The Daily Worker Newspaper, February 10, 1927, Page 2

Parvived today ‘of these companies, together with a ‘Page Two THE DATLY WORKER, NEW YORK, THURSDAY, FEBRUARY 10, 1927 CRISIS THREATENS BUSINESS OF CAPITALIZING TENANT'S DOCILITY Renters Can’t Afford Much Longer to Meet Standard Demanded by Optimistic * Building (By ART SHIELD: Not the high cost of building tra realty financing are responsible for Letroit and other cit The specul Building trad bond se: houses, dened with exorbitant interest ¢ cess of the costs of constructi ¥ 3 but the rente is beginning to turn morigage concerns are threatened wi workers and rent pa idal that is breaking in New suburban residences and other ges ona Appraisers Federated Press) in New Yi lain of the piece, + following the realty t proves that apartment nilding projects are bur- the ato’ hon he renter has been the goat up to now and some of the big realty bond and. ith bankruptey. Makes Big Money | smug, self-satisfied gentleman is R. 8S. Reynolds, president of the U. S. Foil Co. A lucky turn in the market doubled his fortune. Steck gamblers never lose, if they are big énough to control the game. Little ones always lose, sooner or later. NEWS IN BRIEF Five liners — the trans-Atlantic Olympic, the Hanmburg, the Bremen, and the Cameronia— from one to three days late. due to a severe storm which has been raging in the North Atlantic. Seek Gaz Law In Delaware. DOVER, Del., Feb. 9.—The Dela- ware legislature received an anti- evolution bill in its yesterday's ses- gon, which would prohibit the teach- ing “that mankind either descended or the Aarania aseended from a lower order of animal”. Strong pressure is brought by the liberals and progressives to defeat this Federal Reserve Extension. TON (FP) Exténsion from 1984 of the charter i Reserve Banks is the grand prize eor ned in the confer- ence draft of the M den branch banking bill, w Il be adopted] in the senate and signed by the pr dent as soon as idge he the M legislation. ary Form 50 Million Typewriter Merger. Directors of the Remington Type- writer company approved the terms of corsolidation with Rand-Kardex Bureau, Inc., and the Dalton Adding Machine company. The consolidation number of unidentified companies, will wr |and the danger o: inactive Committee. Admitting the danger, the leading bond and mortgage houses last No- | vember appointed a committee, head- jed by Franklin D, Rosevelt, head of | the American Construction Council, to draw up a plan for sener financing. But the committee, afier three mths, has just adjourned, without ommending any effective action a business crash to the bond and mortgage holders per- ists. In the following paragraphs a leading bond and mortgage authority summarizes the. issue for the Fed-| erated Press. For business reasons at his request his name is deleted: Protect Speculators. “The Roosevelt committeo is avoid- ing an.encounter with the speculator: who keep building costs at an exor tant figure, maintain high rents and! furnish open shoppers with an excuse! for cutting the wages ef building, craftsmen. ‘ “The committee -has adjourned without agreeing on any drastic re-' fori after six of the largest bond houses signed a stabilizing agreement that vaguely outlines unethical prac-| tices, refers to sound appvaisals,| maintaining liquid assets and other matters of internal routine of bond house operation. The real question! of putting a stop to overloaning on the basis of watered appraisals was turned over to a sub-committee which may bring in some proposals later. Crisis Near. “Alarms at the dangers in this wild apartment house and hotel speculation is being voiced by such financiers as Walter Stabler, comptroller of Metro- politan Life Insurance Co., and S. W.; Strauss, head of the nationally known | bond house of that name, But other authorities in the building industry are pointing out that speculation is nothin, It is merely pyramiding to a cr now. Much of the build- ing boom of the last five years has been due to speculative operations just as unsound as those now being; inveighed against, Use Others’ Money. “It has been common practice for speculators to erect million dollar projects without putting in any capi- al of their own, The story of how the speculators’ procedure involves | the real estate bond houses and pro vides overnight riches to successful promoters at the expense of rent pay- is a story of a get-rich-quick sys- using the billions of dollars which | have been provided by small investors | in real estate bonds. | “The methods of the typical specu- | lator, it is said, consists of getting | control by option or purchase, of a plot of ground. An architect ployed to draw plans for a building | to put on it. An appraiser is hired | si to set a valuation on the building, net | Subserihe for The DAILY WORKER, ! na basis of actual cost but on a basi« af the amount of rent that can be souged out of the renters when the building actually is erected. The ap- praiser’s job depends on making the appraisal as high es possible and this scessively high appraisal is used in egotiating a loan from a real estate bond house. The bond house that agrees to advance the largest amount ot money on the project is given the | commission fer *loating the loan and} ollecting the savings of the buyers} itious valuation, far in ex- | Army Doctors Profit In Hospital Graft ~ Thru Permit Blanks CHICAGO, Feb, 9.—Nineteen of the thirty-one staff doctors of the United States army speedway hos- pital in Maywood are under inves- tigation in connection with alleged wholesale traffic in liquor prescrip- tions. . They are to be questioned con- cerning the alleged sale of thon- sands of prescription blanks to bootlegging druggists at $3 each, the article states. Each physician, it is charged, disposed of his entire quota, 100 blanks each quarter, in this way, adding $1,200 a year to his income. | New Sigman Plot Seen In Figewitz’s “Story” To Judge O. Rosalsky Joseph Figew who was sen- tenced on Jan. 28 last by Judge Rosalsky in general sessions to an in- determinate term at Sing Sing was brought back to New York Tuesday and appeared again before Judge Rosalsky, According to unverified reports he ne judge that he “was willing and ready to tell the grand jury the truth to the identity of officials who had instigated assaults against men opposing the union and who had selected him and others to commit | them,” After these statements, Judge Rosalsky ordered that Figewitz be kept in the Tombs until he could tell his story to the grand jury. Assistant District Attorney O’Brien disclosed yesterday that within the last few days the grand jury has filed indictments against two mem- hers of the union. One man had already been arrested, uring the strike but was released for lack of evidence. According to the leaders of the joint board of the International Gar- ment Workers’ Union and other well informed people, Figewitz is now being used -by Sigman and his clique |as a new method of attack against! the left wing in the needle trades. Unable to win the support’ of the membership, they are now trying to terrorize the left wing followers. Anti-Evelution Bill Defeated. JEFFERSON CITY, Mo., Feb. 9.— The anti-evolution bill, prohibiting the of the state was killed today in the house of representatives by a vote of 82 to 62. The vote was taken after | two and one half hours. John L, Lewis Getting Fat on Miners’ Money John L. Lewis, in- ternational president of the United Mine Workers'of America, develops quite a bit of avoirdupois, and his face and chin is doubling up. How- ever, his machine in the miners’ cenven- tion, recently ended, voted him an in- crease of salary from | $8,000 to $12,000. : { Accused of Graft U. H. Moore, aboye, of Cooper, Texas, a representative in the Texas) state legislature is on trial with Rep-| resentative F. A, Dale, before a com-| mittee of the legislature. Willis Cham- | berlain of Houston, lobbyi Texas Optometry Associati they took a thousand dollars apiece to | | fight Moore’s own bill to tax resident optometrists $50 annually. McNary-Haugen Bill — Supporters Confident. (Continued from Page One) | American farmer, is indicated in the, | speech which Assistant Secretary of | Agriculture Dunlap made on Feb, 8} before the Farmers’ Grain Dealers’ | Association of Ilinois, at Jacksonville, when he declared that never before had farming been placed at so great a disadvantage in comparison with in-| dustry, commerce and labor. | “Now agriculture alone is suffer- | ing,” Dunlap asserted, “and these | | others are enjoying the greatest pros- | \perity ever known, Instead of the | |farmers’ purchasing power inereasing | lin 1926, as we had hoped it would, | jwe find that at the élose of the year | it was below the average of 1923,) | toe and 1925. The total value of} crops in 1926 was over a billion dol- | jiars less than that of 1925, and a bil- | Hon and a half less than in 1924.” , Dunlap declared that cooperation | among the farmers in marketing their iteaching of evolution in the» schools| Products had been the most beneficial | measure yet tried for improving the | condition of their industry. Pinchot Accuses Mellon, |the bill had been debated for over; Gifford Pinchot, recently removed | | to the capital, has issued the first of | | several statementa he sfiys he has to! }inake on the “relief bill.” He praises | it as a “step in the right direction,” jand warns against last minute at-| tacks upon it by Andy Mellon, secre-| tary of the treasury. Pinchot says: | “TRe MeNary-Haugen bill of last | year wes killed by a letter of June 14, 1926, from Andrew Meilon, secre-| tary of the treasury, whose industries are protected and whose prosperity | }is generally understood to be fairly | good. There is every reason to be- | Neve he will try to kill it this year, |Ggden Mills, a member of the House jof Representatives from New York, vecently resigned and was appointed) first assistant to Mr. Mellon. Now} he has withdrawn his resignation in order to lead the fight in the house! against this bill, Which is notice to all concerned.” WRIGLEY SPENDS MILLIONS PSYCHOLOGIZING WORKERS TO CHEW HIS GUM; OTHER MILLIONS OF PROF!T GO TO STOCKHOLDERS; ALL WASTE. By LELAND OLDS (Federated Press.) Have your baby boy chew gum and develop that 100 per cent American | jaw. This is the latest pseudo-educati: on which is helping to extract millions | ‘of doliars from American workers to swell the profits of William Wrigley, | Jv, chewing gum king. Wrigley’s profits for 1926 amounted to $9,100,170, | “The joke on the rent payer lies | giving him a return of at least 98 per cent on his investment in the company, | create a $50,000,000 organization for] real estate bonds. the production of typewriters, adding Tenants Pay Bills machines and business systems of various kinds. in the fact that the amount of the| ABook for thelrish Worker > “Jim Connolly and the Irish Rising of 1916” Introduction by T, J. O'Flaherty. By G, Schuller. PRICE 10 CENTS. Connolly military tthe i rebellion reland wih ut when the British empire Vaselng thru ous of the most serious « a faced it during the nolly, ir ned his staal Cennvlls lutioniats ment te t nationallst on struggle workers’ || imperialiam, He i » full sense of is little pamphlet by the first serious at Connolly his rightful revolutionary history —} of this period, It was first pub- 9) Vehed as an article In the official vrgan of the Communist. Intorna- tional. It should be distributed in r uantities, among the apkers in the United Sta nolly is a magic nam Irish worker who has a» divine fire of revolt. in t can also be read with interest y every radical worker who wants to eonk up on the strates und tactioe of revolution, — ¢ Schuler declares that Connolly a Pe sinist. He was. He fell b British squad in 1916, one year batore the Russian tvorkers and ants buried tlie Caar and Caar- n and began to build a Soviet sic on the ruins, | n the, Was # Bols: the tern, G. Schuler tempt to giv place in the loan secured by the speenlator is of- | ton greater than the actual cost of | 000 on common stock carried on his ™a2 and child in‘the entire popula- the land andsthe building. In effect | the control of a speculative structure, | ‘ogether with an equity that usually | amounts, to a third interest in the) building, is gotten by the speculator | without ony risk to himself; all be- | cause of the doejlity of the future enents who can be cotnted upon to) come across with the amount of ren’ that is determined upon by the ap- praiser, | “What financiers are really afraid | of, it is claimed, is that the supply | é£ docile rent payers will not prove equal to the amount of space provided |for oceupaney. Once moré buildings | dollars, eer n there are tenants j it nba ypc the bibEalsale | sticks of gum by the billion. To the, illing to pay the rate, the will become worthless sefaps of pa- | per, it is feared, and the entire fi- naneial structure will tumble. wak- | 900,000 went in 4 years to get the enable Wrigley to persuade them to ing the speculators from thelr dreams, | ruining thé bond houses, and the smali bond investors.” To Nationalize Lake Canal. the constitution which would author-| lize the state to cede or sell the barge! j , canal to the federal government to| gum is reflected in figures showing by the workers for Wrigley’s adver- |‘ bé used a an all-American ship canal) the capacity of Wrigley’s plants, His tising would support a labor press ‘from the Great Lakes to the Atlantic’ Chicago plat has a daily capacity to which would make great, inroads on Ocean, was introduced in the legis-| produce 28,000,000 sticks of gum. His\the power of capital lature today by Assemblyman Me- Brooklyn plant can produce 7,000,000) ves. And one per cent of the total Here is a total eapac-|devoted each year to advertising ity of 36,000,000 a day or 10,710,000,-| would provide $20,000,000 a year for i Subscribe for The DAILY WORKER, | 00 sticks in the working year, This} worker education. | ° Creery, Democrat of Kings. In the last five years Wrigley has made profits totaling over $40,000,- books at $15,000,000. This is more than 265% on the book value of his investment. If we take into aceount stock dividends in 1917 and 1922 his 5-year return really amounts to about 430%. Good to Stockholders . Wrigley has always>paid generous cash dividends. From 1914 to 1919 ‘the rate was 16; from 1920 to 1923,|o% the workers. He campaigns with | 2450; and from 1924 to date, 3600 a ear. Without allowing for stock ividends Wrigley has paid 300%. in cash since 1914, Wrigley has devoted millions of taken from the pockets of the workers, to persuading them to chew end of 1923 he had spent $40,000,000 in various advertising. Nearly $7,- public to demand Doublemint. $700,000 For Signs. A feature of this Wrigley educa- tion, for which the workers have paid so dear, was a giant electric sign spent for educating the people’s ALBANY, N. Y., Feb, 9—A pro-| above Times Square, New York, To taste is wearing protty shabby as com- posal calling for an atnendment to) keep this sign for 7 years cost, $700,-| petitive business approaches its old 000. ihe resulting demand for chewing. sticks a day. ; mi is enough to furnish every man, wo-! | tion 90 chews a year. Takes All He Can, The Wrigley Co. shows up the jok- er in the statement that private initia- \tive, stimulated by the profit motive, ess effectively promotes the public interest in industry. Wrigley’s pur- nose is exactly that of the old robber |barons. He aims at the pocketbooks | psyschological weapons to extract money from those pocketbooks, as | much as he can get, for his own profit. | This is the object of all private busi- ‘ness, although in other lines greater | apparent service to the community conceals the real motive, \ Form of Hypnotism. The $50,000,000 educational fund, ;which the workers have provided to ‘chew gum, is just a small part of an ‘udvertising bill of perhaps $2,000,000,- C90 whieh they are footing annually, ‘The pretense that this is worthily | age. Ten per cent of the money supplied or worker | ( | Butler Says Difference | Between Democrats and | the Republicans Is Gone | gents, By J. LOUIS ENGDAHL, NE of the most interesting sections of the speech by Dr. Nicholas Murray Butler, punctur- ing another hole in “Silent Cal” Coolidge’s presidential aspirations. for 1928, dealt with the admitted lack of difference between the re- publican and. democratic parties. It was like the ghost of the late Frank Munsey, great newspaper publisher and large holder of steel trust stock, speaking, While alive, Munsey repeatedly urged the elimination of pretense at differ- ences between the two old parties thru the marriage of the elephant and the donkey. The combination would bring together the best con- servative elements in both organi- zations and let the liberals, insur- progressives, or whatever else they might call themselves, | wander wherever they might choose, - oe * In addition to being a kiék for Coolidge, in the place where he sits down, Butler’s speech is also an- other smart slap in the face for the pie-counter politicians of the LaFollette group in congress, who continually seck to trip up work- ers and farmers headed for inde- pendent political action, Labor is told by these adventurists in the Wall Street political organiza- tions that it can get what it wants thru one of the old parties. In North Dakota it is the republican party that feels comfortable for the Sorlies, the Fraziers and the Nyes. Just across the state line in Minnesota, the effort was made to stampede the Farmer-Labor forces into the democratic party. Dr. Butler says: “The names republican and democrat as used nationally are now merely titles of! two tradi- tional voting groups, the members of which groups are quite as va- ried gn their policies and prefer- | ences as the two parties themselves used to be. “The: political tactics of the mo- ment seem to be not to find out what is right in principle, what is required by public needs, but what | some one who calls himself by the name of the other party wishes to do and then to oppose that, what- ever it may be. “The democrats at Washington who oppose President Coolidge when he is right because he is a republican, are in the same boat as the republicans in New York who oppose Governor Smith when he is right, just because he is a democrat. “The voters who call themselves republican are doubtless in consid- erable majority in the nation, but they will not be so in 1928, unless at that time the voting masses be Presented with issues that are real, that are honest and that are prosecuted with courage as well as with intelligence.” * * . That shows that Butler has lost none of the language of political flim flam. He doesn’t say, in his . | speech, that he wants to be a | presidential candidate on the ticket of a united reaction, but that is the meaning of his utter- ances, and when he had completed his speech, according to the New York Times, “mention was made of his availability as a standard bearer of the party in the nation.” LEGISLATORS OF | TEXAS EXPELLED ON BRIBE CHARGE Holds Up Optometrist With License Bill | AUSTIN, Texas, Feb. 9.—The leg- Butler thinks that the votes will, islature today by an unanimous vote go to the party that stands square- ly on three issues, prohibition, the relief of the farmer and foreign policy. Butler, the republican, claims to be as wet as Al Smith, the demo- crat. It is “easy to drum up some fake farm relief program, or at least make a promise of one. As for foreign policy, it is on this is- sue that Butler plays his trump card, thinking perhaps that it is too intricate an issue for the vot~- ing masses to understand, It was under the “dollar diplo- macy” of the republican party, es- pecially from the period of the Spanish-American war, during the McKinley regime in 1898, down thru the tempestuous career of Theodore Roosevelt, punctuated by the rape of Panama, followed by | the four years of William Howard Taft, who had taken a post-grad- uate course in the workings of American imperialism, as governor- general of the Philippines, that is dear to Dr. Butler’s heart. 3 Dr. Butler now reverts to\ these gond old days of the iron fist ad- yancement of “American business and material prosperity” in other lands. Dr, Butler, therefore, rather have a man like Senator laude Swanson, of Virginia, with | his pro-League of Nations and pro- World Court position, in the repub- lican party than Senator William E, Borah, of Idaho, who is at weak- kneed cross purposes with the present Coolidge administration in its aggressions against Nicaragua, Mexico and @hina. Butler wants a republican party that hits on all cylinders at all times for the al- mighty dollar. To get such a party means the break-up of tne tivo old parties as they exist at the present time. Ii this is the development of the American party system, then there will inevitably arise a sort of “liberal” party, that will be out gunning for laboir support, like the Lioyd George outfit in England in its early d&ys, that even included many prominent labor officials, Just’ as ‘both the republicans and democrats have various sections of the labor officialdom in tow in this country. The probiem, therefore, is not only to understand that both the capitalist parties are of the same flesh and blood. It is also neces- sary to know that any offspring from this bi-partisan combination, even tho it be labelled “liberal,” will also develop as a devout sup- mater of the capitalist social order. 1e forces that is taking place thruout the nation must result in the strengthening of the Labor Party, + Only thru the development of in- dependent political action on a class basis will the workers and farmers be’ able to fight for their own in- tereste, just “as Dr. Butler again proposes to solidify, centralize and strengthen the political forces of | American capitalism in its present stage of imperialism, with interests in’ every fur-flung corner of the globe. » Vanderbilt Cooks “You'll get pie, bye and bye, When you've learned how to hake and to fry,” , sing rebel workers to the capitalists, after the revolution. Young Cornelius Vanderbilt is do- ing what he can to prepare for the evil day. Having lost $3,000,000 in a newspaper deal, the son of America’s oldest millionaire family is living in a garret—on Fifth Ave.—trying, he says, to save enough on his salary as é cone reporter to pay back the Cleveland Labor to Purchase a 500-Watt Radio Station Soon _CLEVELAND, (FP).—Kept off the air by pressure from employer or- ganizations, Cleveland labor wants to follow Chicago’s example and estab- lish a radio station of its own. The opportunity to purchase a 500-watt plant, capable of broadcasting over a 5A-mile radius, was reported to the Cleveland Federation of Labor. Cleveland unions have. been nego- tiating with the Chicago Federation of Labor's broadcasting station to reach their local membership and the Cleveland public generally by radio, aceording to business representative Charles B. Smith of the building trades council. Soviet War De ent Outlaws the Aviators , Who Fled to Poland MOSCOW, Feb. 9.—The . Commi sariat of Way announces that Co: mander Klim and mechanic Timost- chuk of ‘the Russian Flying Corps have fled to Poland with a Soviet #eroplane, after learning that they were to Be arrested on charges of em- hezzlement. The war commissary an: mM that the two men are now outlawed. Well Known Scientist Dies, WASHINGTON, Feb. 9, — Charles D, Walcott, secretary of the Smith- sonian Institution, and one of the best known scientists of the country, died would | re-alignment of political | of the House expelled two representa- tives, F. A. Dale and\H. R. Moore. | This action followed their arrest’ a few’ days ago by Captain Frank |Hamer and Tom Hickman, state rangers, for accepting a bribe by W. W. Chamberlain of Houston, legisla- | tive representative of the State Op- \tometrist Association. | The legislators were caught in a trap, according to testimony before \the committee of the House. A bundle of $1,000 in marked bills was passed into the hands of Dale, who was arrested immediately there- after. Moore’s arrest quickly fol- | lowed. According to the testimony, Dale and Moore had promised to kill a bill introduced by Moore taxing optome- trists, which was pending before the |House Committee on Revenue and | Taxation. Testimony was taken by a separate | committee of the legislature, which | recommended that Dale and Moore be expelled. Argument on the committee’s re- {port to the House lasted two days. | The vote, for Dale’s expulsion was 133 |to 4 nays, and on Moore’s expulsion | 199 to 15 nays. “Lizzie Jokes” Coin Money for Ford (Continued from Page One) | restricted as to depress their market | value, | This measure was a clause in the |company’s by-laws prohibiting any | stockholder from selling his shares to |“outsiders” unless “all other stock- holders waived their right to buy | them, | Lowered Value. | It was used for the first time in the | cross-examination of Ralph T. Crane, | New York Banker, head of the securi- ties department of Brown Brothers and Company, although it had become |@ part of the record in Detroit. Over vigorous objections from John |W. Davis, advisory counsel for the | former stockholders, the board of tax | appeals permitted testimony by Crane degen this restriction would have been a “very important element” to any- |one buying the stock. Best Investment. Crane insisted, however, that it {would not reduce his “value” esti- | mate, which was “not less than $9,500 | per share. | This is the value claimed by Sena- tor James Couzens, of Michigan, and {the other former stockholders, and | agreed to by the government in 1919. | ‘hey sold out to Henry Ford in 1919 | for $13,500 per share. To reduce the | 1913 value to $8,500 per share would add $6,000 a share to their taxable profits on the deal, Crane declared it was impossible to | find any company to compare, as an | investment, with Ford’s, Ford Satisfied. Business conditions in America are “as solid as a rock”, Henry Ford-de- celared today after a visit with Presi- \dent Coolidge at the White, House, | He called to pay his respects to the | president. . Ford looks for uo diminution on in- | dustrial prosperity in the near future. He declared that prohibition ‘ought to be here to stay.” “Aleohol is not | good for anybody”, he asserted. Ford \teaves this afternoon to visit Thomas | A. Edison, who will be 80 years old jon Friday. Couzens Holds Bag. The suit itself does not directly in- |volve Ford. He is not on trial, and | though in Washington, takes a rather |non-commital attitude towards it all. | Couzens is the early financier of the | Pord Motors Co., and there appears | to be no particular friendship towards him on the part of Ford. The reason Couzens was forced out of the con- cern he did so much to get going, has never been made public. ; ‘Lost His Arm When Making Movie for David W. Griffith BOSTON, Mass, Feb. 9.—A. Ben- der, a former soldier, on the witness (stand in his suit against D. W. Grif- tith, well known motion picture pro- ducer, declared hé took the part of a British soldier in the Bunker Hill bat- tle seene Griffith was filming, and was instructed by Griffith in person | and by a civilian employe in the oper- _ation of a cannon, Under cross-examination by Davis, Bender said he had been instructed to swab out the gun barrel with cold water after each shot, but admitted ithat he did not know why, He de- nied, however, that he, had failed to given to prevent the heat in the can- non from igniting the fresh charge of powder. One charge exploded in nee of this, and carried away his follow these instruetions, which were -