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Roosevelt Message Is Applauded by British Press Official Nazi Reaction To Congress Speech Is Reserved Bi th* Associated Press. LONDON, Jan. 4. —President Roosevelt’s message to Congress yes terday brought favorable comment In the London press. The Dally Telegraph said: ‘■The world is learning to find its oracle * * • in the voice of the President of that great neutral Re public of the west into whose hands has passed the keeping of the neu tral democracy's conscience and whose potent influence may deter mine in the last resort a hovering balance between human freedom and totalitarian depotism. • * * The un derlying tone of this notable ad dress might be called Lincolnian.” The News-Chronicle said: "President Roosevelt stands head and shoulders above all other men in authority and power with which he speaks for democracy and free dom. His great speech to Congress yesterday made that clearer than ever. His w'ords come to all people of good will in Europe as a breath of sanity, of sense and of hope.” The Daily Mail said the address indicated that while the United States “wisely prepares to defend herself she will do her best to keep out of war.” The Daily Express and the Times did not mention the message edi torially. Little New in Message, Nazi Sources Find By the Associated Press. BERLIN. Jan. 4 —Official German reaction to President Roosevelt's message to the United States Con gress was reserved today. Authorized Nazis said the message was "addressed to the American peo ple and it was for them to decide whether the speech was compatible with congressional expressions of neutrality.” They added that there was "not much new" in the speech as the President previously had stated he didn't want to be militarily involved in the war. Nazis said President Roosevelt's references to the threatened exist ence of small nations was inter preted by Germany as meaning, for example. "Greece in 1916-17, which was forced into fighting for the al lies, and small countries today which the British likewise are oppressing." “Whether that is the side the President sees," they continued, “we don't know, but that's what we see.” National Budget (Continued From First Page.)_ deficit then would total $2,176,000, 000. The Chief Executive carefully omitted any precise recommendation as to what kind of tax he would pre fer, but he cautioned the Congress that "in seeking additional sources of revenue, I hope that the Congress will follow the accepted principle of good taxation of taxing according to ability to pay and will avoid taxes which decrease consumer buying power." Mr. Roosevelt is understood to be of the opinion that increased income taxes would not fall into the group decreasing consumer buying power, a circumstance which may lead to favorable consideration of this levy for the special defense needs. While Governor of New York he sponsored an income tax assess ment imposed on the tax actually paid; in other words, raising by a fixed percentage the tax originally computed and paid. Furthermore, the New York State assessment was made retroactive in such way that it became quickly collectible, a factor of importance in the present Fed eral situation as the public debt hovers so close to the statutory limit. The President left open to himself the possibility of asking for more than $1,300,000,000 for various work relief programs, remarking in his message that this total “represents a large—perhaps too large—reduction of current expenditures.” Affected are the Work Projects Administra tion, the National Youth Adminis tration, the Civilian Conservation Corps and the grant program of the Farm Security Administration. For 1940, the comparable total for these agencies was approximately $2,000, 000.000. “While the (1941) estimates are appreciably less than those for the current year,” Mr. Roosevelt said, “I am hopeful that they will prove adequate. The Work Projects Ad ministration will be able to provide employment for an average of 1.350.000 persons. The National Youth Administration can employ an average of nearly 600.000 Ameri can youths, and the Civilian Con servation Corps will operate 1.227 camps and provide for a monthly average of 230,000 enrollees. The Farm Security Administration will operate on about 80 per cent of its 1940 level. Relief expenditures should be closely geared to actual needs. If conditions fail to meet our hopes, additional funds may be necessary. I may, therefore, submit revised estimates later in the ses sion.” May Ask for Balancing Tax. Presumably if any upward revision Is made in this category, the Presi dent will ask for a compensating tax provision or for the politically dangerous increase in the public debt limit. By comparison with the above fig ures of persons covered in the vari ous relief programs, the W. P. A. this year is employing an average of 1,850.000 persons, the N. Y. A. provides for about 706,000, and the C. C. C. has had an average monthly enrollment of about 295,000, Despite its being the largest item In the program, the President of fered little detailed discussion of the national defense estimate be yond noting that the $1,800,000,000 is an increase, roughly $300,000,000, over the present year. “It is far less,” he said, “than many experts on national defense think should be spent, though it is, in my judgment, a sufficient amount for the coming year.” The defers item w’as broken down, however, to normal and emergency categories, the 1941 ex penditures of an emergency classi fication being figured at $300,000,000. For the present year this emergency expenditure was placed at $160,000, 000, although more than this Is be ing obligated for future outlay. The separation, Mr. Roosevelt I ■ - — ■ noted, will “help to focus attention on our emergency defense expendi tures and the problem of financing them. It will also facilitate the re turn to a normal defense program when the current emergency has j passed.” In this connection it was observed I that his special tax recommendation | for $460,000,000 would cover only the ; estimated emergency expenditures of $300,000,000 next year and $160,000, | 000 this year. Cites National Income Rise. In offering a positive defense of the New Deal practice of a "realistic approach to a fiscal policy related to economic need,” Mr. Roosevelt pointed with particular pride to the fact that from 1933 to 1937 the national income rose by $30,000,000, 000, "the largest absolute rise for any four-year period in our his tory.” "I propose,” he added, “in the field of fiscal policy that we adopt the following course: We should count upon our natural increase in receipts from current taxes and a decrease in emergency expenditures, and we should try to offset the unavoidable increase in expendi tures for national defense by special tax receipts, and thus hope to se cure, for the overall picture, a grad ual tapering off, rather than an abrupt cessation, of the deficit.” Later, in connection with esti mated tax receipts, the President revealed a fear that there has been "an impairment of the productive ness of the tax base arising from the revisions in 1938 and 1939 of corporate and individual income and capital gains taxes.” Actually, the estimate of gross re ceipts totals $6,150,760,000, but $602, 800,000 of this sum is earmarked on collection for the Federal old-age and survivois’ insurance fund, leav ing the $5,548,000,000 net of normal receipts. This social security sum, inci dentally, is larger than the com I parable $537,355,000 estimated for this year In addition, social se | curity expenditures—grants, admin j istrative funds, etc —jump from an estimated $378,378,000 this year to $436,877,000 for 1941. "Down to Bedrock of Congress.” On several occasions in his message the President slapped di rectly at critics of New Deal fiscal policies and those who have led the cry for a balanced budget. One I instance occurred in his comment on the fact that for operating costs of the regular Government depart ments. the estimate of 1941 expendi tures is about $1,000,000,000. At that figure, he said, costs "are down to the bedrock of the activities and j functions ordered by the Congress. If further savings are to be made in these operating costs, the Congress , will have to direct by statute the elimination of many functions. And even if they should do so, the amount saved in this budget could only be a small percentage of the total. "Therefore, those who call for further cuts should have the courage and the honesty to specify where they should be made. "This item represents the basic financial requirements of the Gov ernment. Blue pencil inroads are not easy to make. In the face of large and appealing requests for in creases I have held appropriations and estimates of expenditures gen erally to the 1940 level or below Where legislation has added new activities I have offset the cost by reductions in old activities.” Figures Net Debt at 35 Billions. And on the subject of the mount ing public debt, he spoke out as follows: “Those who state baldly that the Government’s debt is 42 billion dol lars—&nd stop there—are stating a deceptive half-truth calculated to make our people apprehensive. For one thing, it would clarify the public mind if it were pointed out that of the 42-billion-dollar figure the amount incurred between June 30, 1933, and December 31, 1939, is just over 19 billion dollars. For another thing, it would be more honest and more honorable for them to say that while one line in the national budget shows a national debt of 42 billion dollars, other lines indicate that the vjuvcinuiem nas t Dinion dollars of cash, gold available for debt re demption, and proprietary interest in Government corporations, which reduces the net debt to 35 billion dollars.” Declaring emphatically that “the credit of the Federal Government has never been higher,” the Chief Executive added: “The debt accumulated since 1933 represents a far more prudent and productive use of the people's savings than much of the enormous private debts piled up in the 20s. The billions that were borrowed for speculation, for foreign loans, for second and third mortgages on overproduced commercial construc tion, hardly represented the most prudent use of our people’s savings.” In connection with the category of public works and investments—in which were included useful public works, commercial ship construction and loans for agricultural aid—the President took occasion to renew a previous recommendation that Con gress authorize Government cap italization of projects which have proved themselves self-liquidating. Boulder Dam Cited. As an example, a Government spokesman pointed out that the Boulder Dam project costing about $100,000,000 is now paying its own way. Capitalization of this project by sale of bonds would return to the Treasury the original cost of the venture. “I would confine this principle,” Mr. Roosevelt said, “to projects that are definitely capable of yielding revenues sufficient to defray with X interest their cost of construction. In accordance with this principle, I propose that the requirements for new self-liquidating loans of the Rural Electrification Administration be met through funds advanced by the Reconstruction Finance Corp. instead of by direct appropriation." With regard to his suggestion that $700,000,000 in "excess capital funds” might be recovered from Govern 1 ment corporations and become part of the 1941 receipts, the President said that the Government now has a proprietary interest amounting to some $3,500,000,000 in public cor porations. ‘‘On the basis of preliminary studies,” he added, “I estimate that it will prove feasible to reduce the capital funds of some of these cor porations by an aggregate figure of $700,000,000 without in any way im peding their operations.” Personnel (Continued From First Page.) the plan eventually to make the fund actuarily sound, thus com pensating for the failure of the Gov ernment to make any appropriations for retirement in the early years the law was operative. One-Step Increases Planned. Under the pay-raise formula which the Budget Bureau worked | out, it was proposed to grant one uiticaaca num an nually upward, and averaging around $75. They were to be made on two bases: To employes earning less than $3,200 who have not had a promotion since June 30, 1938, and to those earning $3,200 or more who have gone since June 30, 1936, with out a raise. It had been estimated that $6,900, 000 would be required to finance this plan—$3,000,000 "new money’’ and $3,900,000 on salary savings that customarily are effected by not filling vacancies, or similar devices. As the matter stands now, only this latter sum will be available. The recommendations of the Budget Bureau followed a study that was inaugurated last year at the request of the House subcommittee that handled the Post Office Treasury appropriation bill. Talcing cognizance of widespread com plaints about the lack of a con sistent promotion policy throughout the Government—except in such agencies as the postal service, where automatic promotions are in effect— the subcommittee asked the bureau to survey the situation, and make whatever suggestions it was believed were called for. Wide Divergence Uncovered. The Budget Bureau study dis closed that there not only has been a wide divergence between the policies pursued by the depart ments and independent agencies, but even between the units within these establishments. The resultant recommendations were viewed as a rough-scale attempt to level off these differences. Despite the fact that the Classi faction Act was designed to provide for period pay raises for qualified workers, promotions have been at a standstill, generally, throughout the executive agencies for the best part of the past decade, with the retrenchment policies of the early days of the depression hanging on so far as salaries were concerned. In recent years employes have urged that this situation be cor rected, seeking automatic raises uni versally and higher minimum scales, but although numerous pay bills have have been introduced, they have made no headway. Because of the war the usual list of latest dates for sending overseas Christmas mails were not issued in England this year. A# Finch iContinued From First Page.) ran the bureau in President Hoo ver's time and continue their tactics for the purpose of embarrassing me by ajscribing false motives for many of infractions.” . „ “Protected by Regulations. He said the clique was protected by civil service regulations and any attempt to "can them” necessarily would result in trials. Regarding reports that Mr. Finch was asked to resign because he was favorable to former President Hoover, Mr. Ickes denied any truth in the statement. "I recommended Mr. Finch to the President for appointment ana knew at the time he was a member of an engineering committee set up in 1922 by Mr. Hoover,” the Secre tary added. "I would not now berate him for being favorable to Mr. Hoover.” Mr. Ickes said he has appointed a number of known Republicans to offices in the Interior Department and many others without any per sonal knowledge of their politics. The mine inspection bill which is now before the Senate was reported favorably from the Mines and Min ing Committee. Mr. Finch was not opposed to the bill, the secretary ex plained, although he quoted the bureau official as saying the bill would be "displeasing to the coal industry.” “Teeth” Taken From Bill. The committee extracted the "teeth” from the bill which would have made it possible to inspect mines for health and safety reasons in response to a petition by a ma jority of the underground workers in a mine or their representatives. However, the bill in revised form will give the Interior Secretary con siderable latitude in ordering coal mines inspected to safeguard against accidents. “My stand on this bill,” said Sec retary Ickes, "is that in the inter ests of health and safety the Gov ernment should have every right to inspect mines under all circum stances.” Mr. Ickes said the resignation of Mr. Finch was not to be construed as a first step toward a “purge” of the Bureau of Mines. "I don't expect to can anybody else,” he said. Printed reports concerning Mr. Finch’s resignation, Ickes said, could have come from no other source than certain officials in the Bureau of Mines and he characterized the reports as "pure invention.” There Two Former Officers Of Tobacco Company Sought in Fraud Standard Commercial Indictments Charge $4,000,000 Involved ] By the Associated Press. NEW YORK, Jan, 4.—Federal au- j thorities sought two former officers ( and directors of the Standard Com- ] mercial Tobacco Co., Inc., today on 1 charges growing out of what the j Government described as a >4,000,- , 000 fraud. i Yesterday, the two, Ery Kehaya, 1 who became president and director : of the tobacco company in 1916, 1 and Harry D. Meyer of Bronxville, N. Y., a former officer and director of the firm, were indicted by the 1 Federal grand jury with two other 1 persons. The Standard Commercial Co. and the Standard Commercial Ex port and Finance Corp. also were named in the indictment, which charged conspiracy, mail fraud and , violation of the Securities and Ex change Act of 1934. Others Indicted. Louis C. George, former vice presi- i dent of a securities firm at Madison, Wis., now serving a one-to-three vear term in Wisconsin State nrison for violating the State securities law, and Harry J. Rothman, an over-the-counter New York broker, also were indicted. Rothman was arraigned before Federal Judge Wil liam Bondy, pleaded innocent and , was held in $2,000 bail. Bench war rants were issued for Kehaya and Meyer. Kehaya was a director of the Axton-Fisher Tobacco Co., Inc,, of Louisville, Ky„ which is not involved, from 1936 to May, 1939. Meyer, Federal authorities said, had been employed as a customer’s man in various Wall Street brokerage houses and lately had acted as assistant to Kehaya in management of Standard Commercial Tobacco. The defendants, the Indictment charged, used Standard Commercial Tobacco to gain control of the Axton-Fisher Co., then manipulated the stock of the former company by means of wash sales and touting through men employed in brokerage houses here and elsewhere in the country. Government Charges. In 1937, the Government charged, the defendants sold $276,000 of; Standard Commercial Tobacco stock over a period of two months, under written guarantees and oral promises that they would repurchase the stock at an increase of $1 per share within a few weeks. The stock jumped from $2.50 per share to $13.50 and thereafter, the j Government alleged, the defendants withdrew their support, the value of the stock collapsed and reorganiza- j tion proceedings for Standard Com- ' mercial Tobacco followed. Stenotypists to See Speed Demonstration- :'r.. The Washington Chapter of the Associated Stenotypists of America will meet at 7:30 o'clock tonight at the clubroom and town house. Nine teenth and F streets N.W. A speed demonstration with'a, stenotype machine will be given by Miss Mildred Arms of the Ward & Paul reporting firm, and Howard B. Smith, stenotype reporter, will dem onstrate a machine he has perfected. have been occasions for complaint about the operations of the Bureau of Mines, Mr. Ickes said and one of these grew out of attempted sale of helium to Germany about two years ago. Sabotage Attempt Charged. “The bureau actively opposed me when I attempted to block the sale of helium to Germany,” Mr. Ickes said. "When I did stop the sale, then they tried to sabotage me and my policies. I told them that the Secretary established the policy for the bureaus under him and would continue to do so.” Mr. Ickes said he had never had any personal clash with the Mines Bureau chief and his only complaint against him was that he "couldn't control his own people.” “When I appoint a new chief of the bureau, it will be some one who is strong enough to handle them, or I will get another director." he add ed. The new director, whoever he will be. the Secretary explained, must have "plenty of iron” in his system. -—- 1 Editorial Views of Message Newspapers Offer Varied Opinions On Address to Congress Following is editorial comment of the Nation's newspapers on President Roosevelt’s message to Congress yesterday: New York Times (Independent Democratic)—“• • * Mr. Roosevelt's ounsel to the American people in uch a time as this is sound counsel. :t can be said, with justice, that le himself has not always followed he advice he gives: That he avoid actionalism and overstatement in iur discussion of public questions. 3ut he has chosen a particularly op portune time to urge us to cherish hat national unity which is our ichest heritage, and to guard igainst permitting it to become nerely a pious hope or a high ounding phrase. • • •” New York Herald-Tribune (Inde pendent Republican)—"* • • Rarely lave the emotions and excitements pf war been more expertly used in in effort to hide failures in domestic iffairs than in yesterday’s message, it was a beautiful smoke screen that ;he commander in chief of the Navy ;hrew about his battered (political policies in the home line of battle, rhank goodness that the first strong preeze of common sense will drive t out of sight and mind. With much hat Mr. Roosevelt said of the for •ign problems confronting America, ve heartily agree. * * *" Baltimore Sun (Independent Democratic)—"Mr. Roosevelt’s ad Iress * * * was chiefly remarkable in hat It emphasized and argued for * * • the one achievement of his ad ninistration which is based on the iccepted principles of a free econ >my. The powers under which the listing reciprocal trade agreements lave been negotiated are about to expire. To persuade Congress to re lew those powers the President nade an Impassioned defense of them. • • * It may be that he now sees that the work done by Mr. Hull s the truly enduring contribution if his administration to the welfare 1 if the country.” St. Louis Globe Democrat (Inde- I lendent)—“Congress on its opening iay heard a forceful, well-argued ippeal for national unity. Except for the item of trade agreements, iiere is remarkable unanimity in Congress on the Government's for :ign policy. But whatever may be ;he degree of agreement on foreign iffairs, there is no similar meeting if minds on domestic matters. Spending - lending, for instance. Economy cuts. The Wagner Act. Ml the elements of lively battle are iresent in Congress.” Cleveland Plain Dealer (Inde- ; lendent Democrat) —“On the ivhole, a powerful preachment for looeo ic thic nrhciHontial m Peace is worth defending, democ •acv worth fighting for, the ideals of j he Republic too precious to fritter iway. "Americans will thank their Pres dent for the assurance that there is »t present no prospect of their coun :ry becoming involved in a military say in Europe's war.” Philadelphia Inquirer (Independ ?nt)—"* * * His message * * • for a Nation united for peace, for self defense and for economic stability constitutes a clear call to all Amer ,can citizens to co-operate for the ittainment of this imperatively nec sssary objective.” . Philadelphia Record (Independ mt)—"The President looked in two directions: To the nations abroad •ngaged in war and to our people, tvho are maintaining peace. We are glad he didn't blink at the unpleas ant phases of the American scene. He recognized that after seven years of effort our gravest problem—un employment—has not been solved.” Detroit Free Press (Independent Republican!.—"* * * The decision of the American people is for complete abstinence (from war). And when Mr. Roosevelt spoke, half patroniz ingly and half sneeringly. of those who think we can go our wav and mind our own business, he was by implication saying that the admin istration either is not equal to per formance of the full will of the Na tion or doesn't want to obev the Nation.” Boston Herald (Republican) — "The eighth (and probably the last) of President Roosevelt's annual messages to Congress on the State of the Nation is conciliatory, satis fying and about as unpartisan as such a document can be. * * • His conception of a 'common sense’ pro gram may appear to others as one based on ‘panic.’ It reads as if it were designed for other nations as well as ours. To his warning that ‘we cannot afford to face the future as a disunited people' if democracy is to justify ‘its existence as the best instrument of government yet de vised by mankind,’ there will be a roaring, Nation-wide chorus of as sent.” Providence Journal (Republican Independent)—"There were practi cally but two recommendations to the Congress in all its 3,000-odd words. • • * For the rest, the message was a calculated and typically Rooseveltian statement of the po litical availability of the President.” Hartford Courant (Republican) — "The President states sound policy when he urges the Nation to build up its democracy at home and con tinue policies that will enable other nations to have greater economic freedom than they have enjoyed in the past, but he endangers all that he wants to stand for when he rec ommends a foreign policy based on intervention that can only result in loss and futility. Boston Globe (Independent)— "Although his remarks on the wars in Europe are vigorously unneutral, his determination to avoid military Involvement is emDhatic. • • • The New Deal is not urged as in present need of addition or development. There is nothing provocative in this message which begins a campaign year. • • •” Trenton (N. J.) State Gazette (Independent)—"* * * Through its omissions, as well as the matters with which it deals, this message conveys the impression that after seven years of effort and of battle the objectives set in the dark days of 1933 have in large measure been achieved and that the problems of the present are principally those that have their origin abroad.'' Victim Fleeing Bandit Is Shot in Arm Malcolm J. Annadale. 40. of 2611 Adams Mill road N.W.. was in Emergency Hospital today with a bullet wound in his arm, which he said ne received while fleeing from a holdup man in the 1400 block of Euclid street N.W. shortly after mid night. The victim told police the bandit —a white man. about 34—fired at him as he ran down the street, the bullet piercing his right elbow. Al though admitted to the hospital. Mr. Annadale was said to be in a good condition. F. S. Dickson Dies; Was Once Head Of War Trade Board Funeral Services Will Be Held Tomorrow With Burial in Philadelphia Frederick S. Dickson, 58, former head of the World War Trade Board, died early today in Homeo pathic Hospital after a four-day illness. In recent years he had been a partner in the Whaley-Eaton Corp., a business information serv ice with offices in the Munsey Build ing. A native of Philadelphia, he came here during the World War to assist the Government in licensing ex ports and imports for the trade board. At the conclusion of the war he was transferred to the State De partment to close the business of the board. He then was put in charge of licensing dye and chemi cal imports under the reparations agreements. He joined the informa tion service in 1925 and became for eign editor. He was graduated from Yale Uni- •, versity in 1903. He was a coxswain of the crew there, and a member of the Delta Psi Fraternity, which his father helped found. He was a mem ber of the Yale and Delta Psi Alumni Associations here and was a deacon in the Covenant First Presby terian Church. Besides his wife, Mrs. Bessie Fahnestock Dickson, he leaves two sons. Frederick, 3d, student at Trinity College, Hartford, Conn., and David Alexander, student at St. Albans School here, j Funeral services will be held at 11 am. tomorrow at his home. 3501 Ordway street N.W.. and burial will be in Laurel Hill Cemetery, Phila delphia. Paul Edwards Named D. C. Head ofW. P. A. President Roosevelt today nomi nated Paul Edwards as Works Proj ects administrator for the District. Mr. Edwards has been serving as local administrator since September 15. under a recess appointment. Mr. Edwards was appointed Sep tember 1 to succeed Commissioner George E. Allen as permanent ad 1 ministrator of the local W. P. A. His immediate predecessor was George B. Parker of Mississippi, who served as acting administrator for several months. A native of Philadelphia, Mr. Ed wards has had many years’ experi ence as a relief executive. k^.L. '_—_m_._:_ I ORCHESTRA SEATS FOR THE FAMILY—A front-row scene at the opening of Congress as mem ber’s of President Roosevelt’s family listened to his annual message. At extreme left is Diana Hop kins, daughter of Secretary Hopkins, with Eleanor “Sistie” Dali and Curtis “Buzzie” Dali, grand children of the President. Frederic Delano, uncle of the Chief Executive, seems a bit weary as he holds “Buzzie.” The President’s wife appears thoughtful and his mother, Mrs. Sara Roosevelt, follows his message from a prepared copy. Mrs. Roosevelt pictured as she arrived at the Capitol accom panied by “Sistie” and Buzzie" Dali and Diana Hopkins. —A. 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