The Daily Worker Newspaper, February 1, 1935, Page 1

= : Morgan Interests Back Drive Toward Fascism in U. S. FINANCIAL TIE-UPS LINK MANY LEADING PRO-FASCIST GROUPS Banking, Social Connections of Anti-Labor Groups Lead Step By Step Into Center | of the Roosevelt Administration This is the seventh article in the series, “Wall Street’s Fascist Conspiracy,” revealing how leading figures in American business and Political life are backing Fascist and potential Fascist organizations. Previous articles showed how the McCormack-Dickstein Congressional Committee suppressed evidence of Fascist activity, described the role of General Smedley D. Butler, told how Italian Consuls persecute anti-fascists in the U. S., and related how the press, radio and movies are being used to advance Fascism. Yesterday's article showed how fascist groups were seeking to ensnare the war yeterans.—Fditor’s Note. | | By MARGUERITE YOUNG The financial trail of J. P. Morgan men who plotted to put 500,000 American storm troops in the field leads straight to the headquarters of key men in a sweeping drive to lower the living standards of the people, restrict civil rights, and smash the labor movement. The names thus linked constitute a Who’s Who of Amer- ican Fascists. This financial trail, as this article will demonstrate, | proves that there are organic links between the big bankers | behind the Wall Street conspiracy to set up an open capital- ist dictatorship, and those who are backing groups and ac- tivities typical of the well-known preliminary steps to Fas- cism. Leads to Roosevelt Government | Step by step the financial associations of the Fascist Army plotters lead righc into the Roosevelt Government. They hook into a so-called labor bank in which President | Roosevelt himself holds stock. They cross into the leadership of the American Liberty League, the Crusaders and other new and powerful groups whose purposes are essentially Fascist. At the moment their main job | is to manufacture public opinion through the press, radio and movies, a | process I described in detail on Thursday, | The financial background of interlocking directorates of first-line | banks and corporations trace naturally into the Chamber of Commerce | of the United States and the National Association of Manufacturers, oldest and most powerful of the traditional anti-labor belligerents. It is | through these old-line employers’ associations that the main-—though | the least spectacular—drive toward Fascism is taking place in the United States today, just as it occurred through the Federation of German In- dustry in Germany at the same time that the Krupps and Thyssens were lining the pockets of Adolph Hitler and some of his storm troop lieu- tenants. Morgan Man Steered Dickstein Group One of this same clique, J. P. Morgan’s business associate, James P. | were confirmed yesterday by the| Warburg, indirectly steered the Dickstein-McCormack Congressional Committee, which was supposed to be investigating just such matters, but actually suppressed vital testimony and deliberately neglected other phases of the Fascist activity involving interests related to those of Morgan, The testimony suppressed by the Dickstein-McCormack Committee, published last week by the Daily Worker, included a passage in which General Smedley Butler, who was picked to lead Wall Street storm troops, quoted Gerald C, McGuire, Wall Street bond salesman, as follows: “The Morgan interests say that you cannot be trusted... . They want either MacArthur (Chief of Staff, General Dougless MacArthur) or MacNider (Hanford MacNider, former National Commander of the American Legion and former American Minister to Canada). You know as well as I do that MacArthur is Stotesbury’s son-in-law in Ph!!2<lphia —Morgan’s representative in Philadelphia.” Morgan Lawyer Wrote Speech McGuire also said, according to the suppressed testimony, that a speech which he wanted Butler to deliver at an American Legion con- vention was written by John W. Davis. Now, John W. Davis, Democratic nominee for President of the United States in 1934, is the chief counsel of J. P. Morgan and Com- pany. Davis is also a director of the Guaranty Trust Company of New ‘York, a Morgan bank, etc. He was on the list of Morgan’s “preferred customers” which a Senate committee made public about two years ago. ‘These “preferred customers” were “sold” stocks by the Morgans at prices below the market price, which enabled them to clean up tidy sums by selling at the market price. This “preferred customer” list was obviously a collection of “thank you's” for services rendered by political and mili- tary figures, including the late Calvin Coolidge, General John J. Pershing and Bernard M. Baruch. McGuire’s employer, Grayson M. P. Murphy, also was on this “preferred customer” list. Murphy is also a director of the New York Trust Company, a Morgan bank—that is, a bank whose board of directors includes as least one Morgan partner. It is a recog- nized fact that wherever a Morgan partner sits on the board of a bank or industry, its policies are dictated by the House of Morgan. There are two Morgan partners on the board of Murphy’s New York Trust Company, A. M. Anderson and H. P. Davison, Murphy is also on the board of the Guaranty Trust Company—with two Morgan partners, Thomas W. Lamont and George Whitney. The Dickstein-McCormack Committee suppressed Davis’ name. The Dickstein-McCormack Committee never called Murphy. The facts take on an added impressiveness in the light of the close relationship between these two men, Murphy and Davis, to the House of Morgan. There is a great difference between the presentation of a fascist army plot by the representative of a mere broker and the presen- tation of such a plot by a Morgan broker. The seriousness of any pro- gram is judged by the power and importance of the individuals behind it. The Dickstein-McCormack Committee suppressed all references to the American Liberty League. John W. Davis and the directors of several Morgan enterprises are in the American Liberty League, and it was a business associate of the House of Morgan who indirectly steered the committee. Liberty League Aiding Crusaders The American Liberty League gave the Crusaders a donation of $9,000, according to a statement recently issued by the League, By merely cross-indexing the announced leaderships of these two new “patriotic” organizations, both of which are seeking millions of members and were organized by representatives and associates of the country’s financial rulers, one can easily see that they dovetail with the government and are connected with other organizations which are basic in the process of the advance toward Fascist dictatorship. A chart showing the groups to which each of about 25 individuals belongs or which they lead is reproduced with this article. The names of Crusader officers were taken from official literature. The chart shows that the same people are in the forefront of the American Liberty League, the Cru- saders, the Committee for the Nation, the Association of Manufacturers and the U. S. Chamber of Commerce, and that these people have sig- nificant connections with the Roosevelt administration, powerful mili- tary cliques, the Metropolitan Club, most important men’s club in the country, and the Harvard Club, the most influential of American univer- sity clubs. The Harvard Club, significantly, happens to be the residence of Lawrence Dennis, a declared American Fascist, S. Clay Williams, president of the R. J. Reynolds Tobacco Com- pany, is the chairman of the Roosevent government’s National In- dustrial Recovery Board. He is also an officer of the Crusaders. There are many individuals active both in the Crusaders and in the Liberty League. James P. Warburg is a member of both of these, and of the Metropolitan and Harvard Clubs as well! Here in the Harvard Club, also, is our old friend, Colonel Grayson (Continued on Page 2) | Fascist regime, Daily Q Worker CENTRAL ORGAN COMMUNIST PARTY U.S.A. (SECTION OF COMMUNIST INTERNATIONAL ) Vol. XII, No. 28 => * NEW YORK, FRIDAY, FEBRUARY 1, 1935 NATIONAL EDITION Entered as second-class matter at the Post Office at New York, N. ¥., under the Act of March 8, 1878 (Six Pages) Price 3 Cents BENJAMIN GAGGED AT HEARING Pulls the Strings J. P. Morgan, one of the rulers of America. The Morgan interests who support the drive toward fas- cism in the U. S. are traced in today’s installment of “Wall Street’s Fascist Conspiracy.” DECREE DEATH FOR SIN SPAIN To Be Executed for Taking Part in Asturian Soviets | MADRID, Jan, 31.—Death sen- | tences for eight revolutionists who participated in the Asturias Soviets Council of Ministers of the fascist Lerroux-Robles government. | Fourteen workers and soldiers had been condemned to death by the | Council of War, and when the case |came up for review before the | Council of Ministers, six were given | commutation of sentence to life im- | prisonmgent. Reports were circulated in Madrid | that the eight whose sentences were confirmed were immediately exe- | cuted. The executions are arousing | mass indignation throughout Spain. | Only international action of the | workers everywhere can stop other |death penalties which are being kept secret by the Fascist: govern- ment. The names of those sentenced to death were not published by the It is known, how- ever, that among them are Sergeant Vazquez, of the Civil Guard, who refused to fire on the revolutionists and the worker Arguelles. NBC Strikers Face New Police Edict PHILADELPHIA, Pa., Jan. 31— While strikers of the National Bis- cuit Company here are holding / their ranks firm, the company and police are increasing preparations | for strike breaking. All the office force was called back to work and the company is making attempts to run scab goods outside of the plant. Scab drivers are accompanied by detectives while delivering goods. Small storekeepers in many in- stances especially in the working class regions refuse to accept de- liveries, but the A. and P. and other chains announced that scab prod- ucts will be accepted. Coupled with this, Superintendent of Police Le Starange declared that every picket who appears before any of the chain stores will be arrested. MINNESOTA INVESTIGATION ST, PAUL, Minn., Jan, 31. — A sweeping investigation of ten state departments, eight of which are controlled by Farmer-Labor Gov- erncr Floyd B. Olson, was voted to- day by the State Legislature. The investigation will pay particular at- tention to the administration of the $5,000,000 appropriated for relief purposes in 1933. Policeman Killed, MAYOR PLOTS TO BREAK UP TRUCK STRIKE Meets With ‘Publishers Against the Threatened | Walkout of Teamsters Of Sugar Workers SAN JUAN, Porto Rico, Jan. 31—One policeman was killed and fourteen strikers seriously injured when police attacked a group of sugar workers at Fa- jardo yesterday. A general strike of sugar work- ers has gripped the island for more than two weeks now. The employers refusing the workers’ demands of increased wages. In the negotiations now going on the sugar trust offers increased wages only on condition that the price of sugar go up. WRIT DEFIED; STRIKE LOOMS | A conference of Mayor LaGuardia and the largest publishers of the city to combat the teamsters’ strike was held Wednesday afternoon at City Hall, the Daily Worker learned from authoritative sources yester- a. > ] At this meeting the Mayor re- ceived the support of the capitalist newspapers of the city in a fight to stem the strike movement in the ahaa guise of moving “food, fuels and| Dockers Refuse to Load newspapers.” | Goods Brought By The publishers pledged their | trucks to the administration for | Seab Trucks strike-breaking purposes. | | A confidential message to all Longshoremen and pier checkers newspaper offices, evidently based | Will not handle freight trucked by on the reassurances given by the non-union men, the International Mayor, was sent out early yesterday Longshoremen’s Union announced morning by Harvey J. Kelly, execu-| Yesterday, through its president, tive secretary of the American | Joseph P. Ryan. | Newspaper Publishers Association This declaration of open defiance and himself a strike-breaker of Jong |°f the Humphrey injunction which standing, to the effect that the| forbids joint action between long- 14 Injured in Strike US § R PARLEY strike was “off” and that the Mayor | Shoremen and teamsters, came fol- | would issue a statement. | ‘Forgets’ Parley With Publishers Confronted by the Kelly state- ment, the Mayor at his morning press conference yesterday did not | lishers, He said: “That's half true. a statement. “I’m hopeful that all differences will be ironed out. I have con- fidence in the leadership of the unions involved—Mr. Michael J. | Cashal of the Teamsters’ and Mr. | Joe Ryan of the Longshoremen, | who is also president of the Cen- tral Trades and Labor Council. 1 | hope that these gentlemen will be | able to make a formal annonnce- | ment. | “All seems quiet on the water- | front.” Questioned as to whether he did I will make was beyond the control of the of- ficials of the organizations, the Mayor reiterated his. belief that Cashal and Ryan could stem the | strike movement. Mayor emphasized. “That's what I hope,” the Mayor answered another reporter who asked him whether he believed that Fear Another Frisco | The Mayor's conference with the newspaper publishers or managing editors representing newspapers was evidently based on the growing fear in employers’ circles of a repetition of the San Francisco general strike. | x6 was attended by some of the | largest publishers in the city-—with the honorable exception of the Daily Worker, which had not been invited—including Victor Ridder, editor of the Journal of Commerce. This is the second such secret conference with publishers aimed at the workers of New York City, it is recalled. Last spring a meeting of a similar character was held and was promptly exposed by the Daily Worker, no representative of which had been invited. That such a con- ference was held was not confirmed in official circles, but was finally admitted by a New York Post edi- torial writer in a signed article in the New Republic a few weeks after the Daily Worker had celled the entire matter to public attention. In informed labor circles the ers of the large metropolitan dailies is considered analogous to the steps taken by John Francis Neylan, counsel for the Hearst newspapers, in organizing the San Francisco press against the general strike there last year. Mooney to Enter New Plea Wits High Court in Capital WASHINGTON, D. C., Jan, 31— A petition for reconsideration of its decision refusing a writ of habeas corpus for Tom Mooney will be filed with the U. 8. Supreme Court to- morrow, John F. Finerty, Washing- ton attorney for the famous class war prisoner, announced today. ‘The petition will argue that Moo- ney should not be required to have |recourse again to the California courts which railroaded him to jail 18 years ago on perjured testimony and have since consistently ham- pered his efforts to expose the framed nature of his conviction. It is understood the petition will point out that Mooney hes not neglected any chances of redress in the State courts. REPRESA, Cal., Jan. 31—Warren Billings, railroaded to jail 18 years ago with Tom Mooney on perjured testimony, has again applied for parole, denied him last year. His Mame appears on the next list for consideration of the prison board at Folsom Prison, | mention his meeting with the pub-| not believe that the strike situation | “But I have con- | fidence in their leadership,” the | “the strike germ had been killed.” | Mayor's conference with the own- | lowing all day vigilance Tuesday and Wednesday by delegates of the |teamsters’ and longshoremen'’s unions to preyent any trucks driven by non-union drivers from entering | piers. | All non-union. drivers .approach- ing Pier 60, at West Nineteenth | Street; the Chelsea piers, between | Sixteenth and Twentieth Streets, }and other North River piers were |either turned back or their trucks | remained standing at the entrance. Ryan and Michael J. Cashal, vice-president of the Teamsters’ Union, at a conference with the | Regional Labor Board Wednesday | admitted that they are heipless in |face of the determined rank and | file movement in their locals to de- | fend the unions. | The officials warned the board that they cannot be held zespon- |sible for the strike next week which | appears inevitable. | Charges filed with the board de- | clare that thousands of union men have been fird duting the three weeks since the injunction was is- | sued. | Injunction Overrules N. R. A. | However, in an interview with of- | ficials of Local 282 of the Interna- tional Brotherhood of Teamsters, it | | developed that in the case of one | worker fired by a company for membership in a nnion, a decision by the N. R. A. in favor of the union was reversed by the company |throuph court action on the | strength of the Humphrey injunc- tion. | As events moved swiftly toward a | | strike next week that will mean a complete tie-up of the waterfront and a large part of the city’s busi- |ness, Justice Humphrey still per- | sisted in his determination to sign | the union-smashing injunction yes- | terday. | | The Central Trades and Labor Council announced that it would | | throw the support of the 750,000 | members in its affiliated unions be- | hind the fight against the injunc- | tion. The council’s decision made | no mention of a general strike in| the event the fight develops. erie oe Cc. P. CALLS TEAMSTERS The District Committee of the Communist Party has issued an emergency call to all Party mem- | bers to immediately report at sec- | tion headquarters for distribution of leaflets calling for a struggle against the injunction. Teamsters who are members of the Communist Party are called to report immediately at the Dis- trict Headquarters, fifth floor, 50 — East Thirteenth Street. HAILS GROWTH OF RED ARMY All-Union Congress Told Soviet Army Is World’s Best By Vern Smith (Special to the Daily Worker) MOSCOW, Jan. 31 (By Wireless). | —The concise, calm, confident speech | of M. N. Tukhachevski, Assistant Commissar of Defense of the! USSR., relating the details of the gigantic development of the work- ers’ and peasants Red Army, its | preparedness at any moment at! _ Be ae : the first summons of the Commu-| Wagner-Lewis “social security nist Party and the Soviet govern- Sa ment to come out in defense of the Soviet frontiers, was greeted by the All-Union Soviet Congress with a] tremendous demonstration. It is difficult to select words capable of fully characterizing the power and majestv of the demon- stration which took place in the Great Hall of the Kremlin. The invincible guardian of the socialist frontiers, the pride, love and hope of the workers and peasants of the US.S.R. and of the whole world— | the workers’ and peasants’ Red | Army—was hailed as only the greatest bulwark of the interna- tional working class is hailed. Vast Changes The hall was crowded with dele- gates and guests. The boxes for ,the Soviet and foreign press were also full. FROM HOU Ways and Means Comm (Daily Worker We WASHINGTON, D. C., J. gressman Robert L. Doughton ‘KIDNAP’ TALE SHOWN A LIE Spy At Trial of 18 On Coast Admits State | Faked Charges By Michael Quinn | (Special to the Daily Worker) | SACRAMENTO, Calif. Jan. 31— Special Prosecutor Neil McAllister refused to take the stand today in | the trial of the 18 criminal syndi- a | calist defendants in Superior Court, |_“The face of the land of the! after the defense had pricked the Soviets,” he began, “has indeed bubble of the fantastic “kidnap” changed until it is unrecognizable. | story created by McAllister around It has become industrialized and the “disappearance” last October of collectivized. And as never before | william Hanks, star prosecution its ‘army has become strong and wit! 0 : | Powerful. x | stool pigeon. Staff of Military Leaders | Hanks, under the grilling of Leo “No capitalist army had, has, or | Gallagher, International Labor De- | will have such qualities. Every year, | fense attorney, today repudiated all every month the Red Army multi-| details previously given out by him- | | plies these revolutionary quatities. self and McAllister about his “kid- At the present time the military |naping.” With McAllister, Hanks technique of the Red Army is dis-| had formerly tried to | tngiushed from its technique at the |Communists in his “disappearance”! time of the Civil War as the heay- | from Sacramento last October. He ens are from the earth. | still holds he was “kidnaped,” but is “Tts material base is steadily | NOW not certain by whom. Like- of Administration Fake Security Program Chairman of the House Committee on which is holding hearings on the Roosevelt Adm ness and notorious labor spy and} implicate | strengthening. Its cadres of mili-| pebreatenen'" buts does | tary leaders is steadily growing. The workers and collective farmers, all (Continued on Page 2) Pees Miners Take to Pits In New Strike | PECS, Hungary, Jan. 31. — Be- cause all promises of relief and in- creased wages were broken, 4,000 miners here, who last October threatened mass suicide by remain- ing in the mines, today remained below surface. They are holding forty hostages, men who refused to participate in their previous strike. They have in- formed the mine management that they will remain underground, re- | gardless of the consequences if their demands are not met. The mines are owned by a British cerpora- tion. The mine owners declare the strike is “purely political,” and are refusing to grant the miners any concessions, The whole world was aroused in the previous strike when the min- ers seized Social-Demacratic lead- ers who were sent down to urge then to stop their suicide threats. Wken the miners finally ended their strike, after demands had | been met, the leader of the strike, a Communist, was taken to police | Richard WashburnChild, Hearst Writer and Pal OfMussolini,Dies inN.Y. Richard Washburn Child, 54 friend of Mussolini and former American Ambsasador to Italy, died here at his Park Avenue home of pneumonia late yesterday. Child gained prominence as an outspoken defender of fascism, and in his recent articles for Hearst he urged the development of fascism in this country to fight Commu- nism, He supported Roosevelt for Presi- dent and organized a Republicans- for-Roosevelt-Club in the last presi- dential elections, A rich man, and an unscrupulous servant of Wall Street, Child re- ceived many honors from foreign headquarters and flung out of the window. | wise he was | not know by whom. When he left Sacramento he went to Soldiers Grove, Wis., he testified, and not to Prairie Duchien as reported by Mc- Allister, then District Attorney, in his statements to the press that Hanks had been “put on the spot” | by Communists, who were said to be | holding him in Prairie Duchien. | Ysterday, under coaching of the prosecution, Hanks “recognized” more than a score of pamphlets as purchased by himself from the Workers Book Store, but today when defense showed him the same pamphlets and questioned him he contradicted his previous testimony. | He was not certain if he had pur- chased the pamphlets, he stated Hanks was still on the stand when | court adjourned today. | The defense of the eighteen Sac- ramento defendants is being con- ; ducted under the direction of a united front committee composed |of delegates from the Communist Party, the Socialist Party, the In- ternational Labor Defense and | other groups. The Northern Califor- nia branch of the Civil Liberties | Union is assisting the defense, al- though not associated with the | united front commitfe. Georgia Legislators | Ask Hearst to Give | Talk on Communism ATLANTA, Ga., Jan. 31.—William | Randolph Hearst, millionaire advo- cate of fascist suppression of work- ing class rights and organizations, has been invited by the Georgia | House of Representatives, by an | unanimously adopted resolution, to address the House on Communism. Detachments of Manchukuan and Japanese cavalry continued to push forward today into territory of the | MUKDEN, Manchuria, Jan. 31.— Japanese Cavalry Invades Mongolian People’s Republic | the Manchukuo Mongolian border. | The defending Mongol forces were | reported as retreating. The excuse of the Japanese that Mongolian People’s Republic in the | the slaughter at Kalkha Miao took long-planned provocative invasion | place because of a dispute concern- of that state, which maintains the ing fishing rights is taken for the friendliest relations with the So-| usual deceptive propaganda. viet Union. | It is commonly taken for granted This open imperialist attack upon | here, even in authoritative circles, the Mongolian People’s Republic| that the ipvasion.of Outer Mon- commenced yesterday with a vicious | golia is part of a premeditated and sudden drive by the Japanese | thrust aimed at the inner Soviet at Kalkha Miao, on the northeast-| border and finally at the Trans- governments, ern shore of Bor Nor, a lake on| Siberian railroad. POLICE CALLED TO EJECT FIGHTER FOR H.R.2827 SE SESSION ittee Coddles Supporters Social By Seymour Waldman hisetew Bare an. § ~Police called by of North C Con- Democrat, and ‘olin Ways Means tion’s y” bill, today violently ejected Herbert Benja |retary of the Na Exec jonal Joi | comm: ittee for Genui: |surance, ten minutes a |begun his criticism of the Admini {tration measure, Benja |placed under tem half an hour and r jter the commit | Doughton (Benja tirade agair the Administra after Benjam Wagner-Lew program wealth and profit of a few the demands of the surance that they © vation while there is “The Ways and Means C: has ... proved that Wagner-lewis bill posed upon the ma. help of brutal poli jamin declared in a statem to the Washington press corps af- ter his release. “In calling the police to eject the representatives of the most con- cerned with the problem of unem- ested ness ) has engaged e Comm n” immediately ployment and _ social urance,’ Benjamin said, “The Hi Vays and Means Committee r the correctness of our every charge. We stated that the Wagner-Lewis bill was referred to this Committee and not to the Committee on Labor where such measures would ordinare ily be referred, because the Ad- ministration wants the hearings conducted by a committee that ‘can be expected to discourgae opposition opinion’,” $15 Ample—For Epstein The ejection of Benjamin, who was granted only ten minutes speak- ing time by the Roosevelt Commit- tee machine, contrasted sharply with the Committee’s coddling of Abraham Epstein of New York, the representative of the American As- sociation for Social Security stein lauded the “whole soci gram of President Roosev |pleaded with the comm give too much to the aged n dollars a month, he said, “is an ample provision” for the aged Epstein spoke for an hour and a half without any objection from any committee member. Epstein prefaced his cringing and fawning ith the statement that “the whole social program of Pr dent Roosevelt does mark perhaps jthe most outstanding. courageous, and daring program that has ever (Continued on Page 2) Scottsboro Quota Set Ry Penver By George Kaplan Denver District Secretary. Tnterna- tional Labor Defense. The. Denver district has decided to raise its quota for the Scotts- boro-Herndon Defense Fund from the fifty dollars suggested by the National Executive Committee, to one hundred dollars, and has pledged to raise this sum immedi- ately. We will raise this money through mobilization of every organization |sympathetic to the cause of the freedom of the Scottsboro boys and Angelo Herndon, especially through the actions of our branches over four Rocky Mountain states. Our district challenges every other district of the International Labor Defense to double its quota, and fulfill the increased pledge, {for Scottsboro-Herndon defense. { Funds urgently needed to carry jthrough the United States Supreme Court appeals in the Scottsboro and Herndon cases should be rushed by air mail to the national office of the International Labor Des fense, Reom 610, New York City. 80 East lith St, : , : 7 t t i