Evening Star Newspaper, June 16, 1933, Page 5

THE EVENING STAR. WASHINGTON, ®xs A_§ PRESOENT SIENS 3 NAIR BLLS Industrial Control, Banking and Rail Measures Are Signed. (Continued From First Page.) which make for the prcsperity of the Natig and the preservation of Amer- dcan standards. “Its goal is the assurance of a rea- sonable profit to industry and living wages for labor with the elimination of the piratical methods and practices which have not only harassed honest business but also contributed to the ills | of labor. “While we are engaged in establish- ing new foundations for business which ultimately should open a return to work for large numbers of men, it is our hope through the so-called public works sec- tion of the law to speedily initiate a ram of public construction that should early re-employ additional hun- dreds of thousands of men “Obviously, if this project is to suc- ceed, it demands the wholehearted co- operation of industry, labor and every | citizen of the Nation.” | Leaves Capital Tonight. Before turning to the task of sign-| ing the various bills, the President had happily ordered his bags packed with old sweaters and a slicker for his sail- ing cruise up the North Atlantic Coast. By special train, he leaves the Capi- | tal tonight for the coast of Massa-! chusetts. A brief stop is planned to- | morrow at Groton School, near B-ston, | to see his sor Franklin, jr. Then motoring on to Marion, he expects to be aboard the trim schooner Amber- | Jack II by nightfall Two weeks hence he intends to be back directing the anti-depression cam- | LEGISLATION OF Roosevelt‘ By the Associated Press. BROAD SCOPE PASSED BY EXTRA SESSION Machinery for New Deal Is Placed in Motion as Congress Carries Out s Program. | were increasing deflation’s downward A Congress weary from labors that | spin. have given the Federal Government | powers intimately affecting directly, or | indirectly, every person in the coun- try, quit and started homeward today It held the customary rousing, fe-| vered finish. Adjournment was de-| layed while the regulations lopping off millions from veterans' compensation were scrutinized. President Has Way. But in the end Franklin D. Roose- velt had his way. He has had it almost_uninterruptedly from the hour he called the special session, only a few days after he caught the imagina- tion of the people by swift, decisive steps dealing with the banking crisis. That was only the beginning of a series of moves that have resulted in legislation, bewildering in complexity and so broad in scope that farmers, manufacturers, bankers, railroad op- erators, workers and other millions are looking to it with hope or alarm, as the case may be, as the arbiter of their economic destiny. It took Congress only a day or two after it assembled to vote Mr. Roose- velt power to reopen the Nation's banks virtually on his own terms. That measure also suspended domestic gold | payments for the time and continued | the embargo on gold shipments abroad. | As it turned out, this was the prelude | for the definite departure from the| gold standard, the abrogation of the| gold payment clause in contracts and | the inflation measure itself. | Almost any of the measures already | Inflation sentiment in Congress was running a high temperature. It was doubtful that it could be cooled per- manently, even by a frigid White House. Mr. Roosevelt, with the quick assent of the majority of Congress, called for inflationary powers to use when and if he saw fit. At the same time he made it plain that the country was off the gold standard and that the dollar could find its own level abroad. Prices Rise. A rise in commodities and securities followed. But thus far the psychology of inflation has brought most of the | ascent, for the greenbacks are vir- tually ‘non-existent ,and_the gold dol- lar, theoretically, contains the stand- ard number of grains. Prior to the inflation venture the administration had launched its farm price-raising program. It lumped many of the proposals Congress has talked about since the war and gave Henry A. Wallace, Secretary of Agriculture, power to try any or all of them. The President frankly described the combination as an expegiment. An ex- periment it remains, afthough Wallace and his assistants intend to bring it out of that class soon. _ ‘The bill names nine basic commod- ities, wheat, cotton, corn, hogs, cattle, sheep, rice, tobacco and dairy products. As ‘an example of how it can op- erate, Wallace could attempt to raise the price of wheat by leasing land and taking it out of production Or he might decide the thing to do was to cause the miller to pay a few cents a bushel in tax on the grain he processed. to hear once more what Mr. Roosevelt had to say, they emerged in a little while and announced an agreement. This statute w:ll lead to a unified n: tional banking system. It directs di- vorcement of security affiliates from national banks; requires private banks deposit business. After July 1, 1934 | deposits up to $10,000 will be guara: for larger sums. Seller Is Warned. Passed_weeks before, the securities act, as President Roosevelt said, tells the seller also to beware. Protection for the buyer through full publicity and | information on security issues is pro- The bill imposes heavy penal- ties for willful misrepresentation and | fraud. So widespread was the depression |during the years since 1929 that the administration program to pry the country out of the slump had to be supplemented with something to en- able millions to hold on meanwhile. Relief and Tecovery prescriptions were 5o intertwined that some proposals | were a blending of both but others were | frankly the former. Among these were the $500,000,000 | | for direct relief grants to States, to be | issued in turn to the needy. A few faint cries of “dole” were heard, but they were drowned in a chorus of ap- | proval. | | Attention was also given the bitter | plaint of many farmers and home own- | ers that better times would come too | late unless provision was made mean- | | while to ease their debt burden. The response was $4,000,000,000; | 1$2,000,000,000 in bonds for the mort- gage-harassed farmer and the same | amount for the home owner. Relief for Home Owner. The home owner, if the value of his | house is $20.000 or less, may apply for | help through Federal savings and loan | | institutions, or similar private insti- | | tutions, from where his application is | directed to the corporation created | under the home loan bank system. | Should the mortgage holder agree, | |the corporation will assume the | | debtor’s obligation up to 80 per cent of | his property’s worth. If the 80 per cent |is not over $14,000 the creditor gets | | bonds bearing 4 per cent in return, the | | interest being guaranteed by the Gov- | | ernment. The debtor agrees to pay the | vided. to give up either their investment or | teed and there are limited guarantees | that he liked the ideas of Senator George Norris of Nebraska for Govern- ment operation and ownership of the Alabama power site. He added to these his own plans for the development of the Tennessee Valley. The measure created a Tennessee Valley Authority, headed by Arthur E. Morgan, presi- dent of Antioch College, and contem- plates the completion of Cove Creek Dam on Clinch River at a cost of $34,000,000. Hope to Employ 1,000,000, The public works project is de- pended upon to return 1,000,000 men to work by Fall. One of its first dis- bursements will be $400.000,000 to the States in highway funds. CONGRESS LEAVES CLEAN CALENARS Only 10 Bills Undisposed of in Senate—Record Set on Nominations. One major step in the Roosevelt re- "mission habilitation strategy, the measure es- tablishing & Federal co-ordinator with power to force railroad economies, went through almost unnoticed in the furore over inflation, banking and veterans. This statute repealed the law for Government collection of excess profits from the carriers. It placed railroad holding companies under the jurisdic- tion of the Interstate Commerce Com- The co-ordinator, reported to be Joseph Eastman of the Commerce Commission, will have authority to force the elimination of unnecessary passenger and freight train service. Only last Saturday Mr. Roosevelt laid the first of his Government reor- ganization orders before Congress. There were quick and strong protests, but the orders become effective within 60 days unless disapproved by both Houses. The legislators went home withcut any serious attempts at a veto, althcugh there were attacks on several provisions. Hopes o Ysave $25,000,000. ‘The Chief Executive estimated the re- alignments would save about $25,000,- 000. In the shuffle, the once powerful will be developed into working drawings Left to right vising architest of the Treasu: Postmaster General Farley signing one of the “cabinet sketches” which | of the administration proposal to call for bids on $25,000,000 in public buildings. L. W. Roberts, jr., Assistant Secretary of the Treasury; Mr. Farley, Silliman Evans, Assistant Postmaster General, and James A. Wetmore, super- By the Associated Press. The special session of Congress has established many new legislative rece ords, but probably none more note- worthy than the manner in which it cleaned its calendars of bills and noml- nations. Never within the memory of the old- est employes has the Senate left such & clean calendar at the end of a session. As Congress adjourned. the Senate had only 10 bills on its calendar awaiting action. Usually there are scores or hundreds. ‘The Senate made even a better ree- ord on executive nominations. Hun- dreds of them were submitted by Presi- dent Roosevelt during the session and all but one were confirmed. That one—George F. Alexander to be Federal judge in the first division of Alaska—was not reported by the” Ju- diciary Committee, and goes back to the White House automatically. for a Middle Western post office, as part | —Star Staff Photo. Prohibition Bureau virtually disappears and the Shipping Board is abolished. Two proposals which had a measure of administration support failed. The House approved the bill to allow the President to name & non-resident Governor of Hawaii, but it was caught in the press of the last hours. The White House made little determined ef- fort to_rescue it. The Senate proved & bit stubborn over the measure to give the Chief Executive power to embargo arms ship- ments to belligerent nations. The House passed that bill also, as it did the St. DAIRY CONFERENCE CALLED BY WALLACE Plans Drafting of Program for A plication of Farm Adjust- ment Act. | One of the reasons for the few bills left over was that the committees de- voted almost all their time to the Pres- ident's legislative program, and acted on comparatively few measures that he did not recommend. | Two of the 10 bills approved by com- | mittees but not disposed of by the Sen- ate were sought by the President—the House resolution to allow him to de- clare arms embargoes and the House bill to permit appointment of a non- resident as governor of Hawail. Two of the others, by Senator John- son. Republican of California, would prohibit financial transactions with for- | proximately one-fourth of the total farm income of this country. | Meanwhile, problems connected with | production and distribution of milk and | cream in the Minnesota-Wisconsin re- | gion tributary to Minneapolis and St. Paul were discussed by a group of dairy leaders from the two cities with admin- istrators of the farm act. They exam- ined the possibilities of drafting a milk marketing agreement to cover the ter- ritory which some said they intend to submit later. Ppaign in person. signed or awaiting signature would | This tax would go to the | corporation over a 15-year period. Lawrence Waterways resolutions to al- Mr. Roosevelt was sitting up in bed | have required of an ordinary session of working over his stamp collection when | Congress months of argument before Stephen T. Early, a secretary, informed | reaching & decision. him shortly after 1 a.m. that Congress | had adjourned. A moment later his light was switched out, after orders to be called early for a plunge in the | pool. ‘Tomorrow morning he expects to start | the Amber Jack II sailing toward | Campo Bello Island, barely across the | Canadian border from Maine. Here is | his mother’s Summer cottage. He hopes to make up the days lost from the late | adjournment of Congress, and arrive at his goal on schednled time—June 28 James, his eldest son, and two friends will assist him in the open seas, safling s far as Portland. There, on June 22, he will change crews and his two youngest sons, Franklin and John, will | Jjoin James in the family cruise up the Tock-bound coast. When Mr. Roosevelt leaves Washing- ton he will be accompanied only by Stephen T. Early, one of his secretaries, and half a dozen secret service opera- | tives and probably a dozen newspaper | correspondents and news photographers. Col. Marvin H. McIntyre, another of | the President’s secretaries, will join the | Legislation Passed. In addition to the first banking bill, here are the measures that went throug! from the time the special session con- vened: ‘The economy act, reducing veterans’ compensation more than $300,000,000 and the pay of Government workers by $125,000,000; the beer bill; the gigantic, three-in-one measure authorizing infla- tion; giving the Secretary of Agricul- | ture’ unprecedented power to raise farm | prices and providing $2,000,000,000 to refinance farm mortgages; the Tennes- | see Valley Authority, ending the 12- year-old row over Muscle Shoals. The Civilian Conservation Corps bill to put 275,000 unemployed to work in the national forests; the industrial con- trol bill to allow industry, through Gov- ernment suasion if necessary, to enter agreements limiting production, raising wages and reducing working hours. ‘The Glass-Steagall banking reform measure, looking toward a unified, na- tional banking system. The Wagner-Peyser bill setting up a vocation party at Campobello, and it | Federal-State employment system. s thought that at that time Secretary | Early will return to Washington and |riers to remedy their troubles through Col. McIntyre remain with the Presi- a Federal co-ordinator. dent for the homeward cruise. | Hume Mortgage BilL Col. McIntyre will take on the cruise the necessary papers for immediate! The home mortgage bill providing $2,000,000,000 for refinancing mortgages A railroad measure to enable the car- | farmer to hoist his original price. Then | the levy would be passed on to the con- | sumer, the theory being that the farm- er’s purchasing power must_be restored before prosperity settled down for any- t{flng remotely resembling a permanent | stay. Other Methods Provided. There were other ways provided td boost the price of wheat. Trade agrée- ments could be worked out with the handler of the commodity whereby he would pay a minimum price for it. In | turn, the Government would work out |an agreement about the charge to the customer. All, any, or a medley could be ap- plied to the other commodities. ‘The proposal framed for industry was just as embracing, even more so, per- haps. It followed the failure of the Black bill, which would have reduced the number of working hours for in- dividuals to 30 hours weekly in most plants. ‘The anti-trust laws are set aside in manufacturers to join in voluntary trade agreements. Their Yrimary pur- pose would be to control production, spread employment and boost wages. Under these trade agreements the | Government retains the power to force | recalcitrants into line by requiring them | to obtain licenses before they may op-: erate. The licenses will be forthcom- | ing only on promises to comply with | wage and production agreements which | the Federal authorities will lay down. | the industries control plan to permit | | The White House mention of taxes | The procedure is similar in the case of farm debtors. Money is loaned in Administration. The Federal Land Banks issue the bonds and their interest is guaranteed. The farmer is charged 4!, per cent. The amount of the mort- gage must not exceed 50 per cent of the normal appraised value of the property and 20 per cent of the value of per- manent improvements, individual loans being limited to $5,000. Consent of the mortgage holder also is necessary to this arrangement ‘The Government's feeling about this has been that in most cases the credi- tors would be glad to co-operate, since foreclosure would probably mean a! larger loss. Not Charged to Budget. Characterizing such bond issues as | self-liquidating eventually , and the $500,000,000 for relief as needed for an emergency, the President did not charge these expenditures to the regular bud- get. The expenditures for carrying out several other measures also were placed in the emergency category. had a direful sound to a Congress which | had just voted additional levies of ap- | proximately $225,000,000. i ‘This was to finance the $3,300,000,000 in bonds for the public works program. | The sales tax and various other levies were discussed in the House before it | was decided to raise a portion by in-| come taxes. this instance through the Farm Credit | |locate electric power to New York State. That suggestion went to & committee and was sleeping peacefully at adjourn- ment sine die. Fulfills Platform Pledges. ‘The President repeated a section of the Democratic platform almost word for word in asking legalization of beer. Before April was over, the measure re- 1axing the Volstead laws was awaiting the Chief Executive's signature. Almost equal dispatch attended lib- eralization of the restrictions on medi- cinal liquor. Mr. Roosevelt did not call directly would be repealed liquor was available for Treasury bene- fit. ASSAULT SU.SPECT HELD Victim Says Auto Companions Robbed Him of $19. Police today were holding a colored for ratification of repeal of the eigh- | teenth amendment during the Congress, | but he mentioned that additional taxes | if revenue from | By the Associated Press. Secretary of Agriculture Wallace to- day callell a conierence for Monday, June 26, of representatives of all dairy interests to begin drafting a program for the application of the farm adjust- ment act. The call was issued to Tepresenta- tives of producers, distributors and proc essors of fluid milk, evaporated milk, milk products. Plans and policies of administering the act to improve the position of the dairy industry will be discussed at the meeting. Dairying last year accounted for ap- | PRISONERS’ MEALS CUT New Contract Reduces Average eign governments in default to the United States and set up a foreign loan board to supervise floatation of foreign securities in the United States. ice cream, butter, cheese and powdered | man for investigation in connection with the :nsnult and alleged robbery | last night of John F. Aikens, 30, col- | ored, by two colored men. Alkens was treated at Emergency | Hospital for cuts on the head and both | wrists, which he said were inflicted by | Cost About One-half Cent. Prisoners held at the various police precinct stations will be fed during the next fiscal year at an average cost about |12 cent less than during the present Sa!m]ay Special “ | Roast Leg of Spring Lamb | | Chicken Dinner 50c ‘ ear, under a contract signed late yes- | | terday by the District Commissioners. ||| ~ Other Dinners, 55c, 65¢, 7S¢ The cost of breakfasts will average || q: z 3 111, cents, while the dinners will cost ||| nl[ltt nn the’ District 13 cenis. The contract AinCosran senime oo Rd. | went to the Minor Cafe, 3122 Eleventh ||| 18th and Col, street, the low bidder. DON'T ENVY HIM This chap has no copyright on keeping cool action by the President. on small homes. Mr. Roosevelt has a tentative en- gagement to make a speech in Char-| A resolution abrogating the gold pay- lottesville on July 4, and will endeavor ment clauses in existing or future con- | In the Senate this was changed to’ the men while he was riding in an au- | a capital stock tax on corporation val- ‘ tomobile with them. He said they ob- | uation, an increase of one-half cent in | tained $19. | Johnson Works on Plans. to get back in time, but he has not made the engagement definite. GRADUATES FROM GROTO! GROTON, Mass., June 16 ((#).—Two | Roosevelts were graduated from Groton | School, an exclusive preparatory school, today. They were Franklin D. Roose- | velt, jr, son of the President, and Cornelius Van F. Roosevelt, grandson of the former President, Theodore Roosevelt. The latter is the son of ‘Theodore Roosevelt, former Governor General of the Philippine Islands. President Roosevelt had hoped to at- tend the graduation, but telephoned Franklin, jr., regretfully from Washing- ton that it would be impossible for him to be present because of the press of effairs in the Capital. Mrs. Roosevelt, Franklin’s mother; came here with her daughter, Mrs. Cur- tis Dall, and was greeted by her son, James, who lives in Cambridge. ‘Those who met Mrs. Roosevelt at the South Railroad Terminal asked how the President was bearing up under the heavy pressure of presidential business. She replied, “How is my husband? Oh, he’s grand.” “Isn't he tired?” “No. 1 don't believe he ever felt better. I know I have never seen him looking so well.” The Roosevelt party attended the service in the chapel and then went to the school hall, where Rev. Dr. Endi- cott Peabody, headmaster, presented the diplomas and prizes to the gradu- ates. Dr. George L. Vincent was the graduation speaker. GRUEN WATCHES at Greatly Reduced Prices! US USUAL SCHWARTZ TERMS tracts. ‘The securities act. The measures putting Federal agri- culture credit institutions under thei Farm Credit Administration. ‘The $3,300,000,000 public works pro- gram, passed as a part of the industrial control bill * The measure voting $500,000,000 for‘ direct relief grants to States. The $3,600,000,000 deficiency bill which provided the funds for many of the ventures previously decided upon. ‘The gasoline tax, postage reduction | and electricity levy bill designed to keep | fresh credit flowing into Government coffers. ‘The last measure to go through w of course, the dynamite-filled $650,000,- 000 independent offices bill, carrying the veterans’ compensation items that held up adjournment nearly a week and | provided fuel for the most serious re- volt against Mr. Rooscvelt's wishes. Planned Before Election. Many of these proposals were fixed in President Roosevelt’s mind before elec- tion, but there are indications some were the result of unexpected develop- ments after he assumed office. Among these latter falls the proposal | which gives him authority to bring | about inflation through open market operations, through the issuance of $3,000,000,000 in greenback currency or by reducing the gold content of the| dollar. | It is doubtful that Mr. Roosevelt in- tended to ask any such power when | he took office, but it soon was ap-| parent to him that billions were im- | pounded in closed banks and that the | | results of his governmental economies 1| CONVENIENT ‘This bill got through only this week, | but so certain was the Chief Executive | it would pass that Hugh S. Johnson, | chosen in advance as administrator,! had already been at work for weeks on | plans to put it into effect. It seemed for a time that banking | and finance would be affected by the administration program only to the comparatively limited extent called for by the securities act. Conferees on the Glass-Steagall meas- | the 1-cent gasoline tax, a 5 per cent tax on corporation _dividends and amendments to close loopholes in ex- isting laws. House Accepts Plan. The House accepted the Senate plan, having heard a chorus of dissent on the income tax increases meanwhile. Muscle Shoals legislation was only a minor incident in the session just con- ure had argued for weeks without re- | cluded, although it had remained a sult, but when adjournment failed last | major unsettled problem to the succes- | “'The man arrested was identified as | George Sterling, 31, of the 500 block of | Florida avenue. (Termites) 40,000,000 D: Cause to Wi MENT Vacating Unnecessary—Free Inspection Terminix Co. of Washington Saturday they tried once again. 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