-A
THE MICHIGAN DAILY
FMAY, AUGUST 9, 1935
-i FRIDAY, AUGUST 9, 193~
m
State's Utility
Quiz Branded
A 'Whitewash'
Delegation Which Includes
Municipal Officials, Asks
Chance ToTestify
LANSING, Aug. 8. - (') -- A dele-
gation led by N. D. Jordan, of De-
troit, branded the public utilities com-
mission investigation of the natural
gas industry as a "whitewash" today
and petitioned for an opportunity to
testify before the house natural re-
sources committee.
Representative Edward H. Fenion,
of St. Ignace, chairman of the com-
mittee, told the petitioners today he
would remain neutral but they could
testify on an equal basis with other
witnesses at a hearing in early Sep-
tember. The committee is in recess
until then.
The petition bore the names of
Mayor William Shakespeare, of Kal-
amazoo; Mayor Max Templeton, of
Lansing; Attorney Roger Wykies, of
Grand Rapids; L. A. Walkling, of
East Lansing, secretary of the Michi-
gan Public Ownership league; Jordan
as president of the Michigan Mer-
chants council, and 10 others.
Denies Charges
William M. Smith, chairman of the
commission, said there was "nothing
to" the charges voiced by Jordan as
spokesman that the petitioners had,
been refused permission to testify.
Smith called yesterday's hearing to
determine whether there was basis
for assertions that certain interests
have attempted to throttle Michigan's
natural gas industry. Witnesses
testified that they had no knowledge
of any plot to injure the industry.
Jordan, commenting on the testi-
mony, expressed the belief that "hand
picked witnesses are testifying -we
don't have a chance." Smith replied
that he would call another meeting if
necessary to give all who wanted an
opportunity to testify.
The chairman interrupted the
questioning of Henry Hunt, secretary
of the Michigan Oil and Gas Produc-
ers Association in yesterday's meet-
ing to proclaim a commission policy
that "whenever and wherever in this
state there is a considerable quantity
of natural gas and a market demand
for it, tht gas will be transported to
the consumers." Hunt had asked
whether there would be a more liber-
al policy in granting pipe lines per-
mits.
Replies To Solon
Smith stepped down from the
chair yesterday to reply to Represen-
tative Miles M. Callaghan, of Reed
City, who was questioning Glenn R.
Chamberlain, of Grand Rapids, pres-
ident of the Grand Rapids Gas Light
Co. and an officer of the American
Light and Traction Co. Callaghan is
a member of the house natural re-
sources committee, which was ap-
pointed to study and recommend leg-
islation for natural gas conservation.
Callaghan demanded whether the
fact four corporations participate in
servicing Big Rapids with gas did not
increase the cost to users. Smith re-
plied it made no difference whether
cne company invested $10,000,000
and took a fair return, or two com-
panies invested $5,000,000 each and
took- reasonable returns. Callaghan
pursued the questioning but Smith
shut him off with the assertion that
"we're not going into that."
Hundreds Driven From Homes By Ohio Floods
Razor, Horns,
Gunfire Echo
. LouisVictory
Hastings Street In Detroit
Scene Of Another Wild
Negro Celebration
DETROIT, Aug. 8. - (P) - Joe
Louis' mother, who declined to ac-
company the Brown Bomber to Chi-
cago last night to see the fireworks
because she "had a feelin' " admtted
today she had played the wrong
hunch.
"I don't know why I didn't feel
so confident this time," she said. "I
just had the wrong hunch. But I'm
mighty proud of him. He sure did
the job in just a few licks."
The neighborhood of Joe's home
was, if possible, more of a bedlam
when the news of his one round vic-
tory over "that Kingfish, Levinsky,"
came in than when the Bomber won
over Primo Carnera.
"Ev'body went craa-zy!" was the
way Mrs. Lillian Longpre, who rushed
in to tell Joe's mother of the outcome,
expressed it.
On Hastings Street, the announce-
ment of the technical knockout
caught the crowd slightly unprepared.
Joe had told his friends it would be
the second round, and it was the
second round they waited for.
In a moment, however, the din was
on, with pistol shots, automobile
backfire, tin horns and shouts con-
tributing to the celebration. Some-
one even got so excited he raked Floyd
Johnson with the business end of a
razor, but Floyd hurried to a hos-
pital, got his wound dressed and
rushed back to the celebration.
Traffic was blocked in front of
the Big Money Social club while a
parade was hastily organized, and at
the Louis Booster headquarters, the
celebration last far into the night.
Not to be outdone, one organization
announced a huge labor day celebra-
tion at Artistic Hall in honor of the
pride of Hastings Street.
As usual, Joe indulged in his fa-
vorite sport -long distance calls -
assuring his mother by telephone that
his state of health was unimpaired
and exchanged chit-chat with his
cronies.
Coach Of All-Stars
Financier May
AppealIncome
Tax Conviction
Charles E. Mitchell, Once
National City Head, Filed
'Fraudulent' Returns
WASHINGTON, Aug. 8. - (P) -
The next move in the Charles E.
Mitchell income tax fight, in which
the former chairman of the National
City Bank of New York suffered a
$1,200,000 defeat yesterday, depends
on whether he decides to appeal.
The board of tax appeals, in a
decision which labelled part of Mit-
chell's income tax returns as "fraudu-
lent," ruled yesterday that he owes
the government the greater part of
a $1,275,645 tax claim preferred
against him.
Mitchell has the right to appeal to
the circuit ourt of appeals and thence
to the Supreme Court. If he does
not, the government presumably will
put its collection machinery into mo-
tion.
The decision yesterday noted that
Mitchell's fortunes declined from a
"net worth" of about $30,000,000
on Dec. 20, 1929, to insolvency "by an
amount in excess of $3,000,000" on
March 24, 1932. It did not say any-
thing about his present financial sta-
tus.
According to estimates of treasury
officials, the board. decision upheld
about $1,200,000 of the original $1,-
275,644 claim. For it held that a
New York jury's action in acquitting
Mitchell of criminal charges of tax
exasion does "not bar the imposition
of the penalty of 50 per cent of the
deficiency."
The original assessment included
tax deficiency claims of $850,429, plus
50 per cent penalties of $425,215.
The board ruled against the New
York financier on two of the three
major issues presented.
BILL'S STATUS DOUBTFUL
WASHINGTON, Aug. 8.- (R)-- A
pool of Democrats on the Guffey coal
bill was reported authoritatively to-
day to have raised grave doubts as
to whether the measure would pass
the House.
-Associated, Press Photo.
Hundreds of families were forced to vacate their homes by Ohio's worst floods since 1913 which roared
through the east central part of the state and threatened to cause more damage with additional rainfall.
Two persons lost their lives and heavy damage was inflicted to property and crops. This scene in Mas-
sillion, where 100 families were rescued from their fl ooded homes, was typical in the area.
Nation's Vast War Machinery
Will Be Paraded This Month
PINE CAMP, N. Y., Aug. 8. -(P) -
Engines of war whose essence consists
of speed and precision will demon-
strate America's battle weapons when
the largest peacetime maneuvers in
the country's history swing into ac-
tion here August 17 to 31.
Mechanized units developed or
brought to perfection since the World
war will speed detachments over
country roads in fast, armored auto-
mobile units; swift darting pursuit
planes will swoop down upon "enemy"
bombers in spectacular flight forma-
tions, and giant searchlights will light
up the sky at night at the warning of
huge detectors whose grotesque ears
thrust upward to trap the telltale
sound of an "invading" air fleet.
Some 55,600 men will take part in
the mimic warfare, representing both
regular army and National Guard
units. Officers and soldiers in the
Pine Camp area will total 36,000.
Mount Gretna, Pa., will concentrate
18,000 soldiers, while Fort Devens,
Mass., a regular army post, will see
a peacetime brigade of 1,600 men go
through their training paces. Maj.
Gen. Dennis E. Nolan, World war
fighter and commander of the First
army, will be in charge. Under him
150 "umpires" will tabulate effective-
ness and "casualties" of maneuvers
as opposing forces swing into ac-
tion.
The purpose of the war games is
to test the ability of active units of
the first army to concentrate simul-
taneously for field service and to
provide combined field training for
officers and men. Information head-
quarters in New York City points out
that United States army officers lack
the opportunity, which European
commanders have, of gaining experi-
ence through maneuvers with large
Where To Go
bodies of fighting units. The Pine
Camp and simultaneous musterings
at Mount Gretna and Fort Devens
will provide such opportunities.
The concentration of officers and
men at Pine Camp will create a
military population equal to the pop-
ulation of Jefferson county's largest
city, Watertown.
The area has been a military prov-
ing ground since 1908.
Skyrocketing Retail
Trade Is Predicted
NEW YORK, Aug. 8.-- (R) - Retail
trade, backed by wide gains already
achieved this year, is preparing for
what some authorities believe will
be the greatest forward drive of the
recovery era.
Conclusions of trade analysts are
based on operations reports for this
year and on forecasts coming into
the financial district on the approach-
ing fall and winter season.
During the first half of 1935, retail
dollar sales were some per cent
higher than for the first six months
of last year. All major divisions re-
ported universal gains with the ex-
ception of variety chains, where a
large increase by one firm offset small
losses from the previous year chalked
up by three others.
Weekly reports since July 1 have
confirmed the upward trend of sales.
W all Street's
Gigantic Stock
Gift Revealed
WASHINGTON, Aug. 7. - (P) -
Corporation officials and large in-
investors have given away millions of
dollars worth of stock in recent
months. This was disclosed today by
reports to the securities and exchange
commission.
Under the new tax bill now pending
in congress such gifts would, if made
in the future, be subject to heavily
increased taxation.
John D. Rockefeller, Jr., led the list
with a $1,000,000 gift of Socony Vac-
uum Oil Co., shares in March, while
Henry J. Fisher, chairman of the,
board of the McCall corporation, New
York publishers, was next with a
$700,000 gift of McCall common in
June.
The gifts are shown in connection
with reports which officials, directors
and holders of more than 10 per cent
of a corporation's securities making
monthly to the commission when
their securitiy holdings change.
The reports show only gifts of se-
curities. Names of the recipients are
not disclosed.
Under existing law only givers of
such bequests are taxed. The rates
start at 3-4 per cent on the first .tax-
able $10,000 and range to 45 per cent
on the portion over $10,000,000. The
bill recently passed by the house
would also tax recipients at rates
ranging from 3 per cent to 57 per
cent.
-Associated Press Photo.
Frank Thomas (above), head
football coach of the University of
Alabama, finished first in the na-
tion-wide poll to select a coaching
staff for the all-star college foot-
ball team which will meet the Chi-
cago Bears at Soldiers Field in
Chicago.
Canadian Business Rise
Steady And Sustained
NEW YORK, Aug. 7. - (R) - Con-
sistent gains in Canadian business
and industry are shown in current
surveys by economic authorities.
The dominion, which faced depres-
sion along with the United states
and the rest of the world, appears to
be entering a period of sustained re-
covery in most lines.
The Royal Bank of Canada, Mon-
treal, said in its monthly bank letter:
"In each month of 1935 there has
been an improvement as compared
with the corersponding month of
1934, and in May the official index
of the physical volume of business for
the country reached a new high of
103.2."
tEt. 1
Radio - Telegraph Net Linking
Nation's Policemen Proposed
Death Shadow
Hovers Above
Love Slayers
CHICAGO, Aug. 8. - (R) - Two
women who conspired to murder the
son-in-law of one awaited today a
Judge's decision whether their pen-
alty would be death in the electric
chair or life imprisonment.
One of the convicted killers, Mrs.
Blanche Dunkel, who admitted she
became Ervin Lang's mistress after
his, wife, her daughter Mallie, died,
sobbed remorsefully:
"It looks like they'll give us the
chair."
The other, Mrs. Evelyn Smith, who
told of being "sap enough" to strangle
and butcher Lang because her friend,
"hounded" her, commented on the
possible sentences with an unemo-
tional remark:
"Oh, I'm not fussy."
Acting Chief Justice Cornelius J.
Harrington in criminal court yester-
day found the two women "guilty of
murder as charged in the indictment."
He announced he would pass sentence
this afternoon.
Mrs. Dunkel and Mrs. Smith each
had a turn on the witness stand and
put' the blame for the slaying on the
other. Each admitted detailed con-
fessions read in court.
Public Defender Benjamin Bach-
rach offered little in their defense.
He said the crime was such that it
could not have been conceived by
persons of normal mind.
Mrs. Smith protected her Chinese
laundryman husband,' Harry Jung,
who has not been captured, inher
testimony. She said she called him
to help her dispose of the body. but
2 p.m. Majestic Theater, Lionel
Barrymore in "Mark of the Vampire"
and "Champagne for Breakfast."
2 p.m. Michigan Theater, Mary
Ellis and Tullio Carminati in "Paris
in Spring."
2 p.m. Wuerth Theater, Maurice
Chevalier in "Folies Bergere" and
Warren William in "Case of the Cur-
ieus Bride."
7 p.m. Same features at three
theaters.
8:30 p.m. Lydia Mendelssohn
Theater, "The Chocolate Soldier," a
musical comedy given by the Reper-
tory Players in conjunction with the
School of Music.
9 p.m. Summer Session dance,
Michigan League Ballroom.
9 p.m. Union membership dance.
Canoeing every afternoon and eve-
ning on the Huron River, Saunder's
Canoe Livery.
Dancing at the Blue Lantern Ball-
room, Island Lake featuring Clare
Wilson and his orchestra.
Kalamazoo To Hold
WPA Inauguration
DETROIT, Aug. 8.-- ) -Inaugu-
ration of WPA work in Michigan will
be marked by ceremonies at Kala-
mazoo tomorrow noon when work is
started on the Pitcher St. paving
project, it was announced at the of-
fices of Harry L. Pierson, state WPA
director, today.-
The program for the ceremonies
includes speeches by Pierson, Abner
E. Larned, Michigan NRA adminis-
trator, Mayor William Shakespeare,
City Managet Edward Rutz and Floyd
MANISTIQUE, Aug. 8. -(P)-The
annual convention of the Michigan
Association of Police Chiefs drew to
a close at Blaney Park today with the
election of officers and the selection of
the Association's 1936 meeting place.
The delegates reviewed modern
methods of crime suppression in a
series of addresses and demonstra-
tions yesterday.
Caeser J. Scavarda of the Michigan
State Police, one of the speakers, pro-
posed a nation-wide radio telegrap71
system to link law enforcement agen-
cies of the various states.
He said that radio telephone sys-
tems now in use in many cities and in
a number of state police departments
as well had proved invaluable in
directing the pursuit of criminals, and
added that the Michigan State Po-
lice radio was an important factor in
reducing bank robberies from an av-
erage of 18 a year to two in 1934 and
none in 1935. He said the extension
of police radio telephones was limited,
however, by the number of available
channels of a radio telegraph system
as more economical than teletypes.
Two other speakers pointed out the
need for co-ordination of law en-
forcement agencies.
Justice George E. Bushnell of the
Michigan Supreme Court said that
rehabiliation, rather than incarcera-
tion, should be the goal of police and
the courts in their dealing with law-
breakers. "Eradication of the sources
of crime," he declared, "rather than
punishment afterward, will save hun-
dreds of lives and millions of dol-
lars' worth of property."
Justice Bushnell also said that at-
tempts to exert political pressure up-
on law enforcement agencies must be-
curbed. He urged longer terms for
judges as a method of increasing the
independence of courts.
HONOR UNKNOWN DOG
LENINGRAD, U.S.S.R., Aug. 8. -
James S. Egan, chief inspector of
the federal bureau of investigation,
Washington, also stressed the im-
portance of eliminating politics from
enforcement work. He urged com-
plete publicity to correct absues re-
sulting from the pardon and parol(
system.
"The abuses of the pardon and pa-
role power in various parts of the
country have been obvious in the
past," he said. "Enforcement officers
have paid with their lives for mis-
takes of the system that have been so
numerous that it amounts to a na-
tional scandal."
Have You Tried
One of Housman's
R ICHa-
Chocolate
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