The Daily Worker Newspaper, June 28, 1933, Page 1

“Daily” Salesmen and Distrib- utors. Send Us~ Accounts of Your Work! See “Day by Day” Column on Page Two! ‘(Section of the Conemunist International) ist Party U.S.A. Subscribers Should Be Visited by Speciall; Selected Workers to See If Their Service Is Satisfactory ! NEW YORK, WEDNESDAY, JUNE 28, 1933 is 2 very pretty—and profitable—game that the Wall Street: bankers headed by Rockefelier's Chase National Bank, with the cooperation of the City government, are playing with the people of New York City. ‘The capitalist press is filled with the news that John D, and his equally crafty son, are buying large amounts of the City’s new “baby bonds,” the returns of which will go to pay off the money owed to the bankers, These bonds are tax-exempt and pay a high interest rate. just look at what is happening. Who is demanding the pay- enormous interest, payments from the City? Who is demand~- ing that the City slash all relief, raise new taxes, increase subway fares, and cut Civil Service employee's wages? Why, it is the Wall Street bankers headed by the Rockefellers and their bank, the Chase National. “And now, the Rockefellers buy City bonds on which they wiil collect more fat interest and be tax-exempt in the bargain, so that the City will be able to meet the payments to them on their other bonds! The whole scheme, therefore, is not only exceedingly profitable for the Rockefellers, but it has the virtue of enticing the small home-owners to sink whatever savings they have left into the “baby bonds,” the pro- ceeds of which the City will use fo pay off the $440,000,000 due to the Rockefellers and other bankers on December 11 What is behind all this maneuvering of the City? There is only one purpose—io wring in one way or another from the suffering masses of the City, the $30,000,000 interest payment which the City has pledged to raise for the bankers within the next few months. The capitalist City government has refused to tax the millions of tax exempt properties—largely owned by the Rockefellers! The City has refused to touch one cent of the enormous hoards lying in the coffers of the rich corporations of New York. The Tammany City government has refused to levy any direct tax on the wealth of the rich. It is a program of Sales Taxes to be paid by the poorcst consumers. @ program of wage cuts, murderous slashes in relief payments, and in- crease in subway fares that the City proposes—all to pay the bankers. Against this program the workers demand an immediate 10 per cent capital levy on all large wealth—an immediate increase in relief to be paid for from heavy taxes on the rich, from drastic reductions in the fat salaries of the Tammany officials. The bankers must pay—this is the demand 6f the workers of New York City. Now ment of al lei ie es | a Norman’s Grief : NON ‘THOMAS is greatly grieved, so grieved in fact that he spite- fully refuses to be a candidate for Mayor of New York City. The particular cause of his grief are the “fusionists’—those democrats, re- publicans, liberals, etc. who have been prevented by Tammany Hall from sharing in the loot of the city treasury. But why is Norman so worked up? Only because he was not let in on the deal! “If the fusionists meant business,’ says this socialist spokesman, “why didn’t they take up fusion with the Socialists instead of the Republicans,” In other words, a united front of the “outs,” from sooth Mr. Thomas's wrath. He might then even withdraw his objection to being a candidate. It would not be a bad idea for the workers to remember on election day this willingness of the Socialists to set up such an unprincipled anti- working class alHance. A Confusion of Pockets eee time the grain and stock speculators pocket a few millions on the speculative rise in cotton and wheat they announce that the farmers have added millions to thetr income. The capitalist press reports that wheat hit 91 a bushel and cotton gained $4 a bale, They explain that “soaring markets of two days put $125,000,000 in U. 8. farmer’s pockets.” This is a confusion of pockets. Does it mean that the great mass of poor farmers, sharecroppers and middle farmers in the United States actually received $1 a bushel for their wheat, or that any share cropper in the South has seen one cent of the rise in cotton? Not at all! The grain gamblers who hold the wheat of last year coined some money on the speculative rise. The big cotton bankers of the South raked in some new profits. The rich farm- ers who have thousands of acres, who can afford to hold their crops, who can cut down production and still have plenty to sell, will benefit. These farmers are also grain speculators and buy up the crops of the smaller farmers. But not the big bulk of the farmers. * . * * , the speculative rise, if it keeps up long enough will mean a small rise of prices paid to farmers. But will the farmers get it? How far will even $125,000,000 go toward paying off $6,000,000,000 in mortgages that is draining the life blood from the poor and middle farmers. Part of the “rise” is due to the burning up of the wheat crops because of the unseasonal hot weather. The farmers have less wheat to sell. That part of the huge surplus of over 300,000,000 bushels in the hands of the Speculators and the government, for which they find a market, will be sold first on this rise. Then when the farmer gets to ‘selling his de- Pleted crop, not at $1, but more likely at 6) cents or less, there will be @ line of bill collectors longer than the shocks of wheat he has har- vested. First will come the mortgage collector ofthe big insurance -* companies, then will come the farm implement installment. collector, the tax collector (for back and current taxes), and then will come the higher prices that Roosevelt will create through his inflation and mono- poly price raising schemes. at The grain and cotton exchange are not the farmers. The farmer '\ has a charred field to harvest and a host of banker crows to feed. \ I For Grease, Not for Food esto’ of British and American unemployed will feel a little hungrier ™ when they read that 225,000 head of sheep have been slaughtered in Chile because the British market for them was closed by higher tariffs. ‘The 225,000 sheep will be killed off to make tallow, grease, for candles or other non-edible goods. Ordinarily these sheep are exported to Eng- Jand, but to keep up prices, less will be imported. Destruction of food while millions slarve has been one of the most outstanding features of the crisis. Roosevelt has ordered the destruc- tion of one-quarter of the present cotton crop. Because there are too many shirts being worn? Let the 17,000,000 unemployed answer that. It wants higher prices for the cotton speculators and higher prices so that the textile manufacturers can have an excuse for still - higher prices—higher living costs for the workers. In Kansas wheat is burned for fuel. In Brazil, the government levied a tax on the masses to provide a fund to pay for the transportation and cost of burning up millions of pounds of coffee destroyed to keep up prices. WOES Ng ap is the logic of capitalism, plenty and destruction meaning hunger and death for the millions of unemployed, _ If this process will not destroy enough commodities, capitalism has another, more efficient method—war, in which workers will be destroyed along with commodities. ‘ ‘ In the Soviet Union the eontrary process goes on, Huge state stock breeding farms are set, up to tnotease the herds of stock to feed the “Baby Bonds” for Rockefeller| Wealthy | { | | | Insiders Tipped Off Before Detroit Bank Crash iJones, R. F. C. Chairman, Withdrew Funds; Wife of Senator Couzens Cleaned Out Her DETROIT, June 27.—At the iny Grand Jury, it was disclosed that on the day before the closing of the De-| Personal Account the Night Before vestigations now going on before the troit banks, millions of dollars were withdrawn by “insiders” who had been informed of the coming smash. BANKS COMMONLY FAKE STATEMENT, US. OFFICIAL SAYS | a0 a ‘Government Knew of) Bank Frauds Almost a 7 Year Before Prosec- | uting WASHINGTON, June 27.—The making of false entries in bank statements is a common practice. the Senate Banking and Finance | Committee was told by Nugent | Dodds, Assistant Attorney General | under Hooyer, and now of the De- partment of Justice. The Federal bank examinations are “desultory and innocuous,” he said, and didn’t mean | anything, This testimony was elicited from | Dodds during the course of the pres- | ent investigation now going on into the frauds committed by leading offi- cials of N. Y. Harriman bank. Government Delayed Prosecution Tt was brought out at the inquiry that the United States officials knew ,in July 1932 that Harriman, the president of the bank, was using the depositors’ funds for his own private spesulations. government decided to close its eyes to these criminal practices in “order te avert a bank crisis,” It was not un- til January of this year that the gov- ernment made public its information about the swindles going on in the Harriman bank. And it was not until March 14, that indictments were handed down. Frances Williamson, Vice-President | of the bank testified that he soli- cited new depositors accounts after | he knew of the fact that the ac- counts were being raided by the | bank's officials. How the government protects the powerful bankers was shown by the testimony of U. S. Attorney Medalle, who said that the “suggestion that he go slow on the Harriman prose- cutions came from the United States Treasury office. Dodds testified that it was not un- usual for Senators to ask that the Treasury go slow on the prosecution of bank officials caught mishandling funds. One of the members of the present investigating Committee, Se- nator Hastings of Delaware, admitted to indulging in this practice. Meanwhile the trial of Harriman has again been postponed indefi- nitely. ~Tt--was-shown that the} Two outstanding items of withdrawals came from banks in Houston, Texas, connected with Jesse H. Jones, now Chairman of the Reconstruttion Fi- nance Corporation. At the time of | the withdrawals, Jones was a mem- | ber of the Board of the Reconstruc- | tion Finance Corporation. It was also shown that the wife |of the present senator from Michi- | gan, Senator Couzens, also withdrew “all her personal account’? on the | night before the bank collapse. | Got Money After Banks Closed Later in the investigation, another | sensation was sprung when it was | testified by Herbert Wilkin, general |manager of the Guardian-National | Bank now bankrupt, that even after the Governor of the State had closed | the Detavit banks to the small de- | pesitors, over $4,000,000 in checks | were cashed for special persons with | influence. This is supposed to be a criminal offense. Tt was also shown that the banks in which Jones had personal inter- ests received loans of $47,000,000 from the R. F.C. Tn 1925, Jones, recently chosen by Roosevelt to be Chairman of the R. F. C., applied for. permission to sell $4,500,000 worth of securities. Al- sell only $1,000,000 worth, he actu- ally sold $2,000,000. All of these securities are now worthless. Later, the Prudence Company of New York, a company with which Jones has connections, got a loan of $35,000,000 from the R. F. C. Wil- kins charged that Jones and his as- sociates made enormous profits in all these deals, loading all their worth- less securities upon the R.F.C. Cs Fight for Auto Industry... J Behind the struggle for the control of the Detroit banks, which leaped into the open with the crash of the Detroit Guardign-National group, is the fight between the Ford Motor Co. and the General Motors Co., backed by Wall Street bankers, for the domination of the automobile in- dustry. Since 1928, General Motors has | pushed ahead to the dominating posi- tion in the industry, now controlling 40 per cent against Ford’s control of about 25 per cent, Ford's powerful cash position (his |latest statements show that his com- | pany has $303,000,000 in’ cash or its equivalent) makes it difficult for the Wall Street bankers to oust him. Senator Couzens of Michigan, whose fortune was built up through the growth of the Ford Motor Co., is a member of the Senate Banking and Finance Committee which re- cently investigated the Morgans. As the fight between the two pow- erful capitalist groups goes on, they both are instituting terrific speed-up among the auto workers in their ef- forts to strengthen their profits and their financial position, The fight between Wall Street and Ford is a fight as to who can reap the great- est profits from the workers in the auto industry, though he was given permission to} Textile Union Opposes Slave Code at Hearing | Johnson Opens First Attack on Workers Under Act | WASHINGTON, June 27.—A di ; gation of the National Textile W ers Union, headed by Ann Burla’ has arrived here and will demand the right to appear before the Thur: code of the textile bosses presenied to General Hugh S. Johnson under the industrial recovery (slavery) act. The union delegation will present the demands of the workers in op- position to the starvation wage leve! | proposed by the textile bosses, - The hearings opened with over | 1,000 present, mainly the | tives of the textile mill owners and | A. F. of L. officials, in the ‘Depart- ment of Commerce Auditorium. The textile code, setting the star- vation wage of $11 for the Northern textile workers and $10 for Southern workers, is the first to come up under the slavery act, and will set a prece- dent for the attack of the bosses in all other industries. That General Johnson opened the hear- ings by declaring that “This hear- ing is one of the most) momentous | occasions of its kind ever held.” (See on Page 2 article by Nat Kap- lan, general organizer of National | Textile Workers’ Union.) STRIKE WINS MORE PAY FOR HUDSON TEXTILE WORKERS Workers Get 20 Per Cent Raise; Almost All Join N.T.W. HUDSON, Mass. June 27.—-Win- ning an important, victory, 150 strik- ers of the Wottoquottoc Wostted Mill returned to their jobs today after a five week strike convinced that only through struggle can better co. ditions be Won. ‘The strikers, am jority of whom were young workers, won twenty per cent increases in wages in.all departments. The strik- ers, agst to a man, joined the union which led the strike to a suc- cessful termination by its militant tactics, the NatioMal Textile Workers Union. Last minute efforts of the company to break the strike by canvassing from house io house for scabs were defeated by a huge mass picket line at the mill gates Monday morning shop keepers and many other sym- pathizers joined, in solidarity with the strikers. The whole negotiations committee walked out of the mill office Satur- day in protest against the attack on Manuel Perry, youth organizer of the National Textile Workers’ Union by the bosses. Fear of spread of the strike to all plants in Hudson compelled the big Firestone Rubber Plant to grant its workers a ten per cent increase in orkers in the Hudson Worsted , inspired by the militant strug- gle of the workers at the Wottoquot- toc mill are talking of a strike to improve their conditions. The Na- tional Textile Workers Union is help- ing the workers to organize. day session of the hearings on the! epresenta- | is why | NATIONAL EDITION "Price 3 Cents BROTHERHOOD CONVENTION ENDORSES FIGHT SIGNING | PAUPER’S OATH ‘State Act Denying Jobless Right To Vote Causes Strike Plan ;of 400 miners, held here on June 21, jit was decided to take immediate steps against the signing of affida- |vits which make the unemployed |Ppaupers. It was decided to strike against the ning of these papers. In order to see that no one signs |there papers, picketing will begin at the relief station | Fight Paupers' Act. | This action is a part of the state- | wide campaign against the Pauper Act, which denies the unemployed |the most elementary rights. (this act an unemployed person can j be denied the right to vote, the right lto join an organization which fight |for more relief, the right to give bail. In Nakomis, Ill., four’ families have been cut off relief because they gave bail for Zip Kochinski, leader of the junemployed in Tilincis. The super- visor claimed that these families could not go bail because they are paupers. Mass meetings are being \arranged to force the relief authori- ties to place them back on relief. DEATH ORDERED FOR 3 NEGROES ~ IN WASHINGTON Circle Park Case | to High Court NEW YORK.—An appeal from the ruling denying a new trial in the | Logan Circ® Park case will be taken | at once to the ®. S. Supreme Court, the International Labor Defense an- nounced today. In its decision rendered tafay by the District of Columbia Court of Appeals, the court upheld the death verdict against three Negro boys, whose execution has been set for August 22, the sixth p»niversary of the judicial mugia «t Sacco and Vanzetti. | The three boys, Joseph Jackson, Irvin Murray, and Ralph Holmes, were charged with the murder of Milo Kennedy, a policeman notorious for his terrorization of Negroes in Washington. The boys are represented by John H. Wilson, prominent Negro attor- ney of ‘/ashington, Attorney Samuel Levine, and Bernard Ades, LL.D. law- yer. | VIRDEN, Tl.—At a mass meeting Under |* SUGAR - CARH sank” vou § PERT aroha 3 te uw SACKS TO WEAR | Pennsylvania Plan (By a Worker Correspondent.) When a work asked the relief | officials in Tarentum, Pa. for clothes, |he was given empty sugar and flour | sacks to make his own clothes. Above \he is pictured in a sugar sack made | into a shirt. | Jobless in Tarnetum get relief on ‘(lie “Pinchot “commissary plan’ odd" is distributed in commissaries estab- }lished in the city, the worker not ich is distributed The Socialist Party which claims 10 have a large membership in Ta- |rentum tacitly supports the Pinchot | commissary plan. |'Hole In The Ground | || Serves As “Home” | For Family Of 7 STONINGTON, ¥., June 27.—| | A hole in the ground, which they} duz with their.own hands, serves | as a “home” for Mr. and Mrs. Al-| bert Christian and their five children. | The hole, 25-foot square and on) a hilltop, was dug by the Chris- tions after fire destroyed their) farmhouse, They moved to a) tent. One night a windstorm car-| ried that away. There was no money for another tent, so they | dug their hole. | In the center of the hole is a table with benches. In a corner is a small cookstove, and rows of cots line the three walls. | Rise in Production Is Leading to Stocking Up of Goods DAILY WORKER has shown in previous issues that the present | rise in production in various indus- | tries meant not an overcoming of the | crisis, but an intensifying of the un- derlying causes of the crisis. For example, Eugene M. Lokey, a leading financial writer for the New York Times, hints at some of these factors, which, precisely because of the rise, will make for further unem- ployment, He says: “Serious difficulties in the prac- tical application of the National Industria? Recovery Act are already seen. One point of apprehension is that industry may shortly find itself so greatly overproduced, as a result of advance expansion, that activity may be temporarily para- lyzed. Undoubtedly many manu- facturing enterprises have been en- gaged recently in a race to enlarge their inventories before the more controversial features of the recoy- ery program, including wage in- creases and a shorter work week, can be put into effect. There is a FTER nearly four years of crisis he speaks about industry being “overproduced.” What does he mean by this? Does it mean that the 37,000.000 unemployed will have more than they want to eat, more than enough clothing, or shelter? Noth- ing of the kind, Overproduced, or overproduction under capitalism, means that goods have piled up and @ market cannot be found in which it is profitable for the bosses to sell I | their commodities. In other words, | the bosses cannot sell their goods be- cause the people have no money | with which to buy them. | The 17,000,000 unemployed were reason. Great quantities of goods which the workers slaved to produce had accumulated. They could not be sold. The workers were never paid ‘enough wages to buy back but a very \small part of it. The capitalists could not go on producing at a profit. There was overproduction in this sense. This has been going on for nearly four years, and now the bosses are attempting to spurt up production. But they hit against \this obstacle, caused by exploitation of the lack of profitable markets, due to the pov- erty of the masses. They rush into @ further condition of overproduction which will throw still more out of work. They try to solve this crisis by filling the warehouses with still more goods, which the impoverished masses are unable to buy. Over 60 years ago, Karl Marx characterized overproduction under capitalism as follows: “It is not a fact that too many necessities of life are produced in enough is produced te satisfy the | wants of the great mass decently and humanely. “It is not a fact that too much means of production (factories and the like) are produced to employ the able-bodied of ‘he population. The reverse 's the case.” 1 lor, Rok up the textile industry, an- other of the capitalist economists shows how the present rise in tex- tile production will lead to further unemployment because stocks are | thrown out of work for precisely this! piling up for which there will be no markets. “The expressed fear,” writes Ben- jamin Baker in the banker's sheet, the Annalist, “that the attempts of the cotton textile industry to forestall the restrictions of the Processing tax and the wages and hours limitations of the industrial code about to be adopted will lead to such an excess of stocks as to | Tesult in a later slump in produc- tion and employment in the indus- try.” Thus, Roosevelt in his attempt to push capitalism out of the crisis, suc- ceeds in laying the basis for greater unemployment and misery for ‘he workers. By piling up stocks now, so that they can later benefit. by higher prices and profits, the tex~ tile bosses are producing more than; the market can absorb, They are} not producing because workers need | clothing or are in a better position | to buy today than yesterday. They | are producing for stock; they are speculating on higher prices. faction of the needs of the masses, jnot an increase in the purchasing ; Power of the workers, but “a later slump in production and employment | in the industry.” Under the “recovery” act the tex-| raising production in the feverish | tile workers are to be saddled with ‘a $11 and $10 wage scale. The bosses jtextile trade association will then shove up prices. Inflation will help prices go up still higher. The goy- | ernment, | Wages. The spread between the low standard of living of the textile work- ers and the high cost of food, tex- tiles, rents, will lay the base for the aggravated condition of overproduc- tion of goods which the masses can not buy. - HIS applies not alone to the tex-, tile industry. All industries are undergoing the same process. The capitalists have not been able to un-/| load fhe huge mass of goods which was the original cause for the firing The result will not be the satis-'of 17,000,000, and they are already , ST. PAUL, Minn.—About 600 work- ers demonstrated against the forced labor policy of the Farmer-Labor | Welfare board at Rice Park. An electeci delegation was sent to the mayor and welfare which was meeting at the time. They present- ed demands for more relief, against forced labor and for endorsement of unemployment insurance, The dele- |Mayor, William Mahoney and his! St. Paul Farmer-Labor Mavor Rejects Demands of Jobless gation was not given any considera- won with the excuse that the exist- ing welfare board can do nothing and that a new one will be formed | shortly. When this was reported back to the meeting, workers were indignant. Tt was decided to prepare another demonstration to make demands on - new board which will meet short- 2 gsising prices, the industrial slavery act) !boerd, the courts, ‘will try to keep, be able to transfer to profits a great- | the workers from fighting for higher | €T share of what went to the work- | . Why Roosevelt’s Program Will Lead toa Sharper Crisis | wage Rate in Textile Industry Shows How Workers Are Hit i hope to expand their profits under \the Roosevelt scheme of forced prices |at the expense of squeezing the work- ers down lower. The bosses hope by this means to In this way they will but only for ers as wages. ;make “prosperity.” ' Chemselves. ; That is how they ‘expect to get ut of the crisis by lowering the orkers’ living standards, But here- ‘in lies the contradiction: they nar- row down still more} the ability of the masses to buy, while at the same iime they produce more goods. HE industrial siavery act proposes to set a starvation level for work- ers’ wages, and then proceed to kite up the bosses’ prices. If this alone will not work, new dosses of inflation will be injected. The spread between the cost of living and the wages received by the workers will grow greater intensifying the crisis. The new phase of overproduction, which is now heralded as the end of the crisis, will lead to further unemploy- ment, further misery for the work- ers. te is for these reasons that the workers cannot accept the program jof Roosevelt. The other road out | is the one that staris with a deter- | mined fight by the workers for a j maintenance of their wages, and for higher wages to ‘meet the present » ‘ | A Part i of “Pinchot's| {having any choice but the basket | I. L. D. Appeals Logan| UNEMPLOYMENT INSURANCE UNDER MEMBERS SHOULD GUARD AGAINST TREACHERY May Be Simsler 46 Maneuver Adopted by A.F.L. Convention CLEVELAND, O., June 27,—The Brotherhood of Locomotive Engineers meeting in conyention here endorsed non-contributory unemployment in- urance p) ided by the federal gov- ernment.” The maker of this motion stated: “I do not concede that the America. deration of Labor, has the lead ‘ip in this matter and “1 do not like to follow them.” federal measure. he passage of a unem- with- out the blessing of the official John- ton or the opposition job-seekers ma- chine erable pres- sure exerted upon them to adopt veh program. This action will probably serve euver of the | officials to stem nuine mov g railroad work n-wide campaign fer so- ial insurance. | A. F. of L. Maneuver. | The American Federation of Labor at its convention in Cincinnati lest November also adovied unemploy- ment insurance. There the leader= ship tried to divide the movement by | proposing “unemployment insurance jon a state basis”. While the A. P. | of L. convention met a rank and file conference took place in the same city representing the membership. This conference adopted the Work- ers’ Unemployment Insurance Bill, | This is a bill for the federal govern= }ment.te guarantec unemployment in- surance to all jobless workers at the expense of the bosses and’ govern- | ment. | The A. F. of L. which made the | Sesture to support state unemploy- |ment insurance has now even aban- |doned this measure Evidently the officials of the Broth- |erhood plan a similar maneuver. But | its membership observing the experi- ence of the A. F. of L. maneuver, | will be able to thwart such attempts |and develop a wide campaign in all |lodges for the endorsement of Fed- |eral unemployment insurance. THREE FILIPINOS IN LABOR CAMP | SLAIN BY SENTRY /Gov.-General Murphy | Suppresses Facts of Murder a Week MANILA, June 27—Three Filipino prisoners, held in a forced lahor camp on Corregidor Island, a heavily | fortified spot at the entrance to Ma- nila Bay, were shot and killed by an American sentry last week, The | murder of these prisoners was kept | secret until today. Reluctantly Governor General Frank Murphy permitted the story te be published as an “incident.” The sentry said the prisoners tried to escape. Their names were not made public. Murvhy, in trying to quell public clamor against this and other out- rages of the American invaders, an- nounced that there would be an in- quiry into the slaying. Milk Drivers on Strike in Syracuse Federal Conciliator On | Way to Stifle Strike SYRACUSE, N. Y., June 27.—Mifk rivers on strike against the Nether~ land Co., largest milk dealers here, | forced the company to send back | to their homés 75 strikebreakers Im- ported from Buffalo and New York City. The drivers are on strike be- | cause the company refuses to recag- j nize their newly formed union. The strikers are carrying on. « militant fight to defeat attempts to break their strike. T. J. Williams, Federal conciliator. is reported as speeding from Wash- ington to help the milk dealers and stifle the strike by substituting are bitration. ARRESTED FOR DEMANDING SHOES ERIE, Pa,— Eleven workers were arrested at the Commissary Jast week, when a delegation of 100 workers forced their way into the inner offices of the relief officials here and refused to get out until they had received shoes. Those arrested were taken to the police etetjon ”