of their seriousness, could
we'll have engendered war. The
people of the United States and
the Government of the United
States have shown capacity for re-
straint and a civilized approach to
the purposes Of peace. while at the
same time We maintain the in
tegrity inherent in the sovereignty
of 10000, 900 people, lest we weaken
or destroy our influence for peace
and jeopardize the sovereignty
itself.
1t is our traditional policy to live
at peace with other nations More
than that, We have been among
the leaders in advocating the use
Of pacific methods OF discussion
and conciliation in international
differences We have striven for
the reduction of military forces.
But in a world of high tension
fTonfinnoT ~, Dooo A2A
Evening star., 1938-01-03

The text Of President Roosevelt's
annual message, as read today before
a joint session Of the Senate and
House, follows:
To the Congress of the United
States:
In addressing the Congress on
the state of the Union present facts
and future hazards demand that I
speak clearly and earnestly of the
causes which underlie events of
profound concern to all.
In spite of the determination of
this Nation for peace, it has become
clear that acts and policies of
nations in other parts of the world
have far-reaching effects not only
upon their immediate neighbors but
also on us.
I am thankful that can tell you
that our Nation is at peace. It
has been kept at peace despite
provocations which in other days,
Evening star., 1938-01-03
DATA0N NJOBLESS
STUD|EDBYCH|EFS
Census to Form Basis of
Decisions on Future of
Federal Relief.
(Table sho,Ding jobless by States Is
on page Az
By the Associated Press.


Administration leaders surveyed the
unemployment problem anew today in
the light of census figures that between
7,822,912 and 10,870.000 Americans
were out of work in November.
John D. Biggers, Ohio glass manu-
facturer who supervised voluntary
registration of the unemployed, said
the number out Of work had increased
since the count was made.
The District of Columbia reported
37,600. unemployed and wanting work
divided: 1908 men and 1882
women. On Federal emergency works,
the total was 9,765, divided $3.50 men
and 1905 women
Maryland reported 41518 unem-
ployed men and 16,67O women, and
1927 men and LILO women on
emergency work.
In Virginia, 53,373 men and Bills
women reported they were out of work
while the emergency workers in the
respective categories were 20,329 and
1888.
The Biggers census and surveys
made by the Works Progress Admin
istration and other agencies will form
the basis of decisions on the future
of Federal relief.
Mr.. Biggers said = ,822,912 persons,
returning cards distributed by post
men, signified they we're out of work
and wanting employment. A house.
toulouse canvas of certain test"
areas showed this report to be 70
per cent complete, and thus the
higher figure of 100000 persons
actually unemployed was projected.
State totals showed, in general, that
unemployment was less in the Middle
West than elsewhere.
Although census officials did not
attempt an immediate analysis Of the
figures, one said informally that &C.
currence of larger numbers Of jobless
in the South was affected by large
percentage Of unemployment among
the colored.
MANY people consider themselves
unemployed who are financially not
compelled to work." said Mr.. Biggers.
Irrespective of their need. when they
seek employment, they enter the la
Dor market and compete with others
who have jobs or vitality need jobs
They are therefore q factor in the
unemployment problem though they
may never seek relief"
In giving out his results, Mr.. Big
gers said. "The present report reflects
the decline during the earlier stages
of the current business recession, but
not the subsequent trend"
Some Government economists said
unemployment probably would be
most pronounced in January and Feb
ruary because Of seasonal slack
period. but that jobs might increase
in the spring.
Mr. Biggers said the census should
prove worthwhile, mot only because
1t provides new facts and figures
,lsse JoBLNDA, Page A-6)
Evening star., 1938-01-03
Numbers Racket Is Diuerting
100000 a Day From Legal
Sources of Trade in Capital
mo. 2 of a Series.)
By CARTER BROOKE JONES.

yHEN Richard Roe, who works Government depart
wv ment and is exemplary citizen wagers quarter
number GIL, taking remoe-a 1OO0-to-1-chance on
winning $3.50 he's indulgng relatively harmless
gambling but he's also helping support racket which,
estimated dverts 100000 day from Washngons legitimate
sources of trade into a criminal racket.
This The Stars washngon
gambling racket
which they have made
actual disclosures of
Na
and blamed by the authorities spread bandy
housbreaking
In aty toang
who settle their frequent disputes
Evening star., 1938-01-03
RY ]. A. FOX.

Charging that hundreds Of millions
pended by Government agencies with
out proper check on the transaction
and that accounting laws together with
regulations promulgated by President
Roosevelt are being widely f1outed.
Acting Controller General Richard
N. Elliott today called on Congress for
corrective legislation that would go so
far as to withhold appropriations Of
offending establishments.
The indictment of the acting con-
troller general, singing out number
of groups, including the District gov
ernment, as being guilty OF lax ac-
counting methods, was included in his
annual report in which he took ex-
ception also to the administration
sponsored reorganization bill to dis
member the General Accounting Office
and vest its major powers in the
Treasury. Mr.. Elliott decried con-
tinued efforts ito secure for the
spending agencies legislation making
further surrender by the legislative
branch of its right and authority to
direct by law the uses of public funds"
Charges Lack of Cooperation.
The Treasury itself was accused
by Mr.. Elliott of failing to cooperate
to the end that the fiscal operations
Of the Government might be safe
guarded adequately. He also named
the War, Navy and Justice Depart
ments and a number of Federal
organized corporations as getting out
of line. He was particularly critical
Of the Home Owners Loan Corp,
whose expenditure of approximately
$4,000 for medical car. plan he
recently declared illegal, but this
activity was not mentioned In the
report.
The unusually blunt language Of the
General Accounting Office head. who
has occupied that post since Controller
General j. R. McCarl ended his Is
year term a year and a half ago.
coupled with the disclosures as TO the
attitude being displayed toward the
Office in many quarters, are expected
to furnish new ammunition for op-
ponents of the accounting split-up
when Congress resumes consideration
of the reorganization plan.
Six Agencies Specified.
Mr.. Elliott specified six agencies In
charging that millions are being
handled without proper accounting
and audit" They are Electric Home
and Farm Authority, Federal Deposit
Insurance Corp, Federal Farm Mort
gage Corp, Federal Savings and Loan
Insurance Corp. Home Owners Loan
Corp. and the Virgin Islands Co.
These, he said, hold themselves
above the general law requiring all
Federal receipts to be covered into the
Treasury to be reallocated to their re-
spective functions. To the contrary,
Evening star., 1938-01-03
Poverty Amid
Wealth

The strange story of two aged
sisters who lived on charity in
scene of great squalor while pos
sessing fortune was brought to
light when the two were taken to
Gallinger Hospital.
Thousands Of dollars, carefully
catalogued, were found in neatly
maintained envelopes reposing in
. bureau drawer.
The story and pictures Of the
pair will be found on Page B-l
in today's Evening Star.
Evening star., 1938-01-03
By G. GOULD LINCOLN.

In an address of absorbing interest
President Roosevelt today told Con-
gress and the world this Nation must
prepare to defend itself.
Picturing a world Of high tension
and disorder" where treaty obliga-
tions are disregarded, the President
said
We must keep ourselves adequately
strong in self-defense.
He proclaimed again his faith in
democratic forms of government and
declared them the hope of the future
They will, he said. be restored in those
nations which today know them not u
Asks Business Cooperation.
To meet the business recession and
economic and social conditions in the
United States the President proposed
Government cooperation with busi-
ness, provided business will abandon
practices which do not belong to this
day and age, and adopt price and pro-
duction policies appropriate to the
times"
While declaring that the great mass
OF business men and bankers are sound,
the President attacked a minority,
whom he charged with engaging in
practices harmful to society He
named no names. He denied this
criticism was an attack-as charged
by enemies Of the administration
upon all business and capital.
The President laid down the propo-
sition that I'VE cannot conduct a ma
tional government after the practice
of 1887, or 1887 or 1897 for the obvious
reasons that human needs and human
desires are infinitely greater, infinitely
more difficult to meet than in any pre-
Vious period in the life OF our Re-
public"
In 1897, the Constitution was written
and washington became President two
years later. Andrew Jackson was con-
cluding his term of office in 1897 and
his chosen successor, Martin Van Buren
was taking over, and in 1887 Grover
~ASNSAo1AA "oS 31C0lNCllU.
Attacks Monopoly.
The President, attacking monopoly
and monopolistic tendencies in this
country, said:
Capital is essential; reasonable
earnings on capital are essential, but
misuse of the powers of capital or
selfish suspension of the employment
OF capital must end, or the capital
istic system will destroy itself through
its own abuses"
Intending apparently to clear up the
mass of criticism that has arisen since
Assistant Attorney General Robert H.
jackson and Secretary of Interior
Harold L. Ickes delivered their attacks
upon monopoly and concentrated
wealth as the cause of the business
recession, the President told the Con-
gress:
The overwhelming majority of
business men and bankers intend to
be good citizens. Only a small mi
nority have displayed poor citizenship
Dy engaging in practices which are
dishonest or definitely harmful to
society.
This statement is straightforward
and true. No person in any response
BILE place in the Government of the
United States today has ever taken
any position contrary to it,
Presses Legislative Program.
The Chief Executive drove forward
earnestly for the enactment of his
major legislative recommendations to
Congress-the wages and hours bill
for labor and the crop control bill fol
the farmers.
Because of the business recession
and a falling OF Of revenue, and be-
cause OF the probable need Of relief
appropriations, the President frankly
told Congress that the budget he is to
/C.> n@~CI,ryr1 ~ r.-. ?
Evening star., 1938-01-03
Some of the copies of The

Some of the copies of The
Star are slit in the center
fold of the paper by a pat
ented process in printing.
The Star is experimenting
with this idea and if you,
the reader, received one of
these copies and find it is
helpful in turning the pages,
will you please write or tele-
phone your comments to
the Circulation Manager,
National 5O00.
Evening star., 1938-01-03
Southern Minister Dies.

JOHNSTOWN, Fla, Jan. 3 R.-
The Rev. E. A. Mcdowell, 70, pastor of
Baptist churches in South Carolina
for many years before he came to
Florida in 1921, died here Yesterday.
Evening star., 1938-01-03
ELLIOTT CHARGES
LAX ACCOUNTING
BY i. S. BUREAUS
Accuses Treasury Itself of
Failing to Help Safeguard
Operations.
CITES NEW DEAL UNITS
AS CHIEF OFFENDERS
Asks Congress for Legislation to
Withhold Funds From These
Establishments.
BACKGROUND

BACKGROUND
The office OF controller general
Uas established under the Budget
and Accounting Act of 1921, Uhich
set up the General Accounting
Office as congressional Watch-
dog oDer expenditures. As q re-
suit, there hare been recurrent
controversies with the 1dministra-
tiue agencies OF the Government
Legislation noU pending would de-
stroy the present form of the or
gdntsdtion.
Evening star., 1938-01-03
5000 D. c. JOBLESS|
APPLY FOR HELP.
Compensation Office Opened
Here and Staff Promises
Speedy Action.
BACKGROUND

BACKGROUND-
District of Columbia Unemploy-
n,ent Compensation Act Went into
effect January 1, 1896, ,Uhen en-
ployers began paying per cent
on employees ,pages. During 1887
employers paid per cent tar on
salaries. the money going into a
trust fund. From this fund. which
noD aggregates $4,000, 900, benefits
tDiH be paid eligible WorkerS uho
lose jobs. Payments also began in
21 States ,Uith the neW year.
Evening star., 1938-01-03
Retired Manufacturer Dies.

PHILADELPHIA, Jan. 3 LR.-Harry
Weller, 81, retired textile manu-
facturer, died last night at his hotel
apartment. He was . native Of Gin.
cinnati,
Evening star., 1938-01-03


HENDAYE, Franco-Spanish From
tier, Jan. 3-The bodies of several
thousand Spanish government soldiers
were reported by insurgents today to
have been gathered from snowdrifted
battlef1elds around Teruel.
The struggle for the strategically To-
Gated provincial capital continued in
below freezing weather as commu-
niques from each side claimed posses
sion Of the city.
Salamanca dispatches said the in
surgent left flank had wrested posi-
tions from the government north OF
Teruel. Those Notifications had been
held by the government more than
year.
Attack Rebel Right Flank.
Government troops, in white coats to
conceal themselves against the wintry
landscape. attacked the insurgent
right flank preceded by waves of tanks,
but the insurgents asserted they were
beaten back.
Fighting knee-deep in snow tho in
surgents captured Villastar, about S
miles south and slightly west of Teruel,
Salamanca communique said. Gov
ernment reinforcements were power
less to halt the attack, according to
these advices.
1t was extremely difficult to learn
the exact situation around Teruel,
due to sharply conflicting reports
issued by the opposing forces. The
government fatty mntradicted in
surgent claims, saying all attacks
launched by Gen. Francisco Frances
insurgent forces were repulsed.
Despite this variance of -eports.
however, it was known that all or
part of Teruel had been recaptured
| by the insurgents in their counter
| offensive, launched after the city was
taken by government forces in b sur
prise attack two weeks ago.
The action around Teruel has de-
veloped into one of the biggest battles
OF the Spanish civi! war and, with
clfse to 100000 troops engaged, its
outcome may have decisive effect
on the final result Of the bloody, IT.
month-old conflict.
The insurgents said they were con-
solidating their positions in southern
sections of Teruel after recapturing
this highly important city at the
southernmost tip Of the Aragon front.
Loyalists Claim Recovery.
MADRID, Jan. 3 R.-Official
Spanish government dispatches from
the Teruel battle front declared to-
day the government was more than
holding its own" in the face of the
1nsurgent counter offensive
The government report said that
in addition to holding their line
protecting "all vital points closest
to the city," government troops ere
covered some ground"
| The several thousand insurgent gar
rison troops and civilians trapped in
Teruel when government troops took
it were still stubbornly defending
themselves In barricaded buildings.
Teruel Loss Denied Here.
By the Associated Press.
The Spanish Embassy said last night
Minister of Communications Giner
had telephoned from Barcelona denial
that the insurgents had captured
Teruel. Embassy officials said they
also were informed that the govern
Evening star., 1938-01-03
WINSHIP DELAYED
Plane Trouble Prevents Arrival in
D. c. Before Tonight.

10 " OC1VIC 3V116HGs
BY tie Associated Press.
Eastern Air Line officials said to-
day mechanical trouble on a trans
port plane would necessitate a 12-
hour delay in the arrival here Of Gov.
Blanton Winship of Puerto Rico.
Officials said plane from Miami,
due here at $40 am, developed
trouble in one motor and made an
unscheduled landing at Maxton, N. c..
"All passengers were transferred to
a Seaboard Airline train for Rich
mond, Va, from where they will take
. plano arriving in washington 1T z
o'clock tonight" airline of0cials so1d
Evening star., 1938-01-03
SNOW KNEE-DEEP
IN TERUE[ BATTLE
Rebels Report Thousands of
loyaIists' Bodies Found
in Drifts.

BACKGROUNU-
Spanish insurgents struggling to
recorer strategic city OF Teruel in
louer Aragon, captured BY gopern-
ment troops last Ueek in driUe to
torestaH opening OF rebel grand
offensive to conquer remaining ter
ritory under control OF Popular
Front government. Announcement
Saturday by insurgents that Tcruel
had been recaptured brought stout
loyalist deniQls. More than 100000
men engaged in battle, Which may
decide final result OF Spanish civil
udr.
Evening star., 1938-01-03
Summary Of Today's Star

Page Page.
Amusements Bis Radio BIS
Comics B-l4-15 Serial Story b.
Editorials AS Society B-3
Finance Alb SPORTS A.l6-17
Lost & Found B-12 Woman's Pg. Bio
Obituary A-l0
FOREIGN.
Rebels assault loyalist flank on Teruel
front. Page Al
Titulescu offers aid against
Goga. Page AZ
Chinese training new army of 100000
men. Page Az
Wounds in Teruel battle are fatal to
Neil Page Az
NATIONAL.
Roosevelt says U. S. must prepare to
defend itself. Page Al
Norris asks investigation Of the
T. v. A. Pare Al
Tax rates for firm incomes up to
$25,000 proposed. Page Al
P. w. A. funds for municipal power
systems ruled legal. Page Al
1000 apply for jobless compensation
In two hours. Pare Al
Lax accounting in u. 8. agencies
scored by Elliott. Page Al
Administration leaders study jobless
statistics. Page Al
Roosevelt confers with leaders before
delivering message. Page AS
I. G. c. warns railroads against over
optimism Page B-1
WASHINGTON AND VICINITY.
War referendum bill sssailed by Tyd-
ings in Town Hall Page Az
Reisinger court-martial opens at
Quantico. Page Al
Admiral Jones dying wish for a simple
burial Is granted. Page A-10
Two killed by autos in week end
period. Page B-1
Hundreds of motorists in rush for
tags. Page B-l
House District subcommittee person.
mel completed. Page B-l
House group studies 1899 D. G. budget
estimates pase HI
Court refuses Injunction against pain
|. ters pay ruling. pags III
Evening star., 1938-01-03

killing is: WAS this fellow in the num-
bers game or bookmaking or what?"
On an autumn evening young Allen
D. Wilson was delivering newspapers
(See NUMBERS, Page A-7.)
Evening star., 1938-01-03

outside the rules of a civilized society.
So often have Washington gamblers
enforced their demands and paid their
debts with bullets that the first thing
members of the homicide squad ask
when they investigate an unexplained
Evening star., 1938-01-03

(See ELLIOTT, Page A-6.)
Evening star., 1938-01-03
Teruel Loss Denied Here.
the Associated presS

The Spanish Embassy said last night
Minister of Communications Giner
had telephoned from Barcelona denial
that the insurgents had captured
Teruel. Embassy officials said they
also were informed that the govern
ment forces "had taken new positions
north of Teruel."
Evening star., 1938-01-03

(See ROOSEVELT, Page A-5.)
Evening star., 1938-01-03
WEATHER.

%. 8. Weather Bureau Forecast)
Fair, lowest temperature about % to-
night; tomorrow mostly cloudy and warm
er; light variable winds, becoming gentle
southerly. Temperatures today-High-
est 40, at pm; lowest, 80, at $50 am.
Full report on page AZ.
Evening star., 1938-01-03

,lsss JoBLNDA. Page A-6)
Evening star., 1938-01-03

,(See COURT, Page ADD
Evening star., 1938-01-03

Home Delivery by Carrier:
The Evening Star Wk., 45c Mo-
The Evening & Sunday Star, 15c Wk., Csc Mo.
The Waterbury Democrat., 1938-05-31
NEGLECTED HOUSE
 DOWNS VALUATION

Neglect of small flaws ill house, failure to install up-to-date equip ment, allowing the exterior to be- come shabby, all contribute to de- preciating the value of property.
 If the items requiring attention are taken care of as the need arises, attendant costs will be comparative ly slight. Neglected until damage becomes acute, these same repairs often became major items of ex- pense.
 A sound policy is to check for flaws in a dwelling each year and plans to install modern equipment or modernize some part of the build ing every year. Such practice will not only preserve the building but may even enhance its value.
 Countless times a home that was needed to house a large family is left to one or two people when the children grow up, marry, and move away. If the old home has been maintained in good condition, 1t need not be a burden. By redivid- ing the upper floor, adding baths, and providing for small kitchenettes the property may be made to pro- duce sufficient income to help pro- vide livelihood for it's owners. The Federal Housing Administra ton. through the Property Improve ment Credit Plan, cooperates with private lending institutions to make funds available for modernization work.
The Waterbury Democrat., 1938-05-31
Heavy Subscription
 Of National Mortgage
 Association's s Offering
Funds Ready for Home-Financing, New Construction, RenovatiOns, Improvements ts-Public Interest,
 Confidence Reflected in Sale

Washington, D. C., May 31-Heavy oversubscription of the first offer ing of national mortagage associa- ton obligations points to the suc- cess of this new mode of providing funds for home enhancing and con- struction, Stewart Mcdonald, Fed eral Housing Administrator, said to- day.
 Applications for $25, O,000 of 2 percent five-year notes of the Fed eral National Mortgage Association, recently offered for sale, approxi- mated $1,200, 0,000, 900, a subscription total equal to 52 times the amount offered. The notes, while not guar anteed by the federal government, are backed by FHA-insured mort- gages and are exempt from normal taxation.
 Largest on Record
 The er-subscription was said to be one of the largest on record for any issue of securities sponsored by a government agency. The amount of applications, which was especial ly remarkable in view of the fact tha national mortgage association obligations had never before been marketed, demonstrates the extent of the public's acceptance of the mu- tual mortgage insurance system, the Administrator said.