Evening Star Newspaper, December 31, 1930, Page 5

N \ ) 13 S ) [ { ) ; ) D HOOVER STATEMENT “UNETHICAL” HELD THE EVENING STAR, WASHINGTON, D. C. SECURED FIRST BUILDING LOAN Couzens Makes Charge on Rail Merger Without Giv- ing Own View. k o (Continued From First Page.) 4 proceeding with further consolida- lons until Congress had had an op- rtunity to make further investigation. A confirmation of this view is estab- lished by the fact that on June 16, 1930, the Senate passed a resolution authoriz- ing the Committee on Interstate Com- merce to make an investigation of what had been accomplished by, consolida- tions, and to make a report to the Sen- ate. The Committee on Interstate Com- merce has since then been making a careful inquiry based on the resolution. A tentative report will be ready to sub- mit to the committee within a few ‘weeks. Until that report is made and studied, there will be no opportunity 1o discuss it. The merits of the propecsed consolidation cannot be passed upon because the plan has not been sub- mitted to the public or to the Interstate Commerce Commission, and until that is done, of course, I will not be in a osition to comment upon this particu- ar proposed consolidation. Holds Statement Unethical. “While I hesitate to criticize the ethics of the President of the United States, the issuance of this statement by him in my judgment is most uncthical. In the concluding paragraph of the Pres- ident’s statement he says, ‘The plan, of course, must be submitted to the Inter- state Commerce Commission, who have the independent duty to determine if it meets with every requirement of public Interest.’ “In view of the Bresident’s support of the plan, it is questionable whether the ‘independent duty’ of the commission can be ascertained. Every one knows the power and influence of presidential pproval and every one knows that E:ese commissioners owe their positions %o the President of the United States, nd while it is the duty of the Senate o confirm these apppintments, no name @an get to the Senate without first hav- g been selected by the President of United States. “There is rapidly growing a public opinion that the President determines the action of these independent com- missions, and such opinion will not be dissipated by the issuance of the pres- ent statement of thé President. “As stated previously, I have not seen the plan, and so am not in a position to say whether or not in my judgment it is in the public interest, but I do say that if this proposed consolidation is not greater in the public interest than the consolidations already accomplished, or approved, as in the case of the con- solidation of the Great Northern and Northern Pacific, we may not hope for much, if anything. “It is unfortunate that this great con- solidation proposal is based upon the great suffering now because of unem- ployment. Sees No Aid to Business. “It is inconceivable to me that this great consolidation proposal can be con- summated within the year 1931, and therefore will not have much if any effect upon the recovery of business, or enlarge the opportunity for employment. “Some railroad presidents have already stated that they have gone much further than they were justified in making cap- ital investments to take care of the present volume of business, or even the volume of business which we had in 1928, and the early part of 1929. If such be the case there does not seem to be much-hope for large.capital ex- penditures as stated by the President. Certainly this plan does not seem to hold out any hope for increased em- ployment or increased business. Whether or not the economies outlined by the President will materialize is questionable, but there do appear to be other econo- mies not brought around by consolida- tion that might be practiced by the railroads. For example, during the past 10 years there has been no reduction in the price of rail by the steel com- panies to the railroads. I am informed that they have been paying $43 per ton for steel rail during all of this period, while other steel products have been reduced on an average of 20 per cent. 1 am informed that approximately $90,- 000,000 have been spent by the rail- roads for steel rail, and had that been reduced the same percentage as other steel products the saving of the rail- roads would have been $18,000,000. The fact that all companies seem to have been charging the railroads $43 per ton would make it appear that there must have been some collusion between the railroads and the steel companies. “There is also a practice engaged in by the railroads of letting much of their work be done without securing competitive nroposals, and this certainly cannot hate been done in the public interest. “I fully recognize some of the diffi- culties that the railroads are now en- counter; by competition by other means of transportation, but this is an experience no different than that which other industries have to contend. “I have evidenced my interest in at- tempting to solve some of these prob- lems by my effort to get Congress to adopt legislation to regulate bus oper- ation, but because of the diversity of opinion existing in the Senate, nothing has yet been accomplished, “The putting together of some 50 railroads in the official classification territory will involve a great many problems, and the solution of these problems by the Interstate Commerce Commission will be watched with great interest to see whether or not the President’s claims that this consolida- tion in the public interest arc war- ranted, i Upon leaving the commission, where | Historic Philadelphia house on which the first loan was made by a saving, building and loan association in the United States—in 1831. MALCONSOLIDATIN CONSENT EAPECTED I. C. C. Attitude Has Been One of Hope for Movement to Be Initiated. ) | of their own power or too zealous for their own systems to be willing to prac- | tice mutual accommodation. ~What | went on in these early conferences is suggested by @& newspaper account printed a little more than a year ago. The account is, of course, not authori- | tative, but it bears out the impres- sion then current: Executive Attitudes Vary. | “Included in the contenders are the | strident and aggressive Atterbury, the difident and watchful Crowley, the testy and precise Willard and the ur- banely businesslike Van Sweringen brothers. Atterbury of the Pennsylvania exchanges blows with Willard of the Baltimore & Ohio and the Cleveland railway rejunvenators. New York Central dodges between these opponents, first impeding Atterbury and then the three allies. Striding among the combatants and laying about in- discriminately may be discerned a bearded stalwart, who is Loree of the Delaware & Hudson, at odds with all, indefatigable proponent of mergers he alone approves.” The stage of the negotiations thus de- scribed lasted until about a year ago. Persons who were displeased at the lack of success were inclined to criticize the railroad executives. It was said, prob- ably with some injustice, that the ex- ecutives were fighting personal duels over the country's transportation sys- tem. Another phrase was that the ex- ecutives were “playing poker with rail- roads as chips.” Doubtless much of this was unjust, for there were genuine diffi- culties fo overcome. About a year ago, after the business depression got under way, some \m{)m’tant business leaders | asked President Hoover to use his good | offices to help persuade the railroad ex- | ecutives to get together in a spirit more | faverable to mutual concession. It was urged at the time, and, of course, con- BY MARK SULLIVAN. ‘The immediate question is whether | the Interstate Commerce Commission will approve the great railroad consoli- dation. Because of the judicial func- tion of the commission, one would hesi- tate to speculate in advance about a decision by it almost as much as about | a decision of the Supreme Court. Never- theless, railroad men. lawyers, and others familiar with the trend of the commission’s actions and policies believe strongly that the commission will ap- prove this consolidation. It is taken for granted that the rail- road presidents who effected the con- solidation must have been careful to do only what the commission would be likely to approve. This consolidation has been under consideration for sev- eral years. All the railroad presidents and lawyers concerned have had abun- dant opportunity to form judgments as to what the commission would and would not approve. tinues to be a fact, that consolidation Consolidation Has Been Hoped. |y u1d be an immense and solid step The broad attitude of the commission | toward the restoration of business for nearly 10 years has been one of | health in the country. hoping that the railroads of their own | initiative would achieve proper consoli- | dations. The commission, in short, has, | in the language of one close observer, “don: everything possible for it to do Editor's Estate Nets $1,028,724. | NEW YORK, December 31 (/). — | Britton Haddon, late editor of Time under the law to accelerate consolida- | Magazine, Chicago, left a net estate of tion” The commission has itself been | $1,023,724 to his mother, Mrs. Elizabeth under a burden put upon it by Congress | Bursch Pool, of Brooklyn, his will, filed in 1920 to bring about consolidations. | Monday, disclosed. At her death the The commission has known, however, | estate passes to Haddon's brother that it was impracticable for it to make | Crowell and his stepfather, William flat consolidations of its own initiative. | Pool. In this condition it has been evident to e e everybody that the commission has | Optician—Optometrist wanted the carriers of their own initia- | tive to bring about proper consolida- | 922 14th St. N.W. Established 1889 tions. { All that is here said about the com- mission favoring consolidations is, of course, subject to one imperative con- dition. As the commission has itself stated in the past, “No consolidation * * * can be accomplished until we have found, after full hearing, that the public interest will be promoted there- by.” What is now presumed, therefore, ENTERPRISE SER[AL IFIRST HOME LOAN 10 BE CELEBRATED Centenary of Movement in U. S. to Be Observed With Banquet. home-owners of the country will be | signalized by building and loan asso- (ciation interests of Washington at a | centenary celebration to be staged Sat- | urday evening at the New Shoreham Hotel here, simultaneously with the holding of similar anniversary programs throughout the Nation. ‘Three hundred guests are expected to | attend the celebration banquet Saturday, when the building and loan movement in the United States will be officially 100 years old. Started in Philadelphia. ‘Commemoration of the anniversary of the founding of the movement also is coupled with an active movement on the part of the building and loan or- ganization greatlv to stimulate sys- tematic saving for the building of homes, described by leaders of the movement as one of the fundamental factors in the economic well being of the country. | Having its origin in this country in | Philadelphia in 1831 in a co-operative | organization having assets of $244, this . movement, under which the collective (capital is employed only for the | purchase of homes, has grown since to be a business handling nearly $9.000,000,000. The local Building and Loan Council, of which Edward C. Baltz is president Conclusion of 100 years of service to| 4 and William 8. Quinter is secretary, is in charge of the Washington celebra- tion. The history of the building and loan movement 'ill be recounted by C. Clinton James, past president of | League, who is affiliated with the local | council Talks will be given also by Representative Robert Luce of Massa- chusetts, member of the Banking and Currency Committee of the House; Representative Roy C. Fitzgerald of Ohio, Representative Earl Cory Mich- ener of Michigan, member of the House Judiciary Committee, and R. M. Estes, deputy commissioner of internal revenue. Will Present Pioneer. John Joy Edson, founder of one of the first building and loan associations as a Washington pioneer of the move- ment. President, Baltz will extend a welcome to the gathering and Rev. John Weid- |ley will pronounce an invocation. A | musical program will complete | exercises. | INSURANCE GROUPS MERGE Ancient Orders of United Work- men, Insurance Societies, United. FARGO, N. Dak., December 31 (#).— ‘The Ancient Order of United Workmen with home offices in Fargo, has ab- Ksorl;ted the Ancient Order of United Workmen with home cffices in New Haven, Conn., it was announced today. They have been distinct fraternal in- surance orders. | The merger involves the transfer and reinsurance by the North Dakota cor- poration of $5,500,000 insurance now in | torce in the Eastern organization, serv- | ing New York, New Jersey, New Hamp- | North | shire and Connecticut. The Dakota corporation at present has $50,- | 000.000 Jife insurance in force, operating |in North and South Dakota, Montana, Idaho, California, Wyoming, Utah and Nevada. Formal consolidation will take place here next june. . WEDNESDAY, DECEMBER 31, the United States Building and Loan | to be established here, will be presented | the | 1930. CTZENS APPROVE AR DN ROADSIGNS lowa-Thomas Circle Associa- tion Backs Beautification Campaign. The Iowa-Thomas Circle Citizens' Association unanimously adopted a resolution last night indorsing the American Civic Association beautifica- tion of highways campaign for abolish- ment of highway sign advert:sing. J. R. Du Combe, why introduced the resolution, said such advertising is a great detriment to the beauty of this city as well as nearby Maryland and Virginia. A resolution introduced by H. E. Young asking that the Washington Railway & Electric Co. be authorized to immediately proceed with the con- struction of new car tracks on the propcsed street from Georgia avenue to Ninth street so as to relieve the present congestion of traffic at Florida avenue between Seventh and Ninth streets was adopted. In the resolution Mr. Young stated that the present conditions at these intersections was made dangerous by the double use of the streets by the Capitol Tracticn and Washington Rail- way & Electric Companies. The meeting was held at the home of Mr. and Mrs. H. M. Fulton, 1500 Thirteenth street, marking the change | of the name of Iowa Circle to Logan Circle. Peat moss from bogs of Northern Ire- land is being ground into dust and mixed with molasses for cattle feed. * struction of e Woodridge-Brookland Junior High School in the 1932 appro- iations, as_recommended by the Bue reau of the Budget but disapproved by the Commissioners, was urged by the association Pavorable actlon was taken on a re- quest to Congress to make an-additional appropriation for the completion of the Woodridge elementary school. Following an address by John E. Hooe | ver of the Department of Justice on the “D?::‘I;:mke‘m of vz’:hln(lm.'l' the as- soc! dorsed proposal to and grade Eastern avenue from m dolph street to Queens Chapel road. The movement sponsored by the Amer. lcan Civic Federation for the beautifica tion of the highways leading into Was| SEES PERIL IN LOW FLIGHTS OVER CITY Citizens’ Association Urges Airplanes Use Only Least Congested Areas. i ington was brought to I.hts attention Aroused by the numerous recent alr- ' was ‘Gacanaayoy referred to the assoe |plane crashes near dwellings, such as | clatlon’s special committee on the Wash- , | occurred in Kenilworth two weeks ago |ington Bi-centennial. H and in Berwyn Heights Sunday, the | Rhode Island Avenue Citizens' Axcocia- | tion, meeting in Sherwood Hall Monday | | night, urged the adoption of stricter | | regulation of flight of aircraft over the | District of Columbia. | The fear that a sericus accident might | —= | result from a forced landing by one of | s the many planes now fiying daily over | the community was expressed by sev- eral members at & meeting some months | ago and resulted in an, investigation by J. F. McBeth, chairman of the Fire and Police Committee. | Mr. McBeth reported last night that the present regulations require planes to fly at a height of 1,000 feet over the | city, but that most planes fly nearer | an elevation of 300 feet. The resolu- | tion offered by him and adopted by the association, suggests that planes be re- | quired to fly over the least congested | areas of the District so far as prac- | tica'e and urges the prescribing of penaltizs for violations of such regula- tions. The Rhode Island avenue group also | voted to solicit the co-operation of the Telephone National 5000 Federation of Citizens' Associations in | | (ne- delivery will ‘start immedi: chtaining enforcement of the arcraft| | ately. The Route Agent will col- month. flight regulations. Retention of the funds for the con| | 5% *t the end of each - Qll; $1.23 Up Special Diners Dany, 1120 Vermont Ave. Decatur 0500 $1.00, big selected shelled halves, $1.00 per pound. At The PECAN SHOP 3021 14th St. N.W. Subscribe Today It costs only about 13 cents per day and 5 cents Sundays to have Washington’s best newspa- per delivered to you regularly ‘rnv:ry evening and Sunday morn- 8. Hard Work People have seen that it takes more than a mere expres- sion of confidence in the fundamental soundness of the country to bring back prosperity. They have made up their minds that there is still a little rough country to be travelled before getting out on the broad highway of nor- mal business conditions. They have seen, at first with alarm and then with a fighting determination to see it through, that business does not get well as soon as the first remedy is administered. But that is good. A slow recovery is a sound recovery. Crowley of the [/ is that the commission will inspect the proposed consolidation in detail and will declare whether “the public intercst will be promoted” by it. The common assumption in Washington is that the | commission’s dec’sion will be favorable. Congress Has Been Favorable. | ‘There is some query also about the attitude of Congress. On this point the | fact is that Congress, ever since it au- thorized and decreed in 1920 that the | railroads should be grouped into sys- | tems. has been eager to see the actual | consolidations effected. Doubtless indi- vidual voices from within Congress may speak out in protest, but the sustained attitude of Congress as a whole, from BUILDING ASSOCIATION 7th St. and La. Ave. N.W. 65th Issue of Stock Now Open for Subscription Money loaned to members on easy monthly payments James E. Connelly James F. Shea President Secretary wishing to make it easier for the car- | riers to unite voluntarily. People in Washington---this fortunate city---greet 1931 unafraid and with hope. The Washington Gas Light Company wishes to join them in this sane and courageous attitude and to express its deep appreciation for the con- fidence which the public has placed in their gas company. The last twelve months, as far as we are concerned, have been stirring ones. A tremendous task has been undertaken---to give Washington the best gas company in the country. The first step toward this was a reduc- tion in rates. Further- new mains gas service has been extended. have been laid and Since the reduced rates were put into effect gas consump- The public advantage of the new con- solidation that is immediately apropros % business conditions lies in the fact that the railroads, so soon as their plan is approved. will be free to go ahead with improvements on an_im- mense scale. So soon as they have assured knowledge of what the rallroad map will be for a generation to come extremely important permanent con- struction will get underway. Aside from this immediate amelioration of unem- ployment the large economic and social benefits of consolidation were made familiar at the time of the original act jof Cstmgrcss calling for consolidations 1920 After Congress in 1920 authorized and decreed consolidations the Northeastern | railroad presidents engaged in prolonged conferences abcut the distribution of lines and branch lines among their vari- ous systems. These e2rly negotiations 1>d to no result, partly because most of the railroad executives were too jealous he was closeted with Commissioner | Myer for the better part of an hour, | Mr. Willard said that the rail executives involved in the proposed consolidation | would meet again in New York Friday to take up the draft of the plan which will eventually be presented to the commission. He added that it was not certain how long this would take, but in response to a query said he would certainly think | that it would be within a month. Mr. Willard would not attempt any | discussion of details, saying that it just simply meant under present conditions that a start had been made. Speaking, as he said, only for the P B. & O.. he expected th» consolidation {’u be worked out on a stock acquisition asic Willard was very optimistic over the chances for the successful working out of a merger plan, and added tha: he knew of no other factor that would contribute more towsrd stabilized con- ditions. | Another visitor at the offices of the | commission this morning was R. H Aishton, president the American | Railway Association, but, as on the oc- | casion of his visit to President Hoover Monday, he said he only came to extend | New Year greetings, tion has increased rapidly. As yet our net income is under last year’s, as wasto be expected from the rate cut. We have just begun our job, but preliminary results---es- pecially the sale of gas appliances---justify our confidence in the program we have mapped out. " LOLUMBY . P AL AT %, New Year’s Dinner 12:30 to 8:00, Choice of Oyster_or Fruit Coektail Tom: e The Washington Gas Light Company looks forward in 1931 to a year of hard work and with your Good Will hopes that it may make a worthwhile contribution to the life of this capital city. ! ONE DOLLAR Oysters Any Style If you resolve to use, and use our Famous Reading Anthracite in 1931, we know that as far as heating comfort is concerned you'll have the Happy New Year that we're wish- ing you in all things. 649 Rhode Island Ave. N.E. North 1600 N4 GEORGE A. G. WOOD, President, Light Co. lot