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Evening star. [volume] (Washington, D.C.) 1854-1972, June 03, 1938, Image 11

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r Right to Guard
Property Is
Utilities Fight Shows
Government Would Be
People’s Master.
THERE Is something naive, if
not incredible, in the an
nouncement made to tin Sen
ate on behalf of President
Roosevelt by Senator Barkley of Ken
tucky, the majority leader, in connec
tion with the proposed use of Federal
funds to build ..
plants to com
pete with pri
vate electric light
and power com
« In the episode
is a lesson so
far - reaching
that it may be
said to encom
pass the whole
philosophy of the
t New Deal — the
theory being that
the State is su
preme and that
the citizen has
David Lawrence.
no rights unless he gets them from a
beneficent Government. Originally
the founders of the Republic thought
they had written a Constitution where
by the Government was the agent and
not the master of the people. But
now the process has been reversed
and it is plainly stated on the floor
of the Senate that, because a citizen
might possibly go into the courts to
make sure his property is not unfairly
confiscated by the Government, the
law must be so written that he has no
r chance to go into court to protect his
interest at all.
The specific application of this idea
is to be found in the proposal to use
* "relief” funds for public ownership
purposes. Notwithstanding the fact
that the Nation is crying out for eco
nomic recovery and that a $12,000,
000,000 industry stands ready to spend
money if investors, who have been
frightened by Government competi
tion, can be reassured, the adminis
tration attitude is thus outlined by
Senator Barkley:
"Tire President took the position
* <at a recent conference) that Federal
money ought not to be allocated for
the construction of public utilities
whose rates are regulated by a public
authority until and unless the munic
t_lpality or other political subdivision
made in good faith an offer to pur
chase at a fair price the existing pri
fvately owned and operated plant.”
Litigation Feared.
Mr. Barkley thought at first that this
principle might be embodied in a law,
but then he and the other members
of the conference realized, he said,
that there might be "much litigation
in the courts over the question of fair
price, its acceptance or rejection,” and
hence it was decided better to ask
Congress to omit any restriction in
the law and let the President do the
As a matter of fact, m practice this
means that somebody in the Public
Works Administration, working in con
junction with the Tennessee Valley
Authority or some other public owner
ship advocates, would decide what is or
is not a "fair price." No provision
would be made by law for a full and
fair hearing and the citizen would
be deprived of any redress If the mu
nicipality offered what It thought was
a “fair” price and some bureaucrat
In the P. W. A. agreed that the offer
was fair enough.
In other words, the fear that the
courts might decide to interpret “fair
price" in conformity with established
'principles of what Is a proper basis
for valuation led to the decision not
to allow the citizen any opportunity
at all to protect his property. If Mr.
Roosevelt is kind, the citizen might
* get a fair deal. If the President,
F meaning, of course, through his subor
dinates. refuses to listen to the pleas
of the private company, the private
t company and its investors can be put
out of business by the building of a
competing plant. This is the New
Deal’s conception of Justice—namely,
that anything the New Deal decides
Is In its own Judgment necessarily
Distribution Facilities Are Key.
Now it so happens that every utility
system Is divided into three parts—
generation, transmission and distribu
tion. The local distribution facilities
amount to about 35 per cent of the
investment, as a rule, so that a utility
system which is compelled to let go
* of its distribution iacilities under
threat of a competing city system is
then left with 65 per cent of its in
vestment unpurchased. The proper
and fair course would be for the Fed
eral Government, If It does embark
on a public ownership policy, to in
sist that the cities, when given Fed
eral funds, should pay a fair propor
tion of the cost of the generating and
transmission end of the business. For
a utility system with no market of
customers cannot do much with its
generating and transmission facilities.
So we have a situation in which an
attempt to write into the law that
existing properties shall not be con
> flscated except after "a full and fair
hearing" has been disapproved by the
President himself, who wants the
The Capital Parade
Left-Winger Influence Spreads as Back Room
Advisers Help Roosevelt Shape Policies.
MORE and more the major policies of the New Deal are shaped and
perfected in the back rooms of the White House. In periods of
uncertainty, the President charts his course after general con
sultation with other high officials. At the moment, however, in
spite of deepening economic depression, the President is self-confident.
And in periods of self-confidence he withdraws into his circle of private
This was strikingly illustrated by the President’s lecture to the school
children of Arthurdale. Before Arthurdale High School’s goggle-eyed
graduating class the President sharply criticised the new tax bill. He gave
his reasons for letting the bill become law without his signature. He
described the kind of substitute he
would demand next year. And he WOHMMIDOINffc
drove the last and largest nail into BOYS"
the coffin of Government-business .
conciliation. „GREAT./
Since tax revision was first
contemplated, the President nas
made no more important pro
nouncement on this vitally impor
tant topic. Yet the proposed tenor
of the Arthurdale address was
never discussed in the cabinet. No
disclosure of the text was ever made to Secretary of the Treasury Henry
Morgenthau, Jr., or Undersecretary Roswell Magill, or any of the Treasury
tax experts. And the leaders of Congress were allowed, as usual, to remain
in a state of unilluminated ignorance.
Herman Ollphant, general counsel of the Treasury and a left
wing cuckoo in the conservative Morgenthau nest, supplied the bulk
of the material for the Arthurdale speech. After the President had
edited the material to suit his own inclinations, it was turned over
to his favorite left-wing advisers and amanuenses. They prepared
the early drafts and these were whipped into final shape by the Pres
ident himself.
Secretary Morgenthau and Undersecretary Magill were allowed to
voice their opinions, to be sure. But once they had spoken their pieces
their only notion of how the wind blew was derived from requests for
statistical information from the drafters of the speech. Until they read
it in the papers, neither Secretary nor Undersecretary was entirely sure
of what the speech contained.
* * * ±
The singular history of the Arthurdale speech discloses a basic fact
in spite of occasional set-backs, the Influence of the New Deal left wing
Is expanding daily into new fields,
.. youngish liberal-radlpal lawyers and economists who comprise
the left wing tended at first to restrict their operations. Utilities policy,
securities regulation, relief—these were their favored provinces But in
the last year or so, they have all but taken over the Justice Department,
and made its anti-trust law division particularly their own They have
emerged as practical political advisers, urging such maneuvers as the
President's aggressive fight for New Dealers In the primaries Because
they are advocates of spending, they have increasingly concerned them
selves with fiscal and financial policy.
And now they have taken over tax policy. The undistributed profit
tax was invented by them, more as a social weapon than as an income
producer. Their influence prevailed when the President decided to fight
. for the “principle of the tax" in
MYJoB/ splte of bltter opposition in Con
gress and the country. They hope
now to write into the tax laws
next year a distinction between
"speculative” and "productive"
investment, which would heavily
favor the latter at the expense of
stock market trading.
Nor do they confine their efforts
to the palace politics of the White
, — House. They are constantly alert
for opportunities to put their friends in key positions.
For example, Undersecretary Magill will soon leave the
Treasury. Securities and Exchange Commissioner John W. Hanes
is slated to succeed him. Simultaneously, an assistant secretaryship
will fall vacant. And aa Mr. Hanes is no tax expert, the left-wingers
plan to make their own man, O. John Rogge, both assistant secretary'
and tax expert-in-chief.
Mr. Rogge, a graduate of the Harvard Law School who is now
special counsel for the S. E. C., is at the Treasury for a two weeks’ trial
Unfortunately, Secretary Morgenthau has heard who Mr. Rogge's real
sponsors are. He has taken alarm, and the chances are that Mr. Rogge
will be returned to the S. E. C. But Rogge or no Rogee, the watchword is
still "leftward ho."
(Copyright, 193b, by the North American Newspaper Alliance. Inc.)
privilege of substituting for the fair I
practices of the court his own judg
ment, expressed through subordinates.
Common fairness would seem to dic
tate that, if the Federal Government;
wants to avoid litigation over a "fair
price." an amendment should be writ
ten into the law providing that an
impartial tribunal, consisting of Fed
eral Judges acting as arbitrators, be
selected and that both parties agree
1 in advance to accept as final their ar
bitration award.
Confirms Utility Fears.
There are plenty of ways of insur
1 ing a fair disposal of the problem if
i there were a will to fairness. Unfor
! tunately, the New Deal, though pro
i testing its desire to cut down competi
tion between the Government and
private utilities, is giving evidence
right along that it means exactly
what the utility men have feared,
namely, destruction of a *12,000,000,
000 Industry by gradual encroachment
on the private power business through
loans to cities.
If the cities had to borrow the money
in the open market, most of them
could not do so, and while the T. V. A.
and other Government agencies pro
fess to be leaving the matter to the
"free win" of the cities, the evidence
shows that the T. V. A., for instance,
carries on a secret campagin of en
couragement whereby the P. W. A. and
the T. V. A. work together to break
down the market of the private utility
systems. This controversy has ceased
to be a mere matter of private versus
public electric light systems. It has
become a simple matter of fairness in
Government and a square deal to the
citizen, for today it is an electric light
business and tomorrow it is retail busi
ness or automobile selling or anything
else in which the politicians may de
cide to grab more and more power
and authority.
(Copyright. 1038.)
---»- , .
Sorority to Meet.
Mrs. Cyrus Fishburn and Miss Or
rena Louise Evans will entertain Alpha
i Gamma Delta Sorority alumnae at
| the former's home, 8802 Forty-seventh
I street, Chevy Chase, Md„ with a buf
I fet supper Thursday.
Watch the FORDS, BROWNS, 1
H " SUGAR 45
| Libby’s Tomato Juice B8j;x- IT Wheatlas.2 >kn. II
Snider’s Tomato Juloe8®** 14 Bisfuiok . SB
Sunsweet Prune Jules "“>> it Cutrlte Wax Papar .. }gi IS
j WhltehousaApple But.Mtey- 10 Fig Bars . *k18; IS
Pat, Carnation, Borden's way The New 9 pkp. 00
Milk .4 jag, 25 EIA Cereal l U
t Smarty Dog Food ... 89 RHz Oraokers .i.n. IS
Lang’s Dill Pioklas .. «j«* 10 Dal Mali Corn _2 IS
Libby's g»”« Pickles . *}*' 10 Out String Beans.. .4 S3
Washington's Sensational Coffee Value 4A
Our MEATS really are QUALITY
*-'«•» Leg o’ Lamb n,. 25 Klngan'a Haas a. 2S
SDrlnr Wide ,r SkMk
short Hams wjyie Ik. 22 Prl*f Chuck Roastckaieo c.u ?>. ti
8h»nk Bee. " ™ or 8h»nk steer "•■■'Keek Cute lb. 1C
Juloy Lemons.<»»• 19 j Fanoy Spinach. ». S
6831 Wisconsin Ave.
Open Nights Bethesda, Nd. Parking
k K
Writes Maryland Legislator He
Has Requested Road Body
to Favor Project.
Special Dispatch to The Star.
BRENTWOOD, Md., June 3.—Pros
pects for the proposed widening of
Rhode Island avenue from Brentwood
to Hyattsville appeared brighter today
w’hen it wag learned that the project
has been given the support of Gov.
In a letter to L. Harold Sothoron
of Brentwood, a member of the Mary
land Legislature, who is chairman of
the Rhode Island Avenue Widening
Committee, the Governor said he had
forwarded to the State Roads Commis
sion a request that “every endeavor
be made to include it in the major
projects planned for the ensuing year.”
The Governor’s letter to Delegate
Sothoron was in reply to a recent
letter forwarded to him by the legis
lator in which he included a copy of
the resolution adopted several weeks
ago by the county commissioners of
Prince Georges County, indorsing the
CTHE opinions of the writers op this page are their own, not
1 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 be contradictory among
themselves ana directly opposed to The Star’s.
Washington Observations
.*"" .11 .7. •
Communism Doffs Its Beard to Present Ideals as
20th Century Americanism.
COMMUNISM in the United
States has Just washed its
face, put on a clean collar,
splashed a bit of white and
blue into its flag of red, and generally
dolled itself up to look as 100 per cent
American as possible. That, at any
rate, seems to be
the impression
which Comrades
Poster, Browder
and their cohorts,
recently In na
tional convention
assembled at New
York, desire to
put across to
the incredulous
people of this
country. Despite
a new party con
stitution breath
ing devotion to
democracy and
American prin
Frederic William Wile.
cipies or freedom, uncle Sams chil
dren are altogether likely to remain
Missouri-minded. They want to be
"shown” by performance rather than
protestation that Mr. Stalin's brethren
over here mean what they say. Mere
incantation of the names of Jefferson,
Paine, Jackson and Lincoln and the
hoisting of a slogan that "Communism
Is 20th century Americanism” will
hardly suffice to convince the people
of tire United States that the aims of
the party are not in fact subversive
of our political institutions, our eco
nomic ideals and our republican form
of government. If any doubt lingered
that the American Communist party
maintains close affiliation with, and
unalloyed devotion to Moscow, such
uncertainty would be removed by the
effusive messages which the late con
vention sent to Mr. Stalin and to
Secretary of the Communist Interna
tional Dimitrov. To Mr. Stalin it ten
j dered “warmest revolutionary greet
' ings. coupled with assurances of
"heartfelt enthusiasm and love." The
Russian Communist party was saluted
as "a brother party,” while Dictator
Stalin was glorified as the commander
in chief of forces which are blazing
the trail to a "Soviet America." Mr.
Dimitrov was gratefully assured that
it was the Communist International
congress at Moscow in 1935 that
initiated American Communists into
the mysteries of how the triumph of
their principles here is to be achieved.
Secretary Hull, it will be recalled,
| officially rebuked the Soviet govern
ment for tolerating the use of the
United States’ name in that connec
Future Communist strategy in this
I country was indicated at the New
York convention, which completed its
week's session on June 1. Red tactics
and energies henceforth will be largely
concentrated on leaking suckers and
scoffers alike believe that Communism
j has "gone American'* and "gone de
| mocracy.” To emphasize this alleged
l creed—to explode the general under
: standing that Messrs. Foster, Browder
; et al. dance to the tune piped in the
1 Kremlin and are merely marionettes
on strings pulled by Mr. Stalin—it Is
reported that official membership in
the Communist party of the United
States is now restricted to American
citizens. But formal enrollment means
little or nothing. In pursuit of its
avowed ambition for mass leadership
of the working class, the reds invoke
the selective draft system of multiply
ing their ranks. An intensive drive
among Negroes in the South and the
urban North is under way. The
scheme contemplates a compact, rig
idly organized, thoroughly disciplined
phalanx rather than merely formida
ble numbers. The Communist cru
sade, following this week's adoption
of a new party constitution, will be
conducted largely on the lines prac
ticed by other American political ma
chines. Stress will be laid on assem
bly district "clubs,” which are appar
ently to replace the underground
"cells” of the past.
* * * *
In an interview with F, Raymond
Daniell of the New York Times
Party Secretary Earl Browder, the ex
tremely personable 47-year-old Kan
san who did time at Leavenworth in
1920 as a war objector, has just dls
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cussed with almost disarming candor
the difference between the "political”
activity of the American Communists
and their "revolutionary” activity.
The former is carrledon in the full
glare of public scrutiny. “Revolu
tionary” activity is of subterranean
character. "Industrial” and neighbor
hood “units and fractions” operate
under cover of aliases and hidden
meetings. Mr. Danlell narrates.
“While the party seeks to discourage
undercover membership,” Mr. Brow
der’s interviewer states, "it recognizes
that in certain industrial establish
ments and neighborhoods the revolu
tionary work can be carried on only
in secret. For this condition the party
blames its enemies among the reac
tionaries. From experience in the past,
Communist leaders have found that
infiltration by party members into
labor organizations creates resentment
rather than friendship, and therefore
it seeks now to get in on the ground
floor, as it were, by winning and train
ing members in all walks of life to
take a leading part in the activities
of all groups forming to fight (in the
party's new decalogue) for economic
security, for peace and liberty under
* * * *
On some issues like social security,
Mr. Browder claims the American
Communist party now can count on
the support of as maift' as 5,000,000
voters. In his book on "What Is Com
munism?” he says it is the party's
duty “to lead the effective majority
of the population to the seizure of
state power.” Pending its capture,
they must proselyte for "socialism”
among all workers’ groups. There are
amazingly many Americans who don't
seem to understand that the Com
munist party is a legally recognized
institution in the United States. Wil
liam Z. Foster, its present national
chairman, was on the official ballot
as a candidate for President in 1932,
and received 102,991 votes. In 1936
Presidential Candidate Browder rolled
up 80,181 votes. In 1940 the reds
expect to make a much handsomer
showing, especially if the hopes of some
of their leaders for fusion with the
American Labor, Farmer-Labor, So
cialist or other radical groups are
* * * *
Diluting all the party's dreams and
claims with a liberal solution of con
servative doubt it is nevertheless evi
dent now that the American people
are face to face with the most con
certed and avowed plan to communiae
the United States that has ever had
to be combated. Mr. Roosevelt has
repudiated the Foster-Browder or
ganization, though it supported him,
while not "indorsing” him. In the
remarkable interview hereinbefore
quoted, Mr. Browder indicated that the
Communists consider F. D. R. neither
an ally nor a sympathizer. They dis
trust his leftward gyrations as much
as the economic royalists do, though,
of course, for different reasons
"Roosevelt." said Mr. Browder scorn
fully to Mr. Daniell, “is just a middle
of-the-road President. He isn’t even
a left-wing Democrat.”
Nevertheless and notwithstanding
This Changing World !
U. S. Retaliates for Fascist Propaganda in South
America by Helping Europe’s Democracies Arm.
BERLIN is worried over the position of the United States in the event
of another International conflagration. It seems that the past les
sons have been of little use to the German foreign office.
Fuehrer Hitler and the other leaders of the Reich realize that
it will be difficult for anybody to rouse the American people to make the
world safe for democracy. We are still some *20,000.000,000 in the red—to
say nothing of the other expenses in lives and money which the last
attempt cost the people of this country.
Because of this the German government felt that it could go ahead
and do whatever it liked in Europe. But instead of restricting its activities
to the European Held, Fuehrer Hit
ler, supported by Premier Musso
lini, attempted to spread in the
Western Hemisphere, principally in
South Ameriec.
For more than a year German
and Italian agents have been ac
tive in every Latin American re
public. Arms and ammunitions
were provided either in exchange
for raw materials or on tick, The
—uw— German and Italian radio stations
have made a specialty of broadcasts in Spanish and Portugese. These
broadcasts have, besides music, fashions and other such programs, also a
good deal of “news” favorable to the totalitarian states and unfavorable
to the others. There have been instances when broadcasts from leading
Americans have been drowned out by the German and Italian stations,
which are more powerful than ours.
The reports about the activities of the Berlin-Rome axis do not come
to Washington and New York from the American military, naval and dip
lomatic agents alone, but from business representatives of the Baldwin
Locomotives, the General Motors and other important American firms
with important interests in the southern continent.
They all say the same thing: "There is a determined drive on
the part of the two totalitarian states to undermine the existing
political institutions over here to the detriment of the United States.”
* m a *
Many responsible Germans feel that Wilhelmstrasse has once more
overplayed its hand. They begin to realize that while the people in this
country might not be willing to shoulder a rifle once more to fight an
illusory democracy in Europe, they might be induced to take part actively,
or by supplying Prance and Great Britain with arms and ammunitions,
in another struggle against the "centrals’’ for the sake of South America.
The propaganda of the European democracies has not lost sight of
this situation and it is doing its best to create a feeling throughout the coun
try that our turn will come next if we let the Germans and the Italians
have their own way.
This propaganda is much more efficient than the last war’s propa
ganda, which was based on an ideology and on stirring up emotions be
cause of the alleged cruelty of the German soldiers. The activities of the
German and the Italian agent* in South America cannot be denied—they
are factual. The new technical facility—broadcasting—ha* been a tempt
ing Instrument for the German*
and the Italians. And they have
overplayed their hand.
♦ * * ]fc
News from Portugal indicates
that the press and the radio do an
excellent yeoman's work for the
totalitarian states. Rome and Ber
lin are subsidizing both handsome
ly for the purpose of creating a
hostile atmosphere toward Britain.
The .Portugese foreign office
has been for centuries an annex of lo Downing street. The British felt
that their position in that country was so strong that they did not have to
bother about it. Now they have wakened to find that the government and
the people of Portugal are 100 per cent sympathetic to Rome and Berlin.
Two years of an indifferent arrogance from one nation and of intense
propaganda from the other two have changed a situation.
American armament manufacturers are getting ready to supply Great
Britain and Prance with large quantities of war material. It is not a ques
tion of selling to the London and Paris governments only airplanes but also
other modern war equipment. The transactions are settled in cash for the
time being. Credits may follow later, despite of the Johnson act.
| the Communists’ new ‘party line”
! (policy), which aims at an ”Ameri
I can Popular Front,’’ calls for support
of most of the New Deal domestic pro
(Coprrlsht. 1938.)
Truckers to Open Office.
The new headquarters of the Ameri
can Trucking Associations, Inc., will
be opened formally June 15 at 1013
Sixteenth street N.W. Reception hours
will be from 5 to 7 p.m, i
. 1
Capital Student to Graduate. I
Larry B. Hume, 2101 Connecticut
avenue N.W., Is among the 151 seniors
at Culver Military Academy. Culver,
Ind., to be graduated at exercises there
Wednesday. He was prominent in the
jumping events on the track team.
$615,000 Spent on Churches.
Forty-three churches in London
have been restored or repaired at a
cost of $615,000 in the last seven years.
..■ l i i *
Headline Folk
and What
They Do
Girl Seized by Czechs Is
One Involved in Row
at Hyde Park.
GERMANY seized on the beauti
ful Unity Valkyrie Freeman
Mi tiord of England as the
“ideal Nordic woman,” as
Field Marshal Goering put it. The
Czechs seized her as a spy, and. con
sidering the fuss made over her by
Adolf Hitler and all the Nazi moguls.
MIm rreera»n-Mitf«rd
ner arrest would
appear to be a
provocative inci
She Is the
daughter of Lord
Redesdale. Just
now plugging the
Nasi cause dili
gently in the
House of Lords.
In 1934 Adolf
Hitler saw her in
a coffee house in
Munich, with her
sister, the former
Mrs. Bryan Guin
ness. He invited
tnem to nave coffee with him, and
immediately thereafter the Reich
began throwing bigger parties for the
English girls than it ever had for any
of its own frauleins.
Miss Freeman-Mitford was Imme
diately identifed as an apprentice in
Nazi agitation. Her novitiate was
brief and she quickly advanced to re
sponsible anti-Semitic assignments,
as a writer for Julius Streicher’s news
paper. One particularly vehement
piece concluded. “Please publish my
name, for I want every one to know
I'm a Jew-hater."
Miss Freeman-Mitford, 24 years old.
is the girl who was mauled by a
Hyde Park crowd when she wore a
swastika armband at a Left-Wing
demonstration early last April. When
she returned to Germany last month
it was to renounce her British alle
giance and take on German citizen
Adolf Hitler's unlimited favor and
attentiveness, squiring the young
woman at fetes of the party elite, has
led to the possibly wild-eyed con
jecture that she has displaced the
glamorous Leni Riefenstahl in Der
Fuehrer's affections. A New York
magazine recently printed a long arti
cle in which it reported all Nazi
Germany at work on the build-up of a
romance. The article offered no evi
dence and to this reader looked phony.
But there is no doubt the charming
British girl is smiling through in
Germany and with her arrest may
aggravate the European crisis. It will
be surprising if Der Angriff isn't woof
ing and snorting angrily today.
Lord Redesdale has six daughters
and one son. She is the fourth oi the
(Copyright. 1038.)
Will Receive Diploma.
Oliver Kenneth Marshall, jr.. will
be graduated from the Citadel, mili
tary college of South Carolina, at
exercises there tomorrow. He Is ths
son of Col. and Mrs. Oliver K. Mar
shall, of East Falls Church. Va.
YOUTH tells its Story!
Every father, every mother, every graduate
booking for his first job, every college student, every
schoolboy and schoolgirl will want to read and study
today’s new issue of LIFE.
For this week, LIFE devotes 50 pages to
a revealing and significant cross-section of the lives
and activities of the twenty million young Ameri
cans between the ages of 16 and 24.
LIFE shows you how rich girls live and
how poor boys struggle — on the farm, in the fac
tory, in the classroom. LIFE shows you what they
think about war and sex and politics, what they are
doing to develop a new code of morals, and what
they think about the economic system under which
most graduates are finding it so hard to get jobs.
LIFE’S unique pictorial survey of Ameri
can Youth is a social document of the utmost impor
tance, inspired and guided by the two-year research
of the American Youth Commission. Until you have
seen it, you cannot fully understand the hopes and
problems of America’s next — and perhaps most
important — generation.
Be sure to get yeur copy of LIFE today!

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