Evening star. [volume], March 05, 1937, Page A-4, Image 4

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

Image provided by: Library of Congress, Washington, DC

                
QUIZZED ON LOAN
$39,500,000 “Rescue” of
Van Sweringens Discussed
at Inquiry.
By the Associated Press!
Senate investigators asked two J. P.
Morgan & Co. partners today for
their account of a $39,500,000 “rescue
loan,” made to the late Van Swerln
gen brothers in 1930 when the de
pression had set their huge rail and
Industrial enterprises tottering.
Chairman Wheeler of the Senate
Railway Finance Committee asserted
the loan was arranged hurriedly with
“highly speculative and frozen assets”
for security.
Forty-five officials of the participat
ing banks had “accepted favors” from
Morgan not long before, he contended,
noting that all the banks lo6t heavily
on the deal.
Challenges Assertion.
Thomas W. Lamont, senior Morgan
partner, challenged the assertion with
the statement:
"These officials were all men of
probity, sound judgment and wealth
in the community. They would no
more be influenced by so-called favors
than the man in the moon.”
In explaining the "favors," Wheeler
submitted evidence that the 45 banks
had accepted stock in the Alleghany
Corp.—a Van Sweringen holding com
pany—at about $15 under the market
price.
Lamont denied that the stock was
distributed on these terms to a pre
ferred list of prominent business men,
declaring:
“We had bought more stock than we
wanted to keep and we let a few of
our friends have some at the same
price we paid.”
Agrees Loan “Not Usual.”
The gray-haired, slender banker ac
knowledged that the $39,500,000 loan
was “not usual,” but said it was neces
sary to avert collapse on the Van Swer
ingen enterprises, with “serious reper
cussions" on business conditions every
where.
"We didn't ask these other banks
to participate," he added. "We just
laid the situation before them and
let them use their own judgment.”
The loan was never repaid and the
securities posted as collateral were
eventually sold at auction.
Resulting losses ranged from
$9,621,000 for Morgan to $1,247,000 for
the New York Trust Co. Other par
ticipating firms were the Bankers
Trust Co., Chase National Bank,
Guaranty Trust Co. and National City
Bank.
Roosevelt K
(Continued From First Page.)
last night, was the essence of his ad
dress.
While the country was reacting to
the President’s blast, the Chief Execu
tive was preparing for his second ad
dress in support of his court plan, a
■'fireside" talk to be delivered next
Tuesday. He promised last night to
fight on as long as it might be neces
aary to bring another New Deal vic
tory.
"If we would keep faith with those
who had faith in us,” he said; “if we
would make democracy succeed, I say
we must act—now.”
As he marshalled the full Influence
cf the administration in support of
the court bill, the President undertook
to set at rest any idea that he might
aspire to a third term in the White
House. He has no such ambition, he
•aid.
. The President’s address to the
cheering Democrats, who had paid
S100 a plate for the privilege of at
tending the victory dinner, was a
•lashing attack on the Supreme Court
■—although he did not mention that
high tribunal by name.
Raises New Deal Ghosts.
He raised before the eyes of his au
dience the ghosts of New Deal legisla
tion, the N. R. A., the A. A. A., which
the Supreme Court killed effectively
by its decisions. And, speaking of
these defunct measures, the President
said in biting tones:
“You know who assumed the power
to veto, and did veto, that program.”
His appeal, made far beyond the
confines of the dining hall by means
of a national radio hook-up, was par
ticularly to the farmer and the la
borer, whose backing he is counting
upon in the fight to force his court
bill through the House and Senate. It
was the President’s contention that
nothing can be done to help them,
unless the court which had invalidated
the New Deal laws could be changed.
Again he did not mention the court
by name.
The President's was a fighting
•peech from start to finish. He coined
a new phrase, a new term, which he
plastered upon his opponents—"de
featist lawyers.” And this he applied
to the lawyers in private practice as
well as to the lawyer Senators and
Representatives who have defied him
on his court proposal.
Nation Confronts Crisis.
At the outset of ms address the
President solemnly warned his audi
ence that the Nation today confronted
a crisis “even more grave” than that
Which it faced on March 4, 1933.
“Tonight,” he said, "I want to be
gin with you a discussion of that crisis.
I shall continue that discussion on
Tuesday night in a Nation-wide broad
cast and thereafter, from time to
time, as may be necessary. For X
propose to follow my custom of speak
ing frankly to the Nation concerning
our common problems."
Today the President’s announced
determination to carry the campaign
for the court bill to the people was in
terpreted in opposition quarters as an
Indication that the President realizes
he has a real battle on his hands,
with a recalcitrant Senate that may
block his plans unless the utmost
pressure Is brought to bear.
The President emphatically declared
that this fight for improvement in
the social and economic condition of
the people must not be delayed. Time,
he said, is the very essence. He made
no effort to describe his plan with re
gard to the Supreme Court, but it was
clear that he had reference to earlier
statements in which he insisted that
a constitutional amendment was too
slow in process of adoption. The
“ever-accelerating speed with which
social forces now gather headway,”
he said, must be taken into account.
The country. In older days, had taken
40 years to settle the Issue of slavery.
“But economic freedom for the
wage earner and the farmer and the
small business man will not wait, like
emancipation, for 40 years,” declared
the President. “It will not wait four
years. It will not wait at all.”
The President told with a touch of
humor his lack of ambition to be a
New Doll Lightens Tragedy
Four-year-old Barbara Moore playing with the doll which
her temporary guardian gave her after her father disappeared
and her mother died a week ago. —Star Staff Photo.
- v
ii i sick with influenza and couldn’t get
IJllklren to the hospital.
The woman died two days later and
(Continued From First Page.) her unclaimed body was removed to
-- the morgue.
pay you later. We don't know where Authorities were unable to get in
he went to" touch with the husband or relatives.
The mother was buried Tuesday in
Wife Asks for Husband. Mount Olivet Cemetery with the as
A fortnight ago Mrs. Kelley took sistance of a Catholic priest and the
Veronica to see her mother at the W. W. Chambers funeral home. None
hospital. Mrs. Moore asked her of her family or friends could be lo
daughter where her father was. The cated. and the priest was the only
little girl replied that her father was attendant at the funeral.
—
Mysterious ‘John’
Whom Did the President
Tell About Retirement
In 1941?
B7 the Associated Press.
Who was the “distinguished member
of Congress" named John" in whom
President Roosevelt said las! night he
confided his intentiqp to re;ire from
the presidency In 1941?
Newspaper rren thumbed over the
congressional clrectory and, among
other "Johns.” found these:
John Nance Garner, president of
the Senate and Vice President of the
United States.
John Bankhead. Democratic Sen
ator from Alabama and brother of the
Speaker of the House.
John Overton, Democratic Senator
from Louisiana.
John O’Connor, chairman of the
House Rules Committee.
John Rankin, Representative from
Mississippi and advocate of public
power development.
But there are 33 other “Johns’’ In
the House and there was no clue as
to just which legislator the President
meant.
third-term President. A distinguished
member of Congress, he said, had
called upon him a few days ago to
discuss the problems of the Nation,
including the problem of the Judiciary.
He described how the member of Con
gress, whom he called “John,” had
“pricked up his ears” when the Presi
dent told him: “I have a great am
bition in life." And he told how his
friend sat “on the edge of his chair”
when the President had said he was
not satisfied with being elected twice
Chief Executive. He added:
“I continued: ‘John, my ambition
relates to January 20. 1941.’ I could
feel just what horrid thoughts my
friend was thinking. So, in order to
relieve his anxiety, I went on to say:
‘My great ambition on January
20, is to turn over this desk and
chair in the White House to my suc
cessor, whoever he may be, with the
assurance that I am at the same time
turning over to him as President, a
Nation intact, a Nation at peace, a
Nation prosperous, a Nation clear in
its knowledge of what powers it has
to serve its own citizens, a Nation
that is in a position to use those pow
ers to the full In order to move for
ward steadily to meet the modern
needs of humanity—a Nation which
has thus proved that the democratic
form and methods of national govern
ment can and will succeed.
‘‘In these coming years I want to
provide such assurance. I want to
get the Nation as far along the road
of progress as I can. I do not want
to leave my successor in the condi
tion in which Buchanan left It to
Lincoln."
The President said that some of his
supporters, soon after the victory at
the polls last Fall, had begun to fear
lest a “false era ol good failing”
would put a halt to the progress and
program for which they and he were
fighting. There will be no halt in the
fight, he assured his audience.
The President said that after the
World War insistent demands upon
Government arose everywhere “that
human needs be met.” The unthink
ing or those who dwell in the past
have tried to block these demands, he
said. He pointed out that democracy
had tailed In many lands for the time
being to meet the demands of the
people, and he continued:
“In the United States democracy
has not failed and does not need to
fail. And we, the leaders of the Demo
cratic party throughout the Nation,
propose not to let it fail!
“Nevertheless, I cannot tell you
with complete candor that in these
past few years democracy in the
United States has fully succeeded.
Nor can I tell you, under present
circumstances, just where democ
racy is headed nor just what it is
permitted to do in order to Insure its
continued success and survival. I
can only hope.”
Aims Barb at Judiciary.
Then the President added a para
graph, aimed at a judiciary that has
not seen eye to eye with the New
Dealers. He said:
“For as yet there is no definite as
surance that the three-horse team of
the American system of government
will pull together. If three wen
matched horses are put to the task
of ploughing up a field where the
going is heavy, and the team of three
pull as one, the field will be ploughed.
If one horse lies down in the traces
or plunges off in another direction,
the field will not be ploughed.”
Loud cheers, whistles and laughter
greeted this homely metaphore de
scribing the President’s idea of a
Congress and a Chief Executive pull
ing together, with a Supreme Court
going off at a tangent.
The President complained that, in
the light of the decisions which have
been rendered, nothing can be accom
plished for labor, the farmer, for the
flood sufferer or for the sufferer from
duststorms in the present session of
Congress. There is no reasonable cer
tainty, he said, "that what we do will
not be nullified as unconstitutional.”
With marked sarcasm he suggested
that the Ohio River gnd th-> dust bowl
are not conversant with the interstate
commerce clause of the Constitution.
Somehow,' e said, the interstate com
merce clause must be made conversant
with the habits of the Ohio River and
the dust bowl.
Courage to Moot Needs.
The President’s ambition for the
Democratic party was, he said, that
it will have the courage to meet the
current needs of the Nation.
"If we do not have the courage to
lead the American people where they
want to go,” he warned, “some one
else will.”
At the end of his address the Presi
dent pictured the Nation with one
third of its people ill-nourished, ill
clad and ill-housed. He declared
there are thousands upon thousands
of farmers "wondering whether next
year’s prices will meet their mortgage
interest,” and he continued:
“Here are thousands upon thousands
of men and women laboring for long
hours in factories for Inadequate
pay—now!
"Here are thousands upon thousands
of children, wife should be at school,
working in mines and mills—now!
“Here are strikes more far-reaching
than we have ever known, costing mil
lions of dollars—now!
"Here are Spring floods threatening
to roll again down our river val
leys—now!
“Here is the dust bowl beginning
to blow again—now!
"If we would keep faith with those
who had faith in us, if we would make
democracy succeed, I say we must
act—now!”
Carried to 1,262 Dinners.
The President’s address was carried
by radio to the Nation at large, and
particularly to the 1,262 other victory
dinners, held from Alaska to Puerto
Rico. A total of 515,000 men and
women attended these victory dinners,
which were described by L. W. Rob
ert, Jr., secretary of the Democratic
National Committee, as just another
“Roosevelt landslide.” It is hoped that
a sufficient sum will be raised from
these dinners to pay off the deficit of
the National Committee growing out
of the last campaign.
Mrs. Roosevelt, the wife of the Presi
dent, entered the banquet hall at the
Mayflower with the President, but left
almost Immediately to go to the Wil
lard Hotel, where another victory din
ner—at $10 a plate—was staged by the
Young Democrats.
Approximately 1,300 guests attended
the main victory dinner with the
President. Included in the list were
nearly all of the members of the cab
inet and many of their aids and lead
ing Democrats of the administration.
The President was seated between
Postmaster General Parley, chairman
of the Democratic National Committee,
and Joseph P. Tumulty, who was sec
retary to the late President Woodrow
Wilson and chairman of the Victory
Dinner Committee of the District of
Columbia. Mr. Tumulty served as
toastmaster. He introduced Mr. Par
ley as the man whose work "will live
in the memory of all Democrats,” and
Parley In turn introduced President
Roosevelt, the only speaker.
The address of the President roused
his audience frequently to cheers, and
at the close he was given an ovation.
The comment generally by those at
tending the dinner was that the Presi
dent had struck a body blow at the op
position to his court plan.
Senator Clyde Herring of Iowa said
of the President’s speech that the peo
ple In the com belt "will eat it up”;
that it will appeal undoubtedly to the
farmers.
Statues in Snow and Ioe.
Statues of fairy-tale figures In snow
and Joe line the walks of children's
Winter parks reoentljr opened in Gor
ky. Russia, _
CAROLINA HOUSE
BACKS COURT PLAN
Votes 78 to 84 Favoring Proposals
of President—Senate’s Beso
lntion Is Strengthened.
Br the AMoelated Prtu.
COLUMBIA. 8. C„ March 5—The
House of Representatives went the
Senate one better yesterday and ap
proved a full-Hedged indorsement of
the President's proposed changes In
the Federal judiciary.
Capping three days of debate, the
House voted. 78 to 24, to adopt a
Senate-approved resolution after It
had been amended to place the body
on record In stronger terms.
As passed by the Senate the reso
lution only approved “the courageous
attitude of the President In presenting
this matter to the Nation.” Repre
sentatives Leppard, Crews, Winchester
Smith, Freeland, McCaslan, Long and
Wannamaker proposed the House
amendment to give the measure com
plete Indorsement and calling on South
Carolina Representatives In Congress
to vote with the Chief Executive.
The amendment will reopen the
matter before the Senate, which must
accept or reject the House changes.
By decisive votes, many of them
roll calls, the House turned down
amendments which sought to: En
dorse the President’s “progressive at
titude,” but asking that changes in
the court “be accomplished by a con
stitutional amendment”; leave the
matter In the hands of Congress; to
commend those on both sides and ex
press the conviction “it will be settled
to the best Interests of the country.”
Messages Favor
Roosevelt 7 to 1
On Court Speech
Communications to the White
House today were running seven
to one in approval of President
Roosevelt’s victory dinner speech,
the President told his press con
ference this morning.
Pointing to the huge stack of
telegrams and letters on his desk.
Mr. Roosevelt said that, while he
had not personaUy read them all,
he understood seven out of eight
were favorable “to what I said
l*>t night."
The shortest message was a
telegram with simply the word
“Now.” Another said “There is
nothing permanent but change.’’
Many contained offers of serv
ices, and one well-wisher wired:
"You would get 27.000,000 tele
grsms on tonight’s speech, but
to many of your followers, tele
grams are a luxury."
________
SENATOR TO BE GUEST
Colorado Society to Honor E. C.
Johnson.
Edward C. Johnson, Junior Senator
from Colorado, will be honored at a
dance given by the Colorado State
Society Thursday at the Willard Ho
tel at 10 p.m.
Arrangements will be handled by
Miss Pat Sullivan, chairman. Tables
will be provided for those who want
to play cards.
Fifth Avenue Special
Sharp tilt in back sets the key to style.
Emphasized by reverse underwelt. New
lower crown with a gentle taper. New
wider brim in proportion. Highly indi- $7.50
vidual. Alertly youthful. Knox hatmanship. /
Otktr Knox Hats, fS So S20
LAST DAY
Sale Ends Saturday, 5:45 p.m.
127 Prs. RALEIGH "8"
SHOES
*4.65
"Were $6 and $6.85
245 Prs. Raleigh "8"
SHOES
*5.15
»
44 PAIRS STA-SMOOTH AND HAND
LASTED SHOES; calfskin and Norwegian
leathers. Were $8.50 and $10. Now, $6.85
4 PAIRS HANAN SAMPLE SHOES; size
7B only. Were to $14.50. Now_$5.85
12 PAIRS OF MEN'S SOFT-SOLED SLIP
PERS; assorted colors, mule -and opera
styles. Were $2.50. Now-$1.79
Open a Charge Account . . . Pay in 30 Days or Use Our Extended Payment Plan ^
RALEIGH HABERDASHER j
Oy^CVlLlunMn i <=3uuit yPLii lAJeat Store 1310 F STREET
man man
is known
by the
ha waars he wears
Hart Schaffner (3 Marx and Raleigh
SUITS, TOPCOATS
and OVERCOATS
Were $30 and $35.
Your final chance to share in these exceptional savings!
Woolen prices are rising daily, labor costs are increasing
. . . you won't see another offering like this soon. You
will find pure all-wool fabrics .. . patterns that are smart
for ANY SEASON . . . and tailoring by the greatest
makers in America.
A Group of $25 to $35 Suits, Topcoats, Overcoats.$19.85
Hart Schaffner fir Hart Schaffner fir Hart Schaffner &
Marx and Raleigh Marx and Raleigh Marx and Raleigh
One fir Two Trouser One & Two Trouser One fir Two Trouser
SUITS, TOPCOATS SUITS, TOPCOATS SUITS, TOPCOATS
AND OVERCOATS AND OVERCOATS AND OVERCOATS
$20 85 53485 $39.85
Were $35 to $40 Were $40 to $45 Were $50 to $60
LAST DAY! Sale of Mens Furnishings
321 Solid-Color and
Patterned SHIRTS
*1.69
Were $2 to $3
11 SWEATERS. Were $3 50 to $5 $2.69
7 HOUSE COATS; greys and browns
Were $7.50_ -—$3.98
187 SHIRTS; fancies, whites, solids; all
fine quality materials. Were $2 to
$3_$1.69; 3 for $5
47 SHIRTS; collar attached and neck
band styles; broken sizes; some slightly
soiled. Were $1.95 to $3-$1.19
134 Silk Neckties
98'
Were $1.50 to $2.50
73 NECKTIES; all hand tailored. Were
$l . 59c
93 MUFFLERS; silks, wools, suedes.
Were $2 to $5-Half-Price
84 NECKTIES; imported satins and
warp prints. Were $2.50, $3 ond
$3 50 -$1.68
128 Pairs Silk, Lisle and
Silk Mixture HOSE
39'
Were 50c and 65c
47 PAIRS HOSE; rayon, lisle mixtures.
Were 35c, 50c-29c
76 PAIRS HOSE; fine silks or Hsles.
Were $1-59c
183 MANHATTAN SHIRTS or SHORTS,
made by Robert Reis-4 for $1.50
223 WOVEN SHORTS or SHIRTS. Were
75c-4 for $2.25
34 Flannel Robes
*6.89
Were $8 and $10
SMALL LOT OF UNDERWEAR; slightly
mussed. Were $1 to $2...Half-Price
43 PAJAMAS; notch collar styles. Were
$2 and $2.50-$1.68
87 PAJAMAS; fine sateens, lounge suits.
Were $3.50 and $4.$2.69