Evening Star Newspaper, May 7, 1933, Page 4

ANTHIRUST LAWS BREAGH IS LOOMING Liverals and Conservatives Both Take Prospect of Change Quietly. ' 7 the Associated Press. The end of the special session may find holes in the anti-trust laws wide enough for the passage of the railroads and a lot of other industries—but nel- ther liberal nor conservative seems to be alarmed about it. Por one thing, the trend is toward eontrolled production just now. In his address before the Chamber of Com- merce of the United States, President Roosevelt referred to “unfair methods of ‘competition” and “cut-throat prices,” as_business now is conducted. For another, many who still see men- ace in big business combinations feel the anti-trust laws have failed and bus- iness in turn feels they hamper efforts o achieve economy and bring order in ndustry. In the farm and rallroad bills. how- ever, the Government must give its ap- mwvll to combinations and agreements ore the Sherman and Clayton acts sre waived. The laws may still be ap- m:n where the Federal blessing is . Arose After Civil War. The period following the Civil War #aw the rise of the giant business com- binations, loosely termed trusts, although in 1853 there was a pool of brass pro- @ucers that caused outcries, and monop- olles in one form or another have ex- isted since the days of universal barter. Between 1875 and 1890 there were nu- merous investigations of so-called trusts and State laws were passed, but they roved unsatisfactory. Among the other rust hunts, Louisiana was excited over & cotton oil ring; Nebraska went after | s whisky combination and New Yark looked into a sugar combine. Many bills that failed were intro- duced in Congress during the period and n 1888 both parties denounced monopo- lies. The Republicans in rather digni- fied language, but the Democrats vigor- ously asserted that the trusts robbed “the body of our citizens by depriving :’h'jm of the benefits of natural compe- s The culmination of the furore was the Sherman anti-trust law of 1890, | bearing the name of the late Senator John Sherman of Ohio. It prohibited under severe penalties “every contract, eombination in the form of trust or oth- erwise, in the restraint of trade or com- merce among the several States or with foreign nations.” Restraint Is Defined. ed for the Supreme Court “restraint of trade” and the rest of the act. It did in a serles of notable cases. The Government won most of the important ones, and Theo- dore Roosevelt during his term as Pres- l'iient vigorously cheered the prosecu- tion. Nevertheless, there was skepticism over the effect of it all, the cynical com- ment being made in the House that the trusts “busted like an amoeba, each unit growing as large as the old one.” ‘The prevailing idea, however, was that more and stronger laws were needed. and this expressed itself in 1914 in the Clayton act, drawn to plug the loop- holes in the Sherman laW and to make the penalties for violation stiffer. At the same time the Federal Trade Com- mission was set up, one of its princi- gll duties being to keep an eye on big usiness In late years its investigations have attracted more public attention than its reprimands to the industrial giants, although it may have much to say on what business shall or shall not do be- fore President Roosevelt quits office. May Follow Farm Bill. ‘There are hints that the Chief Ex- ecutive will follow the raiiroad and farm measures with one along the same gen- eral lines to allow business generally to escape the anti-trust legislation, pro- vided it does what the Government wants it to do. ‘The President is known to feel that ruthless minorities in business are re- sponsible for much of the present chaos by nullifying the efforts of other units to pay reasonable wages and work their employes reasonable hours. A sweeping bill to enable the Fed- eral authorities to make these come into line in the general effort to restore pur- chasing power to the country at large ‘would not surprise those who have been ‘watching the swift sequence of events since March 4. CAMP LETTS OPENING PLANNED FOR JUNE 23| Plans for Y. M. C. ‘A. Summer XMaven for Boys on Rhodes River DPisclosed Yesterday. Arrangements are being made for the opening on June 23 of Camp Letts, Y. M. C. A. Summer haven for Wash- ington boys on the Rhodes River, in Anne Arundel County, Md. Plans for the 1933 season were dis- closed yesterday when the camp cata- Jogue was ditributed by the boys’ de- rtment of the Y. M. C. A. J. C. %::m. head of the department, will be tor of the camp. At the same time it was announced that the Camp Letts Summer School, conducted by the Woodward School for Boys of the Y. M. C. A, will begin July 10. Registration for the camp and the school is under way. The stafl of leaders and counselors will consist principally of college grad- uates, with junior .counselors drawn from colleges and high schools. Camp Letts is operated on a non-profit basis for boys from 10 to 18 years old. It located on & 217-acre peninsula at e mouth of the Rhodes River, which an arm of Chesapeake Bay. The s live in log cabins and tent-cot- in s pine grove overlooking the . Apgllu:;: for the camp should ly %0 Direct Ingram at the “Y" ’ department, 1732 G street. ¥. S. OIL CONTROL ASKED Wexan Tells Ickes State Has Made Failure of Proration. Tex., May 6 (P). . D. Sandefer, jr., president of the est Texas Oil & Gas Association, to- day sent a telegram to H. L. Ickes, Sec- vetary of the Interior, indorsing “di- fect Federal control and supervision of g oil and gas industry in the United tes. “Texas suthorities,” he said, “have made a complete failure of proration and enforcement of conservation laws and are making a political foot ball of the ofl industry.” REACH MEXICO CITY Wife and Daughter of Texas Offi- elal Arrive After Plane Delay. MEXICO CITY, May 6 (#.—The wife and daughter of Highway Com- missioner Martin of Texas arrived here safely today by airplane after a delay eaused by the necessity of refueling. ‘The airplane, piloted by J. F. Dexter, Janded yesterday for fuel at Chapa, in the state of Hidalgo, 100 miles from Mexico City. and the party spent the t at Chapa. g pilot’s daughter also was & mem- b @& tha pasieh | money itself is a promise.” An Inflation Primer Answers in S)mple Language to Frequent Questions Asked About W hat the Term Has Come to Mean in the Light of Past Experience. (Copyright. 1933. by North American News- paper Alliance. Inc.) Q. What is meant by currency infla- tion? A. An aribitrary enlargement of the currency without a corresponding in- crease in the security, such as goid, for | example; upon which it is based. Q. How is inflation accomplished? A It can be done by an overissue {of Government notes or “green-backs,” !by an overissue of bank notes, by an | increase of the sjlver money in circula- | tion, or by simply reducing the amount { of gold contained in the standard dollar (and proportionately increasing the amount of currency based thereon. All | these methods are under consideration in the present program. There are other |methods of inflation, such as that of bank credits, large increases in the gold | supply, etc., but that of currency is the {most common. | _Q What is the practical effect of in- | flation? { A Its immediate effect is to lower | the value of the dollar as established under the gold standard; to devaluate | it, as the expression is. | Q. What good would it do to de-| valuate the dollar? 3 A. Inflation proponents say that rais- | ing prices from their present abnor- mally low levels will remove a recog- nized cause of business and industrial stagnation, stimulate business, thaw out frozen assets. revive real estate and other commodity markets, create a new | demand for stocks, lure idle money back {into useful circulation, and make it \edublte;'r for the hard pressed to pay their lebts. Q. How is it supposed to do all this? A. The idea is that cheap money will | raise prices, because more of it will be (needed to do the same work, and that people will buy on a rising market. In addition, when people begin to doubt the value of their money, they get rid of it, exchanging it, usually, for real estate or common stocks, thus creat- | ing & demand that tends to raise prices. | Theoretically it will be easler for a| debtor to pay his obligations with dol- lars worth, say only three-fourths as | much as those he originally borrowed, | than if he had to return full value. The Creditor Loses. Q. In that case, then, does not the creditor lose? A. He does, and by just as much as the debtor gains. Q Will all debtors gain in this pro- portion? A. Not unless their incomes rise just as much as the e of money falls. The debtor with a fixed income ob- viously will get no benefit, because what he gains on one hand he loses on the other. He may actuslly lose heavily if his mortgage or other evidence of | debt Includes an enforceable “gold clause” requiring that the debt be re- paid in dollars of the same value as those borrowed. Most people, more- over, are in some sense both debtors and creditors, A business man. for example, might gain by buying off a morigage in devaluated dollars, but he would lose on the money he had in the bank and on the credit accounts of his customers. Unless he put his prices up he would similarly lose on his future sales. Q. Will increasing the amount of money actually raise prices and keep them up? A. Not necessarily, because the bulk of business is done without money any- way; that s, by the use of checks and the like. There is more coin in circu- lation now than there was a few years | ago, when. prices were much higher. | When England devaluated the pound, prices rose temporarily, as they are ris- ing in the United States now, but they have since fallen again to levels not far above the old ones. The supposed relation between currency and prices holds good only when the whole vol- ume of money plus bank credits is in- cluded, and when the “velocity” or speed with which money circulates is con- stant. When velocity is high, a small amount of money does a great deal of work because it changes hands rapidly, | and vice versa. Effect on Investment. Q. Does inflation really encourage investment? A. No, the contrary: except as in- vestors, foreseeing still lower values for money, may wish to exchange theirs for something of more stable value. As Bernard Baruch remarked: “Busi- ness moves on faith in promises, and 1f the prom- ise or present value of money is mnot to be kept, business generally will not take risks on it. The very uncer- tainty over what may be done will tend to discourage the making of long-term commitments, to raise interest rates and to destroy confidence. The ten- dencf' will be to force the country more nearly on a cash basis so as to create a greater demand for money and there- by _increase inflation. Q. If prices rise, what effect will that have upon wage earners? A. Unless wages rise simultaneously and correspondingly, rise in prices will amount to & cut in pay. In practice, wages and salaries never rise as fast as prices—as they never fall as fast as prices. Q. Who else would lose by inflation? A. Everybody with money on deposit, especially in savings accounts or in the hand of trust funds, beneficiaries of all kinds, and everybody with any form of investment making a fixed cash re- turn, such as life insurance, annuities, bonds and mortgages without an en- forceable “gold clause,” and other simi- lar_evidences of debt. Q. Would the Government pay off its bonds in devaluated dollars? A. The intimation is that it will, such payment, of course. amounting to & Te- pudiation of a substantial portion of its debt, Liberty bonds contain a “gold clause” which between individuals would be an enforceable contract, but no one can enforce a contract with the Gov- ernment, which cannot be sued Q. Who, then, would gain dependably by inflation? A. Only those debtors who, as seen, are in a position to take actual ad- vantage of the devaluated money. In addition to individuals, these would in- clude large corporations with a big bonded indebtedness if they could in- crease their incomes proportionately, heavily bonded cities, life insurance companies, railroads and the like. Agile speculators and people who live by their wits also might profit. . The man who needs relef most will not necessarily get it, then? A. He will not; the benefits of in- flation, such as they are, will not be distributed according to needs. but ac- cording as an individual can work it| to his advantage. Effect on Securities. Q. What will be wTect of inflation on ties? A. Stocks will tend to go up and bonds, which are evidences of debt, will g0 down. The common stocks of com- panies with large bonded debts and large issues of preferred stock should advance more than others. Q. If inflation were moderate and controlled, would not this tend to mini- mize its disadvantages and at the same time permit the general benefits of & rise in prices? A. Many economists think so, at the same time conceding that it is next to impossible to have “moderate and con- trolled” inflation because the pressure to make it immoderate and uncontrolled is enormous. Again, its stimulus is artificial and temporary, like a drink of whisky. Another objection is that in so far as it raises prices it ral themn all in the same proportion, wl rt of our present trouble is due to dif- ?:rmt parts of the price structure being out of proportion. Thus, agricultural products have fallen farthest and fast- est, manufactured goods much less, and producers® as mach! i | | 1 ly have than 1 000,000. with no advantage to the merchant. the extra spread being eaten up by overhead due to loss in volume of busi- ness. . Why cannot inflation be kept wi bounds? it might be A. Generally lpflk!ni. kept within bounds, t experience shows it cannot, because, for one thing, the effects of moderate, controlled in- flation are never startling enc to suit the enthusiasts; they clamor for more. The theory that if a little is good, more is better, has a risin number of adherents. It is roughly cal- culated that it took two years to dou- ble the German currency the first time, two months to double it again, two weeks to double it a third time, and two days to double it the fourth time. The experience of every nation with inflation has been same. France, from 1789 on, the United States with the “Continental currency,” ultimate- Iy redeemed at 1 cent on the dolla the shin plasters of the “wildcat bank- ing Confederate currency, Civil | War French and nbacks, German marks, Igian francs, Italian lish pounds, all followed more the same course. Benefits to Foreign Trade. Q. What benefits to forelgn trade are promised by inflationists? | A. It is said that the competitive ad- | vantage of countries operating with the | depreciated currency will be destroyed if we depreciate ours. This seems to be equivalent to saying that if a man in a ditch spatters us with mud we o must get down in the ditch to pro-| tect ourselves. Inflation may mean world-wide competition in currency de- preciation to protect and expand ex- port trade, which would be countered | everywhere by higher import barriers, trade wars and international ill will. ‘The theory is that if we cheapen our money it will be easier for foreigners to bu{l from us and less easy for them to sell to us. But selling goods for cheap money is the same thing as re- ducing prices, at least until the pre- sumptive stimulus of foreign buying op- erates to raise them. Of course no man and no nation can become prosperous by selling at a loss. The sup “competitive advantage” of a del d currency is temporary and illusory; in the long run the advantage is a dis- | advantage. Dumping can be stopped quicker and easler by a tariff or ln’ T8O. { What will be the effect of infla- | tion on the debts owed the Unlted‘\ emba Q States by foreign countries? A. It will amount to an automatic reduction of them, because they can be paid off in cheaper money. Na- tions which have issued “dollar bonds™ for sale in the United States will bene- fit_particularly. Q. About what is the total of the foreign and domestic debts which would be affected? A. The total of the most pressing debts of farmers and small-home own= ers, which inflation is supposed to re- lieve, is estimated at about $20.000.- | c: 000,000. The total of other debts in| the United States, mostly represented | by bond issues and business debts, runs between $100,000,000,000 and $120,000,- 000.000. The foreign debbts owed by the United States total about $11.000.- A reduction of say 50 per cent in the value of the dollar would thus amount to a present of $5.500,- 000,600 by Americans to foreigners. Holders of corporate common stocks and equities—largely the wealthy class —would profit by that amount to simi- lar enormous gifts taken out of insur- ance policies, savings bank deposits, ed- ‘I It ucational endowments and s0 on. would make the rich richer, the poor poorer. The farmer and small-home owner would benefit by $10.000,000,- 1000. The other small property owners of the country would lose $50.000,000,- 000, not counting the toll of the specu- lator, who would take out another enor- mous sum in the process. The President’s Judgment. Q. Who is to have the say as to In- flation? A. The entire administration of the program involving some $150,000,000,- 000 in debts, $100,000,000,000 in life insurance, and uncounted billions in actual and potential business affected will depend upon the judgment of one | man, the President. Q. What is the gold standard? A. A country is on the gold standard | when gold is the measure of value for its currency system. Gold is given a fixed price, which is also the par value of the currency in domestic circulation. Gold standard currencies are also con- vertible into gold on demand, or are adequately supported by gold reserves. Under all ordinary circumstances gold standard countriés permit the free movement of gold in and out of the country in settlement of international balances. Similarly, a country is on the silver standard when the same con- ditions obtain with regard to that metal. Q. Why Is the gold standard prefer- able to any other? A. Gold of the world for thousands of years, the most generally known, the most universally accepted; in normal times it is the most stable in value and hence the best yardstick of the value of everything. It combines high value with small bulk, it is durable, coins easily, and does not tarnish or corrode. Q What is meant by free silver? Bimetallism? A. Free silver is a shortening of the phrase, “free coinage of silver,” by which is meant permission to any one who has silver enough to make a dol- lar to get it coined into a dollar at the mint on demand. Bitmetallism means the free coinage of both gold and sil- ver on demand, and in some fixed ratio to each other. We now have free coin- age of gold only. Q. Would bimetallism work? A, Only if gold and silver were being produced in exact mgevmh each other, 30 ‘the market ratio beiween them was always the same as the mint ratio, a practical impossibility. The cheaper metal would always tend to drive the dearer out of circulation. With an ounce of gold at $20.67 and an ounce of silver at 30 cents, the market ratio is, roughly, 60 to 1. If bimetallism at 16 to 1 were established, we would be on a single silver standard immegiately and gold would vanish so far as mone- tary use was concerned, its price going to about $80 an ounce. Q. What relation has free the present inflation pr A. One of the sections of the Thomas bill permits the President, in his dis- cretion. to allow the free coinage of silver. Q. Is this the old Bryan plan of 16 to_1? A. It is substantially identical, except that the President could fix the ratio, instead of having it fixed by law. HELEN VASCO RETURNS HOME FROM HOSPITAL Girl, 2, Center of Legal Fight for Operation, Was Accompanied by Her Parents. By the Associated Press. HASTINGS, N. Y, May 6—Two- year-old Helen Vasco, whose left eye Wwas removed nearly two weeks ago 80 that & dangerous tumor might be re- moved, returned to her home today from Presbyterian Hospital in New York. She was accompanied by her parents, Mr. and Mrs. J Vasco, who main- silver to ? tained a belligerent opposition to the | operation up to the day before had it was performed. Two courts ordered the surgery. Helen seemed cheerful on h;r. mdt.um has been the preferred money | has passed DEMOGRATS RENEW DRIVE TOMORROW Aim-to Complete Program of Rehabilitation—Farm Bill to Be Reported. — TContinued Prom First Page.) opposition on Capitol Hill, where there is a strong demand for some kind of a guaranty of bank deposits in order to Testore confidence of the people in the banks. As Senator Fletcher and other Senators view the situation, the need is to restore that confidence now and not wait for a year. There will also be strong opposition to an adjournment of the gress without having enacted into law & bank reform byl. Suboommittee at Work. Over on the House side, a subcom- mittee of the Committee on Labor is at work on the Black 30-hour work-week bill, which already has passed the Sen- ate. Chairman Connery of the House Committee said yesterday he expected the subcommittee to have the redrafted bill ready to report to the full com- mittee by Wednesday and that he hoped the Labor Committee would re- port the bill to the House in & few days thereafter. “The Black bill will be amended by the subcommittee, I believe,” said Mr. Connery, “so a8 to provide for a mini- mum wage; to establish control over production in industry: to raise an em- bargo against importation of from foreign producers who do not con- form to & 30-hour work week, and to give the board which will administer the proposed law a certain amount of leeway to exempt from its operation workers whose strict adherence to the 30 hours would work great hardship on the industry.” Mr. Connery predicted that the bill would be made o apply to newspapers, although he said that the editorial and reportorial staffs would not be included. The chairman of the House Labor Committee said that some of the pro- posals which his committee would write into the Black bill, including the mini- mum wage and control of \nd\ufl{l output, had been recommended by the Secretary of Labor, Miss Perkins, and others close to the administration. The administration, on the other hand, is represented as being strongly opposed—certainly the President is—to the provision laying an embargo on goods imported from foreign nations which have not been produced under a 30-hour-work week plan. Such a law would virtually shut out all man- ufactured imports, it is said. If the committee insists on carrying this pro- vision in the bill, it may prevent any | final action on the measure during the | present session. May Limit Bond Issue. Before the week is out President Roosevelt may send to Congress his so- | ed public works program, designed to stimulate employment in this coun- try. It has been intimated in some quarters that the proposed bond usne' —the first bond issue for the purpose— may be limited even to $500,000.000. In the opinion of Senator La Follette of Wisconsin and others who are favoring public works program on a large ale, such a limitation would be sui- cidal and result in no real benefit. Sen- | ator La Follette expressed the opinion | yesterday that the program should be | | for $6,000,000,000 to bring the maximum | amount of benefit to the country. | In this connection the House Rivers land Harbors Committee has just com- | pleted work on a rivers and harbors | bill, calling for a total expenditure of | $98.620,000. Chairman Mansfield will| ask for an appointment for his com- | mittee with the President at the White House to discuss this bill in an effort | 1o have it tied into the administration’s public works program. If possible the committee will visit the White House | tomorrow. The members will lay par- | ticular stress upon the fact that 78| per cent of the amount proposed to be expended in this work will go in "uefi:’ to the workers. After the House has disposed of the conference, reports on the farm relief bill and the unemployment relief bill, it is expected to take up the independ- ent offices appropriation bill, recently reported to that body with its old to- tal of about a billion dollars cut in half. The greater part of the reduction is due to slicing $460,000,000 from the item for veterans’ pensions and reuef.i Majority Leader Byrns said that he | thought two or three lays might be re- | uired to put this bill through the ouse. The veterans' slash undoubtea- ly will be attacked on the floor of the House. It is in conformity, however. with the powers granted the President in the economy act passed earlier. D. C. Bill Is Waiting. The only other appropriation, except a deficiency bill, awaiting final action is the District of Columbia bill, which both houses. When agree- ment is reached on Senate amendments. final approval will be had.and the bill will be sent to the President. Chairman Fletcher of the Senate Banking Committee has referred to s subcommittee headed by Senator Bulk- ley of Ohio the home mortgage bill, which has passed the House. As soon as it has been whipped into shape to | satisfy the committee, it will be report- ed to the Senate. Another major task of the Banking Committee, the drafting of a bill toregulate stock and commodity exchanges, has still to be begun. The committee has been delving into that question for & year or more. The chair- man expressed the hope that before long it could get down to the actual work of drafting such s bill, although in other quarters it has been intimated that consideration of a stock exchange bill would be allowed to go over until next Winter. The committees of the Senate and House having to do with railroad legis- lation both Will begin hearings early this week on the new emergency rail-| road bill, sent to the Congress by the President last Thursday. The Senate Finance Committee is to act soon on the House bill extending the Federal gasoline tax, reducing post- age on local mail and transferring to the producer the electricity tax now paid by thé consumer. May Junk Some Bills. The word has been passed to get the Congress out of the Capitol by the sec- ond week in June. With a huge legis- lative program still to be put through, this seems an almost impossible task, despite the speed with which Congress has dealt with important measures in the two months of its existence. It may be that some of the measures may have to be junked if there is to be an adjournment early in June. Further- more, President Roosevelt is still con- sidering sending messages to Congress asking that he be given power to deal with the war debts and with the Ameri- can tariffs, in his negotiations with for- eign powers to help economic recovery, either at the London conference or; aside from that conference. No such powers are likely to be given him with- out considerable discussion by the Con- | | gress. In its two months of life the Con- gress, finally passed and the dent has approved the emergency bank- ing law, the economy act. the act and the beer law. Within a week there may be joined to this list, as com- Ppleted legislation, the farm relief bill— three measures in one dealing with farm surpluses, farm m and currency inflation—the M Shoals bill, the $500,000,000 unem| it re- lief bill, the District appro] and the securities bill. main to be dealt with, however, the home mo! bank reform rtgage bill, the ged | bill, the railroad bill, the 30-hour-work week bill wtw ments, the pul W resolutions empowering the President to deal with war debts and tariffs, D. C, MAY 7, 1933—PART O INDUSTRY BACKING U.S. OIL CONTROL Petroleum Association Head Says All States and Ele- ments Unite. By the Associated Press. ‘Wirt Franklin, president of the In- dependent Petroleum Association of America, last night issued a statement asserting the petroleum industry has lined up “with practical unanimity” in support of proposed legislation to create & Federal control over the oil business. ‘The proposed bill, which was pre- sented to Secretary Ickes by the repre- sentatives of the five States who have | dential been in conference here, would give the Secretary of the Interior virtual dicta- torial powers over the ofl ind 3 “Not only every ofl State,” Franklin sald, “but every element in the oil in- dustry, including factions which have rarely agreed on anything are writing or telegraphing urging immediate and favorable action upon legislation which will place unprecedented authority in c&hmamemremyuuum- or.” Special Representative. Franklin, who is from Oklahoma City, came here as the special representative of mfim::. &(lwemm' to confer on Ppry on. g’he aim of the bill, he explained, is to stabilize the industry, limit imports of ofl and “stamp out the enormous waste of an irreplaceable natural re- source. “Almost as & unit,” he said, “the in- dustry is expressing its willingness to get behind the President and the pres- ent administration, even though this means surrender of their liberty of “o:‘p‘dm in order to promote the common good » Franklin contended the only 1- tion to the proposal now unde?%%‘n- sideration by Ickes consists chiefly of & few individualists and others who | hope to “profiteer from the wreckage of a great industry.” He asserted that “over 90 per cent of the industry is wholeheartedly in favor of measure.” Joined by Big Firms. “The indej Franklin continued, “are being joined even by those larger companies who have always bitterly opposed govern- mental interference.” Among the hundreds of telegrams re- celved from various sections of the country was one from Ralph B. Lloyd, | president of the Ofl Proggcefl 8‘:’!«‘ Agency of California, who urged stabili- zation to save 300,000 small producing ol wells which would be inated by uncontrolled production. JEWISH PROFESSORS’ OUSTING IS DEFENDED Prussian Education Minister Prom- ises Research Freedom in In- ducting Rector. By the Associated Press. BERLIN, May 6.—Bernhard Rust, | Prussian minister of education and cul- | ture, inducting Dr. Eugene Fischer into the Tectorship of Berlin University to- day, promised freedom of research, de- fended the policy of dismissing Jewish and liberal professors, chided the pro- | fessors for not marching at the head of the procession in Nazi Germany and promised that the government would Tespect church treaties. “The freédom of scientific investiga- tion and the community of viewpoint regarding Nazi principles are pillars upon which the universities of the fu- ture must rest” the minister said. German youth, he declared. declines to be led by non-Aryan professors. Turning to the faculty, the minister told the professors that they were too much absorbed in scientific investiga- tion and had no contact with life. “Youth marched, but you were not in front,” he told them. “Remember not only that kings are losing their crowns, but whole generations will lose their birthright if they do not measure up to the nation’s great problems.” The racial war will cease whenever Jewish professors and students are re- duced to the same proportion as the ratio between Jew and Gentile within the whole nation, he said. HAS TOOTH IN LUNG Operation on Boy, 7, Awaits Re- | covery From Pleurisy. PHILADELPHIA, May 6 (#) —Seven- ear-old Bobby Hethmon of Paducah, y., will be unable to undergo an oper- ation for removal of a tooth in his lung until a pleurisy condition clears up, Temple University Hospital physi- cians said today. Meanwhile, he remains in the hos- | ital under observation. Physicians said it would be several days before an operation is undertaken. ‘The boy, son of Mr. and Mrs. R. H Hethmon, was br t here Wednesday. Dr. Gaylord H: the tooth, but was unable to remove it. DRIVER HELD IN CRASH Taximan Arrested After Injury of Two Women. PFranklin B. Shuford, 24, of the 1300 block of I street, a taxi driver, was ar- tested last night on a charge of reck- less driving after his cab and an auto- mobile had collided at Eighth street and Concord avenue, injuring two wo- men. The women, Mrs. Violet P. Tholl, 28, driver of the other car, and Miss Mary D. Ross, 22, both of the 800 block of Tuckerman street, were treated for bruises and shock. Bank offers the INDIVIDUAL offering a plan to make loans on a basis, which enables the borrower to liquidate his ob- ligation by means weekly, semi- monthly or monthlydeposits. MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 H Street N. W Washington, D. €. “Character and Earning Pewer Are the Basls of Oredic” this | ndents and the smaller producers who will be saved by this measure from complete annihilation,” , who examined the | boy in a Kentucky hospital, located | E. ° Politics at Random Restlessness in Congress BY BYRON PRICE., v o B e e T NOW seems assured that Presi- dent Roosevelt will have his own way entirely with the special ses- sion of Congress, htlup to the House there was n&wflnl rutleug:u. particularly among the new members, who once or twice appeared almost out of hand. The Democratic leadership was much worried. ‘Toward the end of April the - fortunes turned. Mr. velt'’s word again was law. It devel- that he was destined not only to leadership every single action , but even to set the date of its adjournment. ‘The change repr-e;md [y mmbl: recovery of e for the' Presiden Te ditien mwintg- positidn of legis. by many as even greater than that he enjoyed during the first few days of his ad- ministration, when he put the emer- gency bank bill thr under whip and spur. et deat ot practcal plenatag and A it deal of nn! an | careful, patient execution fly behind it. In the matter of patronage, for in- | stance, it came to be pretty well un- derstood—without the administration actually saying so—that those who stood Roosevelt Likely to Have Own Way Entirely as Back in Line. Declines—Inflationists in the way of the White House might expect nothing from counter, et the Drepared —i it was L do as he often had done as of New York and appeal to the directly over the heads of Congress- men, After the malcontents had thought these two things over for a while they felt dlfl;rently. Most of thuna} o looking for a good opportun: aboard the band wagon again. tion infation bill—as along just in provide that opportunity. Nearly all the insurrectionaries were inflationisis, and they tumbled scampering back ‘The degree to which the Roosevelt leadership was restored can be meas- ured by the one example of the bonus. Few doubted that large majorities both Senate and House wanted the bonus, but the movement for its en- actment was ended with great sudden- ness by a hint from the White House, spoken privately and without pubhc tment. Mr. Roosevelt thus has passed through the first test of his leadership. His trial by fire now is transferred to the fleld of foreign affairs, whicn m is entering with such ‘expecta- ns. PRESIDENT WIDENS FORESTRY PLANS |Roosevelt Program to In- clude State-Owned and Pri- vate Undertakings. President Roosevelt's forest conserva- | tion program was broadened last night to include State-owned and private projects, providing the States agree to reimburse the Federal Government if any profit is derived from the work. Robert Fechner, director of emer- gency conservation work, sent telegrams | States outlining the terms-under which | | the Federal Government would agree to establish camps on State, county, municipal and private lands. Enlargement of the reforestation pro- | gram became known as Maj. Gen. Paul | B. Malone, commanding the Third| Corps Area, in a communication to Gov. | John Garland Pollard of Virginia, |named the location of six new civilian conservation corps camps to be estab- lished in the Old Dominion Mnlonz‘ | said two would be set up in the Shen- | andoah National Park area, one near | Skyland and one near Big Meadow, both in Madison County; one in the Colonial National Monument area near York- | town, for cclored; two in the Natural Bridge National Porest, one at She-| rando, southwest of Waynesboro, and | one east of Natural Bridge, the latter for the colored, and one at Wolf Gap. in the George Washington National Forest, Shenandoah, County, Va, for white recruits from the District. Director Fechner dispatched the tele- grams to the State Governors imme- diately after he and President Roosevelt | had approved the establishment of 16| camps on State and private lands in Iowa and 2 on private lands in Rhode Island. The telegrams sald the Government would agree to setting up camps on non-Federal-owned land provided the Governors agreed to ask the Legisla- tures to reimburse the Government ni the rate of $1 a day per man for ex-| penses involved up to $3 per acre. The | communications said that Mr. Roose- | | velt “desires that no work shall be done on privately owned lands except as may be necessary in the public in- | terest for reginoal or State-wide forest | protection.” ————e LEA CASE RECORD FILED ‘ |Lawyers Have 30 Days %@ Submit Assignments of Errors. NASHVILLE, Tenn., May 6 (P)—The | voluminous record in the habeas corpus proceedings of Luke Lea and Luke Lea, jr., was filed today with the State Su- preme Court, to which the former news- paper publisher and his son have ap- pealed from an adverse decision by | | Criminal Judge John T. Cunningham at Clarksville. ! | Judge Cunningham sustained a de- murrer by the State of North Carolina | |to the Leas’ petition for a writ of habeas corpus. They were convicted | of violating the State banking laws in connection with the failure of the Cen- tral Bank & Trust Co. of Ashe- ville, N. C. ‘There are 355 pages of the record of the proceedings before Judge Cunning: | ham apd about 2,000 pages of exhibits. Counsel for the Leas have 30 days in | which to file assignments of error. MENOCAL RECUPERATING MIAMI, Fla, May 6 (P).—Gen. Mario G. Menocal, former President of Cuba, is slowly recovering from an at- tack of influenza, his son, Mario, jr., |said here today. | " 'Gen. Menocal still is confined to his | | bed, but his condition is not serious, the son said. | “We believe he will be able to be| out again in two or three days,” young Menocal said. Gen. Menocal returned last week {from New York, where iliness his attendance at sessions of revolutio junta of which he is a member. He has lived here since his exile from Cuba . application— with few excep- tons. CAPPER SEES U. . FORTIFYING BANKS Promises Government Wikl Make Them Safe in Tak to Lawyers. ROOSEVELT SPEECH PLEASES BUSINESS Members of U. S. Chamber Reassured by Utterances of President. BY DAVID LAWRENCE. Business men of importance from ajl over the land have been here last week getting a slant on the Roosevelt ad- ministration at first hand. They heard President Roosevelt at the Thursday night banquet of the United States Chamber of Commerce and Secretaries Roper and Wallace at their day ses- sions. They came away with the defi- nite im) that the bark of the Roosevelt regime is worse than its bite and that there is no serious intention here to ruin the country elther with prlnun(' press money or “State so- Impression Made. The President made a profound im- pression with his brief speech. It had & world of meaning in it. Some of it went clear over the heads of his lis- teners, judging by some of the com- ments afterward, but there were many who caught the significance of the little anecdote at the end of the pre- pared address. Mr. Roosevelt asked the business men—and there were heads of most all of the important corporations seat- ed before him—to be sure the wage level did not lag behind commodity prices when the upward swing starts in earnest. But while he begged the busi- ness executives to do all “in their pow- er” to raise wages, he promised them —not exactly in exchange, though it sourded that way to some—an im- munity from the operations of the anti- trust laws. When the President pointed out that there were minorities in many industries who would not conform to trade prac- tice codes drafted by majorities and who would probably not agree to curtail- ment production, he added a warn- ing that the Government would help enforce majority rule. This was not lost on any hearers, especially later on when the President used the word “got” %0 often to illustrate his point, and wound up his speech by spelling out what he called a new international word, “G-O-T.” A pledge that the Government “h‘ going to make banks safe for deposi- | | tors” was given last night by Senator | so Capper, Republican, of Kansas, in an address at the Sigma Delta Kappa | law fraternity dinner at the National Press Club. | In his speech, broadcast over the yesterday to the Governors of all the National Broadcasting Co., the Kansan | a; asserted that “all the racketeers have | not been engaged in the liquor busi- ness; that high finance, uncontrolled by Government. has been to a great extent a racket.” Exceed Bank Robbers. \ “The fountain pens of dishonest and unsound big bankers have cost the people of this country far more than | the funds of bank robbers,” he said. | Senator Capper assailed international bankers, who, he said, “ignored every sound principle of banking and even | of ethical bond salesmanship to unload | upon American investors billions of | worthless securities for the sake of | profit.” “I think.” he continued, “the new banlking bill, soon to be passed by Con- gress probably will put an end to the manipulations of New York bankers and financial buccaneers of the type of Insull and Mitchell who deliberately foisted upon American people securities at 3 to 10 times their actual value.” | May Favor Revision. Expressing interest Roosevelt's conversations here with | foreign leaders preparatory to the Lon- | don Economic Conference, Capper said, | if the meeting brings about some ma- | terfal trade advantages to this country and a reduction in disarmaments, he would favor revision of war debts. He also urged a war on crime, de- claring “lawlessness has reached the proportions of a national calamity.” | in President | Concluding, Senator Capper bespoke | support for the President. Submarine onVBiver Trip. BATON ROUGE. La, May 6 (#).— The United States Navy submarine 8-10 passed Baton Rouge today on its way up_the Mississippi River to Memphis. The submarine, moving on the sur- ace, did not stop, but | itself, attracted much attention, Word “Got” Emphasized. Although Mr. Roosevelt did not say explicitly, he conveyed the meaning that minorities and “die-hards” in tne business world have just “got” to come along with the procession. Comments of the business leaders Vi . Most all of them said the President had a remarkable personal‘ty ind that he delivered his speech effc- tively. Some were disappointed that he did not say what he would do about the powers of inflation he is shortly to be given by Congress. Others thought the appeal to raise wages was dema~- goguery intended to satisfy labor. But the concensus of those who were famillar with the efforts of the collcge professor and radical group in the last few weeks was that Mr. Roosevelt had given industry a chance at self-regula- tion and that even though it might in- volve some readjustment it was a much better formula than 30-hour work week bills or Government ownership of key industries. Unquestionably they were pleased by the willingness of the Presi- dent to take business out of the strait- jacket imposed by the old Sherman |laws and his readiness to fit all in- dustry to the new conditions of recon- struction. Roper Attracts Attention. Secre of Commerce Roper's sug- g:uon of a presidential council of iness men, to be chosen by business for less men feel such an advisory body to pass upon all the various schemes to regulate industry would be helpful to both the Government and business, it would be understood, of course, that the council would be purely advisory and the administration would be free to_accept or reject its suggestions. The desire of the Roosevelt admin- istration to win the confidence of busi- ness was exgrmed in many ways this week and there are signs that many of the business leaders think the effort was successful. (Copyright. 1938.) Two Children Soalded. Two colored children were burned, one sericusly, late yesterday when they upset a pot of boiling water while play= ing in their home in the 300 block of K street. They were Leroy King, 5, said to have been badly burned, and Louise 1 exchanged whistle salutes with ferry boats as it swung around the broad end of the mile-wide stream. King. 3. 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