Evening Star Newspaper, December 7, 1936, Page 3

- CONGRESS' WORK ONBUDGET BEGINS Hearing Called for Today on Independent Agencies’ Demands. BY the Associated Press. Amid demands for economy and ad- ministration budget-balancing plans, congressional committees begin this week to review executive estimates of the billions needed to finance the Government for the coming fiscal year. Apart from emergency appropria- tions for relief, the men who hold the Federal purse strings will be asked to approve routine govern- mental expenditures which, informed sources said, may exceed $6,000,000,000. Relief appropriations and the §: 237,000,000 soldiers’ bonus shoved au- thorizations of the last session above $10,000,000,000. Closed hearings on the budgetary demands of independent agencies of the Government were called today by a House appropriations subcom- mittee headed by Representative Woodrum, Democrat, of Virginia. Another subcommittee Will begin hearings tomorrow on the Treasury- Post Office Department appropria- tions. Many temporary agencies will be required to appear for the first time before Woodrum's subcommittee to Justify their proposed expenditures for administrative purposes. Among them will be the Public Works Ad- ministration, the Home Owners’ Loan Corp.,, the Reconstruction Finance Corp. and the Federal Housing Ad- ministration. In the past, these units have been given lump-sum appropriations with virtually no strings attached. The last Congress stipulated they should ap- pear before the Appropriations Com- mittee. Committee leaders said they knew of no unusual financial requests dur- ing the coming session which would compare with the soldiers’ bonus. Officials said housing and farm ten- ancy legislation, however, might carry authorizations for substantial expend- {tures. The Wagner-Ellenbogen housing bill, which passed the Senate, but| died in a House committee in the last session, would make a direct appro- priation of $1,000,000 and authorize issuance of bonds up to $1,000,000.000. Although a balanced budget by 1938-39 has been predicted in admi istration quarters, the Treasury's re cent financial operations have pum!ed toward a deficit of $2,500,000,000 for this fiscal year. The deficit on December 3 was $1,265,000,000, against $1,696,000,000 at the same time last year. — FOUND. Tady's. on_Conn Cleveland 39 af! PUHSE 300 ave_ Potomac ter 7. $AR PIN, gold. about inches long. yellow stone in center: Noy between 14th and Cl: n.w. Reward. 413 n and Kth and G | fion Terrace South. BRIEF CASE. brown. containing ~ssniracts ers. allowance books. Reward. t. District 1630 BROOCH—Antique, gold.; Priday m.n- bet. Cathedral Mansion and Woodley Towers. _Adams 4800, Apt. 214, Hr\\l\rd COCKER_ SPANIEL, light tan. male_in Chevy Chase seciion, Emerson 3171, Revara = DOG—Collie, male: yellow and white: on Bradley bivd. between lson lane and | Beven_Locks rd. Reward. Wis. 4924 DOG—Wire-naired terrier. white \nn “tan wers 10 “Blinkey. black _and _white. from Foxhall Village Tal Reward, ' Cleveland ST T o OCKETBOOK. black Irm glasees and cash: s $100 block Mass POCKET WATCH _Man's. helrlo reward. Communicate with Jlmrs hrey Carier at Decatur 60: 6. PURSE—Black, containing money and eye- | glasses; on Lincoin Park car. Sunday. Rh ward. Margaret Duvall. 3062 Que st. n.w North ETTER. youne_ evenly marked, black and white. brown spots: answers to name of 1." Reward. Cleveiand R1X: WALLET —Man's, Saturday, containing & | considerable sum’ of money: owner's name on the inside. Liberal reward for its re- | turn to Room 725_Star office WALLET—Man's: ~ lost_ Sunday please return to J. B. Spund. ave n.w. ler. containing b st. and ams WRIST WATC] gold. l!nk fhlln cinit; Sunday. LiherA _reward. (Hartefeldt). sold Liberal Teward. " Fho WRIST WA diamonds. dnlnh mu “mold, octazon : at_New Hamp. d C sts. or in shaber ivials uzcnx Country ' Club. ON Baturday afternoon in burgh or Kann containing five $20 b 8 few S1 bills. Liber to Mrs. C. J Zies x 56, __SPECIAL NOTICES. T will not be forthcoming and the holder | IL, | of rallroad securities, the shipper and - | railroad labor will all be endangered. . Na DELIVERY NS08, NG FURNITURE OF ALL KINDS- 10 a.m.. Dec, 9, including ap. size. on’' premises. . STORAGE CO., 4615 Rolfes & Co.. Auc- PORCH REPAIRING. SHEl..Vlh(; COUN- ters, cabinet work, 4 1 ing and painting ture._Columbia AUWION SALE BY ORDER WILLIAM E. Furey. Recei automobiles. including 1556 Chevrolet town sedan. Parkara, Essex. Plymouth. Hudson and Nash in mnom body types; 1u:i5 cnnml 43 |<u G trucks. at Mafs His how THURSDAY DEC 58 PAL nspec.ion pérmitted Dec 9. ADAM A. WESCHLER & soh, uctioneers. | o7 CE 18 HEREBY GIVEN THAT THE annual meeting of the shareholders of The | Rigss National Bank of Washington, D. e eld" at” the anking house. 1503 Pennsylvania ave. nw. on 'nmdn January 12, 1937, The pol n ‘open from 11 o'clock 2n° until 12 o'clock noon: GEORGE O. VASS devar. -7 Oashiey NUAL MEETING OF TH Hholders of the Columbia Permanent ing Association of the District of Columbia, or the election of four directors, Im be Eld on 'rue‘A"l’v gec:m(neh 8. 1036 &t at the office of the association. Xo. ’fanihvamh L ington. D. C. Secretary. DALY 'mn:s uovmc LOADS AND PART 8dsto and from Balto, Phila and New Frequent trips o’ other" Eastern “Dep!nd:bln Service E!nce 1396." DA SFER & €O._Phone Decatur 2500. CE OF DIVIDEND. lln National Bank uested to present certificate of participa- unn a; the temronry office of trust at 1728 Pennsylvania “WILLIAM F. KELLY. . HENRY J. & b Trustees. Pranklin Liquidating Trust. FLORIDA SPECIAL. €O.. WISCON: A DEAL FUNERAL AT $75 me service as one costing 8500, “insurance vears Dprobably on car | Re- | C ‘ ished as a result of the T Start Carrier Finance Probe George A. Ball, center, key railroad financing todax. chairman. On the right committee member. 14582 BOUGHT |Ball Tells Senate Inquiry of Purchase of Shares of Van Sweringens. BY the Assoclated Press. George A. Ball, a grey-haired Mid- western manufacturer, told Senate in- vestigators today he had paid only |$274 682 for stock controlling a $3,- 183,285,000 railway and industrial empire. Testifying at the opening session of the Senate's inquiry into railroad | financing, Ball said he bought the stock at public auction in September, 1935. It earried control, he testified, of the so-called “Alleghany System”—part of the vast holdings of the late Van Sweringen brothers of Cleveland. The system included about 23,000 miles of railroads, street car com- panies, coal mines, bus lines, grain elevators and even a peach orchard, | Chairman Wheeler of the lmesngatmg Committee asserted. In addition to the Alleghany System, Ball said, he bought other Van| Sweringen holdings, paying $3,121,000 | | for the whole block of stock. The stocks were sold at auction in | | New York City, he said, when the |late Van Sweringen brothers were unable to repay a $39,500.000 loan to |a J. P. Morgan banking syndicate. The stocks were held by the syndicate | as collateral for the loan. | Mid-America Formed. The securities he bought at auction | for $3,121,000, Ball testified, were used |to form Mid-America Corp., the top | holding company in the Van Swerin- gen system. | Through a chain of subsidiary hold- |ing companies, Mid-America con- | trolled 249 corporations. Ball said. | Ball said he knew little about some | | of the companies he controlled, and | _{that he could not tell what kind of business they were engaged in. As he analyzed the far-flung Van Sweringen enterprises, Ball testified |that Alleghany Corp., a subsidiary holding company, owned 49 per cent of the Nickel Plate Railroad stock. | that this 49 per cent gives Alleghany asked | counsel “Well, no, I suppose not,” Ball an- swered. 5 The 23,000-mile rail network also includes the Chesapeake & Ohio, the Missouri Pacific System, the Gulf Coast Lines and “a very considerable | number” of other carriers, he con- | tinued. Before calling Ball, Wheeler made an opening statement promising to Max Lowenthal, committee — | conduct the hearings “objectively” for |“the welfare of the American trans- | portation system.” “The welfare of the country,” Wheeler said, “demands that the rail- roads be maintained as a solvent finan- cial system. Otherwise the money nec- essary for refundings, or expansion, “We wish to determine the extent to hich railroad financial difficulties re- sult from avoidable capital losses and excessive fixed charges rather than 's)mply from shrinkage in gross earn- Ings.’ ailroad holding companies, by which the Van Sweringens wove to- | gether their rail empire, may be abol- hearings, Whee'ler predicted prior to the opening | | | of the hearings. | Two Financiers Called. i Both the financiers who “inherited” control of the system when O. P. Van Suerlr\xen died last month were among the first witnesses asked to testify. ‘They are George A. Tomlinson, Cleveland shipowner, and Ball Wheeler said he also would question Thomas H. Jones, Cleveland raflway attorney, and John P. Murphy, sec- | retary of the Midamerica Corp.—the capstone holding company in the Van Sweringens’ vast pyramid of corpora- tions. They will be asked to trace the PIANOS for RENT $3 monthly and up. Rental paid applies to purchase price if you decide to buy later. Call NAtL 4730. KITT’S Van Sweringen railroad empire, appeared as the first witness before the Senate Interstate Commerce Committee’s inquiry into Senator Burton K. Wheeler, left, is is Senator Wallace H. Wfiite, also a RAIL EMPIRE RULE “Is there any doubt in your mind ! | working control of the Nickel Plate?” | flgure in the three billion dollar . Photo. < est Cleveland real estate office to the direction of & transportation syst:m once valued at $3,000,000,000. By 1926 they had acquired control of 64 allied corporations, including seven major railroads and a score of | lesser transportation properties. After six years of depression the system became debt laden and in 1935 the Van Sweringens were unable to pay $48,000,000 advanced by a J. P. Morgan & Co. syndicate. When the key securities were soid at auction, Senate agents said, they were acquired by the newly formed Midamerica Corp. Through this firma, financed by Ball and Tomlinson, the Van Sweringens regained command of their railroad kingdom. | Active management passed Friday |to Herbert Fitzpatrick, 64-year-old attorney, who became president of Midamerica Corp. New York and Cleveland bankers, “ho have helped finance many of America’s railroads, may be called to testify late this month, Wheeler said. Committee agents already have exam- ined the records of J. P. Morgan & Co., Kuhn, Loeb & Co.,, and other banking houses. | The investigation will cover 25 lines | recommended for inquiry by Joseph | Eastman, Federal transportation co- ordinator, in one of the most thorough surveys of America’s railways ever undertaken. Already authorized to spend $100,- 000 on its study, the committee is ex- | | pected to seek an additional appropria- | tion. Investigators said John Wheeler, son of Senator Wheeler, will be assis- tant counsel under Max Lowenthal. | The Communications Commission | will resume tomorrow its far-reaching | | investigation into the corporate and financial history of the American Tel- | ephone & Telegraph Co., ordered hy Congress in March, 1935. Its study of the company's rate y structure, on which original emphasis | was contemplated, has been shunted | to the sidelines because of the com- | pany’s voluntary action in twice cut- | ting rates, designed to reduce toll | ‘chnrgu $22,000,000 a year. 2 MARINE UNIONS | largely due to a succession of weak G.W.U. ANNOUNGES DR. SWISHER PRIZE Annual Award Tribute to Professor Emeritus of History, 90. Establishment of a Charles Clinton Swisher prize was announced today by George Washington University in honor of its professor emeritus of his- tory, who was celebrating his 90th birthday anniversary. The prize will be awarded annually to a student who has done distin- guished work in the fleld of medieval history, the subject in which Dr. Swisher, who retired from active work in 1927, was best known, and which he taught at the university 31 ycars. It will be & monetary award and was created by the Swisher History Club. Dr. Swisher, who organized the uni- versity's history department in 1896, and for 10 years taught all the cousses from ancient to modern history, will be honored at a reception this after- noon in the Cosmos Club by members of the staff of the history department. Discusses European Situation. Since leaving his active duties on the university faculty, Dr. Swisher has maintained a keen interest in world affairs and discussed today the European situation, which has brought several nations to the brink of war as a result of events in Spain. Much of the turmoil in Europe coul have been averted if France, Italy | and Spain had adopted the Amer- ican system of government, with its fixed term of years for an administra- tion, instead of the British system, with ministries rising or falling ac- cording to the issues of the moment, Dr. Swisher believes. “The peoples of France, Italy and Spain are not fitted by temperament for the British system of government. In many cases, ministries have fallen on some issue which was forgotten after a few months or a year, when it could have carried on effectively if it had had a definite term of office, as in America or Switzerland. The rise of Mussolini, for example, was ministries, which led to a lack of faith in democratic government.” Dr. Swisher graduated from Yale University in 1876, and later studied extensively in Europe. He spent 13 years in Mexico studying cultivation of the coffee plant and eucalyptus for the Mexican government. He re-| | ceived degrees from the Columbia Law School in 1881, from Cornell Univer-| sity in 1895, an honorary degree from the University of Guadalajara, Mexico, | in 1890, and an honorary LL. D. from | Mount St. Mary's College in 1905 from the late Cardinal Gibbons. He is the author of several books. Mountain Climbing Pastime. During his trips abroad, Dr, Swisher devoted a great deal of time to his favorite pastime, mountain climbin | He numbered among his acquaint. ances Queen Victoria, William II of Germany, Robert Browning and Lord Tennyson. As late as 10 years ago, he was stlll seekng out strange places and one of his most vivid recollec- tions is of a camel ride in the Sahara Desert, after which he needed the assistance of two men even to walk. Dr. Swisher was best known for his work in medieval history and was| | referred to by Woodrow Wilson, when vas president of Princeton Univer- | sity, as the best interpreter of medieval | history in this country. Among his| former students are Dean William C.| Van Vleck of the university law school, | Prof. De Witt C. Croissant of the| English department, Prof. Warren Reed West of the school of govern- ment, and Dean Elmer Louis Kayser and Prof. George M. Churchill of the history department. DROP STRIKE PLANS Rescind Order for Sympathy | Walkout to Assist Western Seamen. B85 the Associated Press. National officers of the Marine En- | gineers Beneficial Association and the | Masters, Mates and Pilots today re- scinded their order for a strike in support of the Pacific Coast maritime walk-out. Capt. James J. Delaney, president of the Masters, Mates and Pilots, said the two unions originally had voted to strike November 25 in hope that support of the walk-out would bring | together the regular International | Seamen’s Union and its rank-and- nle | element. The strike, he added, failed to hnve | that effect. The two unions were influenced also by the American Federation of Labor’s vote, at its Tampa, Fla., con- vention, to lend “moral support” to the seamen’s union against insurgent strikers, Delaney said. The convention found that insur- gent strikes on the East Coast, in sympathy with the West Coast walk- out, were the ‘work of Communists. Willlam Brown, president of the Marine Engineers Beneficial Associa- | tion, said Delaney was authorized to speak for the engineers. p——— Headaches Come from Constipation Most headaches are due to poie sons formed in the waste matter and absorbed by the blood. Slowly but surely these poisons undermine your health. Get rid of constipation and your heade aches will disappear. Constipation is dangerous for saybody. Nujol is safe for every body. It does not affect the stomach and is not absorbed by the body. Medical suthorities approve Nujol because it is so safe, 30 gentle and so natural in its action. Nujol makes up for a defie ciency of natural lubricant in the intestines. It softens the ‘waste matter and permits thorough and regular bowel movements without nip:u. Ju( try Nujol regularly for next month and see if you don foel bmu du- you ever suspected you Ask your druum for Nujol. Steel (Continued From First Page.) Wagner labor disputes act under| which the Labor Board brought its charges. | The board charged Carnegie-Illinois | had insisted that employe representa- tives under the company plan ap- prove a wage agreement, prepared by the company, withou. submission of its terms to the employes afTected. The complaint saidalso that when the Don’t Envy a HAVE ONE. It'seasy... 811 E St. N.W. Lady's 20-diamond rold wrist wateh 3" tully guaraniced €A BO Ll vement Ejsin Wrist | Watch: ully susran- unredeemed; toed Small Deposit Reserves Your Purchase Christmas NIIIIIIH|IIIMIIIIIIIIIIIIIIHIIHHIMI{IIMHIHWIIIIIIHIIIIlHI|I1IIIIIHIH!IIIWIIHIIIIII!IIII|IIII!IIIIHIIIIIIIIIIIIIII ann' 11th and Pa. Ave. anored by G.W. DR. CHARLES CLINTON 3 SWISHER. —Star Staff Photo. United States Steel Corp. established its plan in 1933 the company dom- inated the employes and interfered with their rights to organize. Defects in the plan as an instru- ment to provide expression of employe opinion were alleged by the board. No provisions appear in it for collec- tive meetings, the board said, and no opportunity is provided for employes | to cast votes on important problems such as wage agreements or the sub- mission of disputes to arbitration. Expenses Borne by Firm. All expenses of the plan are borne by the company, the board asserted, and newly hired employes automat- ically become members of the plan without information from the com- pany that locals of the Amalgamated Association of Iron, Steel and Tin ‘Workers exist. The board charged further that: Employe elections are held on com- pany property; the company permits incumbent employe representatives to campaign for re-eiection during work- ing hours and at company expense; employe representatives act as tellers and compile votes in these elections and are paid while so doing. Auto Painting ||a|¢y's 2020 M ST. N.W. ¥ Let Haley's Do It Right! f COSTLY LEAKS in your reof guickly and satis- facorily ‘repalt by eur roef- ing experts. & FERGUSON == 3831 Ga. 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