Evening Star Newspaper, September 5, 1933, Page 3

COAL NEGOTIATIONS CONCERN JOHNSON ‘Administration Apparently Is Depending on Public Opin- ion to Bring Ford In. By the Associated Press. Public opinion today apparently was the first chosen jury of President Roose- velt's Recovery Administration for de- ciding the case of Henry Ford's con- spicuous absence from N. R. A. mem- bership. As the rest of the big automobile industry began its first officlal work day under the Blue Eagle, N. R. A. leaders evidenced every intention—for the pres- ent, at least—of “letting nature take its course” with Ford—the industrial cam- Ppaign’s first major holdout. What the future might bring if the Detroit manufacturer continues indefi- nitely to operate without the Blue Eagle was uncertain. But the administration was represented as determined that no important employers should reject the Tecovery program. The final decision ‘was President Roosevelt's with powers to license manufacturerers md; the President was returning to his office today. Coal Code Taken Up. Other problems pressed equally for | solution after Labor day's week end of speechmaking. Hugh S. Johnson, N. R. A. chieftain, gave his attention to the difficult soft coal negotiations, seeking a final agreement for President Roosevelt's signature. ‘The coal operators and leaders of the United Mine Workers of America today Tenewed efforts to write labor contracts for the commercial mines in that area. | Almost every train and plane from the West this morning brought opera- tors to the Capital. Almost all of the several hundred producers who have been attending the prolonged confer- ences here went home for the holidays. Johnson prepared attempts to iron out the differences which have arisen over the operators’ proposal to include an open-shop clause in labor contracts and the miners’ demand for & provision for deduction of union dues from min- ers’ pay. Neither side has given any indication of being ready to recede. Both watched the White House for possible action by President Roosevelt, who has shown keen interest in the negotiations. Wants Contracts Signed. Johnson wants the union contracts signed before he renews work on the code, believing the crux of the entire code problem would be solved in bring- ing the mine workers and Appalachian cperators together. Of giore underlying significance, how- ever, was Johnson's immediate task of perfecting his N. R. A. enforcement or- ganization and of measuring the extent of new purchasing power created by the Government’s manifold recovery efforts. To help boost consumption, Johnson promised in Chicago yesterday to launch around September 20, a vigorous cam- aign to promote buying. He warned hat N. R. A.'s program must lift the cost of doing business and therefore the cost of goods, adding that “the slightest move toward inflation mllht. gend prices skyrocketing overnight. It was by the yardstick of buying power that Johnson expected to gauge within the next few weeks whether the country was definitely headed upward economically, or whether even more vigorous steps were needed. Enforcement Paramount. With the main push of rounding up business under the Blue Eagle over enforcement became paramount. Discipline for “chiselers” who fly the Eagle, but dodge doing their part in re-employment, was the objective. John- son planned to single out conspicuous cases and give them a hearing and a chance to conform before taking away the Eagle. Almost certain to receive the early consideration of President Roosevelt was the tug-of-war between employers and organized labor over unionization. The American Federation of Labor is fighting a repetition of the automobile code provision permitting employers to hire and fire on merit while numerous other industries are demanding the same language. e PRENCH CAPTURE LAST OF MOROCCAN REBELS Jerber Chieftain Surrenders After Most of Followers Desert Because of Thirst. @7 the Associated Press. RABAT, Morocco, September 5— Mopping-up forces of the French Colonial Army today turned their guns on the last of the dissident Berbers on Koucer Peak in the Atlas Mountains to close officially France's 25-year cam- paign of Morocean pacification. Gen. Jules Hure, commander of the French forces, reported the uncondi- tional surrender of Zaid Ou Skounti, Berber chieftain, in his rocky lair on the crest of the Djebel Badou. ‘Thrist had driven most of his follow- ers into surrender. SPECIAL NOTICES. ‘WARNING TO THE PUBLIC—WE DO NOT have agents or emploves selling coupon books. CARMACK DRYCLEANING CO., F. ‘W. MacKENZIE. PERSONS WHO WITNESSED ACCIDENT TO u:vz\mnnen‘!raupm:h M. D. ROSENBERG. at- torney. 7th and E sts. n.W. sl ‘WITNESSES—AUTO ACCIDENT TO LADY, night August 10th, K, near 8th. Please call Mr. COE. District' 2353. _____7° 1 WILL NOT EE RESPONSIBLE FOR ANY debts other than those made by myself. WILLIAM J. MINGO. 1145 5th st. ne. * WANT TO HAUL FULL OR PART LOAD TO or from New York, Richmond, Boston, Pitts-; burgh and all way points; special rates.! NATIONAL DELIVERY ASSN. INC.. 1317 N. Y. ave. NA. 1460. Local moving also. | 1 WILL NOT BE HELD RESPONSIBLE | for any debts contracted by any one other | than myself. RICHARD STORTY. 314/ Eve st. nw. FURNACES £558*parts tor svery Heating systems installed and our_service. Carl Robey, Inc., 395 Fla. Ave. NE._Lincoln 1440. 6% —of any nature capaply performed by Call us for estimate. G 933 VSt N.W. North 4428 by vac PROPOSALS. OF THE AR V. " TON. SRFIfoL, ber, 2. 1933, SEA in this office at 3 p.m. Septe for wire mesh partitions and iron_work for Of Washington, D. C. forms may be and bidding ol t this office by intd PAVID LYKN. Architect of the Capito WD . 5. DEPARTMENT OF AGRICULTURE. ‘l!uruu n!4 PI;T:‘l:lSq‘ Roads. Washini tnm'fii (‘:,e. n e R recte syashington, D, G, uoul ' eptember 15, 3 i}de%fv}lozckln-d paving Constitution avenue from Virginia IVI\’QB;‘ED:'O“?H“llul(i’a_‘r.l‘l’;l‘!ll; I e Y Daving and structures; involving 20 'sa. yds. of bitumi; concrete ba. . reinforced of nea: of 3" wat lectrical co I{N. R. A" “THE | & task which evidently industrial man- | in_the Winder Building. Sren Frincipal Highway Enginee 9.5’ 'ACKING AND STOEAGE. WANTED Load or part load to N_ ¥, or J . Y% rate ssured service. - Tiited’ Van Service: 1012 15th. NA. 3723, Sentenced GUILTY OF BETRAYING MILI- TARY SECRETS. CORPL. RALPH OSMAN Of Brooklyn, N. Y., found guilty by court-martial board of betraying mili- tary secrets relating to the Panama Canal Zone defense, was sentenced to two years’' hard labor and $10,000 fine. Osman admitted having communistic leanings. In event he is unable to pay the $10,000 fine he will serve 18 addi- tional years. —A. P. Photo. N.R. A. VIOLATIONS BY EMPLOYERS HIT A.F. of L. Head Promises Re- sort to Courts in Collective Bargaining Cases. By the Assoclated Press. AKRON, Ohio, September 5.—A resort to the courts for punishment of em- ployers violating collective bargaining provisions of industrial codes yesterday was promised workers by William Green, president of the American Federation of Labor. In a Labor day appeal for support of the Roosevelt recovery program the federation leader said he was “confi- dent that more than a million new members have joined with us” He described the N. R. A, as opening “the door of opportunity for industry and labor.” Green spoke under the auspices of the Akron Central Labor Union. He said “a new deal has been accorded industry and labor.” “In all fairness,” he said, “industry could nct expect to appropriate to itself the benefits of the national recovery act and deny to labor the benefits which were accorded it. If industry is permitted to organize and control busi- ness, labor likewise must be permitted to organize for mutual heipfulness and protection. And labor is doing that very thing. * * * Subject to Penalties, “If an employer discriminates against employes who organize or discharges them because they organize he is guilty of violation of the code and is subject, when .convicted, to the imposition of penalties provided for in the national Tecovery act. “It is the purpose and intent of the American Federation of Labor to pro- tect workers in the exercise of their rights to organize and to invoke punish- ment, through proper court procedure, upon those employers who are charged with and ’fou.nd guilty of violating the law. * “In my opinion the time has arrived when industrial management should stop fighting the organization of labor, and in the spirit and letter of the N. R. A. give it an opportunity to collec- tively co-operate in making real, vital and beneficial all the provisions of the Green said more than 2,000,000 have returned to work since March amid in- dications of “a revival of business,” but | he added: “Minimum rates of pay and maximum | hours of labor embodied in many of | these codes are quite unsatisfactory to labor. In most instances, the minimum rates of pay are too low and the hours are too long if the purpose of the N. R. A. is to be achieved. N. R. A. Still Experimental “Most of the codes thus far adopted ' are subject to revision or change at| stated periods. It will be the policy of | labor to insist upon changes in these | codes when necessily arises and when | opportunity presents itself.” H Green said that while the working hours were “disappointments” to labor, the N. R. A. “has not yet passed the experimental stage.” Then coming home directly to Akron, he said, “Ruth- | less destructive competition” had “de- rhoralized” the rubber industry, adding: “It is just such an industrial and business condition as this which the N. R. A. seeks to cure and overcome. ‘The Government wishes to save indus- try, including the rubber industries in the city of Akron, and labor is desirous and willing to do its part in co-opera- tion with the Gevernment in placing industry upon a sound and stable basis, agement of itself could not accom- plish. * * * “Let us here resolve that all of us, coming from all walks of life, will do our part by giving to the President of the United States a full measure of sup- port in his efforts to bring comfort and happiness to our people.” SUNDLUN ELECTED Chosen First Vice President of Re- tail Jewelers’ Association. STAR, WASHINGTON, D. l |Janet Snowden, Who Deserted ]UHNSUN URG[S | Royal Bridegroom, Threatened BUYING CAMPAIGN Tells Chicago Audience Gov- ernment Will Launch Drive About September 20. By the Associated Press. CHICAGO, September 5.—One of the greatest Labor day throngs in Chi- cago’s history yesterday heard Gen. Hugh S. Johnson, national recovery administrator, appeal for a Nation-wide cconsumers’ buying campaign. Addressing a throng of a quarter of a million persons through a system of loud speakers that carried his message to every corner of the World's Fair grounds, Gen. Johnson reassured listeners that a Federally-directed na- tional campaign would start about Sep- :em\lm 20 to influence citizens to buy reely. “We shall begin a campaign,” he sald, “to try to convince the people of the need to buy freely—not as a patrio- tic duty, but as & prudent use of money.” With labor working shorter hours, receiving more money, commodities ad- rancing in price and industrial costs mounting, the general said, there was bound to be an increase in the price to the consumer soon. May Enforce Fair Prices. “But the President, who sponsored this recovery program, is not geing to see it run away with profiteering,” Johnson said. He indicated that the Government might resort to extraor- dinary powers, if necessary, to enforce fair prices. ‘The speaker failed to mention by name any of the large manufacturers who so far have failed to join the N. R. A. forces. He emphasized strongly, however, that the law has talons and that the codes will be enforced. “We welcome opinions of persons who do not wish to comply with the law,” the general said, “but it must be remembered that ultimate decision rests with the President of the United States.” “For violators, we can take away the Blue Eagle and if that’s not enough there are plenty of penalties,” John- son said. “The public cannot tolerate non-compliance.” Refuses Specific Claims. Johnson refused in his address to make specific claims as to the success of the recovery campaign so far. “No one,” he said, “can say that it will fail. There are faults and errors * * * but the fact remains that prac- tically every employer in the country is under the Blue Eagle, that people have gone back to work in vast swarms and that those who had work are get- ting better pay."” There was no employer, he added, under the Blue Eagle, who had not signed up voluntarily. He denied that the Government was using a boycott campaign to force manufacturers and employers into line. “I may go a step further and say although this Labor Day was the first objective, we shall not stop. You can- not stop a movement like this—you must carry it on to a conclusion. It is unfair to the loyal and patriotic men who have put up the Blue Eagle to permit any competitor to refuse to put him up.” Johnson said that specific figures on re-employment since conception of the recovery code were not available, but added that a quick census was planned a little later by individual reports to determine the number who had re- turned to work under codes and agree- ments with the President. Emphasizes Labor’s Rights. Johnson spoke under auspices of the Illinois State Federation of Labor. To labor he emphasized that the right to organize and bargain would not be vio- lated. Johnson said that while employ- ers are not compelled to agree to any | scale of wages demanded by workers, the employers had the obligation not to attempt to interfere with free organ- ization. “If an employer should make a con- tract witn a particular organization to employ only members of that organ ization.” he said, “especially if that or- ganization did not have 100 per cent membership among his employes, that would in effect be a contract to inter- fere with his workers' freedom of choice of their representatives or with their right to bargain individually and would amount to employer coercion on these matters which is contrary to law.” “There are men—honest, sincere and unselfish men—who believe that Presi- dent Roosevelt's recovery program is wrong. They say that the normal busi- ness pact is such a delicate mesh of vested rights and established standards that if you so much as touch one web you may upset conditions you never dreamed about. It is true” Ja said, “that economic laws are natural laws, like the law of gravitation, and can no more be repealed by Congress than can the multiplication table; but just because the law of gravitation says that because you jump out of a balloon you are going to get a bump, that doesn’t mean that you can't use a parachute.” Economic laws, he added, can be guided and harnessed. COLORED WOMAN’S RITES WIDELY VIEWED IN SOUTH Thousands of Both Races Attend Funeral of “Storm Center” in Post Office War. By the Associated Press. INDIZNOLA, Miss., September 5.— More than a thousand persons, whites and colored, attended funeral services here yesterday for Minnie Cox Hamil- ton, wealthy Mississippi delta colored woman, and once the storm center of & “post office war,” which for a time threatened grave consequences. The post office trouble occurred in s Dosimasicr. " Older Pesients Te- 0o 5 - called today that a race crisis de- veloped as & result of the appointment and that she resigned with the asser- tion that she did not care to serve if the white population’s objection wasso strong. ‘Then Postmaster General Payne, however, refused to accept the resignation and closed the post office. An_independent post office was run by white residents for 14 months until { the deadlock was broken by presi- dential appointment of master for Indianola. Farley Has Problem In “Nira,” Lion Cub Presented to Him By the Associated Press. & white post- act_on his hands. Arthur J. Sundlun of A Kahn, Inc., ‘Washington jewdryeuncun.wue}ecud; first vice president of the American | National Retail Jewelers’ Association at | the organization’s annual convention held recently in Milwaukee, according i to an announcement todsy by the nf:{‘mmu' and Manufacturers’ Asso- clation. Mr. Sundlun is chairman of the jewelers’ division of the Merchants Association, and also its vice president. He 15 past president of the Maryland, Delaware and District -of Columbia Jewelers' Association and has been a been drafting a code of fair practice for the jewelry industry.t He became the official cus- todian of “Nira,” & lion cub which arrived at the Steel Pier here the same day the national industrial recovery act was signed. Presentation was made by Mayor Harry Bacharach on the Boardwalk before a large crowd. ‘There was an anti-climax when 8-year-old Anne Farley took the leash from her dad’s hand and started leading the cub back on the pier. “He has to say good-by to his mama,” she said. And then it had to be ex- plained the little fellow must ride to Washintgon in a cage. his | 8he left him, saying the marriage was Stepfather, Comdr. Retired, Claims Kidnaping to . Italy Was Object. By the Associated Press. LEWISTON, Me., September 5.—A threat to kidnap Princess Caravita, the former Janet Snowden, with the object of taking her to Italy, native land of her husband, Prince Don Francisco di Sirignano, noted , whom she left five days after their marriage, was that the 19-year-old oil heiress had obtained Ppolice protection after receipt of a mys- terious note. She and the prince were married in New York August 17. Five days later “a mistake” and that she did not love him. She came to Poland Spring to confer with her mother, Mrs. Walter 8. Da , about an annulment. New York Gang Blamed. Shortly afterward, the sheriff said, a threatening note was received by her stepfather, Comdr. Walter Sherman Davidson, U. 8. N, retired. The sheriff quoted Comdr. Davidson as being of the opinion that a New York gang was responsible for the threat. The reported object, he said, was to return the girl to Italy. Sheriff Walton said he had seen the letter, but could not divulge its con- tents, which he described as being of “® personal nature.” The letter, writ- Davidson; U. S. N., ten in good English, concluded with the “Thus Spake Zarathustra,” the title of a work by Nietzsche. Offi- clals would not attempt to explain the ice of the words. Walton said he had gone to Poland Spring to protect Princess Caravita and that once she had passed out of his Jurisdiction, he had no further official interest in the case. ‘The girl appeared undisturbed over the threat, Walton said, but her mother and step-father were deeply concerned. Princess Caravita left Poland Spring for New York August 27. Comdr. and Mrs. Davidson remained at the hotel. NEW YORK, September 5 (®).— Janet Snowden, oil heiress, married Prince Don Francisco di Sirignano of Italy August 17 after a two weeks’ p and left him five days later, saying the prince “is a nice enough fellow but I do not love him.” ‘When she left her husband, the prin- cess said she would institute annul- ment proceedings on the grounds that she T"e her as 23, while she actually is only :se The prince expressed a belief at the ;fl: n;:'tl his r\glde ‘would !temmd:g , saying mai Was not regar lightly in his counl{rey. s The former Miss Snowden's sister is the wife of Prince Rospigliosi. FORD HOLS T " CO0E IN FFET Silence Continues, With “Go It Alone” Policy Em- phasized. By the Associated Press. | DETROIT, September 5—A vast| silence today shrouded whatever plans | the Ford Motor Co. may have for com- | pliance or competition with the national | automobile code, which became officially a part of the national recovery program today. There was & growing belief, with no apparent evidence to contradict it, that Henry Ford expects to “go it alone,” without benefit of the N. R. A. Blue Eagle. Ford, dominant figure, although no longer president of the only major com- pany not a signatory to the automo- tive pact, continued his vacation in the North woods, near Big Bay, Mich., miles distant from a telephone or a telegraph wire. Edsel Ending Vacation. Edsel Ford, president of the company and son of its founder, was ending his vacation in Seal Harbor, Me., where he has consistently refused to discuss mat- ters of policy. He is expected back tomorrow. The elder Ford, according to reports from the vicinity of his Huron Mountain re- treat, may not return before Friday or Saturday. ‘The veritable epidemic of vacations that broke out among other Ford exec- utives during the crisis of the Ford- N. R. A. cletvage was abating, but as they returned to their desks they said they could shed no light on the ques- tion, “What will Ford do?” Every apparent indication pointed to & determination on the part of Ford to “go the N. R. A. one better” in wages and working hours for his em- ployes, now numbering around 42,000, and to stand adamant on his refusal to open his books to a Code Ad- ministration Board or to accept the code provision for collective bargaining with workers. Shuns Auto Chamber. Ford huas remained out of the Na- tional Automobile Chamber of Com- merce, now administrating body of the code, in line with his strict adherence to a policy of independence. On his behalf it has been explained that he will not join in any co-operative move- ment that requires him to open his books to competitors. He is expected to make much of his 50-cents-an-hour minimum wage for a 40-hour week, while the code pre- scribes a 43-cents-an-hour minimum in the Detroit area for a 35-hour week. There has even been talk of a more vigorous counter-offensive, with a re- turn to the famed $5-a-day minimum wage as a strong possibility. By polpting to such tangible benefits accruing Yo his workers, some observers believe Ford might hope to avert any tendency of the public to “crack down"” on him, as Hugh S. Johnson, recovery chieftain, has suggested. The closest to a statement by a Ford official in recent days was the remark by one of them yesterday that “we're already living up to the N. R. A. code,” and that might be the theme song of the anticipated Ford “go-it-alone” campaign. CONTINUES VACATION. Ford Refuses to Meet Any One on N. R. A. Policy. BIG BAY, Mich., September 5 (#).— The birds of the forest, but no Blue Eagles, flew around the 16-room ‘cab- in” where Henry Ford continued his North Woods vacation today, far re- moved from the outside world and its discussion of his status as a “hold- out” from the national automobile code, now in effect. The holiday-bent motor magnate ad- hered strictly to his policy of seeing no one and there were no outward in- dications that he was in touch with De- troit associates. Neither did & London newspaper, that sought an interview by transatlantic telephone, succeed in getting in touch with him. There are no telephones in the camp and Ford would have had to come to Big Bay to talk. It was not learned whether he was notified of the call. e 5" 53 Lo the Heweenaw Pen- anned & trip e - g’mlh. which juts out into Lake Su- perior to the northwest, he was not seen to leave the camp by automobile yes- terday. There were no signs of activity to contradict, vious reports that the vacation of Mr. and Mrs. Ford would 1ast at least until Friday. GAS TAX RECEIPTS UP Increase in Maryland Is First Since Drop Began in 1031 Special Dispatch to The Star. ANN. QUTLNES BENEET OFNLRATOLABOR Head of Brotherhood Says Plan Brings “Economic Citizenship.” By the Associated Press. LOUISVILLE, Ky., September 5.— “An eccnomic citizenship, hitherto de- nied by many basic industries” was given labor by the national industrial recovery act, D. B. Robertson, president of the Brotherhood of Locomotive Fire- men and Enginemen, said in an address at a Labor day meeting here yester- day. ‘Terming the recovery act “funda- mentally an employer measure with one important exception,” Robertson said it guaranteed labor “the right of organi- zation and collective bargaining through its chosen representatives * * * free from coercion, molestation or intimida- tion of any description.” “The object sought by this provision,” Robertson said, “is to enable workers to organize and enter into a co-partner- ship with employers for the purpose not only of attaining to maximum in- dustrial efficiency and accomplishment, but also to the end that industry may be humanized and democratized. The ce of this change and its ul- timate effects upon our economic life can_scarcely be overestimated.” ‘The recovery act, he continued, offers workers “an opportunity rather than a gift of somethi of great immediate worth,” and he added that, while the wages under it are “in most cases absurdly low,” the “principle of fair wages is recognized,” and urged organized labor to become missionaries, preaching the gospel of unionism and not to let new organizations under N. R. A become those of the “old com- pany union pattern’” economic conditions which he said led to the recovery act, Robert- son said, “then, when the clouds were blackest, was born the idea incorpo- rated in the national recovery program. | ‘The ideas, of course, were not new, and | many minds joined in framing the final program. But chief credit goes to the President who had the vision to see ks progrecn to act.” is still in the making,” he remarked. “But the groundwork has been laid and it is the part of wisdom and of the highest patriotism for every American to help in the mighty work.” Robertson said there will be many obstacles to overcome in furthering the recovery program. For' one thing, he said, there will be a “powerful min. ority of all business and financial in- terests which,” he said, “consists in part of the old anti-union employer group,” but that another part of the opposi- umnwm be mm'e"dmf‘rous. “ e speculative, banking group, to whom the success of the recovery program will mean an end to stock manipulations, dubious security issues, and other parasitic practices by which they have been plundering honest business as well as the general public. ‘Their opposition will be underground and insidious, and I can see no hope of averting it except by drastic methods, such as the law and public opinion apply to other public nuisances and anti-social activities.” TUESDAY, SEPTEMBER 5, 1933 STRIKE OF CAPITAL LAID TO NEW ACT Securities Blocking Funds to Help Country Back on Feet. * BY DAVID LAWRENCE. Capital has gone on & strike—the most spontaneous and unorganized re- fusal of dollars to be put to work that America has experienced since the de- pression started. The facts have not been given em- phasis by the administration here, for what is ha) powers that be. It is a mistake that hardly can be corrected before next January, when Congress reconvenes. And meantime American industry will lack the necessary long-term capital to help the country back on its feet. The truth is slowly being revealed. The new securities act became effective 50 far as new financial issues on July 27. Since that time a negligible amount of issues has been filed before the Fed- eral Trade Commission, representing a total value of $180,000,000 but with only two issues above $10,000,000. More than half of the new securities filed are of the investment trust type, hence com- liance with the law is simple. A num- T of issues for small enterprises have been filed. Out of 160 issues only 35 are for more than $1,000,000. But as for first-class financing ef the type that makes the bond market move forward and gives American industry a chance to meet its maturities, there has been virtually none. Refinancing Is Imperative. It has been suggested that perhaps the financial world has no new issues to float. Yet the facts are that about $1,200,000,000 of securities mature in the next 12 months. So refinancing is absolutely imperative. Just how these maturities are to be met has not been explained, but it 1s assumed that rather than file before the Trade Commission, advantage will be taken of the exemption from the act permitting exchange of new for old securities within the same company. The Federal Trade Commission it- self has done everything it could to re- assure the financial world that honest men have nothing to fear and that le- gitimate enterprises will surely meet the approval of the commission. But the barrier is not one of the commis- sion’s making. It is the wording of the law that stops the long-term money market from being reopened. The chief objections to the law as related by the dealers in investment securities are these: 1. The law indicates that the omis- sion of a single material fact in offer- ing an issue opens the way to prose- cution, even though the omission might' be inadvertent or the fact may not bs material at the time the sale of the securities was made. Law Opens Way for Suits. 2. Irrespective of how the Federal Trade Commission may feel about it, the law gives anybody who ever buys a security the right to bring a law- suit against the seller on the broadest possible grounds. While these suits might be won, no director or officer of a corporation wants to involve himself and his family in risks of this kind. 3. The writing of the ordinary sales letters cannot be carried on without danger of prosecution or civil suits, for unless in a series of letters every fact about the proposed issue is repeated again and again, there is always a chance of being considered in violation of the law. While security dealers see the wisdom of sending a prospectus with the first proposal to sell securities, they do not see why it should be neces- | a! sary to have every single statement made by a salesman or a dealer worded in exactly the same way as the pros- pectus. While this is possible, the risks of variation by sales representatives are thought to be too great to assume. Act Has Stopped Issues. 4. Directors object to the necessity of being personally responsible for every | audit made by certified public ac- countants or research staffs, especially in connection with properties that are far-flung. With the general purpose of the law investment bankers and dealers are in sympathy, but the act, they say, has gone too far and now has practically stopped the flotation of issues alto- gether. The Federal Trade Commission could issue reassuring regulations, put this would not reduce the jeopardies written in the law itself. Until Con- gress amends the act next Winter. the flotation of large issues of capital for industrial use is very unlikely. Capital has taken no concerted ac- tion. But reports reaching here are that those who deal in long-term se- curities have for the most part decided there is no use trying to sell any of the usual industrial issues for many months to come. (Copyright. 1833.) PR e A Tonsil Clinic Saturday. LEONARDTOWN, Md., September 5 (Special).—The annual Fall tonsil clinic will be held at the St. Mary's Hospital in Leonardtown Saturday. Dr. William Zinn will conduct the clinic with a spe- cial staff of assistants. 173 ONCE had & sweet hook-up with a spiritualist on a phoney stock gyp,” said Clipper Davis. “She really knew her stuff and had an enormous clientele. Here was the way we worked. “After she had a client all —about to become worked up by giving him a lot of personal information about him- self, we pulled the get-rich-quick You know, the trick is to up a lot of information about sucker and then pretend to see in atrance. It was the bunk. ifs a racket. By James E.Grant. In reality a crew of trained inves- tigators dug up the dope. “When the sucker was sold head over heels on the medium’s ability, she would tell the chump that the spirits said he was about to become wealthy overnight. That he would receive a great oppor- wealthy overnight. tunity to become rich. “The next morning, bright and early, I appeared at the sucker's door and offered him the chance to buy an unlimited stock that would shortly soar to 50 times the pur- chased price. It was a sweet com- bination.” : These exposures of -rackets are printed to advise and protect the public. (Copyright, 19330 Law Declared|Secretary Roper ppening is a reflection on the | F188 IFIGHT ON CRIME | HELD SELF-DEFENSE Pledges Full Government Support Against Racketeering. Declaring the crushing out of crime to be & question of “positive national self-preservation,” of Com- merce Roper last night pledged full Government support toward wiping it address was broadcast over the net- work of the National Broadcasting Co. He sald: “We need to regenerate the national consciousness, strengthen eth- ical concepts, root out indifferences and moral laxity and dismiss our cynical tolerance toward racketeering if we are to have an end of the lawlessness that is disgracing America in the eyes of | civilzation.” Undermines Social Structure. “Racketeering rots the chbaracter of a people. It is insidious, corrosive, pro- foundiy disinf . Crime, partic- ularly organized crime, attacks the very founaations of our social and economic structure, and renders the whole edi- fice shaky.” Failing to cope with it vigorously, Roper continued, “was an invitation to disaster. Secretary Roper cited census figures to show a 50 per cent increase in prison Ppopulation, from 91,000 in 2926 to 138,- 999 in 1932, and said the rise was sinister and ominous fact that should give us something about which to think seriously.” “We must root out all indifference, complacence, in the face of crime,” he said. “Loosened, relaxed morality must be made firm again. Any attitude of cynical tolerance toward the racketeer must be banished. “The meting out of justice, of sharp retribution, must be made surer, swifter, more impressive than it has been in the past. Fortunately. we have the definite assurance that measures to achieve this end are being devised right now by our most competent authorities. “If the law-abiding citizens of the country will then organize and combat lawlessness aggressively and relentless- 1y, crime will go. And, my countrymen, 1 want to assure you that in your war on crime you will have the full and un- qualified support of the President of the United States, the Department of Jus- tice, the Department of Commerce and all other departments of the United States Government. We are united in our determination that crime must go.” Probably the most alarming phase of this crime, he said, is a “gan industry, organized on a Nation-wide scale, under the leadership of some of the country’s most notorious and abetted by a certain few corrupt politicians, grafting police officials and unscrupulous lawyers.” “Almost_every industry has been in- vaded by the racketeer, notably cleaning .and dyeing, ice, coal, undertakers, flor- ists, ice cream, building, and others.” Roper estimated that racketeers ex- torted last year $165,000,000 from citi- zens. He further declared that in one city alone there are nearly 200 different kinds of rackets and an annual average of more than 100 bombings. “Com- parable figures,” he said, “prevall else- where.” Among the evils growing out of this organized crime, the Commerce Secre- ry stressed, is not only lessened re- spect for the law in general but a higher cost to the people for fire insurance, burglary, bomb damage, and sabotage. ‘There is also, he reminded, increased tection of goods, incluc life. The “rake-off” of the racketeer, he warned, has to be considered in the confinement an army of law-breakers,” he continued. “But that expense is merely a very trifing fraction of the amount of tribute that is levied upon | | soclety as a direct or indirect result of buccaneering rackets.” U. S. Depository the Feel Good! Enjoy Life More! Oon't run the risk of personal neglect. 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