Evening Star Newspaper, June 16, 1933, Page 17

Wash ington News WA, Che WITH SUNDAY MO SHINGTON, RNING EDITION D. C., FRIDAY, JUNE 16, 1933. Foening Stap %k Society and General PAGE B—1 RENTAL INQURY | st 1 st ] . A A HEADHOLDS Roosevelt’s Powers Set New PeaceTime Records HAMILTON T0 PAY Drive to ‘Consume More’ Substituted for ‘Conserve More’ INTERESTIN BANKS 10 GO ON DESPITE DENIAL OF FUNDS Utilities Commission Handi- capped, However, by Fail- ure of Senate to Act. WIDE POWERS GRANTED FOR INVESTIGATION Complaints Will Be Received and Efforts Made to Bring About Adjustments. ‘Though deprived by the House of needed extra help or extra funds for | the purpose, the Public Utilities Com- mission prepared today to attempt to comply with the Senate resolution di- recting it to continue investigation of rental conditions in Washington during the recess of Congress. The commission found today it had been granted wide powers by the action of the Senate, but was somewhat nonplussed by the failure of the $2,500 proposed appropriation with which to exercise that authority. ‘The problem is to find a way to con- duct a comprehensive examination of rents in many individual cases and to seek adjustments where found required out of justice to either tenants or land- lords, without needed funds or help. Complaints Will Be Received. Nevertheless, Maj. Gen. Mason M. Patrick, veteran Army officer, takes his new orders at face value, and an- nounced today the commission will re- ceive any and all complaints regarding rents, will seek to make adjustments and will attempt to have ready at the ning of Congress next January a report of the activities. Chairman King of the Senate District Committee expressed the opinion today that the commission could carry out the resolution adopted by the Senate. The Senator pointed out that the Capper resolution requested the com- m&;n to prepare a report on the sub- ject for the Senate when it returns in . The Senator said he expects to remain in Washington for several weeks, giving attention to local prob- lems. and that before leaving he plans to confer !';lch the gflhfiefil it)nmglsségn regarding the possibility of having the rental and housing information com- led. The District Committee chairman also said that within.a few days he would ill the vacancy on the Milk Investigat- ing Subcommittee caused by the resig- nation of Senator Copeland of New York from the subcommittee. Senator Austin, ublican, of Vermont, is chairman of this subcommittee. Record to Be Asked. 1In the next few days the commission will request the Senate District Com- mittee, a subcommittee of which has rent investigations in the , to make available all in its work as a tions. ‘Also the commission will seek to find some means of providing needed extra help or funds from other District sources, since the commé:s!ondnu‘i is engaged in numerous rate and valua- fln‘n cases which have its staff working | at_full blast. If needed clerks cannot be ‘“bor- yowed” from other District agencies, it today, the commission as a lic Welfare, to assign of unemployed clerks or ac- countants, or other business-trained persons, now on the emergency relief rolls. By such a means, it was believed, necessary record-taking, testimony, complaints and letters may be handled for the commission in the rent investi- gation. Holds Legal Powers. The commission has been advised 1t | has all necessary legal powers to listen to complaints from tenants, to call on jandlords to attend hearings and to submit requested data and to seek to bring about fair adjustments in rent levels. Tt appeared today that the one major question concerning the commissicn’s actions would be power to force any changes in rent levels or other rental conditions if a landlord should refuse to obey & commission order. Court action might result from such a develop- ment. The commission did not indicate today, however, whether it would seek to compel compliance with any of its rent orders or whether it merely would report to the Senate the effects of any such orders it may issue. The debate on the matter by Senators yesterday revealed doubts in the minds of some as to whether present condi- tions here constitute an “emergency” which would result in court approval of orders for reductions in rent. DISAPPEAR|NE BOY AGAIN SOUGHT BY HIS PARENTS Edward Hutchins, Jr., Has Been Missing Since Monday, Clad Only in Knickers. i i | A life of adventure still appeals to| 8-year-old Edward Hutchins, jr., wbo is again missing from his home at 145 E street southeast. Edward disappeared Monday noon during the hot spell, clad anly in & pair of knickers. He has eluded an almost constant search since and his mother fears he may be suffering from exposure or ill, as he was exposed to mumps shor‘ly before he left home. The first of this month Edward left home and dodged about Washington for five days, sleeping in hedges on the Capitol grounds, talking his way into moving picture shows, eating fruit off push carts and swimming in the Plaza fountain. Edward has a taste for night life, his mother says, and no amount of hardship seems to cure him. He has brown hair, brown eyes and weighs about 65 pounds. When Edward left home last he was dressed in a pair of knickers partly be- his mother felt he would not go adven- turing in such scanty attire. Edward’s mother has asked the help of residents in an effort to locate her son. On previous jaunts, Edward has hung about the Capitol grounds and the underground railway between the Cap- tal buildings. S FILES DAMAGE SUIT she suffered serious injuries a roll containing pieces G. Randolph, 909 Twen- . yesterday filed suit in Dis- Supreme Court for $25,000 against A.'!:wll, operator of a restaurant through Attorneys Daniel Thew R. B. Dickey and Edward C. C. YANDES WHEELER, Who lost his life early today when his automobile left the road and crashed into a fence near Baltimore. —Harris-Ewing Photo. YANDES WHEELER DES INCAR CRASH Member of Socially Promi- nent D. C. Family Was With Plane Company. Charles Yandes (Cy) Wheeler, plane dispatcher for the Eastern Air Trans- port Co. and member of a socially prominent Washington family, was killed early today, when his automobile left the road and crashed into a fence on the outskirts of Baltimore. Roland Butler, 28, also of Washing- ton, who was riding with Wheeler, es- caped injury in the crash, which oc- curred at the intersection of the Wash- ington-Baltimore Boulevard and the Sulphur Spring road. Butler, who was riding in the rumble seat of Wheeler’s convertible coupe, told police his companion apparently fell asleep behind the steering wheel. ‘Wheeler and Butler were driving from Washington to Baltimore at the time of the smash-up, which occurred about 4 am. Both men were taken to St. Agnes’ Hospital, Baltimore, where physicians ::fil ‘Wheeler had died of a fractured ‘Wheeler, who was 30, lived with his wife, the former Miss Natalie Jewett, prominent in Baltimore society, at 2233 Bancroft place. After about a year-and-a-half with the Ludington Lines, he was away from Washington-Hoover Airport for about a year, then returned to join the Eastern _Air Transport. During the interim, he tried other lines of work, in- cluding the sale of a water softener. Besides his widow, he is survived by his parents, Mr. and Mrs. Charles V. Wheeler, 1609 Sixteenth street, a brother and a sister. Funeral arrange- ments have not been completed. VACATION TO DELAY D. C. HEADS’ NAMING | Successors to Commissioners Will Not Be Appointed. Until President Returns. Successors to Commissioners Luther H. Reichelderfer and Herbert B. Crosby, whose terms expired April 9, will be delayed until after President Roosevelt takes his vacation cruise up the New England coast. | This was stated definitely at the| White House today. It was explained that the President has been so pressed for time by other important business matters he has been unable to give any thought to the selection of the two new civilian Commissioners. | Henry said in his address CONGRESS UNFAIR 10 MOTOR PUBLIC Thomas P. Henry Charges “Gross Discrimination” in Federal Automotive Taxes. 31ST ANNUAL CONVENTION OF ASSOCIATION OPENED Delegates to Reaffirm Support of Manufacturers’ Sales Tax at Session. ‘Thomas P. Henry of Detroit to- day was re-elected president of the American Automobile Association for his eleventh consecutive term. Congress was charged with “gross discrimination” against highway trans- portation by continuing and extending the Federal automotive taxes by Thom- as P. Henry of Detroit, Mich, presi- dent of the American Automobile Asso- ciation, in a militant speech opening the organization’s thirty-first annual convention at the Willard Hotel today. “I cannot recall a more flagrant in- stance of class penalties or a more reprehensive breach of faith,” Henry said, “than that perpetrated by Con- gress in the case of the Federal motor tax. In addition to the unwarranted burden on motor users, these taxes are particularly onerous from the standpoint of the automotive industry, which has shown more initiative than any other industry in its efforts to re- vive business in the United States.” History of Taxes. The history of these taxes, including the recent increase in Federal gaso- line tax beyond the time limit set in the 1932 revenue act, the extension in life of the excise taxes on passenger trucks and automobile acces- He declared: result of this gross discrim- ination and inequitable treatment at the hands of Congress is that the motorists of the country now find themselves saddled with a Federal sales tax of ap- proximately $250,000,000 a year, while Congress pursues the hypocritical course of refusing to adopt a general manu- facturers’ sales tax that would provide all pecessary revenue and be fair to all concerned.” During the time devoted to introduc- tions of resolutioss of policy this after- noon, the association delegates will re- affirm their support of the manufactur- ers’ sales tax. It was pointed out by assoclation officials that since Congress has just added $62,000,000 a year in gasoline taxes to the $200,000,000 in Federal levies already paid by motor- ists, the convention is certain to in- augurate a fight against further ex- ploitation of car owners. Reports of various officers of the as- sociation and chairmen of committees on taxation, safety and highways were heard by the approximately 150 delega- tions who represent all sections of the country. Later this afternoon the an- nual election of national officers will be held. It is expected that Mr. Henry’s name will be placed in nomination for re-election as president. Other important matters which will occupy the attention of delegates will be the elimination of traffic hazards and the improvement of arterial high- ways, and efforts to introduce legisla- tion to control reckless drivers, who, it is claimed, are now responsible for 80 per cent of accidents. Anent Highway Safety. In regard to highway safety Mr. : “Protection of life and property on streets and highways is another important problem confronting motordom. Under the provisions for the expenditure of $400,- 000,000 for highways and related proj- ects carried in the industrial recovery act, the funds may be used for safer traffic facilities. Our State highway departments can render no greater con- | tribution to the cause of safety than to The appointments will be of & recess | use a liberal part of their share of nature and the appointees will be men | these funds to widen arterial highways who are bona fide residents of Wash- and to eliminate a large variety of urteenth street. The suit was ington. | Postmaster General Farley, who looked | over the papers of the various aspirants | for these two posts and put them | through the process of elimination, presented to the President more than a week ago & list of four or five names, each one of whom he considered eligible for appointment. | According to associates of the Presi- ent, Mr. Roosevelt has only been able | to give casual study to Mr. Farley’s list. | It was pointed out, however, that when the President returns to Wash-| ington the first week in July he will then have time to give serious thougnt to this subject and that he will lose no time in making his selection. CO-OPERATE ON OUTING Young Democrats and War Vet- erans’ Clubs Make Plans. The District division of the Young Democratic Clubs of America will co- operate with the War Veterans' Demo- cratic Club in promoting an outing at | Colonial Beach, Va., tomorrow and Sua day, it was announced today. Plans, as outlined by Marvin Cox. president of the Young Democratic group, call for either a two-day trip | beginning tomorrow or a one-day ex- | cursion on Sunday, and members may take their choice. traffic hazards.” In regard to automobile taxation, Mr. Henry presented figures showing that motor vehicle property in the country has a valuation of $4,500,000,000, on which an annual tax of more than $1,000,- 000,000, or 23.5 per cent, is pald in Federal, State and loca taxes. COUNTESS AND GORMLEY ENTER NOT GUILTY PLEAS The Countess Grace de Benque and George A. Gormley, indicted on a charge of larceny of more than $5,000 from Miss Louise Maret, co-proprietor | of the Maret School for Girls, pleaded | not guilty today when arraigned before | Chief Justice Alfred A. ‘Wheat in Dis- trict Supreme Court. | Attorney George Strong, represent- |ing the countess, and Joseph Turco, appearing for Gormley, asked for five days in which to prepare motions attack- | ing the indictment. This request was | granted. Chief Justice Wheat, however, refused to reduce bond for either de- | fendant. Gormley’s bond has been | fixed at $25,000, while the Government is asking a surety of $15,000 for the countess. Assistant United States At- torney Willlam A. Gallagher told the court the Government did not feel either defendant was entitled to a re- ' duction of bond. { Being Replaced | congressional stage, giving place to speakers who employ & more conversa- { tional form of discussion and a plainer | style of speaking, Prof. W. Hayes | Yeager of the George Washington Uni- versity, sald during the course of a radio broadcast last night on the subject of congressional oratory. Through the lengih and the bombast of congressional speeches has very greatly decreased, still there were spok- en during the session of Congress which | closed early today some 36,000,000 | words, Prof. Yeager said. These words, printed in 7% point type and laid end- to-end, he estimated, would reach from Washington to New York and seven miles beyond. Prof. . who _teaches public speaking, sald that “while Congress is in sess! more good more may 36,000,000 WORDS WERE SPOKEN " DURING LAST CONGRESS DEBATES | G. W. U. Professor Declares Spell-Binding Eloquence Is The “frenzied orator emitting (I'en-‘ cause of the heat and mostly because |zied eloquence” is passing from the| g and | dred years ago wowd not be by Plainer Style. | than in any other place in the country.” The old-fashioned “spread-eagle orator,” however, has little effect on modern leg- | islation 'and is gradually disappearing, | he said. | Though denying that standards of | congressional speaking are declining, | Prof. Yeager said that their style is | changing; that they are becoming more | terse and direct. During the year end- | ing April, 1918, he said, there were de- | livered in the Senate 188 speeches, each | requiring an hour or more of time. During the past session there were only 16 speeches of an hour or more in the | Senate. Quotations are employed much less than in the - | The more businesslike speeches of | today “are effective in the handling of ' the great multiplicity of problems which confront Congress,” Prof. Yeager sald, adding that it was his belief “that the | style of congressional oratory of a hun- effective A X UP T MARCH orH Procedure Will Be Uniform Throughout Seven Mem- ber Institutions. STOCK-SELLING CAMPAIGN HELD ABOVE $1,100,000 Park Savings Movement Goes For- ward With Naming of Direc- tors’ Committee. Depositors in member banks of the new Hamilton National Bank merger will receive interest on their interest- bearing ts up to March 5, it was learned ay. Decision has been reached to make this date uniform throughout the seven which are members of the new P merger. Already clerks in the lous banks have begun to compute this interest. No interest will be paid on any ac- counts in any of the Hamilton member banks between the date of March 5 ing date of the new Hamilton, it was explained. During the interim, it was pointed out, the banks have been on an enforced restricted basis, beginning with the President's bank holiday, and therefore no interest ‘would accrue for that period. Regulations Received. ‘The speclal session of Congress ended today with a record of legislation unprecedented in peace time. Outstanding cogs of the recovery machine it fashioned Conservators of all unlicensed banks —a “pulmotor” designed to revive lagging business—are measures to balance the budget, supervised by Lewis Douglas, budget directo: r; to expand credit, with in the city were understood today to William H. Woodin, Treasury Secretary, immediately in charge; to co-ordinate railways and end cut-throat competition, a job to be entrusted to Joseph B. East- recelt xtensive regulations man; to unite industry in a co-operative effort to restore prosperity, with Gen. H ugh S. Johnson directing, and to bring relief to the farmer, a task in charge of oaye ey St " o George N. Peek. The whole machine is designed to revolve about President Roosevelt’s far-reaching program designed to aid the rehabilitation of industry. end the depression, Congress is leaving Washington after having placed in the Presi- dent’s hands powers closely ap- proaching in scope the powers that Congress gave the President to win the World war. In two measures particularly, the transfer of power is enormous, some- thing touching directly and indirectly | every pocketbook in the land, making the President master of our agricultural destinies, putting the Government (as| the President himself describes it) into partnership with all interstate industry and commerce, and making the Presi- dent a personal director of the coun- try's financial policies. But although the business of leaning on the President in an emergency is familiar, many of the pOWers now turned over to him are the reverse of those given him during the war, and are intended for purposes quite the opposite. During the war there was a frantic drive for more production and less consumption at home. Corpora- tions, owned or controlled by the Gov- ernment, s?rnnx up over night for the building of more ships, more houses, more everything necessary in the con- duct of a foreign war. Farmers were urged to grow more of everything. Con- sumers were urged—and in some cases | commanded—to consume less. The meatless days, the wheatless days, the rationed sugar—all were symptoms of the time and age. Even amateur pro- duction was encouraged, and urban residents were urged to plant gardens in their backyards, in the name of patriotism. Less Production Now. Today everything is backward. Now the watchword is: Produce less. Con- sume more! And many of the powers yielded to the President are directed toward this end. They contemplate taking 60,000,000 acres of farm land out of production by actually paying farmers not to farm. They contem- plate the non-enforcement of the anti- trust laws against industrialists who agree on codes for eliminating cut- throat competition and reducing pro- duction, The farm relief act sets about the business of fixing prices for farm prod- ucts by governmental intervention, and also gives the President vast powers to inflate the currency. ‘There are two salients of attack on the problem of increasing agricultural prices. First, the President, through the Department of Agriculture, will lease lands now producing crops and pay their owners rentals as long as the awmrs keep the lands out of produc- on. Secondly, by means of a tax imposed by the Secretary of Agriculture, prices to the farmers of the remaining crops, for a list of staple commodities, will be directly increased. If the power to tax in the hands of the BSecretary of Agriculture has a strange ring in ears attuned to the | tradition of “taxation without represen- | tation * * *” the reader is referred to the text of the law, duly passed goth houses and signed by the Presi- ent. The act authorizes the Secretary, in | his discretion, to impose a tax on the first processor of cotton, wheat, corn, rice, hogs, tobacco and milk, designed to equal the difference between the do- mestic price now current and the price | at_earlier periods when they Were | higher and more stable. The Secretary is to put this tax up or down as the | prices go down or up, and the proceeds | of the tax are to be turned over to the | producing farmers, thus raising their | revenue from the sale of their crops| directly by governmental intervention. RIVEN by the national desire to | | fect of this was to grant a discount of 1933. The cotton thus sold to the farm- | ers and held by the Secretary of Agri- | culture in trust for them is to be dis- | of by March 1, 1935. After de- | ducting costs to the Government, the profit, if any, is to go to the farmers | who have contracted to receive this | cotton and reduce production. | _The inflation part of this act gives | the President the following powers: He may direct the Secretary of the | Treasury to enter into agreements with | the several Federal Reserve banks and the Federal Reserve Board whereby the | board will (1) conduct open market | operations in United States Govern- ment obligations and in the obligations of corporations in which the United States is a majority stockholder. And | (2) purchase directly and agree to hold | for specified periods Treasury bills or | other United States Government obli- | gatiohs up to $3,000,000,000, in addi- | tion to those they already hold. | If this fails to achieve the purposes of the President, then he is further empowered to cause to be issued United States notes in denominations from $1 to $10,000 under the act of February | 25, 1862 (the greenback act), the notes | to be similar in size and color to Fed- eral Reserve notes. They are to be used to meet maturing obligations of the United States and for buying | interest-bearing obligations of the | United States, and when bonds are | bought with them the bonds are to | be canceled. The limit of this green | back issue is $3,000,000,000 and the | act appropriates enough to allow the | Secretary of the Treasury to retire 4 per cent of the greenbacks per annum as long as they are outstanding. The President is further given power by proclamation to fix the weight of | the gold dollar in grains nine-tenths fine, and also fix the weight of the silver dollar in grains nine-tenths fine | at_a definite fixed ratio to the gold | dollar, “at such amounts as he finds necessary from his investigation to isnbmu domestic prices or to protect | the foreign commerce against the ad- | verse effect of depreciated foreign cur- | rencies, and to provide for the un- limited coinage of such gold and silver at the ratio so fixed.” He may fix the weight, also, so as to carry out any agreement between the United States with any foreign government or govern- ments. The limitation on this power is that in no case may the weight be fixed at |less than 50 per cent of the present weight. Debt Payments in Silver. Again, the President is given power to accept from any foreign government indebted to the United States payments in silver, arbitrarily valued at 50 cents an ounce. In the case of Great Britain’s recent payment, made in silver, the ef- 27 per cent on that particular payment, as the market price for silver was 3615 cents an ounce the day it was made. The silver is to be deposited in the :‘;eau:sutr);c ?nd silver ;:erftm'c’fites issued al for payment of ol tions of th;‘;lni;ed ames. e e President may use the vers given him in the inflation ul‘tm in the words of the act “whenever the President finds, upon investigation, that (1) the foreign commerce of the United States is adversely affected by Teason of the depreciation in the value of the currency of any other govern- ment or governments in relation to the present standard value of gold, or (2) action under this section is necessary in order to regulate and maintain the Darity of currency issues of the United States, or (3) economic emergency re- quires an expansion of credit, or (4) an expansion of credit is necessary to se- | Plan of Counteraction. But the power goes further thar this. | In the case of any of the selected prod- | ucts, if the tax on the processors has | the effect of turning popular demand to some substitute or competing product, | then the Secretary is empowered not | only to alter the tax so as to discount | or discourage the competition, but to | license processors, associations of pro- ducers, and other agencies handling the | selected products, or any competing products, in interstate commerce, to eliminate what the House report on the bill calls “any unfair practices or charges that prevent, or tend to prevent the effectuation of * * * the restoration of normal economic conditions in the marketing of such commodities or the products thereof and the financing thereof.” If the licensees refuse to obey the or- ders of the Secretary, then they shall be fined up to $1,000 per day for their refusal. They must also furnish statis- tical reports as required by the Secre- tary. As to the rental proposition, the re- port above quoted states that it is planned to lease some 50,000,000 or 60,- 000,000 of the 350,000,000 acres of land in the country now under cultivation, paying for them out of receipts under the processing tax. There is no limit in the act, however, as to the amount of Iand to be leased or the price to be paid for the leaseholds. The law also embraces & specific method for increasing the price of cot- ton—the so-called Smith plan. Accord- ing to this plan cotton financed in part or in whole by the Federal Govern- ment and now under the céntrol of the Federal Government shall be sold to the Secretary of Agriculture, who is in turn directed to sell it to cotton farmers at the present market pi in lieu of their producing a like amcunt of cotton in | our regular Federal expenditures bal- cure by international agreement a stabilization at proper levels of the cur- rencles of various governments. upm';eggmé the rmlculturnl relief bill ngress for M":}: agroes passage President o e same time that you and I are joining in emergency action to bring order in our banks, and to make | ance our income, I deem it of equal importance to take othe~ and m:ul- taneous steps without waiting for a later meeting of the Congress. One of these is of definite, constructive im- portance to our economic recovery. Effect on Farmers, “It relates to agriculture and seeks to increase the purchasing power of our farmers and the consumption of articles manufactured in our industrial communities, and at the same time greatly to relieve the pressure of farm {rfi‘r‘cga%e? lm} to increase the asset value of farm loans made by our bank- Xng institutions. 4 ‘Deep study and the joint counsel of many points of view have produced a measure which offers great promise of good results. I tell you frankly that it is a new and untried path, but I tell you with equal frankness that an un- precedented condition calls for the trial of new means to rescue agricul- ture. If a fair administrative trial of it is made and it does not produce the hoped-for results, I shall be the first to acknowledge it and advise you.” Secretary of Agriculture Wallace in & speech described the purposes of the bill thus: “Its basic purpose, first of all, is to increase the purchasing power of farm- ers. The method * * * is restoring the balance between uction and = is pre-war parity between the things the farmer sells and the things the farmer buys. In pre-war years, 1909- 1914, wheat brought around 88 or 90 cents a bushed on the farm; cotton better than 12 cents a pound, and hogs the same time the prices of the things the farmer had to buy—his fertilizer, farm machinery and the like—were on a comparable level. In general these items bought by the farmer were a lit- tle lower than they are right now. But the prices the farmer got for his | wheat and cotton and hogs were, in those pre-war days, more than twice as high as they are now. It is that gap we want to bridge. This bill pro- vides the bridge. Powers Given Secretary. “To reach that goal, a goal not to be attained, perhaps, in one brief year— the bill gives the Secretary of Agricul- ture these powers. “(1) To obtain, by contract with farmers, a voluntary reduction in acre- age or production of certain crops, in return for which reduction producers will be compensated by means of rental or benefit payments. “(2) To enter into marketing agree- ments with producers, marketing agen- cles and processors of farm products. The intent of this provision is that there may be organized commodity ers and processors of a crop. These councils will help determine which plan of acreage reduction, what scale of taxation on the proct may |be the wisest. The recommendations | of the council will then be considered by the Secretary of Agriculture before any regulations are issued. “(3) To license processors and dis- tributing agencies that handle lfrk:\ll- tural products in interstate or foreign commerce, in the event that such licens- | ing becomes nec to | achieve the purposes of : “(4) To use the Smith cotton option contract plan on the 1933 crop of cot- | ton. | 7“(5) To impose taxes on the process- greater than is required to bring the market price |;F to the pre-war parity price. Thus, if wheat is selling at 50 cents @& bushel, whereas the pre-war price was 88 cents, there is a difference of 38 cents a bushel. The tax on flour might, therefore, be as much as but not more than that. The purpose of the tax is to collect funds to compen- sate those farmers who have contracted to reduce their production of the com- modity so taxed. The basic products to which the bill may apply are these: Wheat, cotton, corn, tobacco, rice, hogs and milk.” Code of Competition. ‘The industrial recovery act gives the President power to approve codes of fair competition for any trade or in- dustry of an interstate character. Either the various industries will draw up their codes and submit them, or the President of his own motion draw up a code and imposite on any such in- dustry, after due notice, hearings, etc. If he is not satisfied with the codes submitted, he can change them at will. ‘The President is further given power to enter into agreements with indus- trialists, trade groups or industrial groups if, in his judgment, such agree- ments will further the cause of fair competition as embraced in the section dealing with codes. If any “business enterprise” proves recalcitrant about accepting a code or entering into an agreement, then the President is em- powered to make public announcement that after a certain date no person shall engage in any given interstate business without a license. If any per- son nevertheless does so engage, then he shall be fined $500 or be imprisoned for six months or both, each day of the continuation of the offense constituting a separate offense. If, after a code is set up, any mem- ber of the industrial group violates it, then that member shall be punished by a fine of $500. If any licensed business violates the prescribed code, the Presi- dent is given power for one year to revoke or suspend its license. The codes shall in no case be de- signed to impose inequitable restric- tions on membership in the trade groups or to promote monopolies or to oppress small enterprises. They shall give em- ployes the right to collective bargaining and agree to respect maximum work hours and minimum standards of wages to be prescribed by the President. The codes, agreements and licenses are made exempt from the provisions of the anti-trust laws. In sending the industrial recovery bill up to Congress President Roosevelt explained its terms in a brief message. That portion of it dealing with the enlarged powers of the President over industry follows: “My first n&mn is that the Congress provide for the machinery necessary for a great co-operative movement throughout all ustry in order to obtain wide re-employment, to shorten the working week, to pay a decent wage for the shorter week and to prevent unfair competition and disastrous over- production. “Employers cannot do this singly or even in organized groups, because such actlon increases costs and thus per- mits cutthroat underselling by com; tors unwilling to join in such a public- ‘One consumption as rapid] as ible. ’I'hecmlo“.hebfll,Intel'l'mg'tm'l 3 spirited endeavor. beiter than 7 cents a pound. But at councils which will include both grow- | ing of the basic farm products. The | amount of the tax, however, cannot be | time has been our anti-trust laws. They were properly designed as a means to cure the great evils of monopolistic price fixing. They should certainly be retained as an assurance that the old evils of unfair competition shall never return. But the public interest will be served if, with the authority and under the guidance of Government, private industries are permitted to make agreements and codes insuring fair competition. However, it is necessary, if we thus limit the operation of anti- trust laws to their original purpose, to provide a rigorous licensing power in order to meet rare cases of non-co- operation and abuse. Such a safeguard is indispensible.” Senator Robert F. York, on pre identified with the success of this bil in the Senate, has explained its pur- poses in a detailed analysis, in part as follows: “The recovery bill represents a con- structive attempt to bring the law into line with present conditions. The first step involves a modification of the anti- to code of fair competition, including a list of the practices and the judgment of | methods which, in | business men, will be | ployment. " approval of the President of the | States it will become binding entire trade or industry, and compliance with its terms | exempted from the prohibitions of the anti-trust laws. “By means of these codes we are going to develop a scientific technique of planning in industry which will equal our technique of E;odunmg goods. We are going to solve the economic blems of today with the same re and directness which we applied to the problems of the past. “There will be no danger of business men using the opportunities of united strength in such a way as to oppress the consumer or the comg:uwr. No code will be approved by the President until those who propose it prove that they are truly representative of trade or industry for which they speak. It must be proved also that the code will neither tend to promote monopoly nor te against the small busi- ness man. For the first time business will be brought out into the and subjected to the constant watc] of the President, who will have power at any time to modify or revoke any code. Collective Bargaining. “Under the new law every code of fair | Every | code must include provisions as to mini- mum wages, maximum hours and other working conditions, all of which must be approved by the President. In this way the production and consumption of goods will be co-ordinated. In ad- dition we shall move a step nearer to the social and economic justice which we have always professed to rove. “These codes are not inflexible molds into which every one will be forced. A different code is drawn up for each trade or industry. Even within a single group the President may make modi- fications or exemptions whenever neces- sary to effectuate the policy of the law. There is only one unalterable proviso. That 1s, that business competition must be confined to honorable dealings and efficiency, rather than include attempts to reduce the wages and degrade the living standards of those who tend the machine. “In fact, the new law does not con- template compulsion at all. Business men, those most famillar with the in- dustrial problems of today, are given every opportunity to think, to plan and to act. Nothing is done to substitute Government for business or to relieve industry itself of the prime responsibil- ity for economic recovery. “However, the Government is not without power to compel action in the few cases where righteousness and rea- son fail to produce results. I have said that a voluntary code, when approved, becomes binding upon the entire trade or industry. And if no such code is proposed, the President may prescribe & code embodying all of the features of the voluntary codes. In addition, the law provides penalties for the violation of either kind of code, and in extreme cases the President, for one year, has power to exclude from the channels of interstate commerce any business which persists in violating a code. “This reserve compul power is made absolutely necessary by the eco- ognize the right of | the Treasury the operation of off-sets. This is an important development to people who are both depositors and debtors to the same bank. Details of the off-set regu- lations were not made public, but con- servators were making a careful study of the voluminous document and will now place these new rules and regu- lations into operation. Generally speak- ing, the off-set is a practice by which the bank credits a debtors with what he has on deposit. But there are said to be the proverbial “1,000 and 1" varieties of off-sets requiring many dif- ferent technical - decisions. ‘The campaign to sell $1,250,000 worth of stock in the Hamilton merger pro- $1,100,000 mark. ‘The movement to re-establish & new ‘bank to replace the Park Savings Bank went forward last night, with appoint- committee of directors of the by Wade H. Atkin- to oped poini possi- bility of Stunz having had a confed- erate who may have tipped him off in advance of the national bank ex- aminers’ visit to the bank. HARDING GOES TO PRISON FOR THREE TO SIX YEARS Iness | Pleads Guilty to Manslaughter Charge in Connection With Death of Harry Davis. George P. Harding, who pleaded guilty early this week to a charge of man- slaughter in connection with the fatal shooting of Harry “Doc” Davis, was sentenced to serve from three to six years in the penitentiary when brought before Chief Justice Alfred A. Wheat in District Supreme Court today. Harding had been indicted for first degree murder, but was permitted to plead to the manslaughter charge. He is said to_have shot Davis, a brother of Police Inspector O. T. Davis, while he was attempting to stop a quarrel be- tween Harding and another man several months ago on Ninth street. Harding m represented by Attorney Neil Burk- W, trade. The President, however, did not ask for this power. It must be remembered that he al- ready wields a very considerable tariff- making power under the terms of the tariff act of 1930. Under that act, however, the President’s control over tariffs is not designed to allow tariff changes by agreement with foreign na- umu,xguclx.:o::mcud to changes based upon rival of producing com] products here and abroad. e Under that act the Tariff Commis- slon is directed, upon request of the President (and in other cases) to in- vestigate the comparative costs of pro- duction of articles in this country and “like or similar” articles in the prin- cipal competing country. If after such investigation the commission finds that the tariff rate levied in the act itself does not equal the difference between such costs, than it shall recommend to the President that he change the rate so as to equalize the difference. The change, however, is limited to an in- crease or decrease of 50 per cent of the rate set out in the statute. After the President receives the new recommended rate from the on he is authorized to approve it and order it into effect by proclamation. In addition to the powers outlined above, the emergency banking bill, nomic situation. I have pointed out that orderliness must extend over the entire Nation if it is to be effective anywhere. Those who wish to comply with the bill must not be subjected to the guerilla warfare of cut-throats and exploiters.” Earlier in the year there was talk of a request from the President for power to deal with other nations and for shifting of tepiffs up or m‘"“g accordance with such co-operative efforts up to treal designed to M passed on the opening day of the spe- cial session, makes applicable to pez- time emergencies the President’s war- time powers over transactions in credit, currency, gold and silver, including for- exchange. This the executive orders on the bank col- ldzn'e t-be‘x!;eo!ure luuzdof bty‘h‘the Presi- or Secretary ‘Treasury and empowered the of the Treasury to require the delivery of all %’m and goid certificates to the Bt