Evening Star Newspaper, February 24, 1935, Page 4

A—4 * NEW DEALERS AP T4 COURTFGHT Power Program Involved in Adverse Decision by Alabama Judge. (Continued From First Page.) competition with private power in- terests. Judge Grubb believed the T. V. A. was. manufacturing power beyond M\ own need for its program of naviga- tion improvement, flood control, na-; tional defense and prevention of soll erosion, and was regarding this ex- cess as an unavoidable surplus in order to distribute it at low rates to municipalities. An unavoidable sur- plus, he said, might be sold by the| Government “If the Government cannot sell power without violating the law,” said Judge Grubb, “it is better to wagte it. If the power was created to sell, you cannot clalm you are selling a surplus.” Presidential advisers on this subject gathered from the opinion that it did | not question the right of the United States to sell such power as is inci-, dental to navigation, flood control or reclamation. The sale of by-product | electrical power they held to be ad- mittedly constitutional It was pointed out that, while con- siderable of the power to be generated at the big dam projects in the West was to be used by the Government itself. a definite part of the plan was to sell power to the public and for the avowed purpose of driving down rates in competition with private util- itjes. !Oflk(ms explained, however, that even if the Supreme Court were to sustain Judge Grubb, there would be ample reason to proceed with the big dams which the President inspected last Summer on his overland return from Hawail. Major Projects of U. S. The Grand Coulee Dam, involving an expenditure of about $63,000,000, it was explained, is primarily for rec- lamation purposes; the Fort Peck Dam for the same purposes and for flood cqntrol, the Bonneyville Dam for nav- igational as well as reclamation pur- poses, and the Caspar-Alcova Dam in lvoming for reclamation purposes. In npne of the projects was the power development aspect so pronounced, of- | fifials said, as in the Tennessee Valley Authority. Mr. Roosevelt, with a note of deflance to private power interests, served notice during his inspection of tHat project last Fall that he was de- termined to proceed with that. President Roosevelt, during his in- gpection of the Western projects last Stimmer, acknowledged that it would be years before markets developed for all the power these projects would be capable of developing. The projects ate so immense that the President himself was astonished at their size. A commentator noticed that no man since the days of the Pharoahs had updertgken so much building. *The allocations for these projects were from the original public works funds, some of them against the orig- inal recommendations of Harold L. Ickes, public works administrator. Another object of the expenditures was to help reduce unemployment. The Tennessee Valley project represents an investment of about $100,000,000, the Bonneyville Dam about $40,000,- ©Q0, the Fort Peck Dam, greatest egrthworks project in the country, $4§7,000,000, and the Caspar-Alcova project, $18,000,000. The St. Law- rdnce ~project has been held up by difficulty in negotiating a treaty with nada. Officials believe that the decision of Judge Grubb will not affect tie project of Mayor F. H. La Guardia, emcouraged by President Roosevel:, 1¢r a municipal plant to generate the power used by New York City and the Federal Government in that area ' P. W. A, Offers Help. 'The T. V. A. marshalled its legal f4rces, while the Public Works Ad- ministration, which was prohibited 1n tRe same injunction from making laans to municipalities for erecticn of ppwer distributing systems, offered Ip in the coming court battle. ;Judge Grubb, an appointee of for- r President Taft, who made the cision on the ground that sale of Government-produced power was un- cdnstitutional, was sharply criticized administration circles. ¢Senator Kenneth McKellar, Demo- ;‘:flb, of Tennessee, one of the original % V. A. sponsors, said: “Judge Grubb ig entirely mistaken. I believe the law is absolutely constitutional.” epresentative Tom Rankin, Demo- V. A. act, said he believed it was stitutional, but if not “we will end the law and then, if necessary, will amend the Constitution.” enry T. Hunt, P. W. A. general egunsel who offered his help in ap- plaling the injunction, said “Judge CGyubb didn't understand the case.” _cltlt, of Mississippi, co-author of the | sAn official announcement that the | cg§se will be carried to the highest ceurt is expected shortly and the legal | tflent of the New Deal will be mus- tared in defense of the second Roose- v§it agency to be declared unconsti- ttlnonal by Judge Grubb. 3 Questioned N. R. A.. $The constitutionality of the N. R. A. already been questioned by the sgme judge and an appeal from his decision is pending before the Su- pgeme Court. For this reason his adverse decision on T. V. A. was en- tifely expected. #The decision stimulated the power liperals within the administration, who have long held that so long as h§lding companies continue to exist irf the power utility fleld the Gov- ment will be “ham-strung” and bpcked at every turn by legal ob- 5;;1:5 which they contend the super- cgrporations “at the peak of the power pyramid” are able to raise. this respect the ‘decision in- cpeased the pressure for passage of tl Wheeler-Rayburn bill, which ;ruld outlaw utilities holding com- nies after January 1, 1940, and whpakened the position of a more ciliatory group which is still ad- v{cating a compromise program of ce-operation with the power in- ests. sIn the meantime the . general con- sénsus of opinion at T. V. A. head- quarters is that the decision will not affect power activities already in operatjon. Those municipalities al- ready receiving T. V. A. power will cqntinue to do so. T. V. A. is stopped from purchasing from the Alabama Ppwer Co. the transmission systems in 14 communities and operating them wjth Government-produced power. «It constitues the second instance in which a major expansion of the T. V. A. program has been blocked. The first instance was that of Knoxville, Tenn., where legal delays prevented conclusion. of a dea! for the purchase by T. V. A. of the private distribution system for that vicinity. New Deal Suspicious. While in this second instance there 1s no direct evidence that the holding companies themselves are responsible for the court test of the validity of A THE SUNDAY STAR, President Off for Short Trip FIGHT ON RELIEF LEFTTO PEOPL Administration Leaders De- cide to Let Action on Measure Rest. (Continued From First Page) legislation for adequate relief. The Republicans want to know, however, what this huge sum of money i to be expended for and how.” Administration leaders are worried not only over the action of the Sen- ate in support of the prevailing wage amendment to the work relief bill. They fear that unless the incipient revolt is checked, the other major measures in the President’s program of legislation may meet reverses, in- cluding the economic security bill and the bill to cxtend the life of the N. R. A. Hope Strategy Will Work. The strategy which the administra- tion leaders have adopted with re- gard to the work relief bill they hope !will be effective. In the light of the President Roosevelt and Secretary Louis McHenry Howe photographed yesterday as they left for Cambridge, Mass. The President went to see his son initiated into the exclusive Fly Club at Harvard. —A. P. Photo. GES DEPLOES WORK BL DELAY Holds Congressional Balk Unfortunate as Huge Proj- ects Await Funds, With more than $8,500,000,000 | worth of new public works projects ‘nlready proposed by States in the na- Itional inventory conducted by P. W. A. headquarters, Secretary Ickes was | prompted yesterday to declare con- | gressional delay in passing the ad- | | ministration’s work relief bill is “most | unfortunate.” | Nearly 60,000 specific projects of | every description have been listed by !P. W. A, State engineers and State | planning boards. Virtually all of the projects reported are new proposals, although there has been some over- | lapping. Follow’s Leng's Action. ! Secretary Ickes' comment was made at a press conference held shortly after Senator Huey P. Long | | started a move in the Senate to pro- | vide $2,500,000,000 for highway con- struction in a revised measure. Given the funds, P. W. A. officials said yesterday that the inventory of public works undoubtedly could take | care of this huge expenditure in rec- cord-breaking time. Listed in the in- ventory, which is still incomplete, are 15,033 projects for street and high- way construction, estimated to cost $1,822,563,835. Another $333,756,593 could be speedily expended, they said, on the 2296 projects reported for eliminating grade crossings. These two items of construction work alone, it was pointed out, prac- tically equal the $2,500,000,000 urged by Senator Long for highways. In- cluded in the unexpended highway program already being constructed with the aid of P. W. A. funds are a sufficient number of projects to more than make up the differenec. Highway construction, Secretary Ickes reported last week in an analysis of projects, puts more men to work in a faster time than any other form of public works. Capital Not Included. The national inventory, which will not be completed until March 1, covers all States, but omits the Dis- trict of Columbia. No request for an inventory was made of the District Commissioners because the District government must first obtain au- thority from Congress to borrow from P. W. A. funds for specific projects. There is nothing, however, to prevent | the Commissioners from submitting a | list of desirable local projects for the consideration of P. W. A. Secretary Ickes has been marking time for several months on new proj- | ects to put men to work, because of the inavailability of funds. Only about $236,000,000 remains for new projects, and from this sum the Emer- gency Relief Administration is draw- !ing millions for the support of the unemployed until Congress passes the new work-relief bill. Already $95,000,000 has been bor- rowed from P. W. A. for relief pur- poses. The money has depleted Sec- | retary Ickes’ $150,000,000 housing fund until now there is only $15,000,000 re- maining for low-cost housing, Until the money is paid back, the low-cost housing program will be practically at a standstill. Measure Held Needed. Commenting on the delay in pass- ing the $4,880,000,000 work-relief bill, Ickes said: “I am convinced we need a work bill to take unemployed off the dole and give them jobs.” In the National inventory no analy- sis has been made to determine the proportion of Federal and non-Federal projects, but a cursory examination of the lists shows that most of the projects reported are' non-Federal. New Jersey, with 1,754 projects, re- quiring $1,408,722,364, leads New York, which reports 742 projects, to cost $1,267,645,177. Maryland has listed 892 projects, estimated to cost $131,- 095,250, and Virginia has listed 1,586 projects, for which $106,641,601 would be required. the proposed expansion, the adminis- tration is frankly suspicious and it was learned today that the Federal Trade Commission is conducting a secret investigation into background of the case to find out where the mo- tivating influence lies. . The Alabama Pcwer Co. agreed to the sale of its properties in the 14 communities and preparations were made to put the transaction into ef- fect. Suit was brought by minority stockholders with whom local coal and ice interests were affiliated. i ‘Whether such impediments can be properly charged to the holding com- pany system is, officials admit, tncer- tain. In this particular instance noth- ing has been proven. But within the administration the conviction is strong that if the system were abolished as contemplated in the Wheeler-Rayburn bill there would be a notable decline in the opposition to the Government'’s efforts to establish an effe¢tive *yard- stick” for measuring electricity rates. | lation, rather than to take that sent | mitted no draft of a bill. CONERESS REVOLT CALSES ALARN Administration Control Threatened for First Time Under Roosevelt. (Continued From First Page.) e of the Capitol of an undercover re- bellion. Secretly, dissatisfied Democrats were trying to organize a group of 100 to get through legislation opposed by the administration, on the bonus, silver and inflation. In both Houses there was an in- creasing disposition on the part of committees to write their own legis- down from the White House. Roosevelt Takes Notice. In his most recent message, asking for extension of the N. R. A., Presi- dent Roosevelt took cognizance of this attitude and, publicly at least, sub- So slow was administration legis- lation progressing in committees, that the Senate found itself with nothing to do following recommittal to com- mittee of the work relief bill. Only an appropriation bill and a few minor measures were on its calendar for next week. Social security is next on the pro- gram, but the House Ways and Means Committee has at least another week of work before it will be ready. The Senate Finance Committee has to wait until it gets through the House. It may be several weeks before an- other major piece of legislation is ready for the Senate. Reviewing the accomplishments of the session, leaders found they had passed and sent to the White House only ! of the 11 annual appropria- tion bills and three or four other measures of varying importance. The bills passed included the $777.- 000,000 independent offices appropria- tion bill; a deficlency appropriation bill earrying restoration of pay for | Government employes; the $60,000,000 crop loan bill, and the Connally “hot ofl” bill. SILVER INFLATION DEMANDS SHAPEN WITH REVOLT TALK (Continued From First Page.) subject instead of the recommenda- tions of the brain trusters who have | been legislating for us for nearly two years,” said one member. The belief was expressed by another “secret 100" recruit that Southern Democrats would form its nucleus. The members from the “solid South,” he said, “don’t have to hang on to Roosevelt's coat-tails to be elected.” “All they need is to get their names on the Democratic ticket—and they can do that,” he added. He agreed, however, that members from doubtful States would be more careful about “breaking” with the President. Patronage One Objective. Numerous ideas were in the minds, of the members seeking to form the organization. One said it could be used to make “the administration see light” on patronsge. This man, & newcomer to Congress himself, said all new House members were being discriminated against when it came to the distribution of Federal jobs. Another insisted that as he saw it the group’s primary purpose should be to give the President “accurate infor- mation about how his aides are miss- ing a chance to set up a first-class political organization.” In the Internal Revenue Bureau now, this member asserted, there are 20 lawyers—"17 Republicans and 3 Democrats.” “The three Democrats are doing nothing.” he added, “while 17 Re- publicans are out starting tax eva- slon cases against prominent Demo- crats in an attempt to discredit them, t'l)‘:z. President should be told about The House's patronage Dice-cutting squabble already has spread to the Senate, upsetting the usual dignity and calm of that chamber when reports reached it that Speaker Byrns had said 10,000 jobe would be available in the expanded C. C. C. for “deserving Democrats.” Senate Democrats were flushed into partisan debate Friday by Senator Hastings, Republican of Delaware, who asked if the Democrats could find 10,000 jobs out of $130,000,000 for the C. C. C. “how many will they find for = Democrats’ out of the $4,- 000,000,000 in this bill?" Hasings referred to the work relief | bill sent back to the Senate Appro~| priations Committss Friday and| President Roosevelt's proposed in- the Conservation Corps. fact that the McCarran amendment had only a majority of one when it was voted on Thursday in the Sen- ate, and it might have had a favor- able margin of only three had Senator Thomas of Oklahoma and Senator Smith of South Carolina been present to vote, the administration has not a great deal of ground to gain to upset the opposition. Senators in whose States public works projects have been under way and for which more money is required, as well as those who hope to obtain many more such projects for their Etates, will be under considerable pressure, they point out. Frankly, some of the administra- tion Se ease with which they were able to get the work rellef bill recommitted. The supporters of the McCarran amend- ment had the measure in the shape they desired. Possibly if they had bad the week end to think the sit- uation over, they might not have yielded so easily to the motion to re- commit. Should the Appropriations Commit- tee finally report out the measure with the appropriation cut to $880.- 000,000 for immediate relief needs, as has been suggested in some quarters, WASHINGTON, D. tors are surprised at the | (o proved would increase the cost of dis- continuing the dole and substituting work relief by approximately $2,340,- 000,000. The exact amount, of course, cannot be stated, but the weight of evidence taken by the Senate Com- mittee on Appropriations is that in- stead of $4,880,000,000, $7,220,000,000- will be required to accomplish the two purposes; namely, the discontinuance of the dole and the temporary absorp- tion of the unemployed in works of permanent value and importance. “It should be remembered for the most part no emergency conditions apply to the construction that will be undertaken under the work relief pro- gram eml in the resolution. Many of these works can wait. Drain Too Great. “The drain on the Treasury to pro- vide $4,880,000,000 would havs been great enough. The drain is too great to authorize $7,220,000,000 when the authorization is calculated to defea: the primary purpose which prompted the formulation of tHe plan. “When the President announced that he will not sign the joint reso- lution with the McCarran amend- ment, the Senate recommitted it to the committee on appropriations. “What will be the final fate of the measure? This is the question in which the country is interested. There can be no assurance given at this time &s to what action the committee will take or as to what will be the future attitude of the Senate. “It is possible, of course, to report and pass an appropriation for $880,- 000,000, thus providing funds required in the immediate future for relief purposes and postponing a nocclusion respecting unemployment relief. 1t is ‘useless from the standpoint of the pro- ponents of the McCarran amendment to pass the legislation for the reason that every one knows the President will veto it and it cannot be enacted over his veto. “There is cumulative evidence of re- turning prosperity. The work relief program was devised to tide the country over the period while busi- ness is being revived and enterprises are being resuscitated. It is impos- sible for the Federal Government long to carry out a program for a national dole or a public employment system. Those who believe that the Federal | Treasury is inexhaustible think money can be printed for emergency pur- poses with resort to that measure of |inflation which in the experience of other nations has meant the ruin of | everything worth preserving. | “Those in the Senate who have been denouncing extravagance will find themselves wholly unable to Jjustify the increase of the expense of | two billion dollars. and the bill be passed in that shape, it would go to conference with the House. In conference the $4000.- 000,000 for work relief might be re- stored and the bill then become law. A prevailing wage amendment could not be written into the bill in con- ference. So it is expected that Sen- ator McCarran would offer his amendment again, no matter how small the appropriation proposed by the committee in its report of the bill. Labor Wants Wage Clause. Organized labor, and particularly the American Federation of Labor, is ing wage may discover their error | when it is too late to prevent the aug- | mentation of the rolls of the unem- | ployed and possibly the dimunition of | the compensation of workers who are engaged in industry because of the de- preciated currency. “The time has arrived when patriot- |ism should be placed above politics, | both personal and partisan.” 'MRS. GOLDSMITH, FORMER EDITOR, DIES to continue its efforts to bring about | the adoption of the prevailing wage amendment, despite the fact that the President has let it be known that he will veto the bill if it carries that provision. The administration lead- ers in Congress do not wish to have the bill laid on the President’s door- step in that shape, however. They do not wish to have him faced with the necessity of vetoing the relief bill. It is the contention of organized labor and of the Senate supporters of the prevailing wage amendment that without it wage scales through the country will be beaten down, when the Government has put in op- eration the proposed lower scale. They argue, too, that the administra- tion can accomplish its original pur- pose of putting 3,500,000 unemployed to work on relief projects without ad- dition to the $4,000,000,000 for these projects. They propose the expe- dient of limiting the hours which the men shall work per week, thereby holding them to the average of $50 a week. There is no minimizing the fact that the action of the Senate last week was a serious rebuff to the administration. This is particularly true since the Sen- | ate has on two other occasions in the present session gone contrary to the recommendations of the President and | his advisers. Once when it defeated ‘World Court adherence and again in a vote on interest charges in the farm mortgage bill. Robinson’s Statement. Senator Robinson's statement in full | was as follows: “The work relief program contem- plates the expenditure of a large sum for two purposes of great importance. First, to get rid of the Federal dole, and second, to substitute for it work| relief on a scale of sufficient magni- | tude to afford made work for those who are desirous of earning their live- lihood. The fundamental principle of the President’s proposal is that work relief employment shall be on a basis that will not invite and attract persons now engaged in private enter- prise. On the contrary, the theory of the legislation is that those who accept employment in work relief shall do so with the full understanding that it is desirable and necessary that they enter private employment as soon as the opportunity is afforded. “Do those who have upset this pro- gram for the present realize the full effect of their actions? Do they un- derstand that to guarantee the pre- valling wage means the perpetuation of the dole, the problems of unemploy- ment rather than their solution in a sane and practicable way? “The vote in the Senate which in- corporated the McCarran amendment by a majority of one, was contributed by 21 Democrats and 21 Republicans and 1 Farmer-Labor and 1 Pro- gressive. The amendment thus ap- A Bank for IND The Morris Pleo ] Bank offers the INDI VIDUAL the facilities of & SAVINGS BANK with the added feature of i offering a plan to make loans on s practical basis, whioch ensbles the borrower to liquidate his obli gation means of weekly, semi- monthly or monthly deposits. MORRIS Member of American Pen Wom- | en's League Was Agricul- tural Employe. | Mrs. Bennie Goldsmith; former edi- |tor of the Agriculture Department | bulletins and member of the District | League of American Pen Women, died { Thursday at the home of her daugh- | ter, Mrs. Thomas Hay, in Great Neck, |Long Island. Mrs. Goldsmith, the | widow of THenry Hornaday Goldsmith of Atlanta, Ga., had lived in Wash- ington for many years at the Burling- ton Hotel. | Mrs. Goldsmith was also a member of Calvary Baptist Church here, the | United Daughters of the Confederacy |and the Daughters of the American | Revolution. Besides Mrs. Hay, she is survived by a niece, Miss Elizabeth Woodard. of this city: her son, Henry Goldsmith, of Buffalo, N. Y., a nephew, Ben Goldsmith, of Atianta, and several grandchildren. Funeral services will be held in At- lanta tomorrow, followed by burial in Westview Cemetery there. COMDR. AUGl.JSTUS ALMY 1S BURIED IN ARLINGTON Capt. Sydney K. Evans, Chief of Navy Chaplains, Officiates at Funeral. Comdr. Augustus Craven Almy. U. 8. N, retired, who died Thursday, was buried yesterday in Arlington Na- tional Cemetery. Capt. Sydney K. Evans, chief of the Navy’s Corps of Chaplains, offi- ciated. Comdr. Almy, who was 79, is survived by his widow, Mrs. Alice Knapp Almy, who resides at the Brighton Hotel. Born here November 9, 1856, Comdr. Almy was appointed & cadet midship- man by the President in 1872. He was under ordnance instruction at the ‘Washington Navy Yard in 1887, and subsequently served with the Coast Survey. He returned to the Wash- ington Navy Yard in 1896 and later served aboard numerous ships. Placed on the retired list in July, 1905, Comdr. Almy returned the fol- lowing year for duty in the office of the judge advocate general. He was recalled from the inactive list in February, 1917, and served as alde to the commandant of the 2nd Naval District at Newport, R. I, and later did duty as senior aide to the com- mandant of the navy yard at Ports- mouth, N. H. the IVIDUAL | an account at this Bank in order to borrow. Loans are od within a day or two after filing application—twith few exceptions. MORRIS PLAN notes are usually made for 1 year, though they may be given for any period of from 3 to 12 months. PLAN BANK Under Supervision U. S. Treasury 1408 H Street N.W., Washington, D. C. “Character and Barning Power Are the Basis of Credit™ the work relief program by more than | | “Those who champion the prevail- FEBRUARY 24, 1935—PART ONE. tion of Citizens’ Associations, who also IJD president of the Burroughs associa- n. M’CARRAN TO SPEAK Se:lwr Mccn;:}:u of Nevada will speak at 8 p.m. y &t & meeti: e of the Burroughs Citizens' Aasocmlg: Becomes Airship Port. in the John Burroughs School, Eight- | Frankfort is to succeed Friedrichs- eenth and Monroe streets northeast, | haven as & German airship port. it was announced Jast night. Presiding at the meeting will be | Floods recently isolated many farm David Babp, secretary to the Federa- | houses in the Irish Free State. GEOLOGY SESSION ENDS By the Associated Press. The Association of American State Geologists yesterday ended its annual meeting after re-electing George C. Branner, Arkansas State geologist, as president, and Dr. Arthur C. Bevan, Virginia State geologist, as secretary. W. & J.SLOANE 711 Twelfth Street the On Goes —replenished with important reproductions from our own workshops—including bed room suites and occasional pieces—which insure not only correct character in design. but superior construc- tion. A combination which makes these special reductions intensely attractive. Early American Group The exactness with which these pieces were copied and adapted from originals is a tribute to both the art- istic talent and skilled craftsmanship. Genuine maple with curly maple drawer fronts and head boards. The finish is in that soft, dainty, old honey color. 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