The Key West Citizen Newspaper, January 21, 1938, Page 4

mex x orbbout a, more recovery. PAGE FOUK —S oe ce OKEING 3 ; —e at i _. WA SEENGION DEFICITS SINCE 1934 ECONOMY AND INCOME INDUSTRIALISTS CONFER FIGHT AGAINST REFORM OUR MERCHANT MARINE BUYING WORLD SILVER COURT THEORIES RAILROADS DESPERATE By HUGO S. SIMS (Special Washington Correspond- ent of The Citizen) * The President's efforts to bal- ance the national budget * meet with considerable opposition from congressmen who are re-/ luctant to see the flow of dollars cut off from their constituents. Reviewing the fiscal history of ‘the past few years, we find that Mr. Roosevelt began his adminis- tration with deliberate pump- priming which resulted in a def- icit of $3,629,000,000 for the fiscal year ending June 30, 1934. The deficits have been reduced each year since that high figure, if we omit from.consideration the pay- Tent of the Veterdns’ bonus in \ the fiscal years 1936 arid 1937. In 1935, the deficit was $3,001,000, 000; 1936, $2,687,000,000; in 1937, $2,144,000,000; and in the fiscal |? will | year to end June 30,'1938, the es-| timated deficit is $1,088,000,000. | i Next year, the President hopes | to reduce the deficit below the/ billion dollar mark. This is pre-/ dicated upon sharp reductions in| expenditures for highway con- struction, the CCC, and in inmit- ing the agricultural program to around $500,000,000. The plan is/ threatened by opposition to all of | these retrenchments and by the} threat of more unemployment} and consequent necessity of! spending more than the billion dollars a 3 allocated... for relief.’ Moreover, the’ preparedness ‘pro- gram will likely include material- ly enlarged sums for the nzvy. | Expenditures: of the ‘Federal| Government, according .to Mr. Roosevelt, are net likely to’ ‘fall much below seven billion dollars | a year,. which, is about, twice the| pre-depression level. ; The-reduc-} “ ‘tion in deficits has been brought! +acabout by, a stgadilysising income) and a quarter billions, a new rec- is a billion dollars below what the President anticipated last! January—the decrease beirg at-; tributed to the business recession. | Plainly, the balanced budget de-| pends upon increased tax collec- | tions, which, in turn, are up with | the national income. The Presi- dent sets a goal of between nine- ty to one hundred billion dollars; for the national income and ex- pects that this will produce suf- ficent taxes to balance the na- tional budget. These figures expiain the ef-| forts of the President to bring ‘tween Government and indi Before the holidays, .the Chiesa sustained economic! Price cooperation be-Teunce. i fustry Silver: - ; ae ee feould not occupy. a position more | participatory thah that of amicus ‘curiae, as the municipalities had | the last word as to the use of Fed- {eral grants. He expressed the pe, however, that there would be no duplication of exisiting fa- cil In connection- with the Presi- de effort to secure the coop- jeration of the industrialists, it should be remembered that when the Administration undertook its | reforms, there was general oppo- sition on the part of industrial leaders. The Liberty League was a result of the massed opposition | of certain business, financial and j industrial leaders who were con- vinced that they could undermine | the President and defeat the New | Deal's objectives. The election of 1936 thoroughly exploded this opinion and . strengthened the | President’s determination to in- jsist upon basic reforms. Appar- ently, the present prospect of co- operation depends entirely upon the willingness of responsible in- dustrialists to accept the inevit- able, revise the,ruleS pf business. and’ play the game under the new | ocean-going vessels“and the possi- lble construction of twenty-three The total cost of the new | others. ships will be $110,000,000 and it is | expected that fourteen will be be- gun in 1938. The seven companies will receive subsidies totaling $7,- 359,000 annually, with fifty-seven percent of the money being used for subsistence and wages of the operating personnel. * Another agreement is expected to provide nine or ten combina- tion cargo and passenger vessels. Besides the above program, the Commission has called for bids on twelve cargo vessels, to cost around $20,000,000, and the Stand- ard Oil company will be aided in the construction of twelve high speed tankers, at a cost of $37,- 500,000, of which the Government will provide $10,5000,000, to cov- er the expense of high-speed pow- er_plants, The new agreements are made under the Merchant Marine Act of 1936 and the sub- tracts which formerly cost the| twenty million dollars annually whether the ships cafried much) or little mail. The general idea of the program is to assure the nation of an adequate merchant marine in an emergency. To prevent fluctuations in world silver prices, the Treasury Department has agreed to pur- chase 35,000,000 ounces of silver from the Mexican Government at a price of forty-five cents an ounce. Secretary Morgenthau says the purchase was required) under the Silver Purchase Act, which requires that the white metal constitute one-fourth of the Treasury’s combined stock of sil- ver and gold unless. the world -The—Secretary said Mexico, Executive held a series of confer- “SUs®: = ep SE ences with inent utility lead- } haves offered: 46 "self Silver} The railroad situation, it is. gen- prom utility ne Sti aes ers. Last week he telked with key industrialists, including some who have been pronounced ad-/ versaries of the Administration policies. While no public an- nouncement was made as to the discussions, the industrialists re- ported “an interesting and in- structive taik” with the Presi- dent and that “all of us agree that we have a better understanding of each other’s problems out of Which we are sure will come clos- er cooperation in meeting the dif- ficulties of the moment”. The five major leaders of busi- ness included: Alfred P. Sloan, dr., chairman of the board of Gen- eral. Motors; Ernest T. Weir, of the National Steel Corporation; | Lewis H. Brown of the Johns- Manville. Corporation; M. W.} Clement, president of the Penn-} Sylvania Railroad, and Colby M.) Chester, president of General) Foods Corporation and chairman | of the board of the National Asso- | ciation of Manufacturers. Three of these men were active mem- bers of the American Liberty League which, for a time, was a vigorous critic of New Deal poli-! cies. t of great satisfaction * although “6ffi- cials there denied that the Mexi- can Government had entered into any bargain with the United States in regard to domestic leg- islation. For more than twenty years the Supreme Court has stood by the reproduction cost theory as a valuation basis in establishing rates to be charged by public utilities, but the retirement of Justice Sutherland will assure a liberal majority which will prob- ably lead the Government to at- tempt to.persuade the Court to adopt the “prudent investment” theory which would exercise a powerful effect upon utility rates. Moreover, some Court dicta in- volying the “due process” clause will be reversed in future cases. It is a known fact that the Con- servative Court has interpreted “due protess” to protect much more than procedural rights and remedies. The legal question involved in the TVA litigation is not the same aS that recently determined by the Supreme Court when it decid- sidies will replace 31 mail ¢on-| of silver reaches $1.29 ,per| tesa mas sas etiam sassssssesssse THOUGHT socdddcedocvessdsoacioes Victories that are easy are cheap. Those only are worth hav- ing which come as the result of eee The smile of God is victary.— see Pursue not a victory too far. He hath conquered well that hath made his enemy fly; thou mayest beat hin to.a desperate resistance, which may ruin thee—Herbert. ees Defeat need not follow victory. ; Joy over good achievement and work well done should not be eclipsed by some lost opportunity, some imperative demand not yet ~ met.—Mary Baker Eddy. H =ee8 | In victory the hero seeks the | glory, not the prey.—Sir P. Sid- iney. { sse8 | Who overcomes by force hath} |overcome but half his foe—Mil- ton. sees Victory may be honorable to \the arms, but shameful to the) jcounsels of the nation.—Boling- | broke. t Today’s Birthdays Carveth Wells of Westport, Conn., explorer and lecturer, born in England, 51 years ago. Prof. Pitirim A. Sorokin of Harvard, famed sociologist, born in Russia, 49 years ago. William A. Delano of New York, noted architect, born there, 64 years ago. Dr. Frederick M. Smith of Kan- sas City, Mo., president of the Re- organized Church of Jesus Christ |of Latter Day Saints, born at Plano, IL, 64 years ago. | Dr. William A. Wirt of Gary, Ind., superintendent of schools, ‘born at Markle, Ind, 64 years ago. Charles T. Ingham of Pitts- burgh, noted architect, born there, 62 years ago. Francis Hackett of Ireland, au- thor and editor, born there, 55 years ago. were without standing to chal- lenge the validity of loans and grants to municipalities for power purposes. In the TVA case, the utilities challenge the right of the Federal Government to use its money and directly engage in the power business in competition with the companies. Of course, the utility cases decided early this month recognizes the right of the Federal Government to release funds to municipalities to com- pete with power companies re- gariess of whether the Federal t can directly engage iti PFyduttion and sale of elec- 946 DOWEL, {erally recognized, presents a pic- 4 tire so grave that it would be dif- ficult to exaggerate it. With few exceptions, the railroads are “very sick” and ohly a “major operation” can keep them out of bankruptcy. President Roosevelt says that rehabilitation cannot be long delayed and that a national system of adequate, economic and solvent railroads, privately owned and operated, is a national neces- sity. He has asked Joseph B. East- man, of the Interstate Commerce Commission, to draft legislation for presentation to Congress. One of the probiems of the roads is “top-heavy” financial structure, with plenty of water. Whether or not the new legislation will at- tempt to squeeze the structure, involving losses to large investors in railway securities, is a ques- tion. Conceivably, consolidation of lines to end destructive competi- tion, abandonment of uneconomic } lines, readjustment of rate sched- ules and increased management? control will be provided. LA CONCHA HOTEL. tm the Center of the Busi er) NEWS NEGRO JUROR VOTES TO CONVICT NEGROES Marion, Ark.—John Claybrook, 66-year-old Negro farmer and timber man, serving on the jury, voted with eleven white men to send two members of his own race to the electric chair on.charg- es of attacking a white girl, . The jury reached its verdict ‘in seven minutes. Prefers Children San Francisco—O. L. Marston, Berkeley, Calif., property holder, declares that he would rather rent a house to a family with children than to one in which all are adults, declaring, “Families with children are better renters; they stay longer, and children don’t do nearly as much damage as that caused by the carelessness and neglect of some adults”. AVIATION CONTROL A bill to create a commission to have charge of all commercial aviation has been prepared by Senator McCarran, after a confer- ence with President Roosevelt. Earlier, the Senator had planned legislation to put air transport under the I. C.C. Sometime ago, however, the Howell Committee, appointed to study the aid indus- try, recommended the establish- ment of a separate commission, although it was understood at the time that the President favored placing it under control of the In- terstate Commerce Commission. The new commission, if created, will have charge of domestic and foreign airlines, the authority to grant or withhold certificates of convenience or necessity, and au- thority over rates. ITEM VETO The House has voted power to the President to.reduce or elimin- ate any appropriation item in a bill without vetoing the whole bill. Whether the Senate will do likewise is doubtful. NOTES ASIA LEADS In the month of November, 1937, the United States imported from the Continent of Asia goods to the value of $78,872,000 and only $66,998,000 from European countries. In the first eleven months of 1937, the Asiatic coun- tries sold us $892,002,000 worth of goods, while Europe sold us $783,- 325,000 worth. REDUCTIONS “The Federal Communications Commission reports that in the fiscal year ending June 30, 1937, it was instrumental in bringing about reductions in telephone rates which will save subscrip- ers $21,000,000 anmually aénd<that night telegraph rates wert lower- ed to save customers about’ $3,- 000,000 a year. PRESIDENTS START SPAN | Paso de Los Libres, Argentina. '—Presidents Augusto J. Justo*of Argentina and Getulio Vargas of Brazil recently inaugurated con- struction of a highway bridge to link their two nations across the Uruguay River, at the southwest- ern corner of Brazil. “ALCATRAZ” FOR WOMEN Washington. — An institution, similar to Alcatraz, is planned by the government for “hard-boiled” women convicts. While details have not been disclosed, the insti- tution may be put in Eastern Kentucky or at Braggs, Okla- homa. POLICE DELIVER BABY Greenwich, Conn—When two policemen answered the call to the home of Mrs. Eileen Harring- ton, they found it was too late to “rush her to a hospital. Patrolman Newton received inétructions ra- diced through police-headquart- ers by a doctor and’¥®layed them to Patrolman Clinton Palmer at the bedside. It was an eight- pound boy. i PLAY SAFE— By keeping FOODSTUFFS at the right _ temperature in one of our ALL METAL ICE REFRIGERATORS These refrigerators are doubly HEAT PROOF and absolutely air tight JUMP WITH RADIO |" Cincinnati —With his small-re-* | dio blaring forth ', Charles cord had been attached, played _ on. Joseph Pulitzer, American edi- tor and newspaper publisher, was | born in Mako, Hingary, in 1847. He died in 1911. TRANS Jos" D EN CURIOS KODAKS and The Old Reliable Since 1898 La Concha Hotel Bidg. 0) rITTTIT Ite If’s Deliciously Fresh! — TRY IT TODAY — PIRATES COVE FAMOUS FISHING CAMP On Oversea Highway. 20 Miles From Key West STAR * BRAND © out of bed it took five husky of- for divorce agam=: ner husband. to pick her up.- She is a re- and for evidence produced 2 hall Island sideshow fat bushel of love letiers sent hum i other womer fy ane ot of on Pe . wé want & 0 be the best locking erie & ce p= Nerurally, yoo want you: Wedding Lewmsc = = Se wésy Gimest. and thes s why we are ruta yOR ST Oe semarktbie ber of gonumr Serco’ Engrevsc Uccsee Se Gons and Asnouacement = th: Favored Soe THE ARTMAN PRESS CITIZEN BUILDING TRANSPORTATION CO., INC. Fast, Dependable Freight and Express Service Also Serving All Points on Florida Keys between MIAMI AND KEY WEST Four round trips weekly direct betwees Muam and Key West via Diesel Power Bosts—with over- night delivery to Key West. Leave Miami at 12:00 o'clock noon on Mom day, Tuesday, Thursday and Friday. Leave West at 8:00 o'clock P. M. on Ti , Wednesday, Saturday and Sunday. Northbound, leeves Key West 7-08 = = Southbound, leaves Miami 7-00 «= = ---And You Will Find In This ~ To Serve and Please You. They Invite You To Visit Them! PHONE 1386 . id 4 o CHICKEN FEETESZER wee or cme f $f Prem oh eee TS °F Peps Te A ADVERTISE | Package Liquors of All Kinds Beer and Wine Im addition to these industrial. ©¢ that the utility companies ists, the President continued to seé public utility executives. The utility men were interested in is- sues involving old PWA grants and the question of whether ex- Tex Ritter in RESTAURANT isting facilities should be dupli- TEX RIDES WITH THE cated. The President termed BOY SCOUTS Garage Elevator them questions of “local nature” Serial and Comedy ' Fireproof i and said that the Government yeeececccesessecoscscess i ness and Theater District EXCELLENT $20.00 wv Easy Terms—i0 Days Free Trial On Display at THOMPSON ICE COMPANY, Inc. —Phone No. 8— CITIzEen ADVERTISING BRINGS RESULTS Babers of Baber Bor Breec Phone 618 512 Fleming = THE CITIZES re