ESPONDING to a demand for a
clear statement of the policy of
the United States in the matter of
peace and disarmament, Norman H,
Davis, ambassador-at-
large, announced to
the disarmament con-
ference In Geneva
what seems to many
a revolutionary de.
parture from tradi-
tional American poll.
cies, Apparently, It
means that the United
States has abandoned
neutrality
2 rights and the free
N. H. Davis dom of the seas. Spe-
Mr. Davis his gov.
ernment never to interfere with inter-
national against a nation
that been satisfactorily iden-
tified an aggressor, and to par-
ticipate in “effective, automatic and
international supervision
designed to make certain that the na-
isolation,
cifically, pledged
action
has
as
continuous”
tions carry out their promises in dis-
armament,
“President Roosevelt's message”
sald, "is a clear indication of the fact
that the United States will exert its
full power and Influence and accept
its just share of responsil r to make
the results i definite,
t with the
case of a
Davis set forth the
states In
Mr
fcan policy these words:
“Further that, in
that the states, in «¢
mine that a
breach of th
international
measures against the violator, then, if
we concur in the judgment rendered
as to the responsible and guilty party,
we will refrain from action tend.
ing defeat collective effort
which these stat + thus make to
restore peace.”
Asserting that there must be real ac.
complishment in the way of disarma-
ment, or a reversion to a race in arm-
ing, Mr. Davis proposed drastic arms
reductions, and promised that the
United States would go as far In this
as the other states,
Great Britain, Germany and Italy
were highly pleased with Mr. Davis’
pronouncement, but France remained
issatisfied, both with the security of-
fered by the United States and with
the Davis proposals for armament re-
duction. The more the French get. the
more they demand, and their obstinacy
is exceedingly Irritating to the other
nations. Foreign Minister Paul-Bon-
cour told the conference that France
would not reduce her armaments un-
less a definite system of mutual as
sistance Is created, supplemented by
genuine supervision of armaments
The supervision, he sald. must espe.
cially cover armaments which are
manufactured in private factories
peace,
the
onierence,
event
deter
te has been guilty of a
e peace in violation of its
1 and
tions take
any
fo such
NVESTIGATION of the private bank-
ing firm of J. P. Morgan & Co.
greatest of its kind in America, was
started by the senate banking com-
mittee with J. Pier
pont Morgan, senior
partner, as chief wit.
ness. The proceedings
were conducted by
Ferdinand Pecora on
behalf of the com-
mittee and attracted
a throng of specta-
tors. John W. Davis,
former Democratic
Presidential candl-
date, was there as
counsel for Morgan,
and the banker was several times re
lHeved from nagging questions of Pe
cora by the protests of Senators Glass
and McAdoo. Most interesting to the
public of the facts brought out was
that no Income tax whatever was paid
by Morgan or any of his nineteen part.
ners for 1081 and 1032 and that they
pald an aggregate of only $48,000 In
1930. This was because of heavy
losses sustained by the firm. Morgan
could not recall whether he personal
ly paid any tax in 1930, but counsel
for the Investigators said he did not.
Morgan repeatedly answered *I do not
know” to Pecora’s queries about a
£21.000,000 loss written off his firm's
books on January 2, 1031, in addition
to other deductions which already had
wiped out taxable income,
Finally the banker asked Leonard
Keyes, office manager of the firm, to
explain the matter.
Keyes sald the Involved transsction
was the inevitable result of a revalu-
ation of assets made necessary by the
admission of a new partner, 8. Parker
Gilbert, on January 2, 1931,
Pecora hammered away with ques
tions, but Keyes, a methodical appear.
ing man who spoke crisply and with.
out hesitation, repeated his account
over and over. He testified that the
$21,000,000 loss could, as the law then
stood, have been deducted from the
firm's taxable income In 1081, 1982 or
1983. Three or four million dollars of
the £21,000000, he sald, was deducted
from profits in 1011—a year in which
the partners paid no tax—but none In
1902, when the firin “had loss enough.”
n
J. P. Morgan
On the second day the senators
heard about Morgan & Co.'s “preferred
list” of friends to whom the firm sold
Alleghany Corporation common for
$20 a share when the market price
was $35. In this list were many
well-known names, including’ Willlam
H. Woodin, now secretary of the
treasury; Charles Francis Adams,
later secretary of the navy; Senator
McAdoo, Newton D. Baker, John W.
Davis, Gen. John J, Pershing, John
J. Raskob, Silas H. Strawn and Col
Charles A. Lindbergh.
Another list revealed Included the
names of bank officers and directors |
to whom the Morgan firm had made
loans. Some of these loans had been |
repaid, but many had not, and in the |
latter category the largest was a lit-
tle over S20.000000 to Charles BE |
Mitchell, former president of the Na-
tional City bank of New York, whose |
trial for alleged Income tax evasion
was going on In New York eclty,
JUDGE
EDERAL
derback
ed In the
senate, but
margin. On the
prehensive
guilty and
der the
procedure a two-thirds vote is neces
HAROLD LOU-
of California was acquit-
impeachment trial In the
he escaped by a narrow
fifth and most com-
45 senators voted |
34 for acquittal, lut un
impeachment
charge
constitutional
sary for conviction.
¥ THE administration and its
porters In congress have their way,
pational reco
iding for regulation of
sup
JOE) (HX (XH) very
I indus
tries and construction
of public works,
will he
Increased and
gasoline and;
higher Income Imposts
on stock dividends,
as well as the con
tinuation for one year
all the nuisance
taxes levied In the
bill of 1032
That was the way it
was reported to the
by the ways
and means committee, and though the
Republicans and some others object
ed to these taxes and fought for a
sales tax, that Is the way it Is likely
to become law,
The sum of £220.000,000 annually
will be needed for interest and amor.
tization of the public works bond is
sue, and the committee decided this
should be raised by:
1. Increase of the normal income
tax rates from 4 to 6 per cent on the
first £4,000 of net income and from 8
to 10 per cent on all above $4000,
Is levy is estimated to ralse $46.
000,000 a year,
2. Extension of the new normal in.
come tax rates to dividends now sub
Ject only to surtaxes and taxation at
the source. Estimated to yield $53.
000,000 a year,
3. The addition of another three
fourths of a cent to the present 1 |
cent a gallon federal tax on gasoline. |
Estimated to bring In $02,000,000 an- |
nually,
These additional taxes, the report
sald, “are temporary In character and
may be eliminated by proclamation
by the President when operating rev-
enues exceed operating expenditures,
or when the repeal of the Eighteenth
amendment opens a new and ample
source of revenues to the govern-
ment.”
To administer the industry con-
trol features of the measure when It
becomes law, President Roosevelt has
selected Hugh 8. Johnson of Moline,
Ii, and he has been busy getting an
organization in shape so he ean go
to work promptly. He had a large
part In formulating the bill
A close associate of Bernard Ba-
ruch, Democratic leader and New
York financier, Johnson was a mem.
ber of the old war industries board.
He was also head of the first draft
board during the World war and since
then has had extensive experience in
manufacturing. He was born in Kan-
sas In 1882. He turned to the army
for a career and was graduated from
West Point in 1003. When he retired
In 1019 he was a brigidier general.
vast
financed by
income
faxes
of
revenue
Hugh 8,
Johnson
house
XPANSION of credit rather than
of currency has been started by
the government under the powers
given the President in the farm act
Secretary of the Treasury Woodin
announced that the federal reserve
banks had made an initial purchase
of $25,000,000 of government bonds
in the open market,
“That is the start of an Inflation.
ary step,” Woodin said. “It is being
done to Inject something into the
market. In other words, to keep
things moving along.”
Woodin sald additional purchases
would be “entirely dependent upon
conditions.” The new law authorizes
the reserve banks to buy up to $3.
000,000,000 of securities,
When the reserve banks buy bonds,
cash balances of member banks are
Increased by equal amounts. The ad
ministration hopes that the ba
with these additional funds on hand, |
will advance them to Industry”
HEN President Roosevelt asked
the nations of the world to agree
to a tariff truce pending the outcome
of the London economic conference,
the administration thought it would
not be in accord with good faith to
A88e88 now the processing taxes on
wheat, cotton and perhaps eorn and
hogs provided for in the farm relief
act. But Secretary of Agriculture Wal-
lace thought otherwise, and after a
conference with Secretary of {tate
Hull he was permitted to go ahead
with this undertaking. Probably there
will be protests from Europe and Can-
ada, and then the diplomats must get
busy.
Secretary Wallace and George N.
Peek, co-administrator of the farm re-
lef act, selected Guy C. Shepard of
Evanston as administrator in charge
of the packing house products under
the act. He will have general charge
of trade agreements between packers
and between producers and proces.
sors relative chiefly to hogs and thelr
products. Mr, Shepard was formerly
vice president of the Cudahy Packing
company.
To handle the
farm act CC. A.
Ga, was named.
Progressive Farmer-Ruralist,
cotton work under
Cobb of Atlanta,
joth he
istrator some time ago.
in favor of prohibition repeal In
dent wets, The vote was about twelve
throughout state, and In
New York city it was approximate
ly forty to one. The 150 delegates
elected to the convention all are
pledged to repeal, and they will meet
in Albany on June 27 to execute the
will of the people. The Empire state
will the sixth to ratify
amendment to the Consti-
the
thus become
the repeal
PRESIDENT ROOSEVELT asked
of congress the suspension of the
» governor of Hawall
al resident of the is
arly to se
if governor of Hawaii
and vision who
all citizens of the
Necessary
rience
ho will be absolutely
art decisions on mu
there may be a difference
bmg
as to whi
inion
“In making ms
froo
choice, I should like
to pick either from the Is
from the entire
best man for this
fo be
lands themselves
United
post.”
or
States the
EPORTS
by the fore
from China, confirmed
gn office in Tokyo, said
that an agreement for a Chinese Jap
Apese truce in the north China zone
Ead been reached and was about to be
The defenders of
Peiping already had withdruwn from
signed, Chinese
a few miles away. It was understood
that the required
troops to remain south of a line run
ning from the Great Wall north of
Peiping southeast to Lutal on the
iruce the Chinese
Peiping and Tientsin. Thus the Jap-
anese would establish the buffer zone
which they demand between China and
Manchukuo. The Chinese understood
this zone was to be administered by
Han Fuchu, governor of Shantung
province, and Hwang-fu, national gov-
ernment representative at Peiping.
Despite the reported truce there was
renewed fighting at the walled city of
way off,
ing to the
President Machado is
ing directed by Mal
Arsenio Oritz Ma.
chado’s chief military
strategist, and he is
pursuing the same
tactics with which he
terrorized Oriente pro-
vince in 1931. In San-
Major Oritz ta Clara and Cama
guey provinces he has been hanging
captured rebels to the trees along the
highways and in the towns, and It
was reported that he held as hostages
the family of Carlos Leyva, who led
a rebel raid on Taguasco, threatening
to kill them unless Leyva sur.
rendered with fifty followers. Then
Oritz returned to Sancti Spiritus, and
it was believed he wolild pursue the
same ruthless methods In that section.
ITH a stately parade down
Michigan avenue, speeches hy
Postmaster General Farley and others
and much picturesque ceremony, A
Century cf Progress, Chieago's
World's fair, was formally thrown
open to the public, and thousands of
men, women and children entered the
vast exposition area and marveled at
what had been accomplished. Ry
high pressure work the fair was al
ready virtually completed,
The most thrilling and dramatic
part of the proceedings came at
nightfall, when through a “hook-up”
of three astronomical observatories a
ray from the star Arcturus was
caught by telescopes, transmitted to
the exposition grounds and used to
put into operation the gorgeous light.
ing system of the falr. According to
the scientists, (he ray started from
Arcturus just forty years ago, at the
time the fair of 1808 opened.
The fact that Chleago has ereated
this exposition during the depression
is as Impressive as the fair itself,
# @ 1931, Western Newspaper Union.
ii
[TIT
Cu — hve
it
a
=
Washington.—The country has just
witnessed the move by President
Roosevelt to gather
People Trust to himself another
Roosevelt armful of authority
in his broad program
to put the nation's business back on
its feet. In the legislation to encour.
age national recovery and provide for
construction of public works as a
stimulant to the economic machinery,
the President asked for authority to
use In his discretion second In amount
only to that accorded him in the in.
flation provisions of the farm relief
program,
It might be assumed that the dele
gation of so much power to the Pres-
ident would create a distrust among
the people of the nation, and that
probably would be the result In any
country save our own. Here, however,
it appears that the great masses of
the people would rather have that
power vested In Mr. Roosevelt than
in the 05000dd representatives of
their own selection sit in the
two houses of congress. | find in my
rounds in Washington that the opinion
of observers Is virtually unanimous.
Their information comes largely from
“back " as the say,
and so everybody seems to believe the
President is of
things in this crisis than congress, ex.
who
home, politicians
more capable doing
cept congress. I might add
the
granted so much is because (ndivid
iy and ely it is
sgainst the wishes of
the imag
Presid
par.
enthetically reason congress has
collects
caught
forate
done
Although the legislation
as
Pres
for
time to
dent the sweeping
{
¥ 5 rR] oh
two years, his rights
merce
less
tury
industry to a certain extent
the system of licensing whi
t instance, all the long
Manding antitry
kicked out of the window,
Upon application of
ation that Is representative o ra
President
with
are abrogated,
#0 to speak.
the any
or group or business, the
empowered to
Eanes
for a code
petition
powered
arrange
Sas}
Spa
srning it
other word he
tion and Its in
of rules g
in
to
may
ford ull of
of profit. It
there is a fair return will
open and normal channels of trade
will begin to flow. That means ein
ployment, and employment means cre
ation of buying power. But the agree
ment must be within the of
reason or the President will gc
cept IL “
gay substance that
be set high enough to af
return
irse, If
prices
them a reasonable
igs obvious, of co
factories
bounds
not
» » .
There are only two restrictions to
the President's power In this direc
tion. Let me quote
Two them: The Presi
dent may agree
Restrictions
those codes of come
petition if he finds “(1) that such as
sociations or groups Impose no In
equitable restrictions on admission to
membership and sre truly represent.
ative of such trades or industries or
to
code or codes are not designed to pro
mote monopolies or to eliminate or
oppress small enterprises and will not
operate to discriminate ngainst them ™
It is the plain purpose of that pro
vision to see that such things as chain
stores do not swallow up the corner
grocery and that a great corporation
may not drive lesser ones out of busi
ness,
Thus, we see the government fos
tering a program that Is designed to
assure for business a living wage and
in providing that, it is the hope of the
President that there will be a living
wage for workers, too. To see that
his policies are carried out and that
the code Is observed, the President
has the right to revoke licenses which
he has given with his approval of the
competition agreements or codes.
But the program Is not all a bed
of roses for business. The President
may, as a condition of his approval
of the codes, “impose such conditions
{including requirements for the mak.
ing of reports and the keeping of ac
counts) for the protection of consum-
ers, competitors, employees and oth
ers” ns he may deem necessary in the
public interest. That provision is a
touchy spot. In effect, of course, the
President will take little part in ad:
ministration of the law. It will be
done by those to whom he has given
the administrative duty. And it nev.
er has been and probably never will
be that any group of government offi
clals see things the same way. Con
sequently, one hears many predictions
that commerce and industry will be
making reports in such detall and In
such numbers, and Investigations will
be going on to such an extent that
industry will be engaged In going over
its books In one way or another about
all of the time.
Further, it never has been popular
among American business men to have
all of the facts about thelr affairs dis
closed. It Is predicted now that this
r——
condition, developed highly by the fed-
eral trade commission, will be very
much worse and that one factory will
probably know aii about its competi-
tor, Including the so-called manufac
turing secrets. From these has come
the progress of modern manufacturing
and distribution.
- * *
The public works section of the bill
Is of a less Imaginative character.
Outright and
Hope toSpeed no exce ptions, it
Recovery
the expenditure
lars for public construction.
poses the expenditure of these funds
employment. The
of course, will
of making
rial for building to speed up.
construction
all of the
or selling
It ought
CRUse
business mate
Hines as well
some business,
a8 give the rallroads
It appears to be a gi-
gantic effort to iniivnse the
If It
in the cost,
gecord-
believes to be well under way.
succeeds, no one will questi
It holds out that hope
ing to the President
Mr,
program
anyway,
drafted the
did he
taxation
rest on the
He left
and thus
Roosevelt has
of nor
id
fer to congress the plan of
constrnstion
of
to raise funds for the ig
8 for financing the
the tax
bond
Work.
ue DOoOuUse OF
Harold ls
in the
1 king the tenth time In
the
blase
with
not ac
because
Even Washington is
quainted the procedure
it occurs so seldom, and the trial
the most extraordl
attracted by
urder case
tion
nary m
Of course, there
esses In the
ut there
to see the trial that
been taken Instantly
away.
- * »
Jecause the senate
so seldom, It might be worth while to
is. In
When Senate cedure
prescribes
the work to be done and how it shall
be performed. The house of repre
a federal official. The charge
inally is one of “high crimes and mis
demeanors” followed by a statement
impeach™ the individual named.
The next step
ment by the house itself. Thus, when
the maiter is placed before the house
like an Indictinent by a grand jury.
- * ®
On March 4, just a few hours be
Vice President Curtis, announcing the
arrival of a committee of the house.
Their arrival having been duly noted,
the Vice President inquired their mis
sion,
“Te present articles of impeachment
against Harold Louderback,” replied
Representative Sumners, of Texas, the
chief manager om the part of the
house,
“They will be received,” replied Mr.
Curtis, without emotion.
Then the senate sergeant at arms
arose In his place,
“Hear ye! Hear ye! Hear ye!”
cried the sergeant at arms. “All per
sons are commanded to keep silent on
pain of imprisonment while the house
of representatives Is exhibiting to the
senate of the United States articles
of impeachment aguinst Harold Lou
derback.”
And so the senate had been notified
formally and officially, and in due
course R organized itself Into a court
of trial,
The defendant is allowed legal coun
pel. Each side may call witnesses and
they testify under oath in the senate
chamber just as they would in court.
There 18 the direct examination and
cross examination, the house managers
acting at all times in the role of the
prosecution. When all of the evidence
is In the case then is left for decision
by the Jury of senators, iwo-thirds of
whom must vote for conviction or the
defendant is automatically acquitted
of the charges ~
©. 1938, Western Newspaper Union,
How IBrokelnto
The Movies
Copyright by Hal C, Herman
By BILLIE DOVE
MATEUR theatricals, physical eul-
ture and dancing were the ave
nues by which I reached the screen,
I wae born In New York, where 1
was educated. In one of the schools
I attended, physical culture was taught
religiously and 1 became
ficient, partly because 1 enjoyed the
exercises, From this it was an
step to dancing.
Then it was discovered that 1
“screened well” That means, in mo-
vie parlance, that one has a face that
registers favorably before the camera.
Not always is this the case and some
riot
BCI
5 ery pro
CUEyY
face will
gatisfactorily, It
to be something for which
real explanation, you
or you don't, I was
1 studied and took part ir
theatricals In my high school
It took
however, th
in the films. Ms
Constance
there i8 no
BCreen
ne just four
reach
nence
with
of the Follies.”
much of my
pleased to
Talmad
To Lois
success in atl
we term
My chances
of her films, “The
“The Marriage Cla
are
grentest
Sensatic
marvelous opp
played the feminine |
“The
Fairbanks In
contract with First Na
At first 1
stardom
this contract was }
Follies” Then came
Hour” and with
was starred.
“American De:
was featured
. 3
The initial
3
EET ER ERRE
Billie Dove.
Mart.” The latter is a
maurice production and a
New Orleans. More
cently I starred in “The Night Watch.”
and such
and “Her
oid re.
“A Airs
Adoration
Private Life”
What shall ] say to the thousands of
giris who seek a career in pictures?
Mast it be “Don’t?
I hate to say that, in a way, because
I hate to discourage ambition, and yet,
as 1 Jook back over even my brief
career, think of the innumerable dis
appointments, the difficult work, the
would be justified in advising any-
one to try it. Of course, I have been
treated with consideration by the pro-
ducers, directors and associate play-
ers. 1 have no complaints to offer in
that respect. It Is merely that the
work Is exacting and that the compe-
tition is very keen. All one's forti-
tude and courage are needed in the
long months and years that must pre-
cede any sort of success. And then,
of course, not many do succeed. 1
that down to any wonder.
ful talent or other qualification on my
The compensations are great. I am
very happy now. But 1 too, might
have failed and turned to other walks
of life disillucioned and discouraged.
It's a good deal a matter of Fate, I
expect. Anyway, 1 am grateful, ex-
ceedingly grateful, to all whe have
helped me on the road.
WNU Service
Unwise Investments Sent
John Halliday to Stage
Back in his younger days John Hal-
liday was a gold prospector and did
well at it. He joined the army of
gold hunters In the bleak Nevada des-
erte. That adventure brought him close
to a half-million, which he duly Jost
in the Sacramento stock market.
Stranded in that city, he joined Nat
Goodwin's repertory company and a
few years later played the lead in a
world tour with T. Daniel Frawley,
Back on Broadway, he played with
John Drew, In “The Circle” und later
appeared prominently In “The Whip,”
“Sour Grapes” “The Spider,” “Jeal
onsy” and other plays. Mr. Halliday
began his screen career with “Scar
let Pages™ and then appeared in “Cap
tain Applejack” and “Fifty Million
Frenchmen” He was placed under
contract to RRKO-Radio Pictures and
since then has been ween in. among
other pictures, “Smart Women.” “Con.
solation Marriage,” “Tranestlantie”
“The Ruling Voice.” “Men of Chance”
“Bird of Paradise” and “The Age of
Consent.”
|