El heraldo de Brownsville. [volume], April 18, 1935, Page TWO, Image 2

About El heraldo de Brownsville. [volume] (Brownsville, Tex.) 1934-19??

Image provided by: University of North Texas; Denton, TX

                
JAPS RECEIVE
NEW PROTEST
SENT BY U. S.
Manchoukuan Policy
On Oil Violation
Of ‘Open Door* It
American Claim
WASHINGTON. April lg —
fh* United States Thursday sent a
hot* to the Japanese government
reiterating lta protest against the
Manchoukuan oil monopoly as a
violation of existing treaty provi
aiona and in conflict with the "open
door** policy in the far east.
Undersecretary' Philhpa announc
ed that Ambassador Grew at Tokyo
had been instructed to inform the
Japanese foreign office that the
United States considered the Man
choukuo monopoly, which became
effective April 10, violated treaties
to which Japan and the United
States are signatories and also Ja
pan’s and Manchoukuo’s pledges
that "the open door” would permit
•qual opportunity in far eastern
trade to all nations.
The American reiteration of sev
•ral previous protests to Japan is
understood to have been based on
this government’s opposition to the
setting up of a monopoly In oil
which might be extended to other
products In the far east.
The United States protest—In the
Interest of American OH compan
ies doing business m Manchoukuo
—was sent to Japan as the sponsor
of the new empire of Manchoukuo,
which Is not recognised bv this
country.
The oil companies contend that
their large investments in Man
choukuo are imperilled by the new
monopoly law. and that tney would
lose the future profitable business
which had been built up over many
years in that .country before it be
came an independent state.
The Netherlands and Great Brit
ain made similar representations to
Japan in the interest of British and
Dutch oil companies.
Japan, in answer to all three
nations, said that since Manchou
kuo was an independent state the
representations should hare been
sent to that government, and that
Japan could not interfere.
The Japanese also explained that
since the United States did not
reoognire Manchoukuo it could
hardly expect that government to
observe any pledge of equality of
opportunity which might nave been
made.
In addition to representations by
the government. Interested repre
sentatives of American oil compan
ies have held s series of confer
ences with Japanese authorities in
an effort to formulate an amicable
solution of the problem It is under
stood, however, that the negotia
tions in Tokyo recently broke down.
First prise at a pastry and confec
tionery making exhibition at Luton.
Eng., was carried off by the Rev. C.
W J Harbndge vicar of St. Mat
thew’s church, who put the town's
women cooks to shame.
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OTHERS.7S« and up
Johnson Says NRA
Mistakes His Fault
And Not Due to Law
WASHINGTON, April 18.—<*V
Plainspoken as usual. Hugh 8
Johnson told the senate finance
committee Thursday the mistakes
of NRA were due to his adminis
tration and that to abandon it
would be “like burning down your
house to get rid of a few rats In
the attic.’*
He freely admitted mistakes and
errors in NRA. but as faults of ad
ministration and not of the law.
The Blue Eagle was set up. he said,
to stop the trend of concentration
of industrial power which was
wiping out the small man. .
’ No more explosive act of des
truction could be committed than
to kill it now and go back to the
utter futility of the system we had
here before 1933. • Johnson testi
fied.
The hard hitting former cavalry
officer warned that it was a ‘fal
lacy'* to contend the cold capital
istic system could not be improved
upon, and that "if we go back to
that fallacy, the capitalistic system
is on its way out in the very near
future.’’
His was the final testimony in
the senate's investigation into the
operations of NRA. prior to the
drafting of new legislation.
He presented the committee an
88-page statement of his views on
NRA and its future, together with
laborate charts to bear out his con
j tent ions
Most of his statement was writ
ten in a factful. dispassionate
vein, but occasionally he lapsed in
' to the vernacular, and picturesque,
language which made him famous
as the "crack-down' head of the
Blue Eagle organization.
The huge crowd assembled to
hear Johnson forced the finance
committee to use the largest as
sembly room in the senate office
building—the caucus room.
Reviewing the developments in
industry following the war. John
son said they disclosed ‘a slow
and implacable disintegration of
unregulated and uncontrolled oper
ation thereof, as a reliable plan
for keeping our people employed."
"When the structure smashed in
1929. he added, "it was not a sledge
hammer cracking up a solid brick
It was the collapse of an empty
shell.’’
wun this coliap.se. and the
downward spiral which followed
Johnson said, only five types of
concerns could survive. He named
them as “the concern with the big
war chest and a swollen surplus
“the natural monopoly." "the
dealers In indispensibles." "the
sweatshop.'* and “the ghoul—buy
er and operator of bankrupt stocks
and assets.'
“That is where our economic
system was trending from before
the war and to its utter and com
plete collapse in March, 1933,’* he
added. “This is what happened to
us under the anti-trust acts, the
federal trade commission, and the
doctrine of laissez faire and It
happened uninterruptedly and with
no relieving Incident for a period
of 35 years.
"I don’t know a great industrial
country that does not recognize the
necessity for taking control of this
tendency which is going on all over
the world.
“I freely admit the faults and
errors of the NRA and will fight
as hard as anybody to correct
them. But it was the first intelli
gent attempt ever made by this
government to check this tendency.
I wron’t admit its failure. Especially
I wont accede to any madness
that would remove Its control and
go back to the unregulated condi
tion of futilitv that nreceded it.”
Johnson added that “we have
got to keep control of this economic
machine and prevent and turn
back many of the tendencies of
the past 25 years.**
Conceding many mistakes in his
administration of NRA. Johnson
told the senators he was “inc' | ^d
to agree" with the criticism by
Senator Nye <R-Ind> that the re
covery administration was preserv
ing monopolies in the code struc
ture
“But T do contend, and I think
I can show, that such faults as
arose were due to my bad admin
istration rather than bad law. that
manv if not most of these errors
of mine are In process of effective
correction
“I am very suit* that to destroy
NR A because there are these
creakv Joints In Its structure would
be like burning down your house
to tret rid of a few rats In the at
tic ”
Summarizing the record of NRA,
Johnson said it had "succeeded In
arresting the destruction of the
little-fellow in business.” but he
admitted it had not “fully insured
the rights intended to be granted
to labor "
“Where has NRA failed as to the
small enterprise, labor and con
sumer?" Johnson asked
‘I think that to all it has
brought a vast balance of good. In
each it has brought some harm and
some of the harm Is avoidable.
The little fellow has suffered from
having to pay higher wages but
he has benefited by being preserv
ed To the extent that he has been
hurt by bad administration, we
must cure that.
•Tabor has been Immensely help
er Tt has been hurt by not get
ting the benefit intended by sec
tion 7 <A». We should cure that.
“The consumer has been helped
bv being given the power to con
sume at all. He was on the verge
of losing it.
“On the hole mv conclusion is
clean up NRA—don't destroy it.
Let us scrub our infant offspring
vigorously, but let us not throw
the baby down the drain pipe with
the dirty water.”
Defending the fair practice pro
visions of the codes against charges
that they created monopoly. John
son said something of this nature
was necessary to make it possible
for Industry to accept minimum
standards on wages and maximum
hours.
He contended fair trade practice
control could not be restricted to
the natural resource industries
Discussing whether NRA should
attempt regulation within a state.
Johnson said “we are faced by a
new condition that transcends any
legal theory.” NRA. he added,
"taught beyond question that John
Marshall was right when he said
In commerce we are one people’.”
The former administrator said h«
had no doubt the courts would up
hold the government In regulating
commerce within a state and that
“the only question is a practical
one; how far It should go in doing
so.”
”My answer to my own question
is that NRA should attempt intra
state regulation through codes
wherever it Is clearly necessary to
protect interstate commerce and
not otherwise, and that it is not so
necessary in service industries.”
Johnson said "price fixing under
NRA is just a big bugaboo." He
asserted only nine codes contained
any provisions for price fixing or
rate control.
Turning away from NRA proper.!
Johnson said "one of the most
valid criticisms against the whole
New Deal is the fact that from
time to time it has sorely lacked
coordination.”
"One agency* he added, “has
been vigorously pushing a policy in
one direction, while a coordinate
agency has just as vigorously been
pushing a conflicting policy in a
diametrically opposite direction"
Johnson contended that due to
lack of coordination in the admin
istration NRA was “in an impos
sible situation with regard to en
forcement" because the federal
trade commission and the justice
department did not vigorously en
force NRA's provisions.
Directors Of
Newspapers To
Chat With F. D.
WASHINGTON April 18 <JP>—
Men who direct newspapers assem
bled Thursday to discuss their
problems and current affairs In the
11th annual convention of the
American Society of Newspaper
Editors.
Their program for the three-day
meeting which ends with a ban
quet Saturday night embraced off
the-record interviews with Presi
dent Roosevelt and Donald Rich
berg. as well as open meetings
with other prominent speakers
Grove Patterson of the Toledo
Blade planned to open the conven
tion Thursday afternoon at the
National Press club with the an
nual president's address. Reports
by M. V. Atwood of the Gannett
Newspapers, the society's secretary,
and E. S. Beck, of the Chicago Tri
bune. treasurer, were to follow.
The editors and managing edit
ors representing leading dailies of
the United States also expected to
find much food for thought In a
discusisoti on "the conflict be
tween the important and the Inter
esting in newspaper.” by Wallace
Odell of Westchester Newspapers,
Inc., William Alien White of the
Emporia Gazette, and Tom Wallace
of the Louisville Times.
MORTGAGE BUI
GETS APPROVAL
Anti - Administration Act,
However, May Never Get
Vote In House
WASHINGTON. April 18. ^P—The
Frazier-Lemke farm mortgage re
financing bill—to which administra
tion leaders are opposed—was ap
proved without a record vote Thurs
day by the house agriculture com
mittee.
Whether it reaches a house vote
depends upon the attitude of t he rules
committee—which decides what
measures shall be debated—or upon
the possibility of obtaining unani
mous consent for consideration.
Committee approval also was giv
en a bill by Chairman Jones (D-Tex)
to establish what would amount to
a federal reserve bank for agricul
ture.
Intermediate credit banks would
be able to issue notes to lower the
cost of money lent to farmers by
eliminating the extra charge of
floating bond issues through which
the farm credit administration now
raises the funds.
The Frazier-Lemke bill provides
Tor government refinancing at low
interest and amortization rates
through a $3,000,000,000 note issue.
The government would take over a
farmers mortgage through machin
ery set up tn the farm credit admin
istration and permit the farmer to
carry his property by paying an
nually only one and one-half per cent
each on principal and Interest.
—
Roofing Industry To
Hear Code Authority
A thorough explanation of the
code and code enforcement for roof
ing and sheet, metal industries will
be made here next week by P E.
Johnson of San Antonio, assistant
code authority for Zone Ten.
The exact date of the meeting,
which will be held at the Browns
ville Chamber of Commerce build
ing. has not been announced
All parties interested in the roof
ing industry, including contractors,
lumber dealers and sheet metal shop
owners, are being urged to attend
the meeting
Notice of Johnson's proposed visit
was received here by J. O Walsh,
code supervisor for Cameron. Hl
1 dalgo. Willacy and Starr counties.
■ i . .. •
Jaycees of Harlingen
Move to New Office
< 8ncc'»l to The HeraM >
HARLINGEN. April 18— The
Junior Chamber of Commerce is
now located in its new quarters in
the Reese-Wil-Mond Hotel Bldg,
formerly occupied by the branch
county tax office and next door to
the Harlingen Chamber of Com
merce. Ray Byfield is secretary.
The Harlingen Chamber of Com
merce will move May 1 to the quar
ters now being occupied by the Val
ley Oil Exchange in the Madison
Hotel Bldg. The exchange will re
tain a part of these quarters fac’~*
on the arcade. The Junior Charr.
of Commerce formerly was located
ir the Madison Hotel next door to
Head’s Confectionery.
Texas Gets Third
Governor in Week;
Term to Be Short
AUSTIN. April 18. —iJP)—Texas
had her third governor tn a week
Thursday. He was Senator Ken
Regan of Pecos, president pro
tem of the senate.
Senator Regan succeeded to the
chief executiveship during the ab
sence from the state of Governor
James V. Allred, who was in Wash
ington, and Lieutenant-Governor
Walter F. Woodul. who was In
Oklahoma City.
Regan was 'inaugurated'’ in
formally at a breakfast attended
by most of the members of the
senate. Speaker Coke Stevenson of
the house of representatives, and
former Governors W. P. Hobby of
Houston and James E. Ferguson of
Austin.
“I never thought much of the
Thomas bill.” said Senator Clint
Small of Amarillo, one of the
speakers, “but It has brought west
Texas her first governor.**
Governor Allred went to Wash
ington to attend a hearing on the
bill, which would give the federal
government Increased authority to
I regulate the oil industry.
“It is to be regreted on behalf
of the people of TeAs that Mr.
i Regan's term will be so short.’’
said former Governor Hobby, "but
perhaps it is Just as well for him.**
Senator T J. Holbrook of Gal
vestoh suggested that Reagan re
sign and other senators be elected
at ten-minute Intervals as pres
ident pro-tem and resign thereby
giving each a shift as governor.
Others wished him a successful
administration.
His administration was to be a
short one. Woodul intended to re
turn to Texas within the day.
giving Regan a term of only a few
hours
in tne governors office. Regan's
I first official act was to sign a bill
of his colleague. Senator Claud
Westerfield of Dallas It would
place additional restrictions on the
ale of estates of minors by gaurd
| lans.
"I guess I am safe in signing It,”
he said, noting it was passed un
animously.
Exercising, he said. “^iat seems
to be one of the prerogatives of
an acting governor,'’ he appointed
eight lieutenant colonels on the
governors staff, sent a message to
! the legislature, granted an extradl
: non and began a study of several
clemency records.
Legislation he requested would
confer the power of eminent do
main on all state and federal
agencies and upon all corporations
to acquire lands necessary for
public works projects.
He planned to sign as acting
! lieutenant governor a house bill
to extend for two years the Rio
Grande Compact of Texas. Colo
rado and New Mexico, and later to
approve it as acting governor. He
was author of a similar senate bill.
Lieutenant oolonels appointed
were: Mark McGee of Port Worth,
former adjutant general: W. E
Bell of Peco6. oil man and Regan's
business partner: Dorrance D. Rod
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Weekday* 8 a. m. to 12 Noon
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rick, publisher, and H. S. Hunter,
editor of the Ei Paso Times; Tom
Lea. El Paso attorney; David
Frame. Houston oil man; J. V. Ad
ams. San Antonio and McCamey
oil man. and John R. Suman,
Houston oil man.
Senator Sworn In
AUSTIN. April 18. Claude M
Isbell of Rockwall Thursday was
sworn in as senator of the 10th dis
trict. succe '‘ing Wallace Huglisto"
I McKinney. '4WHHI
Senator nank Rawlings of Fort
Worth, acting president pro tempore
while Senator Ken M. Regan of Pe
cos was acting governor, administer
ed the oath.
^•"ato- Isbell was introduced by
Lannie Stinson. Rockwall countv
* lirge delegation of
Rockwall citizens attended the cere
mony.
‘MONEY GAME’
PAIR CONVICTED
Three Years Given Men In
Attempt to Work Racket
With Machine
Three-year penitentiary sentences
were assesed T. C. Moore of Austin
and H. C. Chamberlain of Harlin
gen Wednesday afternoon when a
Jury in criminal district court here
found them guilty of conspiring to
defraud Dan Heslop of Harlingen in
a confidence ‘money making ma
chine" game.
The Jury was out only a short time
Wednesday afternoon in returning
its verdict of guilty.
Heslop was the state's chief wit
ness, relating details of the defend
ants' efforts to have him furnish II.
000 to be run through a machine
which they said would raise the bill*
in denominations. They offered him
half of the profits, he stated
The Harlingen man said he was
approached by Chamberlain on the
proposition, and after several con
versa non* Chamberlain gave h»n“*
demonstration ol the "machine. 1 ne
demonstration, Heslop said, was
convincing when a $1 bill apparently
was converted to a bill of larger
denomination through the use oi
blotters and chemicals. Heslop un
mediately reported- the affair to
Chief of Police Anglin, and he can
ed in a secret service operative.
On the day when Reslop was to
have furnished the $1,000 to be nrn
through the machine, officers arrest
ed the defendants and seized the
bogus machine. They found no couat
terfeit money, the officers test
The arrests were made in December
of 1934.
The defendants, who had their
bonds forfeited cnce before, were
arrested early last week when they
failed to appear when the case was
called. Moore was returned here
from Austin and Chamberlain was
taken into custody here.
Heslop stated that the "money
making machine" was largely a mat
ter of slight -of-hand with good bill*
apparently planted in the appara
tus.
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