Evening Star Newspaper, December 30, 1923, Page 29

"EDITORIAL PAGE NATIONAL PROBLEMS SPECIAL ARTICLES Part 2—18 Pages BONUS ASRIDER TOTAXBILL MAY BLOCK COOLIDGE VETO President Faces Difficult Political Prob- lem as Foes Consider Methods to Pass Soldier Measure. BY G, GOULD LINCOLN. FEW months ago—even a few weeks ago—it appeared that little short of a miracle could prevent the final passage of the soldiers’ adjusted compensation “Bill, notwithstanding the expected presidential veto. Today the situation is vastly dif- ferent. Supporters of the bonus are face to face with growing opposition to the adjusted compensation BilL The latest poll of the Senate shows that already the list of senators who would vote to override the presiden- tial veto has narrowed so that only a few votes are between the bonus and ultimate defeat—and a number of those votes are very uncertain. Two factors are operating to aid in the defeat of the bonus legislation. The first is the desire for tax reduc- tion, which Secretary Mellon of thé Treasury Department has dangled in front of the eyes of the most heavily taxed Amerlcan citizenry—in time of peace—in the history of the country. When Mr. Mellon announced not long ago that the taxes could be reduced substantially there was a sigh of re- lef and much applause. But Mr. Mellon said, in effect: “You can't have your cake and eat it. to0; you can’t have substantial tax reduction and at the same time provide a bonus for the veterans of the world war that will run into billions of dollars.” Desire to Protect Coolldse. The other factor is the desire of the republican senators not to place the President, who Is the choice of many of them to succeed himself, in the position of being turned down by his party, should he veto a soldiers’ bonus bill, The question as to the justce of a soldiers’ bonus may be lost sight of in the coming struggle. On one hand may be arrayed interests which desire tax reduction, and milllons of the people along with them who do not wish to sacrifice tax reduction to & bonus bill. On the other hand may be arrayed forces which desire, above all things, to embarrass Mr. Coolidge, the probable republican nominee for President. There is no doubt In the minds of any one at present that a soldiers' bonus bill ean and wiil pass both the Senate and House and be sent to the President for his approval. - There seems to be almost as little doubt in the minds of many that such a bill would be passed over the veto of the President in the House. But whether the necessary two-thirds vote to override a presidential veto can be mustered In the Senate, is a horse of a different color. ‘When the President delivered his annual address to Congress, he curt- 1y dismissed the bonus with a single sentence, expressing his opposition to such a measure. He gave no reason dlrectly, though he dealt at length with the necessity of tax re- duction for the sake of the American people and American business—which, after all, must be closely allled—and he spoke of the need of giving all mecessary aid to the disabled vet- erans of the war. Tt is possible that the President. kpowing that he probably would be called upon to give or to deny his approval of a soliders’ bonus bill, determined to withhold his ammuni- tlon against a bonus bill until the time came to send a veto message to Congress. Undoubtedly it would be more effective, it is sald in some quarters, to_have the arguments of the Chief Executive presented at that time. They might reasonably be ex- pected to give to senators and repre- sentatives who had supported the bonus bill a ground for their refusal to vote for a bonus bill over the President's veto. But if the reasons of the President were given in ad- vance of the original vote on the bill in the Senate and House, the senators and representatives would be de- prived of such an excuse for shifting their position when they were called upon to override a veto. Oppoments Find Hope. It is true that Senator Smoot of Utah, one of the best informed mem- bers of the Senate, has recently de- clared that the bill will pass in the Senate over the President's veto— though he himself is opposed to the bonus bill. But the latest poll of the Senate gives-hope to the opponents of the bonus. \ Close figuring on both sides of the bonus question discloses that the sup- porters of the bonus today have only from two to four votes to spare when it comes to an effort to override the President’s veto. And with this close lne-up the supporters of the bonus must count on BSenators Lodge of usetts, Colt of Rhode Island, Hale of Maine, McLean of Conneocti- cut, McCormick of Illinois, Brandegee ot Connecticut, republicans, and Sen- ators Gerry of Rhode Island and Kendrick of Wyoming, democrats, to vote to pass the bill over the veto. Some of these senators may.find in the veto message of the President good and sufficlent reasons for not so voting, it is sald. Senators are being deluged with lettérs in epposition to the bonus from their own states. It has been ‘variously estimated that from twen- ty-four to twemty-seven senators will vote against the bonus bill on the original vote. The probability is that twenty-six will vote against the bill and the rest will support it. Thirty- three votes can prevent the passage of the blll over the Presideat’s veto. 'In other words, If seven senators who vote for the bill are unwilling to vote for its passage after it has been vetoed, the bill cannot finally pass. Already assurances have been given that three will not vote to pass the igeasure over the veto. This makes | it necessary for the opponents of the Lill to find three more senators who |, will not vote to override the veto. Furthermore, a responsible official of a veterans' organization has recent- 1y expressed his private bellef that the bonus bill cannot pass over the President's veto at the present ses- slon of Congress. He bases his state- ment on the growing demand for tax reduction among the people. This demand, he believes, will have suffi- clent influence upon members of Con- gress to prevent action in spite of the President's disapproval of the bill. When the ways and means commit- tee of the House recently decided to take up the administrative features of the proposed tax reduction bill be- fore considering the soldlers’ bonus measure, it was, in a2 way, a set- back for the bonus bill. It is recog- nized that opposition to the bonus is growing the longer it is delayed. The supporters of the bonus are at a loss today when it comes to estimat- ing the strength of the opposition. In one respect, it might be good tactics for the opponents of the sol- dlers' bofius measure to allow it to come up for consideration first, pro- vided they are -confident sufficient strength can be mustered to prevent its passage over the President’s veto. Because if it finally failed, the bill would not likely come before the Con- gress again at the present session. On the other hand, if the tax bill were trotted out for inspection and action on the floor of the House and Senate, supporters of the bonus bill might find a way of adding to the tax bill the soldlers' bonus measure —as an amendment. Then the two measures might go through the Sen- ate and House together as one bill, and he presented to the President. The President cannot veto part of a bill. His veto would run against both the bonus and the tax reduction pro- posal of Congress. Might See Both Passed. ‘While it is believed that the Presi- | dent would veto such a combined measure if presented to him, on the other hand it might result in the pas- sage of the two over his veto, or in his political enemies being able to block all other tax reduction legis- lation with the idea that people would place the blame on the Presi- denit for faflure of the tax bill along with the bonus measure. Whils ther® Tias been much discus- sion over the bonus bill and whether it should have the right of way in Congress, apparently the legislation for the benefit of the disabled veter- ans has been temporarily, at least, overlooked. Months ago the various soldier organizations agreed that the legislation for the disabled should be glven precedence, even over the bo- nus. The disabled were to be the first care. The American Legion con- curred in such an arrangement. A campaign was conducted among mem- bers of the Senate and House in sup- port of giving priority to legislation for the disabled veterans, and many of the members of both houses com- mitted themselves to that idea. sailors ahead of all others in bene- ficlal legislation was given indorse- ment by President Coolidge, too, in his message to Congress. Five Bills Introduced. Bills covering the five major points of the Disabled Veterans' Association have been Introduced, and, in addi- tion, Senator Walsh of Massachusetts has Introduced three more to ald the disabled, The measures introduced through the Disabled Veterans or- ganfsation provide for the creation of a veterans’ affairs committee in the House to handle all legislative pro- posals relating to former service men, opening of all veterans' hospi- tals to the soldlers of all wars re- gardiess of the origin of the disabil- ity, retirement of pernvanently dis- abled emergency officers of the Army on the basis that applies to disabled emergency officers of the Navy and Marine Corps, liberalization of the laws governing reinstatement of in- surance in the Veterans' Bureau and completion of the permanent hospital program. The bills introduced by - Senator ‘Walsh provide for free hospitalization for all world-war veterans suffering from neuropsychiatric and tubercular diseases; removal of the stipulation in the present law that a veteran must be examined within three years from the date of discharge to avail himself of the presumption that his affliction Is of service origin, and to grant compensation in certain cases to dependents of deceased soldiers Urges New Mail Bag and Shoes Uncle Sam -is taking a humanita- rian interest in his employes. Espe- cially is he desirous of lightening the load of those who afford personal contracts between the federal gov- ernment and each individual citizen by delivering mall at your door. An- ticipating the usual heavy loads dur- ing the Christmas season, Postmaster General New has notifled Congress that & study has been made of the design and method of supporting let- ter carriers’ pouches with a view of making a comfortable suspension and 2dding to its convenience. Also a high-grade shoe of winter and summer types, meeting With the approval of the United States public health service for orthopedic con- struction and of the bureau of stand- ards for quality of material, has been placed on sale through a special agent. This permits carriers and other em- ployes to provide themselves with a high-grade shoe, suitable to their needs, at the cost of manufacture. - EDITORIAL SECTION The Sunfly Star. WASHINGTON, D. C, THE PASSING SHOW IN POLITICS BY N. 0. MESSENGER. | ONGRESS will reconvene nesday under ee on interstate of the com ways and means committee of pat.” * % ok ok The new year will set in with presidential politics taking a fresh breath and ready for a running start toward the ides ber. tee to be held in this city. Chicago is still touted as the likely selec- tion of the committee, which is taking into account the size of the monetary contribution the selected city will turn in to the committee. X ok %k favorites which | Housekeeping, and shows some of the other sixteen men balloted BY OLIVER OWEN KUHN. 8 Europe about to produce an- other queen whose name will g0 down through the ages as have the names of Catherine the Great and Victoria, who played a forceful part in shaping political trends and thereby Influencing largely the des- tinfes of the old world? This question naturally arises in view of the activities of Queen Marie of Rumania, who today is playing the contfnental political cards with a hand as firm and sure as gny of her royal predecessors and whose vision embraces alignments possibly des- tined to alter, if not wreck, the smooth-running political plans of the larger powers. Queen Marle, charming as a wom- an, beloved as a queen, nevertheless bas the firmness of a Napoleon when bent upon realizing her ambitlons, whatsoever they may be. She is the dominating force in Rumania today, the king being well content to mere- 1y lend himself to her plana be they nationel or International In char- acter. Her war-time activities for the allled cause brought to her the plaudits of the world. Her energy in rehabllitating Ruman!a subsequent to the war, coupled as this task was with far-flung deflance to the Rus- stan soviet in the matter of Bessa- rabia, has been inspiring, even though Rumania today by virtue of her war- time sufferings and dislocation of finances and economical structure yet has far to go. Queen Has a Vision. In the midst of her after-the-war undertaking the Queen of Rumania had a vision. It was clear cut, suc- cinct. She saw opportunity of linking her own royal household with those of Greece and Jugoslavia. Through marriages of her daughters with the young King of Greece and the young King of Jugoslavia she accomplished her purpose in this respect, at least. Her maneuverings in Balkan politics leading up to the marital reapproche- ments of the three royal houses were watched with smusement, but, never- theless, with an underlying feeling of admiration and respect by Paris and London. Whatever the obstacles before her, the queen surmounted them, oftentimes in as firm fashion as a man in like circulstances with like ambitions would have done. With a daughter sitting upon the throne in Belgrade, with another presiding over the roysl palace in Greece, the queen in Bucharest undoubtedly saw consummation and perpetuation for an untold number of years of her real ambition—the force dominating her every plan—a Balkan confedera- tioh of mations firnily dominated by her own force of character—a feder- ation that must be considered in the' councils of the continent and one which might bring untold prosperity by virtue of political as well as economic alliances. Queen’s Plams Disturbed. But a disturbing factor has arisen in Queen Marie's plans for the fu- ture. It is none other than the ouster of her royal son-in-law from his throne in Athens. There is serious question as to whether Greece ever will be a monarchy again, and as a consequence the Balkan confedera- tion proposed by the queen suffers a setback. ‘W1l the queen yet be able to bring ! pressure to bear upen the Greeks and lowering political skies for the republicans. in the Senate over the chairmanship with the radicals and progressives holding the balance of power, and a squabble in the over tax reduction will start the legislative machinery with sand in the bearings. During the holiday recess ineffectual ef- forts were made to iron out the wrinkles in the Senate situation, and the week starts with all sides to the controversy “standing Day after tomorrow we will be in the fateful presidential year, and politics will be the vogue for the next ten months. conventions and primaries for the selection of delegates to the democratic and republican conventions will follow in succession up to thirty days before the convention. ocrats will choose their convention city Jan- uary 15 at a meeting of the national commit- That is an interesting poll of presidential is being taken by Good markable results of the state of political sentiment existing among woman Some 81,000 ballots have been tabulated, out of which President Coolidge received 52274 votes, twice as many as the combined vote lowést vote in the poll was made by Gov. Alfred E. Smith of New York, who received 37. Who says the women are not sitting up and taking notice of wet and dry politics? William G. McAdoo led all the democratic with 6,611. next Wed- Disputes candidates, father-in-law, former the choice of 3,083. commerce, he House o e in the returns. 1,861, Senator Borah 451, Senator Pinchot polled 1,432.° William J. Bryan, was given 152, former the cabinet, Secretary * % of Novem- sive League. State The dem- league> * ¥ partisan legislation, said to be from Albany. wlike can favor. merit in some of his peated attempt to be watched with interest * % In the democratic rather reqy voters. upon. The RUMANIA’S QUEEN PLAYS VITAL POLITICAL ROLE Marie Yet May Take Place as One of Europe’s Greatest Rulers by : Political Activities. R s et the throne? Will. she, through her political T.aneuverng, be able to sway Veni- zclos, the most influentlal Greek statesman today, to her cause and, through him, bring about a restora- tion of the monarchy? Can he be swayed, or will he, capi- talizing his present great oppor- tunity, assume leadership in the af- fairs of Greece and preside over its destinies in much the same fashion as does Admiral Horthy in Hungary? These are a few of the manifold questions arising as a result of the return to Greece within the next day or 50 of the famous war-time premier, who reaped a great harvest for the Greek nation in the Paris peace con- ference only to have it bartered away by Constantine with his vain-glorious plan of restoring the ancient Greek Byzantine empire. Venizelos today has greater power than any one other Greek individual, the royalty not excepted. In several instances his theorles have been temporarily repudiated by the Greeks, but in times of travail the Greeks invariably have turned to their one great leader, their one far-seeing statesman, their one apostle able to adjust the peril- ous Grecian political situation in tune with the desires of the larger powers ‘upon which Greece today is 80 dependent. Possible Stand of Veniselos. Venizelos, in leaving Paris for Athens, stated emphatically that he would be neither king nor dictator, *| neither would he consent to head Greclan cabinet. He is going home to clear the atmosphere, and by his steadying influence bring order out of political chaos that Greece may not sink to even lower levels in the comity of nations. There are indications that Venizelos thay seck to preserve the old mo- narchial forms in Greece and uphold the cause of King George. But what he may or may not do is purely con- jectural. But one thing is agreed, upon Venizelos' course depend thc dreams of Queen Marie of Rumania. 1f she is the diplomatist she is ac- credited with being, the Grecian statesmen may yet be @ cog in her geperal plans. But both she and Venizelos, should they co-operate, will face difficult times, for pro- republic sentiment s running swittly in Greece. - A large section of the Greclan people are soul-weary of see- ing the natlon's prestige bartered by ruling houses, bpt if Verizelos can show that the best interests of Greece lie in the preseryation of monarchial forms King George may be restored to his thtope. But even in this eventuality the restoration may see him denuded of all responsible power and the actual operation of the na- tion placed in the hands of the gov- ernment selected through the medium of the electorate. 5 Works in Belgrade, Too. From all indications Queen Marie today 1s not resting content with in- datry activities among Greclan statesmen proper, but .her emis- saries are active in Belgrade, where the Serblan king has been asked to lend his Influence in pressure brought upon Athens In the inter- ests of the ousted couple. Previous\ to the meeting of the little entente in January there will be serious conferences between the emissaries of the Rumanians, Serbs Henry Ford got 5804 The Senate and the cabinet were represented Senator Hiram Johnson got La Follette 716, Senator Underwood 2,506, Senator Glass 61. and Secretary Hoover 2456. The Missouri Ford-: changed its name to the Missouri Progres- It took umbrage at Mr. Ford's declaration in favor of President Coolidge and charges the motor magnate with “de- serting the cause of the people” and aligning himself with the “reactionaries.” tion is—who will take over the votes of the Gov. Smith of New York will open the legislature this week with an appeal for bi He has a democratic senate and a republican assembly on his hands, and before the legislative body a number of bills which he thinks republi~ans and democrats But a similar situation existed last year, and the republicans were unable to see the politicians think that Mr. McAdoo and Sena- tor Underwood are settling down as the two HONDURANS DEFY U. S 'LIGHTING REVOLT FUS America Do? Now Ques- His distinguished President Wilson, was 3 party? Senator Ralston 103, Senator Gov. SUNDAY MORNING, DECEMBER 30, 1923. principal contenders for the nomination for the presidency, with the two-thirds rule mak- ing it a close race. The main consideration of the delegates, it is said, will be which of the two aspirants is calculated to be strongest in the eastern and central states as a vote-getter for the The democrats cannot look to the west for votes that will count. * %k %k ¥ / Hiram W. Johnson is expected to start out early in the new year on a speech- U. S. SAID TO OWN BY WILL P, KENNEDY. HE well-known “open-door” policy of the TUnited States, insistently flaunted to the world during and since the days of John Hay, is now being making tour, and Mr. McAdoo also, seeking support for their aspirations for the republi- the great commoner, Gov. Lowden 169. Ofi Hughes received 3,315 be calculat * % ¢ 3 what Sena for-President Club has G. O. P. words may The ques- * % according to reports they have can and democratic nominations. This will ed to force Senator Underwood on the hustings. The republicans are mightily worried over tor Johnson may say about the s it stands, and the “sting” his leave when the voting commences in November. Judging from the remarks he has made up to this time, he will not mince words in giving his opinion of the present make-up of the party, of which he is am- bitious to become the head. There is a sus- picion he doesn’t like 'em much. * % % ¥ Every member of the House of Represen- tatives and one-third the membership of the Senate must begin the new year by girding for battle for renomination and re-election. That seems tough luck for the new members of the House, who will have to talk before accomplished anything in legisla- tion to show as assets. propositions. His re- a peacemaker will be The democratic and republican congres- sional campaign committees will organize early in January, and will work later in co- operation with the national committees. The “hat passers” of the two national committees * * presidential field the campaign convention: What Will tion of Hour Election BY BEN McKELWAY. f HILE Uncle Sam watches with his fingers crossed, and Latin America looks on with bated breath, Honduras, with nary a glance to the right nor to the left, calmly prepares to start the new year according to all the traditions dear to the heart of Central America. The fuse has been lighted and the fireworks are due to start any minute. But it is neither the notse nor the brilliance nor the failing sparks that cause Uncle Sam to cross his fingers or Latin America to hold its breath. The interesting thing about this particular display of fireworks is that very recently Uncle Sam, with all his dignity, advised Honduras not to play with these fire- works. And despite this advice Hon- duras proceeds to turn up her own nose while she snaps her fingers uyn- der that of Uncle Sam and proceeds to light the fuse. Everybody, naturally, waits to see what will happen. The United States has trained ob- servera in the State Department who are so accustomed to the scent of revolutions in Central America that they detect the smell from afar off. That was the reason that noses be- gan to twitch sensitivey at the State Department as far off as last sum- mer, when it became evident that three candldates for the presidency of Honduras were to enter the race. The prognostications of those at the State Department were not difficult. When two candidates enter a race for the presidency of a Central American republic the sky begins to cloud up on the horizon and the race becomes crowded, to say the least. But when three candidates enter the fleld it is time to hoist the storm warnings and seek comfortable and .convenient shelter nearby. ‘Warned of Dangers. The United States, therefore, sent 2 note of warning to Honduras advis- ing the government that the presence of three candidates in the race for the presidency was not only unseem- 1y and unnecessary, but dangerous and suicidal, and that the wise thing for Honduras to do under the circum- stances was to reach a satisfactory agreement among the candidates which would permit two of them to run on an equal footing. But Hon- duras proceeded to attend strictly to her own business. The recent elections brought out three candidates, and the results are 28 dangerous as the warnings implied. Dr. Policarpo Bonilla, a former presiflent, and a former minister to ‘Washington, took the field at th head of one faction. Dr. Juan Arfas who back in 1903 seized the presidency of Honduras and actually held it for a short time, headed another faction, while Gen. Tibureio Carias, governor of a northern province, entered the race with flags flying and bands play- ing at the held of another faction. All three were elected president. That is, none of them was successful. It depends entirely on the point of view. The government, which supported the Bonilla and the Arlas factions, ad- mitted that Gen. Carias got more than 50,000 votes. It was likewise admit- ted that Bonilla got 35000, while Arias tralled along with a_poor 21,000. Gen. Carias had a plurality but lacked the necéssary majority, and in such a situation the conmstitu- that the are getting ready to go on their rounds for contributions, although the bulk of their work will begin after the nominating s have acted. violated by the United States gov- ernment itself in handicaps placed upon our nationals doing business in China, which give foreign rivals in commerce an advantage at the time when bullding up of trade in China is of vital importance. This s emphasized by Representa- tive L C. Dyer of Missouri, who re- cently returned from a trip to China to study conditions first hand, and who has in consequence Introduced a_joint resolution to liberalize the China trade act so as to afford “equality of opportunity” to Amer- ican interests in China. ¢ This legislation has the heartiest support of Secretary Hoover, Dr. Julius Kilein, director of the bureau of foreign and domestic commerce; Frank R. Eldridge, director of the far eastern division; Frank Rhea, registrar, and in direct charge of ad- ministration of the China trade act, with headquarters in Peking, China, and of the American Chamber of Commerce of China. Importance of Trade. The importance to this country of building up trade in China is ex- plained by Department of Commerce officiale. Before the European war there were only three or four im- portant American firms located in China and this country's share of China's foreign trade amounted to but 6 per cent. Today, it is approxi- mately 20 per cent. In 1920, we did $438,000.000 worth of business with China; in 1921 this fell to $260,000,000; n 1922 it was $275.000,000, and for the first nine months of 1923 it was 1 $250,000,000. as Result of Troubles. congress shall decide who. sctually won, Congress will meet this week. But the Honduran congress, being no ex- ception among congresses, is said to be hopelessly deadjocked. and no re- Teliet can be cxpected from a dead- locked congress. In addition, con- gresa is between the devil and the deep, blue sea. For, whichever way it should decide, observers say, the decision would only be the signal for a revolution. Gen. Carias seems to have come Into prominence at the head of a popular movement. His supporters have been open in threats of revolution and are sald to have declared that should congress fail to award the victory to their leader they will do what good Central Americans have done before them and follow the old custom of taking the government hand and fist and all that goes with it. But the present president, Lopez Gutlerrez, also knows which way the wind blows. Instead of waliting for the customary coup d'etat, which ordinarily would come from the party receiving the smallest number of votes, he breaks tradition and precedent and has the government engineer a coup d'etat ahead of scheduled time. According to repre- sentations,, the plan of the govern- ment is to hold the chief supporters of Gen. Carias as military prisoners until congress meets and decides that it was not Gen. Carias who won the election after all, but Dr. Bonilla. The government is alleged to support the Bonilla faction. The coup d'etat had its actual beginning December 21, when President Gutlerrez declared martial law and threw ' into prison about 200 of the chief supporters of Gen. Carias. Terror and Killing Charged. Gén. Carlas has claimed that the government not only terrorized his followers and actually killed some of them, but-falled to count several thousand votes cast in his favor and which would have - resulted in his election. He is sald to have offered evidence that government officials in |the interior were instructed to keep his vote down, in the hope and belfef that when congréss met the govern- ment would have a sufficlent majority to pronounce the election in fayor of Dr. Bonilla. While the stage is all set for a revolution, additional complications tcome up in reports reaching Wash- | ington that & band of soldiers crossea the border into Nicaragua and raided jthe\estates of the Nicaraguan min- ster of finance. This report was subsequently denled by the*Honduran ilegation in Washington. - | Within the past few days the State +Department has transmitted a sec- {ond note to Honduras through. the American minister, Franklin Morales, at Tegucigalpa, advising the govern- ment there that this country looks on present manifestations with high disfavor, not to mention disgust, and that such unconstitutional procedure as is at present evidenced in Hon- duras issufficlent to give every one interested an.acute pain. So far as known, Honduras has not replied, but goes forward determined to see the thing through. Tests Conferemce Theory. The trouble in Honduras is doubly interesting bedause it follows, by about & year, the meeting here last winter of representatives of the Cen- The United States has been doing business with China since 1884, but —all through the years we have been buying just about twice as much from China as we sell to China. It is at once obvious to all good busi- ness men that the sales of United States exports to China must be bullt up to a more even balance with what we import. “China, In her present state of awakening economic development, eonstitutes o market for practically everything produced in America*and her demands are muitiplying rapid- ly,” says Dr. Klein. But commerce experts and Repre- sentative Dyer, in his personal in- vestigation, find Americans endeav- oring to do business in China seri- ously handicapped because we do business there under treaties, which give the same rights as though we were doing business in the District of Columbla, subject to our own laws and with adjudications in our own courts—we do not have to reincor- porate in China. One result is that all of our companies and individuals doing business in China have fed- eral taxation applied just the same | as though they were in business in the National Capital, while their for- | elgn competitors in the China mar- ket are relleved of such taxes and 50 can afford to sell cheaper. Turn to British Firms. As a result of this a number of American concerns have been driven to the very dangerous expedient of putting thelr agencies in the hands of British firms instead of American firms, where naturally, American products will be given second con- sideration. There is also another danger that Department of Com- merce officials are deeply concerned about. If the United States does not take Its full share of business in China some other foreign country will get it and the balance @f tmde will be still further distorted. China’s trade is expanding steadily in spite of the internal disorders. On a silver basis there is a gradual increase year by vear in the total of China’s commerce, and the United States must take its share of this increase. tral American republics, who gath- ered to test the theory that the con- ference table is the modern and ac- cepted method of warding off dis- putes of all kinds between men and nations. The conference was highly | successful, so far as Washington was | concerned, and led every one con- cerned to sing peans of praise for the conference table method and to | forswear the ancient and accepted mode of revolution. Treaties of amity and good will among men were agreed to by all present amid hearty and prolonged cheers and the Central Americans packed their bags and I Society Newsfi VIOLATE OPEN-DOOR POLICY - Americans Doing Business in China Handicapped, Foreign Rivals Gaining Advantage. After several years of tion, Congress, in Septembe passed the China trade act, the pri mary purposes of which were: (1) To put American interests dc ing business in China equality of opportunity” with other national doing business in China from the standpoint of home taxation (2) As a means of inducing Chin capital to particlpate with Americar capital in ibusiness undertakings in China under American management (3) To provide a practical manner for federal incorporation of such American undertakings to secure both protection under American on esc ws ad | ministered in China under the United States court of China and the Ame ican diplomatic and consular servic. in China. Will Press for Action. Claiming that *the act falls fu short of exempting from Uni States home taxation American fn terests in China or of putting then on an ‘equality of opportunity’ wit) other natlonals doiug business there because other nationa are give complete immunity from home taxa tion,” Representative Dyer is deter mined to push fof early amendment. Representative Dyer finds that th China trade act as it now stands “penalize all stockholders in under- takings organized under the act ex cept individual Chinese and America residents In China, and the latier having to pay normal income taxes on all dividends from China trade a corporations, are g 1 parti exemption from United States home taxation” Proposed Amendments. The amendments which have introduced by Representative can be summarized as foliows: (1) Exemption from fed cor poration taxes on the net income « China trade corporations derly from sources within China (2) Exemption from United Statc taxes on dividends of China trade act corporations to all stockholders res dent in China. (3) Reduce number of necessary i corporations from five to three. (4) Change provision of maintain- ing a resident director in the Dis- trict of Columbia to a resident agent accredited to accept iegul service, (5) Permit stock to be lIssuned par or more than par, but not 1 than par. (6) Permit six months ment of initlal capi (7) Permit proxy voting of stock (8) Require president and t urer to be American cltizens. (9, Require majority Amd ownership of shipping companies ir corporated under the China trade (10) Require corporate seal whic is now optional. (11) Repeal all laws, rules or regi- lations conflicting with the China trade act. action h Dy full pa: Would Remove Troubles. These amendments, Dyer and the officiais of ment of Commerce feel move most of the present d under the act. There would remai however, the bothersome corporation capital stock tax, which might wel be repaid, they say, by an annual fee to be pald in China, as is done by British China companies. It would eliminate the most sub- stantial handicap remaining If there were also added a provision that China trade act companies could have such branch offices in the United States as. in the judgment of the Secretary of Commerce, ‘“shall be fincidental” to handling the business of such con cerns aiding In developing commerce Dbetween the United States and China There 15 a similar provision in the Edge foreign banking law and seems no good reason why s provision should not be China trade act corporations so that concerns transact their bus ness with China in the most advai tageous manner. the may economic conditions in Honduras already serious, will become precari ous. Should the threatened revolutior oocur, this note pointed out, there is slight ‘possibility of arranging either for settlement of the outstanding debt or for loans for greatly needed economic development. The induetrial development of Honduras will be sacrificed because commerce will be brought to a standstill, the re- sources and the income of the gov- ernment will disappear, and any gov- ernment, including the present one. will find it difficult to maintain itsel recent sailed for home with the applause still ringing in thelr ears. But the coming presidential elections in Costa Rica and in Honduras tended to put the treaties in the background for the time being. And while every- body concerned was in favor of the treaties, nobody was anxiois to lead the way. So the other Central Amer- ican republics sat back and waited for the completion of the Hunduran and Costa Rican elections before the treaties were put into effect. This resulted in only one treaty being rati- fled, this action having been taken by Nicaragua. The outcome of the present. difficulties in Honduras will make the ultimate disposal of the treaties interesting, for it was the combating of such conditions as now exist in Honduras that led,to the Wash- ingfon conference and the treati which came from it. E Serious Economic Results, The serious economic results of the Honduran trouble are outlined in the note which the State Department for- warded to Honduras last summer, which had been made public by the New York Times. This note called attention to the fact. that the in office. Should a new government in Hon duras result from a coup d'etat or revolution or other unconstitutional means the United States proposes to practice what it preached to the Cen- tral American delegates here last year, for the mnote contains this threat: “The attitude of the government of the United States with respect to the recognition of new governments In the five Central Amerlcan repub- lics whose representatives signed at Washington in February, 1923, a gen- eral treaty of peace and amity, to which the United States was not party, but with the provisions of which it is in the -most hearty ac- core, will be consonant with the pro- visions of article 11 thereof, whioh stipulates that the contracting par tles will not recognize any other government which may come into power in any of the five republics through. a coup d'¢tat or a revolution againet a recognized government, so long.as the freely clected representa- tives of the people thereof have not constitutionally recognized the coun- try.”