Evening Star Newspaper, June 14, 1935, Page 2

A2 wxx¥ BUSINESS, FREED OF NR. A GAINING Confidence and Renewed Activity Follows Charting by High Court. BY DAVID LAWRENCE. Fnough time has elapsed since the Supreme Court decision on the N. R. A. to survey the effect on American “business and industry, and it is grow- | - ing clearer every day that the decision has given an impetus to trade which «1s likely to be reflected in an increas- | ing volume toward the end of the| 4Bummer and in the Autumn. | From all parts of the country busi- ,hess men are reporting a revival of | ,confidence and a renewed activity.| They do not all attribute the change | in psychology to the same thing. but it is apparent that the Supreme Court ‘decision furnished a chart to the ship What’s What Behind News In Capital Letter of President Cuts Ground From Under Dieterich. BY PAUL MALLON. The man who now is supposed to be President Roosevelt’s main conserva- tive udviser called at the White House before the Hyde Park trip. He at- tempted to persuade the President that the electrocution of public util- ity holding companies was too severe. He wanted them paroled under a Gov- | ernment reform school instead. A few minor amendments to the electrocution. section of the Wheeler-Rayburr bill were! dis- cussed, but no specific substitute amendment was agreed on. How- ever, the adviser went away with ‘of state which so many people had | delt had been lacking during more | ‘than two years of uncertainty. | The legislative situation here. of | course, has by no means clarified. But the feeling is becoming general that the wings of an irresponsible Congress and administrationt have been clipped | and that as long as there is a Supreme | Court there will be no sanction for the deliberate confiscation of property or the arbitrary interference by govern- | ment in the management of business ! Question of Excesses. | Perhaps the most important factor in any business upturn is confidenca.i But this does not by any means imply confidence in an ability to go on un- | _testrained. Too many New Dealers. | for instance, assume that the alterna- | “tive of the New Deal is license or un- restrained liberty. Too many critics "assume that the desire to do as they -please is the cardinal theme of the ‘business man's complaint against Gov- | <«ernment intervention in his affairs. The truth is, business wants cap- | ttal which is invested to be conserved. | It wants an opportunity to earn a re- turn on that investment, and the mo- ment the politicians step in to make capricious rules and regulations that do not bring a fair return on capital invested there is danger, due to uncer- tainty and due to unwillingness of in- vestors to continue to take risks. The new N. R. A. will not resemble | its predecessor at all. It will be an experimental mechanism to placate labor groups and to continue the | search for ways to preserve by legis- lation certain social standards set up by the N. R. A. But the new N. R. A. will be of less and less importance as the distinet impression that a re- form school substitute would be acceptable to the President, That word was passed around in- side. From it grew inspired published prophecies about the New Deal soft- ening the sentence on the utilities be- fore the Senate vote. In addition, it was the hidden basis on which the fight was made for the Dieterich amendment in the Senate. Liberals Get Roosevelt Letter. The liberal advisers of the Presi- dent heard nothing about such a change of heart: at least, not from the President. In fact, they went to the extent of getting a letter from him saying emphatically he wanted noth- ing more than minor changes in the electrocution clause of the bill. This they kept in their pockets until the final drive began for the Dieterich amendment in the Senate. Senator Dieterich arose and an- nounced, just before the close, ex-| citing vote, that he was “authorized” to say that the President did not| have in mind the elimination of good helding companies, only bad ones. ‘Then the liberals let him have it. The signed communication from the President was read by Senator a business factor because of the Borah amendment, which prohihits any deals | whereby industrial groups are granted | immunity from anti-trust prosecutions | in exchange for concessions on labor standards or wage codes. Senator Borah is absolutely on firm | ground when he fights the would-be | monopolists, and despite much that | has been argued to the contrary by the defenders of the N. R. A., notably the President himself, the scheme was one that soaked the consumer by forc- | ing high prices and eliminating com- | petition. Without the N. R. A. Business is getting along very well without the N. R. A. Prices may go lower in some fields and ought to go lower when competition is released again. As for wage levels, they will hardly drop, for the simple reason that the Government is gradually put- | ting more and more people on the | dole and many of the latter are re- fusing to work at low wages. It would not be surprising if the paradox of a labor shortage occurred alongside of | Government relief to millions of un- employed. Already in the skilled trades there is a shortage now. As volume of business increases, Wwages are bound to rise, because there | will be a bidding for such labor as is | available. The Tugwell program of the New Deal, known as the “third economy,” calls for continued ex- penditure of many hundreds of mil- lions and possibly billions of “work- relief” that will absorb a good many workmen and thus contribute to an artificial, rather than an actual, acarcity of labor. | Meanwhile the amount the Govern- | ment pays on work relief will play a large part in bolstering up the wage levels indirectly. While the Govern- ment’s policy will be to pay wages be- low those given in private industry, the difference between this “dole” wage and the offering by private employers | is apt to be so small as to cause many workmen to prefer their relief jobs | with shorter hours and perhaps less | exacting requirements. Troublesome Psychology. In various cities it is frequently re- dole of $15 a week feels, when offered $20 a week, that he is being asked to work for only $5 a week. This psychology will prove troublesome eventually in developing a market for labor when business feels the increased demand for goods. The reports on business conditions throughout the couniry following the Supreme Court’s decision have been closely guarded. It would be politi- cally inconsistent, of course, for an administration which two weeks ago | thought the whole country was going backward to the horse and buggy” era to proclaim now that perhaps it was mistaken, The truth is American business and | industry have a real momentum now and even the prospect of impediment from Congress does not seem likely to break down the recovery movement. The only threat on the horizon of a long-range character is the condition of the Federal Treasury, which will shew another $3,000,000,000 deficit at the end of this month for the current fiscal year. But the hope here is that, when business revives, tax revenues will increase and emergency expendi- tures will be lopped off. (Copyright. 1935.) e CHACO FIRING HALTS FOR 10-DAY TRUCE Weary Soldiers on Battle. Lines Receive News of Peace Protocol Signing. By the Associated Press. BUENOS AIRES, June 14—A 10- day truce took effect in the Chaco at noon today, the Bolivian and Para- guayan general staffs issuing the “cease firing” order to weary soldiers whose hostilities had virtually halted several hours before. Word of the peace protocol signed here this week reached the battle lines ‘Wednesday and yesterday, and all sec- tors were quiet overnight and this morning. : With the end of three years of fight- ing, in which an estimated 100,000 men died, the peace machinery con- structed by representatives of six neu- tral American nations begins operation here. The first step is ratification of | this time—on the run. Wheeler. Irresistible Force Wins. This development is only one chap- ter in the most sensational inside tale of hard legislative fighting that Wash- ington has heard or will l.ear for many a year. Congressional corri- dors are said to je strewn with cross and double-cross postscripts, meaning kisses. So far, one thing has been estab- lished; namely, what happens when an irresistible lobbying force meets an immovable lobbying object. The irresistible force wins by one vote. At least it did it the Senate, where the liberal lobbyists for the admin- istration defeated the conservative- utility lobbying agents by that margin on the Dieterich roll call. The liberals had a lobbying ad- vantage because their No. 1 man, Ben Cohen, sat on the Senate floor as a Government expert assisting Senator Wheeler. That was excusable because Mr. Cohen and his associate, Thomas Corcoran, really wrote the bill. The public utility people had to work from the gallery. Hurja to Rescue. A few hours before the roll call both Messrs. Cohen and Corcoran began to sense that something was wrong. Some Senators they had counted as “safe” were not behaving properly. Something had to be done to get their boys back in line. Mr. Roosevelt was out of town. So was Postmaster General Farley, who is supposed to have rushed up to the Senate severai weeks ago to save the bonus veto in similar cir- cumstances. The third strongest political influence on Senators in this administration is Emil Hurja, right-hand man to Mr. Farley. Now Mr. known as a liberal. pear often at the Capitol. What he did and how he did it cannot be told officially. But miore than one Senator will tell you confidentially Mr. Hurja changed four votes; that is, he per- suaded four Democratic Senators not to vote as they intended to vote, but to save the electrocution clause. They | ported, for instance, that a man on a | @ seems to be a split in the ranks of New Deal liberal advisers. Apparently all the former associates of Messrs. Cohen and Corcoran are not going along with them whole-heartedly on this electrocution issue. So far, an open break has been avoided and it is to the interest of both factions to continue to conceal it, but you never can tell. é Funds to Last Until Election. ‘The way the new relief expenditures are being delayed indicates they will begin to hit their peak just about the time, next Winter, that the presi- dential campaign of 1936 begins. Also the delay should permit the funds to last until after election. At least this i!‘ what Republicans here are afraid of. Senator Glass asked all Federal Re- serve boarders whether they had seen & copy of the new bank bill before it was presented in the Senate, and all answered in the negative. The im- plication is that the New Dealers did not consult the board. What seems to have happened is that the provi- sions of the bill were fully discussed with the board, but actual copies of the bill were not placed before it. Vermont’s only Representative, Charles Plumley, was born, reared, went to prep school, college, was president of ithe prep school and President of the college, all in the same town, Northfield. Senator eats more candy than all the rest of the Senate com- bined. One afternoon recently, he consumed three 5-cent packages of chocolates two 10-cent fudge bars, and he is a doctor. not | Hurja never has been | Nor does he ap- | He did | THE EVENING STAR, WASHINGTON, D. €, FRIDAY, JUNE 14, 1935. NEW RELIEF PLAN IRKS GOVERNORS Hopkins’ Aide Tells Execu- tives They Will Have No Part in Spending Fund. BILOXI, Miss, June 13 (N.AN.A). ~—The way was paved for a bitter argument in the conference of Gov- ernors over the issue of Federal dicta- tion to the States when Aubrey Wil- liams, a slim young social worker, pinch-hitting for Relief Administrator Hopkins, told the Governors that they were to have no voice in the distribu- tion of the $4,000,000,000 public works fund. The issue was postponed because Mr. Willilams was forced to hurry away to catch a train, but he did not escape without & caustic cross-exami- nation at the hands of two Southern Governors. Gov. Conner of Mississippi, whose previously expressed fears that the whole relief organization of his State was to be shifted to control of Sen- ators Harrison and Bilbo were fully confirmed, led the attack. “Are we to understand that this | tund is to be administered by a Fed- | eral agency set up in the State with- out regard to or consultation with | the State authorities?” he asked. “Hopes” for Consultations. “Tt is correct to say that the Federal agency will have exclusive legal au- | thority. I hope there will be consul- | tation with local officials,” said Wil- | lams. “Which means, does it not, that this relief of human suffering is to be | handled by men appointed in the same way as postmasters, solely on the basis of political patronage?” pur- | sued Conner. “I can't answer that” said Wil- liams. “That is a bridge we can't cross till we get to it.” Gov. Ehringhouse of North Carolina took up the examination. eral Government has graciously per- mited the Governors to sign certain controlled from Washington. Now, as I understand it, we aren't even to sign the checks?” Williams. Graves Backs Williams. “The fact that we are the consti- tuted authorities of the States makes | us suspects,” said Ehringhouse. “I was interested in knowing how much co- operation was expected of us. Are we |to understand that we are to have |no part in spending this relief money?” “Legally that is the situation,” said Williams. “All I know.” said Ehringhouse, “is that I am still legally the Governor | of North Carolina.” Gov. Graves of Alabama came to | Williams® defense. “The Congress has placed adminis- | tration of this fund in the ds of the President,” said Graves, “I don't | think it is fair to ask Col. Williams how the President is going to pick fche soup ladles to dip out this soup. In some States the President may consult United States Senators and in others he may consult Governors.” “As long as the Federal Government is putting up 90 or 95 per cent of | this money I'm williog they should | have a lot to say as to how it is to be spent,” chimed in Gov. Cooney of Montana. Conner May Run for Senate. That ended the immediate discus- sion of the subject, but Gov. Conner boiled over after the meeting. . “What it amounts to in Mississippi,” he said, “is that the President is tak- |ing this money contributed by the people of the States and using it to | set up a hostile political organization against members of his own party.” | Conner refused to say so on his |own account, but his political friends were saying that the developments had | virtually made him determined to en- ter the contest for United States | year, and this for the purpose of carrying the issue of Federal domina- tion directly to the voters of the State. ‘Williams did give the Governors the first comprehensive picture they have | received of the 1935 relief set-up. There would be approximately $4,000,- 000,000 available, he said, after all commitments up to July 1 have been {met, and of this sum $1,800,000,000 already has been allotted for C. C. C. camps, highways, housing, rural re- habilitation and administtative ex- | pense, leaving approximately $2,200,- 000,000 still to be disposed of. | Williams Warns Governors. It is from the latter :um, he said, that the President proposes to put to work approximately 1,500,000 able- bodied men now on the relief rolls and not previously provided for. The greater portion of this amount, he explained, will be expended on work projects very similar to those now being used for relief employment, but allotments would be made to State projects where the States put up a portion of the cost. “The Governor who does the best job in planning and presenting his projects,” Williams said, “will get the most things built. This is your op- portunity, If you are going to muff it, that's too bad. We'll do the best we can otherwise.” Williams eloquently defended Pres- ident Roosevelt’s plan of transferring all able-bodied persons on relief jobs. “No government,” he said, “can keep things in control if it sets out on a plan of giving peopie a living. Many pecple in this country, even before the depression, had such a hard time making a living that the lowest standard of relief dole the Govern- ment can set up is more than they were getting.” Williams declared that 400,000 fam- ilies investigated in the South dis- closed an income averaging only $151 a year. Williams estimated $300 would be available on the average to provide work for a year for each of the 2,500,- €00, and he expressed the opinion that this would be adequate. (Copyright. 1935. by the North America: Newspaper Alltance. Inc.) . Debates social security bill, House, Considers N. R. A. extension. © TOMORROW. Senate mulfuhhmnucmucufiw Privileges and Elections Committee will meet to act on eligibility of Sen- ator-elect Holt of West Virginia, House. “In the past,” he said, ‘the Fed- | checks for work which was in fact | “That's one way of putting it,” said Senator against Pat Harrison next | Receding Tide Leaves Whales Beached Pifty-seven whales, weighing up to 2 tons, were beached at Naples, Fla., when the tide suddenly receded. Fishermen expressed thie belief that the small school became lost while hunting for a haven in the Atlantic. NOTE: In 1930 James W. Gerald, former Ambassador to Ger- many, listed 63 persons as the lead- ing influences in the United States. Last year, Gene Howe, Amarillo, Tex., editor and son of Ed Howe, famous Kansas journalist, declared one man—President Franklin D. Roosevelt—controlled thz politicial destinies of the United States. To- day he says that Mr. Roosevelt has lost much of his power, but mot his popularity. In listing the in- fluential persons he says there has been an_ “astonishing change” in the President’s advisers. The views expressed in the following article by Mr. Howe are his own and are presented for the mews interest they contain. BY GENE HOWE, Editor the Amarillo Globe-News, AMARILLO, Tex., June 14 (® —In selecting 50 persons who are having the most effect on the immediate future of the Nation, as was done last year, it cannot be said they are in control. There has been an astonishing change in the President’s advisers. ‘ The country is bewildered, but the 49 men and one woman having the | greatest influence upon it are easily discerned. | " President Franklin D. Roosevelt, who, & vear ago, had complete mas- | tery of the Nation, now is beset and | assailed by excited minorities which | have thrown the country into con- | | fuston. Roosevelt has lost much of | his power but not his popularity. | J. Edgar Hoover Aide. J. Edgar Hoover, director of the '\F:denl Bureau of Investigation, is | close to Roosevelt in popularity and | is his greatest aide from a political | standpoint. | President Roosevelt is followed by | the nine “horse and buggy” members of the Supreme Court. Instead of being dismayed by the decisions of the Supreme Court, many of thosé most loyal to the President | feel relieved. While there is tension | in the White House, there is relaxation in some of the most important inner circle, in Washington. Roosevelt has the greatest micro- | phone presence and the most amazing | news reel allure of all time. There is | a quiet, dignified but emotional ap- peal or pull in his voice that pene- | trates to the very depths of the hearts of the American people, particularly the women. | The woman folks love him and they constitute his strongest bloc. Business Men Hostile. Nine out of 10 of the larger busi- | ness men, in small cities as well as | large, are hostile. Roosevelt’s greatest | danger is that he may continue to | gauge his tremendous personal popu- |larity as an indorsement of all his policies. The prayer of the American people is for recovery. We have the Unknown Soldier and | other unknowns, and also the un- known adviser. He is the man who advised Roose- velt to plant a shelter belt from the Panhandle of Texas to Montana. | This has caused more wonderment | among those who inhabit the plains where the trees are to stop soil erosion than anything that his been done by the administration. It has provided the plains with more jokes than Mae West. Close after the members of the Supreme Court come Huey Long and ex-President Herbert Hoover. Long’s power is diminishing and he is being largely offset by Hoover in his inter- views and public addresses. Long’s voice rasps over the radio and the women folks laugh at his pudgy face when they see him in the motion pictures. i Coughlin Talks Too Much. Father Coughlin is a modern witch burner, but he is making the great mistake of talking too often and too much and of taking sides in too many issues, Mrs. Roosevelt now is mnot con- sulted. She is not only the life of the party, the Democratic party, but of the whole Nation. She has the vitality of a8 Tarzan and continues to enjoy herself hugely. There are some inclined to the belief that the President is mildly henpecked, but he isn’t. He wears the pajamas. Dt. G, F. Warren and Dr. Felix Prankfurther no longer have the right to enter the White House without knocking. Prof. Rexford Tugwell has settled down to hard work in the Department of Agriculture and, inei- dentally, is making a good hand. Gen. Hugh Johnson is struggling valiantly to remain in the limelight. Roosevelt more and more is calling in such men as J Garner, who has surmounted the vice presidency and will be renominated; Jesse Jones, chairman of the R. P. C., the hardest working and most capable executive in Washington; Joe Kennedy, ehair- man of the S. E. C.; Frank Walker, chairman of the National Emergency Biddle, Labor Relations Board, and others of their type. . pl-._'nnw ) They are closer to Roosevell as & whole than members of the cabinet. General Farley has the Gene Howe Names 50 Persons Now Influencing Nation Most Roosevelt Seen Less Powerful Than Year Ago—Former Barbara Hutton Mdivani Is Sole Woman Listed. constant annoyance to Farley because of the enmities he stirs up among Democratic leaders and party friends. Roosevelt is pondering over him. Harry Hopkins is closer to Roose- velt than he has ever been. Both are | spenders and both speak the same | language. For the job he is the best man in the United States. Homer S. Cummings, Attorney General, has lost his rating, and Roosevelt runs both the Navy and the Army absolutely. The one woman on the list is | Countess Court Haugwitz-Reventlow, the former Barbara Hutton Mdivani, the American 10-cent store heiress, whose distribution of wealth in Eu- | rope has stimulated public sentiment ,m favor of greatly increased inher- itance taxes. The widespread, pitiless publicity she has had in the news columns of wealthy publishers has had more ef- | fect on the American voters than can | be offset by editorials in the same | newspapers against higher income and higher death taxes. Roosevelt | senses this and it will be a campaign | issue. Elderly People Organized. One of the largest minorities in the | United States is represented by those who favor the Townsend plan or some compromise offering more than $15 & month. The elderly people are or- | | ganized in every city and hamlet | | west of the Mississippi, to say nothing | | of the advocates in the East, and they | have but one objective, and this is a living pension. Townsend's fluke in | Washington has not routed them. | There are millions who will vote for | the party that promises them the most. | The complete list of 50 persons | | does not include bankers or indus- trialists or big business men. The line-up is almost wholly political, with an array of publishers who are mak- | ing the fight of their lives to main- tain the power of the press. There are some in the list of 50 whose influence will have the effect of liberalizing the party platform or in | further frightening the reactionaries into concessions. There are those who are sobering others who at heart | are Conservatives, and then there are | also those who are fighting frantically | for the public moneys, which they | know cannot hold out indefinitely, or | for special advantages for organized | groups. List of 50 Selected. The list follows: President Franklin D. Roosevelt, | Charles Evans Hughes, Chief Justice | of the United States Supreme Court; Willis Van Devanter, associate justice; James Clark McReynolds, associate justice; Louis D. Brandeis, assoclate Justice; George Sutherland. associate Jjustice: Pierce Butler, associate jus- tice; Harlan F. Stone, associate jus- tice; Owen J. Roberts, associate jus- | tice; Benjamin N. Cardozo, associate Justice; Cordell Hull, Secretary of State; Henry Morgenthau, jr., Secre- tary of the Treasury; James A. Far- ley, Postmaster General; Harold L. | Ickes, Secretary of the Interior; Henry A. Wallace, Secretary of Agriculture; Daniel C. Roper, Secretary of Com- John N. Garner, Vice Presi- . Edgar Hoover, director of the Bureau of Investigation; Senator Huey Long, former President Herbert Hoover, the unknown adviser, Frank C. Walker, chairman National Emergency Council. Rev. Charles E. Coughlin, Dr. Fran- cis E. Townsend, Anning S. Prall, | chairman Federal Communications Commission; M. H. (Deke) Ayles- worth, National Broadcasting Co.; Wil- liam 8. Paley, president Columbia Broadcasting System; Willlam Green, president American Federation of La- bor; John L. Lewis, president United Mine Workers; Harry L. Hopkins, Fed- eral Relief Administration; Marriner S. Eccles, governor Federal Reserve Board; Arthur E. Morgan, chairman Tennessee Valley Authority; Francis J. Biddle, chairman National Relations Board; Joseph P. Kennedy, chairman Securities and Exchange Commission; Senator William E. Borah, George H. Lorimer, editor, Saturday Evening Post; Col. Robert R. McCormick, pub- lisher Chicago Tribune; Frank Knox, editor Chicago Daily News; Roy How- ard, Scripps-Howard Newspapers; Sen- ator Carter Glass, Senator Pat Harri- son, Countess Court Haugwitz-Revent~ low, Jesse H. Jones, chairman Recon- struction Pinance Corp.; Joseph W. Byrns, Speaker of the House; Sena- tor Joseph T. Robinson,. Democratic leader; Senator Arthur H. Vanden- berg, Will Kent, Baltimore Sun. MRS. ROOSEVELT HOLDS LAST PARTY OF SEASON Says Summer Plans Are Vague, but She Will Spend Some Time at Hyde Park. 5 i f fi; fox I i Ee 2§ i 3 ; 187 E i | 8 i -3 j i £ i !g | & s REPORT IS MADE IN CUTTING CRASH Weather Chiefly Blamed for | Death of Five in Plane Wreck. Bad weather, aggravated by incor- rect forecasts by both the Government and company meteorologists, with spe- | cific violations of five Bureau of Air | Commerce regulations and faulty work by ground personnel as contributory factors, were held responsible by the | Department of Commerce today for the crash of the crack Transconti- | nental & Western airplane, in which | Senator Bronson M. Cutting of New Mexico and four other persons were | killed near Atlanta, Mo, May 6. Secretary of Commerce Roper and Director of Air Commerce Eugene L. Vidal, in statements accompanying the accident report made public today, saild the violations “will be filed against the company.” Publication of the crash report, based on 907 pages of testimony from | 59 witnesses and weeks of intensive | investigation by Federal airline inspec- tors, came on the heels of Senate action calling for thorough investiga- tion by a Senate Committee of the crash and of the Bureau of Air Com- merce and other Federal agencies dealing with air transportation. “Weather Chief Cause.” “I am convinced,” Secretary Roper said, “that the accident was due chiefly to bad weather conditions. ‘The two pilots, Bolton and Greeson. | made everey possible effort to land their passengers safely, but were un-| able to do so because of the prevail- ing fog and darkness. “Contributory causes undoubtedly were inaccurate weather forecasts from both the United States Weather | Bureau and the company meteorolo- gist, given the crew at Albuquerque about 9 am. on May 5; improper | clearance by T. W. A. ground sonnel of the plane from Albuquerque; | improper control of the plane by the] same personnel after the depcrture‘ from Albuquerque; error on the part of the pilot in proceeding after he was unable to effectively communicate | with the ground, and failure of the| T. W. A. ground personnel at Kansas | City to expeditiously redispatch the | plane to a field where safe landing | might be effected.” ‘The regulations which were vio- lated were made effective as of Octo- | ber 1, 1934, Secretary Roper said, | and were supplied to the company in | November and printed by the com- pany in its manual, with the comment | on each page that they were approved by the Bureau of Air Commerce. The first regulation violated requires that when a first pilot has been ab- sent from an operating division of an airline for more than six months he shall obtain approval from the Bureau | of Air Commerce before returning to duty on that division. Pilot Harvey P. Bolton had served for nearly a year prior to the accident on the Kan- sas City-New York division and had not been approved for duty on the | Western division, Roper said. ,Examination Not Taken. “Pilot Bolton did not take the quar- terly medical examination during the month of February, 1935, as required by the regulations,” the Secretary re- ported. The third violation noted was that Copilot Kenneth H. Greeson did not | hold a Federal scheduled air transport rating, required® on runs involving more than eight hours of flying, The fourth violation cited was that the fuel tanks of the wrecked airplane contained only a 27-minute reserve fuel supply when the crash occurred, although Federal regulations require a 45-minute reserve. The fifth violation dealt with in- strument flying over or through: fog under certain conditions, one of which is that “two-way communica- tion is maintained with ground sta- tions.” “Official records,” Secretary Roper said, “show that the plane’s radio transmitter was not functioning on night frequency when the plane cleared Albuquerque and that the offi- cial weather forecast indicated that instrument flying would be required along the route.” In his statement accompanying tne report Director Vidal declared that “company personnel initiated or per- mitted certain irregularities which were inexcusable, were violations or regulations and automatically will be treated as such.” | WEATHER REPORTS BLAMED. NEW YORK, June 14 () —Jack Prye, president of Transcontinental and Western Air, defended the equip- ment of the air liner which crashed near Macon, Mo., May 6, and the plane and attributed the accident | POSTMAN PAYS PENALTY ‘IN GUN SLAYING OF SIX By the Associated Press. QUEBEC, June 14. deau, 40-year-old former postal carrier, was hanged | be paid into and SECURITY PASSAGE LIKELY NEXT WEEK Senator Hastings Charges Bill Discriminates Against Youth. BY J. A. O'LEARY. Passage of the social security bill by the Senate early ext week, probably Tuesday, appeared likely as debate on the administration’s measure got un- der way this aft>rnoon, with Senator Hastings, Republican, of Delaware contending the compulsory old-age STATE JOB-RELIEF MEETING CALLED Hopkins Will Meet Monday With Administrators to Map Plans. By the Associated Press. With Harry L. Hopkins- expressing hope that the work-relief program will begin to produce jobs in sub- stantial numbers during July, State | works progress administrators will | assemble here Monday to discuss ways of reaching this goal. pension feature discriminates in favor of those near ih2 retirement age and against the younger generation. Taking the ficor after Chairman Harrison of the Finance Committee nad explained details of the oill and urged early action, Hastings gave illustrations to show how muca would rawn out of the old-age fund by those who are within 5 or 10 years of retirement, as com- pared with young men just beg'nning to work. “I am citing these cases only to show that the way you make up for the older man of today is by punishing the youth of the Nation,” Hastings sald. Challenged By La Follette. This argument was quickly chal- lenged by Senator La Follette, Wis- consin Progressive, who replied: “The shedding of tears about the burden placed on the youth can be largely forgotten when you remember that without this plan the youth of | the country usually have to carry this whole burden without any assistance.” | ,Declaring that the developiuent of industrial civilization has presented the “pressing problems which tiis leg- islation seeks partly to meet.” rison summed up his' plea for early passage as follows: “It deals with matters which other countries have already dealt w'th and from whose experience we csn be guiced. It will not commence with unwise speed, Lut rawer will be a | gradual development, proceeding care- fully and surely for the goal which is now far distant. Further study. be- yond that already given, would us little, and ihe need for deay in this legislation does not exist, as the provisions of the mezsure itself pro- | vide for no hasty action which might have a retarding effect upon recovery.” Hastings regards the compulsory old-age annuity and unemployment insurance plans as unconstitutional There are also pending a series of other amendments, indicating there will be considerable discussion before the bill is brought to a vote. Harrison explained the essential features of the program, which in- cludes: Three distinct plans for pro- viding assistance in old age, unemploy- ment insurance and Federal grants to the States in pensioning needy blind persons, home care for dependent chil- dren. maternal and child welfare ac- tivities, help for crippled children and public health gencrally. Direct Grants to States. The first old-age pension section makes direct Federal grants to the States to aid in paying monthly gratuities to old persons who, because | of age, will not be able to build up their own old-age reserves. The Federal Government would match State pensions of this kind up to $15. In other words, Uncle Sam would | pay $15 toward a $30 pension, with the State free to pay as much more as it desires. ‘The second old-age plan is in- tended to enable employes and em- ployers to build up, through a joint tax, & fund to pay retirement an- nuities to those still at work. This plan would begin to operate in 1942, to enable employed workers to retire at 65 on an annuity determined primarily on the basis of salary. The theory of the legislation is that, as the years go by and those now at work build up their pension reserves, there would be & corresponding re- | duction in the load the States now bear in paying gratuity pensions under the first plan. It is this sec- ond plan that Hastings will move to eliminate, but the administration leaders predict it will be retained in | the bill, The third old-age feature was added in the Senate Committee and is intended to allow farmers, profes- sional men and others not regularly employed in industry to purchase old- age annuity insurance bonds from the Treasury. A fight against this section is brewing in the Senate. Tax en Employers. ‘The unemployment insurance sec- | tion seeks to induce the States to enact such laws by levying a Federal pay roll tax on all employers of four or more persons and then allowing the employer to deduct contributions he is required to make under a State TRAFFIC TIPS by the NAMONAL SAFETY COUNCIL The “march of progress” that we used to read about, doesn't march anymore; it rides. The wheel 15 sym- bolic of ‘our times. The baby buggy starts us off, the auto keeps drivers on the move (and pedestrians ¢n the jump) and, finally, the black buggy carts us away on the last long jour- ney. The mind must keep up with the demands of the wheel age. As the tempo spegds up so must our mental processes be sharpened and sttuned. Observation, analysis and cecision must all be shoved up the scale a driver'’s seat is no place for the “wool-gatherer.” Alertness and con- centration are of supreme impartance. Successful driving today Is much ifke successful fire-fightirg. We must know exactly what to do and how to do it quickly. Har- | The State administrators are charged with aiding communities to | carry out small work projects. They | also are to keep tab on more am- | bitious enterprises undertaken by | States and Federal agencies. Few, if any, jobs for the destitute have been provided as yet under the $4,000,000,000 program, end leaders a ill debating what kind of proj- ‘ ects can be undertaken. | | Hopkins Seeks Useful Jobs. Hopkins, the works progress ad- ministrator, expressed confidence yes- terday that “useful projects, projects | with integrity,” will be possible. He said inexpensive work like building sewers and creating parks would bal- ance other ventures in which heav- ier expenditures for materials are required. Secretary Ickes, chairman of the Allotment Advisory Committee, said that except for reclamation work, low cost housing and public works al- lotments to States and communities, | it will be “pretty hard” to carry out projects requiring considerable steel, | cement, bricks or stone under the work-relief rules. “There won't be any more monu- mental projects like Boulder Dam or Grand Coulee,” Ickes asserted. Materials Cost to Be Shaved. He apparently referred to the fact | the Works Allotment Committee has instructed those framing work relief | proposals to keep material costs at & minimum. Unless this is done, com- | mitteemen said recently, the $4,000,- | 000,000 will not be sufficient to 1| President Roosevelt's deciared | tive of a year's work for 3,500,000 7 - | sons. | Applications for work relle’ .oney | continued to flow in tofl8y :th the War Department requestir 49,279,103 for 28 Army base eonst uction proj- ects in Indiansy Jowa, Kentucky, Lou- isiana, Main®, Maryland, Massachu- setts, Michigan, Nebraska and New Jersey. Another new batch of applications for 38 Army base projects to cost $12,- 914,625 was filed yesterday. This in- cluded $7.348,735 for construction projects in the District, and projects in Colorado, Delaware, Florida, Geor- gia and Illinois. (The list of District projects, includ- ing 83,397,634 for new buildings at the | Army Medical Center, will be found | on_Page B-1.) law, up to 90 per cent of the Fed- eral tax. As passed by the House, the bill required adoption of the State-wide system of pooling all employer con- tributions. Senator Harrison ex- plained in his opening speech that the Senate committee has allowed Stafes the option of adopting either the pool system, or the Wisconsin plan of permitting the individual em- | ployer to set-up reserves for unem- ployment payments to his own work- ers, Individual Plans Backed. Although States are allowed to adopt the individual company reserve plan of unemployment insurance, there is no provision in the bill as it came from committee by which the Social Security Board couid permit industries that have their own old- age retirement systems to adhere to those systems in preference to the national plan. Several Senators have indicated they are working on pro- posed amendments that would allow the board to make such exemptions, provided an individual plan is found | to be at least equal to or better than | the standards prescribed for the Na- tion-wide plan. The old-age annuities resulting | from the contributory tax would be based roughly on the amount of salary taxed, Harrison explained, but pro- vision is made for adding something | to the pensions in cases where a small salary or a short period of contribu- tion would result in a very small re- tirement allowance. Harrison de- | scribed the formula as follows: | “The annuity is $15 per month for the first $3,000 in salary for which tax has been paid before the employe reaches 65, plus about 83 cents per month for each additional thousand, up to $45,000, plus about 42 cents per | month for each thousand over $45,000, with the further provision that no pension may exceed $85 per month. Example Case. “For example, take the case of a | person whose average salary is $100 per month, retiring at the age of 65. | His monthly pension would be: “$17.50 where he paid taxes 5 years. “$22.50 where he paid taxes 10 years. “$42.50 years. “$42.50 years. “$51.25 | years.” With the self-supporting Federal system in existence, Harrison argued, |the cost by 1960 for State old-age gratuity pensions “would almost cer- tainly be less than $1,000,000,000. This system, therefore, would mean a sav- ing of over a billion dollars a year.” Pay Roll Tax Defended. In defense of the employers' pay roll tax which is intended te induce | the States to enact unemployment in- | surance laws, Harrison said individual States have hesitated to adopt unem- ployment insurance because it would place their industries at a disadvan- tage unless the other States had simi- lar laws. The unemployment in- surance pay roll tax would start at 1 per cent for 1936 (payable in Janu- ary, 1937); 2 per cent for the second year and 3 per cent thereafter. The contributory old-age annuity system and the unemployment insur- ance secilon are financed by these special taxes. The remainder of the social security program calls for Fed- eral grants to the States, with appro- priations for the first year as follows: Old-age assistance (to pension those ‘who are too old to join in the indus- trial contributory system), $49,750,- 000; for aid to dependent children, $24,750,000; maternal and child health, $3,800,000; for crippled chil- dren, $2,850,000; child welfare, $1.- 500,000; vocational rehabilitation, $841,000; public health, $8,000,000, and ald to the blind, $3,000,000. Schools Get Vacations. Expecting intense heat to follow the where he paid 20 where he paid 30 where he paid 40