Evening Star Newspaper, February 11, 1935, Page 2

A—2 sxx OPENING OF BANKS | 1S POLITICS 1SSUE Bill Menaces Supervision of Savings by Local Of- ficials. BY DAVID LAWRENCE. , HALL the banks of America E with all their deposits be turned over to the politicians | in Washington for manipula- tivn or shall the officers of the banks in every community continue as the responsible trustees of the earnings and savings of the American people? This is the'simple issue presented by the new bill introduced in bcth houses of Congress looking toward a complete revolution in the operation of banks, the issuance of cutrency and the granting of credit. The draft of the measure is techni- cal but fortunately Gov. Eccles of the Federal Reserve Board has explaired it in a statement which is so sensa- tional in its implications that with- out exaggeration it may be said to be the most startling development in connection with America’s finaucial institutions since the bank holidzy of nearly two years ago. Business Rise Objective. The objective, of course, is to im- prove the credit system, break dcwn what have seemed to the administra- tion to be annoying controls and re- straints, and create an upward rise in tusiness. | With the purpose there can be no quarrel. Bank credit must flow more readily and America must avoid, if possible, the severe contractions «nd expansions of credit which alter-| nately produce depressions and booms But does the new bill accomplish the objectives? Does it not substitute the political whims of a single Gov- | ernment agency for the matured ex- perience and unaffected judgment of the bank officers who must face the scrutinizing eyes of depositors first hand and meet the tests that their fellow citizens put upon them in a| community? To completely transform the Fed- eral Reserve System from what it has been more than 20 years—a system in which private management and Gov- ernment sit in a kind of balanced partnership or association—and intro- duce a board of a few men, all re- sponsible to the President and re- movable at will, is to go to the other extreme of Government domination. Politicians Are Politicians. Yet this is what the new bill plainly sets out to do. Whether one has faith in the high purposes of the Roosevelt administration or whether one con- cedes that some day even the “wicked” Republicans may reform and get back into power, the fact remains that| Ppoliticians are politicians. No political board in Washington will ever arrest | & boom by a policy of systematic de- | flation of prices, and no political board will ever do the obviously un- popular things that have to be done when liquidation of credit must be undertaken. One has only to note the pressure put upon the President recently to keep up the pricz of cotton, as a parade of Southern Senators left their imprint on executive policy, or to note the way Western Senators from wheat States do the same thing, to! realize that a political board in charge of bank credit, prices, credit opera- tions and the actual quantity of money would be subject to the rule of con- gressional log rolling. This is in- evitable, instead of the necessarily dis- passionate rule of disinterested judg- ment exercised by those who spend their lives studying the risks and vicis- | situdes of modern credit. Under the new plan, we would no longer be able to rely on the restraints that come from an independent Fed- eral Reserve Board and an independ- ent board of directors in each of the 12 Federal Reserve Banks and their branches. The new board would have complete power to assist in the vicious circle of continued borrowing by the Government to pay deficits and in the continued issuance of currency based on assets, some of which are not very much different from those which What’s What Behind News In Capital Spending of 4 Billions Puzzles President Himself. BY PAUL MALLON. HE Senate would be less anxious to find out how President Roosevelt proposes to spend his $4,800,000,000 if it knew what | a time he has been having try- ing to find out himself. The world is mot supposed to know it but the original report presented to the President by Mr. Ickes called for a mere trifle of nine billion (count them) dollars. His last unpublished report, which reached Mr. Roosevell’s desk 10 days ago, called for four billibns, three for projects on which the P. W. A. already has received ap- plication and one billion to be spent under the National Resources Board report. Mr. Ickes' projects are those he considers socially useful. He would conduct them through a centralized Washington bureau to prevent graft. Mr. Hopkins has a different idea. He first suggested seven billions and now has cut it to four billions, but he wants to spend it where the unem- ployed are. He wants the right to buy materials and lands, to build schools, dig ditches. He does not care so much about socially useful projects. He wants to give money to States and cities and furnish employment. Also, he wants to run the social security program hand-in-hand with the other under a decentralized bureau in ‘Washington The difference is that Ickes thinks mostly of building useful projects. Hopkins thinks mostly of the jobless. Ickes is a centralizer, Hopkins a de- centralizer. No wonder both said they did not know what was going to be done in their testimony before congressional committees. Third Proposal Made. Just to make it more difficult, third different recommendation fis supposed to have been made by Treas- ury Secretary Morgenthau. He does not like the spending ideas of either Mr. Ickes or Mr. Hopkins. He would create a Jarger building unit in his Treasury Department under Admiral Peoples. Only Federal projects would oe built, post offices, public buildings, dams and the like. Secretary Perkins inclines toward the Hopkins scheme, except that part of it where Hopkins wants to take over her social security pro- gram. All Mr. Roosevelt has to do is to decide who is right. He will do it in the usual way. by throwing all these eggs into his cookery. stirring them into an omelet and then slicing it up, gwing Ickes, Hopkins and perhaps even Morgenthau a piece. Worm Turns in S. E. C. A significant turn of the economic worm has been noted inside the Se- curities Exchange Commission. Within the last few weeks there has been a marked increase in applications for new financing from substantial busi- ness interests. Every one knows that when real recovery begins it will first show it- : ! HOUSE TEST VOTE self in this field—a general desire of business to get new money and expand. Up to now the financing applications have come mainly from speculative mining companies, distillers, recal estate enterprises and reorganmization committees. These are special interests which do not reflect any general signs of life. Now applications are coming from power companies, steel, raw material industries and foreign sources. So brought on the fumous inflation in France and the more recent collapse ©of German marks. Dollar Value Important. There is nothing so serious to the | American citizen as the worth of the | dollar bill and whether it will buy far they have not come in sufficient numbers to cause any general excitex ment, but within the next few weeks | you are likely to see figures out which will be highly encouraging. 1 street car ride or 20. It may bei a worthless piece of green paper or| it may be the equivalent of goods. But the quantity of goods that can be bought for a dollar depends upon the real worth of the Government's promises or the real value of the as- sets back of that dollar bill. For generations the backing has been gold. And to remove all doubts, | the American people were able to demand a dollar of actual gold if they wished the coin itself in ex- change for the paper dollar. Now they cannot legally have gold. They must be content with the pledge that back of every dollar bill is 40 per cent gold in the Treasury. But what is back of the rest? Heretofore it has been necessary for Government bonds to make up the remaining 60 per cent; that is, for every hundred dollars_in currency the Federal Re-| 7°¢ gerve Bank which issued the paper liquid and attractive. dollars had to set aside a certificate| It has been tried on a small scale. showing it had $40 worth of gold on|The R. F. C. has sold about $50,- deposit at the Treasury and also | 000,000 worth of State and city bonds 860 of Government bonds. taken in by the Public Works Ad- Now, however, under the new bill, | ministration, and sold them for more if it becomes a law, the Federal Re- |than the Government paid. The ex- serve Banks need not put up any|act profit was $931,196. Government bonds as collateral, or You are likely to see this prize idea anything else for that matter, and|included when the President’s pro- the Federal tgovern{hnent ;lso a;an ;; gram is announced. any time change the price of gol and put as little or as much gold Bank Bill Not sc Bad. There was more than meets the back of the $40. eye in that irate statement from Bell- This makes currency issuance a wether, Senator Glass denying he had matter of discretion and even political made up his mind to fight against whim. For there is one school of thought, usually known as inflation- ' the new banking bill. ists, which never seems to be able The fact is several administra- to understand that it is not the Gov-| tion critics have looked over that ernment’s printing presses which give| bill and jound it was not as bad as value to the paper dollar, but the| they expected it to be. assets which lie back of the money| The bill is padded with proposals issued. which are law already in the various Under the proposed bill practically | emergency measures previously passed. everything that the Government wants| It centralizes authority in the Fed- to call a sound asset will become one| eral Reserve Board sufficiently to by executive order, though the citizen | make it practically a central bank. may doubt it and feel that the bank| Minor defects will be changed, but officers who use his deposits so extrav-, the bill will get through Congress agantly are betraying their trust. As substantially, as it is late in the ses- for the bank officers, they can protect | sion. 1 themselves, because if the Federal| Another good business sign is the; Reserve banks will issue money against | current pickup in electrical power any assets declared sound by a polit- | consumption. Output was up 10 per ical board in Washington, the bank | cent for the week ending January 26. officer merely pays out k':h bills ‘:lr;fi h: This was 21 per cent over 1933. gets, from the Treasury the eq len 5 of the depositor’s claim. The curtailment of American diplo- Under such an obviously loose sys- | matic representation in Russia was tem the way is opened for the biggest | the most severe diplomatic rebuft we currency inflation the world has ever | have delivered any foreign nation in known. Loans, for instance, on real|s long time. The best authorities estate would be made for 20 years on | here believe Russia will come forward 75 per cent of the value of the prop- | shortly with a fair trade proposal. erty. Yet there would be no way to|There is no intention of withdrawing get replymen:h it the pmhperty bfld.:x'r:‘; recognition. ciates or if the man who — doesn’t keep his job 20 years and is “-;:; A. "; s’l‘a’:eat‘mll:‘ codes, No. unable to méet the installment pay- >i# being the was signed ments. ;!:;:rg 2¢ for the auto rebuilding The master dealers have worked out a sly new idea about using this new relief fund to drain some of the stagnant pools of money lying around in banks and elsewhere nowadays. They have put up to President Roosevelt a plan whereby the Gov- ernment would sell to private in- vestors bonds on self-liquidating projects. It would probably be done by the Reconstruction Finance Corp. An open offer to buy them back would be made by the corpo- ration so as to keep the bonds (Copyright. 19353 F THE EVENING STAR, WASHINGTON, Honored for Service Edwin F. Hill, information director of the Chesapeake & Potomac Telephone Co., receiving a diamond emblem from John C. Koons, a vice president of the company. In recognition of his 35 years’ em- ployment with the Bell System, Ed- win F. Hill, information director of | the Chesapeake & Potomac Telephone Co., operating in the District of Co- lumbia, Maryland, Virginian and West Virginia, was today awarded a dia- mond service emblem by John C. Koons, vice president. , Mr. Hill entered the service of Southern Bell Telephone & Tele- graph Co., predecessor of the Chesa- peake & Potomac Co., at Portsmouth, Va., February 10, 1900, as a helper in a line crew. He has been successively lineman, cable splicer, line foreman, general foreman, district plant super- intendent and division plant superin- tendent. He has been located at| Washington since May 1, 1925. = | He is active in Kiwanis service and public service. —Star Staff Photo. is now Kiwanis international trustee. During the labor troubles in the Southern West Virginia mining sec- tion in 1919 to 1921, Mr. Hill headed volunteer forces needed to repair tele- phone lines shot down by the strik- ing miners. When a bombing plane | crashed in a forest area in Nicholas County, he spent more than 24 hours on the telephone, to get the first defi- nite information as to the possible | location of the plane. A group of | Army officers proceeded to the indi- | cated place and found the wreck with | four of the five occupants dead and the other suffering from injuries from which he subsequently died. As a re- | sult of these activities, the telephone | company awarded Mr. Hill the Theo- | dore N. Vail medal for noteworthy | ONUSBLOCPLANS Roosevelt Leaders Ready to Permit Balloting on Issue. By the Assoclated Press. Bonus payment advocates, disput- | ing among themselves, pressed today toward an early test of their strength in the House. The Roosevelt leaders there sald they were going to premit a vote cn | the $2,100,000,000 issue despite the President’s opposition to the plan for full and immediate payment. Some | of them expressed belief such a step | was necessary to prevent a Trevolt on | major administration legislation. Patman Raps Belgrano. Meanwhile, the bonus forces were | torn by an increasingly bitter con- | troversy over possible methods of pa; ment. Representative Patman, Democrat, of Texas, author of a bill to pay the bonus certificates with new currency, issued a statement yesterday assert- | ing that Comdr. Frank N. Belgrano | of the American Legion wanied to finance payment with a bond issue | because his bank received $1,350,000 in interest annually on $45,000,000 of Government bonds. Belgrano is vice president of the Bank of America at San Francisco, Patman said. League Applauds President. Patman’s attack shared attention | with a statement from the American Liberty League applauding the Presi- | dent’s stand. | The league said the Legion-backed Vinson bill to finance the bonus through the sale of bonds was “the lesser evil” but asked Congress to de- feat both it and the Patman measure. “The President’s opposition to im- mediate payment of the entire face value of the bonus certificates is backed on sound principles and de- serves to be upheld,” the organization added. Its statement also sald imm diate payment would encourage drive for pensions “involving huge ad- ditional costs for an indefinite period of years.” Deductions for Professional Expenses. A professional man may deduct all necessary expenses incurred in the pursuit of his profession. These in- clude the cost of supplies used in his practice, office rent, cost of light, water, fuel and telephone in his office, the hire of office assistants, and ex- penses paid in the operation and re- pair of an automobiie, based upon the proportion of time it is used in mak- ing professional calls or for other pro- al rfiy :ny“rmm use their resi- dences both as their offices and their homes. In such instances the physi- cian may deduct as a business expense the rental value of the rooms occu- pied for office purposes if he actually pays rent, and also the cost of light and heat furnished these rooms. Also, he may deduct a portion of the wages paid domestic servants whose time-1s partly occupied in g for these rooms. Membership dues in professional societies are deductible. Physicians and dentists who keep in their waiting rooms current maga- zines and newspapers for the benefit of their patients may deduct this item as a business expense. The cost of professional journals for the tax- payer’s own use is also a deductible item. The cost of technical books is not e bt 5 propartionate amount penditure, but & for each year's depreciation of the books may be deducted. Depreciation may also be taken on office furniture and equipment. Insurance premiums on office or other professional equip- ment and liability insurance may be deducted. Automobile liability insur- ance may be deducted only when the automobile is used wholly in pursuit of the taxpayer's profession, and the cost of the entire upkeep may legiti- mately be claimed as a professional expense. B Roads Cover 4,500 Miles. Hupeh Province, in Chins, has opened nearly 4,500 miles of highway. | HOLIDAY DECISION ONGOLD RUMORED Supreme Court Ruling Held Possible Tomorrow, Lin- | coln’s Birthday. By the Assoclated Press. The possible consequences of a de- | | former president of the c D. C, MONDAY, FEBRUARY 11, 1935. NAVY N AGCUSEU Missing Girl Reported Safe OF AIDING FIRMS Probers See Collusion Proposal Regarding Ship Contracts. By the Associated Press. Assertions by members of the Sen- ate Munitions Committee that the Navy was “a party” to alleged collu- | sion among shipbuilders in bidding on : naval contracts went into records of the investigation today on top of both affirmations and denials that there was any collusion. ‘The statements were voiced both by Senator Nye, Republican, of North Dakota, chairman of the committee, and Senator Clark, Democrat, of Mis- souri, a member, in a fire of questions and accusations hurled at Willlam M. Flook, former board chairman of the New York Shipbuilding Corp. Statements that shipbuilding com- panies had prearranged their bidding 80 as to divide work among them were flatly denied by Flook, but he finally conceded a corporation letter hinted at it Bardo Aide Testifies. His testimony came after George B. Yard, assistant to Clinton L. Bardo, poration, had said he interpreted telephone con- versations among the heads of the; “big three” yards as indicating collu- | slon. The committee introduced in evi- dence a letter from Bardo to Flook, dated June 22, 1933, telling of a visit of the company president to repre- sentatives of the Navy in Washington. “There was also expressed to us,” Bardo wrote, “the desire (by the Navy) that the builders themselves| should get together and agree as far as we could upon what each would bid and then bid on nothing else.” “If that were done at the request of the Government,” Flook asserted, “I would not call it collusion.” “That is collusion.” Senator Clark contended, “if the Navy is a party to it.” “That makes the Navy a party to the collusion,” Nye added. Bardo Letter Quoted. In his letter Bardo said, in part: “I know from my talks with some of the representatives of the Navy who are keenly interested in this work that they are desirous of finding some substantial reasons for award- ing this work to the largest possible extent to private yards upon whom they must rely for the necessary en- gineering to complete the ships. “There was also expressed to us the desire that the builders them- selves should get together and agree as far as we could upon what each would bid and then bid on nothing else.” Yard said earlier he had heard the . | New York Shipbuilding Corp arrang- cision in the $69.000.000000 gold- | R . ;TG Newport News Shipbuild- clause cases tomorrow—Lincoln’s | commodate an unusual number of visi- | ing & Dry Dock Co. and the Bethlehem birthday—were debated in official circles today as other matters tem- porarily engaged the Supreme Court. Worn threads of speculation, snapped Saturday by the court’s an- | nouncement that it will announce no opinions today, were spun together agath quickly by an absorbed Capital. The possibility of a gold ruling to- morrow was suggested by the fact that all markets in this country will | be closed. This would give the Gov- ernment 24 hours to take steps to meet any situation. Advantage fer Foreigners. Some officials, who declined to be quoted by name, expressed concern, however, over advantages which such timing of the decision might give for- | eign speculators. They pointed out foreign markets will operate as usual tomorrow. and some of the exchanges | overseas will open the next day five | hours ahead of those in the United States. Many observers regarded next Mon- | | day, February 18, as the likely date | for a verdict. That will be a regular | opinion day, at the end of which the justices plan to recess until March 4. Dry Fare for Today. Aides of the court prepared to ac\ | tors at today's sitting, although there | was no prospect of hearing the gold | question decided. Tourists and others | who pressed into the historic little | chamber had & promise of compara- tively dry fare—orders concerning re- | quests for reviews and routine argu- | ments by attorneys. Pondering whether or not Congress had the right to invalidate promises to | pay in gold or its equivalent, contained in an estimated $100,000,000,000 of public and private contracts, the court has shown no indications of haste in delivering the momentous decision. If the decision went against the Govern- ment, the contracts would call for payment of $169,000,000,000 in the | present devalued currency. Congress in Brief By the Associated Press. TODAY. Senate. Resumes debate on farm credit bill. Finance Committee hears social se- curity bill opponents. | Judiciary Subcommittee limits argu- | ments on 30-hour-week bill. House. In recess. Military Committee studies measure to establish 10 sea coast and border air bases. Labor Subcommittee and Ways and Means Committee consider social se- curity. Appropriations Committee works on xl-l: and Interior Departments supply " Try American Styles. London men are adopting the Amer- ican style of studless. shirt ‘fronts. The Euen Offers Its | poena Shipbuilding Co. for dividing naval contracts. They are termed the “big three.” Asked by Senator Vandenberg. Re- publican, of Michigan how he hap- pened to be present, the heavy-set witness from Woodbury, N. J. said he was “inclined to think a lot of your people finally caught up with me.” Remark Is Explained. Explaining this remark to newspaper men, P. W. La Rouche, committee counsel, said. “We chased him all over New Jersey over the week end.” La Rouche added, however. that he could not say whether Yard was attempting to escape service of a sub- “I don't know that he was™ he e wrong impression.” Vandenberg took Yard over a series of telephone calls the witness claimed to have heard. as well as over the meeting of shipbuilders in Washing- MISS MARY McEL ROY, Daughter of City Manager H. F. McElroy of Kansas City, who disappeared from her home there last night, but Springfield, Il1, she was safe. She ransom in 1933. CHARLES BOYNTON DIES IN NEW YORK Former Associated Press Executive Once Was Eve- ning Star Writer. By the Associated Press. NEW YORK, February 11.—Charles Hudson Boynton, a former general superintendent of the Associated Press died today at his residence in the St. Hubert Hotel. He was 66 years old. Death was due to a heart ailment, which had left Mr. Boynton in poor health since 1930. Subsequent to his work in the news- paper field Mr. Boynton was prominent in Wall Street prior to his retirement from business several years ago as| head of the Stock Exchange firm which bore his name. He was born in Cincinnati and grad- uated from Lehigh University in 1889. That year he entered the Washington bureau of the Cincinnati Commercial Gazette. Washington Post and The Evening Star. In 1899 he was made Paris correspondent of the Associated Press. Joined Meyer Firm. Recalled to this country, he became general superintendent in 1904, hold- ing the position until 1907, when he | resigned to become associated with | the Stock Exchange firm of Eugene | Meyer & Co. In 1910 he formed the firm of C. H. Boynton & Co., which he headed until 1921. His first wife, Florence Gaines, whom he married in 1897. died in 1900. In 1901 he married Marie Dmitrenko, | added. “and I don't want to create | Whom he met in Paris. He was always interested in Russian commercial affairs and for a number of years was president of the Russian-American Chamber of Commerce. In 1917 he made a trip to Russia with the inten- < | Later he served with the| ton in July, 1933, prior to letting of | tion of expanding his mining interests the first naval building contracts| there. a plan which was frustrated by financed by P. W. A. funds the Soviet revolution. “In connection with the 1933 naval Retired in 1930. contracts,” the Michigan Senator pressed. “if we have had testimony which asserts there was no consulta- | port News and Bethlechem, regarding | bids and work. previous to the bid- | ding. you would say that was incor- rect?"” Yard parried with whether he had to reply. “You must,” the Senator said firmly, leaning over his desk. “I suppose I have to say yes,” Yard replied. “Then they were not telling the truth,” interjected Senator Clark, Democrat, of Missouri. “Either that or they were suffering from mental paralysis,” Yard an- swered. U. S. COURT UPHOLDS FARM MORTGAGE ACT Frazier-Lemke Moratorium Law Held Constitutional in Land Bank Case. a question B~ the Associated Press. CINCINNATI, February 11.—The United States Circuit Court of Appeals here today upheld the constitution- ality of the Prazier-Lemke farm mort- gage moratorium legislation. ‘The court acted in an appeal of the Joint Stock Land Bank of Louis- ville, Ky., from a decision of District Judge Charles I. Dawson in Louisville, granting relief under the measure to William W. Radford, sr., of Howell, Ky., & farmer who had been adjudged a bankrupt. ‘The decision today followed argu- ments before the court in which Rep- resentative William Lemke of North Dakota, a coauthor of the legislation, personally appeared in its defense. ing Star Readers The American Government Today BY FREDERIC J. HASKIN —a new book which explains of the Federal Government the permanent departments and the Alphabet Bureaus of the New Deal. Authoritative—entertaining—stimu- lating. Every American should read and own this book. On sale at the Business Office of The Star, or by mail, postage prepaid. Price $1. ORDER Name .. Street - oo c oo wired her father this morning from was kidnaped and held for $30,000 MISSING MELROY - GIRLFOUND SAFE Daughter -of City Manager of Kansas City Is Taken From Chicago Bus. By the Associated Press NORMAL, Ill. February 11.—Mary McElroy. daughter of City Manager | H. P. McElroy of Kansas City, was taken from a Chicago bus here at 11 o'clock this morning for questioning | by police after she was reported miss- | ing from Kansas City. Miss McElroy was traveling alone The 26-year-oid brunette, victim of a sensational kidnaping in May of 1933, readily admitted her identity. Nervous Over Penalties, | It was nervousness over the penal- ties meted out to three of the men convicted of her abduction which caused her to leave her father's home in Kansas City last night, she said. One of the three, Walter L. McGee, kidnaping. A second, George L. Mc- | Gee, drew a life sentence. Appearing tired and worn, the young | woman told police who stopped the left her home late last night Her disappearance—she left home after telling her father she was going downstairs to play the radio—at first | caused fear she had been kidnaped again. Bought Ticket to Chicago. “My father and I were sitting in a room on the second floor of our home ; last night, she toid police. “I was ner- | vous and restless. I said good night to father and went downstairs to play | the radio. | “Then I took a taxicab to the Pick- | wick bus station and bought a ticket ! for Chicago. The bus left about 11 p.m. After it got under way I dis- | | covered I had only 20 cents remaining | in my purse. | “I telegraphed my father when I | arrived at Springfield, Ill, that I was is under sentence of death for the' bus that she had not eaten since she He was an ex-president of the As- | going on to Chicago.” sociation of Stock Exchange Firms. The Kansas City girl, who was re- From 1921 to his retirement in 1930 ' leased after spending 29 hours in the | tion among the New York ship, New- | e was assistant to the president ofs hands of kidnapersstwo years years the Atlas Portland Cement Co. ago, was wearing a fur coat over a Surviving him, beside his wife, are black dress. two sons, Henry Gaines and Carl B.| Normal police notified Kansas City Boynton, of New York City. and a | authorities they would hold Miss Mc- sister, Miss Meta Boynton, of Wash- | Elroy until the arrival of her father ington, D. C. Funeral services will be held Wednes- day in New York City. be in Washington. Burial will | McElroy, who is city manager of Kansas City, left there at 11 am. by | airplane for Chicago. “T wi worrying so much about LOWTARIFFFOES ASSAILED BY HULL. Misleading Data Used" Against New Trade Pacts, He Says. | By the Associated Press. The duty of manganese became & fighting issue today as Secretary Hull went on record with a shaiply worded attack on what he termed high tariff “propaganda.” The Secretary of State accused ad- vocates of high protective duties of employing “gross exaggerated and | misleading propaganda” in an effort | to wreck the administration’s attempts to expand trade through reciprocal | tariff agreements. He coupled with this a defense of the new trade pact with Brazl in which the tariff on manganese was reduced by half. Some domestic pro= ducers have protested that the reduce tion will be disastrous for their ine dustry. He charged tariff lobbyists with having combined ir a propaganda “seeking to kill all efforts to restore normal world trade—a trade upon which the employment of millions in this country and tens of millions in | the world is dependent.” Statistics on Labor. “This propaganda would make it eem that the proposed reduction of duty on manganese ore from 110 per | cent for 1933 to 55 per cent will throw many thousands of American wage earners out of employment and wreck | great Nation-wide industry,” he said. Asserting that “even McKinley or Dingley, if alive in 1932, would not | have fixed the rate as high as 55 per | cent in the first place.” he cited sta- | tistics to show that only a few dred workmen are employed in the | American manganese industry and | that it produces less than 10 per cent of the ore consumed in the United States that when sed tariffs to levels.” other countries raised their barriers against American agricultural and industrial products in which “extremely burdensome sur- pluses” existed “Disastrous Effects.” “The most | knows the dis ‘ have resulted rous effect > said. “The purpose of proposing a reduct | the rate on manganese ore as case of any similar rate reduct to induce other countries in turn lower their rates or other obstructions against the importation and sale of those commodities which we export There is no other possible way for the accomplishment of practical and mutually profitable result “The American public therefore has the choice either to continue to close its eves and rush headlong fur- ther in the direction of shutting out every possible opportunity to sell our goods and to restore prosperity. or, it can instead. pursue a broad and prac- tical program for the normal restora« tion of mutually profitable trade be- tween nations. Baden P.-T. Card Party Friday. BADEN, Md.. February 11 (Spe- cial).—A card party will be held by the Baden Parent-Teacher Associa- tion Friday night in Connick Hall at 8 o’'clock. the case I must have lost my head.” | police here quoted Miss McElroy. “I | was especially upset over the thought that my testimony was instrumental | in sending Walter H. McGee, one of the men who kidnaped me, to hic death “I am not sorry that I testified I did. however. It was the only t I rould do, and those men des: to be punished.” Miss McElroy was taken to the home of Grant M. Ridenour, mayor of Normal. to await her father's arrival FATHER GETS WIRE. Telegram Is Received From Spring- field, T | By the Associated Press KANSAS CITY, Miss Mary McELl victim of a sen- sational ransom kidnaping in 1933— telegraphed her father, City Manager H. F. McElroy today that she was safe at Springfield. 1ll., after disap- pearing mysteriously from her home | here last night. | February_ 11— ‘The message said: Sorry, but I am too frightened to | know what I am doing.’ | It was signed “Ma: