Evening star. [volume], December 31, 1933, Page A-4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

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' President of U. S. Chamber
i
l • of Commerce Sees Defi
j f nite Recovery Ahead.
fEditor's note: How is 1934 to be
viewed economically? ' Our people
are looking forward to the future
with confidence" is the conclusion
here in an article by one of the
nation's business leaders, written at
the request of the Associated Press.)
BY HENRY I. HARRIMAN,
1 Frtsident of the Chamber of Commerce of
the United States
CCopyriKht. licit, by the Associated Press 1
New Year is the time for frank rn
praisal of the year that is past and for
the expression of our hopes and fears
for the year that Is to come.
’ It is fair to say that our appraisal
( of the present business situation indi
i cates marked progress toward business
I recovery during 1933. and gives reason
' to hope for still further progress in
the year that is before us.
We now have evidence that there
has been Improvement in business- ac
tivity. not only In the United States,
but among all the great nations of the
world.
In aggregate volume, the commerce
of 60 nations dropped in the early
months of this year to approximately
68 per cent ot its level in 1929. and in
aggregate value to something like 32
per cent of its value four years before.
That proved to be the low point.
The volume of world commerce has
ever since gradually increased, even
I against sea onal trends, to approxi
1 mately "5 per cent of its 1929 amount.
Upward Movement Persists.
Meanwhile, tha general level of
World prices has shown a more pro
{ longed period of stability than has pre
1 viousiy appeared in the history of the
long decline since the end of 1929. and
this period of stability has now ended,
rot as always before in these years of
i depression with a fresh inclination
I downward, but with an inclination up
( ward. This upward movement still
persists.
Such a course in world economic
evrntr augury well for the opportunity
to ir.eke further progress ih r934, out
it is doubly significant because ihe
progress which has been recorded has
been against artificial obstacles which
the government? of the world kept pil
ing hifrher and higher.
TartiTs imposed for purposes of ex
clusion. preferences, quotas, uncertain
ties caused bv disturbed political con
dliions and controlled exchanges arc
t-cme of ihe obstacles.
That world commerce should suffer
• H i fWe -nlt'oc o nH ghntr oping clicr
gcsts there ;s in the improvement that
ffcncmir strength which always ap*
rcsrs when the processes of recovery
have replaced those of depression.
Encouragement Abroad.
If we look beyond our own borders
can find encouragement in the evi
dence of improvement in rountries
which are our important customers.
For a succession of months, tine ton
; rage of vessels arriving in the United
Kingdom has risen, and for 10 consecu
tive months unemployment in England
h?". been steadily declining
New British capital issues have now
reached a point for this year that places
. Them above either of the two preceding
• years, and surely suggest returning con
fidence.
Despite internal difficulties, French
imports and exports have advanced.
German steel works have been produc
ing at a rate indicating a substantial
degree of recovery in that basic in
dustry.
Some of the industries of Italy show
improvement Shipping activity in ports
cf Japan will probably make an all
time record during the present year.
In Canada, industrial employment
has increased against the seasonal trend
end the Index of physical volume of
business is at least 30 per cent, above
the low point early in the year,
Kcreign Trade Recovers.
Our own foreign trade is a part of
t’.i“ stcry of world trade. There is now
e idence of substantial and sustained
recovery from the low level of 1932. i
Out of the perplexity of conflicting
factors affecting our foreign commercial
relations there stands forth the welcome
fact that our foreign trade is better
than it was.
At least 60 per cent of the import
. ant items among our exports show in
* creases, and the percentage of increase
in imports is even higher.
Furthermore, the prices at which our
goods go abroad as well as the prices
we are paying for imports have risen
In a manner to suggest that we are on
our way toward normal venditions of
commerce.
Our cotton exports in November went
i abroad at an average price 45 per cent
I above the average price for cotton ex
' ports earlier in the year and 35 per
cent over the average export price for
November of last year.
. Our exports of hams and shoulders
show ed an Increased price of 40 per cent.
1 Cur exports of wheat in November had
I an average price 80 per cent higher
then in March. Copper is moving
forward at an increased price and in
increased volume.
On the oi her hand, we are paying
100 per cent more for rubber and tin,
’<0 per cent more for hides and wool,
and 50 per cent more for silk.
Bank Figures Improve.
I am dwelling upon world trade and;
«ur part in it because it is in that di
I rection we most clearly find indications j
of the true trends oi world economic |
events.
For such an extensive country as ours.
%ith the diverse interests of its regions
and communities, il is difficult to find
jrcact standards of measurements that
are at once Nation-wide and accurate.
We ran. however, scan the volume
| fcf business of more than 250 of our
important cities, thanks to data col
lected by our reserve banks.
' These figures indicate widespread im
provements. and when we compare fig
ures for December. 1933. with those lor
December. 1932. we realize the great
progress that has b:en made.
• In more than 175 of these cities, the
figures for December show a larger
Volume of business than in December.
1932. and in almost all of the other
Cities there are particular local reasons
lor their failure to move forward.
' Many problems must be solved before
* real lasting prosperity returns to this
country, but much progress has been
Jrade during 1933
A psychology of hope has replaced a
psychology of fear, and our people are
looKing forward to the future with con
fidence.
•MRS. R00SEVELTT0 SPEAK
ON 'OLD AGE SECURITY’
Senators Copeland and Capper and
! ? Abraham Epstein Also Will
! >
Address Meeting.
I w Mrs Franklin D. Roosevelt. Senators
i ^toval S Copeland and Arthur Capper
[ and Abraham Epstein, secretary of the
I American Association of Social Security,
j. twill be the principal speakers Friday
•night at a ioint meeting on "old age
security for the District. The meet
! 'Ing will be held at the United Slates
Chamber of Commerce Building.
; The meeting will be under the aus
jpices of the Council of Social Agencies,
the Monday Evening Club and the
'Citizens’ Com.n.ttee on Old Age Se
curity for the District. This meeting
will take the place of the regular
i imonthly meeting of the Council of So
1 <ial Agencies.
i ' A bill providing for old age pensions
Iln the District is now pending in Con
fess.
f
I
Fletcher Declares Inflation
of Boom Years Was Ruinous
—
Senate Banking Chairman
Holds Policy Prior to
1929 “Criminal”
Praises Administration's
Expenditures as
Constructive.
BY JAMES MARTIN MILLER.
Chairman Fletcher of the Senate
| Banking and Cuirency Committee yes
terday gave the following interview in
condemnation of the inflation that al
most wrecked this country. The Sen
ator is talking about the inflation dur
ing the so-called "prosperity" years.
: which suddenly collapsed in October.
1929 Senator Fletcher said:
"There is a great deal of talk these
days about inflation and deflation
among all classes of people everywhere.
But these uni-ersal conversations hinge
upon the monetary system of the
United States. It would be well for the
people to bear in mind in their deliber
ations and conversations the inflation
this country passed through during the
several years ending late in 1929. This
was the most criminal and ruinous in
flation the world has ever seen in all
history. Th«n suddenly came the ln
I evitable catastrophe of deflation under
! which we are now groaning, leaving
| millions unemployed and in poverty and
want.
"Every on? and all of us were af
fected whether we specialized in stocks
or not. But thanks to the herculean
1 efforts cf President Roosevelt and his
I administration millions of the unem
I ployed have b?en furnished opportuni
, ties to earn an honest living. At the
| highest possible cost to the Govern
! ment hundreds of millions spent in
i public improvements and enterprises
I will not approach the billions expended
1 some fifteen years ago in the World
! War. forced by foreign countries. Be
sides the billions we spent outright in
that war we loaned to foreign nation*
over >10 000.000.000 with which to
finance the most murderous and de-1
structive war in all history.
"When the t'g -drives’ of 1917 and
1918 were on in every State, demand
ing of you. reader, to buv 'Liberty' and
other bond issues the big bankers as
well as certain political leaders were
not warning you about the huge debt
Uncle Sam was piling up for you and
your children ana your children's chil
dren to pay. We plunged and plunged
and plunged. .
Plunging Into Debt.
me luingu imuons uuniig me
period w e were handing out money to
them by the billions were then very
appreciative in their profusion of thanks.
Now, with one or two minor excep- :
tions each and every one of these na
tions have practically repudiated their
enormous debts to us and are refusing
to pay the interest, while at the same
time some of these larger nations are
spending hundreds of millions in creat
ing new armies, navies and fighting air
craft. And there Is reason to believe
the keenest observers of the world
when they tell us that the nations of
Europe and the Orient are now rapidly
preparing for another World War.
“Surely Uncle Sam, the easy and
guillable. will not again be so foolish
as to finance their war and send mil
lions of our young men to them as
soldiers? We may not spend in the
recovery’ program of the President and
Congress one-third as much as the
$30,000,000,000. or thereabouts, v.e spent
in the World War to ‘make the world
safe for democracy,' as we were told
with emphasis. Besides those billions
we wasted, we sent 2.000.000 men to
the battle fields of Europe where tens
of thousands of them were slaughtered
and died. In addition to this tens of
other thousand that became insane or
crippled for life and will be during
iheir lives are direct charges upon the
government. Let some of the badlv
discredited big bankers, and certain
others who are warning us about 'the
big debt we are piling up In the recov
ery program.' think over their antics !
in Uncle Sam's $30,000,000,000 war of
some 15 years ago and let every reader |
ponder over it.
'Certain New York big bankers more
than doubled their vast fortunes during
that war as fiscal agents for certain
foreign countries in handling a large
share of the billions the American peo
ple took from their savings to finance
the war to the extent of $30,000,000,- j
000.
Our Largest Investment.
“This is by many times the biggest
investment Uncle Sam ever made. These
big bankers did not warn you at that
time about ‘the great debt Uncle Sam
is piling up for future generations to
pay.’ They got a rake off on much
of the money you loaned the govern
ment through the purchase of bonds.
Now they do not get one penny of com
mission on the money expended in the
recovery program. Instead of 'saving
democracy’ the World War very nearly
destroyed'it and very nearly annihilated
every nation, big and little.
' The recovery enterprises of the Gov- j
emment. at this time, are more impor
tant and necessary than anything else
before us and It, In reality, is a gigan
tic movement to save democracy and
our civilization and the indications are
that the people are patriotically stand
ing back of the President and Congress,
__II_..t M/vlUinn TVto of.
It KOI Ult OO Ui pui vuiuii |/vhv*vm. * --
flcial reports and the press are keeping
our 130.000.000 of people Informed
about the millions that have already ;
been put to work on constructive and :
useful enterprises that will add to the
permanent wealth of the country while
at the same time feeding and clothing
families and giving purchasing power j
for the recovery of Industry and the;
saving of homes from foreclosure of
mortgages and delinquent taxes.
“One of the most pathetic aspects cf
this depression Is that so many millions
of men f.nd a omen willing to work have
wasted three or four years of their lives
in enforced idleness; particularly those
between 21 and 45. the most productive j
years of their lives. I wonder if we
realize what the recovery program is
accomplishing in gradually bringing i
about a normal prosperity that will en- j
able people to live by the dignity of
honest labor? Besides it is a move to
save American institutions. Does any
one imagine for a moment that the
American people are of such a charac
ter that they would prefer the British
‘dole’ system of giving a niggardly pit
tance outright to the people, as to pau
pers, rather than to receive a living wage
for doing constructive and useful work?
I am safe in saying that our people do
not want to be treated as the unfortu
nates in the alms houses. They want
honest employment. Every citizen who
supports the recovery program is just
as patriotic as in giving his support in
time of war.
“Champion Inflationists.”
‘‘X have just touched upon inflation
and I want to elaborate that a little.
The champion inflationists of the world
were the Wall Street bankers and bro
kers. It ill becomes the mto shout in
flationist ct any one. In the recent
investigation of the big bankers by the
Senate Committee on Banking and
Currency it was established that one
New York banker of high respectability’
bought a certain slock for 20 cents a
share and sold it to the gullible public
for S5G a share. This was 230 times
as much as the stock costs this arm.
Have such men any right to ask for an
’honer-t' dollar any mere than A1
Capone has?
Top stork of the National City Bank
of New York, with a par value of $20
a share was inflated during the boom
years to S600 a share. The Chase Na
tional Bank stock and others mlide
pretty nearly the same showing in in
flation during the boasted 'prosperous'
years, and in deflation since the so
called 'prosperity’ collapsed in October.
1929. The stock of industrial concerns.
_SENATOR FLETCHER.
big and little, was boomed, or Inflated,
in the satpe way. ’Holding' companies
were organized by them and heavily
capitalized, to manipulate the stock of
their corporations, and through these
‘holding’ companies the anti-trust laws
could be more easily violated. Then
‘Investment’ trusts were organized on a
vast scale to deal, or rather speculate.
In stocks. The stock, In all of these,
generally speaking, was sold to the pub
lic and, rest assured, at Inflated prices.
“Watered” Stocks.
“The laundries that do the family
washing, the bakeries that bake your
bread, the groceries that sell you food,
the dairy concerns that sell you milk,
the department store, the apartment
house, or hotel In which you live, the
telephone company, the electric and gas
company, the aluminum company, and
practically every kind of business has
been organized Into corporations, and
you can rely upon It that the stock and
bond Issues of all of these companies,
with rare exceptions, was viciously
’watered’ or Inflated. Some of these
companies were simply promotion
schemes organized for the purpose of
selling stocks and often bowds. with no
Idea on the part of the swindling pro
moters of conducting an Industrial plant
to give men employment and promote
industry.
"When the stocks and bonds in such
promotion schemes were unloaded on
the public at boom prices the promoters
were through, the plant shut down. II
indeed it had ever started production,
and little or nothing was ever realized
from these wrecks, Much of this stork
was listed on the Stock Exchanges
throughout the country and nearly
every large city has a Stock Exchange
Most of the towns In every State of
15,000 population up each have a stock
broker's office, with 'leased wires from
New York and members of the New
York Stock Exchange' as their office
signs proclaim.
"Some offices such as in Detroit
Washington, Omaha, Los Angeles etc
each have a dozen or more of these
brokers' offices. They are always In
the most central locations and where
the rent is nighest. They are expen
sively furnished, have forces of sta
tisticians. cashiers and office forces and
a manager who often commands an
annual salary of $10,000 a vear or more
Leased wires to New York are a con
siderable daily overhead. Now, who
pays this tremendous overhead’ The
customers who buy stock and bonds of
course.
•'Some one may say: “Oh. the price
of stocks and bonds and the manipu
lation of them do not affect me In the
least, for I never own any or speculate
in them.
Holds All Are Affected.
"As a matter ol fact every person
who uses electric light, gas. telephone,
food products, clothing and. in fact
"“Vly every necessity of life pav* the
stock!*ndS °n the inflated or watered
♦JSom?i rlch nun' UP t0 the ‘ime of
preferred to keep their
fortunes of a million or more
,Lhe l.cunfines of a safety vault
!" thf sll“Pe of dividend-paying stocks
and interest-paying bonds. And you
reader whether you were ever inter
ested in the stock market or not you
paid all of this, in addition to the
Ceiy salaries of the presidents of
these corporations. And some of these
execuUces received as much as *1 000 -
Lon °to ThT “ >,ear in bonuses In addi
♦ h>i1*t0*th»lr.i?alanes! You' re»der, and
the rest of the 130.000.000 of our peo
nLiriP? d eVery dcilar of this when you
paid your gas, ycur electric light your
telephone and all the other bills you
KrlS'clV”'”11"*' com'»™
our big jobs now is to enact legislation
to regulate and control them: I mean
laws that will have 'teeth' in them
and minus -jokers.’ And that is what
we propose to have during the next
r.ear or,.so- J venture that President
Roosevelt and Congress, with people
b£^L then?',wi11 Put -'uch laws into
effect long before the present presi
dential term of a short four years is
ended. The banking act of the last
Congress now a law. prohibits banks
from dealing in stocks as they have
been doing The stock brokers will in
future take rare of the stock and bond
business and they will have to toe the
mark, as will the stock exchanges after
we are through with our present legisla
tive program.
i omroi rrancied.
"I venture that in the future the
swindling stock and bond promoters
will not be permitted to unload their
watered and worthless issue to the pub
lic through the 'investment' bankers,
or through solicitors in personal calls,
as they have been doing. Lobbyists
and corporation lawyers have heretofore
had a big voice in the framing of laws
to 'regulate' the corporations. These
highly paid .servants and tools of the
big interest have no Influence with the
present administration. Such men
have never before been so discredited
as now and their 'game' is ended.
“The President’s embargo on gold and
the plan for the purchase of freshly
mined gold, as wpll as his fixing a fair
price for newlv mined silver has had
a very stimulating effect. Tens of
thousands of men. that were unem
ployed. are now engaged in prospect
ing for gold and silver In the former
mining States. Gold and silver mines
that have been shut down for years
are now alive with activity. The gold
and silver being produced is adding
wealth to the country besides furnish
ing: employment to men giving: them
purchasing power for themselves and
their families, and to help Industry In
every line.
“It is reasonable to say. with the In
formation we have, that this adminis
tration is in a determined fight, not
only to save our democratic form of
government. but to preserve American
institutions and save us from the hor
rors of Facism or Communism. Regard
less of partisan politics, the indications
in every State are positive that the
neople as a whole are determined to
head off ruin and are with the Presi
dent and the Congress In the sincere
efforts to bring about a full recovery,
now progressing gradually but surelv,”
said Senator Fletcher in conclusion.’’
ECONOMIST DIES
Carl Joseph Melchior Has Advised
German Delegations.
HAMBURG. Germany, December 30
t/45).—Carl Joseph Melchior, a partner
in the M. M. Warburg Company Bank
and one of Germany's lee din? -cono
mists, died today at the age of 6i.
H" had advised German delegates at
every conference from Versailles to
Lausanne,
i
SWITZS' FA1E MAY
HINGEJNJOOKS
French Find What May Be
New Evidence in Spy
Case.
By the Associated Press.
PARIS, December 30.—The fate of
Mr. and Mrs. Robert Gordon Swltz,
Americans who are accused, with eight
others, of being members of an inter
national spy syndicate, may depend
upon little gray notebooks seized by
French police today during a search of
their hotel room and baggage.
Investigating Magistrate Benon took
the books and many other papers and
documents for study, prior to deciding
whether the Americans will be released
or held for trial, which was expected to
take place within a week.
Switz, 29-year-old native of East
Orange. N. J., and his wife, the former
Margerle Tilley of New York, watched
the authorities rummaging through
their belongings.
Search Held Illegal.
They won a point when the magis
trate agreed to regard as illegal the
police search made at the time of their
arrest, more than a week ago, when
officials said they found four hidden
documents. The Americans main
tained these papers were ‘'planted”
against them.
"I am sure everything will come out
all right,” said Mrs. Switz, as she
calmly watched the search. Switz ap
pared nervous. At a hearing before
Benon previously, both asserted they
were Innocent.
All their possessions were taken from
the hotel to the court house, except
articles of clothing which were sent to
their celli In the Sante and La Petite
Roquette Prisons, which the Ameri
cans have complained are cold.
Robert D. Murphy, the American
consul, and B F. Conner, the American
counsel for Mr. and Mrg. Swltl, assured
themselves that the rights of the couple
were protected. Two French attorneys
were present during the search.
HOPE TO UNRAVEL PLOT.
Finnish Officials Say Girt Confessed
Poisoning Officer.
HELSINGFORS, Finland, December
30 —On the purported confession
of r servant girl that she poisoned
Lieut. Col. Walter Asplund. Finnish
secret service operatives today based
liope of unraveling what they termed
an espionage conspiracy to kill high
officials of the army.
Lieut. Col. Asplund died last April
and hia body was exhumed for an
autopsy. The servant, Jenny Anttlla,
was quoted by authorities as admitting
she placed poison given her by a Soviet
officer, Stenji, in a drink in Asplund s
kitchen.
Her sweetheart, Kaarlo Sirenius, po
lice said the girl confessed, served It to
the officer,
The possibility that other deaths in
government technical groups, including
that of a janitor In a bullet factory
where important documents were re
ported to have disappeared, were due to
poison is being Investigated.
In connection with another alleged
i spy plot Mr. and Mrs. Arvid Jacobson
| of Michigan are being held in jail here.
SHIPS BATTLE GALES
ON PACIFIC COAST
liner Yale Far Behind Schedule.
Guard Cutteri Are Held
in Beadiness.
_
By the Associated Press.
SAN FRANCISCO. December 30 —
Ships battled turbulent seas off the
Pacific Coast today as sharp gales, ac
companied by rains, lashed land and
sea
The coastwise liner Yale, outbound
from San Francisco for Los Angeles,
was reported more than 20 hours behind
schedule and proceeding at a reduced
speed of four knots an hour. Other
vessels were In similar difficulty and
Coast Guard cutters at San Pedro were
held In readiness for an emergency.
Though storm conditions, which have
caused severe floods In the Pacific
Northwest, were easing. California was
drenched by rain, changing to snow in
the high mountains.
The Washington State Legislature di
rected the Emergency Relief Commis
sion to allocate $250,00 to flood-har
assed counties.
CONSTRUCTION GAINS
IN ATLANTA DISTRICT
Contract Awards at Highest Level
in More Than Three
. Years.
By the Associated Press.
ATLANTA, December 30.—Construc
tion contract awards in the sixth Fed
eral Reserve district during November
were "at the highest level In more than
three years," the monthly review of
business conditions In the district, is
sued by the Federal Reserve Bank of
Atlanta, said today.
The review said "the value of con
tract awards in the sixth district, indi
cated by statistics compiled by the P.
W. Dodge Corporation and divided into
district totals by the Federal Reserve
Board's division of research and statis
tics. was two and one-half times as
large in November as in October, nearly
16 times the low total for April, and the
largest total tor any month since Au
gust, 1929. The large gain was due
principally to public works contracts In
Alabama and Tennessee. For the 11
months of 1933 total contracts In the
district were 36.3 per cent, residential
contracts were 18.7 per cent, and other
contracts 40.2 per cent greater than in
that part of 1932. For this period State
totals for Alabama, Florida, Louisiana
and East Tennessee were also larger
than a year ago.”
Although department store sales .in
the district declined from October to
November, “as they have always done,”
they were 12 6 per cent greater in dollar
volume than In November, 1932.
Dally average production of pig iron
in Alabama declined 12.3 per cent com
pared with October, but was 63.5 per
cent greater than In November, 1932.
$20,000 IS*AWARDED
Judgment Entered Against W. C.
Durant on Stock Account.
TRENTON, December 30 </P>.—A final
award of $20,000 was made by Circuit
Judge Rulif V. Lawrence today to Ben
jamin Block & Co., New York brokers,
against W. C. Durant, automobile manu
facturer, in the Supreme Court action
growing out of the handling of Durant's
margin account in 1930.
In October. >1930. the brokers began
selling out Durant's account, which at
times had amounted to as much as
$3,000,000 and when a bad break oc
curred in the market, October 10, de
manded additional margin.
Durant provided notes for $150,000
and some motor stock, but said he was
unable to produce cash requested. On
October 11 the brokers demanded addi
tional margin, and when Durant re
fused proceeded to dispose of his en
tire account, clcsing hhn out Novem
ber P. 1930.
DISPENSARY SALES
URGEDFDRCAPITAL
District Committee Members
Join in Asking Liquor Plan
Be Considered.
_(Continued From First Page.)
committee If they thought hearings
should be held.
Chairman King of the Senate Com
mittee is sympathetic toward the idea
of Government dispensaries, but is keep
ing an open mind as to a Anal decision
until after the Senate hearings. He said
he wanted the people In the District to
have ample opportunity to express their
views, and then to work out a bill that
would be for the best Interests of the
community as a whole. He summed up
his own desire in relation to the liquor
control legislation as follows: “I want a
bill that will promote temperance, pre
vent the return of the saloon under
any guise and discourage the use of
hard liquor.”
Would Hasten Income.
Representative Stalker declared that
he will Insist on hearings being held on
the liquor control question, but desires
to hasten the passage of this legislation
so that the District can get the revenue
as soon as possible.
‘‘One of the two purposes In the re
peal of the eighteenth amendment,"
Mr. Stalker said, "was to secure revenue,
and so the revenue on sales of liquor
consumed In the District should not
go to neighboring States. However,”
he argues, “the excise tax and license
fee should not be all that the traffic
will bear. There should be a happy
medium. We must put the tax and
license fee low enough so that the
bootlegger will not find It profitable
to continue In business.
"1 believe the people of the District
should have an opportunity to express
their wishes on suoh a vital snbjeci.
For that reason, I will insist upon heal
ings being held and that no effort be
made, as with the beer bill, to rush
through a measure that would have
to be tom to pieces on the floor of the
House or In the Senate. But I am op
posed to lengthy* hearings and would
like to have them restricted to author
ized spokesmen for organizations or
responsible groups.
"I am convinced that the best way of
controlling legal liquor traffic is through
Government dispensary and I will try
my hardest to hate such a law passed.”
Model B1I Vrgrd.
Another Democratic House Commit
tee member joined last night with those
who are advocating hearings on the
control legislation before it is reported
to the House. Representative Jennings
Randolph of West Virginia expressed
| the opinion that hasty action would
be misunderstood by the people all
over the country who are looking to
Washington and Congress for model
legislation on this subject. In express
ing his views, Representative Randolph
said:
“Americans as a whole and not only
Washington residents will be looking to
the liquor bill of the District of Co
lumbia asjt model measure fer the Na
tion.
"It is. therefore, highly advisable. I
believe, that in our desire to have
prompt action on such legislation, we
should not be turned aside from the
fact that a fair and adaptable meas
ure must not be sacrificed for speed, as
the hour for the opening of Congress
approaches.
"Undue delay would also bring merit
ed criticism, just as too quickly dispos
ing of this important matter.
"It is, therefore, with this thought
in mind, that I favor hearings which
will be a basis, not for a complete tear
ing up of the proposals already made,
but simply as a check against criti
oism of presenting a half-baked Dis
trict of Columbia liquor bill.
Favors Private Dispensaries.
"A low liquor tax is advisable, since
it should tend to make fair liquor prices
and thus discourage, if not eliminate,
the evils of continued bootlegging.
Under the proper supervision. I believe
there is no valid reason why private
dispensing of liquor is not preferable to
any Federal system. The Government
will receive revenue and it is therefore
proper that liquor be sold under ade
quate supervision by hotels and res
taurants. by drug stores and others who
meet the requirements.”
Senator Carey's Views.
Several days ago S3nator Carey said
he was considering either Government
dispensaries or a private corporation,
subject to Government control of its
earnings, to handle the distribution of
bottled liquor. He said yesterday he
had concluded the Government should
handle the distribution, believing that
would safeguard the quality and price
and give the city the revenue derived
from sales. He said it might possibly
be advisable to license hotels to serve
liquor.
The trend toward consideration of
the dispensary system on Capitol Hill
began last week when Senator Couzens.
Republican, of Michigan, a District
Committee member, advocated munici
pal stores for the sale of bottled liquor,
with private licenses confined to such
places as may be authorized to serve
liquor at tables. At the same time.
Senator Gore. Democrat, of Oklahoma,
also on the local committee, declared
seme way should be found to c....
the private profit factor and that he
was seriously considering having some
governmental agency handle distribu
tion. In the interest of temperance,
he also advocated that emphasis b?
placed on beer and light wines in pref
erence to hard liquor.
Tydings to Study Plans.
Senator Tydings, Democrat, of Mary
land, another District Committee mem
ber. said yesterday he has had no op
portunity to study the proposed local
bill or the general question of what
form of control should be adopted here.
He was not ready, therefore, to com
ment on the question at this time.
The bill drafted by Representative
Smith of Virginia is patterned after the
plan recently recommended by the
Liquor Control Commission of Virginia,
which, he said, will prevent the return
of evils inherent in the old system that
brought about the adoption of the
eighteenth amendment.
"There are two very distinct lines of
thought cn the question of how best to
control the liquor problem since repeal."
Mr. Smith declared. "They are: First,
the system cf private sale and private
profit, which. I understand is proposed
in the bill approved by the Di&lr.ct
Commissioners. The second is the dis
pensary system or sale by Government
nancies eliminating all elements of
private profit from the retail sale cl
whisky.
"The first proposal is subject to seri
cus and inherent objection to the sale
of whisky by the brink to be ccnaumed
on the premises where sold.
Fears Old Evils.
“I am confident a large number of
the members of Congress, myself in
cluded. will wish to record their opposi
tion to this method of dispensing liquor
and will wish for the further opportiin
ity of voting for some Term of dlspen
sary system, such as the well conceived
plan recently recommended by the
Liquor Control Commission of Virginia.
I hope the opportunity will b? accorded
the membership to vote for such an al
ternative plan in plice of the proposed
bill, which latter. I tear, will be subject
to perversions and evasions that will
lead to many of the evils inherent in
the old system that brought about the
adoption of the eighteenth amendment.”
The proposed Smith b»U would re
strict the sale of whisky and other so
called "haid" liquors to dispensaries or
stores, established and operated under
the direction of a board of alcoholic
control of three members appointed by
the Commissioners. Hotels, restaurants
and clubs would be permitted to sell
cnly b*er end wir.e for consumption on
the premises. Off-sale permits would
De issued, however, to privately owned
stores for the sale of beer and wine.
The alcohol control board would be
given broad powers to make all neces
sary regulations and fix prices of liquor
sold in the dispensaries. Net profits of
these stores would be deposited in the
Treasury to the credit of the District.
The board also would issue all licen
ses to distilleries, wineries, breweries
and bottlers, as well as permits to ho
tels, restaurants and clubs selling beer
and wine, and to stores handling beer
and wine for consumption off the prem
ises.
Scale of Fees.
License fees per year as set up in the
bill follow:
Distilleries, wineries, and breweries,
$1,000; bottlers, $500; wholesale beer,
$250: on-sale wine and beer, $200; beer
alone, $100, and off-sale wine and beer.
$50 The tax per gallon on liquor sold
is left blank in the bill.
One feature of Mr. Smith's bill would
create a new type of license, knowfi as
a banquet license, to be issued to per
sons in charge of banquets. This would
authorize the licensee to sell wine and
beer in designated rooms for consump
tion on the premises.
Special precautions are taken in the
bill to prevent liquor Interests from en
gaging In the retail beer and wine busi
ness. with a provision forbidding the
issuance of a license to any manufac
turer, bottler or wholesaler of alcoholic
beverages, or to any officer or director
of any such manufacturer, bottler or
wholesaler, or to any partnership, asso
ciation or corporation, any partner,
member or stockholder of which is an
officer or director of any such manu
facturer. bottler or wholesaler.
Druggists, under the bill, would be
allowed to sell liquor for medicinal
purposes, and then only on a prescrip
tion Issued by a physician.
Drunk Driver Provision.
Persons convicted of operating a ve
hicle under the influence of liquor
would be prevented by the Smith bill
from purchasing liquor. The court is
given authority to make an order of
interdiction prohibiting the sale of al
coholic beverages to such persons, and
file a copy with the control board.
Other provisions of the bill make it
a misdemeanor for a person to purchase
liquor from any place other than a
Government dispensary, or to take or
offer a drink to another in a public
place.
“600 Feet” Clause in Rum Bill
Opens Way for Protests
Proposal Gives Citizens’ Associations a
Say as to the Location of Dispensaries
Within Their Areas.
The "600 feet” provision In the Com
missioners' proposed liquor control bill
Is expected to be the one of most Inter
est to the various citizens’ associations
that have considered the liquor problem
since repeal.
This represents on the part of the
Commissioners an effort to reconcile the
many requests they received for some
sort of "local option” within the District
on the matter of liquor selling establish
ments. These ranged all the way from
barring ail sales within specified areas
(for Instance Mount Pleasant and Chevy
Chase) to allowing citizens' associations
a say as to the location of dispensaries
within their boundaries.
Given Chance to Object.
As explained by Commissioner Oeorge
E. Allen, it gives to owners of residential
property lying within 600 feet of the
nearest boundary a chance to object to
the establishment of a saloon (If that
is the appropriate name). This sets up
a large area, any point on the boundary
of which is 1.200 feet, plus the width of
the property, from the opposite bound
ary.
Expressed In terms of blocks. 600 feet
will be longer than the longest single
block and will make as much as two and
a half blocks of the shortest residential
blocks, so that in all cases there wdll
be several blocks Involved In the deter
mination of whether the license shall
issue.
The applicant may consider all prop
erty in this arda, which is zoned for
other than residential use, as consent
ing. The right to object attaches only
to residential property. If the objec
tions represent as much as 51 per cent
of the area, then the license cannot be
issued.
Ruling Stated In Negative.
The rule throughout is stated in the
negative. In other words, even if only
a handful of residents objected, the
board could still deny the application
for a license, but if 51 per cent or more
object, then it Is compelled to deny It.
Henry I. Quinn, chairman of the Spe
cial Committee on Liquor Legislation of
the Federation of Citizens’ Associations,
said yesterday that he was not prepared
to accept this as the final solution, that
he would prefer to leave the matter to
the Boning regulations, permitting the
establishment of liquor selling places In
appropriate zones.
Quinn was the leader of the liberal
element of the Federation who wanted
as few restrictions placed on the sale
of liquor as possible.
Harry N. Stull, leader of the opposite
school of thought, said that he was
opposed to putting the power to object :
Into the hands of property owners, and
would prefer to let residents have a
chance to vote, whether they own prop
erty or not.
It Is expected that the matter will be
j thrashed out once more when the fed
Martial Law and Newspaper
Censorship Declared After
Premier’s Slaying.
I Bi U» Assoeiatsd Frtti.
BUCHAREST, Rumania, December
30.—A decree Invoking martial law and
rigid censorship was promulgated to
night as the government prepared for
relentless action against any violent
aftermath of the assassination ot
Premier Ion G. Buca and an attempt
on the slayer’s life.
The entire country was made subject
to the martial law order, effective at
midnight, and military surveillance was
provided for newspapers so that provi
sional Premier Constantine Angeiescu.
Duca's successor, would ha\e a free
hand in quelling the anti-Semetic Iron
Giiird party,
The body of the slain Liberal leader
was brought here from Sinaia, where he
was killed yesterday by an Iron Guard
adherent, after an explosion in ih?
ioya! pavilion at Sinaia threw mourner.'
! the railroad station into a panic and
; injured one Qhild slightly.
Shortly afterward. Radu Poiizu. the
brother-in-law of the late prime min
1 ister, entered the station guard room,
seized a pistol and fired several shots at
i the assassin, Nicholas Constantinescu,
but did not hit him.
The government demonstrated that K
means business in forestalling any fur
ther disorders by jailing Nicholas
Ionescu, editor in chief ol the inde
pendent newspaper, the Cuvantul. and
a personal friend and adviser of King
Carol.
Ionescu was accused or inspiring
Duca's assassination with a recent edi
torial violently attacking the leader.
The bullet-riddled bodv of an Iron
Guard member, at first believed to be
that of the leader Comeliu Z. Codreanu
himself, was found under a bridge near
Bucharest. It was later identified as
that of an obscure member of the party.
King Carol gave the oath of office as
premier to Angeiescu before dawn and
the first cabinet meeting under the new
prime minister took place here this
morning.
Duca’s body will lie in state at the
Athenaeum, with a state funeral sched
uled for Wednesday in which Carol
plans to participate.
Meanwhile, hundreds of Iron Guard
men were jailed during a round-up of
known members throughout Rumania.
Police in questioning Duca's assassin
learned he killed the premier because of
the latter's treatment of the Iron Guard,
which opposes Marxism, "outworn par
lies.’’ government corruption and
Semitism.
►
FARLEY PREDICTS
SUCCESS OF N. R. A.
i _
Postmaster General Declares Pub
lic Is Supporting Recovery
Program.
By the AssociitJi Press.
PHILADELPHIA. December 30. —
Postmaster General James A Parley
yesterday predicted that public sup
port would carry the national recovery
program to success.
Farley, who is also chairman of the
National Democratic Committee, ad
dressed a meeting of the American Po
litical Science Association, and as he
concluded was informed that Prof. H
Parker Willis of Columbia urged Thurs
day that the N. R. A. be suspended
until the Nation could vote on it.
“I am satisfied that the N. R. A. is
going through successfully, because the
people are with the President and are
going to stick with him.” Farley com
mented.
In an interview he predicted that
Pennsylvania will elect Democrats to
the governorship and Senate next year
and that Philadelphia in 1935 will place
a Democrat in the mayor’s office.
K. of C. to Have Visitor.
GAITHERSBURG. December 31 —
Officers of Montgomery Council. No.
2323, Knights of Columbus, will receive
a visit from Col. O’Leary of Massachu
setts in St. Martin's Hall here, on Tues
day evening, January 2, 8 o’clock.
J. P. MORGAN FILES
CHECKED IN PROBE
Investigation of Cleveland
Bank Failure Takes At
torney to New York.
By the Associated Press.
NEW YORK, December 30.—Prose
cutor Prank T. Cullitan of Cleveland
extended his Investigation into the fail
ture of the Union Trust Co. to the of
fices of J. P. Morgan & Co. today.
Mr. Cullitan, who has been directing
an Investigation Into the collapse of
the big Cleveland bank, together with
the Ohio State Senate and Investigators
for the United States Senate Pecora
Committee, said he had no statement
to make concerning his findings nor
any interpretation of his New York
investigation.
The Cuyahoga County prosecutor said
he had checked correspondence at the
Morgan offices. His trip to New York
was prompted by rumors that a 1931
report of the Union Trust Co. has been
"dressed up.”
Studied Correspondence.
‘‘My study of correspondence in the
offices of J. P Morgan L Co.," Cullitan
said, "was based upon information ob
tained from correspondence among the
Union Trust Co., J. P. Morgan & Co.
and the Van Sweringen Corporation of
Cleveland I have no statement to
make concerning the farts or their in
terpretation or anv implications to be
drawn from them.”
O. P and M. J Van Sweringen
have been shown in recent United
States Senate Committee disclosures to
have been heavy borrowers from the
Union Trust Co. and the Guardian
Trust Co—both of which failed to
open after the banking holiday-in con
nection with the financing of the Van
Sweringen operations in railroads, real
estate and the Cleveland $100,000,000
terminal development.
Mr. Cullitan said he expected to re
turn to Cleveland soon to continue his
study of the situation.
Difficulty Reported.
Ferdinand Pecora, counsel for the
Senate Investigating Committee, con
firmed reports that there had been some
difficulty in obtaining access to the
records of the Union Trust for the
committee.
Mr. Perora stated it was found neces
s»ry to "go over the head" of Oscar
L. Cox, liquidator for the bank, to
obtain permission.
"There was a show of difficulty"
Perora said, “but it has all been
smoothed over.
We obtain*-d access to the records
ar.d dorurr.-nt?—but not through Mr.
Ccx. We had to pet permission else*
where. We wanted definite informa*
tion.”
PURCHASE OF WEAPON
BI SLAIN MAN PUZZLING
Police Report Attempt to Oblit
erate Numbers From Gun
Found Near Financier.
By the Associated Press.
MARTINEZ. Calif . December 30 —
Unexplained actions cf Julian C. Whit
man, former San Francisco Stock Ex
change secretary, who a coroner's jury
held was murdered, puzzled police to
day as they sought the supposed slayer.
The 50-year-old financier, using an
assumed name, purchased the death
weapon, a 38-caiiber revolver, several
months ago. Inspector George Engler
of the San Francisco police reported.
Some one attempted to obliterate
serial numbers from the revolver with
a file. Engler said. A fi e and m*a’.
filings were found in Whitman's auto
mobile, abandoned in Oakland, 40 miles
frem Jersey Island, whpre his body was
discovered Thursday. The weapon was
found near the bedy
• ---
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