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Evening star. [volume] (Washington, D.C.) 1854-1972, February 04, 1938, Image 11

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Clarity Needed
for Little
Might Formulate Plan
If It Knew Course of
Turbulent meetings such k
have been held this week by
the managers of small busi
nesses are by no means the
exception to the rule In Washington.
Some of the N. R. A. meetings of
business men were just as noisy and
And as lor the
United Mine
Workers Conven
tion held here
this very week,
there were epi
sodes which
threatened dis
order, only to be
overcome by the
Iron hand of John
It somehow is
tn the nature of
democracy for
persons to want
to express them
selves especially w
in even—as in th
case of the business conference—there
has been no prearranged scheme of
organization or preliminary work look
ing toward a definite program.
When one considers the many weeks
Of preparation that are spent by such
organizations as the Chamber of Com
merce of the United States or the
National Association of Manufacturers,
the numerous committees and sub
committees which work out in ad
vance the main principles and sub
jects for discussion, it is not surprising
that 500 men of the small businesses
should have had so much difficulty.
The names were selected almost at
random from persons who had written
the White House or other Government
agencies. Here and there some friends
of the administration in different parts
of the country were asked to suggest
names. No time was spent in check
ing up to see whether the business
0 men selected were producers or dis
tributors or retailers. There was no
attempt at classification by industry
or business type or even by function.
Needed Time to Develop.
Clearly every element of business is
related to some other. Big business
and little business are intertwined and
When it comes to forming a national
organization of men representing little
business men. the Department of
Commerce had a real job on its hands
and should have been given by the
President at least two months to do
the preliminary work.
This idea of summoning a lot of
men from small businesses may have
been an excellent gesture, but the
Government itself already has far
better facilities for getting data and
advice from business men scattered
all over the country and classifying
the data under separate subjects than
could possibly be done overnight in
the kind of conference which was
assembled here.
Naturally many of the business men
were full of ideas and wanted to speak.
For the last seven years the mails
ha ve been flooded with suggestions
and panaceas of one kind or another
directed to Washington officials on the
problem of how to end depressions
and bring prosperity.
But there will never be any value
to these ideas unless sifted by econo
mists and by those who are charged
with responsibility for special fields of
•tudy here.
Trade Associations Are Keen.
For one thing, trade associations
represent at the moment the very best
way that we have in America of con
tacting business, large and small.
These trade bodies are familiar with
the problems of their own industries
and business, and if it were desired
to get representatives of small busi
nesses it would have been a simple
matter to ask each trade association
to send delegates whose own busi
nesses did not exceed a certain per
centage of the total volume of any
given field. That would have been one
way to assure a real representation of
•mall units.
There could have been, too, a way
of getting advice as to the existing
situation from heads of small financial
institutions familiar with credit. In
deed, there are dozens of ways by
which information can be gotten by
Government besides having a mass
meeting with a lot of talk that only
reflects discredit on the lack of plan
ning by those who called the confer
ence in the first place.
It so happens that there are many
more small business units in America
than large units. In fact, it has often
been averred in these dispatches that
when the generic term "business” is
Used, the public thinks of a small
group of wealthy men fairly bulging
with profits and able to meet pay
rolls out of imaginary surpluses for
indefinite periods of time.
Discontent Registered.
What the events of the last few days
prove is that the small businesses are
discontented over the present eco
nomic situation and that they hold
the administration responsible. The
suggestions made for revision of tax
and labor laws are but a symptom of
the feeling that too, much law-making
has interfered with economic evolu
Certainly to determine what has to
be done there need be no more mass
meetings. Some day the administra
tion will ask a group of economists to
work with Government economists
The Capital Parade
Merchant Ship Bids Surpass Expectations—-A Ruling
Beat "Prevailing Wage" Clause in Housing Bill.
IF THE shipyards’ bids on the first large order of the Martime Com*
mission are any criterion, the President's $$00,000,000 naval arms*
ment program Is actually going to coat the Treasury something in
the neighborhood of $1,100,000,000.
This was only one of the unpleasant conclusions drawn from the alas
of the bids on 12 new freighters, opened at the commission a day or so ago.
- The lowest bid submitted by an
established yard averaged $250 a
deadweight ton, while one ship
yard had the “damnable effrontery"
(as a commission official de
scribed it) to ask the Government
to pay $377 a ton for its new
shipping. Even the $250 bid is
$50 ahead of wartime shipbuilding
The commission is in a state
of dank desperation about the
bids. And no wonder, since all bu
frankly of the opinion that, at the prices asked by the shipyards, vessels
cannot be constructed for private ownership. No steamship operator
could stand such a capital investment, even with the Government subsidy
to help him.
* * * *
Thus, the only answer would seem to be Government ownership,
and at a time when all vessels in the American merchant fleet are
growing obsolete, while the Navy clamors for potential supply ships.
There are two possible ways out, however.
* * * a
Two lower bids, within shooting distance of what the commission had
expected, were submitted. They came from firms of which the commis
sion is highly dubious, but Investigation may prove that these new ship
yards are as reliable as their established competitors. And the other pos
sibility is that the commission will succeed in prying lower bids out of
the established yards.
The new housing bill has been passed, with the Lodge “prevailing
wage’’ agreement cut out of it. The operation was a very near thing,
both for the doctor and the patient, and, although it’s all over now, its
story is still amusing and instructive. Among other things, it involves
the most direct defl to organised labor in the history of the New Deal.
o,(Vr When Senator Henry Cabot
Lodge of Massachusetts slipped
his prevailing wage provision into
their measure, the housing bills
sponsors were frantic. The youth
ful Republican's amendment,
which had all the immense pres
sure of the A. P. of L. behind it,
seemed to mean that pnlon wages
would have to be paid on all hous
ing projects. And throughout the
administration, from the White
uilding trades' union wate scales are
prohibitively high.
Chairman Marriner S. Eccles of the Federal Reserve Board, Housing
Administrator Stewart McDonald and Commissioner of Labor Statistics
Isador Lubin, authors of the housing bill, scarcely knew which way to turn.
Some way of fighting back at the labor pressure had to be found, yet the
administration could not afford a public anti-labor stand.
The little board of strategy turned their problem over until it
occurred to them that many towns and cities are incompletely
unionized. Especially for the construction of small houses, non
union labor is' widely used. Therefore, they went to the Department
of Justice and got a ruling on the meaning of the word "prevailing."
* * * a
The department obligingly construed “prevailing wages” so narrowly
that the strategists were able to tell nervous Senators that, if the amend
ment stayed in, the “prevailing wage” would have to be held to be a non
union wage in a great majority of the communities affected.
This was probably the administration's best weapon, but Messrs. Eccles,
Lubin and McDonald had to use every bludgeon in the armory before they
won The Conference Committee, where the amendment had to be cut out
first, was a particularly tough problem. All three Democratic senatorial
conferees, Wagner. Barkley and Bulkley, had voted for the amendment.
Majority Leader Alben W. Barkley, who faces a primary struggle with
Gov. A. B. “Happy” Chandler in Kentucky next year, had the worst kind
of cold feet, and Senator Robert V. Bulkley, who must also run again in
Ohio, seldom stayed stuck for more than five minutes at a time. And then,
after the Conference Committee had been lambasted into obedience, a
majority had to be recruited on the Senate floor. In this last operation,
generous pie-slicing had to be resorted to.
* * * *
« H"-' me utvui ivieo unu cxeriuuyc LI/rFlNMdnun « lUIIHIrS
division is now in progress. The division has the important duty of
administering the Public Utility Holding Company Act, and, since
the advent of Chairman William O. Douglas, the S. E. C. has been
far from satisfied with the methods of administration.
* * * *
The chief charge against that division was that many of its members
were much too cosy with the representatives of utilities companies. An
attitude of grim aloofness is considered more desirable. Therefore, a root
and branch reorganization has already been started, and Chairman Douglas
is giving the job of managing all division lawyers to his close friend, Abe
Fortas, a former professor at the Yale Law School.
Fortas, who assisted Chairman Douglas in his investigation of reor
ganizations in bankruptcy, will have the official title of assistant director
of the utilities division. He is a clever young lawyer, who may be relied on
to take a proper line with the utilities people.
(Copyrisht. 193K, by the North Amerlctn Newepsper Alliinee, Ine.)
and furnish their advice to members
of the Government, the Congress in
When that day comes, the business
men of large and small units prob
ably will agree with the conclusions
though they may not even be familiar
with the technical or scientific data
by which the conclusions are reached.
At the moment, the business world
asks for confidence. The administra
tion misunderstands the term as
meaning more conversation. What
the business men want is for the Gov
ernment itself to cease giving the im
pression that it does not know what
it wants to do from one day to the
other. Clarity and definition are the
things most people desire to see in any
complicated governmental operation.
And when political laws and economic
laws are set up against one another
for purposes of reform, it is even more
vital than ever that the rules be
worked out slowly and less impulsively
than has,been the case in political
government in the past.
(Cocrritht. 1938.)
Wilkins to Fly Over Area Where
Flyer Was Forced Down.
FAIRBANKS, Alaska, Feb. 4 UP).—
Sir George Hubert Wilkins, noted
Arctic explorer, was ready today,
weather permitting, to search the
area south of Barrow for Harold
Gillam, Fairbanks aviator forced down
Monday on a hop to Barrow.
Wilkins is based at Axlavik, N. W. T.,
where he has been awaiting a full
moon, expected about February 14, for
another moonlight flight in quest of
six Soviet flyers missing since August.
Gilliam and his mechanic, George
Saunders, were well provisioned.
iSa Sft rffc Ja. tftt jta. A A jb jn.
tor lour valentine
and for Valentine'’s Day
Beautiful Cards of All Descriptions, 5c up
Easy Made Valentines
10c to 25c
Jack Horner pies
filled with favors £| yh
with draw ribbons ^ Mr
Complete line of un „
table decorations w
Games of all kinds
"Ye Old Comic" Valentines
Many other fascinating
s, 1215 E St. N.W. Nat. 1586
Films Recreation for Goldwyn.
good way to spend an evening, said
Film Producer Samuel Goldwyn, Is
to go to a movie.
"I go to a picture show every night,”
he declared. ‘‘Why not? I’ve got to
do something to get my mind oft my
THS opinions of the writers on this page are their own, not
necessarily The Star’s. Such opinions are presented in
The Star’s effort to give all sides of questions of interest to its
readers, although such opinions may he contradictory among
themselves and directly opposed to The Star’s.
Imperial Confusions
British Tories Are Swallowing Bait of Fascist Nations,
Writer Asserts.
n* nnPATUv tdampcav l l.. n. -...u u
ONE of the most fascinating
spectacles in the world today
is to observe how one set of
private interests beclouds
larger aspectsssof the same private
interests, and how imperialisms cut
their own throats out of fear that
somebody else will do it if they don’t.
Nowhere is this better illustrated
than in England at the present mo
ment. England ________
is the center of
the British Em
pire, a common
wealth of states
scattered around
the world, living
with various de
grees of political
democracy under
the capitalist
system. For the
defense of that
empire three
things are need
ed-prestige, or
perhaps we had
better say repu
tation; force, and
lilies. The British
Empire Is now being definitely chaU
lenged in the Mediterranean by Italy
and in Asia by Japan, both with the
collaboration of Germany.
The reputation of Great Britain,
which is one of her greatest assets,
has rested on a fear, wholesome for
the empire, that it is unwise to twist
the lion's tail, plus a considerable
capacity for compromise and a great
deal of elasticity in situations where
Great Britain can afford to be gen
erous, or where wisdom decrees that
half a loaf is better than none.
Britain’s Natural Allies.
Britain’s natural allies in the Par
East against Japanese aggression are
the French, the Dutch, the United
States of America and Russia. Her
natural allies in Europe are the
French, the Lowland countries, Scan
dinavia and Russia. Italy is only a
useful ally as long as she has no
grandiose imperialistic dreams.
The Japanese purpose is to chal
lenge Great Britain. France, Holland
and the United States in the Pacific.
The Italian purpose is to challenge
France and Great Britain in the Med
iterranean. The German purpose, as
expressed both in traditional German
policy and mast clearly in National
Socialist literature, is to expand in
the East at the expense of the small
Central European states and Russia.
And both Italians and Germans have
ideas about exploiting South America.
With complete realism, therefore,
the Germans. Japanese and Italians
come together to play each other's
game, and it would seem that equal
realism would dictate that the coun
tries challenged by this alliance would
also stick together to play each other’s
Germany’s Plans' ter Future.
If one tries to put oneself into the
minds of the Germans, Italians and
Japanese, it is quite easy to follow and
even Intellectually to admire their rea
soning. Germany believes that her
future empire lies in Middle Europe—
the basin of the Danube and beyond
that in Russia. The strategy is first to
unite all Germans living at present in
rontinguous territories, and by means
of an enlarged and far more powerful
Germany extend a hegemony; that is,
one form or another of a Germanic
Empire, which will reach from the
Rhine possibly eventually to the Pa
cific across Siberia. This may seem
like a perfectly impossible megalo
maniac dream, but so is the British
Empire, if you think of it. a perfectly
impossible dream—one little island
controling large parts of every conti
The German conception of impe
rialism is not that of the nineteenth
century. It does not imply that Cen
tral Europe or Russia must be con
quered by the Germans. It implies
that these territories must be eon
In an enormous autarchial unit, or
ganised under military state socialism,
combining in itself all the necessary
resources and industrial equipment for
a self-sustaining congeries of allied
states, and in a position therefore to
dictate to an ever-increasing territory
of the whole globe.
The Italian dream, as expressed
time and again quite openly, and not
only in words but in action, is to erect
a great Mediterranean Empire on the
corpse of the British Empire in Africa
and Asia Minor.
Ambition of Japanese.
AUd the Japanese dream is to oust
the white man, and notably the Brit
ish, out of the Far East.
Now these are imperialistic dreams
directed against the greatest existing
world empire. But these aims are fur
thered, in the first line, by revolu
tionary propaganda. The collabora
tion between the new imperialisms
is not in the form of a military
alliance but in the form of an anti
communist pact, and the first assault
is not with gas bombs but with word
bombs. It is directed at the ruling
classes in the countries which the new
imperialisms wish to break, and its
object is to give them the Jitters and
convince them that the new imperial
isms are their saviors from Commun
ism. The propaganda is so obvious and
so naive, its objejct is so childishly ap
parent, that one is amazed that any
one can be taken in by it. But not
bnly are people token in, the so-called
very best people are token in. And the
Joker in the whole thing is that these
new imperialisms posing as the bulwark
against commurilsm, and by inference,
as the defenders of capitalism, are
Qpenly and avowedly anti-capitalist!
They are military states in which
capitalism is rigidly subjected to mili
tary alms. Unless they fail utterly,
they must, by their very nature, be
come increasingly anti-capitalist, for
the whole conception of capitalism is
Incompatible with the totalitarian and
autarchial state. National Socialism
is national socialism. It* socialism,
as it happens, is the socialism of an
army, but an army is not a capitalist
And, nevertheless, you see in Great
Britain today a group of Tories, who
represent British imperialism and Brit
ish capitalism, swallowing the Ger
man-Itallan-Japanese bait with arid
This group is afraid of an alliance
with Soviet Russia. They are afraid
of the French-Soviet pact. They would
like to see the French-Soviet pact
broken. The London Times says more
effectively than the Voelklscher Beo
bachter that it is not of Interest to
Britain whether Germany takes Aus
tria and Czechoslovakia, eventually
oontrols Central Europe and goes to
war to conquer Russia.
But if Germany merely should get
Austria and Central Europe I am will
ing to venture a prophecy—she won’t
have to go to war to get what she
Russia is already permeated with
German propaganda and German
agents provocateur. The Germans
have always known Russia better than
kny other European country doe*. The
German army and the Soviet army
collaborated closely well into the re
gime of Hitler. '
Challenge to Democratic World.
Russia has no conception either of
Western democracy or Western cap
italism, and never has had.
And a united Germany, Central Eu
rope and Russia is the one combina
tion that would represent a terrific
challenge not only to British imperial
ism, but to the whole liberal, capital
istic, democratic and Christian world.
They seem to forget that pre-Hitler
Germany also menaced Europe for
years with Just the same threat. What
Austen Chamberlain was afraid of,
what horrified the British at Oenoa,
, . have you tried Wilkins Coffee?
This Changing World
Fear of Mixing Politics With the Military Is Reason
Behind von Blomberg’s "Resignation.”
WHEN politics mix with ths army its either too -bad for the
politicians or for the army. It is for this reason that in
many European countries the officers and the men Under colors '
are deprived of their right to vote.
It was this fundamental thought which caused the Oerman generals
to object to the preaching of political doctrines in the army. They saw
a the disastrous results which such a
policy caused In the army of the
Soviets. And they endeavor _*d to
keep the Relchswehr Just a pow
erful body for national defense,
completely outside the religious
and social policies of der Fuehrer.
The officials anti-Semitism of the
government was fully Indorsed by
the army. In the days of the
Kaiser and even later during the
short-lived Weimar republic, Jews
irmy which remained an aristocratic
body reserved mainly to the Junkers and scions of Germany's aristocratic
and upper bourgeois class.
i • * • •
Field Marshal von Blomberg was never considered by his sub
ordinates as a strong man. He was a good and able organiser and
was useful at first when the Reich began to rearm. At the outset
of his career he was not friendly toward Hitler. In the days of
Hindenburg. when Von Papen was chancellor, he was distinctly
opposed to the Fuehrer.
* * * *
Later, however, he realised that Hitler alone could "save” Germany,
and soon after the latter’s ascension to power became one of the most inti
mate collaborators of Germany's Man of Destiny.
Von Blomberg's marriage to a young woman of “no consequence"
was objected to by the high command merely as an excuse to get rid
of the field marshal who was not sufficiently determined in his opposition
to prevent the introduction of politics in the army.
There is a rule in the German Relchswehr that no man can marry
without the consent of his superior officer and that no officer can marry
“below his rank.” That is to say the bride of a commissioned officer must
be of a good family. Exceptions are made for those who happen to come
from the commoners’ ranks provided they have enough money to make up
for their lack of “birth." Blomberg’s betrothed was a plebeian and
worked for her living. As such she could not be accepted in the ex
clusive caste of the officers’ families in the Reich. But had the general
stafT agreed with the war minister’s policies in the last few years, his
"faux pas" might have been overlooked.
* * * »
+ '**■'* uec/i »uiciy u Hurriuvr u/ l’lUSncs WrlUYrn (/If UTlYiy
and the high Nasi authorities. For Instance, when religions were
persecuted by the Nasi politics. Von Fritsch issued an army order,
demanding from all commanding officers to continue like in the past
the Sunday church parades when men were compelled to attend
Protestant or Catholic services. The officers of the day were required
to lead their men to church.
* * * *
It was because of this non-Nazi attitude of the high command that the
Reichswehr leaders were subjected to bitter attacks from Streieher's news
paper der Angriff. The result was disastrous for Germany's number one
Jew baiter. The Reichswehr ordered the confiscation and finally the
suppression of the most Important paper in Germany.
Von Blomberg, It is said, was not in favor of giving a black eye to
Hitlers right-hand man. This annoyed the rest of the general staff and
they availed themselves of the first opportunity to unload the man who
is more responsible than anybody else for the reorganization of the
Reichswehr into one of the moat powerful armies in Europe.
* * * *
The State Department still maintains that our policy regarding the
freedom of the seas has remained
intact. Yet. facts seem to belie this
Th# nf til# AmsHean ^
merchantman, the Nantucket Chief,
is typical. This vessel flying the <
Stars and Stripes, commanded by
an American and manned mostly
by American citizens, has been
stopped by Nationalist gunboat. It
was taken to a Nationalist port,
where the cargo of oil from Russia
was unloaded. The captain and th
All the State Department did wae to make representations.
There Is no question that our rights on the high seas outside Spain's
territorial waters have been challenged by Franco. We have a cruiser and
two destroyers on the Mediterranean for the purpose of protecting Ameri
can interests. Yet they did not make a move to protect the American flag.
The incident in itself need not be taken tragically; but it sets a pre
cedent which might have important repercussions on our freedom of the
seas policy.
wm tne treaty of Rapallo and the fear
of a united Russia and Central Europe
under a vigorous Communism.
Now, when exactly the same ghost
raises his head, but this time wearing
a brown shirt instead of a red necktie
and boasting a far more efficient or
ganisation, a far greater military force
and a far more subtle propaganda,
some British Tories are prepared to
welcome it as an angel of light.
(Copyright, 18,'(8.)
Headline Folk i
and What
They Do
Gen. von Fritsdi Is
Challenging Hitler
THERE never vu any love lost
between Adolf Hitler and Gen.
Werner von Frltsch, com
mander of the Reichawehr,
As Marshal von Bloenberg Is dislodged
from the war ministry by Frauleln
Gruhn, the Wallis Simpson of Ger
many, it's a broken field again in
vmm Reich power poll
tics, with Gen.
Von Fritsch, with
his old monocled
junker and army
backing, once
more challenging
Hitler. Not only
the neo- pagan Ism
of the Nazis, but
their foreign pol
icy Is assailed.
Even the cagiest
of correspondents
report a widening
cleavage between
National Social
ism and the
many again meets
fichswehr. and C
the hoary old problem of “who guards
the praetors.”
Von Hindenburg Is believed by
many army officers to have picked
Gen. von Fritsch as his successor, but
he wasn’t quite definite about It. As
Hitler shoved in there was much
Junker opposition to the peasant-born
Austrian corporal. Von Blomberg
squared that, stirring hostilities which
flared up with his marriage to a
carpenter's daughter. Gen. von
Fritsch, of ancient feudal lineage, la
said never to have been reconciled to
Hitler’s seizure of power.
In November, 1934, Hitler sent Col.
Gen. Hermann Goering to Gen. von
Fritsch to urge him to resign in favor
of Maj. Gen. Von Reichenau. The
general refused, and was supported in
this by a letter to Hitler signed by all
the Reichswehr division commanders.
For several years Von Fritsch is said
to have been quietly mobilizing mon
archist and army strength for a show
down with Der Fuehrer. This may be
it. or it may not. The censorship la
tight and authentic news is scarce.
Gen. von Fritsch, 57 years old, la
a professional soldier, in the army
since his early youth, rising to high
rank in the artillery in the World War.
His is an ancient landed family and
his cultural and intellectural back
ground is autocratic and feudal. In
1930 he became a commander of the
3d army district and was named chief
of the Reichswehr January J, 1934.
tCopyrlsht, 1938.J
UnUtn tU rnUM 5 I Alt
Man Admits Horse Betting Fraud
in Miami Court.
MIAMI. Fla.. Feb. 4 r^.—Charles
Heller has a fine of $500 and trial
costs in Criminal Court after admit
ting the charge of Mr. and Mrs.
Michael Licalzi of New York that he
obtained $10,000 from them on a horse
betting scheme. Judge Ben Willard
ordered him to leave the State.
Mr. and Mrs. Licalzi said Heller had
reimburse^, them. They charged he
obtained the money on the claim he
needed it to collect $106,000 in horse
rare winnings which he promised to
share with them. They became sus
picious and had him arrested.
^iwaiic shhhui incmn sireei^HMn
Special Chair Event
On Sale Beginning Tomorrow
One of the moat eom
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models sonet rooted
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tailored In a seleetton
of fine Tapestries,
Damasks, eta. In
pwm ooa ponovnea
Regular Price $70
February Side Price
A clever adaptation of the Colonial Fireside Choir.
Please note carefully the detailed specifications of con
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-^jnd the upholstery in a variety of the fine fabric*.
The quantity is limited, and os the special price Is
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* >
Remember the February Sale /* Statewide
W. & J. Sloane 711 Twelfth Street
Courtesy Parking, Capital Garage Convenient Charge Accounts

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