The Daily Worker Newspaper, June 23, 1933, Page 1

A Complete Expose of the In- dustrial Recovery Bill Begins in Saturday’s Daily Worker Give This Paper to a Friend After You Have Finished Reading It! Get Him to Subscribe! wos & 8 va Central n Or ist Party U.S.A. (Section of the Communist International ) THE WEA’ — = —- Sbatered as recend-eiass metter of the Poot Office st New York, N. ¥., wmder the Act of March 8, 1970, CITY EDITION Vol. X, No. 150 _>~ NEW YORK, FRIDAY, JUNE 23, 1933 LL.D. WINS NEW TRIAL FOR PATTERSON, SCOTTSBORO BOY ble| AM “RULING BY JUDGE SHOWS COLLAPSE OF FRAME-UP AGAINST NEGRO YOUTHS “Victoria Price Evidence Not Corroberated,” Is Basis of Horton’s Decision Mass Fight Compels Judge to Reverse Former Decision; Labor Defense Hails Victory DECLARATION OF TRADE WAR FOR WORLD MARKETS | London Conference Told No Attempt Will Be Made | to Peg the Dollar in Near Future j The P-tilding “Boom” Bubble Only three days ago the well-oiled Roosevelt propaganda machinery began to issue again large clouds of prosperity ballyhoo. ‘This time it was the supposed 128 per cent increase in build- ing which was hailed as the ever-elusive “turn” in the crisis of capital- ism. In the “Daily” of two days ago we showed how the very figures upon which the Roosevelt ballyhoo is based, give the lie to the cheery talk of returning prosperity. Now, a leading capitalist statistician, A. L. Jackson, Vice-President of Economics Statistics, Inc., states that figures for May have been sub- | ject, to “erroneous interpretation”. He points out that more than 75 per- | cent of the so-called increase was due to an increase in the estimated | j costs of certain public works in San Francisco, not to any real increase | | in the construction of actual residential or commercial building. And the official Department of Commerce figures, showing an ac- tual decrease of 16 per cent in actual building construction for the month | of May, expose what a shabby distortion of the truth are the prosperity ) stories of Roosevelt's publicity agents. Frane Breaks on New York Market at News that | France Will Immediately Go Off Gold Standard BULLETIN. NEW YORK, June 22.—Unconfirmed reports that France was pian- | ning immediate abandoment of the gold standard brought a deluge of selling as the stock exchange closed today. The dollar was weakened | ait day in relation to other currencies, although the fall in the franc | | cansed the dollar to turn upward from the earlier low im relation to | Why Moley Speeds to London’ “™“""” ce LONDON, June 22.—An open declaration of a trade war on a scale un- | kes iw behind the sudden dash of the leading lobe of the “brain” | equaled in the world struggle for markets waa made by the American del- | trust, Raymond Moley, assistant secretary of state to direct the Amer- egation at the world economic conference today. The American delegation | fean delegation at the London Conference? How does it come about acted on coded instructions received from the United States. Immediately | ‘hat Bernard Baruch, the liaison officer between the House of Morgan I. L,. D. Calls for Broader Protest Movement | to Force Release of 9 Framed Boys sills . DECATUR, Alabama, June 22.—Judge James H. Hortom, who on April 17 sentenced to death Haywood Patterson, first of the framed-up Scottsboro boys to be retried, today granted a new trial for the Negro boy on the ground that his second conviction was based on “insufficient evidence”. Patterson ; Was not brought from the Jefferson County jail in Birming- | ham to be present at the hear-?— - This ie Camp Heuberg, where the Nazi regime has imprisoned at hard labor 3,000 working class leaders, The guards have orders to shoot any- one approaching the barbed wire barriers, and frequently do shoot. The Prisoners are subjected to brutal discipline. are not permitted to smoke, nor to talk to the guards. after receiving the .essage from Roosevelt they went into session, meeting ®far into the night to formulate their : und the Wilson regime, this astute imperialist banker who helped create 48000 war multi-millionaires, not overlooking himself, at the same time thecomes the “unofficial president” of the United States. Events had weached such 2 pass at the conference, its rupture ap- peared so imminent, the clash between the various big powers so clear (especially between the United States and Britain, behind which, with their own contradictions stand France, Italy and the other European powers) that if became necessary to send Roosevelt's main whip to lash but the fundamental program of Wall Street in the present struggk. ‘The hitb of the controversy is the struggle for world markets by the feeperialiet powers gathered at London. Around the discussion of stabili- ‘wation of ourrency goes on the struggle for markets. The financial struc- ture of world capitalism has been broken down and distorted by the ‘erisis. The currency stabilization struggle at the conference touches the eentral nerve of the whole neurotic structure of world capitalism and resulted in the jitters that crept over the American delegation. Each power wants to stabilize the others currency at a disadvantage to its com- petitor in the struggle-for markets, and at an advantage to itself. It is similar, and a courter-part to the struggle around armaments. Fach capitalist, power wants to reduce the armaments of its competitor while arming 10 greater advantage itself. ” * * With the American program of inflation, forced trustification, and the concerted drive for world markets, the European powers know it is useless even to enter the second stage of conflict and dickering around tariffs. So long as England maintains its present level of currency (though it is already off the gold standard), and so long as France, Belgium, Switzerland, Holland retain a gold currency, no matter what the tariffs, the power given to Roosevelt to continue inflation would completely un- dermine any agreements, even if any were arrived at. But through its policy of inflation it could cut tariffs, and with the lower prices it would gain on the world market, and with Roosevelt's dictatorial power constantly to lower these world prices, it could smash through any tariff arrangement. The struggle for world markets which was intensified as a result of the crisis, is made a thousand-fold more bitter with the wrecking of the currency stabilization of world capitalism. Each struggles for the greatest advantage, and Moley is rushing into the breach because the clash has become so heightened. The policy of American imperialism is not to relinquish its present advantage of inflation, with the future promising more for two main reasons. First it is not in the interest of Wall Streets internal program of a smashing attack against the workers’ living standards and second, it is not in line with its international program in the drive for world markets. Though Moley may be speeding across the Atlantic, and Roosevelt may be pleasantly tacking the Amberjack II, the policy of Wall Street has already been clearly written down by the present dclegation. It is that stabilization has no place at the conference, except as a bargaining point. “The fact is,” said the latest statement of the delegation, ‘this was never the concern of the delegation.” This is just an attempt to cover the fact that they were caught napping and had made some con- cessions on stabilization which Woodin, Roosevelt, Baruch and Moley were forced to spike and which accounted for Moley’s departure. The line that Moley will follow is officially stated to be that “The American government feels that its efforts to raise prices are the most important contribution it can make, and that anything that would in- terfere with those efforts and possibly cause a violent price recession would harm the conference...” , ‘That spel!s war at home, sharper class war against the American workers, and the drive to war among the imperialists for markets, colo- nies, international financial dominance. “Not Considered Essential” In their demagogic support of the Roosevelt attack on the stand- ards of life of the mass%s embodied in the “industrial recovery” act the officials of the American Federetion of Labor told us that the principle of collective bargaining would be established everywhere. Now comes. the military satrap and open shop employer, Hugh §. Johnson, ad- ministrator of the act, who gives the lie to this claim. In the “basic code” for all industries Johnson says: “Basic cedes -coniaining provisions respecting maximum hours of lebor, minimum rates of pay and other conditions of employment, which are in themselves satisfactory, will oe subject to approval, although such conditions may not have heen arrived at by collective bargaining.” ‘Thus the demagogy about collective bargaining gives way to the practical proposals that elimina’: even the pretense to collective bargain WEALTHY JURORS ACQUIT. MITCHELL Bankers Delighted As Decision SetsPrecedent for Tax Evasions NEW YORK, June 22.—A jury of well-to-do contractors and business men today acquitted Charles FE. Mit- chell, former president of the Na- tional City Bank, of the charge of having defrauded the United States government of income taxes. The de- cision came after 25 hours of deliber- ation. Tt was clearly shown that Mit- chell had “sold” stock to his. wife in order te be able to show @: “loss” of $666,666. It was. also shown that there was a “mistake” in the bankers books which turned the fig- ure 3,240,000 into 240,000 by tho omission of the figure “3”, It was shown that Mitchell took a “loss” of $758,000 on a sale of stock to his friend, W. D. Thornton. The total “losses” from these sales permitted Mitchell to escape paying income taxes on an income of over $3,500,000 for the two years following the stock crash. Mitchell admitted all this. It is now admitted that the Mit- chell decision will make it difficult to convict hundreds of millionaires who also escaped income taxes by establishing “losses” \ through stock sales to friends or their families. Mitchell was head of the National City Bank, which, investigation dis- closed, caused its customers to lose millions of dollars in fraudulent transactions. For example, the Na- tional City Bank ,sold $90,000,000 of Peruvian bonds knowing that the Peruvian government was bankrupt at the time the bonds were sold. ‘The officials of the National City Bank used the bank’s deposit funds as security for their own stock specu- lations. Neither Mitchell nor the bank’s officers have been indicted for any of these practices, although, legally, they are criminal offenses. that Mitchell established these “loss- es” to saye the “honor of his em- ployees” and to keep up the market price of the Bank's stock so that the employees who had bought the stock | at enormous stock-boom prices would Mitchell’s attorney, Steuer, claimed’ proposals. The statement. bluntly stated that “stabilization was never an affair of the delegation” and that any at- tempt to peg currency at a given level was “untimely.” Continuing the statement said: “The reason why it is consid- ered untimely is because the Am- erican government feels that its important contribution it can make and that anything that would interfere with those efforts recession would harm the confer- ence more than the lack of an im- mediate agreement for temporary stabilisation.” This is clearly seen as continua- tion of the policy of the Roosevelt administration of raising prices at home, and beating down the dollar in relation to other currencies so it can dump its surpluses on the world market at cut-throat prices. Sees Conference That the journey of Professor Raymond T. Moley, personal repre- sentative of President Roosevelt, is to further carry forward this defiant challenge of American imperialism, is now clear to all. Today's stand of the American delegation was met with rage by delegates of other countries, espe- cially France, who realize that the franc is endangered and it is only a question of a short time when France will be forced to abandon the gold standard as a measure of self- defense if it is to hold any place in the world market. The delegates all realize that the conference will remain in a crippled condition and probably adjourn soon after Moley’s arrival. Dollar Sinks to New Low. The reaction of the dollar on all international money markets was swift and its descent rapid. With- in two hours it had gone to $4.24 to the pound, a record price for the pound since England abandoned the gold standard in 1931. England's currency then depreciated to about “$3.25, which gave England an advan- tage in the world market. Much of this advantage has already been wiped out. If the dollar sinks to $4.86 it will completely wipe out all such gains for Britain. not suffer. It was shown that Mit- chell was aware that his transactions with his wife could not in any way affect the market price of the stock. and possibly cause a violent price | efforts to raise prices are the most | 'Demonstrations Throu. \ June 24 Against of the German Communist Party, are i T.U.U.L. Manifesto. 4 The Trade Union Unity League} | has issued a manifesto signed by | William 2%. Poster, calling on all re~ | vyolutionary unions “and opposition? union groups to support to their ut- | most the campaign launched by the National Committee to Aid the Vic-| tims ‘of German Fascism, and to un- ite in participation in the demon- strations tomorrow against German | Fascism. | ‘The huge New York demonstration | in Union Square, preceded by a) march from Madison Square at 12) noon, the rallying point of the ea Fascist organizations, will be ad-| | dressed by Robert Minor for the| Communist Party, Erna Stams for; the German United Front, Ben Gold | | for the Needle Trades Workers In- | dustrial Union, A. J. Muste for the Cc. P. L, A, and other prominent | speakers. A. Wagenknecht, of the) National Committee to Aid the Vic- tims of German Fascism will be chairman of the mass meeting. | The Yonkers demonstration on | National Anti-Fascist Day will | | held at Warburton and Dock Sts., at 2 p. m., under the auspices of the Yonkers Committee to Aid the Vic- tims of German Fascism, including; the Socialist Party, Workmen's Cir- | cle, Communist Party, the Y.P.S.L.,| and the Y.C.L. the League of Strug- gle for Human Rights, and many} other organizations. N.Y. MOBILIZATION POINTS FOR TOMORROW'S DEMONSTRATION MADISON SQUARE, 12 NOON Unorganized workers, fall in | with the Trade Union of their | trade or Unemployed Council of | their’ neighborhood. ' U.S. Workers Fulfill . Anti-Fasc to Zetkin Tomorrow ist Pledge ghout the Nation on German Fascism | NEW YORK, June 22.—As the ashes of Clara Zetkin, veteran leader George W. Chamlee of Chattanooga borne to Red Square in Moscow, the workers of the United States, pledging to continue the class struggle to @2d Osmond K. Fraenkel of New which she devoted her life, are preparing fot a giant nation-wide anti- fascist demonstration tomorrow, June 24, National Anti-Fascist D: The march will leave Madison Square, from 27th Street along Madison Avenue to 23rd Street, west along 23rd Street to Seventh Avenue, south along Seventh Ave- nue to 14th Street, to Fourth Ave- nue and into Union Square. ORDER OF ORGANIZATIONS Column 1, 27th Street, east of Madison—United Front Anti-Fas- cist organizations: German Anti- Fascist Action Committeee, Ital- ian United Front for Anti-Fascist Action, Jewish Workers and Peo- ples’ Committee Against Fascism and Pogroms, Hungarian Anti- Fascist League, Balkan Anti-Fas- cist Alliance, National and City Committees to Aid Victims Fascism. Column 2, 26th Street, cast of Madison—Communist Party, Sec- tions 1, 2, 4, and 10; trade unions: Needle Workers, Marine, Building, Shoe, Food, Metal, Laundry, Fur- niture, Labor Sports, Office Work- ers, Teachers, Medical, and all Unemployed Councils and Block Organizations. Column 3, 25th Street, east of Madison—Communist Party Sec- tions 6, 7, 8; I. W. 0.; LL. D.; Workers Ex-Servicemen’s League; F. S$. U.; Workers’ Children’s Schools, Icor, Women’s Counc’ W. I. R.; Professional and all Cal- tural Groups, Anti-Imperialist League. Column 4, 24th Street, east of Madison—Communist Party Sec- ‘ tions 5, 11, 15, Young Communist League, all Youth Organizations, all Workers’ Clubs, Students, all Lnguage Organizations, and mis- cellaneous groups. ing. Horton read from a prepared | | document, in which he said that “No! | defendant should be convicted in a| | Prosecution for assault when the evi-| | dence of the prosecutrix bears evi-| | dence of unreliability. Under the circumstances it was necessary to have corroboration of Yictor’a Price’s testimony, and there was no such corroboration. Her testimony was in almost square: conflict with that of the examining doctors of Scotts- boro.” The decision was rendered after chief Scottsboro defense counsel York, appeared in court to demand a ie Oat Ala, 4 . new tiral for Patterson. # m That this tremendous victory in Feel forcing the setting aside of the ver- “ ordering of a new trial Patterson is a direct | @ ‘.oug likelihood of the authori, | consequence of. the J. L. .D. expose | ties following a policy of dragging of this hideous frame-up, is proven|OUt the proceedings indefinitely. by the fact that when the jury, Immediately following the decision brought in the verdict against Pat-| in the Haywood Patterson case, the terson, Judge Horton refused the! authorities announced that the hear- defense motion to dismiss the case.| ings in Juvenile Court of Eugene Judge Horton did not set the date| Williams and Roy Wright, which |for the new trial. Just when this; Were to have been held tomorrow, new trial will be ordered, in view of | ave been indefinitely postponed. the admitted collapse of the prose-| va | cution: case as evidenced by Judge} | 1 L. D. Hails Victory. Horton's decision, is not known. NEW YORK.— “The decision by With the nine Scottsboro boys con-| Judge James E. Horton at Athens, fined in a cage in the Jefferson} | County prison in Birmingham, there! (CONTINUED ON PAGE THREE) 700,000 IN GRANDIOSE TRIBUTE TO ZETKIN IN MOSCOW RED SQUARE | By N. BUCHWALD | (Moscow Correspondent of the | | roshilov, Kalinin, Katayama, Krup< |skaya, Marty, Piatniteky, Yaroslay- | sky, Heckert, Bela Kun, Knorin, ané fe remains | hers. Brief speeches were made ;from the top of Lenin's mausoleum by Katayama, Marty, Heckert, Molo- tov and Krupskaya. Red Square was filled to overfiow- |ing with the vanguard ranks of the Procession. Streets in every direc- tion were covered for- blocks with hundreds of thousands of workers Daily Worker) MOSCOW, June 22,—Thi of Clara Zetkin were laid at rest on | Red Square after a most impressive |demonstration of 700,000 Moscow | workers. | ‘The pallbearers included outstand- | ing leaders of the world revolution- ary movement: Stalin, Molotov, Vo- By MILTON HOWARD With eager loyalty the labor buro- | crats of the A. F. of L, are rushing to the aid of the imperialist Roose- velt. government in its attempt to fasten upon the American working class the shackles of the “National Industry Recovery Bill.” They have just issued a widely- publicized statement asserting that sinee March, the month of Roose- velt’s inauguration, over 1,629,000 workers have found jobs. They state that the steady and continuous growth in the army of unemployed during the last four years has at last} come to an end, and that workers are now beginning to return to work. This statement is timed to appear at the, very moment when the em- ~}ployers are organizing monopoly groups to cut down employment by speed-up, to slash wages under the guise of minimum wage contracts, and to stagger employment by the introduction of the 30-hour week. It is timed to give the illusion of fast returning prosperity so as to quict the resistance of the workers to the latest attack on their living stan- dards. Deliberately Distorted But what is actually happening? Is the steadity rising ocean of un- jemployment beginning to recede? | Let us see. In the first place, the figures of the A. F. of L. have always been notoriously biased im favor of the bosses. Whenever possible, the stat- isticians of the. A. F. of L. have always tried to support the position of the employers. A notorious exam- ple is in the matter of unemployment figures. . At a time wheén the most conser- vative of capitalist statisticians ad- mitted the existence of at least 17,000,000 unemployed workers, at a time when the 17,000,000 estimate of the Labor Research Association was confirmed by a leading capitalist eco- nomic organization the Alexander Hamilton Institute, the A. F. of L. came to the support of the Hoover and Roosevelt governmenis by in- sisting that there were only 12,000,- 000 unemployed. The latest report of the A. F. of L. faithfully continues this policy of assisting the capitalist government and the bosses against the workers. The latest estimates of the A. F. of L. are wholly distorted to hide the real state of affairs. They give no sources for their in- formation. The statement is fall of vague phras » such as “it is re- ported,” “or ||How Steel Mill TI || Employment Is | Increased A.F.L. Joins ‘‘Prosperity” Drive With Fake F igures | Federation Leaders Support Roosevelt Act’ in Fight Against Unemployment Insurance;AssistWar Preparations | win « ) their figures include the forced, labor , recruits of the reforestation camps as being “employed” workers, There are at least 300,000 of such “jobs.” The A. F. of L. estimates also in- clude the workers who will be hired | carrying black draped banners with | orchestras playing solemn revolution- ~ | ary music, A hush feil over the square when | the pallbearers appeared carrying a canopy-shaped bier, flower-laden, small urn containing the 14-% * | ashes tions there would be several million | unemployed, so that all the jobless | would not have to be eliminated in | order to restore normal prosperity.” This is an admission that even “nor- | mal prosperity” will not restore mil- A military guard from the Red Army lined the route from the Hall jof Columns to Red Square, adding to the solemnity of the scene. Resting the bier near Lenin’s mau- ne soleum, the pallbearers with red and ni to build battleships and bombing planes in accordance with velt’s gigantic naval construction program. Even the Seeretary of the By a Worker Correspondent YORKVILLE, 0, — The Wheeling Steel is hiring Roose- | lions of unemployed to work. since this “normal prosperity” will never return, the statement is really an admission that the majority of more workers every day and every day it is sending men already on the payroll home. | Wages are down so low that | even the 10 per cent increase which the steel trust pro- mises won't make it possible to meet expenses. expected.” No actual, reliable sources are given. The entire esti- | mate must be taken solely on the | word of the A. F. of 1. You can’t check on their figures. You've got to swallow them. Furthermore, the A. F. of L. has | ‘never included in its estimates the | | millions of jobless agricultural work- ers, laborers, professional workers, ete. And to finally reveal the deliberate “Ht | ie said,” er” “it ts | distortion of the A. B. of L. eptimete,| which states, Navy, Swanson, has admitted that] the present army of 17,000,000 job- not more than 50,000 workers will be | less will never again find work under hired in this way. Yet the labor] capitalism. bureaucrats of the A, F. of L. not} By stating that the “increase” in only whoop with glee at the return | employment does not necessarily of prosperity by the “new jobs” thus} mean an increase in buying power, created, but in this way actually give| the A. F. of L. indirectly admits that support to the whole naval construc-| whatever new jobs have been cre- tion program. ated have been at sharply reduced The report makes much of the tact | wages. that a few thousand smail politicians| Thus, the A. F. of L. shouting will get jobs as inspectors in the, about the final stop to the growth of new acreage-reducing program of| unemployment: is nothing but the the Roosevelt administration. This|sales talk of hired salesmen for is also hailed as the return of pros-| Roosevelt’s “Industrial Recovery perit;y, as the end of the capitalist) Act. urse of unemployment! It is really But ng that the A. F. of L, does! workers are still not hvil the hiring of life-savers for! still starving. the summer beaches as the end of! Temporary Seasonal Rise unemployment! It is true that there has been some Permanent Unemployment re-hiring of workers in certain in- An extremely significant part of j dustries, such as the anto and textile the A. F. of 1, report is 2 section —— noomal condi] ~ OUITRCUED OW Paes & ~~ the millions of unemployed jobless. They are black armbands mounted the plat- form and spoke the last words of farewell to the leader who fought the most valiant fight for half a cen- tury on behalf of the world proleta- ‘ riat. Over the Kremlin the red flag with the hammer and sickle played in the breeze, mutely eloquent, telling the dead veteran her fight had not been in vain. Airplanes flew overhead, as if their motors’ purr pledged the de- fense of the Socialist Fatherland as staunchly as Clara Zetkin had fought for its triumph. In opening the memorial meeting, Katayama said: “Our Clara has al- ways been in the foremost ranks of the struggle against imperialism and for the establishment of the Social- ist society, the proletarian revolution. |The working class will never forget | her relentiess struggle against im- | perialism and the traitors of the | Second International during the War. “Clara is no jonger with us, but her Will be taken by millions place of fighters against fasciem and the [gprs he eon oa eae