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Show News Review of Current Events the World Over St. Lawrence Waterway Treaty Rejected by tlie Senate Despite President's Efforts Revamping of Air Mail in Progress House Passes Bonus Bill. WALTER J. CUMMLVGS, cnatr- j man of the Continental Illinois ' Bank and Trust company of Chicago, Chica-go, Is the new treasurer of the Democratic party. The place was first offered to John S. Cohen, Atlanta At-lanta publisher, but he rejected It. Mr. Cumrnings' first task will be the raising of funds with which to help along the election of Democratic Demo-cratic senators and congressmen this fall. Supposedly he will also raise the money for the next Presidential Presi-dential campaign. N JULY 1 the University of II-linois II-linois will have a new president presi-dent In the person of Arthur Cutts Wiilard, now dean of the college of engineering In the university. Mr. Wlllard, who Is fifty-five years old. By EDWARD W. PICKARD TF.SPITH tlie fact that President Roosevelt phoned personally to a number of senators of both parties par-ties seeking to persuade them to Colonel Lindbergh aroused interest inter-est by visiting Washington for two days and conferring with Secretary of War Dorn. Soon after the secre- Is a graduate of the Massachusetts Institute of Technology and Is internationally in-ternationally known as an authority on heating and ventilation. CRIMINAL action for alleged eva- ' sion of the federal income tax law was ordered by Attorney General Gen-eral Cumrnings to be brought 1m- 1. kJ& vote for ratification ratifica-tion of the St. Law-re Law-re n c e waterway treaty, the pact was defeated In the senate sen-ate by a vote of 40 to 42. Thus the affirmative af-firmative vote was far below the required re-quired two-thirds of those voting. I'arty lines were disre- mediately against Andrew W. Mellon, former secretary of the treasury and one of the world's wealthiest men ; T. U Sidlow of Cleveland, Cleve-land, law partner of Newton D. Baker; Thomas S. Lauiont, son of the noted financier Tbomat tary named the colonel, . Orville Wright and Clarence Chamberlin on a committee to Investigate the army carrying of the air mail. Lindbergh, however, declined to serve on the committee, repeating In his letter to Secretary Dern his severe condemnation of the plan to have the army carry the air malL Mr. Dern urged him to reconsider. Meanwhile, the colonel appeared before the senate post ofilce committee com-mittee to testify concerning permanent perma-nent air mail legislation. General Foulois has been working on a plan by which army flyers could Join with commercial pilots In receiving training. The step follows fol-lows a suggestion by Mr. Roosevelt that "because military lessons have been taught us during the last few weeks," army aviators should train with those who "later on will fly the mail" In "night flying, blind flying and Instrument flying." ' I HVO hundred and thirty-one A Democratic members of the house kicked over the traces and, with the aid of 59 Republicans, passed the Batman bill calling for thj immediate payment of the veterans' vet-erans' bonus with greenbacks. The President has repeatedly expressed 1 his opposition to the measure and Indicated that he would veto it if It got through congress. Its passage by the senate was unlikely. There were only two reasonable explanations for the revolt of the Democrats. One was put in words garded. Twenty-two Senator Lewis , , , , . Democrats voted against ratification, along with 20 Republicans. In favor of the pact were 31 Democrats, 14 Republicans Republic-ans and 1 Farmer-Laborite. Mr. Roosevelt, It was said In Washington, was decidedly vexed by the defeat of a major administration adminis-tration measure, and he began preparations prep-arations to resubmit the treaty at a future session of congress. Senator Sena-tor James Hamilton Lewis of Illinois, Illi-nois, Democratic whip of the senate sen-ate and one of the leading opponents oppo-nents of the rejected treaty, predicted predict-ed that Canada would soon offer the United States a substitute treaty. This may be true, but dispatches dis-patches reveal that in Montreal, at least, the defeat of the pact was hailed with Joy because business men there think the project too expensive ex-pensive to be undertaken at this time. The President's warning that Canada would, on Its own initiative, initia-tive, build an ail-Canadian waterway water-way seems to be met by this news from Montreal. W. Lamont and a Andrew W. meniber of the j Mellon p jror;an hanking house, and James J. Walker, for mer mayor of New York. Mr. Cumrnings announced thai the Department of Justice had conducted con-ducted a secret Investigation of the tax affairs of these four men anj had turned the information gathered gath-ered over to United States attorneys attor-neys In New York, Cleveland and Pittsburgh. Grand jury action in each of those cities was expected to result. Cases against more than a score of other men were being prepared by the department's tax division. Mr. Mellon was quick to place his case before the people. In a long statement he denied ever having failed to pay his proper income taxes and said that in the last twenty years he had paid more than $20,000,000 In this form of rates. He characterized the attorney general's gen-eral's action as "politics of the crudest sort." He continued: "I feel very strongly that before the attorney general of the United States should bring a charge of this kind against me I, like any other citizen, should be given proper notice no-tice in the manner provided by law of the government's intention to assess additional taxes and should ha-ve been afforded an opportunity to meet such charges in the customary custom-ary way. "In all my years of experience in the administration of the tax laws I have never known of a single Instance In-stance in which such unfair and arbitrary action has been taken." By order of the President a new income tax procedure was put In force, designed to break up so-called "negligent" evasion of taxes. All tax returns which the government suspects of embodying willful evasion eva-sion will be referred to grand Juries for investigation of possible fraud. Chicago and the Mississippi valley val-ley are blamed by Mr. Roosevelt for the rejection of the treaty, and there is no doubt that their arguments against the proposed restriction of diversion of water from Lake Michigan to 1,500 cubic feet a second were potent This amount, according to Senator Lewis and other Middle West senators, would be wholly inadequate to maintain navigation in the Mississippi Missis-sippi waterway. The Atlantic seaboard sea-board senators, . too, were almost solidly against the treaty. If the treaty is resubmitted, the clauses concerning the sovereignty of Lake Michigan and the Chicago diversion may be omitted; but Senator Sen-ator Lewis said: "So far as I am concerned and I believe I speak also for several others I shall not be satisfied with a mere omission, but shall demand that internationalization interna-tionalization of Lake Michigan and the limitation of the sanitary district dis-trict diversion shall be specifically renounced by Canada." OENATOR WAGNER of New York, chairman of the national labor board, has put forth a warning that unless "misconstruction" and "evasion" "eva-sion" of the collective bargaining provisions of the National Industrial Indus-trial Recovery act are checked, "we may expect to witness a vast swelling swell-ing of Industrial unrest with the coming of spring." Secretary of Labor Perkins joined with Wagner and other witnesses before the board in urging the passage pas-sage of Wagner's bill which would create a permanent labor board and outlaw employer Influence over the organization of employees. Representatives Repre-sentatives of the American Federation Federa-tion of Labor demand that employers employ-ers be foreed to recognize the unions and predict general strikes especially espe-cially in the automobile Industry unless prompt action is taken to satisfy the men. BY DIRECTION of the President, all air mail operations by the army air corps were suspended by Maj. Gen. Benjamin D. Foulois, by Representative John Y. Brown of Kentucky, a Democrat, who was in opposition. He said: "You are buying veterans' votes. You are holding out this piece of bait to get veterans' votes this summer. There is not a man In the house who believes be-lieves this bill will ever become a law, and yet you sit here and vote for it for your own political welfare." wel-fare." The other explanation was that many of the Democrats are resentful resent-ful of the "rubber stamp" label that has been put on congress and welcomed wel-comed an opportunity to break away from dictation and, as one of them said, vote as their consciences directed. di-rected. IN A new revolt against the ad-1 ad-1 ministration policy the house insisted in-sisted on adding more than $200,-000,000 $200,-000,000 in veterans' benefits and government pay to the federal outlays out-lays In the next fiscal year. However, How-ever, this was a compromise, for the amendment adopted by the house involves in-volves a total annual expenditure of approximately $90,000,000 for veterans as compared with the $118,000,000 called for under the veterans' amendment adopted by the senate. Briefly summarized, the house measure as sent to conference provides pro-vides : 1. That all Spanish-American war veterans be restored to the pension rolls on a basis of 75 per cent of what they received prior to enactment enact-ment of the economy bill last session. ses-sion. 2. That all World war veterans with service connected disabilities be restored to the rolls on a full basis. S. That World war veterans with presumptive disabilities be returned to the rolls on a 75 per cent basis. In addition, It eliminates pensions for emergency officers, pensions for the widows of the men lost in airship air-ship disasters, and knocks out the so-called Borah amendment limiting the restoration of the federal pay cut to persons receiving less than $G,000 a year. C AMUEL INSULL, whose deporta- tion was ordered by the Greek government, his ticket bought and his train selected by the officials, vanished from his residence in Athens between midnight and morning, morn-ing, and for hours the police of the country were frantically searching for him. Then it was announced that the fugitive had been arrested aboard the Greek freighter Meotis, which had been pursued by a torpedo tor-pedo boat destroyer. Insull was bonnd for Kessy, Egypt, near Alexandria, Alex-andria, and presumably was heading head-ing for either Persia or Afghanistan. Afghan-istan. The Athens police learned from the Insull household nothing of the way In which Insull escaped from the city. They thought he was aided aid-ed by "international crooks." The whole matter was causing great disturbance dis-turbance In Greece and a cabinet crisis was threatened. '"pHE gunboat Fulton, known as J- the "grief ship" of the American navy, caught fire during a storm off the China coast and had to be abandoned. aban-doned. The crew of 1S7 officers and men was rescued by two British vessels and taken to Hongkong. Only three men were injured. JOSEPH B. EASTMAN and the - Interstate Commerce commission have joined in recommending to congress legislation that will place under "the guiding hand of government govern-ment control" the transportation agencies that use the highways and waterways of the country. Their report, which was submitted to the President, declares that regulation of motor and water transportation Is necessary "if a threatening chaos Is to be transformed Into order." Such regulation, they said, should be concentrated in the Interstate Commerce commission. In proposing changes in the interstate in-terstate commerce act, the coordinator coor-dinator and the commission recommend recom-mend liberalization of the long and short haul clause forbidding a railroad rail-road to charge less for a longer than a shorter haul, except on permission per-mission from the commission. This clause Is held by middlo western interests to have damaged them substantially by preventing traffic moving by rail to the Pacific coast, and its repeal is now being sought, I A LIBERTAD, most Important - seaport of the republic of Salvador, Sal-vador, was almost destroyed by an explosion of dynamite on tlie docks and the resulting conflagration. It was believed at least 150 persons were killed. fVVE of Japan's new torpedo boats, " the Tomozuru, 527 tons, wai wrecked mysteriously off the Sasebo naval base and it was believed most of her crew of 113 men were lost The vessel was completed only February Feb-ruary 26 last and was a new typ, carrying the heaviest armament ever given a ship of its size. It was considered a triumph of Japanese : naval architecture. Several others of the same type are under construction. con-struction. r Y A vote of 15 to 8 a District of Columbia grand jury refused to return indictments in Its investigation investiga-tion of an alleged conspiracy to defraud de-fraud the government on War department de-partment contracts. ; by Western .uwsw aTT lltilon. chief of the corps, and the drafting of a new schedule that would Insure greater great-er safety for the flyers was begun. When the news reached hlra of the deaths of the ninth and tenth army mail carriers within with-in three weeks Mr. Roosevelt sent out word: "The con- Gen- B- D-tlnuntlon D-tlnuntlon of deaths Foulois in the army air corps must stop." He ordered that the carrying of air mail cease except "on such routes, under such weather conditions and under such equipment and personnel person-nel conditions as will Insure, as far as the utmost care can provide, sgainst constant recurrence of fatal accidents." General Foulois, Brig. Gen. Oscar Westover, chief of air mall operations, opera-tions, and various Post Office department de-partment officials built a revised "safety" route with the trans-continental line from Newark to San Francisco as the main line, other routes feeding into It. The Intention Inten-tion was to reduce the number of trips on all schedules and to permit per-mit less night flying. |