Evening Star Newspaper, May 2, 1940, Page 11

The Uses OfDelegated Power Fortas Article Cited as Argument For Walter Bill. By DAVID LAWRENCE. There is one thing about the young New Dealers who are fight- ing vehemently to keep the Walter- Logan bill from being passed by the Senate, and that is their ab- solute frankness. ‘They want to retain unre- stricted power in the commissions, boards and bu- reaus, and they do not hesitate to say so. For this rea- son it is inter- esting to ex- amine perhaps the most forth- right explana- tion that has yet David Lawrence. come from the radicals as to the methods they wuse in exercising power under the broad grants of administrative law given them by careless-minded Congresses of pre- vious years. The expression in question was written By Abe Fortas, who served for a time as one of the | attorneys under the Securities and Exchange Commission and later be- came general counsel of the Bitum- inous Coal Division of the Depart- ment of Interior. Mr. Fortas is being prominently mentioned as the probable nominee for the S. E. C. to take the place of George C. Mat- thews, who resigned. Written in 1937. The vacancy is supposed by law to go to a Republican, but since Mr. Fortas is general counsel for the| Bituminous Coal Division of the Department of Interior. which is presided over by Secretary Ickes, who once upon a time was a Republican, this presumably makes Mr. Fortas a Republican, too. Anyway, the candor which Mr. Fortas revealed when he wrote an article in April, 1937, for the Duke University Law Journal may win him at least a recess ap- pointment when Congress adjourns. Mr. Fortas described the inside workings of the S. E. C. as follov«_'s: “Wise administrators may, by qls- cussion and analysis, use the require- ment of disclosure to educate the registrant’s attorneys. Questions and discussion, directed to the accuracy of statements, may raise the pos- sibility that the propriety of a prac- tice is subject to challenge. Subtle appeals to a higher self may cause slight changes in practices. But the limitations of such possibilities are indeed strict. Perhaps the imponder- | able effect of an agency with high standards may in time permeate the practices of men: but skepticism concerning this possibility is in- dicated. Unless the administrator has effective bargaining power, little can be expected. It must have sanc- tions or desired favors which it can | trade for changes in practices. Once | in a while, under the Securities Act, the administrator will have some- thing to trade. It may have a choice @s to whether a particular state- ment will be considered accurate and complete, or deficient. It may be asked to exercise its discretion, for example, to accelerate the effec- tive date of registration. Then, if | the need of the registrant is suf- ficiently urgent, a trade may be con- | summated. In return for the favor | of the administrator, the registrant rray amend its practices in accord- THE EVENING STAR, WASHINGTON, D. C, THURSDAY, MAY 2, 1940. The Capital Parade ‘Stop-Roosevelt’ Democrats Hit by Third-Term Deal In Texas; Plan Held Directed by President By JOSEPH ALSOP and ROBERT KINTNER. In mid-March your correspondents reported a prediction of the New Dealers managing the third-term movement, that by “May there would not be an independent Democrat candidate lefj in the field.” May is now at hand and the prediction has not come quite true. But of the two remaining independents, Postmaster General Farley is almost openly aiming at second spot on a ticket headed by Secretary of State Hull. And Vice President Garner has just been forced to make large concessions to the third-termers in his own home State of Texas. Thus, considering that they are supposed to be rank political amateurs, the New Dealers can claim a pretty high percentage of prophetic ac- curacy. The truth is that the Texas deal between the third-termers and Garnerites, which was personally superintended by the President, knocks the remaining stufing out of the NOW WERE stop-Roosevelt Democrats. The deal is that the Texas delegation will be split three ways, one-third 100 proof Garnerites, one-third 100 proof Rooseveltians, and one-third mod- erates. The delegation will give the Roosevelt policies a thumping public indorsement. And by a secret clause it is reliably reported that if the President decides to run, the dele- gation will cast their votes for him after a courtesy vote for Garner. As the Texas Garnerites were expected to lead the anti-third term demonstration at the convention, the ‘signifi- cance of the deal is easy to grasp. Angry at Garner At the same time, too much attention should not be paid to the Néw Dealers’ pardonable shouts of glee over the President’s intervention in Texas and Garner’s setback. The New Dealers’ interpretation of the new development is that, barring Jim Farley's possible self-assertion, all ar- rangements for an irresistible draft are now complete. They also say that the Président’s part in the matter inevitably means that he is going to accede to the draft. Leaving out the effectiveness of Jim Farley's opposition, which may be considerable if it materializes, there seems to be no reason why the New Dealers’ insistence on the President’s readiness to run should yet be accepted. Contrary to common report, he has very recently stated that he did not wish to do so, and his confidants in this instance were members of the New Deal group. Furthermore, his intervention in Texas appears to have been motivated as much by anger with Garner as by a desire to | further his own cause. The rather complex story really begins with the Wisconsin and Illinois primaries, in which Garner was entered against the President. Before the Wisconsin and Illinois voting the well-financed Garner ore- ganization appeared to have an unshakable hold on the Texas delegation which is chosen by a machine-dominated caucus and convention system, When the returns of the two primaries were in however, the third-term movement assumed, among politicians at least, a bandwagon speed which tended to shake the Texas delegation loose from Garnerite control. Wirtz Goes to Texas Observing these symptoms, Mayor Maverick of San Antonio, Mayor Tom Miller of Austin, Representative Lyndon Johnson, Undersecretary of the Interior Wirtz and other Texan New Dealers began to think of making a fight for a third-term indorsement in Texas. But when they urged a fight on the President, he told them he wanted no part of it. Then he was shown documents and other evidence of the character of the Garner campaign in Wisconsin and Illinois, which was extremely bitter and highly personal in its attacks on the President. This angered him. His warm feelings were by L0 means cooled by the Vice President’s sudden assault on the Hull trade agreements program in the Senate. House Majority Leader Rayburn and Federal Loan Administrator Jones, who had had a part in his previous decision to leave Texas alone, again pleaded with him not to carry the fight into Garner's home State. But the Texan New Dealers voiced the opposing view, L /THIS OUGHT TO i R0 TERy { CATCHEM HEADQUARTERS OPEN " || usiess |1 = and the President agreed. Two weeks ago he authorized Wirtz to take a leave of absence to go down to Texas and see how things stood. Wirtz actually opened a campaign headquarters, and was getting | | some response from the local politicians when Rayburn intervened, wiring both him and the Garner manager, Myron Blalock, that they ought to get together. They did so, arranging the deal for the delegation in a long | Italk. the results of which were reported to and approved by the Presi- | dent before being announced. Thus the third-termers march onward, | with but one problem bothering them—whether the President will go along. (Released by the North American Newspaper Alliance, Inc.) Druggist Loses $400,000 Suit, Against Exchange for Arrest A $400,000 action, brought by Max Kossow, druggist of 5519 Second street N.W., against the Washing- | ton Whole: Drug Exchange, 33 N i street N.E. and four individuals, charging false arrest and malicious ance with the administrator’s con- | Prosecution, was thrown out of Dis- ception of equity and justice.” i May Surprise Congress. | The foregoing may come as a sur- | prise to members of Congress who | have innocently believed that delega- | tion of power to commissions and bureaus meant an explicit authoriza- | M. Bradbury, trict Court today. Justice Jesse C. Adkins granted the defense motion for a directed verdict. Named as defendants with the ex- change were Paul Pearson, presi- dent, who died yesterday; Howard manager; Albert J. Smith, assistant manager, and John tion and did not involve trading Or | w " prancis, superintendent of the bargaining in public rights in ac- cordance as an administrative com- mission might arbitrarily decide. But the revelation that bargaining is a part of the reform process and that commissions can capriciously decide what is or is not “accurate” or “complete” in a registration state- ment involving the flotation of securities will not come as a surprise to persons who have been up against ‘Government bureaus in recent years The theory that the end justifies the means and that so long as the objective is a benevolent one, al- most any liberties may be taken | with statutory law represents an | entirely different concept of public | adminjstration than has been con- sidered morally sound heretofore. The Walter-Logan bill passed the | House by a 3-to-1 vote as a protest | against the excesses of administra- tive commissions, and while it is true | that there are some defects in the House bill, they can be corrected | without difficulty by those Senators who really desire to see some meas- ure passed which will really curb sbuses in the exercise of public wer. (Reproduction Rights Reserved.) Harry Beller, Federal Investigator, Dead By the Associated Press. FORT SMITH, Ark, May 2— Harry Beller of Newburgh, N. Y., special investigator for the Federal Alcohol Tax Unit, who had been assigned here for an investigation of alleged liquor running, died in s Fort Smith hospital yesterday afternoon. Mr. Beller suffered a heart attack several days ago. o " CANDIES New Location 1304 F Street Next Door to Palace Theater Week End Special Pecan Bark 49c Ib. Friday and Saturday Lunch WITH US Phone Your Orders 2300 NAHL NAtlL, 2301 exchange. The court and jury were told in \dhe trial, which lasted for several days, that the exchange discovered that for several months drugs were missing from its warehouse. Detec- tive Sergts. Michael Dowd and Leo Murray worked on the case and developed evidence which led to al- leged confessions on the part of drivers, according to the testimony. It was testified that a box of laxa- tive preparation valued at $300 was traced to Mr. Kossow's place of busi- ness. On August 22, 1937, Mr. Kossow was taken into custody by Sergt. Dowd on charges of receiving stolen | property, but two days later the case against him was dropped in Police Court, being marked “No papers.” | Assistant United States | David A. Hart exonerated him of the | charge, the jury was told. | The District grand jury subse- quently ignored the charge of re- ceiving stolen property against Mr. Kossow. The defense, represented by John E. Laskey and former Judge Ralph Given, told the court and jury that it did nothing to cause the arrest of Mr. Kossow nor did it prosecute and | that the police acted of their own | volition and initiative and had prob- able cause. | Auto Injuries Fatal RICHMOND, Va., May 2 (#).—In- juries suffered last night when he was struck by an automobile north of here proved fatal today to Walter Brooks, 29, of Mount Rainier, Md. He died in Memorial Hospital here. Attorney | | worked out. | tremendous political q'HE opintons of the writers on this page are their own, not necessarily The Star’s. Such opintons are presented in The Star’s eflort to give all sides of questions of interest to its readers, although such opinions maihbe contradictory among themselves and directly opposed to e Star’s. The Political Mill Third-Termers Escaped Possible Defeat By Texas Harmony With Militant Garnerites By G. GOULD LINCOLN. Notwithstanding the efforts ot the third-term boomers, Vice Presi- dent Garner still remains a candi- date for the Democratic presidential nomination in his own right— with a Texas delegation ready to back him. The agreement entered into by the Garner @ managers and the third-term ers in Texas has not changed the situation. Mr. Garner's name is to go before the -convention whether the President decides G. Gould Lincoln. to run or not. He is to have a Texas delegation instructed to work for his nomination. The Vice President is the only Democratic candidate for the presi- dential nomination who has had the courage to say openly and flatly he would challenge the President in the convention. Postmaster Gen- eral Farley has said he would be a candidate “without reservation,” but he has never said definitely he would oppose a renomination of Mr. Roosevelt. The Texan has been the only Democratic presidential candidate who has ventured to cross swords with the third-termers in the presi- dential preferential primaries. He has been defeated overwhelmingly in those primary contests. Never- theless, he picked up three delegates | in the Wisconsin primary and he made a showing in Wisconsin and Illinois that has given some of the third-terms pause—if only for a minute. Bitter Struggle Avoided. When the third-terms home State they "really started something. If reports from Texas are correct, the third-termers faced defeat in the State convention if they went through with it, In any event, there was promised a bitter struggle in the Lone Star State. This did not sit well with important Texans in Washington—Represent- ative Rayburn, the leader of the House, for example. And finally the so-called ‘“compromise” Wwas Some of the Garner followers were willing to go to the mat with the third-termers, even | though it might have proved em- barrassing to the leaders in t_he National Capital. But in the in- terests of so-called “harmony” they gave way. No one knows yet whether the President will run. The Chief Ex- ecutive has maintained silence on | this important question, although the people generally have wanted to know what to expect—particu- larly the Democrats. The Presi- dent's silence has been devastat- ing to other candidacies for the presidential nomination—in his own party. How far has any President the right not to take the people into his confidence in this matter of seek- ing a renomination? Particularly a third-term nomination? It smacks of one-man rule—called dictatorship in other lands. However, the Pres- ident appears to be getting away with it. . Inquil Begins. A President is in a position to use influence to bring about his own renomination. Already the Senate Campaign Ex- penditures Committee, headed by Senator Gillette of Iowa, is inves- tigating to see whether “influence” —patronage, etc.—has been used by other candidates for the presidential nomination in their favor. An in- quiry into what has been done by the third-termers may be too hot to handle. But why shouldn't there be such an inquiry? Senator Wheeler of Montana finally has thrown his hat in the presidential ring. In an interview in New York he has said: “If Presi- dent Roosevelt is not a candidate I will be a candidate.” That Senator Wheeler is a candidate has been well understood ever since a group of Western Senators, headed by Sen- Cadillae Zality from roof to road ! CADILLAC ENGINEERS, and Cadillac crafts- men have never worked with any but the finest materials. And Cadillac engineers and craftsmen design and build LaSalles. The conclusion is plain—you can’t beata LaSalle for value. Despite its mod- erate price, it is topmost quality through and through. Come in and see this en- gineering triumph. You’ll be as proud of it as we are! ®[4S54LLE 81240 for the Series Fifty Coupe, delivered at Detroit. Sedans start at $1280. Transportation based on rail rates, state and local taxes (i tional equipment, accessories—extra. Prices subject to change wil CAPITOL CADILLAC CO. 1222 22nd St. N.W. F. D. AKERS, President any), op: notice, NAtional 3300 SEE YOUR NEAREST CADILLAC:-La SALLE DEALER ator Johnson of Colorado, put him forward as their choice last summer. But the Montana Senator refused to join in any “stop Roosevelt” movement. He did not believe that the President could be stopped if he wanted to run. This was a practical way of looking at the matter, even though Senator Wheeler does not bélieve that any President should have a third term. He has always prefaced or concluded his statements about the presidential nomination with the assertion of a belief that the President would in the end de- cline to run, May Prove Formidable. If Senator Wheeler receives the Democratic presidential nomination he may prove a formidable candi- date, perhaps the most formidable candidate the Democrats could put forward. For he has a strong back- ing among the liberals and the labor voters, Senator Wheeler’s friends have in- sisted that he would not agree to run for Vice President, if President Roosevelt or any other Democrat heads the ticket this fall. It is a natural assertion—for a man cannot run for President and Vice President at the same time—openly. Suppose, however, Mr. Roosevelt is renomi- nated Mr. Wheeler then may have a concrete and practical proposition laid before him. It seems incredible he would decline a vice presidential nomination. There is always the chance that Mr. Roosevelt might not survive a third term. In that event Senator Wheeler would become President, if first he were Vice Presi- dent. There is the further chance that, as Vice President, Mr. Wheeler | might be in a formdiable position to win the presidential nomination in 1944. Andrew Jackson picked his successor, Martin Van Buren, and had him nominated for Vice Presi- | dent to run with him. Mr. Roosevelt decided | | to challenge Mr. Garner in his own may do the same. Or suppose the President de- termined to seek a third term with a reservation that, after the Euro- pean emergency has passed, he will step out of the White House and leave tie Vice President to carry on. That, too, would make the next Vice President Chief Executive, pro- vided, of course, Mr. Roosevelt should be renominated and re- elected. Farley Scores in Bay State. Postmaster General Farley has | scored in Massachusetts, where a Farley slate of delegates to the Democratis National Convention has just been elected. Presumably these delegates will not stick to Mr. Farley if the President runs. Federal Security Administrator | McNutt is about to launch himself in a whirlwind campaign for dele- gates to the national convention. His speaking schedule is amazing. He addressed the State Federation of Women's Clubs in Greensboro, N. C..last night. Today he addresses the Democratic State Convention of Nebraska. Then he goes to Lima, Ohio, to speak to the delegates to the Democratic National Convention and to the Democratic State Com- mittee. We, the People ‘Treaty of Washington’ Seen as Bringing Peace to the Democratic Party By JAY FRANKLIN, “Peace with dignity” is the phrase used by both the Garnercrats and the New Dealers to describe the “treaty of Washington,” negotiated by Majority Leader Rayburn and Texas Representative Lyndon Johnson in the White House April 29, 1940. So another “perfectly good fight” has been shot from under the embattled Democrats and the great breach which split the party beginning with the sit-down strikes and the battle for the judiciary reform bill in 1937 has been healed. Hearts are happy and arms are around shoulders and the whole po- litical outlook is one grand, sweet song. The terms of the treaty are simple. The Garner people were in a position to win the Texas delega- tion to the Chicago convention, but at a cost in bitterness that would have seriously impaired their con- trol of Texas politics and might have injured the Democratic party’s chances for the national campaign. The New Dealers were in a position to discredit Vice President Garner and his friends, nationally, and to build a fire under him in the Lone Star State. Under these circumstances, both factions in Texas acted in the long- range interests of the country and of their party. Rayburn, speaking on the basis of 30 years of intimate friendship with Garner, agreed to in- dorse the entire Roosevelt New Deal record—sit-down strikes, labor poli- cies, Supreme Court, etc.—and tq abjure in binding terms all part in any conceivable “stop Roosevelt,” anti-third-term movement. This is a com- plete retreat from the position taken by Garner's manager, Ed Germany, in Illinois, Wisconsin and New York, and reduces him and Col. Amon Carter (the Fort Worth promoter of “Pass the Biscuits, Pappy”) to the status of minority stockholders in the Garner machine. The liberal ele- ments of the Garner outfit, led by Rayburn, have gained control and the administration’s leadership in Texas politics has been recognized in the person of Johnson—a virtual freshman Representative who is now the acknowledged New Deal spokesman in the Lone Star State. The future trend is expected to reflect more liberal attitudes on labor and wages on the part of all the Southern delegations to Congress. Origin of the Settlement On their part, the New Dealers agreed to let Garner lead an uncon- tested “native son” delegation to the Chicago convention. This implies abandonment of the Garner anti-Roosevelt campaigns in California and Oregon and also implies generosity and friendliness on the part of President Roosevelt towards “Cactus Jack” himself. It is understood that Rayburn will be chairman and Johnson vice chairman of a repre- sentative Texas delegation at Chicago. ‘What touched off this peace settlement was the filibustering expe- dition in the Lone Star State, led by Undersecretary of the Interior Wirtz and by Honest Harold Ickes’ ‘“pie-counter” speech. On April 26, the Garner forces turned in their chips and told the White House that they were neither anti-Roosevelt, anti-New Deal nor “stop Roosevelt.” Rapid negotiations took place over the week end, and on Monday, Rayburn and Johnson appeared arm-in-arm at the White House and the details of the peace treaty were quickly settled on terms of mutual self-respect and friendliness. | The greater part of the credit for this agreement goes, by common | consent, to Rayburn himself. The majority leader was in a very difficult {posmon. His personal friendship for Garner and his lifelong associa- | tion with the Garner machine pulled him one way; his admiration for Roosevelt and his belief in the New Deal policies pulled him the other. It was due to his character and loy- | alty that the feud which has para- | lyzed the Democratic party in Con- { gress for the last three years was }composed on terms of “peace with | dignity.” ‘The importance of this settle- | men runs far beyond the fate of the delegation at the Chicago conven- tion. It includes the current pro- | gram of legislation before the Con- gress. It means that the party will g0 into the 1940 campaign reunited and in agreement on future policy as }v:ell as on campaign strategy. Roosevelt Is Winner | For Roosevelt is the winner by the “treaty of Washington.” He has succeeded in re-establishing Democratic party unity under his leadership, on terms which leave no hard feeling or ill will. It also leaves F. D. R. free to concentrate his attention on the remaining centers of dissent | within the party’s upper brackets, namely, Senator Wheeler of Montana and Postmaster General Farley. \ "z cemramcy 24 60D 70 el P iapy 2ehs 30 Minus 22 Is Why War Moved North Figures Represent Iron Ore Nazis Need to Fight By JACK STINNETT. The answer to Germany's vital dependence on Sweden—why the war moved north—is on the black- b&z:d in any third-grade arithmetic class. ‘The answer is 30 minus 22, There has been much idealistic talk from both sides about protect- ing the weak. It is chaff. Germany knows it. and the allies know it. The “30” in the problem is Ger- many's annual demand for iron ore. Germany needs 30,000,000 tons of iron ore a year to maintain her economy. The “22” is the crux of the des- perate situation—the 22,000,000 tons Germany must get outside her borders. No war can be fought without steel. Armor plate, shells, guns, mo- tors, ships, all require steel in quantity. Certainly the war has increased Germany's need for steel. Figures for 1938 are the last available. That year Germany im- ported 22,000,000 tons of iron ore- from all over the world—France, Newfoundland, Sweden and else- where. In 1936 German produced only 7,000,000 tons. Marshal Hermann Goering an- nounced the opening of other Ger= man ore deposits as part of his four-year economic plan. The Nazis admitted then that their most ex= travagant hopes were for a pro= duction of 12,000,000 tons. Hard-headed American commer- | cial attaches abroad remain skeptics. | Even stepped-up production—if achieved—would be little more than | a drop in Germany’s steel bucket. | Again it's a matter of cold arith= | metic. Not even the vaunted claims of the superiority of everythine on | German soil could make German | iron ore assav mara then 2740 pew | cent iron. It just ain't there, and not |even a pep talk by Adolf himself can make German soil produce | better ore. | Iron ore of 35-40 per cent iron con- tent is marginal ore, tremendously | expensive tc process, even by efficient | German methods. Steelmen figure | 45-50 per cent ore is a minimum re- | quirement. American iron ore from | the Mesabi range on Lake Superior runs about 60 per cent. Ore from Northern Sweden runs 60-67 per cent. So there is Germany's predica- ment. Her own low-grade ores won't ! come within 22000.000 tons of sup- plying her steel needs. The rest of | the world's ore sources of immediate supple are locked behind the blocke | ade door. Except Russia’s, which isn't readily mined. | L =1 | Citizens to Fiear Porter { Stephen T. Porter. chief engineer These two have been deprived of their |of the District Fire Department, will }political bulwark, in the shape of a major cleavage in the lee of which could work undisturbed. Farley’s attempt to convert the Demo- icrsuc National Committee into a Farley-for-President organization is next on the White House bill of fare. In dealing with this menace to party unity, Roosevelt can now count on the united support of the Garner Democrats. Finally, there remains the Wheeler effort to lop off the sub- | stantial chunks of “left wing” support for the President by making private | deals with John L. Lewis and raiding the New Deal's hen roosts. i (Released by the Consolidated News Features, Inc.) | they LOOK AT Westinghouse ) Electric Range S WORK-SAVER FEATURES See this you've FOR COMPLET BLANK SEE YO New 5-Speed Corox Cooking Unit Heats 309, faster . . . uses 22% less curremt than famous Corox Units of other years. In addition, it’s easier than ever to clean! 10 Westinghouse CommanderRanges like this one FREE each week for 5 weeks! 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