The Daily Worker Newspaper, June 12, 1933, Page 1

4 if The Morgans Make Millions in Protits But Do Not Pay Income Taxes; at the i C/ / ey, \ Same Time Unemployment Relief Is Cut; Demand Heavy Taxes on Big Incomes | | land Capital Levy on the Morgans, for an Unemployment Insurance Fund + urged to have faith in the “national industrial recovery act”. Visit Every Subseriber When Hie Sub Expires to Get His Renewal ! Dai a Central ily, AW (Section of the Communist International) rker nist Party U.S.A. See on Page 3 W TRE WEATHER-—Today, westerly winds. Vol. X, No. 140 -— NEW YORK, MONDAY, JUNE 12, 1933 Wall St. Gets Gov’t Subsidies; Demand These Funds for Unemployment Insurance re Roosevelt government continues its bitter and unflinching oppo- sition to Federal Unemployment Insurance to be paid for by the Gov- ernment and the employers. ‘There is no money, says Roosevelt, The starving must be helped by private charity. ‘The problem of the unemployed is a local, not a national problem, he msists. But is it true that there is no money for immediate relief and wn- employment insurance? Almost every day the government is granting enormous gifts, subsidies and “loans” to the richest and most powerful sections of the capitalist class, the Wall Street bankers. Roosevelt's Railroad Bill, for which he has put up so vigorous a fight, cancels the $300,000,000 debt which the railroads of the U. S. owe to the Government under the provisions of the Transportation Act of 1920. The Government has collected $10,000,000 of this debt. In the next few days, when Roosevelt signs the Railroad Coordinator Bill, not only will the three hundred million dollar debt be cancelled, but the Government will actually turn back the ten millions which it now has in its treasury vaults! CR Examination discloses that it is the Morgan railroads who will benefit most by this act of Roosevelt. Three large railroads, the Chesapeake- Ohio and two other railroads controlled by the U. S. Steel Corporation, which in turn is controlled by the Morgans, will benefit by more than $100,000,000 when Roosevelt signs the Railroad Coordinator Bill in the next few days. The Missouri-Pacific Reilroad, which has just gone bankrupt and which is controlled by the Morgans through the Alleghany Corporation, received over $23,000,000 from the Reconstruction Finance Corporation. It was the Morgans who collected most of this money as interest pay- ments and payments on loans. This money was collected from the broad toiling masses in taxes. Congress has just granted the Reconstruction Finance Corporation ~ the -axrthomtty te—!16mt850;000,000 more of the people’s money to largé insurance companies. Already the Travelers Insurance Company, one of the biggest in the world, and reported to be under the control of J. P. Morgan & Co., is making preparations t. get its fingers into this rich pie. The Roosevelt Government has just taken another $50,000,000 and turned it over as a “loan” to the bloody counter-revolutionary Nanking Government of China. y The Roosevelt Government has passed appropriations vf over $600,- 00,000 for enormous military and naval construction in the coming year. * * It would seem then that the Roosevelt government could easily find hundreds of millions of dollars for relief and unemployment insur- ance if it stopped this steady flow of money from the government into the coffers of the Wall Street magnates, Before the demands of the starving workers, the Roosevelt goyern- ment is like fiint. To the rich bankers and capitalists Roosevelt pours out millions with boundless generosity. These enormous government bounties, for which the working masses thust pay in intolerable tax burdens, must be immediately stopped. The ten million dollars which Roosevelt intends to return to the Tailroads within the next week must be turned over for immediate relief. The $50,000,000 subsidy to the insurance companies must be revoked and the money turned over for relief, The $600,C00,000 which the government proposes to spend for cannon, bombing planes, poison gas and battleships must be taken from the government military machine and turned over to feed the starving workers and their families. The Roosevelt government must be forced to divert the colossal sums which it is directing into the already swollen moneybags of Wall Street to an Unemployment Insurance fund, to be administered by the workers themselves! How They Use the Industrial “Recovery Bill” Every strike-breaking labor official. every agent of the employers in the ranks of the workers, uses the dentagogic arguments brought forth by the leadership of the American Federation of Labor in Roosevelt's “industrial recovery bill’. One of the veteran leaders of the Socialist Party, many times a candidate for office and long a part of the right-wing trade union bureaucracy, Joseph D, Cannon, is now trying to paralyze attempts of the Doll and Toy Workers to resist the slave conditions under which they work. In a circular letter signed by Cannon, as manager, and Sam Farul- la, president of the Doll and Toy Workers’ Union No. 18230, workers are The cir- cular says of this strike-breaking and union wrecking act: “It,is devised to put the unemployed back to work, shorten the hours of labor and increase the pay.” Such is the poison propaganda put before the doll and toy workers at a time when the new season is approaching for such work. It is designed to throw these workers off their guard so that they will be unprepared and helpless before the cnslaughts of the bosses. This is especially necessary at this time because the employers have not forgotten the strike struggles of last season, notably the strike of the Trenton Doll Workers, led by the T. U. U. L., and fear a revival and extension of the fight against starvation wages and long hours throughout the industry. * This sort of treachery must be a warning to the toy and doll workers to be on their guard and to immediately proceed to set up democratically elected committees in every shop, uniting organized and unorganized, em- | ployed and unemployed, to compel the bosses to pay living wages and to enforce shorter hours of toil. As opposed to the united front of the employers, the government and the labor fakers (Republican, Democratic and Socialist) against the workers, there should be set up machinery in every industry that can attain united carries on in 2 more vicious form the capitales dor mors than four reer, GUSEV, OLD BOLSHEVIK LEADER, DIES Active in Comintern, Took Interest in Work) of American Party | (From the Moscow Correspondent of | the Daily Worker.) MOSCOW, June 11.—8. Gusev, | one of the oldest Bolsheviks, is dead at the age of 59. During recent years Gusev de- voted all his energies to work in the Comintern, manifesting particular interest in the work of the Commu- nist Party of the United States. Back in 1896, Gusev joined the St. Petersburg Union of Struggle for the Liberation of the Working Class. In 1902, he organized the mass strike of the workers in Rostov-on-Don. Following the split between the Bolsheviks and the Mensheviks in London in 1903, Gussevy became one of the organizers and a member of the Executive of the Bolshevik wing. During the period of the October Revolution, Gussey conducted the Political work in the Red Army. For many years he was a leading mem- ber of the Revolutionary Military Council. He was irreconcilable to- wards the Trotskyists and their fight against the Soviet Union and the forld revolution. Gusev was 2 thoroughly educated, active revolutionary, “Gussev's death,” says “Prayda,” “is a great joss to the Communist Party of the Soviet Union and to the whole in- ternational movement.” The last issue of the “Communist International,” No. 8, has an article by Gusev on “The Task of the C. P. U. S. A. in the Struggie for Social Insurance,” in which he subjects the Party's work in this field to valu- able and trenchant criticism. Gusev writes: “The main de- munds, capable of uniting the col- ossal masses of American workers, were the seven-hour day and all kinds of social insurance at the ex- pense of the capitalists and the gov- ernment. “The widest and most tireless; agitation for these demands must become the chief task of the Party for a whole period, which must si- multaneously start to organize the unemployed. . “Since then it has been repeated on numerous occasions that the struggle for social insurance, espe- cially unemployment insurance, must occupy the central place in the struggle for immediate demands (1930), that the struggle for social insurance and unemployment insur- ance must be converted into a gen- uine mass campaign (1931), that the directly central task of the Party is the mobilization of the masses for the struggle for immediate aid for the unemployed, the insuring of the unemployed, and social insuranee (1932).” (See biography of Gusev on Page 4.) Senate Kills Levy on Tax-Exempt ov’t Securities Provide Millions for Army and Navy in “Public Works” Program; $50,000,000 for Militarizing | Muscle Shoals Dam Extend $500,000,000 Hoover Excise Taxes; Cut Veterans’ Benefits $367,000,000, As Military Budgets Are Largest in History WASHINGTON, June 11.—At the height of one of the most drastic and determined “economy” drives in the history of the country, a Conference Committee from the House and the Senate today rejected a proposal to make all income from tax-exempt securities subject to normal income taxes. It is estimated that there are now outstanding $32,803,000,000 of tax-exempt The amendment to make public all | SENATE ADJOURNS AS ROOSEVELT xz ae eee ASKS MORE CUTS aes The Conference Committee ac- cepted the following tax program to | Will Meet on Monday to Debate Department secu; ties. A government tax on these | securities would bring in enormous | revenues. Taise $20,000,000 a year to finance the | interest payments on the proposed | $3,300,000,000 public works program: | an increase of one half of one per | |cent tax on gasoline, one-tenth of | | | Japanese Ship Sails WithWar Materials | From Brooklyn || NEW Maru, Japoncee frei ev. sailed from Erie Basin Pied 3, Brooklyn, yesterday; loaded with scrap iron and other cargo of undetermined nature for Japan. From piers 1, 2 and 3 of Erie Basin there are almost weekly sailings of Japanese ships, loaded with scrap iron and other war | materials. The S. S. Kwansai Maru will! arrive tomorrow to load a similar | cargo. YORK.—The 8. S. Tokoi | NY. TO HOLD... HEARINGS ON AUTO TAXES NEW YORK, June 11.—Having guaranteed the delegation of Wall Street bankers, who demanded that the city meet its $236,000,000 debt payments that $30,000,000 of new | taxes would be raised, Mayor O’Brien} Moley says, and the other city officials high in Tammany councils are casting about for ways to raise the required amount. 1 The taxes on autos and bridges is Re-Organization Plans WASHINGTON, June 11. — In iis drive to cut certain government ex- penditures in order to guarantee government payments to the banks and bondholders, Roosevelt sent a last minute executive order yesterday to Congress demanding further re- ductions of $25,000,000 in govern- ment expenses. Roosevelt's orders have met with resistance from a minority group in both Houses. They will be debated on Monday, the Senate having es- pecially adjourned in order to get time to examine the new proposals. The reductions will come from the amalgamation of various govern- ment offices, There will be 25 per cent reduc- tions in the expenditures for agri- cultural colleges, vocational educa- tion, experimental stations, re-habil- itation schools, etc. Cut Educational Bureaus. If this, the latest of Roosevelt “economies,” is carried through, the total of Roosevelt's cuts in the budget will amount to $900,000,000. The bulk of these reductions will have come from reductions in gov- ernment salaries of civil service em- ployees, cuts in various educational and welfare departments, cuts in veterans’ compensation, etc. The ex- penditures for the Army and Navy have been increased so that they are now close to the largest in the his- tory of the country, amounting to over $600,000,000 for the coming year. The heaviest weight of Roosevelt's “economy” program falls upon the veterans and Federal employees. All cultural, scientific and welfare expenditures of the government are being cut to the bone by Roosevelt's efforts to leave enough government income to meet payments on govern- ment bonds. NEW YORK.—If a worker paroled |from prison, even though in every way complying with the terms of the parole, takes a job with a workers’ organization, he “breaks his parole.” That appears to be the attitude of the California Parole Board which is seeking to stop Oscar Erickson, par- oled from San Quentin Prison where he was imprisoned in the Imperial Valley case, from working for the In- ternational Labor Defense office in Buffalo. Ordered Back to N. ¥. No sooner was it learned that Erickson was employed as a book- keeper there, than he was ordered to report back to New York immediately. That the ruling of the California parole authorities was based on no other reason than that Erickson, who for some time had been in New York, found employment with a workers’ organization was made apparent through the fact the New York Par- ole Board ruled that his going to Buffalo to work for the LL.D. was within his rights, and not in viola- tion of the parole requirements. William L, Patterson, national sec- offensive that has raged | “1°. retaty of the International Labor De- fense immediately has written to. E. H. Whyte, Chief Parole Officer at San Francisco, demanding Erickson Officials Hound Paroled Prisoner Working for [LD fice,’ Patterson said in reply to the order for Erickson to leave his em- ployment and return to New York. “In this we see but a continuous hounding of Erickson whose only crime was that he fought for the in- terest of his fellow workers in Im- perial Valley.” After demanding Erickson be no longer molested, Patterson wrote: “The failure of the parole depart- ment to comply with this request will compel us to undertake vigorous legal action that will be backed by public opinion of thousands of work- ers and liberal minded people who in the past compelled the authorities of California to release their strangle- hold upon the Imperial Valley pris- oners.”” 14 Anti-Fascists On Trial Tuesday, Mass ’ Protest Meet Tonight NEW YORK.—Fourteen workers, men and women, go on trial tomor- row at the 43rd St. and 4th Ave. Court, Brooklyn, for © protesting against German Fascism when Weide- mann, Nazi envoy to the Chicago World Fair, arrived in this country be left free to pursue his duties in| May 25 action of the workers to smash the industrial slave bill, which legalizes and | his new job without further molesta- “We wish to submit pro- West: agetnes this aetion af pour ef 4200. 1ath ky The Ella May Branch of the In- a jone per cent tax on the declared | meeting with determined opposition | vaiue of all corporations, the appli-| from realty and auto groups, who cation of a five per cent tax on all/ fear that it will hurt their business. dividend payments at the source, |If this opposition is strong enough, The gasoline tax is expected to} the city will be forced to raise the! bring in an additional $92,000,000 2 | taxes in some other way, becatise the year. It is paid directly er indirectly | bankers’ extension of the $236,000,000 by small consumers. j loans is conditions by the guarantee The Hoover excise taxes on amuse- | of increased city income. | | CITY EDITION spondence and Special Articles on Transportation Workers orkers Corre- probably showers; light Price 3 Cents ‘ADMITTING FUTILITY OF WORLD PARLEY, POWERS ARE TAXING WAR MOVES Lendon Conference Wi Il Be the Scene of New Clashes Between England ard V, 5. 15 P NEW YOR at Londen complete pessimisr scribed by H as one of ‘ will ial opinion can ed from a state Secretary “It would se: to lead people to feel is going to be transf conference. To raise e: high is to d ourse certain defeat.” As of Ameri be antic | ican im) lalism in an a tack wi ut quarter, m: every trade apon in external trade, and combining this with a policy of intensifying the domestic market from foreign trade, was again repe: y Moley Expect Explosion On Debts In Paris, too, the blackest pessim- ism rules official circle: Possibility of reaping any definite ad- vantages from the World Confe: e. It is generally er Cent Surtax on Of France to Depreci shutting off of the| vel as to the) j ments, redios, electricity. perfumes, | ete., which cost the consumers over $500,000,000 a year were extended for | another year to 1935. To Avoid Surtaxes. Throughout the entire discussions | on taxes, both “Roosevelt and Con- | gress made it absolutely clear that | they wished to avoid, at all costs, any increase in the surtaxes on large in- comes. It is for this reason, that the taxes | | on dividend income will be collected | at the source, rather than from the income of those who receive the divi- | dends. | In this way, the present tax on | dividends is, in reality, a kind of temporary excise tax, rather than a real income tax. The sponsors of these taxes have admitted that their purpose was to avoid making the divi- dend tax @ permanent income tax. A Military Public Works Program. The public works program, for which the ‘new financing has been passed, contains generous provisions for the Army and Navy. Within sixty days after the bill becomes law, $230,- 000,000 naval construction program will be begun with funds taken from the public works funds. The bill de- fines the building of naval vessels, navy yards, army bases, etc., as “pub- lic works”. Meanwhile, the House passed in record time the Fourth Deficiency | Appropriation Bill which provides for | all the expenditures necessary for the various Roosevelt projects for the coming year. It is significant that this appropri- ation provides $50,000,000 for the re- building and improving of certain parts of the Muscle Shoals dam. | ‘The Muscle Shoals dam, built dur- | ing the world war for the manufac- | ture of chemicals necessary in munitions and explosives industrics, is one of the largest producers of ni- trogenous products in the world, This gives it immense war-time signifi- cance. Cut Veterans $367,000,000. The Conference Committee of both Houses accepted. Roosevelt's ‘“‘com- promise pian” with regard to the cuts in veterans’ compensation. The original Roosevelt proposals provided for a cut of over $467,000,000 in pay- ments to veterans as compensation for disabilities, After some opposition in the House and Senate, the committee reduced the cuts to about $367,000,000. De- spite the so-called “opposition” to the veterans cuts in Congress, the bulk of Roosevelt's “economy program” at the expense of the veterans will be enacted into law as soon as the Senate accepts the recommendations of the Conference Committee. net Hour Strike in Texas ed there that! There is increasing talk of more! the Win Demands After 2} DALLAS, Tex., June 11—A spon-| sharp wage-cuts for city school teach- ers and other civil service employes. | Paid $14,000,000 to Bankers. | The city paid out $14,000,000 today, | and will shortly pay out an almost equal amount, The loans have been extended until Dec. 11. At that time, the city will again be faced with another budget “crisis.” ‘The bankers’ group is headed by Winthrop Aldrich, a Rockefeller} agent, and Frank Polk, a Morgan agent. | ‘There will be an open hearing on the new auto taxes on Monday. | N.Y. TOILERS HIT | ITALIAN FASCIST | TERROR REGIME NEW YORK.—Demanding the re- lease of Antonio Gramsci, Italian Communist Leader and Pertini, soci-| alist lawyer, over two hundred work- | ers marched, shouting their demands, by the Italian consulate Saturday. The consulate was locked and the consul absent, with a heavy police! guard outside and fifty police re- serves hidden inside the consulate. A delegation of the marchers was de- nied entrance. Two fascist in full uniform had} been stationed on the steps..of the | consulate, for several hours fence the demonstrators arrived.. They fled} when the march neared the consul- ate. The marchers shouted “Down With Hitler and Horthy” in marching through workingclass sections popu- lated by German and Hungarian workers. Workers on the sidewalks and in the houses applauded the slogans of the marchers. ‘ { After passing the consulate, the) marchers returned to their starting | point, ten blocks away j June 24 will be observed throughout | the country as National Anti-Fascist day, with demonstrations taking| place in all important cities, demand- | ing the cessation of fascist terror in Germany, Italy, Poland, etc. The march was led by the Italian) United Front Anti-Fascist Action} committee and included the American | section of the Italian Socialist Party, | the Italian Republican Club of Tuckahoe, several Italian Workers’ Clubs and workers of the Communist Party and other workingclass organi- zations, 500 STRIKE IN PLUSH FACTORY PHILADELPHIA, Penn., June 11.— 500 workers of the Collins and Aik- taneous two-hour strike of 100 Dallas relief workers was caused by hot weather. The men, working in a rock quarry under a blazing.eun, quit early, but by marching oui together, ea | they were able to force foremen to man mjll in West Philadelphia are out on strike against a wage cut. ‘The company officials demanded that the weavers handle four double looms | but also of E: Conference will open with a major explosion on the question of deots, followed by nationalistic reper-| cussions both in Europe and here. The prevailing note of the entire capitalist p: , not only of America, gland, France, and the other great powers, is one of fj simism as to the outcome of the Cor ference, coupled with a fear, that the conflicts and agonisms bet the powers, which the Conference will emp} bring into the open, a to a head, m: tedly disasterous re: Anglo-American Clash Is Basic The only thing on which all are! agreed is that the Conference will be the scene of large-scale clashes be- tween the great powers. The United] States, with its ruthless program for the economic disarmament of trade rivals, for forcing its way into the markets from which it is now excluded or into which it can only enter under disadvantageous condi-| tions, will find itself in the sharpest | | (CONTINUED ON PAGE 4) | | taxes was also rej its} * Goods Is Rep! om t in an a Senate Will Vots on Amendments Monday; Licensing Limited n n WASHINGTON, ll “Indu: been acted upo repr and ed for ns to be accepted by the fore 11 goes to Roosevelt for Committee of Congress nas It now Senate Several changes were made, while other prop S Were re- jected. LaFollettes proposal that all come tax payments be m: 1 was modified to give onl; dent the power to n ments public at Reject Taxing of Bonds The Clark ai tax-exempt bon mendment to The licensing feature of the bill whereby Roosevelt can refuse to li- cense any ¢ his approv s ion inally to have applied for Wo years was changed to apply for only one year. The bill will be acted upon by the Senate some time on Monday, when the Senate meets again, N. Y. Workers Protesting Fascism Italian and American workers marching to the demonstration before the Italian Consulate in New York to demand the release of working class prisoners in Italy and denouncing Italian and German fascism. NEW YORK.—Attempts of police to turn off fire hydrants opened by workingclass children and youth to bathe in during the hot spell, the only facilities they have to cool off, met with stiff resistance from the youth in all parts of the city Satur- day and Sunday. | Some 400 youngsters besieged the | West 47th Street police station FPri- day night shouting their protests against police interference with their | attempts to keep cool and the arrest of four of the youth. each, at piece rates less than the amount paid when weavers were re-| tights, underwear, were splashing in quired to handle only one loom. The | the water when the police ordered The children, in bathing suits, Kids Drench Cops in Fight to Keep Hydrants Running ing off the water, they were drenched and kept away from the fire-plug by the youth until police reinforcements arrived. Youth in Harlem, East Side, Down- town and other parts of New York had the sare experience. Cops in soaked uniforms learned that the children will not give up the only facility they have for kceping cool without resistance. The Young Pioneers, leaders of the working-class children, demand: 1. Erection of recreational centers throughout the city; 2. Installment of showers on sal for