Evening Star Newspaper, October 25, 1935, Page 2

A—2 #» THE EVENI PEDESTRIAN LIGHT TEST 1S ORDERED Special Signals to Be In- stalled at Fourteenth and - E Streets Corners. Hoping to persuade pedestrians to fl'os‘s)p intersections only when they have the “go” signal, the Commis- sioners today ordered installation of special pedestrian signal lights at all corners of the intersection of Four- teenth and E streets as an experi- ment. At the same time the city heads adopted an opinion by Corporation Counsel Prettyman holding that they do not have authority to install +parkometers” along the curbs of Dis- trict streets for the collection of fees from motorists for the ‘“renting” of | ing space along the public hifh- The green traffic light signal for pedestrians was ordered subjected to the experiment on recommendation of | Traffic Director Van Duzer, who re-| cently championed the proposal for | pedestrian control. That suggestion is being studied by Prettyman at request of the Commissioners. The move to- day was regarded as a step in keeping | with Van Duzer’s plan for a system of | protecting pedestrians from their own | mistakes. | The “parkometer” plan was referred | to Prettyman recently when a come | pany offered to install machines here | ‘which uld belong to the District | after their cost had been collected | out of proposed parking fees. The plan was to install machines at every | avallable parking space. When the driver deposited a coin in the ma- chine a flag would be raised indicat- ing he had rented the space for a certain time. | Prettyman found that where the Commissioners have rented public | space, such as vaults under streets| and sidewalks they have done so un- der specific acts of Congress. He told the Commissioners the law does not permit them to mark off the streets and charge for parking in such places, or to erect “parkometers” | or any similar device. The city heads thereupon dropped the matter. B INVENTOR BURNED IN DEMONSTRATION Combined Automobile - Boat - Air- | plane Catches Fire on Library Lawn. Constantinos Vlachos, 38, self-styled inventor, narrowly escaped death in| one of his own contraptions today when a combined automobile-boat- eirplane caught fire as he was staging | & demonstration on the lawn of the | What’s What Behind News In Capital New Home Building Drive Is Mapped For Roosevelt. BY PAUL MALLON. The basis for an extensive residen- tial bullding campaign has been placed on President Roosevelt's desk, or nearby. It is in the form of a confi- assoclates. They are the New York real estate experts imported into the ‘Treasury Department to plan some- thing big on housing. Mr. Grimm has been prying quietly into local conditions in the area east of the Mississippi and has found that existing housing facilities are 96 to 98 per cent occupled. Or, as a real estate expert always puts it, vacancies are 2 to 4 per cent. This is a rather surprising figure because normal vacancies generally amount to about 10 per cent. It means time is ripening for a housing boom. Rent Increase Forecast. Mr. Grimm and Co. are supposed | to take the view that the boom is certain within three years, but that a more deplorable trend will come first. They foresee a perpendicular rise in rents. This, they say, has already started, imperceptibly. What they mean by imperceptibly is that residential rentals are now tending to slide up 5 to 10 per cent above last year. LooKs UIKE ANOTHER ALTITUDE 8 The boom, as they see it, will cause a spiral cycle on building which will last a few years, until the country is again overbuilt, Then will come another depres= sion, lasting until the country again catches up with the builders. This is inevifable, they say, but a | swift start now on a Federal housing | promotion campaign may take alti- | tude from the spiral and level it off | somewhat. Apparently no new Fed- eral agencies are needed, in thelir opinion. What they want to do is| to create a home-building urge among | the people. Home-building shows will be opened in large cities around the first of the year. These will be held in armories, etc., will display model homes, fine, modern home-building equipment, incite the housewife to prod the husband into building a home of their own. Mr. Grimm and company think it | can be done. Gongressional Library. Vlachos’ head, shoulders and hands | were burned when an umbrella-like | Tig on top of his craft burst into flams He was taken to Casualty Hospital, ‘where his condition was not believed Berious. Viachos, who lives at 1007 Twelfth street, called his invention a “tri- phibiam.” According to his wife, who witnessed the disastrous demonstration, the craft has never been off the ground. The body of Vlachos’ invention is similar to the carriage of a motor cycle side car, with rubber tires and bicycle wheels. The overhead arrangement apparently was constructed of some highly inflammable material, according to the speed with which it was con- sumed by the fire. —_— GREEK LEADER HELD UNDER SURVEILLANCE XKondylis Government Denies Re- bellion Reports—Ships De« layed by Strike. By the Associated Press. ATHENS, October 25.—George Pap- enbreu, leader of the United Demo- cratic party, was held under pullce‘ surveillance in his hotel today al- though the government officially de- nied reports of a rebellion. Premier George Kondylis said that everything was quiet. Athens was calm. British tourists coming to Athens this morning from Crete repomed‘ their ship had been delayed on sail- | ing by a strike of longshoremen, but that otherwise they were not dis- turbed. (In Paris, the newspaper Midl re- ported that the Athens government had oredered three destroyers and 2,000 soldiers to Crete, where, it stated, 30,000 Republicans were under arms | in a rebellion. The newspaper said 450 Republicans had been arrested in | Athens.) Papandreu was arrested last night on a charge of circulating manifestoes | @gainst the Kondylis regime, Irvin S. Cobb Says: Borah Would Be Hope- less As Candidate To Any Party Bosses. SANTA MONICA, Calif, October 25 (N.AN.A)—BIll Allen White says Senator Borah is good presidential timber. Well, the Republicans might go further and fare worse—they prob- ably will Once I was sure most of the smart tricksters were naturally Republicans, Just as most of the honest idiots were naturally Democratic. Lately, though, the Republicans have borrowed many of the sterling half-witted tactics of the opposition. Where there’s a choice of two ends, they'll take both. Besides, to any set of party bosses, Borah, as a candidate, would be ab- solutely hopeless. He makes up his own mind, instead of sending it to some reliable Old Guard laundry. He says what he believes. He believes what he says. When he talks, he talks about issues, not about Borah. ‘Whereas, the average aspirant’s speech-making is so full of empty platitudes apd the capital I's come 50 close togéther, all I can think of is a picket fence around a vacant lot. If you're looking for Borah's proto- type in the other camp, ask the bell- hop to page Carter Glass. He'll prob- ably be found in the subcellar. He was there at last accounts, catching Still Clashes With Ickes. Mr. Grimm has applied foot-ease to | | all the toes he stepped on around here | at first; that is, all except one. His | troubles with Secretary Ickes still con- | | tinue. But then, Mr. Ickes has al- | ways been another government in & | different country. He is sticking to | his low-cost housing ideas, which put | the Government in direct competition | with what Mr. Grimm has in mind. When Mr. Grimm talks housing, he means homes costing from | $2500 to 87,500, privately bduilt. | When Mr. Ickes talks of housing, he means Government-built homes which he erpected to build for around $2,500, but which are cost- ing about $5.937. That clash will never end. No one, in the New Deal or out, has ever been able to do much about Mr. Ickes. So many enthusiastic housing ef- | forts have been made and have failed to justify either the enthusiasm or the | money spent on them that Mr. Grimm’s enthusiasm will also be sub- jected to skeptical analysis. Howe- ever, the real estate picture is un- questionably clearing up. Not only the Home Owners’ Loan Corp., but the farm mortgage unit will go on a self- liquidating basis next year. Only thq last dregs of emergency mortgage re- lief demand now remain. Applications | for farm mortgage help are supposed to have dropped lately to 30 a day, as compared with a peak of 17,000 | The population is not increasing much, but the marriage rate has picked up. Also there is a tendency of families to get away from the dou- bling-up, trebling and quadrupling noticeable during the depression, The wise man will build as soon as he can, before new activity swings building costs higher. Johnson Is Loose Again. What the New Dealers would like to find out is what Gen. Johnson is up to. His latest magazine piece ac- cused the President of turning the New Deal into a refuge camp for radicals in no friendly terms. They do mot knmow whether it means that the Baruch-Johnson- Peek-Moley wing of presidential advisers is getting ready to walk out or whether Johnson is cam= paigning for the Democratic nomie nation for himself or for some one like Al Smith, The solution might be simple if the insiders did not know that, every once in a while, President Roosevelt permits attacks on himself from friends in order to prepare the way for changes in policy. He has been known to have encouraged antago~ nistic speeches and articles as psycho- logical justifications for starting a new trend. For that reason there is considera- ble wonder whether the heads of a few left-wingers may be abdut to fall. (Copyright. 1935.) — BINGHAM AT RITES Ambassador Attends Henderson Service at Westminster Abbey. LONDON, October 25 (#).—Ameri- can Ambassador Robert W. Bingham represented the United States at a memorial service today for Arthur Henderson, former .president of the World Disarmament Conference, who died October 20. 4 The ceremony, held at Westminster Abbey, was attended by Joseph A. C. Avenol, secretary general of the League of Nations, and many diplo- up with his sulking. PyFight. 1935. b erican (o Te R wtoani Auiance. 1o ™ 1] mats, peers and labor officials, as well as representatives of King George dential report from Peter Grimm and |- here as Capt. Earl team schools Masquerade for Perfect co-ordination between horse and rider is shown F. Thompson of the Uniti States Army the international matches in which Uncle Sam’s officers face the Chilean Army in the Inter- American Horse Show, to be held tomorrow, Sunday and Mon- day afternoans in Rock Creek Park, at Chevy Chase, Ma. MASQUERADE FOLDS UP HIS LEGS AS HE LEAVES THE GROUND, THE RIDER GOING FORWARD TO ASSIST HIS MOUNT. FOR HORSE SHOW Brilliant Program Planned " for International Here Saturday. While the principal interest in the inter-American horse show and exhi- bition centers around the international military and civillan jumping classes, a brilliant program of supporting events has been arranged by officials of the three-day meet that is to open here on Saturday afternoon. Among the more outstanding of these will be exhibitions of high school horses now in training for the 1936 Olympic games and fencing and rid- ing competitions between officers who are drilling at Fort Belvoir, Va, for the modern pentathlon events to be held during the Olympics at Berlin next year. In addition, there will be exhibitions of the Riding and Hunt Club and Red- land Hunt hounds and a number of classes for a selected number of the best hunters and hunt teams in this section of the United States. Colorful Ceremonies Arranged. Col. Charles L. Scott, chairman of the committee, also has arranged for colorful nilitary ceremonies marking the opening and close of each day's program. The show is to take place in Rock Creek Park at Chevy Chase, Md,, if fair weather prevails, and in the Fort Myer Riding Hall if the weather is inclement. The exhibition of the high school or dressage horses, which are trained to the point where they can be con- trolled entirely by the subtle use of the hands, weight and legs, will be Kans., to meet the Chilean team in the military events. Lieuts. George L. Eastman, Alfred D. Starbird, Charles A. Symorski and Brookner Brady the United States Olympic modern pentathlon team, whilesLieuts. Rich- ard W. Mayo, Clayton J. Mansfleld, Brady, Morris O.*Edwards, Prederick W. Weber, Charles F. Leonard and Eastman will take part in the fencing competitions. Cavalry and the mounted band of the 3d Cavalry will stage the opening and closing ceremonies each afternoon. Hazen to Receive Standards, hour. LANDING. WOMAN IN FATAL CRASH TAKES POISON Mrs. Doris Martin, 25, who was riding with Carl Ramstad, 40, taxi driver, when he was killed in a three- car crash on Arlington Memorial Bridge Saturday night, was in a crit- ical condition at Emergency Hospital today after taking poison in her apartment at 2305 Eighteenth street. Sheleltlnmtorhermo:m.urs. Frances Shake of Camden, N. J., de- claring her act was due 1o grief over Ramstad’s death. Mrs. Martin was only slightly injured in the accident and testified at the inquest Wednes- day when a coroner’s jury held the hacker’s death was due to his own negligence. Mrs. Sarah E. Wrenn, manager of the apartment house where Mrs. Mer- tin lived, asked the young woman terday if she intended to continue her residence there. Mrs. Martin said she would give her answer in Mrs. Wrenn later Martin’s apartment and the bath room floor, & bottle of poison SAILING OVER THE DIFFICULT 5.FOOT LOG AFTER CLEARING RIDER RETURNING TO THE SADDLE TO AID HIS HORSE IN BARRIER. THE FENCE AND THE THE LANDING NEGOTIATED, MASQUERADE FALLS BACK INTO STRIDE AND PREPARES TO APPROACH NEXT FENCE. —High-Speed Photos by Baker, Star Staff. KLONDIKE VETERAN, 68, RETIRED BY U. S. Thomas C. Farrow, veteran of the Klondike gold rush, will retire tomor= row after 37 years’ service in the adjutant general’s office, War Depart- ment. He will be 68 on October 30. Farrow, who lives at 3518 Park place, returned to the States after & vain search for gold and accepted an appointment in the adjutant general’s office. He had gone to the Klondike after leaving the Army in 1897. Dur- ing his service career he served with the famous 4th and 5th Cavalry Regi- ments in the Western Indian hostili- ties. Born in England, he came to this country in his youth. For many years he.was in charge of the returns sec- tion at the War Department. Brig. Gen. Edward T. Conley will preside at the retirement ceremonies tomorrow. Gen. Conley is acting ad- jutant general. Farrow will be pre- sented with gifts by fellow employes. T Rallways of England have sdded 8,750 employss in the last 13 months. 4 District Commissioner Melvin C. Ha- | zen, president of the show, will receive | the presentation of the standards on Saturday, while the Chilean Am- bassador, Senor Don Manuel Trucco, | accompanied by his three dauchters and niece, will be the guests of honor | and receive the salutes of the teams | in the international jumping class. The guests of honor on Sunday will be Maj. Gen. and Mrs. Albert J. Boley. | Gen. Boley is commanding general of | On Monday the | the 3d Corps Area. acting Secretary of War, Harry E. | Woodring, will be the guest of honor -and receive the salutes of the Chilean | and United States teams. Col. Henry | L. Stimson, former Secretary of State and president of the Riding and Hunt Club, will present the trophy to the winning team. | Ofcers who will represent the | United States brought 14 horses with them from Fort Riley, while the down from Governor's Island, N. Y., where it has been training. Mrs. John Hay Whitney of Upperville, Va., will exhibit eight of her famous hunters and jumpers. Many other well-known exhibitors | are to take part in the meet. A total of 55 horses have been entered in the show. The entries number more than 200. Rose Ban Applied. Cultivation of white roses, which yleld half as much rose oil as the red variety, is to be banned in Bulgaria. ‘The Occident. | | | | I | i | | | | | 1 | | | | | | | CAP | Small South American rodent. ' | PETAL A little loose flap. | | | i | 1 | | 1 | | 1 | | AUBURN BUICK CADILLAC CHEVROLET CHRYSLER DE SOTO The first puzzle appeared October 28. Previous puzzles may be studied ‘The Star. given by Maj. Hiram E. Tuttle of the | United States Army team, which ar-| rived here last night from Fort Riley, | will participate in | the jumping contests to be held by | ‘The machine gun troop of the 10th | (G STAR, WASHINGTON, D. C., FRIDAY, OCTOBER 25, 1935. Up and Over With the Army MANY S“]E EVENIS Roosevelt’s A. A, A. Statement GUVERNMENT H[l_[] . ‘The text of President Roosevelt's statement today, in which he revealed his plan to point the farm program away from an “emergency” application to & “long-term” plan, follows: In May, 1933, Congress enacted the agricultural adjustment act, which was designed tc relieve the distress then prevalent among farmers. Since that time several mil- lion producers have joined whole~ heartedly with the Agricultural Ad- justment Administration in fare reaching adjustment programs, 1 wish to pay tribute to the courage and perseverance With which these farmers, using the facilities made available by Con- gress, have fought their way out of the acute depression which en- gulfed them in 1932. They have been patient in the face of delay, tolerant of a host of irritations and undeterred by opposition because they knew they could never win except through co-operation on a national scale. The first opportunity farmers ever had to work together on such a scale was afforded by the adjustment act. The achievements of the A. A. A, for agriculture are apparent to mil- lions of farmers. The improved demand for city-made goods re- sulting from increasing farm buying power is reflected in better business in towns and industrial centers everywhere. The adjustment act has served the national welfare. There are people in this country who can see no room for further progress in agricultural adjustment. Of these, some would be content to continue the adjustment programs exactly as they are. There are even & few supporters of the A. A. A. s0 well satisfied with what has been done that they would like to call the job complete and finished. “More Permanent Plan.” But it never was the idea of the men who framed the act, of those in Congress who revised it, nor of Henry Wallace nor Chester Davis that the Agricultural Adjustment Administration should be either a mere emergency operation or & static agency. It was their intention—as it is mine—to pass from the purely emergency phases necessitated by & grave national crisis to a long- time. more permanent plan for American agriculture. Such a long-time program is de- veloping naturally out of the pres- ent adjustment efforts. As I see it, this program has two principal objectives: Chilean army team has brought nine | | First, to carry out the declared | policy of Congress to maintain and | increase the gains thus far made, | thereby avoiding the danger of a | slump back into the conditions brought about by our national neglect of agriculture. Second, to broaden present ad- justment operations so as to give farmers increasing incentives for conservation and efficient use of the Nation's soil resources. Simplification of present pro- grams, with a view to increased flexibility, would readily lend itself to the broad objectives outlined. Decentralization of machinery to | get more efficlent administration closer to the farmers already has begun and will be vigorously con- | tinued. To simplify administra- tion the A. A. A. will work toward the objective of one contract per | farm. The modifications planned, n addition to making administra- tion easier, will facilitate produc- tion adjustment either vpward or downward. May Increase Production. The time may come when the A. A. A. will prove as important in stimulating certain kinds of pro- duction as it has been in remov- ing recent burdensome surpluses. For example, an expanded produc- | tion of hogs, to replace shortages AUTO SHOW PUZZLE CONTEST THIS IS PUZZLE NO. 18, Used to raise dough. ©One or the other. Add a letter to each word shown in the left-hand column and rearrange the letters to spell a word for which the defnition is given. Insert the new word below the definition and place the added letter in the last column oppo- site the new word. If the puzzle is solved correctly, the added letters will spell the trade name of one of the twenty-one (21) automobiles shown in the list below, to be exhibited at the Sixteenth Annual Automobile Show of Wash- ington, D. C., from November 2 to November 9, 1935, inclusive, at the Calvert Exhibit Hall, 2601 Calvert street northwest, opposite Hotel Shoreham, under the auspices of Washington Automotive Trade Association, who, with the co-operation of The Star, is conducting this contest. LINCOLN PONTIAC PLYMOUTH 8. The last will be published October in the files in the Business Office of Solve each puzzle, and not earlier than October 29, but not later than midnight, October 30, send all of the solutions with a reason of not more than twenty (20) words “As to Why an Automobile Show Should Be Held in Washington, D. C.” to the Washington Automotive Trade Association, 1427 I street northwest, Washington, D. C. It is not necessary to send in the actual puzzles, but it is compulsory that the entries show the new words. or published, and no entries will be returned. The new words will not be given out * Officials of the Washington Automotive Trade Association, whose de- cisions will be final, will act as judges, and based on correctness, neatness and manner in which the solutions are submitted, as well as the reason for holding an Annual Automobile Show, will award prizes totaling $100 and 100 tickets to the Automobile Show, as follows: First prize, $50 and 12 tickets; second prise, $25 and 8 tickets; third prize, $10 and 6 tickets and 25 prizes of 3 tickets each. In case of ties duplicatz prizes will be awarded. Winners will be anrounced in the Automobile Show Section of The Sunday Star on November 3, 1935. Questions should be addressed to Wash- ington Automotive Trade Association, D QG v 1427 I street northwest, Washington, 4 President Reveals Desire to Convert Emergency Program Into Permanent Plan. caused by drought, is contemplated under the proposed new corn-hog program, which is put up to a dee cision of producers in a Natione wide referendum tomorrow. * Present and future production of supplies of food and fiber ample for this country’s and for available export markets is a sound objective. However, there was nothing sound in the situation in the past when, spurred by ruin- ously low prices, farmers have been compelled to mipe their soil of its fertility by overintensive cultivation in a race to make up in volume what they had lost in unit price. This has resulted in waste on a colossal scale. Dust- storms and mud-laden streams have been symbols of this exploi- tation. Tens of millions of acres have been abandoned because of erosion. This jeopardizes both consumer and producer. Real damage to the consumer does not result from moderate increases in food prices, but from the collapse of farm in- come so drastic as to compel ruth- less depletion of sofl. That is the real menace to the Nation's future food supply. That has caused farmers to lose their homes. It has hastened the spread of tenacy. It les at the root of many serious economic and social problems be- setting agriculture. Important Gains Cited. Already the adjustment programs have made important gains in con- servation and restoration of soil fertility. Many millions of acres which farmers have signed con- tracts to divert from surplus pro- duction are being devoted to legumes, pastures, hay'and other crops which fertilize the soil and protect it from blowing and wash- ing. The long-time and more perma- nent adjustment program will pro- vide positive incentives for soil conservation. The benefit pay- ments can be made on a basis that will encourage individual farmers to adopt sound farm management, crop rotation and soil conservation methods. The crop insurance fea- ture afforded by benefit payments will help farmers to maintain these beneficial systems of farming with- out interruption in poor crop years. Long-time adjustments can be adapted to natural soil advantages of regions and localities. Already the adjustment administration has under way local studies to help in working out farm programs on a county basis, s0 as to fit the best permanent use of the varying soil resources of the country up to that county’s share of available domes- tic and foreign markets. Thus, plans are being worked out that should encourage widespread co- operation of farmers in a perma- nent national soil-maintenance program. The simplified and more flex- fble adjustment program of the future can be made to serve the permanent advantage of producer and consumer. It can iron out the succession of extreme shortages which in the past have alternately wrecked farm income and penal- ized city people with too high prices. It can protect the Nation's heritage of soil, help farmers to produce up to the full possibilities of profitable export and give this country the safest possible assur- ance of abundant food in the years to come. I can think of nothing - more important to the permanent welfare of the Nation than long-time agricultural ad- justment carried out along the<e lines. MISS DOROTHY DETZER TO DISCUSS WAR CRISIS Executive Secretary of League for Peace to Speak at Friends Meeting House. Miss Dorothy Detzer, national executive secretary of the Women's International League for Peace and Freedom, who recently returned from an extended trip through Europe. will discuss the war crisis at the Friends Meeting House, 2111 Fiorida avenue, Monday, at 8 pm. Miss Detzer attended the meetings of the September council and &ssem- bly at Geneva and before coming back to the United States made a speaking trip through the imdustrial centers of England. Sunday —in— The Feature Section \ us Tax LLECTOR 7, \ “U. S. Takes Million Yearly From Ex-Bootleggers” Here's the story of a branch of the Department of Justice headed by Joseph Lawrence that has been quietly doing a million-dollar business annually for Uncle Sam. s oo e “Forgotten Man of the Navy” Navy day brings up an old dispute as the ghost of Esek Hopkins rises to add further complexity to the controversy over honors due Jones and Barry. s e e “Capital’s Ghosts Walk Anew on Halloween Eve” Houses built by George Wash- ington among the first reported haunted in a city rich in lore of spooks. CRCEE I These and other features will be ready for you The Sunday Htar RAIL DRAWBACK Plight of New Haven De- clared to Stress Serious- ness of Conditions. BY DAVID LAWRENCE. The plight of the New Haven Rail- road, which has occupied public attention this week, has served to draw attention to the fact American rallroads are worse off in 1935 than they were in 1934; in fact, they are slipping back to a conditicn come parable to 1932, the depth of the de- pression. And all this in spite of the fact total operating income for the first eight months of 1935 was greater than for the corresponding months of any year since 1931, What's the answer? The railroads say operating costs have been forced on them through the increased prices of raw materials and through the forced restoration of wage cuts beiore | the roads were able to absorb them. Government Drawback. But there's another answer. It is to be found in the policies pursued | for the last 20 years by the National | Government, under Republican as | well as Democratic administrations, in failing to consider the economics of railway operation yet in interfer- ing in management, subsidizug the competing carriers and generally han- dling the transportation problem in the same haphazard fashion of experi- mentatica that has characterized the N. R. A and the A. A. A. under “economic planning.” Political pressure on the Executive | and on Congress has pre Iwhole transportation pi | being viewed nationally, ar |is true the railroads think la votes, the fact remains that the ce- | pression has proved how important it is to maintain the purchasing power of labor. In other words, if the rail roads could increase their traffic by {10 or 15 per cent, they could pay the present Wwotes, meet their fixed charges and furnish good service to | passengers and shippers. | But incroases in traffic are tied up | with the general economic situation and with the impediments that have | been raised by artificlal measures to retard recovery. | Economies in operating costs can, of course, be suggested, but until the Government itself permits a greater | degree of flexibility and there’s an | incentive to management, the genius | that built up American transportation will not be revived. | Recapitalization Held Essential. One of the big costs, to be sure, is | interest on borrowed money. Recapi- talization would seem to be essential, too, to weed out the depreciated sul sidiaries and permit the railroads to do some of the sound things they h: | long been forbidden to do in getting | traffic. | To recapitalize means long-drawn- cut court proceedings, but the new laws passed in 1933 and amended last session are of great assistance in ace | celerating the process. Thus the New }Ha\‘en's predicament has been re- ferred to in the headlines as a “banke | ruptey.” Technically, that's true, but |actually the New Haven is going | through & reorganization that will correspond to the receiverships of other days. For under what is known as seos tion 77-B of the bankruptcy law, a | recrganization plan can be worked out and submitted to the courts that preserves as many of the security holders as equitably belong in the pice | ture. Such a reorganization proceede | ing cannot be instituted unless a cor= poration can prove that it cannot meet its maturing obligations. In good faith, it must exhaust all its avenues of credit. This the New Ha- ven management has done, even ine | cluding a request to the Reconstruc- | ion Pinance Corp., which has been publicly announced as having been re- | fused. Now, therefore, the New Haven can proceed with its reorganization. Fail to Earn Charges. | It is interesting to note that, of | the class 1 roads, about 67 per cent Lave failed to earn their fixed charges Guring the first seven months of 1835, | This means that security holders, which, by the way, are to no small | extent educational institutions and social welfare institutions generally, | are the ones whose incomes are suf- | fering. For railroad bonds used to be gilt.edge investments, a many | of them, in the better and stronger | roads, are still gilt-edge. Congress, in the last session. by | putting motor carriers and inland waterways under the regulatory power of the Interstate Commerce Commis= sion, has taken a constructive step. Recapitalization and readjustment of the debt structure is another step. But the railroads will not come back | to their own till the whole price structure in America can adjust it- | self to meet the new conditions, thus | making for that desired increase in velocity of transactions which pro= duces more freight traffic and more | carloadings. (Copyright 1935.) FEW ROADS SHOW PROFIT. L C. C. Reports on 50 Railways for Year. The Interstate Commerce Commis= | slon reported yesterday that only 13 |of the 50 largest railroads in the country showed a net profit after de- preciation and retirements for the first eight months of this year. The earnings generally were below the same period of 1934, although & few showed slight increases in net in- come. The Elgin, Joliet & Eastern jumped from a deficit of $453.310 last year to a net of $892,721 for the same period. The roads showing net income, in addition to the Elgin, were: Atchison, Topeka & Santa Fe, $3« 467,331; Chesapeake & Ohio, $17,701,« 259; Los Angeles & Salt Lake, $2,- 493; Louisville & Nashville, $1854,« 660; Norfolk & Western, $13,933,839; Oregon Short Line, $198,388; Pennsyle vania, $11,660,944; Perre Marquette, $238,475; Pittsburgh & Lake Erie, $2, 052,394; Reading Co., $2,743,335; Texas & Pacific, $355,380; Union Pacific, $7,« 693,692. The commission received reports from 143 of the 149 class 1 railroads up to August 31 showing total earn- ings of $368,269,609 for the first eight months, as compered with $419,405,« 242 for the comparable period last year. ‘These earnings, computed after raile ‘way operating expenses were paid, in- cluded $263,738,344 of net operating income, compared with $302.872,278 last year. Other income from building rentals, bus lines, etc., totaled $104,- 531,265, compared with $116,532,064. t \