davidaulloa/AmericanStories huggingface dataset:
Evening star., 1938-03-22
By JOHN C. HENRY.

Although opposed to its substitu-
tion for present administration cor
porate tax principles, the Treasury De.
partment today informed the Senate
finance Committee that imposition
OF nat corporate income tax rate
would bring more revenue on estimated
business activity in the next fisca,
year.
Application Of a 10 per cent rate
rather than the sliding scale between
Is and 20 per cent, based on portion
OF earnings distributed, would bring
IN an estimated $l,100, ,OOO, 900, or s59,-
100000 more than expected under the
1888 bill. as approved by the House,
and s47,o00,000 more than estimated
under the present law, enacted in
1896.
A nat l8 per cent rate would be
worth $24,000,O00 more revenue than
the present much-criticized law. ac-
cording to the department estimates
submitted by DR.. Roswell Magill, Un-
dersecretary of the Treasury.
Avoiding discussion of a broadened
base for individual income tax rev.
enues, DR.. Magill replied to question.
ing that the lowering of exemptions
to $500 and $4,000 rather than 81 900
and $4,000 as at present would have
brought in an estimated increase of
s7o,7Oo,O00 in revenue' in 1897.
AT the same time, DR.. Magin pre-
sented figures to show that applica-
ton Of a nat Is per cent rate to capi-
tai gains rather than bracketing them.
or a percentage of them, to ordinary
income rates would result in 1899
losses to the Treasury.
Il think it is much better to helm
business, even If We lose a little rev.
enue," Chairman Harrison interjected
IN discussing the capital gains treat
ment. I'VE can make the revenue up
in any year"
Defending the administration tax
theories. principally on grounds of
equality of treatment of all classes of
taxpayers. DR.. Magill took occasion to
speak a word in defense Of the pro-
posed levy on accumulations of closely
held corporations which the House re-
jected.
Normal corporate practice. plus the
proposed undstributed profits tax"
the witness said, will result in ade-
quate tax revenues from corporate
earnings under present business condi-
tions, in the cases of the bulk of busi-
ness corporations whose stock is widely
held. There is no similar assurance
in the cases of large closely held
corporations whose shareholders pay
individual income taxes in the higher
brackets. In the absence of such
higher graduated undistributed profits
tax rates as were generally applicable
in 1936-l937. some special treatment
to eliminate this tax differential in
favor Of accumulations by closely held
corporations appears essential"
In his figures on capital gains and
losses, the Undersecretary estimated
the continuance Of the present law
300 TAYrC Do1n 9I
Evening star., 1938-03-22
MYSTERY ENTERS
DAUGHERTYPROBE
Musician Trai|ed by Car of
Policeman Without Lights,
Is Story.

An element of mystery today was
injected into the investigation of the
killing by Falls Church, Va, police
Of Theodore B. Daugherty, Washing
ton motorist, when new varying ac-
counts were given by witnesses OF
events preceding the shooting. !,
One OF the latest versions had the
31-year-old slain musician being
trailed by policeman's car-runninE
without ights-more than IN hour
before the gunnre. ...s4..,.-.''
Meanwhile, petition was being
circulated in Falls Church demanding
the removal of Mayor L. p. Daniel and
replacement by a person at the
head of the town who will appoint
more mature men, who know how to
handle firearms and the general pub
lie"
The criticism was founded on the
youthfulness Of the two town officers
involved in the shooting-Edwin
Scheid, %, and Herbert Knox, "a.
Due to their brief experience, they
have been accused of losing their
heads in firing at Mr.. Daugherty after
he allegedly attempted, they reported,
to run them down when they over
hauled him for speeding early Sunday.
New Witnesses.
Among the new witnesses are Mr..
and Mrs. Lawrence Barghausen, whose
home on the Leesburg pike is next
door to that of Onicer Scheid and
across the road from the residence of
George Frazier, father-in-law Of Mr..
The Barghausens said they were
awakened about l am. Sunday by the
barking of their dog. When Mr.. Barg-
hausen investigated and found moth
ing wrong he went back to bed. He
said he was kept awake, however, by
a flashing bright light that shone in
the window, and sounds of an argu-
ment.
Mr.. BarghauSen said he went to his
front porch and from there saw a car
he later learned was Mr..
Daugherty's-parked in the Frazier
driveway with its lights OF. A few
minutes later. after he went back In
the house, he said he saw the automo-
BILE leave the driveway, its lights on,
and turn toward Falls Church.
Almost Immediately, Mr. Barghausen
said, a car which had been sitting In
the Scheid driveway swung out and
followed the other machine. The
lights Of the second car were turned
Evening star., 1938-03-22
VIG|LANT BELGIUM
TIGHTENS DEFENSES
First Line and Reserves Both Are
Bolstered-Miles of Barbed
Wire Link Fortresses.
1y the Associated Press.

~ the Associated Press.
BRUSSELS, March 22-vieilant
Belgium frightened both her first line
and reserve defenses today against
any threat from the disturbed inter
national situation.
The 7th Reserve Division maneu-
vered before the defense minister and
cnlef OF staff at Beverloo Camp in
northeast Belgium according to plans
worked out last January.
Military authorities turned their at-
tention to the Luxembourg border de-
lenses. The neighboring grand duchy
is unarmed.
Foreign press correspondents visit
ing the famous fortresses of Liege
saw how intervals between the ad-
vanced forts were protected by miles
OF oarbed wire and mobile defense
units.
This system was intended to pre-
vent infiltration of a hostile force
between the forts, as happened in 1914
A permanent guard mounted
bridges and other strategic points in
the area to forestall surprise attacks.
Evening star., 1938-03-22
PANAY Indemnity
DEMANDED OF JAPAN
Grew Presents Bill Believed to Be
for More Than 81, 900, 900.
Payment Expected.
By the Associated Press

oy LAC AoSOClhICu 1IGS0.
The State Department announced
today that Ambassador Grew had pre-
sented Japan with . bill for the
deaths, injuries. and damages caused
by the bombing by japanese planes of
the American gunboat Panay and
three American tankers on December
IL, 1897. -
The amount involved was not dis
closed, but is indicated to be more
than a million dollars.
The State Department recalled. IN
submitting the bill to Toxic, that "the
japanese government stated that it
would make decentralization for ali
the losses sustained"
Three Americans were killed and
several score were injured in the
bombing. The Panay was sunk and
the tankers seriously damaged.
In view of Japanese statements of
willingness to pay full indemnities
promptly, . quick settlement Of the
bill is expected by the department.
Evening star., 1938-03-22
REILLY WRIT DEMANDS
RELEASE FROM HOSPITAL
Former Hauptmann Counsel Saws
He Is sane-Charges Illegal
Detention.
Dy the Associated Press,

RIvERHEAD. N. Y, March 22,-Ed-
ward ]. Reilly, once chief counsel for
Bruno Richard Hauptmann, electro
cuted Lndbergh baby kidnaper, today
asked = suffolk County jury to free
him from the Kings County Hospital
for the Insane.
Mr.. Reilly was committed more than
. year ago on the application of his
mother, Mrs. Helen. Reilly. He con-
tends he was committed illegally and
yesterday testified he was and is sane.
Opposing his habeas corpus writ, DR..
Charles Parker. superintendent of the
hospital, testified through Francis x.
Wszeter, assistant attorney general,
that Mr.. Reilly was mentally sick"
"A physician at the hospital told
me there were three ways to obtain
freedom" Mr.. Reilly said at yester-
days hearing, death, escape and
habeas corpus"
Il chose the habeas corpus"
Evening star., 1938-03-22

FOREIGN.
Brazil rejects Reich appeal for free
Nad cultural activity. Page Al
Insurgents unleash tanks and planes
against Loyalists. Page Al
Japan will not yield captured ground,
says Premier Konoye. Pare AS
Nazis raid home Of i'll DR.. Freud;
passport seized. Page Al
NATIONAL
Senate nears vote on exemption in re-
organization bill. Pare Al
+. v. A. chairman faces custer action
BY President. = Page Al
Senate Navy bin critics plan hot
light. Page Az
WASHINGTON AND NEARBY.
]. A. Rice dies Of injuries received in
Maryland crash. Page Al
Mystery element injected into DauRh-
erty shooting. Page Al
Copies Of D. G. health survey for pub
lie urged. Pare AZ
Final action on supply bill is pending
IN senate. Page Az
Subpoenas issued for 20 witnesses in
Warning case. Paee Ri
Report stresses need Of revised penal
system here. Page RI
A. M. A. Is asked to back Group Health
plan here. Pare hi
Hoover urges support for Police Boys
Club drive. Page B.1
Ev3ls ~ M q ~ 1,us ve tnId - ryns,.. r, -
group hea1ing. Hase III
Evening star., 1938-03-22
TETLOW is CHOICE
Named Temporary Chairman Of
Coal Commission.

The Bituminous Coal Commission
formally named Commissioner Percy
Tetlow Of Columbus, Ohio, today
as temporary chairman, succeeding
Charles F. Hosford, jr.
Mr.. Tetlow, former Ohio district
president Of the United Mine Workers,
will serve until President Roosevelt ap-
points Mr.. Horsford's successor on the
commission. Mr.. Horsford resigned
from the commission last week, ef-
fective April 30. Yesterday he gave up
the chairulanship and Mr.. Tetlow BE-
gan acting In that capacity.
Evening star., 1938-03-22
BRITON DISAPPEARS

Artillery Officer Missing on Ski
Trip in Japan.
TOXIC, March ~ (R.-Police
plodded through heavy SHOWS above
Nikko today in search for 1t. T. A.
Peacocke, British artillery officer, re-
ported missing yesterday by the
British Embassy.
Also missing. Japanese said, was
1t. Peacocke's companion on o skiing
trip, q japanese believed to be Shinobu
Aoki, member Of the Shanghai Natural
Science Research Institute.
Police traced the missing officer to
. resort hotel, but the hotel man said
Peacocke's skis were broken when he
left the resort and he doubted II he
had attempted the sport.
Evening star., 1938-03-22

HONG KONG, March % @..-A
japanese submarine is participating
in the blockade of Canton, South
China. it became known today when
the Netherlands steamer Reinier re-
ported she was stopped and delayed
three hours of Boca Tigris forts
March 10. The steamer was carrying
q cargo of coal.
Evening star., 1938-03-22
Mrs. Dollfuss Quits Italy.

BRUNNEN, Switzerland, March %
F.--Mrs. Engelbert Dollfuss, widow
of the Austrian chancellor who was
assassinated in 1884, and her two sons
arrived today from italy. She said
she was planning to place the boys in
school and probably would remain in
Switzerland indefinitely.
Evening star., 1938-03-22
Exemption From Presiden
Reorganizing Power
Refused 5O-33.
FINAL ACTION ON BILL
EXPEDITED BY BALI
Recommittal of Entire Meas
Demanded by Green-Claim
Hearings Superficial.
BULLETIN.

BY a tie vote, administratid
forces this afternoon defeated tn
motion Of Senator Clark, Dem&
crat, Of Missouri to exempt ttt
Veterans Administration from til
Government reorganization bill.
A few minutes later, another t
vote defeated a modified motion |
prevent transfer of any function
the Veterans Administration,
Evening star., 1938-03-22
JEWISH DEATH RATE
IN Vienna SCARS
Rise From Average of 4 a Day
to 140 Reported by World
Congress.
~ the Associated Press,

By I08 A86OCIBLtu EISXS.
GENEVA, March 22.-The World
Jewish Congress asserted today that
the Jewish death rate in Vienna,
based on the number Of funerals held
In Jewish cemeteries, had risen from
IN average Of four daily to 140.
The confess, in q general state
ment which It held to reflect authen-
tically conditions In Austria, said
Jews are being steadily deprived Of
means to fight misery which every day
y becoming moro atrocious."
Evening star., 1938-03-22
Electrocuted on Locomotive.

BALTIMORE, March a. R.-A
transient identified by his two COM
panions Is jackson Musick, AZ, Bir-
minsham, Ala, was eiectrocuted last
night when he climbed on an electric
locomotive halted ut . station.
Evening star., 1938-03-22
FLAT TAX REVENUE
BOOST IS SEEN
Treasury Defends New Deal
Corporate Tax Plan,
However.
BACKGROUND

BACKGROUND
Business has been bitterly critical
during past tUo years of Gouern-
nent policies OF taxation pith par
ftcul0r fire being directed at un-
distributed corporate profits tai and
treatment OF capital gains as
ordinary income. House modifca-
t1ons were enacted Uith approval of
Treasury Department, but further
changes contemplated by Senate
Finance Committee go beyond
tDtsheS OF administration,
Evening star., 1938-03-22
MARINE ACCUSED
Peiping Embassy Guard CHARGED
With Gem Raid on Bank.

>SATAAA3 SA0Aooy Nu&IO Su2I&eO
With Gem Raid on Bank.
PE1PING, March "a R.-Private
Matthew Manphers Of Bristol, Pa,
member Of the United States Embassy
marine guard here yesterday faced
. general courtmartial on charges Of
armed robbery and absence without
leave.
A Chinese watchman testifying be-
fore the Courtmartial Board identified
Mannherz as one Of gang who raided
the premises Of the former RUSSO
Asiatic Bank In the embassy quarters
on the night Of December II and
carried Oh quantity Of jewelry stored
there. --s.-
Evening star., 1938-03-22
Hoover Talks to King.

LONDON, March az R.-Former
President Herbert Hoover talked for
half an hour today with King George
st Buckingham Palace,
Evening star., 1938-03-22
Hirohito Sees Italians.

TOXIC, March % R.-Emperor
Hirohito today granted audience to
ii members Of an italian goodwill
Fission.
Evening star., 1938-03-22
Summary Of Today's Star

EDITORIAL AND COMMENT.
Editorials. Page A-1O
This and That. Page A-10
Stars, Men and Atoms. Page A-10
Political Mill. Page A-10
Answers to Questions. Page A-10
The Capital Parade Page ALL
David Lawrence. Page ALI
Mark Sullivan. Page ALL
Jay Franklin. Page ALL
Della Pynchon. Page ALL
SPORTS.
Appleton's fate may depend on slab
showing today. Page Ala
Chisox see break in acquisition of
Kuhel from Mats. Page Ala
Armstrong, Baer are featured stocks
on ring exchange. Page Ais
Abrams prestige suffers through kayo
by Jones. Page BIS
Farr good ring investment, despite
losing habit. Page Bis
Coli body to pass on suspension OF
Leo Walper. Page B-16
CANANClA1.
U. 8. bonds gain (table). Page ALI
Business loans drop. Page ALI
c. q N.-st. Paul merger talked.
Page ALT
Pepco output climbs. Page Ais
Stocks sell Oh (table). Page Ais
Curb Eases (table). Page A-19
MISCELLANY.
Shipping News. Page AS
City News In Brief. Page b.
Vital Statistics. Page BIS
Natures Children. Page BIS
Bedtime Story. Page B-14
Letter Out. Page B-14
Crossword Puzzle. Page B.14
obnttact bridge. Paso Lii
Evening star., 1938-03-22

Committee Approves Draper.
The nomination of Ernest G. Draper
to be a member Of the Board of Gov
ernors of the Federal Reserve System
won approval today Of the Senate
Banking Committee.
Evening star., 1938-03-22
BRAZIL REJECTS.
GERMAN NOTE ON
FREE CULTURE BAN
Foreign Minister Declines
to Consider Plea Couched
in Strong Language.
REICH AMBASSADORS
REPRESENTATIONS FAIL
President and Other High Officials
Believe Program Is
Political.
BACKGROUND

BACKGROUND
Adolf Hitler, in role of protector
OF Germans il, foreign countries,
through his Ambassador Carl Rit-
ter. recently launched campaign for
free Nazi culture in Brazil. Presi-
dent Vargas and other high officials,
believing program, in effect polit-
icdl, rejected Ritter'S representa-
tions. Vargas based his decision on
his prohibition OF all political
parties
the Associated Press.
RIO DE JANEIRO, March 22.-Ef-
forts by the German government to
regain free Nazi cultural activity for
Germans in Brazil ran into a blind al.
ley today.
It was ascertained at the foreign
ONCE, that Foreign Minister Oswaldo
Aranha has rejected fatty the latest
series of representations against Bra
nils ban on NaZi activities.
Carl Ritter, the German AmbasSa-
dor, acted for his government. It was
said reliably that the foreign minister
considered a note submitted by Ritter
to be couched in such strong language
that he rejected it without further
consideration.
Ritter has been comforting with high
Brazilian officials for several days. He
talked yesterday with Francisco Cam
pos, minister of justice and of the in
terror, but nothing resulted to indicate
any change in the situation.
President Getulio Vargas abolished
all political parties when he set up his
authoritarian regime on November 10.
He reiterated last week his determi-
nation not to permit Nazi activity
among the 155, 600 Germans in Brazil
He, with other officials. has indicated
q belief that the NaA cultural pro-
gram was in effect political.
The German foreign Office newspa-
per, peutsche Diplomatisch-Po -Politische,
yesterday termed the Brazilian ban an
action against Germat1dom."
The German paper observed that "it
seems Is though the president (of Bra
hD is encountering certain difficulties
and Obstacles in circles that are in no
way connected with Communism.
"One gets the impression that these
difhculties have brought about a sit
uation OF political disquiet in conse-
quence OF which the central author
ity does not appear to have been able
to assert itself everywhere with nec-
essary vigor"
1t expressed hope President Vargas
shortly will be able to master these
internal difficulties"
Evening star., 1938-03-22
THREAT srIRs CONGRESS.
Storm of OpDssitiea Il Seen II Rosse-
velt Tries Removal.

D. JOHN II. CLINE.
With the stage set for a major po-
litico-legal drama, President Roosevelt
today was preparing to carry out his
threat to suspend or remove Arthur
E. Morgan as chairman of the Ten
nessee Valley Authority.
Should the President undertake to
remove the 7. v. A. chairman. his ac-
ton would be certain to arouse storm
Of opposition in Congress, where there
is widespread belief that the pres.den
has no authority to remove any mem
Der Of the T. v. A. directorate. Even
friends OF T. v. A. and opponents of
Chairman Morgan, it was believed.
would view his removal with concern
because of their reluctance to see a
precedent for such executive action
established.
It was generally expected a suspen-
sion would not meet such strong oppo-
sition because, presumably. Chairman
Morgan would retain his legal status
as head Of the Federal power agency
until Congress has investigated the
entire matter.
There was speculation on Capitol
Hill that the President might issue an
executive order removing the chair
man and then nominate his successor
at once. Such course. observers
pointed out. would force the Senate to
decide whether to support the custer
tSee T. v. A.. PAGE A.l1
Evening star., 1938-03-22
I. Y. A. CHAIRMAN
REFUSES ANSWER.
ON CUSTER THREAT.
Presidents Request That
He Give ANY Reason to
Bar Removal Spurned.
CONGRESS STORM SEEN
If ROOSEVELT ACTS
With Deadline Today, Action on
Successor to Morgan
Is Anticipated.
BACKGROUND

BACKGROUND
Faced ,oith dissension within the
Tennessee Valley Authority, Dhich
ne thought Uas impeding the tunc-
ttons OF that agency, President
Roosevelt early this month began
personal Investigation to ascertain
truth or talstty OF mutual charges
made by riudl r. v. A. factions.
Chairman Arthur Morgan, intent
on forcing congressional inquiry,
REUSED to submit data sought by
President, resulting in threat to
remlope him by executive action.
BY the Associated Press.
YELLOW SPRINGS, Ohio. March
22.-Arthur E. Morgan announced TO-
DAY his nat refusal to meet President
Roosevelts request that he give "any
reason" why he should not be removed
as chairman Of the Tennessee Valley
Authority.
I have no further statement to
make, other than what I told the Pres
ident yesterday" Mr.. Morgan said,
following his return to his Yellow
Springs home
President Roosevelt had given Mr..
Morgan until 2:30 pm. today to pro-
vide ANY reason"
There were indications in Washing
ton that II President Roosevelt did
not hear from Mr.. Morgan he might
issue an executive order to remove
the chairman.
Mr.. Morgan declined comment on
what steps he would take in such an
event. He said he planned to 90 to
Chicago tomorrow and that his other
plans were uncertain.
The chairman. storm center of a
controversy involving the T. v. A.,
came here to obtain some old records.
apparently for use in his controversy
with his co-directors, David z. Lilien-
thai and II. A. Morgan.
Evening star., 1938-03-22

(See SHOOTING, Page AID
Evening star., 1938-03-22

(See TAXES, Page A-3.)
Evening star., 1938-03-22
japanese Submarine Active.

tSee T. v. A., Page A-4.)
Evening star., 1938-06-30

den and said the Legion wished to
continue its harrnonious relations with
the N. E. A.
when this abortive attempt to
sabotage the American Legion be-
came public" he said, Il asked the
Legion national headquarters to ar
range with your convention that I
might be allowed to address the con-
vention on the subject.
Satisfied With Appearance.
AT no time did / or the Legion
suggest any time or place, and when
it was thought better that be heard
here this morning instead Of. last
night at Madison Square Garden ]
was in thorough accord with that
decision"
In presenting the commander. Will
lard e. Givens, N. E. A. executive
secretary, said the association had nt
connection with the Gellermann state
ment, which was issued by Teachers
College, Columbia University, ane
charged that the Legion attempted
to dominate N. e. A. activities, wa
Fascist" and was manipulated by ,
small group serving special interests
1T Is most unfortunate Mr.. Given
said, that certain individuals hav,
Evening star., 1938-06-30

in recent years released radical and
subyersive statements at the same
time and In the same city in which
our convention Il meeting; statements
intended to give the impression that
they emanated from our own con-
vention.
"such procedures are unethical."
Explains "Real Aims"
IT am not here to attack the un-
fortunate professor" Mr.. Doherty
said. but to affirm the harmonious
relations which have always existed
between the N. E. A. ard the Legion,
and to explain briefly the real aims
and purposes Of the American Legion. I"
He said the preface to Mr.. Caller
mann's book, "The American Legion
as an Educator" gave credit for "as-
sistance, criticism and practically
sponsorship to Prof. George s. Counts.
Il have here a copy of the Con-
necticut Teacher, q publication dated
February. 1885," Mr.: Doherty con-
tinued, advertising the Moscow Sum-
mer School, in which Prof. Counts Is
named as one Of the American
advisers.
He is also connected. with other
Evening star., 1938-06-30

ing good and because Of Culiinanes
new Job started drinking beer to-
gether to celebrate" He said the three
Of them rode around for while, stop
ping ut different places for bottle Of
beer.
1--WE went back to the restaurant"
Genua said, land Jack (Cullinane)
told Griesby to close up the place for
the night. So Howard went on away.
We stayed there and had few more
BOTTLES of beer and Angelo started in
sisting that Jack keep The place open
until closing time-2 am. Jack re-
fused to keep it open, insisting that
the doors be closed. They argued q
little while and then made UP. After
few more beers, customer knocked
at the door. which had been closed. I
asked Jack should I let him in and
Jack said no. After q moment he
said Let them on in After while
they started arguing again, flghting
and then Cullinane got the knife and
stabbed Pappas"
Cullinane lives at 803 Third street
NV. He Is married and has two chill
dren.
Evening star., 1938-06-30

groups communist in concept and
origin and directly afiliated with
Moscow"
MIR. Doherty said Mr.. Gellermann
had renewed his membership in the
Legion last January IS.
His post has already asked him to
affirm or deny the statements at
tributed to him the mem
bership of the American Legion is not
enhanced by having his membership.
but in line with our democratic organ
ization, every post is Judge of its own
members"
In reply to the criticism that the
Legion was not representative Of the
ex-service men. of the country, Mr.
Doherty said, ''our membership as oi
June as. the latest fgure available was
$500. the higheSt all-time record.
| To the assertion that the Legior
leadership was representative of en-
trenched interest4 Mr.. Doherty re-
piled: 90
II am just humble Legionnaire
in it from the; beginning, and still
believe it is a great leavening ane
stabilizing force, and ] know that
have no connection with any en-