HEN the rallroad problem of the United States Is solved, it will be found that the solution Is govern- ment ownership and operation, in the ? genes Opinion of Joseph B. Eastman, federal co- ordinator of trans portation. The conclu- sion 1s set forth in his first report, made to the Interstate Com- merce commission and transmitted to Presi. dent Roosevelt, Vice President Garner and Speaker Rainey. Mr. Eastman says the so- J. B. Eastman lution he foresees would not be Inconsistent with our theory of government. Explaining that when governments acquire private property they normally pay more than it is worth, Mr. East- man reaches the conclusion that the remedy should not be applied to rail- roads now because the country is not “financially In a condition to stand the strain of an acquisition of these great properties.” The co-ordinator, having set up what he wishes to be the objective of future national railroad policy, then proceeds to make recommendations within the limits of existing laws. He is decidedly skeptical of the Prince plan for consolidation of the roads, for his assistant, Willlam B. Poland, has made studies that show the economies under this scheme would be less than one-third of the original estimates. Most significant of the recommenda- tions on consolidations is that pro- posals for compulsory consolidations should be given a trial, provided that the commission and the co-ordinator flud the proposed mergers to be in the public interest. Mr. Eastman throws the weight of his approval behind a method of compulsory consolidation through exchange of securities with- out the use of cash. Execution of such a method, which the co-ordinator's legal assistant, Leslie Craven, believes can be accomplished, would accelerate the merging of eastern raliroads into the four systems previously agreed upon, Mr. Eastman says that reorganiza- tion of railroads now bankrupt “should be effected as speedily as practicable, and In a manner which will result in & very material reduction in charges.” He calls attention to the fact that some of the most success ful reorganizations In railroad history took place In the midst of financial de- pressions. Wall Street theory has been that reorganizations should be postponed as long as possible, Many of the raliroads’ vital prob lems can be dealt with adequately by the carriers themselves, but “there is as yet Insufficient organization and leadership In the industry for effec tive co-operation In such undertak ings.” It is quite possible, Mr. East man believes, that a study of these problems “will pave the way to 8 much larger use of motor vehicles as an ad- Junct to raliroad service, and to a re vamping and simplification of freight-rate structure.” fixed (akLoS MENDIETA Is quite satis. factory to the United States as president of Cuba In view of the fact that he has the backing of a majority of the Cuban people and apparently Is ca- pable of restoring or- der in the island. So President Roosevelt informed the diplo- matic envoys of the other Latin-American countries whom he had summoned to the White House. The President virtually in- vited the other na- tions to take the same Carlos course but made ft Mendieta clear that his mind was made up any- way. Next day Jefferson Caffery, act ing for the United States government, went to the state department in Ha- vana and handed to Secretary of State Cosme de la Torrlente a document no- tifying the Cubans that the United States was ready to resume diplomatic relations, The Cubans went wild with Joy and the 21-gun salute from the American warship Wyoming In the harbor was answered by salutes from the foets, Mr, Caffery will be our ambassador to Cuba, and Manuel Marquez Sterling will be the Cuban ambassador to Washington. Recognition of the Mendieta regime eame from practically all other na- tions. President Roosevelt plans to do sev. eral favors to Cuba that should make Mendieta solid with his people. The warships in Cuban waters will be with drawn. The Platt amendment to the Cuban constitution, permitting the United States to Intervene in Cuban affairs to maintain law and order will be junked. And congress will he asked to give Cuba a big preferentinl reduce tion in the American sugar tariff, Sugar raising is the Island's chief Ine duarry and for five years i has been In n xevere sinmp. and the resulting de pression has eaused much of the po litienl disturbance, RESIDENT ROOSEVELT'S money bill went through the house with a rush, the vote being 800 to 40. Sixty- eight Republicans joined the obedient Democrats In supporting the measure. James R. Claiborne of Missouri and George B, Terrell of Texus were the only Democrats recorded in the neg- ative, The senate received the bill and re- ferred it to the banking and currency committee, which held a hearing that was lively while It lasted. Prof. George Warren, author of the dollar depreclation and gold purchase pro- gram, explained to the committee the theory of commodity price regulation by manipulation of the currency. Then, taking up consideration of the measure, the committee heard the vig- orous objections of Senators Glass, Gore and McAdoo to several features of the bill, notably the proposed seiz- ure of the federal reserve bank gold, and the granting of unlimited financial power to the secretary of the treasury. It was confidently predicted by the administration leaders that the bil} would be put through the senate un- changed, but stubborn fights over vari- ous proposed amendments were cer- tain. The vote on a plan to limit the use of the $2.000.000000 stabilization fund was expected to be close. Advo- cates of the remonetization of sliver, who are fairly numerous In the sen- ate, prepared a compromise silver plan to be offered as an amendment to the devaluation measure. [LANS of the American Legion to ask congress for more liberal treat. ment of veterans have stirred up a row in Washington, he Legion is gee Urging enactment of : a four-point program to cost £00000 a year, Frank T. Hines, administrator of the veterans’ bu- reau, thought this fig- ure was too low, esti- mating the cost at a considerably higher total, The Legion representatives de clared the government estimates erro- and by Infer- Hines of ul of integrity. Gen Gen. F. T, Hines were neous accused General terior motives and lack In a letter to Edward A. Hayes, com mander of the Legion, Hines de nounced the criticism of his estimates as wholly uncalled for and sald the Legion's own rehabilitation committee had admitted they were more nearly correct than its own estimates. Meanwhile the President had an- nounced new modifications of his ex- ecutive regulations concerning ments to disabled war veterans, the changes adding more than $21.000.000 annually, There were intlnations at the White House that Mr. would seek to persuade the Demo. crats in congress not to go beyond this liberalization, ence pay- Roosevelt RAFT and favoritism have been rife in the use of CWA funds, ac- the numerous complaints that have been received by President Roosevelt and Administrator Harry L. Hopkins, and audit of the books has been ordered In many localities, The unfortunate state of affairs was ad mitted by the President, who thus forestalled the revelation of the facts by congressional committees or le publican organizations. At the same time he made It plain that he was standing firmly behind Mr. Hopkins, the ousting of whom was tentatively planned by a group of house Demo crats, More than 4.000000 persons were given jobs by the CWA and Mr. Roose velt Is asking for an appropriation of £350,000,000 te earry on the work to May 1: but he Insists that the CWA organization be abandoned on that date according to his previous plan. Protests against this course, In eon gress and all over the econntry, have been numerous and loud. It 18 now considered likely that after May 1, continned employment for more than 2.000000 of the CWA workers will be found in seasonal employment, public works and a revival of Industry. Senators Nye and Borah. who have heen attacking the NRA on the ground that its codes fostered monopolies and tended to ruln small business eon cerns, won a concession from Admin {strator Johnson, The general agreed to the establishment of a hoard of ont standing citizens to which small man ufacturers and other husiness men ean bring thelr complaints of ruinons oper. ation of the codes, All the code authorities have been summoned to meet In Washington February, 15 to consider code re visions HAT recovery outings can he end: ed by June 30, 10305, Is the hellef of the P'resideni, and he gave expression to this when he announced his ap proval of the bill extending the life of the Reconstruction Finance enrpora tion for another year. lle enjoined desse Jones, chairman of the 8 FC not to withdraw more than Rasa, 000 from the tressary I the nese Aeent year, except with prior Presidential approval, * J) EVELOPMENTS in Japan Indicate that the military clique is losing out and that Foreign Minister Kok! Hirota will be able to earry out his plans to establish more friendly rela- tions with the United States, Gen. Sadao Araki, who had been minister of war since December, 1931, and who conducted the campaign against China, has resigned ostensibly because of ill health, and has ; been succeeded by ; Gen, Senjuro Haya- Koki Hirota shl. Last October Arak! declared in an Interview that “if people believe the foreign policy toward the United States will change, they are absolute ly wrong.” It was then predicted that there would be a split in the cabinet, and this appears to have come, with the less warlike ministers, led by Hirota, having the upper hand. Hirota told the diet at Its opening that Japan “fervently desires Ameri can friendship” and added that no question exists between Japan and the United States that is intrinsically difficult of solution. ENATOR HUEY P. LONG of Lou- “J islana sustained another severe was soundly beaten by T. Semmes Walms- ley, the in- cumbent and now one of Long's bitterest foes, There was A third candidate and Walmsley did not obtain a clear major- ity, but Klorer an nounced that he would not foree a run- His chief the drastic red elec resent T. Semmes Walmsley off primary, race was a tric rates in and as the present city administration has prom ised to bring this Klorer sald he would take it at its word, The for the nomination wis stormy with pros. pects of violence that did not develop when the day Walmsley and Long in thelr speeches denounced each issue In fon In New Orleans, shoot, campaign exceedingly came, other without reserve, and the mayor promised tr follow the senator to Washington, 1f necessary, and give him f good Having the fight at probably will abandon though he and his pledged them. selves Huey from public life. thrashing. won polis, he prodect, ave the this organization ! to “exterminate” Jonx H. McCOOEY, for almost a quarter of a century the big Tam many boss of Brooklyn, died of heart and probably means the end Tammany's domi nation of the party In New York, at least for a time. It was expected that a leader satisfactory to the supporters of President Roosevelt would be selected to succeed MceCooey, his demise of disease, Democratic Another once notable political leader passed away when Edward J. Brun dage of Chicago committed suicide, presumably because of financial tron. bles. Highly respected ns a lawyer and a man, he formerly was prominent in the Republican party in Ilinols and had been attorney general of the state, sua R DE PRIEST of Chicago, the only negro in injected the race question into house of representatives, to the of Speaker Rainey and the other Democratic leaders. Louis Morris, gocrotary to Mr. De Priest, and his son were refused service in the grill of the house restaurant, the manager Informing them that this was in accordance with his orders from Rep resentative Lindsay C Warren of North Car- olina, Democrat, chair. man of the committee on accounts CONEress, the great Oscar De Priest =, onl rl Rg Washington. ~The President's move, now sanctioned by congress, to pro- vide us with a dollar that has a purchas- ing power of not to exceed sixty cents by comparison with the dollar that has been our medium of circulation so long has caused about as much con. troversy In the National Capital as anything that has been done under the New Deal, Nor is there, at this time, any possibility of either side giving up in thelr arguments, for It must be sald frankly that there Is merit on either side of the proposition, Mr. Roosevelt has elected to adopt a course that means roughly the es. tablishment of prices for everything you sell at levels that approximate the range of 1026, At the same time, it means that roughly everything you buy will be proportionately higher than the prices that have obtained during the depression. Thus, it must become readily apparent that raw ma- teri: ex le, Means Higher Prices ils, such as farm commodities, for are going to return more to those who are the ply than they lately, Colncidently, source of that sup- have been recelvl everything And in between, we find the the so-called white-collar and residents of towns or cities, who will everything, and ble addition to The theory ths if Wen idual who sweat of his brow, the worker of the office lives by pay more for without any percept their income. 1 i larger re- the general cycle of bus In other that the Ness words, It Is thelr content! that unlock the door of a Progperous era, {in the one hears the insistent contentio will more act has been oo ho g the gained the value of gold. the restoration of ao ired Assuming by be price levels, say opponents of President's course, what will have been the tl gained for the farmer when t he has and who live In «¢ nes rice is to buy are increased in the buying power of the milli towns or villages And It cannot that after all the farmers’ mar ties, has Leon reduced denied ket true that weges neve is In those areas It Is equ: keep pace with » natural re force > r increasing prices and sult of this disparity the ities to cut down on thelr purchases, even if that entails reduction of the fond they buy. They cannot buy If they do not money. have es = What has happened to the dollar, by the President's action? The answer is, “nothing.” Fight Over f Money hat is correct if conglders only dollar paper currency. one the physical of silver or dollar in But the effect of the action is the bone of contention, and from read of this nation’s political history, anybody can be assured of a red-hot over proposals for tinker. our form money, Mr, done it. however, and ing with of before it was accomplished. For that reason, It appears certain, you will and maybe a few fist fights, over money questions through several elec To get back to the dollar again: The was exceedingly wroth and insisted on demanding a special investigation to determine by what anthority the com- mittee “controls and manages the con. duct of the house restaurant, and by what authority sald committee or any member thereof issued and enforced rules or Instructions wherehy any eit. fzen of the United States is discrimi. nated against on account of race, col- or, or creed.” ARI. VINSON. chairman of the house naval affairs committee, an- nounced that his committee was about the limits of the devaluization, or to say it another way, he asked congress that will let him proclaim a new dol lar value as measured in terms of gold, He told congress that the upper limit should be gixty cents and the lower limit should be fifty cents, The eld dollar was rated as worth 2067 grains of fine gold, The minimum, or fifty-cent dollar, would be worth just sixty-cent dollar would be proportion. 000.000 five-year ship construction pro gram; and Assistant Secretary of the Navy Henry L. Roosevelt gave’ out the full support of the administration behind legislation designed to bring the navy up to treaty strength. dollar or sixty-cent dollar are used here, they are for purposes of com. parison with the long-established dol- lar that was valued at 20067 grains of International trade. Whatever America does, however, does not alter that basis, and consequently the new Roosevelt dollar, assuming it stands recommended a fund of 170.000 for re storing the Great Lakes Naval station to its former status as the navy's ma jor Interior training post, URTHER information shout the enrthquake In India lends to the belief that it was the grestest disaster that country ever suffered. That the feos of life was appalling (= shown by the statement of the radah of Monghyr that the dead there alone numbered SANE, An engineer was quoted as tying declared after a survey that the names of hoth Monghvre and Mu waltnrpne might as well he ard from the nap, © mm Western New paper Unlon. Just half as much in foreign purchases as the former dollar was worth, Ro, as | stated above, there has been nothing happen to the physical eur rency. The revaluization has been manifest only In the effect. You ean change a dollar bill into two fifty-cent pieces, or four quarters, or ten dimes or twenty nickels or one hundred pen nies under the new scheme as well as before. But when you change that dol. lar into commodities, a palr of shoes, a shirt, a dress or a sult of clothes if it works out to Increase prices as Mr. Roosevelt contends—the result will be plainly apparent, It is apparent to most anyone that the fall force and effect of the Presi. fest for some time, Conditions have to adjust themselves. But the spon- sors of the pew arrangement for money have not been able to explain to me why the artificial boosting of prices may not lead to ultimate evils. I mean by that to Inquire why, If the prices are started upward, we may not expect to see them reach a level that is disproportionately high, a level that will have the same effect upon you and me, in our dally buying, that drained our resources during the World war, ® \d - The matters legislation affecting monetary which the President asked congress to enact in- Treasury cluded authority for Holds All Gold"'™ to take the gold that the Federal Re- serve banks have stored up. It amount ed to approximately £3,700,000,000, All of this gold now becomes the prop- erty of the treasury. That agency of the government, therefore, all of the gold for monetary purposes that there is ays | i 8 country. When the treasury has taken it over, it will in gol seriifica the t3 hat us But s irony of the thing is re mink sannot “eash™ those POBSesses & all 1Hiabe in ay the Federal Reserve banks ] vellow backs of y be In circulation, that the hold them, awaiting the pleasure of the redeemed at » treasury. treasury because reserve be allowed to use t} use be cortifios jssued of gold. simply had nl good gold uals or corpors The federal government a8 ev use two billions of the g reserve banks to es bilization fund” the the tres given authority to buy That British pounds or French or he buy dolla secretary of +l interna- 1 buy francs or dollar exchange, tional exchange, German marks ‘an sell exchange or Money from t be used, The purpose of this | a balance between the tion pays United unt paid by the U partici fore the ates to By 5 to be fm lar that method, no gold woul oniy mounts hands. Thus, It is new value of the dollar intained at what anu to an trading worth insofar as foreign nations concerned course, It is not actually the 1 that are concerned, but the busin nations that makes Interna- tional trade, causes the sale of wheat or cotton or corn or hogs and the pur chase of coffee, of sugar, of novelties oy ign transferred, or small would change the will be ma med, aunts even are “RE of those or the hundred and one other items, No one seems to know how much it cost to maintain the dollar on a basis as measured in interna. tional trade. When the President pro- vided for a twobillion-dollar stabiliza- tion fund, he apparently was guided by the size of the British fund which was created for exactly the same pur. pose, namely, protection of the British pound from being made a currency that nobody wanted. will ple Another phase of the monetary pro- gram upon which Mr. Roosevelt has launched seems to Credit warrant discussion, Control The new legislation has the effect, 1 am told by authorities, of giving the treas- ury the greatest power it has ever held in the matter of credit control It has taken over this power from the Federal Reserve system, which was created under the Democratic admin. istration of Woodrow Wilson, to pro- vide a fiexible eurrency for business, Its purpose was to make certain that more currency developed, the Federal Reserve banks could supply it. Wheth- er that purpose has heen destroyed, authorities {aform me It is too early to tell. But from all of the fear that is evident In some quarters, must be at least some threat of dan- ger, islation almost makes a central bank of the treasury. treasury will be able to tell the Fed eral Reserve banks, to some extent, how they shall run their affairs, how high or low their rates of discount shall be. Perhaps that does not seem far removed from life in a small town or in a city, but it is of direct conse quence to the little general store or the larger department store, or the hardware dealer or the druggist, or any other business, The discount rate more frequently than not determines the Interest rate which your loeal business man must pay for money he borrows. He must figure the Interest ne a part of his business cost, and add that to the price we pay for the things we buy. If I were to select one phase of the central bank Idea as being more objectionable than another, it Is that too much control is being concen. trated In Washington, Washington is permeated with polities, @ by Western Newepaper Uno, | Russians Easily Lead | World as Tea Drinkers | Of the three great national drinks {| of Russia, tea Is first in the affec- | tlons of the Russians, vodka second | and kvas third, Russians take thelr i tea viclously hot, in glasses. For | butter-fingered foreigners there are | tea glass holders of filigreed silver, | To make tea In the Russian style | you must get whole leaves—small, but not crushed—of the choicest quality. Pour boiling water Into your glass with your left hand as you sift in a few leaves from your right. As the leaves settle, fragrant amber trails arise. Let it strengthen to your taste, If you like sugar, take it tween your teeth tea as the peasants do—hold a lump be through it, The tea habit is grew because Russian water is bad-— needs boiling, The first time 1 on a Russian train and it al a way station, ali off and ran like off and ran like idea why, or in line at # There is one sizable and sip the everywhere: it was stopped no myself water, of every Russia. The passenge a variety to their seats to fies them for the rallrona nos hap phaz Collier's Weekly. How Acid Stomach Makes Itself Knewn to You Esser EEE C———————— HERE ARE THE SIGNS: Nervousness Frequent Headaches Neuralgia Feeling of Weakness Indigestion Slecplesaness Loss of Appetite Mouth Acidity Nausea Sour Stomach Auto-intoxication WHAT TO DO FOR IT: FNRI RARER EARN RNR RAR RR ARERR RRA RRR RENE R RRS Rens nnnnl hd an sseREERREsssEELe NEE a frrmresereenee the simp worry about it, npie This small directions given dosage of Phillips ¢ of Magnesia acts af once to neutralize the acids that cause headache, stomach pains and other dist . Try feel like a new person. But—be careful vou milk of magnesia when we genuine PHILLIPS' Milk nesia. See that the name LIPS'” is on the label, ALSO IN TABLET FORM Magnesia, : MEMBER N.RLA. Phillips’ Milk of Magnesia Bronchial Irritations Need Creosote For many years our best doctors have prescribed creosote in some form for coughs, colds and bron chitis, knowing how dangerous it is to let them hang on, Creomuision with creosote and six other highly important medie- inal elements, quickly and effective ly stops coughs and colds that otherwise might lead to serious trouble. Creomulsion Is powerful In the treatment of colds and coughs, yet it iz absolutely harmless and is pleasant and easy to take, Your own druggist guarantees Creomulsion by refunding your money if you are not relieved after taking Creomulsion as directed. Be ware the cough or cold that hangs on. Always keep Creomulsion on hand for instant use. (adv.) | Cuticura Talcum Gooling Retieshi Fragrant and refreshing oriental balsamic essential oils comprise the medication of Cutienra Tal- eum. Instantly upon touching the skin these oils start their i and cooling work and your skin is protected against irritation. Price 25¢ 4 Sample free. Address: * Cuticura”
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