Evening Star Newspaper, June 6, 1926, Page 47

NEW COAL BILL CARRIES OUT PRESIDENT’S VIEWS House Committee Makes Good Start Toward Bringing Order Out of Chaos in BY WALTER R. McCALLUM. ARRYING out its promise, made three months ago, the House interstate and foreign commerce committee has pre- _ pared two committee drafts of an inclusive bill to correct the evils of recurrent strikes in the coal indus- try and protect the Government and the public from shortages of coal. Even though the bill may not pass either house at the present session of Congress—for any coal legislation is highly controversial, touching so many phases of our national life and bring- ing into friction many conflicting fac- tors—the committee will have made a good start toward bringing order out of the chaos in coal which has vir- tually stopped the wheels of industry and caused consumers to dig down deep into their pockets three times in the last seven vears. Although etary of Commerce Hoover has told the committee he does ot believe the difficulties of the coal industry can be corrected by remedial legislation, declaring that regulation | of prices, profits, the right to produce or wages would not secure cheaper coal nor would it solve the major questions of labor relations, the com- mittee believes otherwise, and has gone ahead with its work to draw up | legislation in line with the recommen- | dations of President Coolidge which it hopes will protect the Government and the public from coal shortages. The bill in its present form may not pre- vent strikes, but its coercive and me- diation features will combine with the presgure of enlightened public opin- fon, in the view of many men on Capi- tol Hill, to cause miners and operators to think twice before precipitating an- other coal crisis such as the late an- thracite strike or the great bitumi- nous strike of 1922. Not Yet Reported. The bill, already introduced by Rep- resentative Parker of New York, chairman of the committee, has not yet been reported out of committee and may not come before the House for action for several days. Other committee meetings will be held to consider further the detaiis of the measure, but in its main essentials it_will doubtless remam unchanged. ‘Whether it will succeed of passage is uncertain. Without question some of its features will meet with definite op- position from either the production side or the ride of the owners of coal mining properti But in any event the committee made a start on the coal legislation askea by the Presi- dent, and has consistently held before it the ma'm objective urged by the Chief Exed@tive—that of protecting the Goverrament and the people from suffering M times of coal shortage from any muse. The messure, it now stand: would ! i igatorial powe over cow production, marketing; di tributiorz s, time worked, con- sumption selling prices of all mineral and manufactured coal, in the hands of the Bureau of Mines of the Department of Commerce, there- by setting aside the several sugges- tions made at the open hearings which closed a month ago, that a new independent bureau be established to have complete control over coal mat- ters as far as the Government is concerned. Most drastic of the provisions con- tained in the measure is that em powering the President to declare a national emergency in order to pro- tect against short: or possible shortages of coal, “by reason of a lockout or strike or the possibility of | a lockout or strike affecting a sub- | stantial dec se in the production of | fuel.” ing up this authority is | a provision which would invoke the | powers already existing in the Inter- | state Commerce Commjission's emer- | gency coal act. This act is most dras- tie, providing for setting up a Federal coal distribution agency, to facilitate interstate movement of coal, assign coal car priorities and generally to keep the Government, industry and the consuming public provided with coal t0 meet existing needs. The commit- tee measure invokes all the powers of the emergency coal act now vested in the Interstate Commerce Commis- and for purposes of inquiry and igation would remove all the s, iments, papers and cor- of the United States Coal sion, the Kederal fuel and the United States Fuel Administration to the Bureau of Mines. a Intent of Coal Act. The ~mergency coal act reads in pert as follows: “That by reason of the prolonged interruption in the op- eration of a substantial part of the coal mining industry in the United States and of the impairment in the service of certain carriers engaged in commerce between the states, and by reason of the disturbance in economic and_industrial conditions caused by the World War, a natio emergency exists which endanger the public health and general wel- fare of people of the United States, injures indusiry and business generally throughout the United | States, furnishes an opportunity for the disposition of coal and other fuel Industry. \ threatens to obstruct and hamper the operation and efficlency of the Army and the Navy and the operation of carriers engaged in commerce among the several States and with forelgn countries. The powers of the Interstate Com- merce Commission are, “during the aforesaid emergency, enlarged to in- clude the authority to issue in trans- portation of coal or other fuel, orders for priorities in car service, embargoes and other suitable measures in favor of or against any carrier . . which shall be subject to the Interstate Com- merce act . and to take any other necessary and appropriate steps for priority in transporiation and for the equitable distribution of coal or other fuel, as is best to meet the emergency and to promote the general welfare and to prevent upon the.part of any person, partnership, assoclation or corporation the purchase or sale of coal or other fuel at prices unjustly or unreasonably high."” This act was passed September 22, while the Nation was in the t of a great coal strike, which combined with a rail strike virtually to force many industries to close down. The provisions in the second para- graph of the act answer many of the questions asked during the hearing as to the powers of the Federal Govern- ment in the event of a national emer- gency caused by stoppage of coal pro- duction. Provides Fuel Distribution. Further, it empowers the President to appoint a Federal fuel distributor, who shall first ascertain whether there exists in any part of the United States a shortage of coal or other fuel; the fleld of production of coal and other fuel and the mafkets to which such production is or may be transported or distributed; the prices normally charged and whether current prices are just and reasonable. He is em- powered to work closely with the In. terstate Commerce Commission in as. slgnment of car priority orders and to co-operate with all public agencies hav- ing similar emergency powers. At present there is one drawback to the situation, viewed from the Gov- ernment standpoint. This is that there does not now exist any Government gency currently reporting, investi- ating and issuing reports on coal. In other words no continuing Govern- ment agency is specifically empowered to make coal its dominant business and to act as the fact-finding body to back up the fuel administrator with the facts of the situation at any given time, whether in an emergency or not. This would be corrected under the terms of the House measure, which would place such powers in the Bu- reau of Mines, direct the chief of the bureau to gather and disseminate all information on coal and act as the Government fact-finding bureau for the industry. The Parker measure empowers the mines bureau to “gather, analyze, compile and make public from time to time. facts and statistics relating to the number of mines, the number of employes, and the rate of wages, the time worked. the production and mar- keting, distribution, consumption and stocks and selling prices of coal, ap- propriate for consideration in the de- termination of a sound publid policy in regard to such industries.” The Geological Survey of the In- | terfor Department, the Census Bureau and the Bureau of Foreign and Do- mestic Commerce of the Commerce Department, and_upon executive or- der, any other department or inde- pendent establishment in the execu- tive branch, shall also furnish the Bureau of Mines with such informa- tion and statistics as may be neces- ry to enable the latter bureau to protect the Government and public Interest. Mine Seizure Ignored. There is in the committee measure no hint of the drastic action urged by some witnesses who appeared before the committee—that of empowering the President to take over the mines in time of national emergency, and op- erate them either by soldiers, or by offering the miners special subsidies to go back to work. Either of these courses, ‘committee members felt, aould be dangerous. Nor is there anywhere in the committee print any suggestion that another Government bureau be established, other than the setting up of the office of Federal fuel distributor in time of emergency— powers that are already vested in the Interstate Commerce Commission. The committee measure, in the opin- ion of those who have read it, comes as close to a satisfactory compromise and an act which will hold over both miner and operator the great power of public authority, as could be drafted. In addition, the President would bs authorized, whenever he is of the opinion that it is in the public interest and Is necessary to preserve or restore industrial peace in the industry, to di- rect the Secretary of Labor to con- ciliate differences, encourage arbitra- tion, or act as mediator. He is also authorized to establish temporary boards of mediation and open the files and records of the Government to such agencies in order that they may be well informed as to conditions in at unreasonably high prices, limits the supply of light, heat and power, the industry. Poland Seen Imperiled as Nation 2 By Sudden Revolt Under Pilsudski (Continued from First Page.) 1za her North and West African | lands, she will presently be as great | a power as any in Europe. | As far as_Germany {s concerned she has the British guarantee in the T.ocarno pact, which represents a solid fact, for Britain can never afford to leta victorious Germany come to the channel. As far as Italian aspira- tloris in the Mediterranean are con- cerned, she has an almost equal cer- tainty of British support, for Britain at Gibraltar, Malta and Suez has every reason for desiring to keep things as they are, and only Italian and German atiacks concern France. ‘We are, I fear, sooner or later now, as a result of the Pllsudski episode, téldee the remaking of the Polish frontlers. Britain has always regard- edthe present Polish map as not only unwarranted but dangerous, she has advocated cessions both to Rassia_and to Germany, and would céttainly not lift a finger to prevent them. France has been a steadfast ally t6 whom Poland owes much, but France is unlikely to continue a poliey, which can only bring risks and responsibilities and no possible profit. Conceivably the Pilsudski episode may be terminated swiftly and before Poland has lost much, save in prestige and confidence. Yet the in- coherence can hardly be abolished, even {f the marshal goes, unless some real ,administrator arises. 'By con- tragt; clvil war is just as likely, for the,hatred of Pilsudski in many quar- texp.is terrific, and the ruin he is bringing to his country cannot be permanently concealed even from those who follow him now. The hope of Poland has always lain in Posen—that is, in the region once belonging to Prussia—because there the Poles, subjected to German discipline in their long and successful resistance to the Teutonic master, absorbed much of the German method. And Posen is totally op- posed to Pilsudski. Finally it is a matter of utmost importance what will be the ultimate bolshevist reaction to the Polish up- heaval. It was in the minds of the liberators of Poland at the Paris peace conference that Poland should serve as the bulwark of Europe against red Russia. This mission it did perform with French aid in the Russo-Polish War which culminated gloriously for Poland and fortunately for Western Europe in the battle of Warsaw and the Russian rout. Since then Soviet hopes of retaking the road westward have been gradually de- clining and red propaganda has turned to Aslatic fields. But today, with Poland in turmoil and a grave crisis on in Rumania, Moscow may well conclude that the western front again promises more than the eastern. At the least one can imagine how close and with what hopes Moscow will now watch War- saw, and with what applause the Pilsudski coup will be hailed in Mos- cow as it has been in Berlin.- Lithuania Is Factor. Less important but still worthy of consideration is the Lithuanian course. Lithuania is still: technically at war with Poland. The Vilna dis- pute endures. If civil war comes in Poland nothing is more certain than that the Lithuanians will try to re- gain Vilna, while possible disorders among the racial minorities in the east and south must be reckoned with. In all her long and tragic history Poland has had no greater misfortune than this Pilsudski .affair. Today it is impossible;to set limits to the ex- ‘tent of the disaster, but. every one' P THE LL ages have hoped for world peace. Never was there greater evidence of faith in world peace than ‘when mil- lions in the World War gave their all for that ideal. After the war a compelling duty rested upon us to kecp the faith by giving that ideal reality. ‘To make peace a habit of living be- tween nations as between men re- quires first of all that men should know peace and feel it in their hearts. Then will they find the way to do Justice to their fellew men. Selfish- ness, a desire to take advantage, try- ing to get something that was not earned, are wrong ethically and wrong constructively. No permanent od- vantage can be gained by despoiling others. Peace and real power come not through force, but through agree- ment and consent. ” The history of wars between na- tions is a record of attempts to gain ends by force. Force has falled to produce an order that satisfles either the hearts or minds of men. The par- allel between establishing world peace and establishing industrial peace is so striking that organized labor finds the probloms very familiar. Two fun- damentally different principles have been the bases upon which policies of industrial relations have been devel- oped—force and co-operation. One rests upon control and the other upon intelligence. p * x ok % The history of the development of trade unionism has been the record of the acceptance of the idea that a col- lective undertaking makes progress in proportion as all contribute to the work and share the rewards. To put this principle into effect requires un- derstanding of what to do and how to do it: machinery for co-operation and for equitable adjustments. Progress in collective undertakings and organization has reflected prog- ress in the application of intelligence and information to specific problems, in understanding the interdependence of human interests and in realizing that there is more to be gained in every sense by respecting the rights and interests of others than by disre- garding them. As we have accepted and applied these principles we have been making progress in eliminating industrial warfare. Suspicion, intrigue, injustice are in- compatible with peace and unworthy of the high possibilities of human nature. They are destructive of cre- ative effort. * ok ok ok We know that we have made prog- ress in reducing the practice of per- sonal warfare and the use of force in the personal relations between those who live together in nations, and we have done this by applying the same fundamental principles that have made for higher standards in in- dustrial relations. They have the sanction of spiritual law. They have the authority of compelling appeal to the best in men. Wherever these prin- ciples have been applied they have made for peace. Relations between nations involve larger application of the problem of living together. But it is the problem we find first of all in our homes, then in our relations with our neighbors, in the civic life of the community, in national affairs and finally in inter- ests and relations that extend across national borders. \ WILLIAM GREEN. There was a time when interna- tional affalrs touched the lives of but a few in cach natfon, but now the interpenetration of intellectual life, international interests and activities, concerns the citizenry of practically every country. * % oK ¥ The time has come when the na- tions of the world are in fact neigh- bors and isolation is no longer pos- sible. As necessary to deveiop definite chan- nels and methods for protecting the rights of those who live together in communities, so it is now necessary to develop standards of right doing between natlon-neighbors and methods for maintaining such standards. Tt is a beautful thing for men to dwell to- gether in the spirit of .the good Sa- maritan neighbor, but that requires it everywhere has been | knowing how as well as the will to do. What individual neighbors have learned about living together has al- ready been applied to nelghboring communities constituting a nation and is now being adapted to the needs of nations that would live in a world of peace. What the World War did not teach us of the interdependence of industrial and commercial under- takings of all countries, the post-war poriod has made plain. The problems of international debts show interna- tional financial stability to be no stronger than the weakest link. ok kE No nation can live to itself alone nor can it promote its own welfare without considering the best interests of other nations. We need, therefore, to hold common counsel with other nations when internatfonal problems are discussed. Where there is open discussion and personal contacts be- tween responsible representatives of SUNDAY STAR, WASHINGTON, D. C. JUNE 6, 1926—PART 2. BY WILLIAM GREEN President, American Federation of Labor nations the machinations of secret diplomacy cannot find hiding cover. The United States has an inescapa- ble duty to perform for the promo- tion of world peace. Because of the relation which our Nation occuples to the affairs of many other countries it is fmpossible for any definite decision to be made in fundamental interna- tional procedure without the co-opera- tion, or at least the acquiescence, of the United States. It is necessary to consider and determine decision with regard to their bearing upon world trends. Our Nation wants to help in world peace movements and will be found doing ts part, The action of our Senate authoriz- ing our participation in the Interna- tional Court is the first step toward assuming our international responsi- bility that accords with American tra- ditions and practices. As a court member we can help develop the prin- ciples of international law—the code of justice between nations. I am not unmindful of the difficul- ties in extending political organization to international fields. Political insti- tutions and methods in local and na- tional operation have been far from perfect. There has been indifference on the part of the individual citizen to bis civic responsibility and discour- aging lack of preparedness to deal with political issues intelligently. Se- rious as these problems are, I do not believe the answer lies in denouncing and rejecting political institutions, but in educating our body politic and in trying to get the facts of political experience. In the labor movement we have recognized the need of adult educa- tion by our workers' education bu- reau. We expect to do our part in advancing political education of adults. ‘We do not approach this work with the hypothesis that labor's interests are antagonistic to those of other clvic groups, but that the welfare of all is interdependent. * k% % Records of political experiences and the operation of specific methods will furnish the bases for developing more effective plans. Unless we have de- pendable facts we shall have no de- fense against the propaganda of organized groups promoting special interests. The growing menace of propaganda methods will pervert po- litical processes unless dependable in- formation is increasingly avallable. This principle holds true of all politi- cal endeavor, whether local, national or international. Political research and political education must parallel political organization. In advocating extension of political organization to the international field I wish to make it plain I am not ad- vocating a substitute for national gov- ernment. Local, national and inter- national political organization are necessary, for each should have au- thority over matters within its juris- diction. As problems have involved elements of larger jurisdiction, more comprehensive political organization has been effective. There has been an increasing integration of political agencies—not a subordination to higher powers. We shall realize our ideal of world peace as we apply the principles of living together and develop agencles for maintaining peace. The organized labor movement stands ready to support efforts to realize world peace. (Copyright, 1926.) The Story the Week Has Told BY HENRY W. BUNN. HE following is a brief sum- mary of the most important news of the world for the seven days ended June 5. * kK ¥ Great Britain.—There has been published a letter addressed to Lord Oxford by twelve prominent Liberals, including Viscount Grey, Sir John Simon and Walter Runciman, in which Lloyd George's behavior in con- nection with the general strike is described as purely opportunist, and which ends thus: “We have done our best in the interests of Liberal- ism to work with Lloyd George in the councils of the party, but we cannot feel surprised at your feeling that confidential relations are im- i possible with one whose instability destroys confidence.” It would seem, however, that Lloyd George is supported by a majority of the 40 members of the Liberal Parliamentary party in the House of Commons. A strenuous effort is being made to hold together the sorry remnant of the once-so- glorious Liberal party, and some hope in justified that it will succeed. Construction has begun of what is to be the biggest airship in the world. She is to be named the R-101 and is to ply between London and Bombay. She will be 760 feet long, 130 feet in greatest width, and 170 feet high; her gas capacity will be 4,000.000 cubic feet, she will have a lifting power of about 90 tons, and her con- tract calls for an average of 50 miles per hour. She will be about twice the size of the R-33 and will accom- odate 125 passengers. m“ is proppostd. should the R-101 prove a commercial success, to bulld five sister ships, the six to furnish a reguiar England-India-Australia service. The fastest ocean liners re- quire five weeks for the journey London to eastern Australia, The airships should make it in about 11 s * ok % K France.—Briand has won another extraordinary victory, but one of a bizarre character. His proposal to refer to a commission of experts the grand fiscal and financial problems, and that important fiscal and finan- cial action be suspended until the commission should report, was ap- proved by the Chamber. But the victory was achieved through solid support from the Right, supplemented by a few votes from Left Center and Herriot’s radical Soclalists. The eh- tire Left, excepting a score or less of radical Socialists, voted against him. Considering that Briand was brought into power by the Left, and that his cabinet does not include a single rep- resentative of the Right, how fantas- tic a situation. The commission, under the chair- manship of that excellent man and able financier, Charles Sargent, will recommend concerning taxation the debts, the Bank of France and the question of revaluation of the franc. No doubt the commissioners will take counsel with the international bankers of London, New York and Amsterdam. Such proceeding, such friendly deal- ing with the mammon of unrighteous- ness, is, of course, anathema to the financial geniuses of the Left, the en. who cares for Poland must regret the, upheaval, while all students of Euro: pean affairs must see that, both east and west, its repercussions may easily be enormous. The whole system of the peace con- férence seems now likely to disappear, the network of post-war alliances which gives France a brief hour of European supremacy is similarly pass- ing, while, as I have said, the way to complete Fradco-German adjustment 1s made easier. . - -~ .(Capyright. 1026.). . . thuiasts for the capital levy. As Briand does not see eye to eve with the Right on most matters other than financial or fiscal, his position is ob- viously more precarious than ev the strain on his funambulatory gen- ius more severe. Under the circumstances, it is ex- ceedingly fortunate for_the govern- ment that the Moroccan War has been ended successfully, and that the Syr- fan difficulties are close to a satisfac- tory settlement. Some doubt on the latfer head is permissible, but M. Jou- venel, the French high commissioner, emphatically asserts that very little remains to be done toward a com- plete and satisfactory pacification. He is on his way to France and would hardly be doing so were he not con- vinced in that sense. . The French Senate has ratified, 272 to 6, the Locarno instruments. ix Portugal.—After one knows riot how many insurrectionary fiascos since the last previous success in that kind, asuccessful coup has been put across: After some waverings the army and navy were won completely to the movement, of which the leading spirits are Gen. Da Costa and Comdr. Cabecadas. The latter is a born revo- lutionary. He was conspicuous in the revolution of 1910, which overthrew ehe monarchy and set up the repub- lic, and he was the leading spirit in the mutinies of April and July last year. The movement, entirely blood- jess, smacks not a little of Primo de Rivera's affair and apparently de- serves the name of revolution. It's slogan is “Down with the politicians!’ But though the ministry was, of course, sent packing, apparentlv it was hoped to keep President Machado on the job. Machado, however, failed to oblige. He invited Cabecadas to form a government, and, upon the commander’s presenting a provisional cabinet of military and naval men, resigned. Parliament is not in ses- sion, and, indeed, immediate disso- lution seems proposed. The provisional cabinet has given place to a formally constitutional cab- inet of eight members. The premier and minister of the interior is Comdr. Cabecadas, the minister of war and colonies is Gen. Da Costa, the min- ister of foreign affairs is a general, the minister of the navy, a naval commander; the ministers of instruc- tion, justice, finance and agriculture are civilians undemoralized by politi- cal associations. The ministers of the interior, foreign affairs and war con- stitute “a supreme committee.” One infers a dictatorship in essence. But is the dictatorship a triumvirate, or does the committee of three cor- respond, on a smaller scale, to the Spanish military directorate, Cabe- cadas as premier playing a role cor- responding to that of Primo de Rivera, “nrea(den(t“’ of the Spanish litary directorate? I faemed a protesting delegation of the Labor Confederation that military control will be maintained only long enough to purge the body politic and establish things -on an efficient basis; so much accomplished, the control will be turned over to a purely civilian government of non-party men.. A rather vague assurance. The causes of the revolution are fundamental. Fisc and finance are a mess. But the cause is worse than that. The whole economic structure requires drastic overhauling. The natural resources of Portugal are ample. She should be ‘economically self-sufficient and solvént. But manage- ment is lacking—has immemorially been lacking. The political chaos since the revolution of 1910 has ag- gravated the economy maladies, or, rather, there has been vicious political and economic interaction. Can the military and naval gentlemen supply the management required? Is, or not, the parliamentary sysetm dis- credited for Portugal? What price ficlency? We are asking. the same. Cabecadas has |- et-' For questions regarding Portugal as re- garding Poland and Greece and Spain to be sure, Musso- ve given the rvight answers for Ttaly. A very interesting new development. * ko Ttaly.—Premier Mussolini has for- mally announced the going into effect of his new politico-economic system. It has been called, not unhappily, an adaptation of guild Socialism under autocratic control. Its career will be watched by the political philosophers with sympathetic interest. Mussolini declares, “The Democratic-Liberal state, weak and agnostic, is no more; in its place rises the Fascist state.” That is certainly partly true, but that Fascismo will turn out anything more than a brief episode remains to Dbe seen. Conceivably the Democratic- Liberal state is not dead, but sleepeth. Certainly one is disposed to smile a little at the finality of the following from a Roman daily: “After the Lib- eral English charter and after the French Democratic code, the Fascist law puts in concrete form the final ideal of history, the final type of or- ganization and political civility.” It is estimated that Italy profited from American and other tourists last year to the tune of 3,5600,000,000 lire— about half the amount of the coun- try’s adverse foreign trade balance. R Poland.—The National Assembly (Diet and Senate in joint session) met on May 31. Piludski was elected Pres- ident on the first balldt, receiving 292 votes, as against 193 for the candidate of the Right. But there were 60 blank ballots and 10 abstentions, indicating a potential opposition of at least 263 (possibly more, if votes were insin-. cerely cast for Pilsudski). The marshal refused to accept, recommending Prof. ‘Moscicki, a chemical engineer and de- voted personal friend, to his support- ers as candidate. The next day Mos- cicki was elected by 282 votes against 200 for the Right candidate. He was inaugurated President on Friday. He is universally regarded as merely Pil- sudski’s puppet. The following is understood to be Pilsudski’s program in immediate sequel to inauguration: (1) Resignation of the Bartel cab- inet. (2) Appointment of a new cabinet satisfactory to the marshal. (3) A vote of confidence by the As- sembly to the new cabinet. (4) Amendment of the constitution (a three-fifths majority of the As- sembly required) so as to empower the President to dissolve Parliament. () A grant by the Assembly of extraordinary (in effect, dictatorial) powers, nominally to the new Presi. dent, actually to Pilsudskl, to remain effective until a new Parliament is convened. (6) Ordering by the Assembly of general elections in_October. (7) Dissolution of Parliament. This program shows some modera- tion of earlier demands by the marshal, If the Assembly comes across as per the above program, well. If not, ‘Warsaw is strongly garrisoned by troops —enthusiastically loyal to the marshal. Of course, there has been— there will be—no pressure on Parlia- ment, but no one seems to doubt that directly or indirectly Pilsudski 1s go- ing to play the dictator for some time ahead. * kK % Egypt.—Following the overwhelm- ing victory of his party in the gen- eral elections, Zaghloul Pasha was at first determined to force King Fuad to make him premier in the teeth of representations by Lord Lloyd, British high commissioner. But, “on better judgment making,” he decided not to challenge Britain too brusquely. the present, apparently, he will not officially call'in question the reserva- tions attached to Great Britain's recognition of Egyptian independence It seems probable that Adly sha, a moderate, but kindly dis posed toward Zaghloul, will be the new premier. The British govern- ment has addressed to the Egyptian government a very sharp note pro- testing against the acquittal by an Egyptian court of four Egyptians charged ,n connection with the mur- der of Sirdar Sir Lee Stack in 1924. ‘The British government ‘‘reserves Judgment in respect of the verdict and meanwhile declines to accept it as proof of the innocence of the per- sons acquitted.” Moreover, says the note, “the British government re- serves full liberty to take such steps as the future may show to be neces- sary to fulfill its obligation to insure the safety of foreigners in Egypt.” Significantly enough, a British bat- tleship has been ordered to Alex- andria. %% United States of America.—On Wednesday the House approved, 236 to 112, the settlement covering the debt of France to the United States. The Sesquicentennial International Exposition at Philadelphia, commemo- rating 150 years of American inde- pendence, was opened May 31. Apparently there is to be no na- tional referendum on prohibition, nor any national legislation favorable to the wets. . Jesse Sweetser of New York has won the British amateur golf cham- pionship. The redoubtable “Bobby"” Jones was put out of that contest by a Scotch lad of no fame or tourna- ment experience. Sweetser fully de- served his victory, nor is it one to cause surprise. While at Yale he won the American intercollegiate championship, and in 1922 the Ameri- can amateur championship, his play- ing throughout that champlonship tournament being considered by some as brilliant as any in golf history. ‘The American team was victorious over the British team in the Walker Cup contest on a British links, 6% 5% points. S * ok Notes.—German economic recovery continues, but very slowly. [There were. 1,743,000 unemployed on May 15 as against 1,782,000 on May 1. The bark of the cinchona tree as cultivated in Java ylelds 6 to 7 per cent of quinine, as against a yield of from 2 to 5 per cent from the bark of that tree grown elsewhere. The highest percentage of illiteracy among the so-called civilized coun- tries run India close, and Brazil and per cent. The Central Americar coun- tries run India close, and Brazil and Bolivia, each with about 85 per cent, deserve honorable mention. Of Euro- pean countries Serbla ranks first with 78 per cent Russia following with 70, then .Greece with 60. Calls on Russ Children To Reform Their Ways It was in a soviet republic, and children were playing “popular as- semblies.” Bandi, a 6-year-old boy, was speaking. He shrilly proclaimed that the children must reform. Boys must no longer strike little girls; little boys must no longer be beaten by bigger boys. That was a bourgeols habit. It must stop and the serious problem of children’s freedom be solved. A crowd of children listened in silence, and one grown-up. little Bandi for the tenth time spoke of the problem, the man said: “Tell me just how you intend to solve this problem.” The boy stopped a moment and stuttered, then suddenly spoke: “This problem would be solved like all other lems—according to cer- talm *'And he smiled happi- And as | actual figures. ENTIRE POLICY REVERSED BY TRADE COMMISSION Charges Now Unrevealed t(; Press Until Proven, and Accused Firms May State Their Claims. BY W. E. HUMPHREY. Federal Trade Commissioner. ITHIN the past year there has been a complete change of the policy of the Federal Trade Commission. This is based upon the be- lief of the commission as now consti- tuted that the majority of those en- gaged in business are honest and do not knowingly violate the law. Until recently the regular proced- ure was as follows: When a complaint was {ssued against a concern, an offi- cial statement, giving the alleged facts, was given to the press. This statement had wide publicity, particu- larly if the parties involved were prominent or the allegations sensa- tional. The defendant frequently knew nothing about the matter until he saw himself proclaimed in the newspapers as a violator of the law. He never had a hearing before the publicity was issued. Months after- ward, sometimes years afterward, when the case came to be tried, it was found, perhaps, that there had been no wrongdoing and the case was dismissed. But this dismissal brought no headlines in the press. It was not news. It brought no redress to the respondent. One Bankruptcy Cited. Here is an illustration based on facts. The commission fssued a com- plaint and gave out at the same time publicity against a corporation, charg- ing it with having unlawfully acquired the stock of the two competing corpo- rations. When the case came to trial some months afterward, the transac- tion was found to be perfectly legiti- mate. But what had happened? The corporation had arranged to borrow some forty million dollars to carry out the deal. The publicity given de- stroyed its credit. The banks refused to loan the money. The company was driven into bankruptcy, as were the two corporations whose stock it had acquired. Thousands who invested in the stocks and bonds of these com- panies lost their money and a great industry was destroyed. Nelther the respondent nor the public had any re- dress whatsoever. This is not an isolated instance, as you can well understand when you remember that the record of the com- mission shows that the complaint and the publicity were improvidently iz- sued in more than one-half of all the cases under the old rules. The commission now gives out mo offical statement until the parties ac- cused have had a hearing and the case is tried. Defendant Always Heard. Another rule is that when charges are made against a party and the facts seem to warrant action, before we issue a complaint we give the accused an opportunity to be heard. We have heard the evidence against him, usually from his competitor. We think it right to hear his side of the case before publicly accusing him. If from this hearing we are satisfied that there has been no violation of tha law, the case {s dismisged. If, on the other hand, we are satisfied that there Las been a violation of the law, then we give the party an opportunity to sign a stipulation to the effect that he will forever cease such practices. Remember two things: First, that the great object of the Federal Trade Commission act is to protect the pub 1if from fraudulent practices; and, sec- ond, that the only power the commis- sion has is to issue an order to “‘ceass and desist” from such practices. So that a stipulation accomplishes every thing that can possibly be accom- plished by an order to cease and de- sist. Strange as it may seem, both the rule of stipulation and the rule refus- ing to give out publicity when the complaint is filed, before the facts are known, have met with violent opposi- tion from the same source—from those who wish to spread the propaganda of dishonesty in business. The commission. on the other hand, believes that at least 90 per cent of American business is honest and anxious to obey the law, and that no corporation or individual should be penalized without having a chance to prove his inoncence. (Covyright. 1926.) PANICKY STOCK MARKET BLAMED ON FACTORS OF GREED AND FEAR Americans Must Gain Better Poise to Avoid Wild Fluctuations in Values, Says Otto H. Kahn, Banker. BY OTTO H. KAHN. The responsibility for such episodes of soaring ‘‘ups and crashing “downs” as characterized the course of stock prices in the recent past belongs not to the Stock Exchange as such, because, after all. that institu- tion is essentially a market, and all that those charged with ite adminis- tration can do is to see to it that the goods dealt in are properly labeled, that no fake or otherwise objection- able goods are admitted, and that deal- ings are conducted honestly and with due and watchfully enforced safe- guards for the public. Neither can_responsibility be laid justly at the doors of the banks. Tt is not their function to act as censors and regulators of price movements. Of course, the banks are called upon to exercise prudence and restraint in lending upon stocks at inflated prices, but if they were to attempt to use their position in order to control market movements, they would very soon be subject to bitter attack on the allegation of manipulating the stock market. Greed and Fear Cited. The responsibility belongs primarily to those in and out of Wall Street who permit unreflecting desire for gain to make them rush in and buy (being somewhat apt in the process to engage themselves beyond their means), and the same impulse, or unreflecting fear, to rush in and sell. The two very worst counselors in any situation are greed and fear. You are bound to go wrong when you listen to their hectic urgings. ‘We have observed some of the very same persons who, in February, could see no limit to booming prosperity, proclaim vociferously, in March, the total doom of prosperity, and, in both instances, find far too many listeners and believers. Of course, the stock market, in its very nature, is bound to be subject to considerable fluctuations. But epi- sodes such as those which have marked the course of stock prices within the past two months constitute a generally harmful nuisance. They also constitute a reflection upon the steadfastness and sobriety of judg: ment of a portion of the community. Gullible Element Scored. It is no adequate rejoinder to point to objectionable activities of “bull pools” and “bear pools” and to de- nounce unscrupulous manipulators for the boosting or the depressing of prices. True, unfortunately, to a cer- tain extent they are a factor in the general reckoning. True, they do give cause for just condemnation, perhaps even, in certain instances, rective or punitive action. could never be more than an ephem- eral and limited influence if they were not seconded by gullible crowds of “get-rich-quick” devotees on the “long” or the ‘“short” side of the market. Tt is a regrettable spectacle to see people lose their heads and their money in this manner, and it happens altogether too frequently. If we are to maintain that leading place among the great financial centers of the world to which we are entitled, it is incum- bent upon us to demonstrate self- assurance and steadiness, and to aveld recurrent exhibitions of alternating ebullition and, perturbation. A readjustment of stock prices from the giddy height to which some of them had been recklessly pushed was called for and salutar: But it should have been an orderly falling back, not a panicky rout. The only circumstances under which, in a country with the re- sources, the resiliency, and the basic elements of ours, a temporary descent into the cyclone cellar becomes war- ranted are—leaving aside grave foreign complications—either man festations of stark and persistent over- production or overtrading, or the advent of a major credit disturbance, or acute monetary stringency. Foundation Is Sound. None of these circumstances exists today or is even remotely likely to occur. Whether the immediate future will bring us a continuance or a temporary slackening of prosperity, there can be no doubt that underlying conditions are thoroughly sound in this country, and that there is ample warrant for feeling assured that, with natural and passing interruptions, the forward march of American trade and industry will continue. : To fill the air with counsels of ominous premonition—especially when they come after a stock market col- lapse—does not indicate superior wis- dom, but rather a lack of nerve, of vision, and of a calm and reliable ap- praisal of those fundamental elements with whish a favoring Providence has endowed this country, and which, with the qualities of its people, are determi ning for the lasting development of commercial, industrial and general economic conditions in America. (Copyright, 1926.) Calcium Cyanide in Commercial Arena As Patent Foe to Agriculture Pests Consternation among the bug pests of southern California is expected to follow the introduction of calcium cyanide, a new death-dealer which ap- pears to be the most powerful agri- cultural poison yet known. Informa- tion just released by Dr. Robert W. Poindexter, Los Angeles cyanide chemist, indicates that a long period of industrial research has now put calcium cyanide into the commercial arena. The product as now made in southern California fs prepared largely from the nitrogen of the air and from natural gas. Recent field tests show that calcium cyanide is much more potent than pure hydrocyanic acid, or prussic acid, heretofore considered the ulti- mate 100 per cent of toxic power. This unexpected result so far is not explained. After one test of calcium tyanide this Winter in an oange grove, where a very resistant strain of scale insects was infesting the foliage, only two bugs were found Soviet Trade With U. S. The claim attributed to the Amer- ican Department of Commerce that more than half of the Soviet union's trade for the year was with the United States is refuted by the ‘While 29.7 per cent of the Soviet union’s imports—more than from any other country—came from the United States, the per- centages of total trade for the three leading countries were: England, ex- clusive of dominions and colonies, 25.7; United States, 18.4, and Ger- many, 168, alive among over 3,000 insects actually counted. This record is especlally en- couraging to growers who have found the scale pests gradually developing immunity to regular doses of hydro- cyanic acld. As one orchardist sug- gests—“the ancestors of the scale have heen killed so often that their progeny don't mind it any more.” Calcium cyanide, while theoretically appearing to be a simple preparation to the ordinary chemist, is impossible to make in any ordinary way. By com- bining calcium carbide with hydro- cyanic acid, however, a light brown powder is secured, and this substance has the remarkable power of pouring out a veritable wave of poison gas when it is merely exposed to common air. Fumigators simply blow the poison in a dust cloud under the regular orchard tent; and whatever animal was living under the tent dies, regardless of whether it be a scale in- sect, a luckless owl or an fitinerant rooster. Example of Devotion. Austria pleads proverty, but one of the local churches has brought to- gether funds to construct candelabra larger than any in rich, prewar Aus- trian times. Sunday the hand- forged “Kronluster” was blessed in its place, hanging in the Rosenkranz Church in Hetzendorf. The candelabra set is 25 feet high and nearly 12 feet in diameter; it weighs a ton and a half. One hundred and twenty electric lamps are used in carrying out the idea of victory of light over darkness. Money for the candelabra was eb ned popular collection.