Evening Star Newspaper, November 11, 1923, Page 33

EDITORIAL SECTION - EDITORIAL PAGE NAi!lONAL PROBLEMS SPECIAL ARTICLES Part 2—18 Pages BUDGET ABOLISHMENT MERELY A BUGABOO| Federal Officialy In and Out of Con- gress Firm for System Saving Many Millions to U. S. BY WILL P. KENNEDY. HE federal budget system doesn’t stand in any danger of being thrown in the dis- card. It is doubtful if ten votes coulé Se mustered in the House or five in the Senate for abandon- ment of the system. All this furore about a drive against the budget system and a return to “pork-barrel”, legislation in making federal apbro- priations apparently is nothing but a straw man set up to be battered down by interviews, as off-sexson target practice. v This is the consensus of opigion of federal officials and membersy of Congress in Washington and as msny others in all parts of the countryf as could be reached. Civic and busirgss leaders and specialists on good ernment protest unanimously "taat they have been unable to find any one of importance or any organiga- tion striving sincerely to do away with the budget. M Has Support of Country. ¥ Of course, there may be a few mpf- bers of Congress who like to enf® power and to whom any restraint yr control is irksome; who may pretend to a desire to go back to the old sys- tem, but the evidence is overwhely- ing that the new system has the en- thusiastic support of the country. ¥o greater political blunder could be made than to wreck, or weaken in any way, this federal budget systeim, which was in both party platformss. Members of Congress are beipg warned by the most influential ingi- viduals and groups of their constgt- uents that the federal budget must stay. 3 When Congress acquiesced in tje proposal for a federal budget systefn, on which interest of those advocatifg government reform has been focustd since the President's commission en economy and efliciency was set ¥p more than twelve years ago, and¥a single committee of thirty-five merh- bers was vested with entire contrbl over the appropriating of funds, there was, naturally, disgTuntlemegt on the part of those members ¢f other important committees who hail to surrender some prestige. A fe® of these may want get the ol system back, but they can't stand up | against strong public opinion and lh' busin intere: of the country. There are two phases of the budgel aystem: (1) The formulation of thq budget; (2) action upon the budgety The budget and accounting act off 1921 provided for the formulation of the budget by the President, and gave: him an agency—the bureau of the ‘budget—through which to performy this duty. The result of this system lsyl that the estimates of expenditurey| needs as formulated by the spendin services, instead of going to Congres: without any check or control by (hl!' Executive—or any one interested in’ protecting the Treasury—now have tog undergo a rigid examination by an officer of the government. This officery meet those expenditures. Now the President considers these estimates not only with reference to their in- trinsic merits, but with reference to the condition of the public purse, prospective resources and the broad Policies of government. He, the President, is under the strongest possible incentive to keep the total asked for within the total anticipated revenue, so that he can retratn from asking additional taxes and, if possible, show a surplus avail- able for reducing the public debt or reducing taxes. The new system has meant the com- plete change of aim from one where the efforz was made to secure the maximum grant of funds to one where effort is made to keep and demand within the lowest limits compatible with the public welfare. Furthermore, after the grant of funds is made the President Is under ) the strongest possible incentive to control the expenditure of the funds granted, in order in this way also to have the administration show a sur- plus rather than a deficit. Under the old system the spending services al- most as a matter of course pent all the money given to them. Under the new system the President, In effect, says to the spending services: “See how far you can go in the way of carrying on your activities properly without spending all the money that has been allotted to you.” Savings Run Into MIllions. . There can be no question that un- der the new system, with Incentive placed on restriction of estimates and expenditures rather than secur- ing the largest sum possible and spending it all, 'a saving running into many millions of dollars a year has been effected. It is inconceivable that there can be any real demand either inside or outside of Congress to give up this good system and revert to the old vicious plan. Now, in regard to the second phase of the budget—action upon it. Under the old plan there was no one com- mittee having the duty and responsi- bility of protecting the Treasury. The old committee on appropriations sought to do this in a measure, but its hands were tied by the fact that the framing of many appropriation bills rested in other committees. These other committees were inter- ested in securing funds for particu- lar branches of the government and did not fecl that they had any re- sponsibility for general financial operations. Under the new system, to this one committee Congress and the people look for the protection of the Treas- ury by keeplng down the grant of funds in the same way that the peo- ple now look to the President to keep down requests for funds and to see that fufds granted are only expend- ed as imperatively necessary. In brief, a system of rigid control is' interested rather in protecting the Treasury than in seeing the maximumy grant of funds. Estimates Now Considered. all along the line, with a definite location of responsibility, has been substituted for one where real con- ¥trol was almost wholly lacking and Furthermore, under the old system, yresponsiblilty was so diffused that formulated by the estimates were none could be held to account for ex- ¥ spending services without reference jtravagance in the requesting, voting to the income available with which to gor expending of public money: La Follette to G::D on Warpath In Congress Against Combines An bpen season on alleged trusts and monopolies will be the feature of the next Congress, 1f Senator Rob- ert M. La Follette, republican, of Wisconsin has his way. And Senator La Follette may have his way, as he will dominate a group of republicans much more radical in their political philosophy than the G. O. P. of the northwest, who, on paper at least, will hold the balance of power in the next Congress. What La Follette believes and says 1s, because of the position he will hold in the next Congress, more im- portant today, both to those who agree and those who disagree with him, than at any time in his long and spectacular political history. Congede His Power. Just now he is in Europe and re- publican conservatives and radicals alike are anxiously awaiting his re- turn. His political influence today is powerful, not merely in his own state, but also particularly in the states of Washington, Minnesota and the Dakotas, and generally in every farming community in the great west. If he can keep his followers together he will play an important part in the organization of the next Congress, in the legislation passed by that Congress. Many believe he will enter the next republican national convention as a candidate for the presidential nom- ination with a sizable block of dele- gates. He has much power either to assist or retard the progress of the Massachusetts man who is now Presi- dent. In reply to guestions as to what he considered the important work before the next Congress, Senator La Follette called attention to state- ments he has made since the adjourn- ment of the last Congress. These angwer the questions and indicate ‘what he and his supporters have in mind in tae way of legislation in the next Congress. Charges Price Contrel. The one great issue now confront- ing the American people, he belleves to be the demolition of the ‘“small but powerful groups which have ac- quired a monopoly of power in every braach of industry.” . “Each group,” he charged, “dictates ' | hrices in its own fleld—in cod, irom, Vil lumber, sugar, meats, clothing, in short, in mining, manufacturing, transportation and all Tusiness enterprises in the country. Through grain exchanges, elevator combinations and packer combina- ons, markets are manipulated and ices fixed on all products of the farm. . “Monopoly is absolute master of every product necessary to feed, clothe, warm and sheiter the human bady.” important Coal Monopoly Alleged. ne of these alleged monopolies, atcording to La Follette, controls the anthracite coal industry. ‘The one outstanding fact in the nopoly of anthracite,” he said, “Eas beén the control of the in- which, in turn, are controlled . by New York banking houses, domin- atyd by J. P. Morgan & Co. and the it:onu City Bank. The seven rall- s which control the anthracite ingustry are the Reading; the Dela- Lackawanna and Western, the igh Valley, the Erie, the Dela- wére and Hudson, the Pennsylvania apd the New York, Ontarlo and ‘Western.” Senator La Follette declared, in effect, that there s law emough to break up this monopoly, which is exercised Indirectly, he sald, but that the law has never been enforced, Hits Lumber Shortage. There s a lumber monopoly, oper- ating through eleven regional as- sociations, according to Senator La Follette, who declared that its high prices forced the housing famine of 1919 and 1920. Basic food products are controlled by & packers' monop- oly and sugar by another monopoly, he asserted. In addition to the attacks which will be made upon alleged monopolies in the next Congress by the La Fol- lette group—attacks which will be made in harness with demands that President Coolidge and the Depart- ment of Justice break them up, the ‘Wisconsin senator and his followers will seek to prevent the Interstate Commerce Commission from making valuation of rallroads on the basis of their reproduction cost. & The Sundiny Shar. WASHINGTON, D. C, SUNDAY MORNIN( BY N. 0. MESSENGER. AST Tuesday’s state elections gave the politicians a lot to talk about; the democrats talked in terms of jubila- tion and gleefulness, while the repub- licans were disposed to minimize the national significance of the overturn in Kentucky and the democratic majority in Maryland, and were powerful thankful that they saved their own bacon in Vermont and New York. They could not convince Judge Hull and the demo- cratic managers, however, that the result of the elections was anything eise than “The handwriting on the wall,” spelling democratic victory in 1924. These politicians do have such a time get- ting different squints on the same object. * % %k % Boss Murphy of Tammany bagged two birds as the result of the election in New York. He put over his judicial ticket, elect- ing his supreme court candidates, which ob- jective was very close to his heart. Then he witnessed the discomfiture of William R. Hearst, who, in opposing the Tammany can- didates, was declared by Murphy and Gov. Smith to have read himself out of the party. Mr. Hearst, however, did not seem to mind; it isn’t the first time ‘Murphy and Hearst have fallen out and “made up.” * k k¥ Boss Murphy and Gov. Smith were dread- fully disappointed, however, in not getting the lower house of the legislature—called the assembly. The republicans increased their hold by six members. That means that Gov. Smith and Mr. Murphy will not be able to pass some legislation very much desired by Tammany, which “needs it in its busi- ness.” * % k% ' Senator Hiram Johnson continues to be in ‘the spotlight of political curiosity, with the politicians fairly holding their breath, as to whether Re is going to announce his can- didacy. A week ago one of his supporters in Pennsylvania said he would come out within a- week. The prevailing belief among politicians is that he will yet declare him- self. California will then have two candidates for the nomination in the field, as William G. McAdoo is going home to make his an- nouncement of candidacy for the democratic presidential nomination. It is presumed he will claim California as his state. Born in Georgia, moving to Tennessee, then to New York and on to California, he has a wide range of states to claim him as a “favorite son.” * %k %k X The republican leaders of influential weight in the party councils still have their stacks of red chips on President Coolidge. The threatened or impending candidacies of Senator Johnson, Gov. Pinchot or Lowden do not dismay them. Forecasting the nomination of President Coolidge, many of the leaders are talking about candidates for second place. Senator Capper 6f Kansas is frequently mentioned. He will receive the “favorite son” vote for first place, and if President Coolidge were out of the running he would give the field a tight race for the presidential nomination, it is thought. * X kX ¥ Senator Watson of Indiana, it is said, would have a look-in for second place on the ticket if he showed up at the convention with his state delegation solidly back of him. But the republican party in Indiana is in one grand old factional fight, a marvel to behold, and which is prematurely aging the leaders. It is noted that Tom Taggart of French Lick is wearing a beatific smile as he contemplates the plight of the republicans in the Hoosier state. * * X X ¥ Senator Lodge said the other day that the New England states would form a bloc in support of President Coolidge for the nomination. Out west they will make wry faces at the suggestion of New England solidifying for the President. People of the east can hardly conceive the amount of jeal- ousy there is in the west over the ascendancy of New England in Congress and the govern- ment, unreasonable though it may be.’ The “green-eyed monster” is fairly raging there. Which consideration is causing many of the leaders to think that the vice presidential nomination will, of necessity, be given to the middle or the far west. . NOVEMBER 11. 1923. THE PASSING SHOW IN POLITICS The democratic political leaders are pay- ing increasing attention to Senator Copeland of New York as a presidential possibility. The senator happily is not up as a target to be shot at by the friends of the other candi- dates, for as soon as they start to bend the bow, he says, they are shooting at the wrong fellow; he is not a candidate; he is for Gov. Smith for the presidency. . But none of the real powers-that-be in the democratic party really believe Gov. Smith is possible, so when his name is finally dropped in the balloting, or Boss Murphy withdraws it, it is to be expected that eyes would naturally turn on Senator Copeland, who will be one of the delegates-at-large to the convention. * * %* * Boss Murphy is at French Lick, hobnob- bing with his old crony, Tom Taggart. The failure of Gov. Smith to carry his assembly no doubt will be brought up, and a steno- graphic report of their conversation on al- ternates would be highly interesting, prob- ably disclosing the name of Senator Cope- land. The thought occurs, however, would Boss Murphy’s feud with Mr. Hearst work to Sen- ator Copeland’s disadvantage with the Tam- many leader, the senator being a friend and political protege of Mr. Hearst? The hard- boiled democrats in New York would guess in the negative, taking the ground that Mr. Murphy would not let a little thing such as a personal feud stand in the way of the pos- sibility of getting New York the presidency. * ¥ X ¥ Mr. Murphy has been so accustomed in the passing years to be described by the edi- tor as having horns and hoofs one time and wearing a halo the next that he probably kardly knows which is his rightful char- acter. The nomination of Senator Copeland, the politicians say, might cause Mr. Murphy to recall his excommunication of Mr. Hearst from the democratic party and take him into the fold as a prodigal son returning—once more. U.S.Labor Costs Declared So High British Manufacturers Will Win World Trade BY DREW PEARSON. NGLISH manufacturers have nothing to fear from Ameri- can competition. American la- bor costs are so high that un- less they are drastically cut, the TUnited States, within the next eight- cen months, will suffer a serlous three or four year economic depres- sion. This emphatic warning was given | me by Sir Arthur Balfour, who, as president of the Associated British Chambers of Commerce, manager of Sheffield’s foremost tool steel works and frequent visitor to the United States, has a keener Insight into Brit- ish and American trade rivalries than any other man in the United King- dom. & The “man fra Sheffield,” as he is popularly called in London, has a warm spot in his heart for the United States, even when he is fighting American steel competition and American tariffs, for when only nine- |time to break labor of the unem- ! vloyment habit.” “Would you advise the United States to adopt the dole system?" “I certainly should not.” “Why, then, did you adopt it in England’ Relled on Taxation. “ft was a necessary evil. What could we do. We had between one and two million people out of work. We could not let them starve. Any other nation faced with the same situation would hav>s done the same thing. “Where did all of the relief money come from?* . “Chiefly from the upper classes by taxation. Public assistance cost about £350,000,000 last year and all but a negligible pqrtion was raised by taxes. Let me show you some inter- esting figures which will give an idea of the burden borne by the British moneyed classes.” As president of the Associated Sir Arthur Balfour Says t— “American labor costs are so high that they menace the Unit- ed States with a serious eco- nomic depressiop.” “English manufactarers have nothing to fear from American competition in the world mar- kets on account of American costs of production.” “The consumption of beer and spirits in Great Britain has greatly decreased since 1913.” “England’s experience in the handling of industries by gov- ernment has killed for all time anmy notions which existed re- garding nationalization.” “Unemployment insuranceand teen he began molding car wheels for the New York Car and Wheel Works and at twenty-one became manager of that organization. Since then he has kept up his contact with his “American cousins” during twenty- seven trips across the Atlantic, on one of which he was asked to give public testimony before the finance committee of the Senate. Has Workers’ Goed WIIL Unlike some of his fellows among British captains of industry, Sir Ar- thur has retained the confidence and good will of his workers. His secret, according to one of them, “is his pow- erful, dynamic personality and his simplicity of manner. He can g0 among us and talk to Jim or Harry about crusibles or melting as if he were one of us, and yet knowing more than all put together. I would rather work for Arthur Balfour for & few hundred less a year than for any other man in England.” Although essentially a business man, Sir Arthur gives unstintingly of'his time to his government, to his city and to his associates In grati- tude for his services to Belglan ref- ugees, the city of Liege has named the avenue from the Commune to the war memorial, “Avenue Chevalier Arthur Balfour,” and when he re- relief doles have put a premium on pauperism and done more to debase English character than anything I Know of in history.” Chambers of Commerce Sir Arthur has figures on everything in the em- pire. He slipped a file on the big mahogany desk and used his pencil as a pointer, “You see that of the 47,000,000 peo- ple in the United Kingdom, only 17,500,000 are parliamentary voters. Of these, 5,000,000 are liable to the income tax, but 2,600,000 are ex- empted by allowances, so that the bulk of British taxation is borne by the remaining 2,400,000. And ac- cording to our equalization law, part of the taxes raised by the wealthy districts are applied to bolster up the taxes of the poorer areas. For instance, the rich shopping section in the West End helps to pay for the unemployment relief in the slum quarter of Poplar. Computes Cost of Relief. “To give you an idea of how this heavy taxation hampers the manu- facturer, I have computed the cost of poor relief taxes which must be charged up against every piece of steel which leaves my factory, and I find that last year every steel axle had its cost increased by 59 shillings 1% pence, as against only 2 shillings 7% pence in 1914. So remember that while wages paid in England do not “But American industry seems pros- | it is thrown out of office at the next perous,” I reminded.him. election. “Yes, but it won't last. You are| «England will always offer a free filling the demands of your local mar- [ market for the entry of goods from kets, which since the war have been | the United States. All she hopes for dormant. Your prosperity may con- |is a square deal in return. We de- tinue for some time—say, eighteen ! gire to live, work and pay for what months, but not much longer. With|we owe, but it the United States pre- your present high cost of production |yvents us from trading, we shall be :nn mm‘:t‘mmvets in world markets. | ynable to do s0.” in my opinion America is shortly due for thres o four years of industridl | | Fers 1 broke I 10 m‘ e fapeeenten. its feet, all of the cities were still facing fnd Swhat 1la gigantic unemployment problem. e sied “What,” I asked, “is the season?” “The. remedy is quits simple—on paper. But since the United States,| "PCFBaPs ome of the most important like England, is a nation compossd |Te&sons” Sir Arthur explained, ‘“is almost entirely of human beings, it will |0Ur System of unemployment in- probably take you three or four years|Surance or relief doles, which has of depression to understand that rem.|freauently pald men as much or edy. We in England experienced such |OTe than they would get if stead- a trade paralysis and now are just be. |llY employed and which has put a gining to wake up to the fact that the |Prémium on pauperism. Men have onfy remedy is to cut labor costs. got out of the habit of working. It was supposed to give them some- Hits U. S. High Tarift, thing for mnothing, but Instead it “You in America have a double lesson |TObbed men of their souls. It did is the remedy?” to learn. First, a reduction in the cost |Mmore to debase English character of production. Second, the truth of that | than anything I know of in history. old Ax:l:ym'llltl:hm wilt not buy, thou Ineficiency Is Charged. 1 ®Also it was ineficiently admin- nsb‘m“:m:;l: mflthmt. ':::,m,::']mena. Men had to stand in line upon his old verbal battlefields. He half a day every other day in order threw his words at me as if T were the |t FoPOTt that they were out of work tarlft commission or Mr. Fordney him. |%24 DY the time they had reported e = nizn et Racosds wers ot kept 18 & busines. were not kel - Teur- e makes It difficult|yiy, way, There were hosts of in- and sometimes Impossible for other |0 no ¥ B o o veriapping, nations to sell to you. Therefore we| iy o tremendous overhead ex- cannot buy from you. To complicate|eypenge. For political reasons these matters you now hold over oge-half | inspectors never refused relief to of the world's gold supply. Not n un-|any gne, There were cases in which mixed blessing for you, by the Way,|one member of the family, being out but perhaps a blessing to us. For now |of work, was drawing a dole, while that you have become the greatest|the other members were making creditor nation in the world, you will |smple wages to support him. In have to reconsider your ecomomic|some cases men actually recetved policy. Little as I understand Ameri-|more money idle than they did while can politics, I have noticed one thing|employed. It encouraged strikes, be- —that every time the republican|cause men could get doles while ro- party passes a high protective tariff fusing te work. Naturally, it takes equal your American scale, this heavy burden of taxation means practically the same thing. Every piece of steel we place upon the world market is that much more expensive because of poor relief taxation.” “Has not a considerable part of this relief money been squandered on drink?” I -put forward one of the favorite arguments of Lady As- tor and her prohibitionist sup- porters. “On the contrary,” returned Sir Arthur. “And here are some more figures which may interest you. Did you know that the per capita yearly consumption of beer in the United Kingdom actually fell from 27.9 gal- lons in 1913 to 15.9 gallons in 1925, the consumption of spirits fell from 0.70 to 0.36 gallons between the same years, while the consumption of wine remained about.stationary?™ y (Continued on Third Page.) ceived me he had already given most of the day to Japanese earthquake relief and to a meeting of colonial experts in preparation for the ime perial conference. America and England have emerged from the war the two greatest in- dustrial nations in the world. Which of the two is going to capture the world markets? That was the ques- tion 1 asked Sir Arthur Balfour as he sat at his desk in his office at the British Chamber of Commerce, and his prompt answer showed that it was a question to which he had given some thought. No Fear of Competition. “We have nothing to fear from American competition except in cer- tain specialized lines such as auto- mobiles. Your cost of production is too high. You have too many lux- uries and you pay your labor as much per day as we do per week.” BY OLIVER OWEN KUHN. HE monarchist revolution !s dead—long live the mon- archist revolution!” “One easily can imagine nationalistic schools of political thought in Germany so ‘hoching, they hear of the return of the former crown prince to German soil, follow- ing immediately upon the Ludendorft fiasco in Munich. ‘Where Ludendorft has failed, and, incidentallly, made himself the butt of ridicule, Frederick William may succeed. But he will not triumph without bitter opposition, for, from this time forward, it may be expect- ed that there will be a clear test of political strength between the Hohen- zollerns and Crown Prince Rupprecht, representing old Wittelsbach royalty. Socialist elements throughout Ger- many hailed the suppression of the Ludendorff-Hitler attempt to proclaim fascisti dictatorship throughout Ger- many, and momentarily rejoiced for the safety of the republic. But with the news that the former crown prince once more is on Teutonic soil and undoubtedly will be the magnet for political intriguing among the monarchist elements of Prussia, this rejoicing must have been short-lived. Furthermore, the return of the crown prince must have thrown consterna tion Into the camp of the Bavarian monarchists, headed by Chancellor von Kuehlling and Military Dictator von Kahr, who, though ostensibly having crushed revolutionary at- tempts in order to save the republic, merely were acting in order that their own faction might rally around Crown Prince Rupprecht and set in motion |® movement to seat him upon the throne of Germany, and not Freder- ick William, as was desired by Luden- dorff. Events Come Thick and Fast. Events have come thick and fast in Germany within the past week and though the political upheavals have overshadowed general economic suf- fering it nevertheless is a fact, that food rioting and disturbances, due sole- Iy to the chaotic econnomic conditions, have grown apace and are fer- tilizing discontent over prevailing political conditions. The outstanding event of the past week naturally was the united effort of Hitler to initiats his fascisti movement in apparently full hearted accord with Gen, Luden- dorft, leader of German armies in the world war. Both Hitler and Luden- dorft have been plotting ever since the treaty of Versailles to initiate subter- ranean millitary movements designed to eventually restore monarchial forms. Germany's future interests, they have maintained constantly, are in contra- diction to allied dictates and can only be achieved by eventual strong organ- ized resistance. Bavaria has been the rallying ground for monarchist machina- tion. Hitler's cause has been popular inasmuch as he covered his organiza- tion endeavors with the veiled threat against the treaty of Versailles and (14 | any German government that permit- ted fulfillment of treaty terms. LudendorfP’s Influence. Ludendorft, from the very begin- ning, s declared to have set in mo- tion movements looking toward not only the restoration of monarchial forms, but the restoration of Ger- manic influence throughout the length and breadth of central Europe, he be- lieving that only in German, Austrian and Hungarian united and success- ful effort could the allles be re- sisted, he well knowing the impoten- cy of Germany under allied stipula- tions in the treaty of Versailles and subsequent dismantling of Germany’s military and economic strength. Ludendorff was active in Vienna and Budapest within a year after the treaty of peace was signed. The mon- archists there began their planning looking toward simultaneous restor- ation of royal bouses. There was to be builded up a secret monarchial machine that was to strike when the opportune moment arose. The so- cialists of Austria and Hungary, ever alert, have fought constantly to counteract the evil effects of Luden- dorff's scheming. Though at various times it has been denied that Luden- dorff was active in formulating plans looking toward the overthrow of ex- isting governments, which were un- popular because of their having sign- ed the various treaties which are declared to have made Teutonic peo- ples and their allies vassals for dec- ades, these denials never have been taken seriously either in France or Eng- land, the powers keeping close watch on Germanic attempts to frustrate peace treatles. Hitler a Possible Teol. Having encountered serious stacles In Vienna before and after abortive attempts to reseat the Hapsburgs, Ludendorff turned his chief attention to Bavaria, where Hit- ler was operating and where, ap- parently, there appeared the best chance of using the discontented na- tionalistic and facisiti elements as a nucleus of an effective military force. Ludendorft has been in constant. touch with Hitler for more than a year. In ob- fact, events suggest the plausibility of the theory that Hitler, an Austrian, was sent into Bavaria by Ludendorft to organize the forces there, shortly after the general's first visit to Vienna in interest of the monarchist cause. When the time was considered auspicious, Lu- dendorft merely revealed his hand and- his active affiliation with_Hitler. Bavarians Suspicious. At all times, however, the Bavarian government, von Knilling in charge, has been suspicious of the fascisti. ‘When Hitler indicated that his move- ment would lead to the overthrow of the German government with the restoration of the Hohensollern dy- nasty, with subsequent rezistancs to TEUTON CROWN PRINCES TO ENTER TUG-OF-WAR Monarchial Movement Not Yet Squelched, William and Rupprecht Will Strive for Throne. allled dictates, both von Knilling and von Kahr, military dictator, made pronounced efforts to eradicate Ho- henzollern sentiment in Bavaria. For, does not Bavaria have a candidate for the throne of Germany in the per- son of Crown Prince Rupprecht, an idealized figure and an indirect suf- ferer through long years of Hohen- zollern and Prussian dictation? Fur- thermore, Catholic influence within Germany, according to the Bavarians, can be made paramount, Bavaria al- ways having been more or less rest- less under religious domination of the Hohenzollern Protestant faith. First reports indicated that von Knilling, von Kahr and even Gen. von Lossow, the reichswehr leader and Berlin's emissary to Munich, had gone over fo the Ludendorfl-Hitler regime. This was by compulsion, however, and that the Bavarian lead- ers were not of the Hohenzollern faith was indicated by their prompt turning against the Hitler-Ludendorft Porces, suppressing them and making Bavaria once more safe for the Rup- rechtites. The success of the Bavarian regime is halled with satisfaction as saving republican forms. But in view of the fact that BaVarian government lead- ers are pronouncedly monarchist in their political leanings, 1t may be ex- Dected they will continue to seek vic- tory over the Stresemann gbvernment in Berlin and eventual Bavarian dic- tation over the whole of Germany. Now May Lead Own Cause. It 1s known that the crown prince in his exile on Wieringen Island, Hol- land, since the collapse of the Ger- man armies in the world war, has jbeen in touch with Ludendorff and those monarchical elements in Ger- many sympathetic to the restoration of the Hohenzollerns. Ludendorff, exercising the same attributed cun- ning as in the world war, really was the fountainhead of the Hohenzol- lern movement and, in fact, any movement tending to lessen extreme burdens imposed upon the former heads of German royalty. Repeat- edly there have been rumors of the exile’s return to Germany. As re- peatedly have these proven hoaxes. Had Ludendorff been successful in Munich and had he pressed toward Berlin, it is believed that greeting him there would have been the crown prince, he to assume the ermine of the German empire. But Ludendorft has falled. He is thoroughly dis- credited, in fact, faces trial for trea- son. No longer can he carry the Hohenzollern escutcheon to success. There must be another leader. Wier- ingen hears of the famed general's fall. The crown prince, ready any- way for any eventuality In case of Ludendorfl's success, jumps into Ger- many, there to become the fountain- head of Hohenzollern monarchical scheming. And it is significant that the crown prince made his long-ex- pected flight just ahead of the pres- entation of the interallied demand upon Holland that he should be frus- trated in any and all attempts to return to Germany. May Mean Two States. Naturally it cannot be foreseen what the result will be in case he succeeds in rallying Prussian mon- archists about him. They might suc- ceed In overthrowing the Stresemann regime in Berlin and selzing control of Prussia, but it would not neces- sarily follow that Bavaria would es- pouse his cause. More likely, as a result of the conflict or diversion in Germanic monarchical forces, there would come to pass definite split be- tween Bavaria and Berlin, at least un- til such time as unity of action be- came essential in thl preservation of Germanic interest. {That this oppor- tunity would soon fdllow is indicated by the growing alarm in Paris over monarchical striving and the very-evi- dent plan to extend French control within Germany in case it is appar- ent efforts to overthrow the republic and seat in places of authority in- terests inimical to fulfilment of the treaty af Versallles are about to suc- ceed. | Already the allies have demanded the restoration of Interallied mili- tary control over Germany. Berlin resists on the ground that the se- curity of the interallied commission cannot be guaranteed in view of the antipathy now running at flood tide against the French. But whether Ber- lin consents or not there Is every indication that should the reich be iendangered or overthrown, or eithe: the Hohenzollern or Wittlesbach fol- lowers regain the upper hand, the German crisis really then will be come acute, inasmuch as both houses are sworn to tear the treaty of Ver. sallles to shreds and again figh France for the complete liberation of Germany. These are mere contingencles. It the meantime Chancellor Streseman: holds & tight rein on affalrs and ye may preserve the reich and avold th« almost certain penalties that will b heaped upon German peoples Tn cas: of treaty transgression. The Germar situation as a whole has done noth ing ‘more so far than to whet thi wits of allied chancelleries. No polic: or set of policles can remain fixec under present conditions. There mus be more definite trends within Ger many and without. Business Mars Relics. Englana s inherited the greates monuments of prehistoric ages tha are known. One of them, Stone henge, has been wantonly spoiled, i ts malntained by some, because ai immense aerodrome shed has bee: erected nearby. Now, Avebury an: Silbary HINl are threatened by th encroachment of modern buildings - Led