The Daily Worker Newspaper, May 27, 1933, Page 1

PH i i | SRS — , Japan and U.S. Come to Grips at Geneva ‘Today the leader of the Japanese delegation to the Disarmament Con- ference announced that his government demanded a navy that would be as large as that of the United States, demanded new naval ratios of 10- 10-9 with the U.S.A. and Great Britain, demanded the ceremonial burial of the London and Washington treaties, and wound up by saying that if these Japanese demands were not met at Geneva, Japan would be “reluctantly” forced to withhold its adhesion to any new disarmament conyention which the present Conference might arrive at. This represents the greatest disruption, the most clear and open break, that has taken place in many years in the camp of world imperialism. ‘The contradiction between American and Japanese national capitalisms finds here a glaring expression, in the broad light of day. It is American imperialism that is playing the aggressive role in China and the Pacific. England has many other irons in the fire. Firmly es- tablished in the valley of the Yangtze River, she has a share of China already. But the United States arrived late on the scene. She proclaims the policy of “the open door,” a slogan under which she is carrying out the most rapid economic penetration. Japan, on the other hand, as she pushes down through Manchuria and Jehol into China proper, consoli- dates her position and slams the door in the face of American capital. The Japanese do not attempt in any way to hide the fact that it is the battle fleet of the United States, recently returned from manoeuvers in the seas that wash the Japanese coast, that they have in mind when they make this demand for parity in the form of an ultimatum to the nations, Japan is faced with an economic crisis at home that is second to none. Industry is working at less than half capacity. Exports dropped 32 per cent during 1930, and another 22 per cent during 1931. The situ- ation has continued to worsen in the last year. The army of unemployed is over three million strong. A financial collapse is imminent, with gold reserves dropping from 1,124 million yen in 1929 to 521 million yen at the end of 1931, Finally, the rule of the Japanese big bourgeoisie is me- naced by the growing Japanese revolutionary movement, the spread of “dangerous thinking,” as Marxism is called in Japan, and the spread of working class organizations, which are equally dangerous for the Japan- ese bourgeoisie. So Japan is being impelled towards imperialist expansion, and its inevitable accompaniment—war. In Japan’s expansion in the Pacific, in Japan’s struggle to found a Japanese empire on the continent of Asia, the enemy standing in the way is the United States of America. Similarly, America, seeking to push forward the frontiers of its influence in the Pacific, seeking to expand s investments and widen the market for its goods in China, is brought ys face to face with the same enemy—Japan. Hence Japan’s demand for an equal navy, a navy which she can use first as a bargaining weapon, and second as a weapon of military of- fense against her foe. Hence the insistance of Roosevelt's “ambassador” Norman Davis that the naval ratios of the Washington and London agreements be retained in the draft disarmament convention now being discussed at Geneva. Here is a conflict which can be with difficulty masked, which cannot sed of by signing pacts, or by initialling the equivocal formulas of professionai diplomats. “Low Quality--Not Illegal” ‘The relief administrations in all states are putting into effect the Roosevelt “economy program”, It is a means of saving money by tight- ening the belt of the unemployed. The commissary system is replacing cash and voucher relief. Where cash or a money.-youcher. was given. .which~made- it’ possible for ihe housewifé to select. food for the family;-tiow @ basket is given to replace it. The cheapest food is bought in large quantities and dished out 25 relief for the unemployed. ‘Besides. being inadequate, it is disastrous to the heelth of grown-ups and many times causes death to little chil- dren, An outstanding proponent of the commissary plan is none other than the “liberal” Governor Pinchot of Pennsylvania. By this plan, the gover- nor wants to feed adults at 47 cents and children at 27 cents a week. What this basket of food means was illustrated by a photograph of a label on a can of tomatoes distributed in Westchester County, New York, On this label was printed: “Below U. S. Standard. Low quality, but not illegal.” Here was food of admitted low quality distributed to unemployed, while | good food is destroyed in order to maintain high prices. In New York City last. month, two little children of James Gourley, an unemployed worker, died after eating poisoned cornbeef, distributed by the Home Relief Bureau. The low standard of relief that was given in the form of cash is being abolished. It is replaced by food baskets whereby unemployed work- ers are given poisonous trash that cannot be used in the market. There is no level that the capitalist government will not go to in order to save the money of the rich at the expense of the workers. This however was met by a number of struggles throughout the country. Sharp resistance is shown by the unemployed to these attacks to put them on food rations. These struggles against relief cuts should find a unified strength on the slogan for Federal Unemployment Insurance. The government must be made, as a result of the united effort of the working class, to realize that which the workers demand is: Taxation of the rich, using of all war funds to supply the necessary money whereby the unemployed will get Unemployment Insurance. i The “Daily” in All Séuodles!| To realize the tremendous possibilities that exist for spreading the circulation of the Daily Worker, one need only point to the Scottsboro case. During the recent trial in Decatur, when the special daily features, written at the scene of action were appearing in these pages, the “Daily's” circulation increased immeasurably on the streets of New York alone. Why was there not so great a sale in Chicago, where a huge nuriber of Negro workers live? Surely they also awaited the news of this great struggle, breathlessly, from day to day! In almost every great industrial center of the United States, the workers under the leadership of the Unemployed Councils, carry on the fight for unemployment insurance, for adequate relief. The Daily Worker is the only newspaper in the country which devotes its space and its editorial leadership and support to these struggles. How can the small circulation of the Daily among these masses of unemployed be ex- plained. It is a fact of long experience that, whenever great strike struggles have been carried on without a simultaneous popularization of the Daily Worker among the strikers, the organizational possibilities of the strug- gle could not be fully utilized after the strike was over. This has hap- pened again and again. IT MUST NOT HAPPEN FROM NOW ON! ‘We must remember that it is not for the Party members alone, but for the great masses of jobless and employed workers in this country that the Daily Worker is published. Many Party members do not seem to realize this. Far too many members of the Party are content to receive their paper every fay, read it, and throw it away to await the next day's edi- tion. This negligent use of our foremost collective organizer and agitator must be condemned and corrected without delay. Every single Party member must USE his “Daily”, must spread it among his friends, must utilize it to gain new forces for our increasing and intensified struggles. ‘The Daily Worker must be spread by Party members in strikes. It must be popularized in the struggles of the jobless, in the heroic battles of the farmers, in the militant fight for the release of the Scottsboro boys, Tom Mooney and every class-war prisoner in the United States. © Every Party member must individually assume responsibility for this. He must see that his unit, his section, his district, carries forward the work of gaining new readers for the “Daily” with enthusiasm, with energy, with proletarian thoroughness, Only in this way can our circulation drive be a success! Only in this way will it be possible to acquire the 20,000 new readers which is the goal of the present campaign! Bniered as second-class matter at the Post Offiee at Vol. ms No, 127 ee York, N. ¥., under the Aet of March 8, 1879, 8 Section of the Communist International ) NEW YORK, SATURDAY, MAY 27, 1933 orker nist Party U.S.A. For Article on Morgan Empire See Page 5. For Article on Struggle Against Imperialist War See Page 3. THE WEATH ate winds. (Today showers; cooler; moder- CITY EDITION Price 3 Cents HALF OF POPULATION PAYS TOLL TO MORGAN WORKS DEPT. FIRES 2,000 “Public Works” Is a Fake Manouvre LOSE JOBS JUNE 1 |Serubwomen, Laborers First to Be Fired ALBANY, N. ¥., May 26.— Two thousand workers of the State De- partment of Public Works will be fired. One thousand will loose their jobs by June 1 and the others by the end of June. This is the deci- !sion of Governor Lehman, a close friend of President Roosevelt. This decision to throw out of work 2,000 workers comes after a week of glar- ing headlines that Roosevelt will start additional public works, The governor went to Washington to ask for fifty million dollars. But this step in adding more to the job- less shows that the money is not to be for the unemployed. Among the first to be fired are scrubwomen and laborers. Many of these women support large families on their income. 75 working on Pub- lic Building are the first to suffer. While this is done the high salaried officials will maintain their jobs with- out disturbance, New York Evictions Increase 50 Percent NEW YORK.—From Febru- ary to April eviction notices haye increased from 9,500 to 12,000 per month. Prospects are that in May the figure will be 18,000. N. Y. PUBLICJapan Demands Navy As Big As | United States’ Roosevelt Talk About} Imperialist Powers Attack Peace Proposals of| the Soviet Union GENEVA, May 26.—Admiral Naotake Sato, chief Japanese delegate to | the disarmament conference, sprang a mine here today by announcing that Japan’s adherence to the proposed arms agreement depends on the accept- ance of an amendment striking out all mention of the naval tonnages allot- ted by the Washington and London naval agreements. Sato said: “If the Conference accepts our proposals, this will reduce the battleship and aircraft-carrier ton-¢- nage of the United States, Great Britain and Japan approximately 880,- 000 tons below the existing tonnage. Unfortunately, the Conference cannot be congratulated on having reached a concrete naval accord up to the pres- Score Labor Dept. on Deportation Threat Against N.Y. Seamen NEW YORK.—Denial by Frances Perkins, Secretary of Labor, that her department was instrumental in the arrest and holding for deportation of sixteen foreign-born seamen who fought eviction from the Jane Street “Y” Mission, drew today a sharp reply from the New York District In- ternational Labor Defense which charges Miss Perkins and her de- partment with “acting in coperation with the bosses as a strike breaking agency.” The letter 1n which this charge is made also states, “Your protest that the Department of Labor did not in- stigate the arrest of these seamen is only a clumsy excuse to absolve the deportation authorities of responsi- bility in these and similar cases. These could not be held without war- rants by your department.” The letter concludes with a de- mand for the immediate release of the seamen held on Ellis Island and the immediate stop to the persecu- tion of foreign born, | MORGAN ent. If a new accord cannot be reach- ed, we prefer to let the present treat- jes exist, but without re-affirming them or re-stating them in a new convention. For that reason our amendment appears necessary to ren- CHIANG SIGNS ONE ONLY OF MORGAN'S ELECTRIC COMPANIES SELLS TO 55 MILLION | Morgans Made $60, 000,000 in eek Deal Giving Them Control of Enormous Utility System All Over the Country Senate Committee Votes to Keep Morgan Loans to Partners A Secret WASHINGTON, Se 26.—It was disclosed today at the Senate investigation that one of the Morgan-controlled public utility companies selling electric current, has a total number of costumers equal to more than half the population of the — der possible our adhesion to a new convention.” Here we have the authentic voice of Japanese imperialism speaking, demanding naval parity with its rival, the United States. It is also signifi- cant, that the answer to the Japanese amendment was made by Norman Davis, on behalf of American imper- jalism, The demands of Japanese impe- rialism is in answer to the sharp at- tack of American imperialism against Japan contained in Roosevelt's ‘peace’ message. Demand Larger Navy 1930 the ratios 10-10-6 were laid down for England, the United States and Japan, The ratios were re-affirmed in Article 1 of the British draft dis- armament scheme now under discus- sion, and Japan insists that they be struck out, and replaced by a 10-10-9 ratio, Japan said that if she was not given virtual parity now, at Geneva, she would feel herself free (after the in.1936).to build up a navy with the root as the Umit. Admiral Sato, in his speech attack- ing the London Treaty, which his |in"jsoo of the London agreement Continued on Page 6 building burnt down, Strike Against Forced Labor to Pay Up Taxes ide P: Morgan Doesn’t Pay Taxes But Jobless in Turtle Creek Must Work Them Out TURTLE CREEK, May 26.—Forced labor to get school taxes paid is the plan of the school board in this borough. Several months ago the school A company in Cleveland was given the contract to clear the wreckage, The school board agreed with the company “that all labor was to be recruited from delinquent tax payers”. The wages were to FREE SUMMER SCHOOLS WON BY STUDENTS N.S.L. Led Fight; Held Protests At City Hall NEW YORK.—The student cam- paign against the attempt of the city to abolish free summer schools in Brooklyn, City and Hunter Colleges ended victoriously today when the Board of Estimate passed a resolu- tion to continue the schools, Three hundred students led by the National Students League were in the Board of Estimate rooms, and out- side of City Hall when the hearing on the resolution took place. Joe Cohen of the N, 8. L. was the first to speak when discussion was opened. He militantly told the Board the students opposition to the closing of the schools. There was loud ap- plause when he finished. A man representing himself as a “taxpayer” opposed the free schools and said, “They've got enough edu- cation, let them go to work,” “Get us a job” a student shouted. A meeting was held across from ———— be 30 cents an hour. All of it to be used to pay the back taxes. Fifteen workers were hired Monday for this job. They were to work 10 to 12 hours a day. The Unemployed Council approached these workers and they responded favorably. A strike was called and all came out including four men who were brought in by the bosses from an- other town. ‘The contractors than offered to pay half in cash and the balance to go for taxes. This was rejected. The workers put up a golid front, They finally gained a comcession of 40 cents an hour, 15 cents to be given in cash and 25 cents to go towards back wages. This town 4s controlled by Wes- tinghouse Electric and Westinghouse Airbrake. These companies are con- nected with the Morgan interests. J. P, Morgan admitted before the Senate investigation committee that he did not pay any taxes during the years ‘1930-1931-1932. Morgan, the billionaire, does not pay taxes. But workers are compelled to work out in jforced labor the school taxes that they cannot pay because they are un- employed. Is it not evident that Morgan & Co. own the government and decide everything. City Hall following this, where speak- ers stressed the need to continue the fight for students rights and against retrenchment of education. Last week there was also a stu-|« dent demonstration at City Hall on the issue. SEEKS NEW TRIAL ATLANTA, Ga., May 26.—The de- mand that Angelo Herndon, young Negro organizer of the unemployed be given a new trial, and freed on bail will be made in court here Sat- urday when Benjamin J. Davis, Jr., and John H. Geer, International La- Judge Lee B. Wyatt to argue a mo- tion filed last January when Hern- don was sentenced to 18 to 20 years on the chain-gang. Awaiting this hearing in Fulton County Jail, Herndon is constantly subject to the most inhuman tor- tures. The entire jail is unsanitaty and pervaded with stench and filth, but for ¥ Herndon the jailers have re- * bor Defense attorneys, appear before |, HERNDON DEFENSE served @ special cell. In the cell above the one he occu- pies, the toilet has been broken, so that excrement constantly oozes and drips down ‘into the narrow. cell where Herndon spends twenty-four hours a day, Protests, by telegram, letter, and resolution, should go immediately to Judge Lee B. Wyatt, Fulton County Superior Court, Atlanta, Ga., de- manding that he grant Herndon a new trial, and his freedom. Protests should go at the same time to the warden of Fulton County Jail, de- manding the removal of Herndon from the unsanitary ¢ell he now oc- cupies, x AMOSKEAG MILL STRIKERS DEMAND RETURN OF CUT Ballot Saturday on 15% Wage Cut With- drawal Offer MANCHESTER, N. Y., May 26.— A report in the Daily Worker yester day that the strike of the Amoskeag workers had ended in “complete vic- tory” when the company agreed to immediate payment of the 15 per cent increase in wages was corrected today by direct information from the strike area. The. strikers will take a secret ballot on this proposal on Saturday. The Daily report was based on cap- italist press sources but declared however that “actually the 15 per cent raise is not an increase but a re- storation of part of the drastic cut in wages which the bosses have imposed in the past year.” News from the strike area reveals that the strikers are now demanding recovery of their previous wage cut up to 42 per cent. A so-called arbitra- tion committee consisting of Ri- viere of the UTW, a Catholic bishop, Peterson and Governor Winant of New Hamsphire who mobilized the National Guard against the strikers, announced this settlement. It is therefore not surprising that the strikers resent and distrust the announcement and demand a return of their full wage-cut. The strikers have already succeeded by their mi- litancy in forcing the withdrawal of the National Guard, as well as the concession of a return of 15 per cent of their wage-cut. In_an effort to break the strike, the bishop and Barry, president of the New Hampshire Federation of Labor are advising the workers to have faith in the Roosevelt plan and wait for it to take effect. But the strikers have had their taste of The Amoskeag Manufacturing Co. is known for its ruthless treatment of its workers. The directors of this concern are closely tied up with lead- ing Boston banks having Morgan connections and have built up their reserve of over 15 million doliars on the sweat and toil of the workers. From 1922 until recently the com- pany held a company union over the heads of the workers which forced through wage cut after wage cut and new speed-up schemes. When they could no longer put over this brutal policy'on the workers who voted the company union out of ex- istence, they agreed to bring in the United Textile Workers. While wage cutting has continued stockholders have received their dividends reg- ularly and the reserves of the com- the workers company intacty Under the London agreement of} TRUCE WITH JAPANESE Chinese Militarists| Blackmail North China SHANGHAI, May 26.—The report- ed truce between Chinese militarist leaders and the Japanese has been officially announced as signed at Miyun, although the Nanking gov- ernment is keeping the news from the Chinese people through the im- position of a rigid censorship. | The Nanking government has | agreed to force the dissolution of all Chinese volunteer troops operating against the Japanese in North China, as well as suppress all anti-Japanese movements in that area. This marks the establishment of a Japanese controlled empire em- bracing Manchuria, Jehol, Chahar, and North China proper, covering an area of over 600,000 square miles. War Minister Ho Ying-Ching is de- manding $5,000,000 blackmail from the Peiping Chamber of Commerce to pay the expenses of evacuating his forces from the city, while other Chinese generals are holding out for bribe payments as well. ‘The foreign imperialist elements in | North China, among them British and American business men, are| hopefully awaiting the establishment of a puppet regime in close contact with Manchukuo and under the Jap- anese aegis. The Nanking troops are rapidly en- training for Central China to take part in Chiang-Kai-shek’s new cam- paign against the armies. Chinese Soviet | WORK IN A SLAVE CAMP (By a Worker Correspondent) KELOWNA, B. C., Canada—There | are about 65 men here in one of Bennett's slave camps. We have been here all winter. They are trying to put us to work for our board on the roads. Some of the workers here United States. The United Corporation, the | Morgan-controlled utility, sells | electric current to more than 55,000,-| 000 people. All these consumers of} electric current pay tribute to the| Morgan financial dynasty, the most | powerful banking house in the world Make Enormous Profits. The way in which the Morgans| make their enoromus profits from| | stock selling and merging of compa- nies was graphically revealed in the| testimony of George H. Howard, pres- ident of the Morgan-controlled utility company. The Morgans organized the United| Corporation as a holding company to| obtain control of the various electric} producing companies. They organ- ized the new company so that they! obtained the right to buy 1,000,000) shares of the new stock for $1 a share. A month later, the Morgans could have sold this stock for $30 a share,| giving profits of $30,000,000 for merely organizing anew company, In addition to this gigantic steal, | the Morgans arranged to buy com-| mon stock of the United Corporation | at $22.50. They were able to sell this! stock at $67 a share as soon as the| stock was offered for sale on the New| York Stock exchange, giving them al profit. on their holdings of 400,000/ shares of at least $18,000,000. | The minimum possible profit to the Morgans on this one deal was, there- fore, in the neighborhood of $60,000,- 000. Control Other Companies. The Morgans control other utility | companies in addition to the United Corporation. Among these are the| American Telephone, the Interna- tional Telephone Company, the Con- solidated Gas Company, the Public Service Corporation, of New Jersey, the United Gas Company, the United! Gas Improvement Company, and! many others. It is admitted that the Morgans control, or exercise influence in prac- tically every utility company in the |factured goods. sel for the Investigating Committee. The Senate Committee voted to keep secret the names of the Morgan partners who owe money to the firm The United Corporation controls the following companies: Niagara Hudson Corp., Columbia Gas and lectric, Commonwealth and South- | ern, and United Gas and Improve- ment Company. ‘These companies cover many States in the East, South, and parts of the Mid-West. There are two Morgan directors on the Board of Directors, and three members of the firm of Bonbright | and Company, a company very close to the Morgans. CONGRESS PUSHES SALES TAX BILL Morgan "Disclosur eS Used As An Excuse WASHINGTON, May 26.—The re- yelation that thé Morgans, richest bankers in the country, did not pay any income taxes for the last three years is now being used as a pre- text for thé passage of a Sales Tax or a Manufacturers Sales Tax. The House Ways and Means Com- mittee is now offering to amend Roosevelt's public works Bill so as include a géneral tax on all manu- The burden of this on the kind of tax falls hea working masses who buy g The argument made by mocratic and Républican Congress- men is that the Morgan investiga- tions have shown that it is impos- sible to collect income taxes from the rich, and therefore, the taxes must bé collected directly from the working class. ~ The present tax provisions of the Roosevelt public works program pla- ces an annual tax burden of $700,- | country. are trying to get the men lined up to fight this. | 000,000 - directly on the workers and small income sections of thé popu= lation. It also contains a 3 per cent tax on electric current which is passed to the consumers. In an attempt to quiet the indig- Not only have the Morgans made enormous profits from their banking manoeuvers, but they also draw mil- lions of dollars from these companies in dividends and bond interest. | Pursuing his usual tactics, Senator | nation which has béen aroused by Glass attempted today to hinder the|the recent disclosures, the House investigation by denying that Pecora| Ways and Means Committee is pre- had any authority to act as the Coun- pared to split the electric tax into two parts, 1 per cent to be paid by Roosevelt Orders Final Repeal of Gold Basis: Currency No Longer to to Gold Backing; Purchasing Power of the Dollar to Fall Is Being Prepared WASHINGTON, May 26—President Roosevelt has just ordered Con- gress to pass a law declaring that the ly off the gold standard. This will remove all American money from any relation to gold, American money will be backed and valued only in relation the electric copa inies, and 2 per cent to be paid by the consumers. The Roosevelt administration is making every effort to rush the pre- sent tax bill through, permitting only |six hours debaté, and permitting no amendments to be made except those offered by the Ways and Meags Committee. In an attempt to make it appear as if the rich will now be forced to | pay income taxes, the Committee may | also recommend that stock losses be j liable to tax reductions only in the ! vear in which the loss occurred. Now the law permits the rich to substract stock “ es” from their incomes in the ye: after the losses occurred This would actually make little ifference, liowever, in income taxes from the rich who take advantage of the tax exempt provisions of Gov- ernment securities to evade income Be Valued in Relation As: More Inflation United States is legally and definite. to the credit of the government, and will not be convertible into gold. t2,: payments. The Roosevelt govern Money Not Backed By Gold. The American government will no longer have any legal obligation to pay its debts in gold, even if pro- vided for in “gold clauses” in its bonds which are supposed to guar- antee payments in gold, All American money is now only) Paper money not secured by any gold. More Inflation. ‘This act is only further proof that the Roosevelt government is being forced to embark upon a sweeping program of currency inflation which will mean cheapening money, rising prices, declining purchasing power, and a lower standard of living for the masses. Weapon Against Britain. Roosevelt's request for the legal abandonment of the gold standard pany have continued to pile up. Now| Weapon with which to fight the Brit- are demanding back some|ish capitalists in the forthcoming of the wages they have had to saeri-| Economic Conference, since this move fice to maintain the profits. of the} will ade conti manufacturers a for American currency is also part of | the attempt to have a powerful sell their goods cheaply in, ¢ — | ment is not making any increases itt foreign markets against British com- | t surtaxes on large incomes, how- petition love GOVERNMENT OFFICIAL IN MORGAN PAY PLOTTED AGAINST U.S. S. R.} WASHINGTON, May 26.—One of the most significant of the startling disclosures made yesterday at the Senate Committee investigation is the fact that one of the government’s professional “red baiters” was on the Morgan stock tip graft list. The man is Robert E. Olds, under-secretary of the Treasury daring Hoover's administration, and subsequently a member of the American Reparations Commission abroad. In 1927, Olds, as a state department official, acting for the United | States government, gave all the American newspapers a deliberately false story, manufactured by himself and his agents, which contained forged documents claiming to show that the Soviet Union was attempting to stir in Mexico hatred for the United States. These vile forgeries were part of the state department's attempt to arouse intervention hysteria in this country. The Hearst papers spread these forgeries throughout their nation- wide press service,