OCR Interpretation


Evening star. [volume] (Washington, D.C.) 1854-1972, March 12, 1922, Image 35

Image and text provided by Library of Congress, Washington, DC

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83045462/1922-03-12/ed-1/seq-35/

What is OCR?


Thumbnail for 3

U. S. STAND AS TO GENOA
MAY OPEN EUROPE'S EYES
Constitutes Warning to Other Nations
That They Must Help Themselves
Before Expecting American Help.
BY OLIVER OWEX KUHIf.
THE United States does not in
tend to underwrite false
European political theories
or capitalize selfishness in
the guise of nationalistic weal. Uncle
Bam, in answering Europe's ex
pressed desire of bringing about
general economic and financial re
habilitation, has cabled to old world
capitals the equivalent of the cryptic
colloquialism, "Go to It."
The American people will see how
well Europe does the Job and when
there has been a readjustment of
certain political thoughts and gov
ernments have really set about
processes looking to the common
welfare of continental peoples, then,
and then only, will this government
intervene to lend national assistance
to such rehabilitation processes as
are set In motion. Good faith must
be proven.
The attitude of Secretary Hughes
in refusing to send official delegates
to the Genoa conference Is in line
with the general American policy of
keeping aloof from strictly Euro
pean questions, and In keeping aloof
he has cast a bombshell Into certain
European capitals which have hoped
"to use the United States as the prodi
gal big brother in time of emer
gency. The American government
apparently is not disinclined to act
as a big brother to the suffering
peoples In many of the nations of
Wurope, but. like a wise big brother,
whose gullibility has passed with
adolescence, he demands that there
be some accounting, some show of
genuine effort to prove the sincerity
of oft-expressed desires to restore
Europe to a normal working basis,
?eonomlcally and financially.
* * * *
The United States stepped into the
war and materially assisted in
bringing down the curtain on four
years of terrible struggle, a conflict
to which four-fifths of Europe's ills
today are attributed. Immediately
with the armistice European nations,
realizing their impotence, cast eyes
toward that nation which, it was
believed, could alone of all others
help Europe to Its feet financially.
Before the Paris peace conference
and afterward there has been a veri
table avalanche of propaganda de
signed to break down the intrenched
American viewpoint that what is
strictly European, politically, should
be left to Europe to solve.
Cancellation of Europe's debt to
the United States has been but one
of the many attempts to crystallize
sentiment in this country toward
helping Europe. The average Eu
ropean has looked upon the Amer
ican as a gullible individual, who
with a big heart is willing to answer
any and all pleas that might redound
to the interests of people as a whole.
There is no question but that the
American statesmen, past and pres
ent, have the big hearts and are
ready to aid, but when it comes to a
point of making the American treas
ury the means of aiding strictly
selfish nationalistic interests, some of
them even being militaristic, Europe at
large has found this country adamantly
opposed.
The latest note of Secretary
Hughes, though couched in the polit
est phraseology, nevertheless ought
to convince Eureopeans that not
until sincere efforts have been made
to set their own house in order can
equally as serious steps be taken in
this country to assist in the general
process. In other words, the United
States rightly takes the position that
it cannot be used while the European
governments follow the line of least
resistance in caring for their own
necessities, particularly when this
country is not in anywise responsible
for the debacle of 1914/
* * * *
As Secretary Hughes has pointed
out, there are reasons to suspect that
the conference will be largely politi
cal in character. The economic par
ley is largely the thought of Lloyd
George, who is sincerely desirous of
adjusting the economic balance of the
continent at the earliest possible
moment, but the restrictions that
have been placed about it by the
French in perpetuating their desire
not to disturb the reparations issue
or modify the Versailles treaty, and
to which policy the British apparent
lv have momentarily subscribed, ab
solutely preclude the presentation of
NEED U. S. WHEAT
Supplies in Europe
Not Sufficient
to Last.
A. P. Dennis, special representative
of the Department of Commerce, now
In Paris, cables to the department
that he has found a tendency on the
part of boll' German and French
farmers to hold their wheat for high
er prices. This. Mr. Dennis thinks,
will insure a demand for imports of
wheat In excess of the amount indi
cated by the statistical position. The
French trade, Mr. Dennis reports,
doubts the ability of Rumania to de
liver the wheat sold" to the French gov
ernment.
The manager of the Rumanian
Farmers' Co-operative Association es
timates that the wheat In that coun
try will hardly suffice for domestic
requirements until the next harvest.
It is officially stated that there are not
more than 200.000 bushels left, lix
port restrictions are tightening. Aus
tria requires 324.000 metric tons of
Imported wheat and flour before the
next harvest. The bulk of the supply.
Mr. Dennis expects, will probably be
from the United States because of the
favorable credit terms. Czechoslo
vakia is Importing wheat and flour
from the United States and most ot
the domestic mills are closed bemuse
of the inability to compete with for
eign flour.
Another cablegram from Mr. Dennis
states that estimates of French wheat
consumption confirmed by the cereal
department of the ministry of com
merce show that consumption is de
clining slightly, now averaging 650,
000 tons a month.
Ordered to U. S.
Seven Army officers serving with
troops or as military attaches in
foreign countries have been ordered
to this city for duty with the War
Department general staff.
They are Lieut. Col. Charles C.
Allen, infantry, at Cairo, Egypt: Maj.
Edwin N. Hardy, general staff. In
Ecuador: Maj. Henry W. T. Eglin.
Coast Artillery Corps, in Hungary:
Lieut. Col. E. R. \V. McCabe, field
artillery, in Czechoslovakia: Maj.
Frederick A. Holnier, general staff, in
Sweden: Maj. James B. Ord, general
staff, in the Netherlands, and Maj.
1 vans Jones, general staff. In Switzer
land. The recall of these officers is
f?>r tin- purpose of reducing Army
SOS.
the whole economic situation In Eu- I
rope in its true llgrht.
To say the least, It means that the
delegates of the various nations who
are to participate will enter the con
r err net- hedging- and Jockeying1 for
position to perpetuate their own na
tionalistic viewpoints. At Its very
Inception the confcrence will be
hindered In discussion and decision,
ror it Is known that the mam
clauses of the Versailles treaty to
day preclude equitable adjustment of
the economic problem. Inasmuch as
a?* capping the energies
or millions of peoples who must be
~?"rt,ed to P'a>" a large part In
general adjustment.
?nh.?&d . GeorS* realties that there
should be readjustment of the sum
of German payments, but for
?moment at least It would appear
iif-i.. f ^ sacrificed this general
discussion of the Indemnities In or
from pJnSUr*f,n working delegation
rrom France. Other compromises inav
-h? n^f.e.n^effecte<1 by Po'ncare and
J>remler their recent
meeting at Boulogne, but these have
not come to light.
* * * *
If the allies enter Into the confer
ence first of all assuming the same
attitude as they showed toward the I
German delegation at Versailles, and
then In turn treat the members of the
soviet delegation from Moscow as In
feriors, each of these delegations be
ing placed in position of spectators
rather than deliberators In questions
whiah should involve the rehabilita
tion of all nations If the economlo
salvation of the continent Is Insured,
nothing will be accomplished. Neither
the Russians nor Germans are in a
mood to enter the conference with
any attitude save that of co-opera
tive endeavor. Only through such
method of endeavor will the tr*
SUS Pr?blemS of Europe be
sent?Hv??Fr??Ch' Enslish and repre
fnto th- n any other nation go
arrani-fld ?enoa- conference with pre
arranged programs to which r*??;npn
Pledged 'Th^8 w!? ^ Irrevocably
might m w!n .various governments
at home? if wm'V^mfeH*""0,"'
discussion and political maneuvering
with the economic features more or
heSrerew^.atbe- , Witl,out ?oncer[
cnere will be tremendous iockevfne
th* part of all European nations
mri?aTyaniaSeous Position, but the
hearted y?a^e?r8:iau thcory of open
nearted, cards-on-the-table sacrifl
cial negotiation will be lost sieht of
completely. The one great hope win
oe that nations will grout) for nr?n
ffvorabiantd that U,e imP?tua of those
nnon K I. 'i.4 general showdown and
open-hearted settlement will prove ?o
dangerous that the enemies ?f
dealing will take frigh^and jolnTn
A the conference Is expected to last
two months there will be plenty of
time for maneuvering, and as nations
arrayed against general economic
t!tfv?SJn2? t0 *eneral rehablli
r , are predominently strong
er. and Lloyd George is probablv the
greatest opportunist statesman in the
world today, he may swing the tides
r'Bht channels and thereby ef
fect desired ends.
* * * *
The American government must see
open-handed dealing, clear thinking
and efficacious application of sound
economic theories before a single
American dollar is cast into the hop
per. If there Is square dealing and
the statesmen of Europe prove their
earnestness, abandoning selfish na
tionalistic political theories and ac
tually get down to the business of re
ducing unneeded armies and remove
cankers conducive to later war, then
there is every reason to believe this
government will no longer stand
aloof, for in such case American
business, American ideals, as well a?
Pr-rhiSij .\0Uld sutter tremendously.
J "u?hes note is a polite warn- i
ing that Europe must mark its step.
i be a death knell to those i
S?Ln!^nSKan statesmen who are not
abreast with the new world
sentiment and*are seeking to promote
UodJfal,-USir> old dairies and na!
iS i. i iau ae:e in new Kuises.
?. /) ? u.is.believed in Washington,
as it is believed in European world
capitals which have been hoping
so much from the Genoa parley, that
the warning will be heeded.
If it is heeded and there is a new
order of things reacting to the com
mon weal, the Genoa parley will
prove a tremendous success.
h.llJ.V8 not h?eded Europe will find
herself pursuing an independent
course, one which the American gov
g)vrmaterfaiecomfoVtCOUntenanCe ?r
U. S. Navy Helps
Build Up Trade
(Continued on Third Page.)
office immediately. He stated his
case. The admiral listened. He ask
ed a few questions. The American
departed, thinking he would hear
about it in a few weeks.
He got shock NO. 2 when, the fol
lowing morning, he was called on the
telephone and requested to come to
Admiral Bristol's office. When he ap
peared Admiral Bristol informed him
that the military had withdrawn from
his warehouse and that he could re
tain It. To say that he was astound
ed was putting it mildly., it was an
example right before him of the "ac
tion" for which the American Navy
is noted.
Admiral Bristol did not resort to
lengthy diplomatic correspondence
couched In polite terms, and which
might have taken weeks. As soon
as he was apprised of the difficulty
he made an appointment to see the
Turkish officials and suggested that
there must have been some misunder
standing. He put It so plainly that
they immediately ordered the troops
withdrawn, explaining that it was a
mistake of the military commander.
? * * *
So there is example after example
of the effective work that is being
done there for American business.
And it doesn't Interfere one whit with
the military and fighting efficiency of
this little fleet. The ships are cruis
ing practically all the time, main
taining a strict war schedule in re
lief and other work.
There were formerly twelve of
these destroyers there, but when the
Navy operations wre cut down on ac
count of the reduction in expenditures
six of the vessels were sent home.
Of this order there is no complaint,
as the officers on duty there are just
as anxious to cut down the American
governmental costs as any one else.
Admiral Bristol has been there for
three years. He is eligible for a re
lief, but the work he Is doing there
Is so valuable that the Navy will not
relieve him. and the State Department
docs not want, him relieved.
THE STORY THE WEEK HAS TOLD
BY HENRY W. BUNN.
THE following is a brief summary of
tlie most important neiys of the
world for the seven days ended March
11: '
The Brltlnh Km pi re.?The world was startled
by the publication on Wednesday of the fol
lowing1 telegram from the government of India
to Mr. Montagu, British secretary of atate for
India:
"On the eve of the Greek-Turk conference, we
feel that it is our duty again to lay before your
majesty's government the intensity of feeling
in India regarding the necessity for a revision
of the Sevres treaty between Turkey and the
allies.
"The government in India is fully conscious
of the complexity of this problem, but India's
record in the war, in which Indian Moslem
soldiers participated in such great numbers,
and the support which the Indian Moslem
cause has received in the entire nation, entitle
her claim to the completest fulfillment and
justify her reasonable aspirations.
"The government in India particularly em
phasizes the necessity of guaranteeing the
neutrality of the Dardanelles and the security
of its non-Moslem peoples. It also urges
evacuation of Constantinople, sovereignty of
the sultan over holy places and restoration* of
the Turk in Thrace, also in Adrianople and
Smyrna. The government urges that these
points are of supreme importance to India."
* * 5|e *
At the urgent request of the India govern
ment for permission to publish .the telegram.
Mr. Montagu, without consulting Lloyd George
or any other member of the British govern
ment. authorized the publication, thus assum
ing chief responsibility for what is perhaps
the most extraordinary act in political his
tory?an appeal from a subordinate govern
ment of the British empire above the head of
the imperial government to the peoples of
the British empire, of France and of Italy (all
of whom are concerned in the settlement of
the Turkish question); nay, rather an appeal
to world opinion. Lloyd George took the only
possible immediate course, and In a letter of
stem rebuke demanded Mr. Montagu's resigna
tion, which was tendered and will, of course,
be accepted by the sovereign.
The request of the Delhi government for
permission to publish the telegram was only
less extraordinary than Mr. Montagu's assent
to that request. It will be variously inter
preted?as sheer funk, in face of pressure
from the Indian Moslems; as a courageous ef
fort to save the. British Raj by proclaiming
to the universal ear the only possible means
of its salvation; as treasonable impertinence,
in attempting to force the hand of the British
government on the eve of the conference of
the foreign ministers of Britain, France and
It^ly, which conference is scheduled to open
on March 22 for a settlement of near and
middle east problems. It is possible that Lord
Reading's viceregal head will fall in conse
quence of the telegram. It is even possible
that Lloyd George's official head wiil fall, for
he has unwaveringly supported Mr. Montagu's
Indian policy (a policy which Mr. Montagu's
enemies call one of opportunism, ineptitude
and timidity), and Lord Reading, a coalition
liberal, is in a very especial sense his ap
pointee.
The telegram demands more for the Turk
than even Mustapha Kemal has demanded.
c Sovereignty of the sultan over the "holy
places" is hardly consistent with tlie Inde
pendence of the kingdoms of liedjaz and
Irak, or with the British mandate over Pales
tine. What, one wonders, are the reactions
of King Hussein and King Feisal, British
proteges, to the telegram? The question is
going to be asked by tho^ge who cannot sleep
o' nights because of the portent of Pan-Islam,
whether those gentlemen may not be in cahoot
with Mustapha Kemal and the Indian Moslem
leaders, and willing to concede an imperium
in imperio to the sultan with respect to the
holy places. The correct answer is doubtless
"no," but no combination is too bizzarre to be
possible in this bizzarre age. As for Palestine,
the Zionists are in a desperate flutter?and
with good reason.
* * * *
As I said, -the foreign ministers meet on
the 22nd. Put it mildly. Lord Curzon will be
terribly embarrassed by that telegram. "What
his government was prepared to concede with
a show of magnanimity upon a rehearing of
the Turkish question cannot safely appear as
compliance with an ultimatum from the Indian
Moslems; and Is it true that the Indian Mos
lem leaders are so deeply concerned about the
treaty of Sevres and the indignities to the
Caliph? Lord Sydenham, who knows his India,
thinks not. He points out that the alliance
between the Hindu national congress and the
Moslem League dates back to 1916. He seems
to think that for propaganda purposes, for
national political ends, the Moslem leaders
have worked up hatred and distrust of the
British Raj in India by persuading the ig
norant Mohammedan masses that the British
contemplate the destruction of Islam and have
desecrated the holy places thereof. If this
view is correct, then the Delhi government
vainly entertains the "hope against hope" that
compliance with its telegraphic recommenda
tions will conciliate the Indian Moslems, will
separate them from their strange alliance with
the Hirtdus. and will restore their former
loyalty to the British crown. Not thus has
the oriental mind been known to work.
The affair of the Delhi telegram completely
overshadows all other developments of the
week. I have attempted, without expressing
iny views, to present various aspects of the
matter. Shades of Clive, Wellesley, Outraui,
ye others of that incomparable line of British
heroes, what think ye?
s|< He s|t 5}c
Sunday last detachments totaling several
hundred men of the Irish .republican army
from Clare, Cork, Tipperary and other counties
entered the city of Limerick in motor cars,
commandeered the principal hotels and oth
er buildings and made known their pur
pose "to uphold the proclamation recent
ly Issued by certain officers of the mid
Limerick brigade," which proclamation gave
the name of traitor to the members of the
provisional government of the free state.
"We," so goes the proclamation, "declare we
no longer recognize the authority of the pres
ent head of the army, and renew our alliance
to the existing Irish republic."
There were in Limerick on the insurgents'
arrival the British garrison (of what size the
dispatches do not state), awaiting evacuation
orders (it is still there), and a small force of
troops loyal to the provisional / government.
During the week the insurgents' numbers have
been increased, but the free state troops, re
inforced, now outnumber them. On Alonday
Richard Mulcahy, minister of defense of the
free state provisional government, visited
Limerick and made some kind of temporary
truce arrangements with the insurgents, who,
beyond making themselves free of living quar
ters and issuing two insolent proclamations,
seem to have done nothing in particular. The
situation, however, is obviously of an extreme
delicacy. Is It that the insurgents are merely
a small band of extremists acting absurdly?
Or is disaffection widespread in the Irish re
publican army likely at a spark to flame out
on the grand scale? There is to be, 1 under
stand, an Irish republican army convention.
Its proceedings should furnish answers to the
above questions.
What would be the consequences of a clash
in Limerick? In such case, what would be the
action of the British commander? How in
credibly embarrassing the situation to Michael
Collins. Griffith bitterly blames De Valera, a
word from whom In disapproval of the insur
gents' action might, he says, end the episode.
Meantime, there is menace of fresh trouble
along the border, and In Belfast the bombing
and sniping continue. Notwithstanding all
which, evacuation of British troops from Ire
land, which several weeks ago was ordered
suspended in consequence of the clashes on
the Ulster-free state border, has been resumed.
The house of commons has passed the Irish
Free State bill, 29a to 52.
* * * #
Finme.?Fiume is "calm"; the bullets have
stopped whizzing. "The city Is placarded with
manifestos urging calm." The enemies of the
victorious fasclstl (1. e., the great majority of
the inhabitants) have yielded to the persuasion
of the manifestos and the bullets. Whether
Flume shall remain calm depends on the ac
tion of the Italian government. Still more
important, whether Belgrade shall remain
calm depends on the action of the Italian
government.
Undoubtedly the government of Rome is
anxious to do Italy's pledged part toward
making effective the treaty of Kapallo, which
treaty calls for an independent Fiume; whether
the Italian chauvinists will fatally thwart the
intentions of the government, remains to be
seen. Fiume is not now self-governing; its
government, if it can properly be said to have
one, is a combination of a committee of fas
cistl and an Italian commissioner, sent to
pacify the situation (backed by the Italian
garrison, which lay low during the recent hos
tilities) and seek a solution.
The committee flies the Italian flag from
public buildings and heads its communications:
"Fiume, Italy." The commissioner: I think we
should give him another week to show what's
in him.
"Out where is county Guy"? Where Is
IVAnnunzIo? One seems to see the legionaries,
the fasclsti, the thugs from Trieste, standing
in the piazza, gazing toward heaven. A speck
is seen. It grows bigger. It draws nearer. It
Is above us. The air is thick with pronouncla
ruentos. The hero is here, of course, with the
nymph of his latest orisons. It must happen
that way.
Should Italy and Jugoslavia definitely fall
out over Fiume, the effect will be bad, very
bad, on the Genoa conference.
A dispatch just received indicates that the
Italian commissioner is restoring to the Fium
an majority the power usurped by the reso
lutionists.
* * * *
The (-enoii Conference.?The United States
government lias declined to participate in the
Genoa conference, for reasons of which the
chief is expressed in the following language
in the note of declination:
"It has been found Impossible to escape the
conclusion that the prospective conference is
not merely an .economic conference, as ques
tions appear to have been excluded from con
sideration without the satisfactory determina
tion of which the chief causes of economic dis
turbance must continue to operate, but is
rather a conference of a political character in
which the government of the United States
could not helpfully participate."
s|f * * *
Russia.?During the last thirty days 100,000
tons of foodstuffs and seed wheat for the
starving Russians have been delivered in
American ships at the ports of Reval, Riga.
Llbau, Danzig, Novorossiisk, Theodosia and
Odessa, but only 25,000 tons have been loaded
on cars. From 120,000 to 140,000 more tons
will arrive at the above-named ports within
the next thirty days, with no better prospect
of forwarding.
It was on March 1 that the first trainload of
corn purchased from the congressional appro
priation of $20,000,000 arrived in the "starva
tion belt," i.e., at Tzaritzin; fifty-three da\s
after the appropriation was voted.
* * * *
United State* of America.-?The Delhi tele
gram, Limerick and Fiume have completely
done for me this week; I do not feel up to
the bonus, anyway, cui bono? as it were.
On the second Gen. Coxey again made an
entry into Washington, his army numbering
about two squads. He appeared before the
House merchant marine committee and pro
posed to take over and operate 112 Shipping
Eoard vessels now idle. 'IJhe necessary funds
would be provided by the Treasury and by
popular subscription. The general has never
been at sea, but neither had Noali before his
memorable voyage.
Acute infectious jaundice is now epidemic in
the United States. Sixty-nine Yale students
are down with it. The germ is carried by
rats and its name is leptospiraicterhaemor
rhagiae. The Yale authorities are carefully
studying the symptomatology and epidemi
ology of the disease.
The board of managers of the International
Anti-Cigarette League has requested Mr. Hays
to eliminate cigarette smoking by women in
the movies except "as the accompaniment of
discredible characters.'*
Air Rights of the Owners of Private Property
Must Be Settled Before Aviation Can Progress
BY EDWARD NELSON DIXGLEY.
WHAT are some of the prac
tical problems presented
by the progress of com
mercial aviation? In a
communication to Congress on the j
12th of April, 1921, President Harding j
said: "It has become a pressing duty
of the federal government to provide
for the regulation of air navigation,
oth&rwise independent and conflict
ing legislation will be enacted by the j
various states which will hamper the j
development of aviation. The na- i
tional advisory committee of aero- !
nautics has recommended the estab
lishment of a bureau of aeronautics
in the Department of Commerce for
the regulation of air navigation, I
which recommendation ought to have
legislative approval."
The executive committee reported: !
"The federal regulation should include
the licensing of aviators,-aircraft and
airdomes; the airways should con
sist of chains of landing fields provid
ing supply and repair facilities, and
Including the necessary meteorologi
cal stations, observations and re
ports."
President Harding says: "I think
there can b# no doubt that the de
velopment of aviation will become of
great importance for the purposes of
commerce as well as for national de
fense."
* * * *
In response to these appeals a num
ber of bills have .been Introduced in
both houses of Congress attempting
to regulate civil and commercial
aviation. The tw? most talked of
bills are the Hicks bill in the'*House
and the Wadsworth bill in the Senate.
These two bills, substantially identi
cal in principle, might be united and
called the Wadsworth-Hicks bill. In
substance, it authorizes the Secretary
of Commerce to establish in the De
partment of Commerce a bureau to be
known as the bureau of civil aviation.
There is to be a commissioner of civil
aviation, an assistant commissioner
and necessary clerks and secretaries.
The Secretary of Commerce through
this bureau is (1) to foster civil avia
tion, (2) to inspect designs and con
struction. (3) to regulate the opera
tion of civil aircraft, (4) to lay out
air routes, (5) to establish landing
fields and stations, (6) to recommend
meterological service. (7) to^dissemi-1
nate information, (8) to investigate
causes of accidents. (9) to exchange
information with foreigq countries,
(10) to operate aircraft as deemed
necessary, (11) to prescribe manner
of usihg air routes, (12) to survey
and inventory industrial and civil
aeronautical resources.
Th? Secretary of Commerce Is to
prescribe rules (1) for licensing pi
lots. (2) for registration of civil air
craft. (3) for suspension of licenses,
(4) for conditions for using {ilrcraft,
(5) for prohibition of navigation over
areas specified for military, naval or
postal purposes. The Secretary ot
Commerce is to establish conditions
under which persons may be carried
and property imported and exported
in civil aircraft, into or through the
United States. This authority ex
tends to all aircraft except those of
the Army and Navy. One of the im
portant provisions is that the district
court? of the United States shall have
exclusive jurisdiction over all claims
and controversies, and "the law and
procedure to be applied shall con
form. as nearly as may be, to the.
principles applied In cases of ad
tuiially jurisdiction." The same
"1
measure of exoneration from the limi
tation of liability shall be extended
as in the case of vessels on the oceans.
* * * *
The purpose of this article Is to
point out briefly to the average
reader some of the practical and
pressing: problems which the growth
of aviation ^present, and which the
Wadsworth-Hicks bill, or any similar
bill, brings to the front. This brief
study will be confined to the com
mercial side of the problem of avia
tion.
At the outset, it must not be un
derstood these problems are entirely
novel; they are somewhat new In the
United States because this country
has been very slow in the develop
ment of commercial aviation. Many
of the problems now for the first time
are brought to the front in this coun
try by the presentation of the Wads
worth-Hicks bill, but were consider
ed in Europe twenty years ago. Nu
merous aviation conventions have
been held, and efforts have been
made to embody a set of internation
al rules and regulations, perhaps a
beginning of international law in this
regard, -to govern and control com
mercial aviation. These various con
ventions were the result of the rapid
growth of commercial aviation in
Europe.
There are regular aviation routes
for passengers and freight from Paris
to London, Brussels. Amsterdam.
Prague, Warsaw and Bilboa (Spain);
from London to Paris. Brussels and
Amsterdam, and between Hamburg,
Bremen and Berlin. One aviation
route lies from Paris to Morocco.
Egypt and Asia Minor, across the
Mediterranean sea.
France, Great Britain. Germany.
Holland. Rumania and Belgium are
granting government subsidies. In.
1920 France granted a subsidy of 33.
215,000 francs for civil aviation. Eng
land gives a bonus of 25 per cent of
operating receipts to commercial fly
ers. Eleven foreign countries, in
cluding Canada, have air boards, su
pervising all #commercial aircraft.
*, * * #
For the first time, our lawmakers
have reached the conclusion that the
federal government must take the
initiative in the matter of control and
jurisprudence of the air, before state
governments develop a short-sighted
and repressive policy anil enact laws,
through ignorance and irritation.
Already thirteen states and the Ha
waiian Islands have enacted laws gov
erning aviation to a greater or less
degree. These laws resulted, doubt
less, from the experience of states
with the 1,000 civilian planes in the
United States, carrying 225,000 pas
sengers in 1920 and flying 6,000,000
miles. It is estimated that American
planes in the United States and pos
sessions flew about 15,000,000 miles in
1920.
In seeking federal control legisla
tion to regulate commercial aviation
the first problem presented is. Who
shall control the air spaces over the
land and the rights of way in the air
where they cross different people's
land? The proposed bill gives the
Department of Commerce the right
"to lay out air routes." What is the
j>ower of Congress to legislate for
navigation of the air over private
property?
* * * *
This question has been vexing the
authorities and experts in Europe for
more than twenty years. It is suffi
cient to state that some authorities
have followed the ancient rule that
ownership of the land carries "with it
ownership to "heaven and hell." as
the phrase is; while others have fol
lowed a limited ownership, and still
others no private ownership at all in
ti*e air spaces beyond a certain limit,
on the same theory that the air is as
free as the sea beyond the three-mile
limit established hy International law.
In other words, no common conclu
sion has been reached. However, the
British air act of 1920 says that "the
absolute sovereignty and rightful
jurisdiction of his majesty extends
over the air superincumbent on all
parts of his majesty's dominions and
the territorial waters adjacent there
to." In England there Is no action
for trespass except in case of actual
wrong or damage. In practice Euro
pean countries recognize the princi
ple that ownership of the land does
not convey any exclusive right to the
free and unrestricted use of the air
space above the property.
There is no law on this point in
the United States: there are 110 court
decisions. The Wadswortli-Hicks bill,
like others of similar purpose, as
sumes that federal control of the
navigation of the air will obtain, be
cause there is no law to the contrary,
and that the situation warrants the
surrender of private or state rights
to national jurisdiction. However,
this point is doubtful. It may be con
tended that the landowner has ex
clusive control of the space above his
land and that the aircraft is a tres
passer. What then? The courts
must decide.
* * * *
Is it possible that a constitutional
amendment may be required before
federal control of the air for naviga
tion purposes is permitted? This
would retard aviation until public
opinion is aroused. To avoid these
pitfalls, if possible, the Wadsworth
Hicks bill li/nits federal control in
the air through existing constitution
al authority, confining it to aircraft
engaged in interstate and foreign
flight. If private ownership of air
space is sustained, the question of
trespass and damages might be
raised. But would not the interstate
provision of the federal Constitution
protect interstate flights? These are
Interesting problems which the courts
would decide, probably.
Obviously, unless the air space is
subject to federal sovereignty above
state sovereignty, legislation in re
gard to flying is impossible; the lay
ing out of air routes by the Depart
ment of Commerce is impossible. It
is said that the modern development
of aircraft challenges the ancient
doctrine of private ownership above
the land, and that often the right of
society Is (above private right, such
as the right of passage over naviga
ble rivers privately owned. The logic
of the situation seems to be that the
public have certain rights in space
over private property when their ex
ercise does not interfere with the sur
face owner.
Early European conventions fol
lowed the maritime law and assumed
the air is free and that sovereignty
extends"only to the air spaces that
can be occupied, w^iile the air spaces
above are free. This Is the theory of
the Wadsworth-Hicks bill, which ap
plies maritime law to all cases of
dispute and damage. However, the
rule in the United States must be es
tablished- by the courts. It may give
rise to another controversy between
federal rights and state rights.
If the doctrine of private ownership
and state sovereignty is swept away
and federal jurisdiction over the air
spaces is established it will be in line
with other recent court decisions.
The Supreme Court only a few weeks
ago established the right of the fed
eral Interstate Commerce Commission
to make rates even within lh? states
In defiance of state commissions. This
is the tendency of the times.% By
analogy the federal sovereignty over
the air spaces abovip might well be
established, even against state sov
ereignty or private ownership above
the land.
* * * ?
Then there remains the question of
customs duties, of blockade and of
smuggling. The Wadswortli-Hicks
bill gives the Secretary of Commerce
the right "to establish the conditions
under which persons may be carried
and property imported and exported
in civil aircraft from, into or through
the United States, its territories and
dependencies." This Involves the
question of customs duties and kin
dred matters. Would this result in
the establishment of a police patrol
of airships all along the seacoast and
the northern and southern borders?
Would there be aerial customhouses,
aerial collectors and aerial police to
stop smuggling?
If federal jurisdiction of the air
spaces is established and air routes
are laid out, would there be imagi
nary lines rising above the three
mile limit along our coasts and on
the Canadian and Mexican borders?
Would there be air routes marked out
by balloons or air floats, and imagi
nary state lines marked by imaginary
or real floats?
These are some of the problems
which may arise out of the progress
of modern aerial navigation. Federal
control of commercial aviation is as
necessary as federal control of inter
state and foreign commerce in land
or sea. Nevertheless, the new prob
lems will tax the skill and ingenuity
of statesmen and lawyers. But. like
all the new problems of the century,
they will be met and solved with a
single purpose of giving justice and
security to all concerned, on the the
ory that all laws and regulations must
be In harmony with the growth and
progress of humanity.
Proposes Screens
At Monument Top
To the Editor of The Star:
As a veteran house painter, I know
that the slogan of ."safety first" has
to be strictly adhered to. Being ac
customed to high altitudes, the paint
er notices danger which others per
haps would not. and very naturally so.
During a recent visit to your beau
tiful city I took my little grand
daughter and went to the top of
Washington Monument, and was sur
prised to find that the openings were,
as you know, entirely open and any
one so disposed could very easily
throw themselves from that awful
height. There are those who feel an
insane desire to jump from a great
height, and have done so.
As a precaution and at a compara
tively small outlay there could t>e
heavy wire ^screens placed across
each opening and securely fastened
to the wall. The meshes could be of
large size so as not to obstruct the
view to any extent.
The laws pertaining to public places
are in many cases entirely disregard
ed by "those to whom the people look
for safety, and the plaintiff wins the
suit. These thoughts came to^my
mind when I lifted the child up to
b. ?avec?through j ^|jp^ENAVl ALT "
ft
AMERICAN PEOPLE ROBBED
OF HALF BILLION DOLLARS
Yearly Toll by Sales of Worthless Slock,
Which Traffic Congress Plans to
Help States Stop.
nv WILL P. KENNEDY.
WHILE Congress has been
working* for more than a
year to put through a new
tariff bill that will raise
enough money to meet absolutely
necessary expenses; while a bonus for
the former service men has been de
layed by Inability of the cleverest
financiers to devise a way to pay it,
and while industry generally on which
hundreds of thousands of persons are
dependent for their bread and butter
lias been slowed down for want of
capital, crooks and swindlers are tak
ing 00.000.000 In cold cash every
year out of t^e savings of the people
through the sale of fraudulent and
worthless securities. Uncle Sam has
decided that this must stop, not only
for the protection of those who are
so susceptible to the glib arguments
and alluring: circulars of the slick
and unscrupulous fake promoters, but
equally for the conservation of the
ready cash, so that it may go Into the
promotion of legitimate enterprise,
through the development of which
employment may be provided for
every citizen.
Under a special rule, a national
"blue-sky" bill will probably be
passed by the House during the com
ing week which has the support of
the Treasury Department, the Post
office Department, the investment
bankers of the country, the National
Association of Securities Commis
sioners. representing thirty-nine
states,, and of public sentiment gener
ally. This measure, "to prevent the
use of the United States mails and
other agencies of interstate commerce
for transporting and for promoting or
procuring the sale of securities con
trary to the laws of the states," is
fathered by Representative Edward
K. Denison of Illinois, and was favor
ably reported by the House commit
tee on interstate and foreign com
merce. Representative Denison had
a hearing before the rules committee
Thursday, and has received assur
ances that this measure will be
brought up very soon under a special
rule, making it immediately in order
for passage by the House.
* * * *
While this is designed as a federal
law, it makes no effort to invade the
police power of the states, but to help
those states that help themselves,
backing them up and preventing the
use of federal agencies in interstate
commerce to accomplish within the
states what the states themselves
have forbidden by statutes.
forty-two states now have fraudu
lent securities laws, thirty-nine of
them real "blue-sky" lawtf under
which the fake stock promoter can
not operate -within the state, and
three-*New Tork. N'civ Jersey and
?Maryland?have enacted the tvpe of
laws known as fraud acts, to "punish
fraud after it has been committed in
connection with the sale of securi
ties, rather than laws to prevent the
sale of fraudulent securities \ll the
states, in fact, except Colorado, Con
necticut, Delaware. Nevada, Pennsyl
vania and Washington, now have such
* X?-- 7he last leS'slature of the state
of W ashington passed a blue-sky law,
but it was vetoed'by the governor be
cause it was not as comprehensive a=
he thought it should be.
Officials charged with the admin
istration of these state blue-skv laws
have found that there are regular
gangs who prey upon the public bv
the sale of fraudulent and worthless
securities. There are thousands of
these professional crooks, many of
whom have court records and "who
are experts in the organization and
exploitation of all manner of g-et-rich
quick concerns. Thev use expert
salesmen, work out all sorts of plaus
ible and attractive schemes which
promise fabulous returns on invested
capital, and rob the people of their
savings. Their victims are usually
men and women of small means and
little business experience, and who
have no means of judging the value
of a security.
* * ili
The National Capital has been a
happy and extraordinarily profitable
hunting ground for these securities
sharks, because there has been no
law to prevent their operations and
because there is an army of medium
salaried workers here who get paid
at regular Intervals. Investment
bankers and securities brokers gave
amazing testimony during special
hearings before the House District
committee, which deferred action
pending the passage of the federal
statute. Representative Denison, ap
preciating that the conditions in the
National Capital are extraordinarily
brazen and scandalous and that the
government employes are being
robbed ruthlessly, is now drafting a
bill specially applicable to the Dis
trict which will supplement the gen
eral law. 6
\Vhue these fly-by-night concerns
arc generally unable to qualify their
offerings under the securities laws of
most of the states, yet the states
having done the best thev could to
protect their citizens, are still at the
mercy of the sharpers. The agents
of the get-rich-quick companies who
cannot go into these states and sell
their paper within the jurisdiction of
the state authorities boldly take ad
vantage of the immunities of inter
state commerce. Having organized
their companies with Imaginary a<
ereat quantities of
alluring circulars, prospectuses and
I^ S;^K.ivins descrip
'i?n? their properties and pros
pects of fabulous returns, and flood
^ states with such literature
through the United StAtes mall* and
other agencies of interstate com
merce. These promoters have mail
ing" lists for every state, anrl often
for every county, and, fearing: prose
cution if their agents enter the state*
where their securities cannot be qual
ified. they carry on the greater part
of their fraudulent promotions as ;i
mail-order business.
* # * *
So it will be seen that while the
state laws are all right the crooks
have been evading* them. The state
securities officials banded themselves
Into a national body to fight this
evil, and have been co-operating with
Representative Denison In perfecting
this legislation. .T. Weston Allen, irt
j torney genera] of Massachusetts, has
been very helpful to Representative
Denison, having1 been responsible for
the enactment of the excellent blue
sky law passed by Massachusetts
last year. After the Tonzl blow-up.
Vice President Coolidge, then Gov
ernor of Massachusetts, appointed a
commission, headed by Mr. Allen, to
study the situation, and the blue-sky
law resulted.
Michigan Is another good example
of how the states are co-operating.
Michigan has a good blue-sky law.
The president of the national organi
zation of state securities commission
ers Is Hezeigah DufT. who Is officer
in charge of enforcement of the Mich
igan law. and he has been assisting
Representative Denison In every way
possible.
So the bill about to be passed j?y
the House fortifies the states in their
efforts to stamp out the business of
those leeching upon the small wag.*
earners. Tt does two things?first. It
forbids the transportation by agen
cies of interstate commerce, mails,
express, railroads, etc., of any stock"
or securities into any state the sale
of which stocks or securities would
be unlawful within that state: sec
ond, it forbids the sending* by agen
cies of interstate commerce any cir
culars. prospectuses or pamphlets pro
moting the sale of any stock that
could not be sold by agents within
the state.
* * * *
It is the official estimate of Treas
ury officials that in this way $30f>.
000.000 a year is taken from the
pockets of the people. The Treasury
also estimates that $400,000,000 worth
of Liberty bonds were taken from
purchasers in some western states in
a few months in exchange for worth
less securities that promised large re
turns. An Oklahoma newspaper,
after a careful survey, stated that the
stock promoting companies produced
less than two one-thousandths of l
per cent of all the oil produced there*
in that year. For every $535 worth
of capitalization only $1 worth of oil
was produced. There are 44.*00 com
panies whose stocks are worthless
and obsolete listed in books available
to bankers. This shows the scope of
the evil which Congress proposes to.
eradicate.
Congress has taken to the Dcniso
bill especially because, different from
previously proposed legislation of
this sort. It does not call for any
commission, no new jobs are pro
vided for, and there is no cost what
ever for enforcement. It utilizes and
puts life into the state laws. The
enforcement Is placed in the hand's r.f
the Attorney General, heavy penalties
are provided for infringements ami
specific civil remedies are given. If
fraudulent or worthless stock is sold
or sent or tendered, tlie person buy
ing can recover under this law not
only the money he put into that stock
but also his expenses for bringing ac
tion. Tt is generally recognized in
Congress that this legislation hn?
plenty of good sharp teeth.
The broad principle underlying the
till is that the several states ought
to be permitted to protect their own
citizens from the sale of fraudulent
and worthless securities in such a
manner as they think best. And
since the federal agencies?the mails
and other agencies of interstate com
merce?are being used to violate,
evade and practically nullify the
state securities laws, the federal gov
ernment ought to co-operate with the
several states to the extent of pre
venting the use of its agencies for
promoting: the sale of fraudulent se
curities in the different states con-.
trary to the laws ofsucli states.
* * # *
In the committee's report on this
measure are quoted a number of prec
edents for legislation of this kind,
including the national bankruptcy
act. the Webb-Kenyon act, the Reed
bone-dry amendment, the migratory
bird treaty act, etc.
It is emphasized in this connection
that conditions connected with or
growing: out of the world war have
greatly facilitated the increasing
evils connected with the promotion
of fraudulent and unsubstantial se
curities. The people who, through,
patriotism, became educated and ac
customed to investing, owning and.
dealing* in government bonds, found
it an easy step to investments and:
dealings in industrial stocks ami
bonds which promised much larger
returns. When hundreds and thou-'
sands got "stuck" it created a preju
dice against legitimate promotions
and tended to keep money out of in
dustrial enterprises which needed
financing as never before during the
after-war reconstruction period.
There is considerable organized ef
fort. even from those who previously
opposed the "blue-sky" legislation, to
have the Denison bill passed, and
there has developed no real opposi~
tion to it. Congress feels very hope
ful of wiping out the fake stock
evil, against which the Treasury De
partment has issued repeated circu
lar warnings.
Ford Drops Proposed Project
For Control of His Railroad
Henry Ford, whose purchase and i
operation of the Detroit, Toledo and
Ironton railroad has been followed
with considerable interest in the rail
road world, has decided to modify his
original plan for Its corporate reor
ganization, according to indications
given by Interstate Commerce Com
mission records.
Shortly after purchasing the rail
road the automobile manufacturer or
ganized a new company, called the
Detroit and Ironton. for which he se
cured Interstate Commerce Commis
sion permission to issue SI.000.000 in
capital stock, and to build a new line
of railroad, in Wayne county. Mich.,
supplementing the original system. In
addition, Mr. Ford sought permission
to tu'rn thfe "entire properties of the
Detroit, Toledo and. Ironton over to
the new corporation under lease, and
to have the new company guarantee
outstanding security issues of the old
railroad.
Certain minority stockholders of the
old company opposed to Mr. Ford's
reorganization plans entered objec
tion In the commission's Investiga
tion of the matUr and the comrali
sion recently Issued an order statin*
that "the applicant (Air. Ford) re
quested that these matters (tne
granting of the lease) be held in*
abeyance, and accordingly no action,
has been taken."
The commission also noted that "it'
does not appear that the applicant ^
desires to press the matter to a con
clusion at this tttne, and in order to
close the record applications will be
dismissed."
The action of the commission conse
quently leaves the Ford railroad prop
erties exactly in the situation that
they were in when Mr. Ford acquired^
them, and in case he desires to lease-*
the Detroit. Toledo and fronton to the
Detroit and lronton it will be nocvs^
sary for him to make a new applica
tion.
The Michigan public utilities com
mission coincided with the Interstate
Commerce Commission in giving Mr.
Ford tjie necessary permission to is-*
sue securities for the new company,.'
and to permit its construction of a
new line. The federal commission has
it was pointed out at its office today.*
not passed upon the public policy ?#
the advisability of allowing Mr. For4
to makt the transfer.

xml | txt