Evening Star Newspaper, July 19, 1935, Page 5

PARADOX IS FOUND IN POWER BATTLE McNary, G. 0. P. Leader, Offers Bill to Carry Out Roosevelt Plan. By the Associated Press. A Capital still agitated by the power struggle found food for thought today in a situation which finds the Repub- lican leader of the Senate offering a bill to carry out ' a major phase of the Roosevelt power program. It was taken as a striking new indication that the electricity controversy— like so many other is- sues in recent years—is one on which neither party always lines up squarely, pro or con. ‘The setting was & White House conference at which Senator McNary of Oregon, the mi nority leader, agreed to introduce a bill providing for the administration | of the Bonneville Dam project in| Oregon and the sale of power gener- and there. Power Sale Under Fire. Sale of power under the Tennessee | Valley project has been one of the | chief focal points for attack on the | administration in the courts and from some political leaders. It had been hailed by Republicans of the more| Senator McNary, The Senate Lobby Committee pursued its inquiry into utilities lobbying today by calling two “higher- ups” in the Associated Gas & Electric Co. U. E. Beach of Ithaca, N. Y. (left), securities manager for A. G. E,, testified he had ordered the destruction of all the company's records pertaining to anti-utilities bill activities, William A. Hill of Boston. lawyerfor the company, told the committee the ultimate cost of the $700,000 cam- paign against the bill would be borne by the consumer. THE EVENING STAR, WASHINGTON, ~—Star Stafl Photos. Lobby (Continued Prom First Page) LOUISIANA TO SUE CHARGED BY LABOR Paper Claims Executives Assigned to Influence Congress Members. By the Associated Press. Chairman Black of the Senate Lobby Committee told newspaper men to- day he had discussed with Edward Keating. editor of Labor, charges by that paper that a railroad lobby had assigned a railroad official to each New York.member of Congress to “‘see that the member of Congress for whom he is responsible is kept under the proper ‘influence’ at all times.” Black, however, declined to discuss the charges. “Labor believes that the railroad lobby has perfected this astounding organization in every State,” the paper, publication of the standard brother- hoods, said in today’s issue. “However that may be, the evidence concerning | the State of New York is complete.” Full Disclosure Forecast. The paper said “in the course of time” the Lobby Committee “will reach the railroad lobby, and the whole amazing story of this monumental at- tempt to ‘mold public opinion’ will be | made a matter of record.” | It listed the members of Congress | and the railroads alleged to cover | them as follows: | Senators Copeland and Wagner— Pennsylvania. Districts 1 to 24, inclusive—Penn- sylvania. Millard—New York Central. Fish—New York Central. D. C, FRIDAY, JULY 19, 1935. Lady Baden-Powell, wife of Lord 4 P 7 Robert Baden-Powell, founder of the Boy Scouts, photographed as she inspected the national headquarters of the Girl Scouts here. —Underwood & Underwood. FOUNDER PREDICTS GREAT JAMBOREE Baden-Powell Lunches With Roosevelt and Leaves for England. Lord and Lady Baden-Powell rode the high zeas today confident the Boy Scout jamboree scheduled for ‘Washington next month will be the greatest thing of its kind ever held in the world. The peer, who founded the Scouts in 1908, just 10 years after he led his troops against the Boers in South Africa, 1s bound for Denmark, with first a short stop in his native Eng- land. He came to the United States from Australia. Before he and his lady left yes- terday by train for New York to catch their boat he greeted the press formally at Boy Scout headquarters, 1018 Vermont avenue, and hailed President Roosevelt, with whom he had just lunched. He said: “The President is an extraordinary fellow. He's a splendid example to | every boy everywhere. | “He's going to greet the 30,000 | boys who will be here for the jamboree | in his own back yard, as he calls the | grounds behind the White House. | “I told him I hoped he’d make a | better speech than President Coolidge did in 1926. { “‘What did President Coolidge say to the Scouts?” Mr. Roosevelt asked | me. | “‘Nothing,’ I replied.” The “show,” as his lordship refers | berg and the pilot, George Gruen, an | {0 the jamboree, will open August | official of the Parks Aircraft College, | 21 and continue until August 30. Lady Baden-Powell told a groun conservative kind as a promising cam- Goodwin—New York Central. paign issue for 1936, as an instance of Government competition with pri- vate business. In some respects the Bonneville project is similar to T. V. A., in oth- ers it is different. The Tennessee Valley experiment is a broad-scale plan for virtually rebuilding an en- tire section of the country. Bonne- ville is confined to navigation and power. But while soil erosion, fertilizer pro- duction, colonization and other col- lateral features of T. V. A. are absent from the Oregon program, its power angle closely parallels the situation in the Tennessee Valley. Power Is By-Product. In both cases dams were erected by the Federal Government as navi- gation aids, with power a by-product. A District Court held the sale of | power by the T. V. A. illegal, but| the decision recently was overruled by the Circuit Court of Appesls at New Orleans. The case is expected to go to the Supreme Court. McNary bas been an importand factor in development of the Bonne- ville Dam from the outset. He pre- vailed upon President Roosevelt to include the giant project in the orig- inal public works program authorized by Congress in 1933. 1 That law authorized construction of dams for contrel of floods and navigation, and for sale of surplus| power. The law did not, - however, | create an administrative agency to operate the projects after completion. This is the purpose of the new Mc- Nary bill. | Political Significance Denied. | Friends of the Republican leader said there was no political ggnm-i cance in his introduction of the bill. They pointed out that the authority for the sale of power was incorporated in the original public works act, and that the new legislation will merely | carry out that authority and fix rates for the sale of electricity. At the same time it was said Mc-| Nary has never been in the Repub- lican faction which has attacked the| sale of power in the Tennessee Val- ley. _He has consistently defended the Bonneville projct as sound from | & navigation standpoint and has re-| garded the power as only incidental. “The basis of this project,” McNary said today, “is navigation. Power, incidental thereto, is owned by the Government. The rates and charges &hall be fixed by the Federal Power Commission. The legislation is needed because Bonneville is a public works project and there is no authority for administration of the project or the Bxing of prices of the power.” ONLY 14 BANKS FAIL S0 FAR DURING 1935 Deposits of $2,700,000 Menaced | by Suspensions—Number Far Less Than in 1934. By the Associated Prefs. A Treasury survey disclosed today | enly 14 banks have been suspended during 1935. While no comparable figures for similar periods were avail- able, Government statisticians said this probably represents the lowest mortality rate since the World War. The 14 on the 1935 casualty list had deposits approximating $2,700,000. For 1934, 57 licensed banks, with deposits of nearly $37.000,000, were suspended, the smallest annual total in 14 years. Of the 4,500 banks, with deposits of some $4,200,000,000, which were not licensed to resume business after the banking holiday of March, 1933, only 68 had not been licensed or turned over to liquidators at the end of last May. No national banks are included among those remaining unlicensed. Two hundred and ninety institu- tions, with deposits of about $152,- 000,000, of the 1,417 unlicensed na- tional banks at the close of the bank- ing holiday have been placed in liqui- dation. F STREET BUILDING SOLD FOR $500,000 Largest Business Property Deal | in Several Years Is Announced. Sale of the business property at 1327-29 P street by G. F. Heilrpic, to an unnamed out-of-town buyer for more than $500,000 was an- nounced today by Shannon & Luchs, realtors. The sale was reported as the largest | promised to supply vouchers for the | | Herron, a Mr. Partridge of the A. E | O'Brien testified yesterday he or- | | who he was. copies at Washington or Buffalo if they wanted them, but not without authority of Mr. Beach,” the witness | testified. | Chairman Black repeatedly asked | O'Brien if he had nct agreed to get | bona fide signatures for the copies, | realizing it was imrossible to meet | | Representative Driscolis request as to | which messages had written or type- | written signatures fiom relay copies. “I said it was pussLle to gev bona fide signatures,” Le fnally conceded, “but we would have to get authority from Beach. I did nut agree to get| them. I had' no ini-test in restoring | | records.” | | He then told how te had discussed i the evidence heiore the committee | | with Hill and Heitoa. However, he | couldn’t remember if Hill said the | suggestion regarding 1estoring ibe de- | stroyed messages was & “bad 'ning.” O'Brien told briefly of a New| York meeting where, he said, regional | managers met Beach for instructions | {on the campaign against the public putility bill. i “What was the plan worked out?” Black asked. The Senator questioned | O’Brien more sharply than on his appearance yesterday. | | “The plan was,” O'Brien said, “to have employes assist in sending let- | ters and a few wires.” ! At that time, he said, there was no mention of the company paying | for the telegrams against the bill. | This authorization came later, he| added. | | He repeated yesterday's testimony | that he had spent about $4,800 in the | Erie district, and at Black's request | expenditures. Kept Records at Home. | O'Brien commented that he kept the records of these distursements | at home, not at the office. It immedi- ately brought on him a flood of ques- tions as to what other business he kept at home. He said he also kept at home copies of most of the telegrams sent from Erie. ¢ Questioned by Black again regard- ing a train conference from Philadel- phia to Washington at which he said committee evidence was discussed, | O’Brien testified that besides Hill and | G. New York office and Munsen and | Smith were present. “Did you discuss the difference be- tween ‘clearing out’ and ‘destroying’ records?” Black asked. “Not to my knowledge.” He finally agreed Hill had advised him to testify he instructed the Penn- sylvania district offices of the com- pany to “clear out” their files relating to the utility bill drive. dered Herron and other district offi- cials to “clear out” their records. It was later developed that Smith joined the party in Washington, but O'Brien said he was unable to explain “I would like to know myself,” O'Brien added. He said Smith came to the Wardman Park Hotel apartment which the group shares. He arrived soon after the party, including Hill, Herron and the others, reached the hotel Wednesday night and left shortly afterward. Herron Denies Presence. Here Herron was called to the stand and denied he was present when Hill | read the evidence. He said he glanced at a few pages of the testimony and then went to bed. He also denied dis- cussing the evidence yesterday morn- ing before breakfast. After telling of the midnight con- ference, Hill said he discussed oriefly at breakfast the next morning the question of “restoring” the records at the Warren office. He said he “just happened” to open the record of the first day’s lobby hearing at the point where Shew tol of discussing the restoration with C'Brien. “You just happened to open the book at that point?” Black asked with mock amazement. “That testimony wasn't important.” Hill said, “from my point of view. My instructions were to find out for the company just what had gone on.” “Beach told you he had directed ST N NSRS Progressive GRAHAM Dealers Hinson-Guest Motor Co. 314 Eye St. N.E. Sell and Rmm:;cnd HIGH SPEED MOTOR OILS and furnish purchasers of new GRAHAM free of charge WAVERLY 30,000-MILE GUARANTEE OIL BONDS Here's J. A. Pisher, suspended Western Union manager at Wi ren, Pa., whose testimony Tuesday before the Senate Lobby Committee contained the first revelation that many “fake” telegrams opposing the utilities bill had been sent to members of Congress and copies of the telegrams later burned. —Wide World Photo. destruction of the company records, didn’t he?” Black asked. He said he learned this from Beach when he arrived in Washington. “Did you discuss with O'Brien the restoration of the record telegrams?” “Not so much as with Herron.” “You asked him what had been cone?” “T didn't have to. without asking.” Legal Work for Firm. At the start of his testimony Hill explained he had done legal work for the Associated and its sub- sidiaries, principally in the New Eng- land district, where a subsidiary holding company, the New England Gas & Electric Association, operated. He said he “just came down to get He told 1t to me the facts” and not to advise company | witnesses except to “tell the truth.” “I wasn't in any sense dictating to them what to testify,” he asserted. Asked about holding company profits, Hill agreed some showed large earnings “if you take a basis that no financial statistical service would use.” He didn’t know how much A. G. E. got from its operating companies, but said there were some ‘“management contracts” on a basis of 214 per cent of gross income of subsidiaries. He said no representative of A. G. E. appeared before the Senate Inter- state Commerce Committee on the utility bill, that it had asked for time but had not been allotted any by the Public Utility Executives' Committee headed by Philip H. Gadsden of Phil- adelphia. Hill conceded a conflict in his testi- mony in saying at first he did not know what Smith did and later said he was an A. G. E. attorney. He added he had no intention to “evade” questions, though at the out- set he called Smith only a social acquaintance. Before today’s hearing began, Chairman Black sent investigators to New York to search the A. G. E. files and check on the company’s state- ment that it had spent $700,000 to The City Bank Personal Loan Plan Consolidates Debis and Provides Vacation Money, ete. A Whole Year to Pay! ‘Whether we invite TOHALT SPENDING Long Reveals Plans as He| | Opens Fire on Admin- istration Again. | By the Associated Press. | Senator Long, Democrat, of Louis- | jana today served notice on the | | administration that a suit would be | filed in the Supreme Court to test the right of the Pederal Government to enter into States with educational | and other bureaus for expenditure of | |P. W. A. money without consent of | the State. Taking the floor during debate on |the A. A. A bill, Long referred to | | news reports saying his State had been denied further P. W. A. grants, and | commented it served to let the anti- | Long members of Congress from that | same State know they would not “get | | their 30 pieces of silver.” i A packed gallery had waited for more than an hour to hear him speak. | | After a brief discussion of the an-| | nouncement that Louisiana wouid re- ceive no further P. W. A. grants be-| cause of recently-enacted State laws, | | Long said: | Challenges Autherity. | “I have been advised that Louisian: | will file a suit in the Supreme Court: | which it will win—to contest the right of the Federal Government to set uj | boards within a State without i | consent.” | " He said the agencies for spending| Federal funds were “without any con- | | stitutional authority.” | The stoppage of public works money in Louisiana was announced yesterday by Ickes as a follow-up to a press con- ference remark by the President that | | the expenditure was under question be- cause of supervisory boards set up by the Louisiana Legislature. | Issue Clarified. | Ickes said that previously allotted | funds would be held up until the iaws were repealed, and that no new appli- cations would be received. The political situation in Louisiana has evolved into a straight Long- versus-Roosevelt issue. Anti-Long leaders have been working toward set- ting up a “For Roosevelt” ticket in the State election next January. —————————— fight the compulsory abolition of cer- tain utility holding companies. | “If all the papers have been de- | stroyed, as indicated in the investiga- tion,” Black said, “it may be impos- sible to show how much they actually did spend. Nobody would know whether it was $700,000 or $5,000,000.” | Black has indicated a belief other records besides those telling of the fight conducted from Pennsylvania| against the utilities bill may have been destroyed. “It would be a strange thing,” he said, “if Beach gave orders to destroy records in only one State and not to those in all 26 States in which they | do business.” Meanwhile, the committee has not yet received any testimony as to just who burned the anti-utility il tele- grams after they were sent from a Western Union office at Warren. Herron has denled it, as have other | witnesses. Representative Young, Democrat, of Ohio, said today that hundreds of let- ters opposing the Wheeler-Rayburn bill “Were very obviously typed in the offices of the Dayton Power & Light Co. and in other public utility offices.” This statement was made in a letter | to Chairman O'Connor of the House | Rules Committee, which also has been investigating lobbying on the utilitles i bill. . you are a depositor, or not . you to apply for a personal loan 1o take care of your obligations. You may obtain $120 or more without collateral . . . only two our six details. co-makers necessary. Visit any of convenient offices for complete Corning—New York Central. Thomas—Delaware & Hudson. Crowther—Fonda, Johnstown & Gloversville. Snell—Delaware & Hudson, Culkin—New York Central, Sisson—New York Central. Lord—Delaware, Lackawanna Western. Hancock—Delaware, Lackawanna & Western. ‘Taber—Lehigh Valley. Cole—Lehigh Valley. Duffy—New York Central. Wadsworth—New York Central. Andrews—New York Central. Beiter—New York Central. Mead—New York Central. Reed—Erie. Absolves Members of Congress. “Labor wishes to make it clear,” it | said, “that in presenting the facts| | concerning the raflroad lobby's work | it wasn't the slightest disposition to | reflect on the integrity of any mem- | ber of Congress from New York. “It knows that many of the mem- bers who are being subjected to the espionage system set up by the lobby are above suspicion. any of them probably haven't the slightest idea that prominent railroad officials have been relieved from duties, for which, in many in- | stances, they are paid handsome sal arfes, in order that they may devote | their talents and energies to the job | of inducing the lawmakers to vote for what the railroads want and to vote against what they do not want.” & .[EN MUDE[ PI_ANE | St. Louis, Mo., are Richard Korda of | | Cleveland and Vernon Boehle and WINERS LY HERE Champion Builders of Tiny| Craft Will Be Feted by i Association. | Ten champions of national model airplane construction will be feted in | Washington today and tomorrow as guests of the National Aeronautic As- sociation. { Four of them from the Middle West were to arrive at 2 p.m. today on the Lockheed Vega plane in which Amelia | Earhart Putnam made her record-| bresking flight in 1929. They will meet six other national contest win- ners at the municipal airport and | spend two days seeing the sights of | the Capital and swapping experiences of their craft. Among them is Karl Goldberg, 23, of Chicago, who constructed a plane with a 30-inch wing spread which weighed approximately one-tenth of an ounce. | His plane, an indoor stick model, | was adjudged the best in its class at | the N. A. A. contest in St. Louis last month. Driven by a thin rubber band for a motor. it flew continuously for 23 minutes and 29 seconds. Traveling in the plane with Gold- Open All Day Saturday HAHN SPECIALS SPORT SHOES MUCH REDUCED Even Genuine China Entire stock at slashed prices other event in Hahn's Rebuilding FLORSHE Quick! There’s no time lose! reduced! Genuine for Fall. Every shoe in stock white buck.” Many leading styles Buckskin included! . an. le! IM SALE to A Few Styles 195 Men's Shops 1ith & 6 7th & h 212 Lith of Girl Guides, whom she heads, what their sister Guides in China, Eng- land and Australia did about making better girls of themselves. Kenneth Ernst of Indianapolis. The other national champions include Bronik Soroka. Cleveland, Ohio; Louis Casale, Syracuse, N. Y.; Bruno Marchi and Torrey L. Capo, Boston, Mass. Leo Weiss, Newark, , and John S. : 3 ENVOYS CONFIRMED Stokes, jr., Philadelphia, Pa. All are bringing their best models,| The Senate yesterday confirmed the demonstrating the types with which nomination of Hoffman Philip of New they won championships in St. Louis. | York as Ambassador to Chile. ER | ‘The nominations of Anthony J. Wrestling Ban Talked | Drexel Biddle, jr., of Philadelphia as resting Ban lalked. Minister to Norway and Lester A. Wal- Sunday wrestling matches may be ton as Minister to Liberia also were banned in England. confirmed. 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Corner F St. at 9th.