Evening Star Newspaper, October 10, 1936, Page 4

. THE EVENING. STAR, WASHINGTON, D. C, SATURDAY, OCTOBER 10, 1936, - T.V.A. COURT TEST} [Landon S peech Promises Balanced Budget WILL OPEN TODAY Ruling on Status of Act Possible at Hearing in Tennessee. BY the Associated Press. NASHVILLE, Tenn., October 10.— Attorneys contesting over New Deal power policies came here today for a hearing which may speed a T. V. A. test case toward the Supreme Court or delay it more months in lesser tribunals. At issue is a motion of the Tennes- see Valley authorities to dismiss & suit brought against it by 19 private utilities operating in the valley area. The Authority claims the suit should have been brought in the northern district of Alabama, where the T. V. A’s domicile is fixed by the act which created it. To argue this motion before Federal District Judge John J. Gore the utili- tles sent in a staff of legal talent headed by Newton D. Baker of Cleve- land, Ohio, former Secretary of War, while the T. V. A. dispatched its chief solicitor, James Lawrence Fly. In an earlier hearing on the mo- tion Judge Gore said in his opinion it would be necessary to decide the constitutionality of the act before rul- ing on his jurisdiction in the suit. This, he said, was due to the fact that the disputed act itself determines the place of residence of the Authority. Judge Gore pointed out that a ruling on constitutionality would per- mit an immediate appeal on the main issue of the suit to the Circuit Court of Appeals at Cincinnati. This is de- sirable, he said, since the complainant power companies claimed in chal- lenging the validity of the Authority that delay would be injurious to them, To take up the constitutional ques- tion, therefore, he adjourned the Cookeville hearing after directing counsel to file briefs on the main issue. Attorneys for the power companies | differed from the view tentatively | Reld by the court and claimed the motion for dismissal did not consti-| tute proper basis for the broader ruling. In agreement with the court, the T. V. A. brief said the court could hold the entire act constitutional or, limiting his decision in scope, could hold the T. V. A. to be a constitu- $ional agency. Should the court rule on the mat- ter of jurisdiction without deciding | the constitutional question, a later | hearing would be required to settle that question. . Engineering Instruments Stolen. Implements and instruments valued at $350 today were reported stolen from Lieut. Chester C. McDonald, engineering officer at the Anacostia Naval Air Station. William C. Cedy, chief petty officer there, said the thief also took a $15 revolver from his auto- mobile, THE WEATHER District of Columbia—Showers late tonight, followed by generally fair to- morrow: cooler; moderate southwest winds, shifting to strong northwest tomorrow. Maryland and Virginia — Mostly ‘eloudy, showers tonight and probably on the coast tomorrow morning; cooler. West Virginia — Showers tonight, followed by partly cloudy tomorrow; cooler. River Report. Potomac River little cloudy and Bhenandoah little muddy today. Report for Last 24 Hours. Temperature, Barometer. Y(}lerflu‘—— Degrees, Inches. o.m ! 8 pm. Midnight day. Record for Last 24 Hours. (Prom noon yesterday to noon today.) Highest. 76. at noon today. Year ago. 71. Lw;n. 69. at 8 p.m. yesterday, Year g0, 69. Record Temperatures This Year. | Highest. 105. on July 10. | ~Lowest. 0, on January 23. Humidity for Last 24 Hours. (From noon yesterday to noon today.) Highest. 57 per cent. at 5 p.m. yester- L‘:welt‘ 79 per cent. at noon today. Tide Tables. (Furnished by United States Coast and Geodetic Survey.) Today. = Tomorrow. 3:5R a.m. 4:03a.m. 8un, today g, tomorrow oon. today._ . Automobile lights must ene-half hour after sunset Precivitation. Monthly precipitation in_inches tn the Capital (current month to date): 1936, Ayerage. lw:m'a§ be turned on R.! ber = iR % ‘Weather in Various Cities. Stations. Abiline, Tex. Albany, Y. Atlanta, Ga.. glllnnc city Md. T T e o REEF Neb ladelphia Ariz. Pa. (7 a.m., Greenwich time. today.) Temperature. Weather. 44 " Cloudy Candidate Says Reckless Spending Will Wreck U. S. Unless By the Associated Press. CHICAGO, October 10.—The fol- lowing is the text of Gov. Alfred M. Landon’s address last night: Tonight I am going to talk about the Federal budget, and incidentally 1, too, am going to talk about it in killioas. First, let me make my position absolutely clear. If I am elected, the budget is going to be balanced. It is going to be balanced, not by depriving the needy of relief, not by refusing necessary aid to our farmers, not by swamping the country with taxes. The budget is going to be bal- anced by cutting out waste and extravagance; by putting an end to the use of public funds for political purposes; by restoring hard-work- ing, painstaking, common-sense administration. This question of balancing the budget is of vital importance to every man, woman and child in this country. Roosevelt Speeches of 1932 Quoted. It is true because “upon the financial stability of the United States Government depends the stability of trade and employ- ment, and the entire banking, saving and insurance system of the country.” These words are not mine. They were spoken by Candidate Roose- velt at Pittsburgh, four years ago. It is true because “if the Nation, like a spendthrift, throws discre- tion to the winds, is willing to make no sacrifice at all in spending, ex- tends its taxing to the limit of the people’s power to pay and continues to pile up deficits, it is on the road to bankruptey.” These words are not mine. They were also spoken by Candidate Roosevelt at Pittsburgh, four years ago. It is true because “taxes are paid in the sweat of every man who labors, because they are a burden on production * * * If excessive, they are reflected in idle factories, tax-sold farms and in hordes of the hungry tramping the streets and seeking jobs in vain.” And those prophetic words are not mine. They were spoken by Candidate Roosevelt at Pittsburgh, four years ago. Those are three reasons why “I regard reduction in Federal spending as one of the most im- portant issues of this campaign.” Even those words are not mine. They were spoken by Candidate Roosevelt at Pittsburgh, four years ago. Mounting Debt is Shown by the Record. Now let us turn to the record. Let us see if Federal spending was reduced, if taxes were lowered, if deficits were stopped. Every one knows the answer, but it can- not be emphasized too much. Four years ago the Federal Gov- ernment spent just over $5,000,- 000,000. Last year it spent just under $9,000,000,000. Four years ago the gross Federal debt was $21,000,000. Today it is $34,000,000. Those are the facts. Instead of a decrease, we have had an enormous increase all along the line—an increase in spending, an increase in taxes, an increase in debt—all of which, as every house- wife knows only too well, have increased the cost of living. That is only a summary of what has happened to the financial pledges of Candidate Roosevelt. Now consider what has happened to the financial pledges of Presi- dent Roosevelt. 14 New Bills Increase Tax Burden. Time after time we have been assured by the President and his spokesmen that no more taxes would be imposed. But under this administration 14 bills increasing the tax burden have been jammed through Congress. And as for his assurances that the budget would be balanced— well, these political hush darlings have become annual fixtures. The first one was shortly after he took office in 1933. The next was in January, 1934. The next in Jan- uary, 1935. The next in January, 1936. And the last at Pittsburgh two weeks ago. And this last, as usual, was accompanied by the promise that no more taxes would be necessary. In other words, as usual, the President expressed the hope that some time, some how, revenues will overtake expenditures. The way expenditures are running to- day, Jesse Owens himself could not overtake them. That is the record. Instead of a balanced budget, we have a confes- sion of incompetence—a confes- sion by those in charge of our Government that they have set loose a flood of spending that they are unable to stop. Foreigners Theory On Spending Adopted. Let us examine this policy of spending. Let us look at the theory used to justify it, the amounts involved, and the threat to the country if it is continued. The simple and amazing theory behind this spending was sold to the administration by a British economist. He said that if only the United States Government would spend $400,000,000 a month, it would prime the pump and all would be well. Of course, as a foreigner, he found ardent followers in this ad- ministration, although he had none in his own government. His formula was eagerly adopted, with one important change. The ad- ministration concluded that if $400,000,000 a month for useful projects would be good medicine, $600,000000 s month thrown around at random would be even better. So we started spending, not for the multitude of things we really needed, but for every con- ceivable thing. The lid was off. It is still off. We have been spend- ing at the rate of $600,000,000 & month and more ever since. Just consider what this meant. It meant making a special virtue of spending for spending’s sake. It meant saying to some eight hun- dred thousand Government em- ployes: “Don’t watch out for the resources of the Government. Get rid of them as fast as possible.” Balancing Americans First Given as Excuse. What has been the result of this policy? In the three and one-third years ending June 30 last the Fed- eral Government spent $25,000,000,000. than all of the United Btates from Stopped. ington to Woodrow Wilson spent in 124 years. And what excuse does the Presi- dent give for spending more than all the Presidents from Washing- ton to Wilson?—for ignoring his promises made at Pittsburgh four years ago—or perhaps we should say $25,000,000,000 age? Speaking last week at Pittsburgh, he said: “We had to balance the budget of the American people before we could balance the budget of the National Government.” And then he added: “That makes common sense, doesn't it?” This is & mighty melodious phrase, but with 11,000,000 unem- ployed, with almost 20,000,000 peo- ple on the relief rolls, with the banks stuffed with Government bonds, with the Government spend- ing double its income—this does not make common sense. In his last speech the President overlooked this record. That is not surprising. At least it is no more surprising than the method of bookkeeping adopted by this ad- ministration. For the first time in history—in war or in peace—in prosperity or in depression—the Treasury of the United States is keeping two sets of books. System Used in Face of Bankruptcy or Inflation. This is the kind of bookkeeping we find when countries are faced with inflation or bankruptcy—when governments can stay in power only by deceiving the public. It is the kind of bookkeeping, for instance, from which the French people suffered during the serious inflation 10 years ago. Under such a system, items are transferred and retransferred, as they are by this administration, without rhyme or reason, from one set of books to the other. No definite line is drawn between ordinary expenditures and so-called emergency expenditures. No one, unless he is in the confidence of these who juggle the figures, can determine accurately what is go- ing on. Of course, you can rely on the daily Treasury statement to present accurate figures. But with the present mystery of the two sets of books, the secrecy surrounding the $2,000,000,000 stabilization fund, and the jug- gling of revenue and expenditure items, not even an expert can obtain a clear picture of the exact condition of the United States Treasury. Bookkeeping Fails to Hide Government Costs. But in spite of this system of bookkeeping, in spite of all this juggling of figures, there are cer- tain facts that it has been im- possible for this administration to hide. One of these facts 1is the vast increase in the ordinary routine cost of our Government. In 1934, the first full year of the present administration, the ordinary activities of the Federal Government, exclusive of debt re- tirement, cost $2,505,000,000. For the present year the estimated cost is $3,407,000,000—an increase of $902,000,000. In order to place these figures on a comparable basis, I have put the cost of the veteran's adminis- tration in 1934 at the 1937 figure, and I have eliminated all such new items as the bonus, triple A, Civilian Conservation Corps and social security. In other words, this $902,000,000 increase was purely and simply an increase in the ordinary routine expenses of the Federal Govern- ment—an increase of 36 per cent in the expenses which the Demo- cratic platform, and the Demo- cratic candidate of 1932, pledged to cut not less than 25 per cent. An administration that boasts of that record does not deserve another chance. 75 New Bureaus And Agencies Set Up. Now consider the emergency expenditures. In the name of emergency, this administration has created no less than 75 new bureaus, agencies and what-nots. Certainly no one can seriously maintain that all of these conflict- ing bureaus are necessary. Neither can any one seriously maintain that is is necessary for our Govern= ment to have hundreds upon hun- dreds of press and publicity agents —hundreds upon hundreds of just plain barkers carrying on party propaganda at the expense of the taxpayer. There is still another set of figures connected with emergency expenses that deserve attention. so-called There are the expenditures classi- fled as relief. Now the fact of the matter is that since the N. R. A, was kicked out there has been a substantial recovery in this country. Yet in spite of this, relief expenses keep right on increasing. At the present time we are spend- ing for so-called relief at the rate of $3,500,000,000 a year, or $1,500,~ 000,000 more than in the fiscal year ending June 30, 1934. And still, in spite of all this spending, the ad- ministration has not redeemed its pledge to give every man on reliet a job. Now obviously there is something wrong here. Everybody knows what it is. A lot of the money spent in the name of relief has nothing to do with relief. And & lot of the money has been wasted. Budget Can Be Balanced If Waste Is Eliminated. It I am elected there will be an end to this spending of relief funds faor other purposes. There will be no more wholesale waste and ex- travagance.. And there will be efficient administration of our pub- lic affairs. That is how the budget can be balanced—how it can be balanced without reducing by & single dollar the necessary pay- ments to those actually in need. The Federal Government has become a vast sieve through which taxpayers' money is being poured in constantly increasing volume. Never in the history of govern- ment has there been such profii= gate spending. Any one at all familiar with what has been going on could almost count on the fingers of one hand foolish experi- ments the Government- could cut out and save at least a billion dol« lars any time it wanted to. What can ultimately be accom= plished in the way of reduction it is imposible to determine, since detailed figures are not available, and future commitments are un- revealed. But I mean to balance the budget. And I am not going to take four years to do it. With a reduction in Government expendi- tures, I am convinced there will be such a rebirth of confidence that we will have a real recovery—the kind of recovery that means re- employment. That, in turn, will not only reduce expenditures fur- ther, but will expand Government income. Change in Administration Essential to Relieve Burden. If the family incomes of this country are to be relieved from this intolerable burden—if the specter of inflation and bank- ruptey is to be set at rest, a change of administration is absolutely im- imperative. Election-eve repentance will not do. The give-me-another-chance plea will not serve. No matter how sincere the good intentions of the present administration may be, they can never be translated into an effective program of economy. Cannot Start Economy For Fear of Angry Votes. The reasons for this are ob- vious, an sdministration which starts a policy of spending for spending’s sake, dares not stop it. An administration which creates & multitude of new offices, which embarks on all manner of new ventures, which spends money to keep itself in power, dares not risk the angry votes that would result from economy. ‘Today, our various governments, Federal, State and local are taking, through taxation, almost 20 per cent of the national income. One- fifth of the average income of every man, woman and child in this country goes to the cost of government—$1 out of every $5. This is altogether too much. But even this is not the whole story. In addition, they are spending enormous sums obtained by bor- rowing. When this borrowing 1is added to what Government taxes from us in taxes, we find it is spending 30 per cent of the na- tional income, or $1.50 out of every $5. In the matter of borrowing, the Federal Government is the outstanding offender. For every dollar the Federal Government has received since March, 1933, it has spent $2. " Debts Must Be Paid Out of Sweat of Labors. This is an appalling situation. It cannot be casually tossed aside— as the President attempted to do at Pittsburgh last wegk—with the explanation that the debts will be paid out of an increasing na- TRAILER PROSPECTS ATTENTION! DRASTIC PRICE REDUCTION © . NOW ON *NEW 1936 MODEL CovErRep WAGON TRAILERS %2—CUSTOM MODELS 1 FLOOR DISPLAY MODEL—1 USED 5—DE LUXE MODELS 2 BRAND-NEW—1 DISPLAY MODEL—2 USED 2—MASTER MODELS 1 BRAND-NEW—I FLOOR DISP‘LAY PRICES CUT i« %200 FIRST COME, FIRST SERVED—BETTER HURRY W. S. DOMER <€O. No. 1 DUPONT CIRCLE Phone POtomac 1610 tional income. When the Govern- ment finances its costs by borrow- ing, it mortgages the future income of every family. And if our Gov- ernment is to remain honest, its debts have to be paid. And they have to be paid, not out of some impersonal fund known as “na- tional income,” but “in the sweat of every man that labors.” ‘We cannot—we must not—place this burden upon our children. We must remember that they, too, may have emergencies. We must make it possible for them to live their lives without having to pay for the financial follies of their parents. Every generation the necessary activities of Government increase, ‘This is inevitable because of the increasing complexity of civiliza- tion. Unless we watch carefully every penny we spend, unless we cut out every trace of waste and extravagance, these necessary ac- tivities are going to suffer. Every dollar that is spent foolishly means a dollar less for the things that are necessary and wise. Let me quote once more the words of the President. In March, 1033, he said: “Too often in recent history liberal governments have been wrecked on the rocks of loose fiscal policy.” Loose Fiscal Policy Must Be Stopped to Save U. S. He spoke truly. A loose fiscal policy—and that is certainly a po- lite term for what we have today— will wreck any government. It will wreck the Government of the United States unless we stop it. ‘We must put the spenders out. For remember, those who preach spending, practice spending and brag about spending cannot stop spending. This is the lesson of history. That is the record of this administration. They are proud of their spending. They talk of it as though preserving the financial integrity of the United States were only a game. The American people know that it is more than a game—that our very existence depends upon keep- ing our financial house in order. But if the administration wants a base ball analogy—if they want the score—it is easy to give. It is written clear across the coune try: Twenty-five billion dollars spent. Thirteen billion dollars added to the public debt. Eleven million unemployed left CONFINE BORAH T0 TALKS TO ISSUES Idahoan Commits Self Against Campaigning for Any Presi- dential Candidate. By the Associated Press. SPONKANE, Wash, October 10.— Senator William E. Borah, Idaho Re- publican and unsuccessful bidder for the Republican presidential nomina- tion, was committed today against campaigning for any presidential candidate. Asked directly if he would campaign for the Republican presidential ticket, the dean of the Senate replied yes- terda; shall confine myself entirely to issues and I shall not make a speech for any candidate. “The only partisanship which con- cerr,s me is the partisanship which presents the issues.” Borah is seeking election to his sixth term in the Senate. In Chicago John D. M. Hamilton, Republican national chairman, de- clined comment on Borah's statement. FACE ROBBERY Quiz Two Youths to Be Questioned in “Cap Pistol” Crimes. Two colored youths picked up in Baltimore while siphoning gasoline from an automobile were to be ques- | tioned by Washington police today in | connection with several “cap pistol” robberies here, ‘The youths identified themselves 83 ‘Warren Gibson, 17, and Wilbur John- son, 19. Police found a toy gun un Gibson, the Associated Press reported. 4821 Woodway Lane The Present Exh SPRING VARLEY An Exemplification of the Hidden —which give these Wes- ley Heights ties their incomparable prestige. Look critically b and seek the “hidden” values, which, ofter all, are th portant considerati Analyze the “hidden values” rep- resented by the location; the char- octer of the community; the con- struction of the H hind the paint and what’s under the wall poper. Miller-construction odds the in- CLIPPER HEADING FOR WAKE ISLAND “Preview” Party Leaves Midway After Flight From Honolulu. BY CHARLES E. HARNER, Associated Press Stafl Writer. MIDWAY ISLAND, October 10.— ‘The “preview” passengers flying the Pacific to Manila boarded the China Clipper today for Wake Island, next stop in a voyage that has brought us 6,470 miles from New York in ap- Pproximately 48 hours of fiight. ‘Two hours after departure, today be- comes tomorrow, because of the in- ternational dateline. Steamship pas- sengers long have experienced this confusion, but we are the first pas- sengers to have time cheat us by air. ‘We will get the day back, however, when we return from Manila, toward which we fly 1,185 miles to Wake Island today. (Pive newsmen started the flight from Alameda, Calif., covering a route soon to be a regular air service. Three other newsmen joined the group at Honolulu.) ‘The thrill of our Hawaiian recep- tion Thursday was matched here by the simplicity of greeting from this isolated island's colony of 56 men, whites and Orientals. ‘The 1,304-mile flight from Honolulu yesterday was without incident. S8ome of us rested. I personally had four perfect hours of sleep in a com- fortable berth. Finally, Capt. Ralph A. Dahlstrom, commander of the China Clipper, called me forward to the control bridge to point out the goal which he and his crew had aimed at across | & great expanse of ocean. I couldn’t see it from a distance of only eight miles. For me, the trip | was a miracle of perfect navigation. Midway is only three and one-haif miles long. It is surrounded by coral reefs and is but three feet above sea level. We were greeted at the deck by John C. Boyle, former Presno, Calif., resident, who is Pan-American Air- ways manager nere. We were faken | to the Pan-American Hotel, a beau- tiful white frame building brought here from the United States main- land. At the cable office, gray-haired Wil- liam Kealy, former Brooklynite. whe superintends it and is naval cusio- dian of the island, said: “Pretty swell about the Yanks. Sometimes it's awfully quiet here and I dream about Times Square. MARCANTONIO FACES TRIAL FOR ASSAULT Indicted as Director of Attack on Democratic Poll Watcher. By (¢ Assoclated Press. NEW YORK, October 10.—Accused of directing an attack upon a Demo- cratic poll watcher, Representative Vito Marcantonio, Republican, of New York was indicted yesterday for as- sault in the second degree. The charge, he said, was “s Tam- many attempt to embarass me in my campaign for re-election.” Solomon Silver, the complainant, asserted Marcantonio incited three men, also indicted, to assault him Wednesday night. Silver claimed that the attack fol- lowed upon his protests against the registration of non-residents at a polling place and that Marcantonio | had told a group of his followers: “Get that man out of here. Don't | let him bother us any more.” | Marcantonio, saying he was not asked to appear before the grand jury, asserted the accusation was “a cheap political frame-up.” I went into the polling place after | I heard that some of my (poll) watch- | ers had been beaten up by Tammany | gorillas,” he added. “One of my | workers is now in the hospital suf- fering from stab wounds.” ibition Home in Values communi- ehind the surface e essentially im- ons ome. What's be- suronce of protection to nature’s sublime artistry. The quarter of vicble reputation a century of en- of Miller-Built is a guarantee of the integrity of con- struction from four emphasizing the ndation to roof— “Hidden Values” that make a house a home and its purchase a sound investment. Visit 4821 Woodway Lane— Furnished by Potthast, Inc.; Accessories by Brown Tea Pot; Draperies by Wesley Heights Shops—and equipped with the Carefree Comfort of Modern Gas Appliances. Motor out Massachusetts Ave- nue, turning into Cathedral Ave- nue and continuing on through Wesley Heights, following the ezhibit home signs. Open Every Doy ond Evening Including W.C.GA. Sunday. N. 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