The Daily Worker Newspaper, July 1, 1933, Page 1

Get A Regular Subscription from Every Member of Your Organization Dail Orga Central 4 J (Section of the Communist International) orker ist Party U.S.A. Visit Friends and for Subscriptions for the Sympathizers Daily Worker! Mutered Vol. X, No. 157 pe ag second-class matter at the Post Office at Rew York, W. ¥., under the Act of March 3, 1878, NEW YORK, SATURDAY, JULY 1, 1933 ‘G2 AY, EDITION. Price 3 Cents TEXTILE, CEMENT WORKERS LEAD FIGHT ON SLAVERY ACT “Behind the Scenes” in Washington EARINGS on the first code submitted under the industrial slavery act —that for the textile mdustry—have “for all practical purposes ended”,—so says Roosevelt’s ¢ ninistrator, General Johnson. The Gen- eral, so the reports state, is “ atensely anxious that the first code be one acceptable to all parties.” Clearly, then, in the textile hearings just ended, the bosses have put their best foot forward. These can be taken as the best example of the “New Deal” at work. How were Roosevelt’- promises ful- . Wet happened at Washington? filled? Roosevelt, on June 16th, in his statement on the administra- ‘ion’s policies under the recovery act, promised: ++ every reasonable opportunity will be given to any group or class who may be affected directly or indirectly to present their views.” What happened to this policy at the textile hearings? Was every group “directly or indirectly affected” given an opportunity to present their views? Decidedly not! The representative of the National Textile Workers Union—the only direct representative of the textile workers themselves—was denied the right to present the demands of the workers, Disregarding Roosevelt’s very definite promise, General Johnson in- formed June Croll of the textile union that her statement would be re- ceived “only if I approve of the proposals”. This shows the farcial char- acter of these hearings. It shows what Roosevelt’s “New Deal” means to the workers. It shows the futility of relying on Roosevelt's promises. ™ % * Mo== than this happened at Washington. They refused a hearing to the textile workers’ representative, but Green of the A. F. of L. and McMahon of the reactionary United Textile Union were given ample op- portunity to speak. Why this discrimination? Because these reactionary misleaders put forward a program with which Johnson could agree—the bosses’ program. Deputy Administrator, Allen admitted this fact at the hearing. He admitted that McMahon had participated in drawing up the bosses’ draft code, the code that would cut down the wages of textile workers a $10.00 and $11.00 a week and less. “I feel it is only fair and proper”, Md Allen speaking to McMchon, “to call attention to the fact that you (McMahon) have acted as my advisor.” Reports today, at the close of the hearings, further prove the co- yperation of these union leaders with the bosses. A sell-out is being ‘ranged “behind the scenes” as can be seen from the following New ork Times report: “Out of the negotiations and conversations taxing place behind the scenes came various reports to the effect that the operators and labor leaders had agreed upon a new schedule of jours and pay.” They retuse to hear the voice ¢f the workers. But the government spekesmen, the bosses and the labor betrayers, aftér farcial open hear- ings, set down quietly “behind the scenes” to work out a program against the workers’ interests. This is the workings of the slavery act as shown by the textile hearing. A Capitalist Educator Speaks TODAY, the children ‘of the public schools leave the schools and go, into the streets. out The New York City Superintendent of Schools, and he is fairly typ- ical of the breed all over the country, has only this to say to more than & million worker's children; on the day that they swarm into the swelter- ‘ng city streets swarming with traffic: “Always have r4sp°ct for constituted authority. Don’t get on soap boxes and denounce the city government. Don’t follow the policy Of some of the city college students—berating the govern- ment, the officials and everything . .. .. Always help your dear fathers and mothers, and respect authority.” Such are the words of wisdom uttered by this Tammany educator— ithful servant of the capitalist class. ‘The “dear fathers and mothers”, of whom this educator speaks so ngly are unemployed and starving workers. When these “dear fathers and mothers” fight against eviction, for ployment relief, and against wage cuts on the picket line they have et the clubs of the police who belong to the same capitalist city -nment of which the School Superintendent is only a particularly _pocritical part. The childre- to whom this “educator” talks are starving. In some cities the children have won the right to free hot lunches. But the sum- mer vacation leaves them to their hunger again. And the city super- intendent tries to stupify the workers’ children with the deadliest of rul- ing class poisons—“respect for constituted authority”. This capitalist ducator preaches to the worker's children submission to their starva- ion. But neither the children nor their parents can accept the advice of ‘ew York's $15,000 a year School Superintendent. The Parasites’ Money Bags ” turns out that Kuhn, Loeb and Company, and Mr. Otto Kahn, mutti- milionaire banker, were just as smart as the Morgans. They, too, have ‘t paid any income taxes since the breaking out of the crisis which has sught such suffering to the masses. ‘To the workers fighting desperately against hunger, the ruling class preaches “respect for the law”. But the capitalist law which they themselves make in their own in- ‘erest—even this the finance capitalists can escape with impunity. Karl Marx, the founder of modern socialism, said that the ruling slass always attempts to throw the tax burdens of the government upon she workers, upon the poor, _ The capitalist class makes the workers shoulder the cost of the very overnment which oppresses them. Nothing reveals this more clearly han the present Senate investigations. ” . . 3 these investigations have also thrown additional light on some- thing else which is of great interest to the workers. And that is, the ‘xistence of the enormous wealth in the hands of the bankers, The Roosevelt government protests that there is no way to pay for nmediate relief, for Federal Unemployment Tusurance, for Social In- nrance against disease and disability. , Well, here in the hands of the bankers are riches more vast than * wealth of ancient kings. Hundreds upon hundreds of millions in ! Whese millions must be reached—to stop the hunger of the workers their families! ‘The masses must insist that the government lay the grip of heavy taxes a these money hoards to provide for immediate Federal Unemploy- it Insurance—for insurance against starvation! \nd these taxes must be colecteg” | KAHN GIVES SUPPORT 10 “NEW DEAL” Approves Roosevelt’s Price-Raising Program main developments of the Senate in- quiry yesterday into the affairs of the Wall Street banking house of Kuhn, Loeb & Co. were the disclosure of an enormous profit in a single railroad deal, and Otto Kahn’s sup- Port of the Roosevelt program. The Kuhn, Loeb company made $10,540,000 clear profit in arranging for the organization of the Pennroad Corporation, a railroad holding com- Pany used by the Pennsylvania Rail- road in its gigantic fights for control of Eastern roads, particularly the New York, New Haven. who put their mone; have lost $106,000,65". Supports Roosevelt Commenting on the Roosevelt price-raising and wage-cutting pro- gram, Kahn said, “All of us must give the new legislation a fair trial.” |Kahn has always been a generous contributor to both the Democratic into this venture been a member of the Republican Na- tional Committee. Made Big Profits Between the years 1927 and 1931, Kuhn, Loeb & Co. made profits of $16,633,436, on the stock and bond issues originated by the firm. The firm, of course, made millions in other speculations and investments, | Pennroat™was formed in 1929 by the Pennsylvania Railroad to consoli- date its grip on the roads through the Eastern coal territory and New England. Through the money placed in its hands by investors who bought Pennroad, it succeeded in getting control of the New Haven and other toads. The thousands of small in- vestors have lost their money, but the Pennsylvania still has control of the roads whose securities it bought in 1929, Tries To Hide Cause of Stock Crash Kahn attempted to explain the 1929 stock crash as the result of “beer | selling.” In this way he attempted to explain away the tiue cause, the capi- talist crisis. Kahn knows very well that no amount of “bear selling” can Permanently depress a market, if the | |stock corporations continue to have expanding profits. Paid No Taxes Earlier in the i:guiry it was shown WASHINGTON June 30.—The two | The thousands of small investors | and Republican parties. He has also | Socialist Leaders Plot Against USSR; See Monday’s Daily! Leading American Socialists are again caught plotting against the Soviet Union! As usual, their actions are| cleverly concealed. But, the} “Daily Worker’ exposes their scheming for all to see. In Mon-| day’s issue, read the story of the latest committee formed by Morris Hillquit of “Russian oil” fame. Be sure to “Daily Worker!” } read Monday’s TO DEMAND JUDGE HORTON SET BAIL FOR NEGRO BOYS | Workers ‘at Meetings Demand Release of All 9 Youths NEW YORK.—The demand that | Judge Horton set bail for the Scotts- ; boro boys, whose innocence he has been forced to officially admit, but who are still held in Birmingham County jail, will be made by the International Labor Defense in ‘habeas corpus proceedings in his | court next Monday, it was announced today. While lawyers for the I. L. D. were preparing to leave for Alabama, meetings and protest demonstrations continued throughout the country. The immediate and unconditional release of all the Scottsboro boys is the keynote at these meetings. William L. Patterson, national sec- retary of the I. L. D., yesterday issued a call for mass participation in the demand, pointing out that it is the mass pressure and protest. which has Saved the lives of the boys so far, and finally forced Judge Horton to grant a new trial to Haywood Patter- son. “Judge Horton has admitted in his opinion granting Haywood Patterson a new trial, that the evidence against the boy was completely discredited,” Patterson said. “Greater mass protest alone will force Judge Horton now to grant bail to these boys whose innocence he has admitted. This is one of the imme- diate steps toward their uncondi- tional release. “Every worker, every sympathizer, must express this protest in ‘wires, letters and resolutions, to Governor B. M. Miller, at Montgomery, Ala., and to Judge A. E. Horton at De- catur, Ala., demanding that he re- that Kahn, who is reputed to have a fortune of about $100,000,000, paid no | income taxes during the last three | years of crisis, pursuing the same | practices as Morgan, establishing | “losses” by the simple transfer of | stock to a friend or a relative, and| calling it a “sale.” | It was also shown that the firm | issued @ $70,000,000 loan of Chile in| this country on inadequate examina- tion of the country’s financial posi- tion. Kuhn, Loeb made a large profit on this trarisaction, but the people who bought the bonds Jost practically all of the $70,000.90, since the bonds are now in default To End Inquiry ‘The Senate Committee expects to bring its investigation of the Penn- road Company to a quick close some | time today or tomorrow. Then it expects to adjourn until October, Obviously, this will leave by far the greatest part of the affairs of the Pennroad Company and Kuhn, Loeb untouched. REPORT BRONX RELIEF STOPPED NEW YORK.—Workers in the Bronx report that food tickets were cancelled indefinitely. Families de- pendent on relief are virtually at the mercy of officials as the use of the food tickets is their only means of sustenance. Since Tuesday, July 4 js a legal holiday many may find themselves without food until the end of next week. Reports are current that the stop- ping of food checks is a result of a mistake of $500,000 in the accounts of the Home Relief Bureau. Jobless. Councils in United Front Action Despite S.P. Leaders NEW YORK.—Although the So- cialist Party officials instructed their branches and organizations not to take part in joint struggles for relief demands, several Socialist local un-' employed organizations have respond- ed to the proposals of the United Front Committee Against Relief Cuts, Locals 2 and 3 of the Workers’ Committee on Unemployment, Social- ist Party organization, have taken part in several united front actions for relief with the Downtown Un- lease the boys whose innocence he has admitted.” Win Reprieve for Framed Negro Boy CHARLOTTE, N. ©0.—A sixty-day reprieve for John Lewis Edwards, 18-year-old Negro worker framed and sentenced to die July 7 on mur- der charges, has been obtained from Governor Ehringham by the Inter- national Labor Defense. The I. L. D, after the failure of J. D. McCall, lawyer appointed by the court, to appeal the case, began @ campaign of mass pressure that forced re-opening of the case. Edwards was airested, with two other Negro boys, May 17. On May 19 Edwards and one other Negro boy were tried by an all-white jury. Ed- wards was found guilty, with recom- mendation of mercy. On May 21, however, Judge Ogelsby sentenced Edwards to die. Amoskeag Workers. Strike to Defeat Recovery Law Company ‘Invokes Act to Prevent Closed Shop WASHINGTON, D. C., June 30.— Prompt action was taken by the workers at the Amoskeag Manufac- turing Company in calling a strike when the company refused to recog- nize their demands for a closed union shop. With the Industrial Re- covery (Slavery) Act in operation the workers are getting a taste of the way in which the bosses will use this act to defeat the rights |which the workers have won to |control their working conditions through their union. |“Union Shop—Contrary to Recovery Act.” Frank C. Dumaine, treasurer ot the Amoskeag Co. and one of Mor- gan’s favored millionaires insisted }on employing non-union workers contrary to the union’s demands following which action the strike was called. Dumaine is invoking the Recovery (Slavery) Act declar- ing that @ union shop is contrarv to the spirit of the Act and to the agreement made with the bishop in the last strike called on May 19. The Bishop's Deal. The bishop together with the strike-breaking Governor of New Hampshire Winant and the head of the United Textile local here Riviere, succeeded in halting the strike of the warkers by. agreeing to their demand for a return of a 15 per cent wage cut. The action was taken when the company realized that the strikers were determined not only to gain back their cut but to obtain a real increase in wages. The workers, following their re- turn to work found that the com- mittee which had negotiated the settlement had not functioned in their interests, for their pay enveél- opes contained even less and in- creased production had beon im- posed on them, through a new Stretch out plan. From DuMaine’s statement it | will now be clear to every Amoskeag worker that @ deal had been made with the bishop in which not only was the strike halted to prevent the workers from obtaining increases but the right of the union to dictate conditions in the shop denied, Strike Answers Dumaine, Dumaine declares that the bishop promised that any differences be- tween the union and the workers would be settled by the government under the Recovery Act. In other words the bishop signed away the workers’ right to strike. But the workers have answered this treachery by a strike to en- force the closed shop, according to capitalist press reports. At this time no reports have come in regarding the number of workers involved. | PATTERSON TO SPEAK IN VIRGINIA NEWPORT NEWS, Va.—A Scotts- boro meeting will be held here on July 9 at Barraud Park. William Pat- terson, secretary of the ILD will ad- dress the meeting. It is expected that. this meeting will lay the base for the formation of a Tidewater Committee of the International Labor Defense. Try to Save Money on This Pay Check! % save buiniag ism duty you owe: 5 i Paycheck for $6.52 for one week’ ’s work at Amoskea, mills. Notice that the company prints on these checks the sneering advice to the worker to start a bank account with it. Croll States of Texti Demands le Workers Tells Gen. Johnson National Textile Workers Union Will Organize to Fight for Them WASHINGTON, June 30.—Under pressure of. a barrage of telegrams from trade unions and other workers’ organizations, General Johnson was forced to permit June Croll of the National Textile Workers Union to pre- sent the demands of the union and textile workers at the hearings here in opposition to the slave code of the cotton mill owners. After several days | of waiting, in which Johnson re-¢ fused to allow the workers a right, to speak, the textile workers had} returned to their homes before their union representative was given the right to speak. “The 40-hour provisions in the proposed code,” said Croll, “would not provide more jobs. It would re- sult in the loss of jobs because of the speed-up. It will mean night work for women in Massachusetts where night work is now prohibited. “Governor Ely of Massachusetts is already preparing a message to Congress to make it possible to em- ploy women at. these starvation! wages at night. The United Textile Workers Union Council, at a joint meeting of the Bedford and Fall! River Council, voted to support} Governor Ely in providing night work for women between the hours of six and ten at night. Will Cut Wages “The code does not call for any increase in wages, although that impression is sought to be given.” Croll quoted statistics to show that operations in the mills for which the code provides an $11 wage now pay more, and that the $11 wage would be an actual slash in wages. “President Roosevelt is supposed) to be the finz! arbitrator on these codes,” Croll stressed, ‘and under Section 7, there is a clause which makes this industrial recovery bill a strike-breaking maneuver to be enforced by the President of the United States.” a When she started to read the ac- tual wording of the code to prove it contained definite strike-breaking clauses, Deputy Administrator Al- len stopped her and threatened ‘to have her ejected if she continued to quote the actual wording of the in-| dustrial recovery act. She then read the demands drawn | | up by the Nationa: Textile Workers Union. These demands were pub- lished in full in yesterday’s issue of the Daily Worker. Will Organize for Demands “No matter what your actions may be here to lower the standard of living of the textile workers,” declared Croll, “no matter what | strike breaking measures you pass,| we are going out to get our de- mands. We are going to organize the workers to back up and strug- | gle for their demands to prevent the starvation level you propose to fasten on them.” Deputy Administrator Allen then asked Croll if she thought she got a “fair” hearing, or whether she thought she was discriminated against. “We were here yesterday with a workers’ delegation,” she said. “You refused to give us the right to speak. It was only after our dele- gation left, because they could not afford to stay, it was only after we had to arouse trade unions to pro- test, that we were given a hearing. You did not want to listen'to the testimony of the textile workers.” Immediately after June Croll fin- ished speaking, George P. Sloan of the Cotton Textile Institute, was given the floor. He announced that a new agreement had been teached and that the wage scale would be revised to $10 to $12 for Southern textile workers and $12 to $13 for Northern textile workers. Workers in All Industries Should _ Organize to Defeat Bosses’ Codes ATLAS CEMENT: WORKERS VOTE OWN LABOR UNION Prepare to Defeat the Company Union Plan NORTHAMPTON, Pa., June 30. —Stirred to action by the attempt of the Steel trust to foist a company union upon them, under the Recov- ery (Slavery) law, more than 200 workers employed by the Universal Atlas Cement Corporation, a sub=- sidiary of the United States Stee) Corporation, gathered at a mip meeting yesterday to mobilize to de j feat the plan. The meeting Wa called by, the General Action Com- mittee formed by the workers in th: plant. The mill is part of the Atlas Ce j}ment at Hudson, N. Y., where’ employee representation plan (Cor Pany Union) has also been intr duced. Similar plans are bei pushed in the U. S. Steel plants Gary, Youngstown and the Oj Valley. They are identical in m pose, to head off any real union « | ganization and to prepare to fo upon the workers new lowered wo) ing standards. At the meeting called by the Gen» eral Action Committee, thé werkers voted in favor of a genuine labor * ganization. They will rally w | forces for a second mass meeting a | be held on Monday, July 3. | When the plan for employees? | |resentation was introduced | mill several of the workers’ slai elected on the coramittee. The jers. are preparing to expors -* measures of the company to © down their conditions, and, are ganizing their own committe win improvements in the fe: rising living costs. DEFIED LYNCE~ NEGRO HELD MURDER CHARG, MINNEAPOLIS, Minn.—A 22sye old Negro was indicted for first a, murder by the grand jury Tuesdi because he defended himself from lynch mob, and shot and killed one + his assailants. The Negro, Wilh Hardiman, was pursud by a mob yel jing “Lynch him,” after a fight o |June 22, during which a white work« | was stabbed by another Negro. Hardi |man was chased into an alley an was forced to defend himself with hi }gun when the mob closed in upo jhim. The International Labor De jfense has announced it will defen Hardiman, on the grounds that * jhad a right to defend himself fr a lynch mob. The police used the incident as pretext to round up Negro and whit: unemployed workers and sentence them to jail or ship them out o town. The cops have threatened t drive all single unemployed worker out of the city. When a mob gatherer during the night of the shooting t. threaten innocent Negro bystanders, a group of white workers, including members of the Communist Party, defended the Negroes from attack. The Communist Party has issued a statement in leaflet form calling for the unity of Negro and white -work- ers, denouncing the lynch atmosphere | | Lag of Markes and Inflated Output Will Make More Unemployed — ORE than one capitalist fiegent paper has already sewed up, mummified and fracefully bruied the economic crisis. What matters it if 17,000,000 unemployed still walk the streets with wads of Roosevelt's pol- lyanna speeches lining their soleless shoes? What difference does it make that the whole financial foundation of world capitalism is tottering to further instability? Why should a capitalist editorial writer hesitate to make the editorial page the grave of the worst crisis that ever confronted capitalism, even though the basic factors of the present production up- spurt clearly contains new contra- dictions, new instabilities, new fuel that will make the flames of eco- nomic breakdown burn with a dead- lier glow? It is true that the capitalist crisis, especially such a general crisis of world capitalism which has been capitalism since the close of the world war, does not move in a straight line downward, There are short periods of upturn. The capi- talists grasp at each one of these upturns as evidence of returning “prosperity” like a drowning man snatches at a straw. Theorize About End of Crisis ‘The New York Times, for example, is already theorizing about what end- ed the crisis. They take it for granted that evidence is here “that financial employed Coungi, _ under way.” Is there an actual upturn in pro- duction from the lowest levels of the crisis which were reached after the national banking crash? Yes, there is. How far has it gone and what is its nature? How will it effect unemploy- ment and the condition of the work- ing class? These are the decisive | questions. An examination of all of the sta- tistical business @harts of the capi- talists emphasizes that production is ; below the average of the whole pe- riod of the present crisis in the Unit- lea States beginning with the latter part of 1929, up to the early part of 1933 The upturn has not broken through the low point of the entire crisis. Is there any indication that it will lead t. a recovery? Here we must briefly analyze the facts The Daily Worker has definitely shown that the major portion of the rise in production in those industries where it has actu- ally occurred is not because of in- creased demand, but for stocking pur- Poses as well as for speculation. The demand for commodities within the country is dropping. Export and im- port trade is coming to a virtual standstill because of the further shat- tering of the stabilization of the world capitalist currencies. One New York financial writer declared that all importers and exporters in the and industrialsrecovery is genuinely United States, because of the insta- ~ ae jness beginning from May and going bility of currency’ and the clasa for markets around it, have been turned into speculators and gamblers, Retail Trade }rops So far as home markets are con- cerned the Journal of Commerce as- serts: Retail trade through chain stores on the other hand was actually down 3.3 per cent for May as com pared with 1932, while department store sales were down 2.2 per cent. A distinct lag in retail trade is thus indicated for the current up- turn.” “A distinct lag in retail trade,” means that the increased production is reaching the warehouses and not the markets. It is further choking up the overstocked shelves of the capi- talists. ‘The New York Herald Tribune In- dex of Business shows a rise in vusi- on to the end of June. Last year in the week ending June 24, the proluc- tion index was at 49.8 (conside ‘ing 100 to be “normal’). The same week in 1933 showed the index to be at 63.1—a rise of 13.3 points. What about distribution? Where did this production i “ease go to? In order to be of use in ending the crisis it must be sold to a consumer. We have the fact that chain store:, the department stores and mail or- der houses, the most sensitive points of distribution, decreased their sales! I The same chart we have just quoted shows, for example, that while in 1932, for the week ending June 24, distribution was at the index leve! of 60, in 1933 it had gone up. to only 62.1. Look at the contrast: Production up 13.3 points, distribution up 2.1 points. But this “distribution” is not distribution to the consumer, It is distribution from the manufacturer to the jobber, to the wholesaler, and even to the retaile: It is not dis- tribution for consumption. The mass- es are eating less, wesring less, buy- ing less. Didn’t we hear that Roosevelt was going to speed up construction work? It was not so very long ago that the | capitalist newspapers caitied shriek- ing front page stories about the rise in building construction. Here are some cold figures from the Herald Tribune business index, It shows “hat | the index figure of building construc- tion in 1932 was 43. In June, 1933, it was 29! Roosevelt's building program so far has forced the index down 20 points! From the leading basic industry, steel, we learn that the upturn is “over.” The Iron Age, business organ of the leading steel manufacturers, says: “So far as the steel industry is con- cerned, the first phase of recovery appears to be over, This view is sup- Ported by the fact that latterty, at any rate, many. buyers have been / requirements.” | They didn’t need the | bought. They bought it to | higher prices. More important than this, \industries that usually su] | Steel orders are not buy |The same issue of “Iron mitted: “Business from the |industry and from the | been insignificant througho jriod under review, and question how much tu put can be increased C support.” fi Were any workers re: loyed, jthe upturn? In some pla tr ably a few thousands were. But the major portion of the upturn was cre- ated by speeding-up those (working, or by adding but | hours to the part-time | the auto, industry such output ‘as “have L | taking steel in excess of their chow ‘pay, some output, workers. fa in the ranks | ployed. These ragged 1 be replen! by of the crisis due to tion caused by be