President Approves
of the Advisory
iekarnd
Business at White House
J IETY members of the business
advisory council of the Depart-
ment of Commerce, all of them
leaders of the nation’s business and
industry, went to the White House
for a long conference with the
President, and told him what they
believed to be responsible for the
current ‘‘recession.” Then they
promised to co-operate with him in
combating the slump on condition
that he made clear the course he
intends to follow.
The business men specified that
necessities to aid in the struggle
were limitation to wage-hour legis-
lation, a truce with public utilities,
no general purge of holding com-
panies and no further tinkering with
the currency.
velt gave his approval.
heard by him without comment.
W. Averill, the council's chair-
man, issued a statement which em-
braced the views of his colleagues
and which was read to Mr. Roose-
velt. i
The statement said re-employ-
ment in private industry is the criti-
cal problem now before the country
and that uncertainties that exist in
“the hearts of men’’ must be eradi-
cated.
‘““We wish to record with you our
faith in the efficacy of the prin-
ciples of democracy, and yet our
grave concern over the possible far-
reaching effects of our present sit-
uation,” the statement concluded.
“Tolerance and understanding must
be used by all sections and interests
in the country.”
At the conclusion of the confer-
ence the President announced that
he will seek the formulation of a
definite policy, designed to end the
depression and create a framework
for steady functioning of the nation’s
economic life through the appoint-
ment of a group representative of
all the interests within the country.
The group would consist of as
many as twenty-five or as few as
five or six persons, who would be
charged with the task of sifting
over all proposals to aid business
and unsnarling all conflicts existing
among the various interests with a
view toward perfecting an adminis-
trative and legislative policy for
business.
He
Huge Loss Laid to C.1.O.
ff ROM the lips of Mayor J. K.
Carson of Portland, Ore., the sen-
ate’s joint committee on commerce
and labor learned that the activities
of the C. 1. O. and
Harry Bridges, its
leader in that re-
gion, have cost the
people there more
than a billion dol-
lars in the last three
years. This was due
to strikes and mari-
time tieups.
“Bridges cannot
even vote in this .
country,” said May-
or Carson, “yet he Harry Bridges
exercises more power over the
maritime industry of the Pacific
coast than all the ship owners and
all the seamen combined.”
Bridges, who came from Austra-
lia, is not naturalized. He is a Com-
munist and his deportation has been
requested by the inspectors of the
bureau of immigration and natural-
ization, but issuance of a war-
rant has been prevented by Secre-
tary of Labor Frances Perkins.
Mayor Carson said the shipping
and fruit industries of the West
Coast had suffered not only because
of maritime strikes but also because
of tie-ups caused by the
men’s unions, which are controlled
by Bridges.
“The fruit industry is endangered
by the present attitude of maritime
labor,” Mayor Carson said. ‘The
continued disruption of deliveries
has resulted in a lack of confidence
in our ability to fulfill orders, caus-
ing us to lose our European mar-
kets to Argentina and South Africa.”
—
Choice of Reed Liked
N OMINATION of Stanley Formen
Reed of Kentucky, solicitor
general, as associate justice of the
Supreme court met with general ap-
proval and it was
predicted in Wash-
ington that he would
be speedily con-
firmed by the sen-
ate with little or no
opposition.
Republicans and
Democrats alike
were quick to praise
the Kentuckian,
who, while a de-
. fender of many New
Stanley F. neal measures, has
Reed acquired a renuta-
tion for being realistic and a liberal
with “moderate’’ tendencies,
Senator Ashurst, chairman of the
judiciary committee, named a sub-
committee which approved the nom-
ination after a public hearing.
Mr. Reed, who will fill the va-
a d
fore been on the bench.
Herbert Hoover,
federal farm board. Later he was
shifted to the same capacity in the
Reconstruction Finance corporation.
He retained his post at the outset
of the present administration.
Then President Roosevelt picked
him for solicitor general to defend
the New Deal cases before the Su-
preme court. Of these he won 11
and lost 2.
a
Stalin Checks the Purge
N°? a single bit of legislative
work was accomplished by the
first session of the new parliament
in Soviet Russia. But there was a
lot of speech making, and external
enemies, especially Japan, were de-
nounced and defied.
Dictator Josef Stalin, through the
central committee, ordered an end
to the mass expulsion of Communist
party members, which has usually
been followed by death, banishment
or loss of jobs.
Pravda, the Communist party
newspaper, indicated satisfaction
with the results of the purge, but
assailed ‘‘rotten leaders” who
played into the enemy's hands. “Un.
der the mask of false vigilance
agents of Fascism sought to break
up and oust from the ranks our
bolshevist personnel,” Pravda said.
ae
Egypt's King Weds
Jf AROUK, king of Egypt, was mar-
ried in Cairo to Miss Farida Zul-
fikar as 100 cannon boomed a salute.
The city was thronged with natives,
but they had no glimpse of the
bride, because the Moslem clergy
were in control and would not per-
mit her even to be present at the
ceremony. They did, however, con-
sent to a semi-public reception aft-
erward in the Abdine palace at
which the seventeen-year-old queen
made an appearance.
re
Tragedy in Canada
FIRE that destroyed the college of
the Sacred Heart at St. Hy-
acinthe, not far from Quebec, result-
ed in the death of at least 47 per-
sons and the injury of many others.
The victims included members of
the teaching staff as well as stu-
dents.
Fourteen drums of gasoline
housed in the four-story structure
contributed to the speed with which
the fire roared through the building.
Security Fund Shy
{ XPENDITURES under the social
security and railroad retire-
ment acts were $294,681,344 more up
to January 1, 1938, than was re-
ceived by the treasury from taxes
imposed to finance these programs.
The treasury said this condition
would not hold permanently, and
that the social security taxes were
being used primarily to build up a
reserve for old age pensions which
began operating the first of the
year,
A great portion of the expendi-
tures was used in grants to states
to set up social security machin-
ery.
—on
Kidnaped Ross Was Slain
CORE another for J. Edgar
Hoover and his “G-men’’. They
have solved the mysterious case of
the kidnaping of Charles Ross, elder-
ly retired manufacturer, in Chicago
last September, arrested the kidnap-
er and obtained his confession that
he killed both Ross and his own con-
federate after getting $50,000 ran-
som money from Mrs. Ross.
The murderer, Peter Anders, was
taken at Santa Anita race track,
near Los Angeles, where he had
been passing some of the ransom
money through the pari mutuel ma-
chines. Full details of his confession
were not at once made public.
aon
Every Tenth Worker Idle
QTATISTICS released by Secretary
of Labor Perkins showed that ev-
ery tenth worker in the country is
without employment. Her findings
were disclosed as the senate unem-
ployment and relief committee
called state and local relief admin-
istrators to testify on increased de-
mands for aid during the recession.
Approximately 1,162,000 persons
filed unemployment compensation
claims for benefits during the first
week of January when 21 states
and the District of Columbia began
this new plan, the secretary report-
ed.
*.
Mexican High Tariff
| the purpose of “leveling the
balance on international pay-
ments,”” Mexico has just put into
effect virtually prohibitive tariff
rates on items considered to be lux-
uries.
No details regarding the amounts
and nature of the new rates were
revealed, but the finance depart-
ment indicated that Mexico desired
to abolish the importation of almost
everything except machinery.
The new rates will chiefly affect
United States exporters, who al
ready have complained of recent in
creases in Mexico's tariff schedule
Secretary of State Hull has sai
that the increases were contrary t«
the plan of removing trade barrier:
as advocated at the inter-American
peace conference at Buenos Aires
in 19386,
wren
Chautemps in Again
RANCE'S latest governmental
crisis ended with the return of
Camille Chautemps to the post of
premier. He and his Popular Front
cabinet had re-
signed because of
financial and labor
troubles, Several old
timers tried in vain
to form a new gov-
ernment and Chau-
temps was again
called on for the
job. His new cabinet
-
Camille was believed it
would not need the
Chautemps ,,00rt of the com-
munists. Eighteen of the twenty
ministers were Radical-Socialists,
Chautemps was drawing up plans
for extensive social reforms.
Continuation of France's
armament program seemed
vast
Edouard Deladier retaining
posts in the new cabinet.
eRe
More Woe for Jews
UMANIA’S government, headed
so anti-Semitic that thousands of
Jews are seeking means of escape
tralia.
sible the intermarriage of Jews and
gentiles.
All alien Jews not engaged in
farming were given 30 days in which
to quit Ecuador, under a decree by
the provisional military government
of Col. Alberto Eriquez., Hundreds
of Jews permitted to colonize in
Ecuador to escape persecution in
Central Europe entered business in-
stead of agriculture, as the govern-
ment had expected them to do, the
decree said.
wf
Tax Changes Planned
(CHAIRMAN DOUGHTON and his
house ways and means commit-
tee began hearings on proposals for
63 changes in the revenue laws
which would exempt small corpora-
tions, constituting 80 per cent of
Ametican business, uncler the ni
profits ant e
only part oF
ji
ts.
| NATIONAL PRESS BLDG
i
Washington.—Many times, I have
confused state of
affairs in the fed-
eral government
and the Roosevelt
1 wish I were pos-
sessed of sufficient wisdom to un-
dertake an analysis of them, as they
exist now, for it probably would be
But having no such
vast wisdom, I shall have to con-
tent myself with the service of re-
porting on several circumstances of
recent development and let it go at
that.
For several weeks now, we have
witnessed a steady stream of call-
There have
“Big Shots”
Consulted
the list of callers whom the Presi-
American industrialists, the *“‘eco-
nomic royalists’’ whom Mr. Roose-
time to time, or whenever it served
political purposes to attack them
publicly. The purposes of having
announced at the White House, were
to consult and try to find ways and
pression.
As 1 said, these White House vis-
itors were the very ‘‘economic roy-
alists’’ whom Mr. Roosevelt has at-
tacked with such apparent satisfac-
tion throughout the last five years.
Indeed, among their number were
some of the “sixty families”
rior department, and
Jackson, trust busting assistant at-
torney general, Have
abuse as the folks who “control”
America. Anyone who will take the
trouble to review the President's
speeches and the more recent bar-
rage of attacks by Messrs. Ickes
and Jackson cannot help wondering
‘
crush the “‘common pee-pul,” as
charged, why their advice can be
any good now.
Nextly, it is hard to understand
why or how anything is to be gained
by consulting with men of that type
in a serious effort to solve the prob-
lems of the current depression and
set off dynamite under them at the
same time. That is what happened.
Mr. Roosevelt announced with ve-
hemence at a press interview that
all holding companies “must go.”
They must be eliminated from
American economic life
once; there can be no toleration of
corporations that are organized to
hold the stock of other corporations,
etc., etc. He has taken a definite
position on that before as regards
power companies and drove a bill
through congress to eliminate them.
This time, he wants to go much
further.
his policy.
thing.
But here is the peculiar
men in conference who represented
the very thing he was denouncing
and was seeking their advice. It
On top of these conferences that
have brought scores of prominent
industrial captains to Washington at
the President's invitation, there is
to be noted an entire absence of any
administration action looking to re-
lease of business to do its part in
President's views. Their position is
that the President wants to take the
lead in mapping a program and
him carry it out. They feel also
of a program of their own makes
them subject to White House criti-
cism if the legislation fails to meet
So they
simply wait!
In the meantime, the depression
has sunk deeper and deeper. 1
frankly believe that in some locali-
thing we saw in 1932. Business men
the danger that they will lose every-
thing they have, and individuals are
frightened and will not spend more
money than is absolutely necessary.
In other words, there is again a
lack of confidence that is appalling.
It seems to center on Mr. Roose-
velt as it centered on Mr. Hoover
in 1930 and 1931.
I can judge the whole situation
only by attempting to compose the
observations that I gather from
countless conversations. If this con-
sensus be accurate, then it would
appear that current fears result
from an inability of anyone to know
what Mr. Roosevelt will do next.
That is to say, the expressions
stressed statements that his poli-
cies “lack continuity; that he
changes “overnight;’’ that he “at-
tacks business with one hand and
kicks it in the pants with one foot
and asks it to take the load off of
the government at the same time;"”
having a flock of government spies
ND
’
on our trails,” and so on. I could
supply fifty more from my notes,
but they would be of the same ten-
or. And mind you! a large per-
centage of these came from repre-
sentatives and senators in congress,
Democrats and Republicans alike.
. * .
Another phase of the general situ-
ation:
There
drive against monopoly.
lead
has been a tremendous
This was
Drive on
Monopoly
General Jackson,
ball.
eral. There
tion between good business and bad
business.
tied up in business is wondering
fend himself in some way,
ever careful he
complying with the federal laws.
The fact was called to my atten-
tion also that many of the busi-
doing just what
forced them to do. The unlamented
NRA can be recalled without ef-
fort. Under the NRA, every unit
what to do and how to do it. Codes
of business practice were laid down
for them, bearing the approval of
Since NRA was rele-
gated to the ashcan, we find a dozen
suits being prosecuted against busi-
for continuing to do the
NRA was the law of the land.
Then, I would like to ask what is
wrong that real trusts are not being
broken up. The Department of Jus-
tice has some able lawyers who
have been assisting Attorney Gen-
of the New Deal. It appears to a
layman like me that five years ought
to be ample time in which to make
am moved to ask,
this new outburst
monopolies. 1
therefore, can
tics?
* * *
But the turning of the New Deal
wheel has brought one magnificent
. appointment to
Praise the Supreme court
for Reed of the United
States. I refer to
the nomination of Stanley Reed to
succeed the retiring Justice Suther-
land. Mr. Reed has been solicitor
general of the United States and as
such has directed the nation's legal
affairs under Attorney
Cummings.
finance corporation,
torious. There has been nothing but
acter,
lawyer and fine personality.
tice Sutherland's
court.
appointment of two men.
political career,
type of man named by the Presi-
dent. Mr. Reed is progressive in
thought. The New Dealers always
have counted him as one of their
number, but I find many people who
contend that Stanley Reed believes
first in the law of the land and in
obeying it, rather than indulge in
wishful thinking on a lot of silly,
untried schemes. The country is for-
tunate, indeed, to have a man like
Mr. Reed on the court.
And, continuing the theme of un-
usual circumstances, I think refer-
ence ought to be
Take a
made to the ter-
B tt
rific beating that
is being handed
the southern Democratic members
of the senate. They have been mak-
ing a brave fight against passage of
a piece of utterly assinine legisla-
tion—the so-called anti-lynching bill.
Men like Harrison of Mississippi,
Byrnes of South Carolina, Connally
of Texas, and others, have been
holding the fort against this vicious
legislation. They ought to win, but
they probably won't.
I have seen something of the race
problem in the South, and I can un-
derstand what the basis of south-
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