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Evening star. [volume] (Washington, D.C.) 1854-1972, January 02, 1938, Image 1

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WEATHER.
<0. 8. Weather Bureau Porecaat.)
Generally fair today and tomorrow;
colder today and tonight; gentle to mod
erate winds, mostly northwest. Tempera
tures yesterday—Highest, 50, at 12 noon;
lowest, 42, at 3 a m.
Full report on page A-2.
Full Associated Press
News and Wirephotos
Sunday Morning and
Every Afternoon.
VTi -I 711 XT. ‘)| OIJ. Entered as second class matter
O. J.9IJ--I- O. 0*±,^_L:±. p0St office, Washington. D. C.
WASHINGTON, D. C., JANUARY 2, 1938-116 PAGES. *
(JF) Means
Associated Press.
. FIVE CENTS TEN CENTS
IN CITY (OR DISTRICT) AND SUBURBS_ELSEWHERE
UNEMPLOYED IN NATION
7,822,912 TO 10,870,000,
BIGGERS’ CHECK SHOWS
- a . .-;
Registration Seen
Only 72 Pet.
Complete.
HOME SURVEY |
DISCLOSES GAP
_ i
Relief Need Held
Not Indicated
in Figures.
BACKGROUND—
For many months the actual
number of jobless in the United
States has been a inatter of dis
pute. Finally, in an effort to
guage the extent of the problem,
the administration called for vol
untary registration of the tdle.
Then, to test the accuracy of this ‘
count, it made a sample test
throughout the country.
By the Associated Press.
The national unemployment cen
sus informed President Roosevelt last
night that the total of the Nation's
unemployed lay between 7.822,912 and
ft possible maximum of 10.870.000.
Its findings were based on the fact
ft voluntary registration of the unem
ployed conducted between November ;
3 6 and November 20. 1937. showed !
7.822,912 to be, by their own testi
mony. out of work and wanting work,
while a complementary house-to-house
canvas in selected areas indicated this
1 total was but 72 per cent complete.
In making this report to the Chief
Executive. John D. Biggers, adminis- 1
trator of the census, said it was im
portant to fear in mind that "it is not
to be assumed that because a certain
number of people are jobless the same
number of jobs must be created to
bring a return to normal conditions.”
He added:
"When the usual family breadwin
ner is idle, two or perhaps more mem
bers of the family may enter the labor
market. Conversely, when the bread
winner is satisfactorily re-employed,
other members of the family may
withdraw from the labor market.
"Then, too, you recognize, but it
should perhaps be emphasized, that
the number of people who reported
themselves as unemployed should not
be confused with the number of peo
ple who need financial assistance or
relief. Many people consider them
selves unemployed who are financially
not compelled to work.
"Irrespective of their need, when
they seek employment, they enter the
labor market and compete with others
who have jobs or vitally need jobs.
They are, therefore, a factor in the
unemployment problem, though they
may never seek relief.”
1,996,699 Women on List.
Of the 7,822,912 who reported them
aelves unemployed, a total of 2,001,
877 were emergency relief workers.
Women who voluntarily registered as
cut of work comprised 1,996.699. in
cluding those doing emergency relief
work. •
Best comparison for the Biggers
unemployment figures are those of
the National Industrial Conference
Board and the American Federa
tion of Labor, two most widely
quoted estimates in recent years.
Reporting as of November, when
the Government census .was taken,
the A. F. of L. estimated unem
ployment between 8,500,000 and 8,
750.000. A month earlier the In
dustrial Conference Board esti
mated jobless totaling 6,335,000.
Estimates of sharply Increasing
unemployment in recent months
have come from several sources.
The A. F. of L... for instance,
estimated that 725,000 jobs were
lost during the month of Novem
ber. For the same period Secre
tary of Labor Perkins reported that
570,000 persons had been dropped
from industry pay rolls alone.
And from Leon Henderson, eco
nomist for the W. P. A., came the
estimate that 2,000,000 jobs had
been lost since September 1. with
another million likely to become
unemployed before the end of Feb
ruary. Neither the Department of
Labor nor the W. P. A. made esti
mates of total unemployment.
(At the depth of the depression
about 15,000,000 are believed to
have been unemployed.)
Divided in Two Classes.
“The unemployed,” Biggers' letter
to the President said, “may be di
' Tided into two classes. One class rep
resents those regular workers for
wages who always work, when work
ts available, regardless of their im
mediate economic status. * • •
“There is also a second group, con
sisting of those who are not regular
workers for wages, such as house
wives who seek wage jobs only, when
the family breadwinner is idle; daugh
ters or sons who take jobs through
Choice, rather than necessity; unpaid
family workers on farms and in fam
ily stores, who seek wage jobs only
when family Income needs augment
ing; retired people who, because sav
ings have been depleted, decide to
enter the labor market again.
“To this class unemployment is a
gtatus depending on their current in
clinations and temporary economic
conditions.
“This second group, made up of the
occasional workers for wages, might
not take the trouble to respond to a
voluntary registration, but might
readily be reminded to relate to a
census enumerator their current in
clination to work. For example, the
proportion of women who reported
themselves as unemployed was greater
In the enumerative census than in the
registration, though both exceed the
percentage of women reporting as un
employed in the 1930 census. It is
expected that our detailed analysis
(See JOBLESS, Page A-5.)
* i
Startling Jump in D.C. Crime,
Blamed on Numbers Racket,
Taking $30,000,000 a Year
(This is the first of a series of articles revealing the part the
numbers racket has played in the groivth of crime in Washington.)
By CARTER BROOKE JONES.
IS WASHINGTON to become also the crime capital of the
country?
Alarmed officials are wondering as they note the startling
increase in crime here.
The ominous spread of murder, armed robbery and other
felonies will be the first problem confronting the new United
States district attorney when the President appoints a permanent
successor to Leslie C. Garnett, who retired Friday at the close
of his term.
Besides the critical crime question will flash another:
What's to be done about the numbers racket?
For law-enforcement officers are convinced that Washington's huge
numbers game, operated in safe defiance of the law, is largely responsible
for the influx of criminals to the National Capital.
The game has grown into one of Washington's major industries. It
does a business of $30,000,000 a year—$100,000 a day—according to the
most reliable estimates obtainable.
There are few lines of legitimate business in the Capital that surpass
the gross “take" of the numbers. The last annual figures compiled by the
Census Bureau showed the income from the numbers topped substantially
only by the food and general merchandise group.
The illicit numbers game employs***" "
regularly somewhere between 5,000 I All I I IATA A| ilA/l
"™n po,ite 01 LUYALIolo ILAIIVI
Controlled by Criminals.
The racket is controlled by a few TCDIICI OTII I UCI R
men—gambling magnates who have llllMM \ I II I Mrl II
built sumptuous homes, own yachts I LI1ULL U I ILL I ILLU
and fleets of expensive cars.
Who these numbers tycoons are is -“
known .boo, town. The police know Mad|.jd |nsjs,s |nsurgen(s
Were Beaten Back From
town—in office buildings, Government Otrotoni#* r*i*w
departments and at street corners. OiralcQIC Lily.
Some even make the rounds of homes, Bir„npn,,wn
soliciting housewives and servants. balkuhuunu
And yet the police say they are pow- Ter“eI- for, more tha" a yea\
erless to stop this arrogant, pervasive *pearh'ad 0f J"™’®8"* salient
racket thrust dangerously toward govern
This “innocent little numbers game” ™nV* easternt T* 0cb“p<?J
-fattened into big business by the by soverjxment forces December 21
daily pennies, nickels, dimes and quar- at,Tesult °{ *“rPr,.*f I*™™/ T'
ters of the faithful thousands-is run cel°™ tand Madrtd. feat as
mostly by racketeers-men with crim- ®reafe,t government victory of war.
inal records, some Involved in mur- Government and insurgent leaders
ders, others in various crooked ac- a'lke pressed belief the battle for
tivities Teruel, as it developed vast pro
violence strews the trail of the Portions, might be decisive battle
numbers through recent years. °‘ war'
Typical is the murder of Allen D.
Wilson, a newspaper route carrier, in
nocent of connection with the racket, MADRID, Jan. 1.—A government
slain by hired assassins when he was war communique late tonight declared
mistaken for a gambler they were government troops still held blizzard
employed to “rub out.”
r „ . slashed Teruel, where insurgent at
Felonies and Murder Increase. tempts reoccupy the strategic city
Veteran law - enforcement officers were said to have been beaten back,
blame the numbers for the menacing Terrific pressure from insurgent
growth of crime here because, they planes and artillery forced the gov
say, word seems to have spread eminent to give ground, the announce
through the underworld that the Na- ment said, but later one position was
tion’s Capital is an “easy” city. recovered.
The records prove what’s going on. . . . ,. __ . ,
During the fiscal year 1930 the tieJsaKhfimmMnte''were ce°lel
district attorney's office had 1,319 t-ler sald the insurgents were eele
felony indictments to prosecute. By gating recapture of Teruel. object
1935 the number had risen to 1,577, of b,tter wmter flghti"g ftace a
and in 1936 the grand jury returned *UTprlse government offensive two
1,645 true bills for felonies. weeks ag0’ Insurgents reported
The fiscal year ending June 30, 1937, ^ey dominated the city com
saw 1,988 felony indictments. And it Plctely.) .
was estimated at District Attorney The communique s&id mechanized
Garnett’s office yesterday that the insurgent columns, assisted by great
total for the current fiscal year will masses of aviation and artillery, moved
reach 2,600. at dawn across the snow-banked plains
There were 36 murders committed outside Teruel, forcing government
in the District in 1930, 56 In 1936 and forces to give ground.
59 in the fiscal year 1937. Since June Two powerful Insurgent attacks cap
30 the police record shows 34 homi- tured one strategic hill, but the coin
cides, with the current fiscal year muniqUe gaid government troops re
only half over. gained lt later.
Out of All Proportion. The battle, one of the greatest of
The most prevalent felonies are the civil war, raged in heavy winter
robbery and housebreaking, with ag- weather that impeded all operations
gravated assault next. in deep snow. Troops of both armies
Washington's increase in crime is suffered from the cold and corn
far out of proportion to the gain in munlcations virtually were at a stand
population, criminologists point out. stm around the contested city, 135
The number of criminal cases miies east of Madrid.
pending in the district attorney’s office -
has doubled in seven years, and the Loyalist Retreat Reported,
courts are clogged with cases awaiting By the Associ,te)1 Pres8.
trial, many of which cannot be
reached for months. HENDAYE, Franco-Spanish Fron
Gun play has flared frequently tier, Jan. 1 (JP).—Insurgent Spain today
among the gambling racketeers who celebrated the recapture of Teruel,
conduct the numbers, bookmaking and . . . , . ,,
-75—- which insurgent leaders hailed as “one
See NUMBERS, Page A-6.) of the mogt qecjgive defeats” inflicted
-*- on the government in the 17-month
SIX QUAKES REGISTERED >Wch hw Md
- the strategically vital provincial capi
Mexico City Observatory Charts tal in Lower Aragon were reported
_ ,, _ __ retreating to the south in great con
Temblors Off Oaxaca. fusion. * The victorious insurgents,
.MEXICO CITY, Jan. 1 (A>).—The who smashed their way into the city
Mexico City Observatory reported six in three columns yesterday, were said
light earthquakes were registered to- to be in complete control of Teruel.
day, most of them coming in the early The struggle for Teruel was described
hours while the city still was celebrat- as the greatest battle of the war with
ing the New Year. The heaviest were 200,000 men engaged. An insurgent
barely perceptible. Seismographs re- communique said, “The number of
corded them at 12:27, 2:43, 3:10, 6:26, prisoners is very high and the red
7:53 and 9:19 a.m., E. S. T. (government) losses are incalculable.
The epicenter was placed at about • * • The roads are black with fugl
190 miles southwest of here in the tives and remains of the destroyed
Pacific Ocean off Oaxaca. reg army.”
TERUEL STILL HELD
Madrid Insists Insurgents
Were Beaten Back From
Strategic City.
BACKGROUND—
Teruel, lor more than a year
spearhead of insurgent salient
thrust dangerously toward govern
ment’s eastern coast, was occupied
by government forces December 21
as result of surprise offensive. Bar
celona and Madrid hailed feat as
greatest government victory of war.
Government and insurgent leaders
alike expressed belief the battle for
Teruel, as it developed vast pro
portions, might be decisive battle
of war.
By the Alternated Praia.
MADRID, Jan. 1.—A government
war communique late tonight declared
government troops still held blizzard
slashed Teruel, where insurgent at
tempts to reoccupy the strategic city
were said to have been beaten back.
Terrific pressure from insurgent
planes and artillery forced the gov
ernment to give ground, the announce
ment said, but later one position was
recovered.
(Dispatches to the French fron
tier said the insurgents were cele
brating recapture of Teruel, object
of bitter winter fighting since a
surprise government offensive two
weeks ago. Insurgents reported
they dominated the city com
pletely.)
The communique s&id mechanized
insurgent columns, assisted by great
masses of aviation and artillery, moved
at dawn across the snow-banked plains
outside Teruel, forcing government
forces to give ground.
Two powerful Insurgent attacks rap
tured one strategic hill, but the com
munique said government troops re
gained it later.
The battle, one of the greatest of
the civil war, raged in heavy winter
weather that impeded all operations
in deep snow. Troops of both armies
suffered from the cold and com
munications virtually were at a stand
still around the contested city, 135
miles east of Madrid.
Loyalist Retreat Reported.
By the Associated Press.
HENDAYE, Franco-Spa nish Fron
tier, Jan. 1 UP).—Insurgent Spain today
celebrated the recapture of Teruel,
which insurgent leaders hailed as “one
of the most decisive defeats” inflicted
on the government in the 17-month
old civil war.
Government forces which had held
the strategically vital provincial capi
tal in Lower Aragon were reported
retreating to the south in great con
fusion. »-The victorious insurgents,
who smashed their way into the city
in three columns yesterday, were said
to be in complete control of Teruel.
The struggle for Teruel was described
as the greatest battle of the war with
200,000 men engaged. An insurgent
communique said, “The number of
prisoners is very high and the red
(government) losses are incalculable.
• * • The roads are black with fugi
tives and remains of the destroyed
reg army."
THE EVENING STAR
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► I
ARMS 10 RUMANIA
AND YUGOSLAVIA
Growing Friendship With
Italy and Germany Re
sponsible.
EXPLANATION OF POLICY
WILL BE ASKED OF GOGA
*
Paris Cabinet Said to Be Urging
Czechs to Halt Shipments
to Allies, Also.
BACKGROUND—
French security system built
after war on basis of alliances
with Poland and Czechoslovakia
and close understandings with Ru
mania and Yugoslavia. Three last
named, comprising little entente,
have own alliance for defense.
Entente threatened with disrup
tion, however, as Rumania and
Yugoslavia display growing sym
pathy for Germany and Italy.
Special Dispatch to The 8tar.
PARIS, Jan. 1.—Officials said to
night the French government had or
dered a virtual embargo on armament
shipments to Rumania and Yugoslavia,
long France's allies, because of their
growing friendship with Italy and
Germany.
Members of the Chamber of Depu
ties disclosed Edouard Daladier, min
ister of national defense, had ordered
suppression of government licenses for
exportation of military supplies to
those countries “until further notice.”
This order, it was understood, was
issued with the consent of the whole
cabinet, which was said to be alarmed
by the apparently pro-Nazi policies of
Rumania's new premier, Octavian
Goga, and the increasingly close re
lations betweefi Yugoslavia's Premier
Milan Stoyadinovitch and Italy.
Goga Asked to Explain.
Adrien Thierry, French minister at
Bucharest, was said to have received
instructions to ask Goga to explain
his future policy with regard to
France, Rumania's ally since the
World War.
The cabinet was said to have rec
ommended to Czechoslovakia that she
take action similar to France's.
Czechoslovakia’s huge Skoda munitions
works long have supplied arms to Ru
mania and Yugoslavia, her allies in
the Little Entente.
The Deputies emphasized that the
temporary embargo was designed espe
cially to bring the two nations “back
to reason.” Neither Germany nor
Italy, with which they are accused of
flirting, is believed by French leaders
to be in a position to finance rearma
ment efforts of Rumania and Yugo
slavia.
Fear for Arms Improvements.
Officials of the Paris war ministry
were said to be afraid that models of
the newest French arms might fall
under the eyes of German and Italian
officers if they should be delivered to
the Bucharest or Belgrade govern
ments.
During the last 15 years France has
lent nearly *1,000,000,000 to Rumania
and Yugoslavia, much of this being
in the form of credits established in
France for purchase of war supplies.
The destroyer Beograd, being built
for the Yugoslav Navy in a French
shipyard, was launched a few days
ago, while other French yards have
submarines for Rumania on the stocks.
Whether delivery of these units
would be affected by the new order
was not indicated.
(John Elliott of the New York
Herald Tribune explains the effect
of the Rumanian elections on
France in an article on page A-4.)
Goga Pledges Loyalty to Carol.
BUCHAREST, Jan. l (^.—Ru
mania’s new Premier, Octavian Ooga,
anti-Semitic leader of the National
Christian Party, today pledged endur
ing loyalty to King Carol and in turn
was reminded by the King that solu
tion of Rumania's problems must be
"based on right.”
The Premier made his pledge at a
New Year reception.
Officials in Bucharest declared they
knew nothing of the reported threat
by France to cut off armaments from
Rumania and Yugoslavia because of
their increasing friendship for Ger
many and Italy.
HEFLIN’S RECOVERY
PREDICTED BY DOCTOR
Sr the Associated Press.
LAFAYETTE, Ala., Jan. 1.—Dr.
N. A. Wheeler today predicted re
covery, "barring unexpected compli
cations,” for former Senator J. Thom
as Heflin, 68, ill of lobar pneumonia.
A "marked improvement,” noted in
the afternoon, permitted removal of an
oxygen tent, under which Mr. Heflin
had been kept 48 hours.
Dr. Wheeler said an attack of "tym
panitis,” dilation of the stomach, had
been relieved and a cup of weak tea
given Mr. Heflin. It was his first
nourishment in 24 hours.
JAIL EMPLOYE SLAIN
Janitor Found Bound and Gagged.
Prisoner Escapes.
FOLKSTON, Ga„ Jan. 1 <*>)•—
Sheriff J. O. Sikes said today J. B.
Misell, janitor at the jail here, smoth
ered to death after an escaping pris
oner bound and gagged him.
. The sheriff said a hunt was being
organised for a colored man listed as
Walter Robinson, missing after Mr.
MizeU’s body was found in the ee;l
blocks. Robinson, the sheriff said,
was awaiting trial for larceny.
Sheriff Sikes said his wife found
Mi sell's body after other prisoners
had reported they heard a "sick man”
groaning
Radio Programs, Page F-3
C—plete Mn. Pan A-X
i
ALABAMA, 13 TO I
Southerners Beaten First
Time in Five Battles in
Rose Bowl.
Bv ROBERT MYERS.
Associated Press 8por?s Writer.
ROSE BOWL, PASADENA. Calif.,
Jan. 1.—Alabama's once glorious grid
iron dynasty of the Sunny South fell
today, conquered thoroughly and com
pletely for the first time in five in
vasions of the Rose Bowl battle ground
by the mighty Blue and Gold warriors
of California. The score: California,
13; Alabama. 0.
The gallant red regiment from Dixie,
powerful enough to whip three other
Pacific Coast Conference teams and
tie one in the Bowl, never encoun
tered a more valiant, determined band
such as California, with its Vic Bot
tarl, Sam Chapman, John Meek and
Bob Herwig, placed on the field today
before a record-breaking crowd of
90,000.
The crusading Southerners found
that California was on a crusade of
its owm, sworn and fully capable of
bringing back some of the lost glory
of the West in the Rose Bowl.
The Golden Bears scored first in the
second quarter, converting a fumble
by little Herky Moseley, ’Bama back,
Into a 63-yard drive over the goal.
The other touchdown came in the
third period on the heels of a 48-vard
parade that swept the Crimson Tide
before it with seldom an interruption.
Team of 11 Stars.
Vic Bottari proved the touchdown
hero of the day, scoring both tallies
for the Bears, but California's so
called "team without a star" lived up
to its name. It has 11 stars.
Breaks and fumbles contributed
largely to the defeat of the Tide for
the first time in two long years of
campaigning. Two vital fumbles were
laid at the feet of Moseley. Racing in
to catch a punt, it was his fumble,
which Perry Schwarts, California’s
right end, recovered, that led to the
score.
Early in the final quarter the Crim
son lads banked down into deep scor
ing territory. A pass interference by
California’s steady-plunging fullback,
Dave Anderson, put the ball on the 3.
On the next play Mosley fumbled and
Herwig came up with the ball.
Twice Herwig, burly center, saved
the Berkeley Blue from being scored
(Continued on Page B-4, Column 1.)
Other Football Scores
Rice, 28: Colorado, 14.
Santa Clara, 6: L. S. U., 0.
West Virginia, 7; Texas Tech, 8.
Auburn. 6: Michigan State, 0.
East All-Stars, 0; West, 0.
NOW NURSE IS NERVOUS!
Plane Locates
Lost Surveyors
In Quebec Wild
QUEBEC. Jan. 1 (Canadian
Press).—The Quebec Lands and
Forests Department tonight an
nounced a rescue plane had
found 15 surveyors cut off from
the world more than a month In
northern Quebec.
The announcement said Pilot
Walter Woollett. one of the fliers
seeking the men. brought out
word the surveying party had
been located 200 miles due north
of Rouyn, Quebec, not far below
the south tip of Hudson Bay.
They had set up a temporary
camp a mile south of the survey
line they had been marking near
Evans Lake, Quebec.
Apprehension»was aroused when
the surveyors failed to keep a pre
arranged meeting December 22.
Dispatches from Moosonee,
Ontario, reported one of the sur
veyors had been flown out of the
camp suffering from hunger and
exhaustion.
Officer Achieved Particular
Fame at Geneva and Lon
don Arms Conferences.
Admiral Hilary Pollard Jones, U. S.
N„ retired, one-time commander in
chief of the United States Fleet, died
late yesterday of pneumonia at his
home here, 2029 Connecticut avenue
N.W., at the age of 74. He achieved
particular distinction in the Geneva
Conference on the Limitation of Na
val Armaments and at the London
Arms Conference.
The admiral leaves his wife, the
former Miss Virginia Lippincott of
Philadelphia, whom he married in
October, 1917; two sisters. Miss Lucy
Jones of this city and Mrs. James
Marshall of Alexandria, Va., and his
brother, Basil M. Jones of Richmond,
Va.
The Navy Department announced
last nightf that the funeral will be
held Tuesday afternoon. The service
will be at 2:30 o’clock at the Fort
Myer (Va.) chapel, with interment in
Arlington National Cemetery.
Death came to the admiral about 7
o’clock last evening. He had been ail
ing for the past five days,' friends said.
For almost half a century Admiral
Jones served on the active list of the
Navy, during which time he held some
of the most responsible posts ashore
and afloat. He was placed on the re
tired list November 14, 1927, upon
reaching the statutory age limit of 64
years. Since, except during his visits
Tsee ADMIRAL JONES, Page A-12.)
Radio to Carry Roosevelt Talk
In Six Languages Past Censors
Translations Into French, German, Italian, Spanish
and Portuguese of Words on Foreign Policy
to Be Broadcast to Entire World.
By the Associated Press.
President Roosevelt's message to
Congress tomorrow will be hammered
home to a war-worried world as the
words of no other President have been.
Whatever he has to say about Amer
ica’s views on international affairs will
go to every nook and comer of the
globe in a record-breaking radio
broadcast.
Without knowing what the Presi
dent planned to include in his speech,
acting only on the assumption that—
regardless of how much of the mes
sage might be taken up by domestic
problems such as the business reces
sion-something of world-wide impor
tance was bound to follow recent White
House pronouncements on world re
armament and the Japanese situation,
the National Broadcasting Co. began
on Friday to send out short-wave mes
sages informing the peoples of the
world that they could hear the Presi
dent.
In 19 separate broadcasts, in 7
different languages, linguists drummed
up an audience over the New Year
week end with announcements of
when and where to listen.
By tomorrow noon, the broadcast
ers were confident, the world la gen
I
oral would be tuned in despite foreign
censors who might wish otherwise.
The international hook-up was so
arranged that when President Roose
velt begins his message in Washing
ton about 1 p.ru., his words will go out
not only over the three major Amer
ican networks (WEAF—N. B. C.,
WABC—C. B. 8., WJZ—N. B. C.), but
to all of Europe by short wave from
station W3XAL at Bound Brook, N. J.
While United States readers are
assimilating the speech in their after
noon newspapers, the message will go
out to the world again—this time in
an electrical transcription directed at
Central and South America.
A third broadcast is planned for
11:30 p.m. tomorrow for the peoples
of Australia, New Zealand and the
Orient.
To emphasize the significance of
the President’s word abroad, the
broadcast is tj continue on Tuesday.
This time Important parts of the
message—particularly those on for
eign relations—are to be picked out,
translated into French, German, Ital
ian, Spanish and Portuguese, and
hammered home to the world’s mil
lions who pay the taxes that support
the armies that either keep or disturb
the peace, .
\
Leon Henderson Is Third
Government Official to
Attack Price-Fixing.
BACKGROUND—
In quick change from somewhat
conciliatory tone, administration
spokesmen during the past 10 days
have berated big business vigor
ously, selecting as their particular
target the "60 families'’ recently
listed as possessors of a controlling
portion of the Nation’s wealth.
By the Associated Press.
Leon Henderson, economist of the
Works Progress Administration, charged
in a radio address last night that
monopoly and rising prices had brought
on the current business slump.
Mr. Henderson, the third Govern
ment official to take the air within
a week to denounce price-fixing by
agreement, said the decline in pur
chasing power was caused by “price
manipulation and the concentration of
ownership which makes monopoly pos
sible.’’
His speech followed closely similar
utterances by Assistant Attorney Gen
eral Robert H. Jackson and Secretary
Ickes.
The Henderson speech was coinci
dental with a demand by Representa
tive Dies, Democrat, of Texas for a
congressional investigation of recent
charges by administration spokesmen
that big business, dominated by 60
families, had brought about the busi
ness recession in an effort “to liquidate
the New Deal.”
Another development yesterday in
the discussion of monopoly was the
statement of Senator Borah. Repub
lican, of Idaho that “action’’ was
needed to meet the problem.
Victims of Monopoly.
“The blunt truth is,” Mr. Henderson
declared in his radio address, “that a
large part of the American economy is
no longer competitive, though not all
of the rigidity by any means is due to
private controls.”
The one-time economist of N. R. A.
said retailers were not to blame for
high prices this fall, but that they “fell
heir to the increased prices and in
creased wages of the spring.” He
added that they were always the vic
tims of monopoly and rising prices.
Mr. Henderson singled out the steel
industry, to illustrate his contention
that prices had increased beyond the
power of the masses to buy. Some pig
irons, he said, are above 1929, cast
iron pipe, 44.5 per cent above and
structural steel, 17.1 per cent.
“Yet the steel industry is now op
erating at less than the 30 per cent
capacity,” he asserted. "How can any
one reconcile these stubbornly held
steel prices with the American system
and Its concepts of competition? How
can they stay up unless some private
group is holding them up?”
’ Cites Other Commodities.
Among other commodities which he
said were higher priced than in 1929
he listed paper products, auto tires,
coke, brick and tile, some lumber
products and drugs.
He took issue with the argument
that increased wages had brought
about the decline by strangling pro
duction and keeping profits too low.
Citing a report of the National City
Bank for November, Mr. Henderson
said 26S corporations earned at the
rate of 13 per cent of net worth in
the first nine months of the year, as
compared with 10.4 per cent in the
same period of 1936.
"How high do profits have to be,”
he asked, "if not to induce confidence,
at least to maintain a low level of
grumbling?”
The Government, he said, had a
right to expect that the business sys
tem would make up for the reduction
in Federal spending.”
Dies to Offer Resolution.
Representative Dies referred spe
cifically to what he called “astounding
charges” by Secretary Ickes and Mr.
Jackson in saying he would introduce
a resolution calling for the inquiry
immediately after Congress convenes
tomorrow. He predicted the adminis
tration would support the measure "100
per cent.”
It would direct a committee of seven
House members to determine "who are
the monopolies or monopolists en
gaged in the sit-down strike to pro
duce economic chaos” and to afiord
Secretary Ickes and Mr. Jackson an
opportunity to “vindicate themselves
from the grave charges that they are
demagoglng to arouse the hatred of
the majority against the minority.”
i
Address to Be Broadcast
From House About 1
P.M. Tomorrow.
PRESIDENT DISCUSSES
AIMS WITH BANKHEAD
Taxes and Monopolies Among
Major Problems Facing Action
During Coming Session.
By G. GOULD LINCOLN.
President Roosevelt goes to the
Capitol tomorrow to address a joint
session of the House and Senate—and
the Nation—on the state of the Union,
his annual message ‘ to the Federal
Legislature.
Congress is assembling again after
a 10-day holiday, which began when
the special five-week session ended.
It will have before it, as tasks submit
ted by the administration, all the major
bills which the President recommend
ed for passage at the special session.
It also will have additional tasks.
The President yesterday discussed
the general legislative situation at a
"pot luck" luncheon with Speaker
Bankhead, at which arrangements
were completed for the appearance of
the Chief Executive at the joint session.
Although Speaker Bankhead said he
talked of numerous subjects with Mr.
Roosevelt, “up and down the line,” he
gavj no hint of what new legislative
proposals—if any—the annual message
would contain.
Will Speak About 1 P.M.
The opening session threatens to
be tense, particularly with excitement
over what the President has to say.
His address to Congress will be carried
by radio about 1 p.m. to the people
throughout the world. Special cards
have been issued for the joint session,
and only those who have such cards
will be admitted.
The President will speak from the
House chamber, where an elaborate
microphone set-up has been installed.
The speech will be broadcast over the
world in seven languages.
Unless recent utterances by admin
istration spokesmen have been all
smoke and no fire, Mr. Roosevelt will
demand of Congress new laws to curb
monopolies and trusts—to make big
business behave.
There has been a promise that the
revenue laws will be revised. Revision
—with some measure of repeal—of the
tax laws has been demanded as an
encouragement to business. The
House Ways and Means Committee,
where tax legislation originates, has
had a subcommittee at work on a tax
bill for months.
Fate of Federal Budget.
There also has been a hope. If not
a promise, that the Federal budget
will be balanced. The fate of the
budget is wrapped up in what Con
gress does in the matter of appropria
tion bills, what happens to business in
this country, and what changes are
made in the revenue laws. The hope
for a balanced budget during the fiscal
year ending June 30. 1939, has been
on the decline. Particularly will
budget balancing become an impossi
bility if business recession keeps up.
It means less revenue.
The President will send the annual
budget to Congress within the next
few days, possibly Tuesday or Wednes
day. He has warned Congress that
the budget must not be exceeded.
Based on this budget will be the an
nual supply bills for the Government.
Increases in appropriations and au
thorizations of appropriation for the
Navy have been indicated by Mr.
Roosevelt and leading members of Con
gress. Disturbed conditions in the
world, ~nd the more recent contro
versy with Japan over the sinking of
the Panay, have brought demands
that the United States have a Navy
second to none.
One of Several Items.
This item of naval increase is only
one of several, however, that will tend
to make it more difficult to balance the
budget. No one knows exactly how
much money will be needed for relief
during the coming year. With un
employment on the increase, due to
business recession, the sum may be
large.
The administration's crop control
bill, which has passed the House and
Senate in differing forms, threatens
to Increase governmental expenditures
greatly. The measure will enter the
conference stage and be whipped into
shape for submission again to both
houses.
The program for Congress as it
stands is heavy indeed, wtih little
promise of the early adjournment of
which administration leaders have
spoken hopefully.
First on the program—although not
likely to receive attention first—are
the wage and hour and crop control
bills.
Next are the President’s bill for re
organization of the executive depart
ment and agencies and the bill for
regional T. V. A.’s. All these were
included in the program for the spe
cial session.
Major Proportions.
The tax revision measure, the bills
to curb monopolies, the new housing
bill which has reached the conference
stage, and the appropriation measures
swell the program to major propor
tions. What other legislation the
President has to recommend for this
session has not yet been disclosed.
By a vote of the House the wage
and hour bill was recommitted during
(See CONGRESS, Page A-14.)
0
Snow Blankets New England.
BOSTON, Jan. 1 (/P).—The heaviest
snowstorm of the winter swept over
New England today, leaving a blanket
ranging in dept& from 2 Inches to
nearly a foot.
The Star's annual Business and
Financial Review, including the
year's Summaries of security
trading, appears today in part
four, pages El to 10.
I

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