Evening Star Newspaper, May 29, 1933, Page 8

THE EVENING STAR With Sunday Morning Edition. WASHINGTON, D. C. MONDAY.........May 29, 1933 THEODORE W. NOYES....Editor The Evening Star Newspaper Company B Office: ust : . and Pennsylvania Ave. fhice: t 42nd St Michigan Building. ! Chicago Office: Laki European Office: 14 Regent St.. London, England. Rate by Carrier Within the City. The Evening Star.............45c per month The Evening and Sunday Star (when 4 Sundays)...... 60c per month The Evening and Su 8 (when 5 Sundays)..... 85¢c per month The Eunday St s c per copy Collection made at the end of each month. Orders may be sent in by mail or telephone NAtional 5000. Rate by Mail—Payable in Advance. Maryland and Virginia. Daily and Sunday Daily only .. Sunday only . All Other States and Canada. Daily and Sunday...1sr, $12.00: 1 mo., $1.00 Daily only ..........1¥r, $800: 1mo.. T8¢ Sunday only 1yr. $5.00; 1mo. S0c 5c 50c 40c Member of the Associated Press. The Associated Press is exclusively entitled to the use for republication of all news dis- atches credited 1o it or not otherwise cred- ted in this paper and also the iocal news published herein. All rights of publication of special dispatches herein are also reserve Dictating Salaries. The Federal Government, through the Reconstruction Finance Corpora- tion, is in a position to become the czar of industry, transportation, bank- ing and insurance in this country. The rule which Jesse Jones, chairman of this corporation, has just laid down regarding the salaries which may be paid by railroads to officials of com- panies borrowing from the corporation is a striking indication of the extent of this power. Furthermore, the Sen- | ate fhot long since wrote into a bill) dealing with loans to insurance com- panies a provision that salaries paid to officials of these companies borrowing from the Reconstruction Finance Cor- poration should not exceed $17,500. The bill has still to be written into law and the House committee removed the fixed limit, leaving to the officials of the- Reconstruction Finance Corpora- tion authority to deal with the matter. Apparently Chairman Jones already feels fully empowered to lay down rules regarding the payment of salaries by these corporations. The Reconstruction Finance Cor- poration was devised as an aid to in- dustry, to agriculture and to financial corporations. It is an agnt of the Government. So avid were many cor- porations for Government aid during the period of distress that the loans of the corporations have been enormous and have extended far and wide. It may have been that the borrowers did not consider the fact that the lender would be in a position to impose terms in the operation of their businesses. But whether they did or not, it seems clear that this Government agency is able to dictate as long as the loans remain unpaid and especially in the case of new loans. If the Reconstruction Finance Corpo- ration can fix the salaries of the officials of corpcrations borrowing from it, just because it holds the purse strings, there seems no logical reason why it cannot dictate in other matters of operation as Jong as the loans are unpaid to this Government agency. It may bz that it is entirely just that a corpcration which is in such straits that it must go to the | Government for loans should curtail the | salaries paid its officials. Many of them have done so already. If the Recon- struction Finance Corporation has the pewer to compel a lowering of these salaries, it might also have the power to compel a lowering cf wages, or even to compel increases. Should it under- taks to tamper with wage scales, par- ticularly in an effort to lower them, there would bz an immediate repercus- | sion. Undcubtedly this dictatorship of the Government to private industry through the Joans extended will serve as an incentive, if any is needed, to corpora- tions to fet their houses in order as early as possible so that they may repay their loans and become in fact dictators of their own policies. To that extent the poiizy row adopted by the Reconstruc- tion Finance Corporation may be salu- tary. It would be an indefensible situ- ation if a private ccrporation were em- powered to borrow from the Government and to continue to let the Government “hold the bag” while it paid excessive salaries to officers or was extravagant in the operatizn of its business in other ways. Chairman Jores has laid down the rule that an cfiicer of a railroad corpo- ration “in the red” and borrowing from the Government agency must have his pay cut by 60 per cent if he is receiving more than $100,000 a year, and that if he receives frcm $50,000 to $100,000 the cut must be 50 per cent. Other salaries | to cfficials are scaled down until a 10 per cent cut is ordered for officials re- ceiving $4,800 to $10,000. Many of these officials will regard the rule as drastic and unfair. Nevertheless, public opinion is likely to applaud the rule. SRS £ Reports are to the effect that Mr. Morgan remains unruffied, taking ad- vantage of a business so highly or- ganized that even the worrying is done by meon especially employed for that purpose. = Several statesmen are apprehensive that what is referred to as re-financing may in some degree prove de-financing. Another Congress of Religions. Bishop Freeman's suggestion of & great rally of the religious and ethical forces of the Nation, to meet in Wash- ington and co-operatively consider the problems of this era of depression and moral sag, is eminently worthy of the attenticn of the general public as well as of those leaders to whom it was addrassed. ' It is true, as the bishop says, that the poliiical and economic life of the coun- try has been mobilized for the emer- gency. Indeed, it is one of the most hopeful signs of the moment that arti- ficial barriers between parties and groups have been broken down and that there is a large measure of co-opera- tion being developed among erstwhile rivals. Eiucation, art and science likewiss have caught the vision of unity, and i1 periodic conference representatives of cach of the many divisions of these ve:. fields of interest and enterprise gether for corporate study and discus- slon. then, should the dnuehzm Jspanese campalgn westward from ‘“non | good. | polled only about 32,500 votes. In yes- |likely to increase the tension between | abide by the tendency of the times? In point of fact, it should be as feasible for them to meet on common ground and for common good as it has been shown to be for politics, business, soci- ology, education, art and science. Bishop Freeman has challenged them in much | the same manner as President Roosevelt has challenged the nations to co-operate to eliminate armed strife from the world. Granted that there are difficulties, surely there must be some spirit of mutual charity and tolerance, some constructive liberality of mind in each of the denominations capable of making the necessary gesture of friendliness and sympathy in the circumstances. Forty years ago there met in Chicago a world congress of religions whose labors enriched the spiritual capital of mankind. Even today the effect of that conference is felt, and its example, it would seem, might be an inspiration to promote the project Bishop Freeman has sponsored. ‘The hope of future prosperity, prog- upon a revitalization of the people’s interest in religious and ethical ideals. An interdenominational rally of the type indicated could do no harm, and it is possible that it might do much It need not be said that the Nation’s Capital would be proud to act as host to such a notable gathering. R Danzig and Dusseldorf. The contents of the Polish “powder keg,” which is recognized as a menace to the peace of Europe, were by no means dampened by the results of the elections in the “free city” of Danzig yesterday, after the bitterest contest ever held there. The German Nazi party—which has been thoroughly or- ganized despite the theoretically inter- national regime under which Danzig is now managed—won a decisive vic- tory. The National Socialists and their allies, the Young Germans, gained twenty-five seats in the Volkstad, or Senate, which is the administrative body of the Free City, and on this basis the next government of the area which lies within the so-called Polish Corridor will be in the control of the Hitlerites. Two and a half years ago the Nazis | terday's election they gained 323 per cent. Danzig is theoretically under the con- trol of the League of Nations. This| demonstration yesterday of Nazi strength in the Free City, however, is Germany and Poland, possibly to the | point of a demand from Berlin for the physical as well as the partisan re- union of this important Baltic port| with Germany. Therein lies the ele-\’ ment of danger that has for months | past been apprehended as a possible | cause of conflict. The Poles have for some time been developing & port of their own at Gdynia, lying a little to the northwest of Danzig, thus giving them an undis- | puted and unrestricted point of com- | mercial contact with their foreign mar- kets and sources of supply. But this development has not lessened the peril of disturbance over the anomalous situ- | ation at Danzig and the separation of East Prussia from Germany proper. The Poles have been creating a large armed | force, equipped, it is understood, through French co-operation. The Corridor is now well occupied by these troops. From i day to day, almost from hour to hour, | there has been fear of some “mc!denl"! which would explode the powder keg. It was perhaps only by a coincidence without design that yesterday also oc- curred a demonstration at Dusseldorf of German militants. A cross was dedi- cated in honor of Albert Schlageter, a German whom the French executed as | a spy during the Ruhr occupation ten years ago. Three hundred thousand members of Nazi storm detachments and Steel Helmets were assembled and | were addressed by Capt. Hermann Goering, Prussian premier, in substitu- tion for Chancellor Hitler, whom “pres- sure of business” had detained in Berlin. | Capt Goering's address was marked by the note of peace. Schlageter, he said, | did not want conflict for the sake of | conflict. He wanted, said the premier, | peace for his nation “as all Germany | always wants peace, if only peace be | granted her.” Notwithstanding these pacific phrases | there was in Goering's address at Dus- | seldorf an expression of the Nazi prin- | ciple of a restoration of Germany to a ress and civil peace rests in large pnrt' ENING STAR. WASHINGTON, D. C, MONDAY, MAY 29, 1933, Peiping. And yet there is a diplo- matic factor in the situation in view of Feng's known enmity for Chiang Kal Shek. Gen. Yen Hsi-shan, once known as the “model governor,” and now and again an ally of Feng Yu- hsiang, 1s known to have an active and competent force of cavalry near Kalgan. Meanwhile, the Canton regime has issued a renewed denunciation of the Nanking government, of which Chiang Kal Shek is the representative, if not at present actually the head. Co- operation between the Northern and Southern forces antagonistic to Nan- king is not likely to be effected, but simultaneous attacks are possible, and if they should be undertaken, with the Japanese holding the Peiping area and the northeastern seacoast, the Shan- tung Province, which is controlled by Gen. Han Fu-chu, at the least not ac- tively supporting the central govern- | ment, the plight of Chiang Kai Shek | may become precarious by Midsummer, which is the established “season” for Chinese internal warfare. In these circumstances the chances favor an early truce between China and Japan. If such should be effected the relations between the “war lords” and the Nanking government would be improved, as regards the possibility of Russian intervention, which is held to be an ever-present factor in this highly complicated situation. ————————— A presidential week end trip down the Potomac is never expected to reveal how many fish were caught or how much work in economic calculation was gccomplished. It did not take the late President Coolidge long to revise his| opinion that fishing was & sport for | small boys., 1 1 ‘The dignity of the United States Sen- ate is stoutly contended for by Mr.| Glass, who may even venture to hope that during a Summer recess Senators | will not allow speeches to go beyond the limitations of courteous and formal restraint. » ——e— A ray of light from Arcturus gave the signal for opening the splendid Chicago exposition and demonstrated that light for practical purposes can be obtained | here much more cheaply than it can be | imported. —————————— Chairman Fletcher states that the President has shown no intention to stop the Wall Street investigation. The ‘White House inclination has been more for starting things than for stopping them. —_—rae— Every person in the country was eager | to present hero Charles Lindbergh with : some unsolicited token of esteem, and the House of Morgan was no exception{ to the.rule. ————— While Senator Hiram Johnson will! not be able to go to London, it may be | assumed that he will be a punctual reader-of the reports and a listener over | the radio. —————— Some of the stock assignments pro- vided immediate intrinsic improvement | that did not, so far as they were con- | cerned, permit any change in the mar- | ket to be ascribed to profit taking. ——————— Gandhi will receive world-wide con- | gratulations on surviving his fast and | close attention to his explanations of | what he has proved by it. ! spmsi R SHOOTING STARS. BY PHILANDER JOHNSON. Joyous Awakening. One night I dreamt I was a King Or Emperor, or some such thing, And sat upon a gilded throne And spoke up in a haughty tone, While courtiers knelt and flattered me. And when I jested, laughed with glee, And trembled, lest I might, some day, Chop off their heads or stop their pay Another King came drifting nigh He was a crude and husky guy. The way he bluffed me was a shame, He showed me where to sign my name. He did not hesitate to scoff; He showed me just where I got off. Stenographers next flouted me, My minstrels all sang off the key, And when I traveled forth in state | Some Communist would lie in wait, | Who aimed at me, and then got hissed, | By former friends, because he missed— pre-war basis. That utterance, together | with the Danzig election, is a token of | the serious possibilities which today | make Germany the center of attention | for all the nations of Europe. | v i Chicago is not sparing pains or ex- | than that which went on under politi- | cal auspices last Summer. - | No one asks any special sympathy about his own banking perplexities in | view of the fact that everybody the world over is having them. ——e—— Chinese Complications. [ Evidence appears of the entry of a new factor in the Japanese-Chinese situation in the northern part of China proper. Feng Yu-hsiang, the so-called | Christian general, who has on several | occasions during the past few years| gravely complicated the Nationalist | program by leading large scale revolts | now seated at Nanking, is said to be holding & strategic position at Kalgan, | on, the main route between Peiping and | guard” of some three thousand troops, | evidently awaiting an opportunity w| they make their way into the Peiping| area or to move southward to resume the commander in chief of the Chinese armies. The suspicion has been ex-| pressed that Feng is receiving or ex-| pects to receive supplies from Russian | sources. A caravan route extends from | Urga, in Mongolia, to Kalgan, which| lies a comparatively short distance to the northwest of Peiping. Between | these two points is an airline of some six hundred miles, caravan transport | requiring several weeks, over a con-| siderably longer course. The Japanese are reported to be somewhat concerned | respecting the possibility of a-flow of | supplies from Russian sources to uul hands of one of the stoutest and clev- | erect fighters of all the Chinese. Thus | the presence of Peng at Kalgan may give cause for an extension of thel pense or talent to put on an even more | jnAvence” remarked the extensive and magnificent exhibition | ¢itizen, Oh, welcome sound! Oh, sweet relief!| The Old Alarm Clock ends my grief. | Take back the scepter and the crown! | Just lead me to my job downtown! Working Both Ways. “Some financiers have great political observant “The idea works both ways,” an- swered Senator Sorghum. “Some poli- ! ticians have great financial influence.” | Jud Tunkins says there’s no use speaking your mind unless you are a big enough man to make people mind your speeches. Unfailing Supply. Advice is something strange, they ay. It's squandered without care. The more a person gives away, The more he has to spare. The Lucky Ones. “Have you attended the races?” “Yes,” answered Miss Cayenne. against the Kuomintang government| “With a man who knows all about| horses.” “How did you come out?” “Same as usual. The bookmakers Siberia, with an immediate “body ' had some wonderfully narrow escapes.” | “If you would be a reformer,” said strike either the Japanese forces as Hi Ho, the sage of Chinatown, “do not | be content to make others quit doing things their way and begin doing them his argument with Chiang Kai Shek,|yours. You may prove only a leader of fashion.” Bad Examples. ‘When Gandhi shows with patient care, How food can be omitted, His fault is great, some folks declare, He should not be acquitted. hen famous foods he thus disdains, Refusing every sample, Each advertising man maintains He sets a bad example. “Some folks,” said Uncle Eben, “spends half de time cuttin’ up high jinks, an’ de other half cuttin’ down expenses.” Wi ——— Essential. From the Sioux Falls Daily Argus-Leader. An airplane builder suggests “non- stop” flights, They'd el his distinguished father has been con- ’ President was | wait for THIS AND THAT BY CHARLES E. TRACEWELL. ‘The annual change from cool weather to warm is seldom dramatic. It creeps up day by day, until suddenly one knows it is Summer. That is all, and it is enough. It is Summer, and every one enjoys it, except the old grouches of this world, who always find something to complain about in everything. Shouldn't one feel sorry for the old grouches? It is not their fault that they discover a flaw in everything. It is there! The truth seems to be that humanity, in theory at least, has chosen to be- lieve that flaws do not exist. ‘The man or woman who refuses to join this tacit conspiracy to make the world better by saying it is better is always labeled “‘grouch,” mostly because he or she won't play the game. * ok * ok Summertime has its mosquitoes and its files, and its added noises, and its heat, and its perspiration, and its clank- ing of ice cubes in tall glasses. Consider those ice cubes. Once they were supposed to be “the very latest thing,” but now that day is gone by. ‘Then no one could say & word against an ice cube. ‘The ice cube, we believe, was sacred, and no man dared profane it. Now every one knows that the blamed things have a habit of piling up in the glass, 50 that the uppermost one tickles the end of the nose. * kKX % Yes, it can be said now that the top cube has a horribly disagreeable habit of butting against the very tip of one’s nose as the glass is raised to the mouth. Nobody minds you saying that today about an ice cube, but you couldn't say it then, on pain of being branded an old grouch. To slander the cubes was to put one's self in favor of less progress, and squarely against modern inventive gen- ius, they said. ‘What! This sad fellow dared to in- sinuate that ice cubes were more trouble than they were worth? Why, he was fit for hanging, at least. * X ox % The same prosecuting agent who | several years ago wanted proceedings to start immedidtely against any one who dared impugn the 100 per cent Americanism of your healthy ice cubes now owns a neat crusher, which pul- verizes an entire bucket of cubes in a few deft whirls. 2 So it goes all along the line, and all Summer long. It isn’t popular to say a word against the popular thing, or| against the thing which every one sup- poses to be o popular. The old grouches do not mind much, however; they hold to their opinions, and out of their opinions come many and great improvements. ‘They are simply the first to kick, the first to voice what all the others will think in time. Let us give the grouches credit for being pioneers of real progress, upon occasion. * K % % Summer moves the collar into the light as an added ground for com- plaint. ‘The white collar has become the sym- bol of the desk job, but in hot weather it becomes a torture to many a wearer. The old expression, “get hot around the collar,” really meant just that, al- though the figurative end has usui the practical side of the matter. In cold weather the sensitive male neck stands the white collar very well, but when warm days arrive it tends to become irritated. The probability is that the average Mr. Woodin’s early retirement from the secretaryship of the Treasury was a current_and persistent Washington l’e-i port. Rumor had already selected his successor — the fair-haired boy of the administration, Budget Director Lew | Douglas, who has in fact been one of the Prestdent’s closest financial ad- viers from the outset and grown steadily in Mr. Roosevelt’s regard. Douglas would be the youngest, if not the great- est, Secretary of the Treasury since Alexander Hamilton. * k% x One of the great Wall Street private bankers soon to face Mr. Pecora’s guns decided to shun the discomforts of hotel life in Washington ard has leased for the duration of the war one of the Capital's show places commanding an incomparable view from the Potomac's heignts. There he will hold court ca- paciously while ‘“wanted” on Capitol Hill. The chatelaine of the establish- ment was not keen to rent her menage, but succumbed to the lavish blandish- ments of the grandee of Willlam street. &k An extraordinary phenomenon inci- dent to the formulating of the admin- istration measures for the ccntrol of the industry and the railroads and the banks and for legalizing our abandon- ment of the gold standard and for invalidating the gold clause in our Government and private bonds—all matters bristling with intricate and /cially in certain cases of chronic disease. rped | the temperature. WASHINGTON OBSERVATIONS Long before the Morgan revelations, man still wears a collar too tight for him. Despite the plea for the loose collar, and the movement toward lower collars, the average wearer prefers a moderately high and tight one. Such a collar looks ‘better and feels better— except in Summer. Then a collar becomes & nuisance, and were it not for custom, which is as pow- erful here as elsewhere, this tight white band would be discarded for the dura- tion of the heat. * * % x ‘The so-called Adam’s apple, one may feel convinced, is what keeps white col- lars tight around millions of manly necks all Summer long. ‘The average Adam’'s apple is not a thing of beauty. In fat people it is better covered, and does not bob up and down so during conversation, at least to_the gazing eye. ‘This queer organ demands something to cover it up, Winter and Summer, and commonly gets it, in the form of one of the popular shapes of white collar. No, the addiction of the average male American for this same neckband is not due to any particular desire on his part to indicate to the world that he is a “white collar man.” Even when he wears a shirt of a colored material he usually provides himself with a collar to match. One distinguished Government official of the Republican regime never wore anything but highly colored shirts with highly colored collars to match, and his en- sembles became him mightily, on ac- count of his high coloring. * X K K Summer would never be quite as hot as it is if people would mind their own business more, but they are forever wanting to drag one out to a show on a warm evening, to “forget about the heat,” they say, when all the time the unnecessary movement is very likely to be the one thing necessary to make one remember it. ‘There’ is increased public noise in Summer, and persons sitting out ought to remember that many tired men and | women, who have worked all day, nesd sleep. Little children, too, often are disturbed by Summer night noises of the man-made variety. Often a slight moderation in tone would permit all to enjoy themselves. * K X X ‘The very heat of Summer is a com- pensation to many. Owing to the in- creased pérspiration a general increase in health results to many persons, who, as uncomfortable as the higher tem- peratures make them feel, nevertheless receive an added store of every-day health as the result thereof. Perhaps the increased use of liquids helps, too, since it is commonly held that the average person drinks far too little water in a day. Whether this is a legitimate belief or not is a question; there are some who are inclined to feel that the system calls for its own fluids, and if it does not call for them, it does not need them. Many go on the theory that a cer- tain mathematical number of glasses of water should be poured down the throat every 24 hours, whether one wants the water or not. There may be some benefit to such a program, espe- Such methods of cure, or rather aid, ought to be easier to “take” in hot weather. Indeed,. the demand for a plentiful supply of liquids increases with There is one Washingtonian who swears that the moment the thermo- meter registers 90 degrees he feels an irresistible longing for iced tea, and at no other time of the year, nor even at 1 degree lower. asked, “How come?” and is said to have observed in reply that James did not submit his radio speech to his father for any okay; that James was over 21 years old and, furthermore, that his father has not laid eyes on him for nearly 10 days. * * o % Senatorial confirmation is in pros- pect for Guy T. Helvering, one-time member of Congress and Democratic chairman of his home State of Kansas and named by the President for the post of commissioner of internal reve- nue. But there has been a battle royal behind the scenes in the Sehate Finance Committee over Helvering, and there may bz some plain speaking on the Senate floor. It is the only Roosevelt appointment to date to encounter for- midable senatorial protest. The nomi- nee’s record in the handling of Post Office appointments in Kansas when he was in Congress, his activities in the successful prosecution of income tax refund cases after he got out of Con- gress and while the Democrats were still in power, and his handling of campaign fund-raising drives in his home State in recent years have been under searching scrutiny by the Senate committee. At the wind-up, the com- mittee voted 10 to 7 to recommend confirmation. It was a party division, except that Senator Walsh, Massachu- setts Democrat, voted with the six Re- publicans against Helvering. (Copyright, 1933.) debatable constitutional questions—has been the absence from the picture of Attorney General Homer S. Cummings and the Department of Justice. The | Attorney General has been on a vaca- | tion for the past two weeks, playing golf at Asheville. The Department of Justice, with its new Democratic staff still incomplete, has, to all cutward ap- pearances, been in a state of suspended | animation. The circumstances inevit- ably give rise to hints that Mr. Cum- | mings is not only out of touch, but out | cf sympathy. * k x * The Morgan disclosures have ex- | ploded a lot of popular conceptions | about Federal income taxes. The| country has discovered, to its astonish- ment and dismay, that American citi- zens may have the cash to pay for three- escape the payment of a Federal in- come tax, and escape such payment under circumstances and by devices sanctioned by law. The country is| brought to a realization that an income | tax is something more than a question of the percentage tax rate. It is a question also of exemptions, deductions and legal loopholes. The tax is as- sessed against net income, but net in- ccme means ‘‘statutory net taxable in- come,” and that, as shown in the case | of the Morgan partners, is frequently a horse of a difierent color. * o | A partnership, as is J. P. Morgan Co., | pays no Federal income tax as such, but each partner accounts to the Govern- ment in Lis individual income tax re- | turn for his share in the profits or the! | losses of tre partnership. The Morgan | partners receive no salaries. If the part- nership books show that the losses ex- | ceed the profits, then the taxable in- come of the partners, except for income from other sources, is something less | than nothing, and that is so, in con- | templation of the Federal income tax law, even though they actually drew out of the partnership a thousand dol- lars in cash or a million dollars. If there were no profits this cash could not have been income. It must have been capital, and capital is not taxable under an income tax law. The Govern- ment goes after the capital via the in- heritance tax route. * kK x The President gives himself no worry or concern over public statements and comment, via newspapers or the radio, of his associates and advisers —not even when the voluntary interpreter of his administration is his own son James. The latter is a weekly feature of a radio program of a Boston broadcasting sta- tion. In his most recent broadcast James Roosevelt commented on the Morgan income tax disclosures—sug- gesting that the law, rather than Mor- gan, was to blame—a subject on whick i | | spicuously silent. The million-dollar private yachts, yet may I | been gone over mile by mile. —.— Floating Gold. From the New York Times. in two articles in the Journal of the American Museum of Natural History, | Robert Cushman Murphy, curator of oceanic hirds, assembles the known facts concerning ambergris, which he calls floating gold. The beaches of the | seven seas have been searched for it. Dr. Murphy himself has scanned the surf line in Mexico, Peru, Ecuador and the shore of the Mediterranean for a lump of it, and still hopes that his quest will yet be rewarded. The impression that there is plenty of ambergris about, and that any on: may chance upon it sooner or later, seems to be warranted by the encyclopedia’s assurance that the treasure may be picked up on the coasts of Brazil, Madagascar, Africa, the East Indies, China, Japan, the Mo- |luccas and of the West Indian isles, &= particularly the Bahamas. The long | Atlantic coast of the United States has | At least 40 enthusiasts have called at Dr. Murphy's office to learn whether a pe- | culiar substance they brought with | them was the real thing. Only one of | them had been lucky enough to find ambergris. He was a prospector who | had come upon a wolf in the act uf‘ sampling “a large chunk of carrion” on the beach near Nome. Driving the ani- mal away, he appropriated what was left. On being told by the curator that the stuff was actually “floating gold,” he exclaimed: “To think if I had| been 10 minutes sooner that wolf | wouldn't have cost me a $5,000 meal.” ‘While ambergris is sometimes cut out of leviathans' vitals by whaling men, it was known and used by makers of perfumery centuries before the whaler made his discovery. A dealer in am- bergris, which he purchased from whaling ships and beachcombers, was Capt. D. C. Stull of Provincetown, a friend of Dr. Murphy. The biggest sale known to them was that of a London merchant, who obtained £18,360 for a lump of 270 pounds. ———— Consumers and Rising Prices. From the Boston Evening Transcript. It is a strange world in which con- | sumers are expected to rejoice at signs that prices are rising. Quick Learner. From the Detroit News. A Boston motorist leaped a ditch | and crashed a tree after only two driv- in‘;lfisflu, which must be beginner's uck. o The Song Test. Prom the Lynchburg News. ‘The way to settle the question of how u)?oxlc.llf‘l the new beer is would be to | & change in the system will | the country gasped. The Political Mill By G. Gould Lincoln. No congressional investigation has so stirred public interest in this country for years as has the Senate Banking Committee’s inquiry into the House of Morgan. The vastness of the Morgan interests, the veil of privacy which has kept the public gaze from the opera- tions of this great banking house and has whetted the curiosity of the outsid- ers would under any circumstances ac- count for much of the interest in the present investigation. But it happens also that the banking situation in the country today has developed a tre- mendous interest among the people. They want to know all they can about the banks. And they wish above all things to be sure that the banks are cafe. The restoration of confidence in the financial mnstitutions of the coun- try is_all important to business recov- ery. In some quarters the inquiry into the firm of J. P. Morgan & Co. is criti- cized on the ground that it will further destroy confidence. That seems a par- ticularly stupid way of looking at the matter. * ok ok * In the first place, J. P. Morgan & Co., judging from the testimony so far pre- sented, has been wn a bulwark of financial strength. Despite the depres- slon, the House of Morgan apparently has not been shaken. It has had its losses, huge losses, but seemingly it is still entirely sound. In the second place, the people are entitled to know some- thing of the operations of such finan- clal institutions which reach into every phase of American life, through not only the banks, but all the great indus- tries. If there are faults in the system, if there is too great centralization of power in the hands of a few men, why keep it covered up? * k¥ % There is always the question whether make for the better of the grcat number of peo- ple affected. What can be offered as a substitute? The House of Morgan has undertaken to finance and to or- ganize great industries in this coun- try; to come to their assistance when hard pressed. It has come to the aid of this and other governments in the past. Only the fullest information to the people regarding its operations can help. And apparently the members of the firm are co-operating to give this information. They realize that the great private banks are under fire. The opening statement at the hearing by J. P. Morgan himself, the senior part- ner of the firm, was a defense of the private banking system. They are as much interested as any one in the country in the outcome of the investi- gation. * * * x The investigation is to be pressed to | —O. the limit. Whether any persons desire to choke it off or not, there seems not the slightest doubt now that the Sen- ate committee and its counsel, Ferdi- nand Pecora, are going through to the end. It has been charged that Pecora is engaged in this hearing merely for the sake of publicity and what it may bring him. Attempts to discredit the committee’s counsel have been made. But after all those things are beyond and outside ‘the real purpose of the investigation. The instruments through which the workings of the system are revealed are of far less importance than the revelations themselves. e The Senate and the House already have passed the Glass-Steagall banking bill, designed to reform the banking system of the country. The bill is in the conference stage and is expected to become law, despite opposition. So far as this measure affects J. P. Morgan & Co. and other private bankers soon to be brought before the Senate com- mittee, it is exceedingly far reaching. Senator Glass wrote into the bill a provision which would prevent partners of the Morgan firm from holding places as directors in commercial and indus- trial corporations. The 20 partners of the firm hcld more than 170 directorates on the controlling boards of many of the greatest industrial corporations in the country. The firm has fioated since 1919 and the close of the World War more than $6,000,000,000 in securities, demestic and foreign, and has reaped many millions of dollars in profits thereby. Under the terms of the Glass bill, the Morgan banking firm must de- cide whether it is to give up its security investment business or its ess as a bank of depcsit. There is a provision in the bill which declares that it must confine itself either to commercial banking or to investment banking. And if it chooses to continue as a bank of deposit, then it will be subject to T‘;- nual examinatiops by the authorities. Heretofore, the Morgan firm has been subject to no examinatipn by either Federal or State bank examiners. B It is a strange situation, almost a paradox. that the man who has been responsible for these clauses in the bank reform bill, Senator Glass, should now be widely heralded as the defender of the Morgan firm at the hearings before the Senate Banking Committee. Senator Glass has criticized, inter- rupted and ridiculed the conduct of the investigation by Pecora. He has maintained that it is a “show,” a “circus,” without ,direction and with- out useful aim, and that it has been subversive of the dignity cf the Senate committee. Probably no other man in the Senate would have so undertaken to browbeat and check the counsel of the investigation committee, except perhaps Senator Couzens cf Michigan, if the latter had a mind to do so. But it happens that Senator Couzens is at present intent upon having the investi- gation as conducted by Pecora carried forward to the end. Senator Glass pays little attention to what is popular or to politics. He has his own ideas of ethics, and of what is proper and how far the private affairs of the individual citizen should be held up'to the public gaze without the consent of the in- dividual. . * kK * One result the investigation of the Morgan firm has been almost imme- diate. When it was testified that none of the twenty partners of J. P, Morgan Co. paid any income taxes during the years 1931 and 1932, and that col- lectively they paid only $48,000 in 1930, ‘The section of the income tax law that permitted writing off capital losses was responsi- ble. The Moszan partners had merely cvailed themselves of the provisions of | the law. Undoubtedly they did no more than many other wealthy men had done. The House Ways and Means Committee overnight wrote into the tax prcvision of the public works and industries bill a provision to check such operations, so that capital losses may be deducted only in the year they are suffered and only against capital gains. %4 % ‘The revelation regarding the income taxes of the Morgan partners was no more sensational than the publication of the lists of favored clients of the firm, who were permitted to purchase stocks at prices much below the exist- ing market price. The investing public, paying the market prices for these securities, looks sourly on a system which permits a favored few to get in on the “ground floor.” But just what kind of legislation can be enacted to prohibit ground-floor operations of this | kind is a tough problem. The latest phase of the Morgan in- | vestigation is into the holding corpora- ticn, United Corporation, set up by Morgan and Bonbright & Co, to own and control stocks in public utilities throughout the Eastern half of the United States. Through its ownership of these stocks, Morgan & Co. “in- fluences” the major policies of these public utility corporations. The picture of the set-up of Morgan control in banking and industry in this country is indeed amazing. —— e — A Job Remaining. From the Hartford Courant. Congress has not yet reached the end of its taxing ‘Ax‘flhfllfie& until it is forced to provide jobs for millionaires who taxes, must pay income BY FREDERI Of the vast number of quesiions answered by this department, only a few can be published in this column. The ones that are printed must be of general interest and not personal in their nature. Do not, therefore, merely sign your initials to your letter and ask that “the answer be published. Give your full name and address so that you may receive a personal letter in reply. Inclose 3 cents in coin or stamps for re- turn postage. Do not use post cards. Direct your letter to the Evening g::l‘ ‘lnwrmlmon Bureau, Frederic J. kin, Director, Washington, D. C. Q. _Will there be sporting events at | the Century of Progress?—M. M. | A, Elaborate plans are being made. | Soldier Fleld and two large lagoons are within the fair grounds. Nearby are the lake and facilities for many sporting events. Present plans call for the staging of some 25 national cham- plonship events, and more than 75 days portan Q ce. In wiat years since 1910 have ernment receipts?—S. C. C. A. In 1913, 1914, 1915 1917, 1918, 1919, 1931 and 1932. Beginning in 1920 and extending to 1930 a series of annual surpluses accrued to the Treasury. At | the end of the fiscal year 1930 the sur- plus approximated $184,000,000. Q. What proportion of the immi- grant population of Canada is from the A B S. A. About 51 per cent is from the British Isles or British dominions. About 15 per cent is from the United States. Canada is about 2,307,500. Q. How will employes be selected for the Muscle Shoals project?>—J. K. A. The law providing for the devel- opment of the Tennessee River estab- lishes a board, which will have direct supervision over the way in which em- ployes will be selected. They will not be under civil service rutes and regula- tions. As soon as the board has been appointed and organized, a letter dir- rected to it will be referred to the proper division for consideration. The bill provides that the board have its offices in the vicinity of Muscle Shoals. Q. Is marble polished by machine or by hand>—T. H. L. A. Large flat surfaces of marble are usually polished by machine. Curved and molded faces must be rubbed down by hand. Q. How far from Moscow is Ekater- inburg, the scene of the assassination of the Czar Nicholas, 2d, and his family? . M. A. It is 1200 miles northeast of Moscow. Q. Are there any wild horses living today?—M. F. A. The only real wild horses now living are in Mongolia. Q. Where did die?>—A. E. A. This English soldier distinguished himself not only in China, but on many other battlefields. He was the com- mander of the forces at Khartum, where they were beleaguered for 10 months. Khartum fell when the Brit- ish army of relief was within two days’ march, and Gordon was slain. . Is an act which has become a habit consciously or unconsciously per- formed?—M. G. A. By repetition the act becomes spontaneous. What has been learned becomes a matter of course, uncon- sciously utilized when the cue is given. Q. Is it & fact that cannibalism still exists in Haiti?—F. H. will feature sporting events of im- | ‘Government expenses exceeded Gov-| British Isles and the United States?— | The immigrant population of | “Chinese Gordon” | ANSWERS TO QUESTIONS - ' C J. HASKIN. A. Cannibalism does still exist in the Haitian republic. There are two forms | of cannibalism, one the result of ex- treme hunger and the other, ritual cane nibalism, & part of a religious ceremony. Capt. John H. Craige, author of “Black Bagdad,” says: “I do not know of any cases of cannibalism of the first variety occurring in Haiti, within my personal experience, but during my duty as chief | of police of Port au Prince, Hait{’s capi~ tal, I met a number of cases of canni- | balism of the ritual variety. In one of | these cases, an aged voodoo priestess was murdered, her heart, liver and about five pounds of her flesh were taken and | eaten after savage religious rites by & younger priest and priestess, with the idea that they would thus acquire the | old woman's control over the spirits and | her proficiency in voodoo magic.” | Q. 1Is there a tariff on sugar from | Cuba and Puerto Rico?—S. L. A. There is a tariff on Cuban . Puerto Rico belongs ta the Onfted “gt:'('s, so her sugar coimes in free of | duty. | Q How were houses furnished in | ancient Rome?—B. P. A. In the ancient Roman houses, furniture was scarce and consisted of necessities, such as s, tables and chairs, and sometimes reclining divans. Carpets were unknown; the floors were generally of concrete or of tiles. Cur- tains (aulaea) were sometimes drawn over the opening in the roof of the an- trium. The beds, couches, tables and | chairs were generally of wood. Tables | were often very elaborate and some- times of metal. The houses had few windows; generally they were merely small openings closed at night by shut- ters, frequently consisting of two leaves —sometimes they were covered with lattice or trellis work. In excavations at Pompeil fragments of glass were | found indicating that glass windows | were not unknown—other transparent | substances also were used. Q. Please give the address of the | Waysiders—M. W. A. The headquarters is Cottage-by- the-Wayside, Route 4, Box 625, Char~ lotte, N. C. This organization is espe< | clally founded for shut-ins and handi- capped persons. Non-shut-ins and none | handicapped persons are also welcomed | as members. The shut-in members pub- lish a little magazine called By the | Wayside. Q. How many cities have mayor and council form of government, and how many have other forms?>—J. M. M. A. The mayor and council form of government is in operation in the larg- | est number of cities in the United States. In 1932, there were 546 citles of 10,000 population and over having this gre of government. Those ha council managers numbered 432, an those having city managers in 1931 numbered 425. More than 300 Amer- ican cities have commission form of government. Q. Are men now being enlisted in the Navy?—J. W. A. By order of May 4, 1933, no new enlistments are being accepted in the United States Navy. Q. What is a falling star>—C. W. A It is a meteor. If it actually reaches the earth it is known as a me- teorite. Meteors are tiny masses which under certain circumstances of motion and position dash into the earth's atmosphere at a speed of from 10 to 40 miles per second. The heat generated by the friction with the upper air th:nily S o Q. Is lead used in the manufacture of lead pencils?—A. A. P. A. It is not. At the breunt time, a mixture of graphite and clay is used. Governmental moves in the direction of Federal control of the production of oil receive approval not only from thz region of the oil wells, but also from those who are advocates of the con- servation of natural resources. Waste is held to be the great evil in this field, and the purpose to put the matter un- der the jurisdiction of the Secretary of the Interior is in harmony with ef- forts in other directions to make proper use of the Nation's assets and prevent “ruinous competition.” “President Roosevelt seeks results along the lines of the greatest good to the greatest numb: asserts the Fort Worth Star-Telegram, with the belief that “he would preserve values ana | make profits commensurate with in- | vestment, material and labor.” The Texas paper holds that its own State was the cause of “the Federal move- ment toward oil regulation,” and makes the comment: “Since the discovery of oil in East Texas it has bcen easily obvious that this State occupied a key position in the world’s oil industry. ~If a conservative stand had taken and maintained in one of the largest operating fields in the North American | continent—that of East Texas—the tre- {mendous scope of industry directly in- fluenced by crude oil and by its by products would not have been the fac- tor it was in the retardation of our climb out of the depression. The mes- | sage of President Roosevelt will doubt- less justify Congress in taking the ac- tion recommended. It is the only way |out. now that every other method has failed, and justifiable as such. Crude oil as a State’s natural resource should be a matter of State control. States should conserve it and profit by the revenues from it. If they will-not, and insist on wasting it, the only recourse | Interstate Commerce Commission reg- ulation. During the period of tem- porary—and _arbitrary—control of the flow of the East Texas field, there was a distinct improvement -in the entire ofl industry. Judging the future by the | past, it is almost certain that Federal | control - will cause the oil industry to be the leader in that which has been called ‘return of prosperity.’ " “Waste of oil and gas,” says the Okla- | tive to a heritage that cannot be re- placed,” and that paper urges haste in measures to “curb the waste that has long been characteristic of oil develop- ment.” The Times points to the dif- ference between production of this nat- the land. with the summary of condi- tions: “Surplus crops may go to tue dumps in an effort to bolstar prices, and hungry citizens make righteous protests, but more crops will be grown. In this fertile and productive land ths food supply of the future is long as- sured. Our lumbering meihods have been ruthless and wasteful, and for such blundering and cupidity a heavy penalty is paid in needless floods, pol- tluted streams and soil erosion. But now the work of reforestation gains momentum. There will be forests again where waste lands are today. But men have not learned to replace the mineral wealth, once it is exhausted.” The Oklahoma paper also argues: “The greatest service the Government can perform in this particular industry is to prevent future waste of oil and gas and regulate development on sound eco- nomic lines, thus saving ths huge ex- pense of drilling needless wells. When we realize that natural gas, worth far more than the oil produced, has been wasted in the Oklahoma City fleld, it is evident how great is the need for better conservat! regulations than this State has devised or enforced. That many more wells were drilled than would have been needed under an or- derly development on a unit basis is evidence of furtber needless extrava- gance here.” “Something has to be done; we have a resource that is literally being thrown away,” is a statement by Ickes, which is quoted Spokesman-Review, and that paper comments: 'zuw of our national re- {1s to control it through- a species of P! homa City Times, “has become destruc- | ural resource, and other activities on Regulation of Oil Industi'y Put Among Needed Reforms sources is the country's besetting sin —waste of the forests, waste of the soll by excessive cropping and erosion, waste of our metals under forced pro= | duction and world competitive prices, which leave to this country less than a molety of its equities in these re< sources. For 80 years, since the build- ing of San Francisco brought into brisk demand the lumber Trom Puget Sound and the Columbia River area, we have been sacrificing this rich resource, of~ ten at cutthroat prices, that broke hun- dnga“ozo n:gnuhcturers and {:n scant prof ose strong enough to sur- |vive. The Secretary of the Interior right—'something has to be done.’” “Chaos in this great industry” would be prevented by the Providence Jour= nal, with the understanding that the Government “intends to act quickly,” and the belief that “the only compare able economic waste of a valuable nat- ural resource was long years ago, when much of the timber land of the Nation was denuded.” The Journal adds: “Thought was chiefly centered on the necessities of the time, and probably not at all on the requirements of fu- ture generations. The sam> lack forethought has been 1spu¢nt in the oil industry for years. ith the posted price of crude oil down recently to 10 cents a barrel, it is obvious that serious | overproduction is being practiced. Even this week posted prices in certain areas have been as low as 25 cents a barres, The abnormally low price quotations, serious though they are in themselves, represent only a current problem in pri- vate business management that will yield to_intelligent treatment. But the regrettable economic waste which such low prices reflect is a problem of vital national concern, profoundly affecting | the future of the country.” ’ | _ “There should be no quarrel with the | purpose to confer upon the Secretary of the Interior powers to regulate the production of petroleum,” thinks the ‘Wall Street Journal, which reviews pre- i vious efforts: “Ever since the war it | bas become increasingly evident that oil was destined to play a great part in our national economy, and that the |store of it should be guarded. Presi- dent Coolidge became so impressed with this fact that in December, 1924, he appointed three members of his cabinet as a conservation board, to study the | subject, and in his announcement of this appointment made the following | points: ‘Precent methods of production |are wasteful because of competitive drilling. Our national defense and the' supremacy of the United States may be determined by availaktle deposits of pe- troleum. A further shortage of fuel | oil, lubricating oil and gasoline must b2’ avoided.” He added: ‘The produce tion of our 300,000 wells is in excess of immsdiate requirements. That over= | production epcourages cheapness, which in turn leads to wasterulness and dis~ regard of esscntial values. . . . Our re< sources of oil are limited” The work | of this board came to naught, because | there was no autherity for the United ! States to act in"the matter.” i -t Tell It to Europe. | From the Pasadena Post. A lccturer says there is nothing in Europe worth fighting for now. If his conviction eould be impressed upon ‘Eugzp?‘nn dpo;fls perhaps they would | undersf e foll; aining | great armies. St | Close to the Top. | Prom the Boston Transcript. He who tremples and destroys l'l:"en lnbl tpl‘:k I:“v’i:“ be the me::: man, but he among runners-up. i s ———————— i Hit or Miss? | From the Fort' Worth Star-Telegram.