Evening Star Newspaper, April 14, 1937, Page 5

" BETHLEHEM STEEL SESSIONINUPROAR Demand for Retirement of Schwab Brings Near Fight in Meeting. BY the Assoctated Press. WILMINGTON, Del, April 14— Big men of steel squared off with clenched fists at the annual stock- holders’ meeting of the Bethlehem Steel Corp. yesterday in a battle over the fitness of Charles M. Schwab to remain as board chairman of the firm. No blows were struck, but arms were waved menacingly and Eugene G. Grace, Bethlehem president, angrily waved away two minority stockholders who approached him after they de- manded Schwab retire. “Don’'t come around and feign friendship,” the steel head shouted at the pair—Lewis Gilbert and L. B. Coshland of New York—as they step- ped up to Schwab's chair at the directors’ table at the close of the session. “‘Come around on business, but don’t feign friendship.” Grace’s Hands Clinched. Grace's face was chalk white. His jaw was set. His eyes flashed. His hands were at his sides, tightly clenched. He moved toward Gilbert and Coshland, much smaller men, and they backed away: There were other explosions of pro- test against the two stockholders’ un- | successful moves to force Schwab out | of his $200,000-a-year post—a job he | has held for more than a quarter of a | century—into retirement as “honorary | chairman” on a $25,000 annual pen- sion. Faces of Schwab's friends in the | meeting room went livid as Gilbert | asserted that the veteran chairman had “outlived his usefulness.” Schwab | was 75 in February. Denies Usefulness Outlived. Grace, who up to that time had been | friendly and conciliatory with Gilbert | and Coshland during their repeated attacks on the management, grew whiter and whiter and finally said “Mr. Schwab has not outlived his usefulness to this corporation. His retirement would be a grave mistake.” Grace said he “had no idea” that the board of directors would follow the | Gilbert-Coshland recommendation if the stockholders voted it. But the question never got to the directors. It was defeated overwhelmingly, the two dissenters rolling up only 269 votes. There were in excess of 2,500,000 shares cast against the motion. Gilbert, a rich Park Avenue dweller, who has become known as “Minority Stockholder No. 1 of the United States” because of his campaigns in behalf of | small investors, voted his own stock and proxies mailed to him by a half | dozen other stockholders from different parts of the country. Loan Repayment Demanded. ‘The real battle of the meeting did not develop until the proposal to oust Schwab came up, although Gilbert and Coshland voted against the management’s slate of directors on the grounds of “lack of confidence,” and demanded that Grace and other officers of the corporation repay im- mediately the $15,000,000 balance of $18,000,000 they borrowed from the corporation in 1931 and used to buy stock in the corporation. This last demand was entered in the records as a recommendation for action by the board of directors. Failure to act, Gilbert said, would be & violation of Delaware corporation laws which prohibit corporation loans to corporation officials. MILK HEARING SET FOR NEARBY VIRGINIA Btate Commission Seeks Arlington- Alexandria Market Data on April 23. bY fhe Associated Press. RICHMOND, April 14—The State Milk Commission announced today a public hearing would be conducted here April 23 on conditions in the Arlington-Alexandria market The commission said the purpose of the hearing would be to obtain gen- eral information on the operation of the State regulations. A case originating in the Arling- fon-Alexandria market recently was decided by the United States Supreme | Court, holding the Virginia milk con- trol act constitutional. The commission will conduct a hearing in Richmond April 26 on a petition of producers in the Colonial Beach and Potomac Beach areas for the establishment of State control in those markets. | been | battleships. THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, APRIL 14, 1937. Defends Schwab in Stormy Session Candid camera photo shows dramatic moment during meetintg of the board of Bethlehem ty stoc Steel at Wilmington, Del., yesterday. L. B. Coshland, a minori Charles M. Schwab retire as chairman of the board. John Souermundt (left), another stockhold- er, is shown as he extended his hand menacingly in Coshland’s face and shouted: “Punch them ears a pleased smile at this display of loyalty, President Eu- set jaw. Later Grace clenched his fists and moved toward in the snoot.” While Schwab (right) w gene Grace sits next to him wit Coshland. R. E. McMath, vice president and secretary is seated a kholder, had demanded that t Grace’s right. —Copyright, A. P. Wirephoto. Deficit (Continued From First Page.) Progress Administration for filling va- cancies in emergency agencies. Those with Civil Service status are eligible for places in the old line establish- ments. “The employes who remain have retained in strict accordance with Civil Service regulations, and the furloughs include personnel in all grades and classes in the office of the controller,” an announcement from the department said. These separations leave approxi- mately 3300 A. A. A. employes on duty, which is about 50 per cent under the force at work when the Supreme Court put the agency out of business. Clash in House. Meanwhile, members of the House | Labor Committee clashed over the | Government's financial position ln} debate on continuing the Civilian Conservation Corps on its present | basis. The argument followed a request by Representative Johnson, Democrat, of Oklahoma for placing the C. C. C. on & permanent basis with 350,000 enrollees. A bill before the commit- tee, based on recommendations of President Roosevelt, would provide far | 300,000, at an annual cost of at least | $300,000,000. Representative Ramspeck, Demo- crat, of Georgia asked Johnson: | “With Government bonds going down and revenues failing to meet expectations, I'd like for you to tell us where were going (o get the money?” “My answer is this,” replied the Oklahoman: “The House recently | voted without batting an eye to ap- propriate funds for two $60,000,000 If we can find money for the ships, we can find it to pro- | vide jobs for the youth of the Nation.” Representative Keller, Democrat, of Illinois spoke up. “The Government is not broke,” he said. “This talk about skimping and | pinching is ridiculous.” With the exception of the skeleton group to be left in the controller’s of- fice to settle claims, the workers are engaged in administering the soil con- | servation and domestic allotment act and the marketing agreement provi: AAA, Offpeiats test GENERAL Dual 05 for o @ sions of the amended agricultural ad- justment act. The President will send to Congress | next week revised budget estimates | for both the 1937 and 1938 fiscal years, together with his estimate of | relief needs for the latter. | Led by Senator Byrnes, Democraf, of South Carolina, some prominent Democratic Senators are proposing a cut in relief spending. Byrnes, a close adviser to the President, is sur- veying the financial conditions of States to determine whether they could take over a larger portion of the relief load next year. In his original budget estimates, the President said receipts would match outlays in the fiscal year be- ginning July 1 if relief spending could be held to $1,537,000,000. Since then there have been recom- mendations from State and municipal spokesmen that this figure be lifted. Mr. Roosevelt gave no indication of what relief appropriation he would | request, but said he had told a delega- tion of Governors and other State representatives last week that he would do all he could. At that time, word circulated that the Executive had taken the position the Federal fiscal situation called for & progressive scaling down of relief | outlays. | Through April 10 the Treasury | had collected $1,532,645,000 from in- | come levies, or $840,000,000 less than the original estimate for the entire | “At Better Stores” ping (2 { year. At $700,272,000, March col- lections fell about $140,000,000 under informal estimates. Mr. Roosevelt recalled he had or- dered departments to slash expendi- tures last year, but said the instruce tions did not go out until late in May. The earlier demand this year, he said, should make possible larger savings. For this year the January budget estimated outlays at $8,480,804,000. Spending thus far has aggregated $5,- 799,992,000, with debt retirement and other year-end outlays still to be met. In pointing out that some taxes had fallen far below expectations, the President cited the railroad retirement and gift levies. He said income tax revenues also are under estimates at present. Class 1 railroads and their employes | now are paying retirement levies into a special court fund, pending outcome of litigation challenging the constitu- | tionality of the 1935 rail pension legis- | - lation. RESORTS. A REACH, VA. Sp,i“fio’#’!’fa”. C HALFONTE OCEAN FRONT VIRGINIA BEACH, VIRGINIA Reasonable Rates! LABOR ACT TALKS LEAD TO VICTORY Wyzanski of Justice Depart- ment Credits Aid of Former Law Professor. By the Associated Press. Victorious Government arguments in the Wagner labor law cases were the results of several weeks of talking, with feet on desks, followed by the repeated summarizing in long-hand of the case and winding up with a quiet debate between Charles E. Wyzanski, jr., 30~ year-old special assistant to the At- torney General, and his former law professor, it was learned today. Wyzanski, who has won five of six cases before the Supreme Court, leaned back in his chair at the Justice De- partment, lit a pipe and gave away secrets of the trade. One of the young- est of the so-called “brain-trusters,” ‘Wyzanskl closed the argument in the ‘Wagner act cases for the Government. Credit for Success. The young attorney, who speaks with a Harvard accent and for recrea- tion reads the philosophical works of Santayana, credited his success in the ‘Wagner act cases to the prolonged dis- cussions and to the trial argument he made before his former instructor, Prof. T. R. Powell of Harvard Uni- versity. Wyzanski was assisted in preparing the Government’s case by two other Justice Department attorneys, Charles Horsky and A. H. Feller. “For several weeks we did nothing | but sit around with our feet on our desks and talk. Then we wrote an eight-page summary, taking turns at writing it out in long hand. That took three weeks. For the brief, which ran 150 pages, all we had to do was fill in the necessary economic, historical and legal material.” Colleagues Considered. Either one of his two colleagues, he contended, could have presented the same arguments that he made to the court. Wyzanski is a bachelor and admit- ted with a laugh he is “without prospects.” His most prized possession is a let- ter received in 1927 from Supreme & mcc(&ijnvifafions 5“d Announcements Our new styles of Engraving executed in true ’Bnu?oo/; manner are moderate enough in cost to meet present-day demands ... BrewamD Engrauers and Fine Printers 1217 G St. N.W. PHONE DISTRICT 4368 Court Justice Oliver Wendell Holmes. The attorney, then a college senior, had written Holmes asking for a para- graph summing up his beliefs in “mo- tives of the legal profession.” Holmes replied at length, coneluding thus: “For your sake, I hope that when your work seems to present only mean details you may realize that every de- tall has the mystery of the universe behind it, and may keep up your heart with an undying faith.” FAILURE TO REPORT ACCIDENT IS CHARGED Edward J. Duckett, 24, colored, 615 C street southeast, appeared volun- tarily at No. 2 precinct yesterday to face charges of driving through an occupied safety zone. The charges grew out of Duckett's alleged failure to report to police striking Agnes E. Flynn, 30, of Arling- ton, Va., as she was waiting for a street car at Fourteenth and W streets Mon- day. Police said Duckett gave a wit- ness his name and address, but failed to report the accident to them. The woman's hurts were slight. Norman Jones, 5, colored, of 527 Florida avenue, was slightly injured when struck by an automobile as he was running across Fifth street near his home last night. He was treated at Freedmen’s Hospital. Police said John W. Sewell, 36, colored, of 1520 U street, was driver of the car. ANIMAL KINDNESS URGED More humane treatment of the Dis- trict dumb animals was requested yes- terday by Claude W. Owen, former president of the Washington Board of Trade, in a radio address over Station WRC in connection with “Be Kind to Animals Week.” Owen spoke principally about cruelty to horses, both those used in vehicular traffic and saddle horses, many of which he said were not in condition for use. He asked that persons patroniz- ing commercial riding stables refuse to accept horses which appear over- York,ei Vor under?Txnshed. PONTIAC Sixes & Eights IMMEDIATE DELIVER Y| | WE NEED USED CARS | Flood Motor Co. 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Husband, former Assist- &nt Secretary of Labor, presided in the absence of Col. Frederic A. Delano, president of the association. Principal |; speakers were Henry Gilligan, who re- cently retired from the Board of Edu- cation, and Mrs. Charles Carroll Haig, | District D. A. R. regent. Miss Mary Aiton, head of the Americanization School, thanked the D. A. R. members | for their work in aiding alie | — e CHICAGO MOSTFREQUENT SERVICE NOW IT COSTS NO MORE to fly to Chicago than to go by surface transportation. Only 4 hrs. 46 min. 6 flights daily, in air-conditioned twin- engined planes. Departures: 8:45 a. m., 11:40 a. m,, 3:40 p. m., 4:45 p. m., 5:45 p. m., 11:15 p. m. (Pennsylvania Air Lines to Cleveland). Tickets: 808 15th St. N. W., ME 5656 (24 hr. service). Or Hotels; Travel Bureaus 'UNITED AIR LINES AS AN AID IN THE TREATMENT OF RITIS Drink Mountain Valley Water, the famous health-water that doctors have prescribed for more than 50 years. 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