The Key West Citizen Newspaper, April 7, 1938, Page 3

THURSDAY, APRIL 7, 1938. THE KEY WEST CITIZEN yo ae me Ho GENS Le at a .. WA SHENGTON Fascist Powers Seek Mexican Oil As U.S. Presses For Settlement The situation precipitated by the ‘Mexican’ Government's sciz- ureof‘oil (properties owned by Americans caused Secretary Hull to ask the Mexican Government . for, “fair, assured and effective” i com) énsation for the American props Hties “expropriated. While acknowledging the right of the Mexican Government to seize the properties, Mr. Hull insisted that * the owners are entitled to full compensation and made plain that such payment must not be in bonds which might subse- quently become practically worthless. This, it is said, hap- pened in the case of the seizure of American-owned farm and ranch lands. Mexico gave the proprictors bonds in payment but the securities have not borne in- terest since issued. Officials be- gen work on a suggested plan which would permit the Mexican Government retain title to the oil | properties but, allow the Ameri- can companies to operate them, selling oil and applying the prof- its and surplus to,a sinking fund to pay themselves in full, the Mexican Gov- ernment faced the problem of huge oil surpluses. Since seizure of the oil wells, there have been reports that Italy, Germany and Japan were anxious to take over the output of the Mexican oil in- dustry. The United States almost immediately announced that it would cease buying Mexican sil ver on April 1 and hinted that commercial relations with Mexico would be studicd. This was tak- en to mean that there might be tariff increases ‘against Mexico, which some months ago boosted its tariffs against American products. Meanwhile, Encouraging factors in the si « uation were seen in the. special session of Congress called by President Cardenas, who had previously declared that he would sell oil only to Democratic coun- tries. Observers admit, however, that desperate need for an imme- diate market might lead to an agreement with Germany, Italy or Japan, which are anxiously seeking a basis for a trade. There were hints that the sharp decline of the peso, following suspension of silver purchases, and the fall of the price of silver on world markets following the reductior in price by Washington, lead to conciliatory action Mexico. Seeretary Hull, in his prote: called attention to the friendly titude of this nation toward the Mexican Government. The United States has steadily purchased Mexican silver at a high price, giving great financial aid, maintained an arms embargo in favor of the Cardenas .Govern- ment and has repeatedly display ed a. sympathetic attitu to- wards Mexican attempts to Solve agrarian and other probléms has While it is ‘probable that the seizure of oil properties will re sult in the clarification of all trade relations with Mexico, the incident should emphasize the danger of serious international complications. These do not arise with Me: », Which of itself is not a threat to the peace of the United States, but can be easily discerned in possible agreements hetween Mexico and Germany, aly and Japan. Should they succeed in establishing a claim to Mexican oil, developments ad- verse to the interests of the Unit ed States and democratic nations in this hemisphere are inevitable. In fact, the Mexican situation of- fers an easy avenue for Fascist penetration into this area of the world. After Bitter Debate Senate Grants President Power Of Reorganization The six-to-one decision of the . United States Supreme’Court, up- holding sections of the Public | Utility Holding Company. Act of 1935, which forced utility holding |, corporations to register with the Securities and Exchange Com- mission or lose the privilege of the mails and other channels of interstate commerce, started a rush by rebellious holding com- | paniés to comply with the re- quirements of the law which they have bitterly assailed and vigor- ously contested throughout a long legal battle. Naturally, the decision of the tribunal is hailed by the New Dealers as a significant victory. Solicitor-General Robert H. Jack- son, who argued the case for the Government, says that it means that utility holding companies are “under the Government instead of over the Government” and that it encourages those who believe that “great aggregations of finan- cial power must be, made; to op- glerate under the la § Justice Cardoza ‘did not par- 4 ticipate in the decision because of sickness and Justice Reed stood aside because he was Solicitor- General and signed some of the briefs for the Government. Jus- tice McReynolds alone dissented but did not attempt to write any § opinion in the case. Chief Justice Hughes, speaking for the Court, accepted in full the Government's argument that the compani could escape penalties by reg tering as required under Section 4 5, and retain all rights and reme- dies with respect to other pro visions of the statute. The Court upheld the right of Congress “to 3 — the fullest information 4 as ganization, financial seichine and all the activities P which cond Hare any bearing furor the exercise of congression- al authority” Y The decision, does; not mean Fi that the entire ‘act has been ap- Sproved because the “death sen- f stence” prov Qves'not ah is { sue in the case. The Government insisted that the sections of the Jaw were separable. The compan jes took the position that the parts of the act were a unit and sought a judgment declaring “each and every portion of the act” uncon- stitutional. Chief Justice Hughes found no “serious controversy” as to the authority of Congress over the activities of the companies in- volved. He dismissed the de- fendant’s contention that the act was inseparable and declined to pass on the constitutionality of sections not before the Court be- cause to do'so would be to “en- ter into a speculative inquiry”. The Court concluded that there was “no room for doubt” that the corporations involved were in in- terstate commerce, saying that while they might conduct their transactions through the instru- mentality of subsidiaries, the Court would look to “the sub- stance of what they do and not the form in which they clothe their transactions”. He upheld the wide discretion of Congress in imposing penalties for the vio- lation of its rules, saying specific ally that while Congress may not exercise its control over the methods to enforce a requirement outside its constitutional power, it could lay down a valid regula- tion and withdraw the privileges of the mails from those who de- stroy it. There are several comments to be made in connection with this litigation, The act was passed by Congress in 1935 after one of the most controversial strugglesi ser witnessed at the Capital. Some readers probably recall the _ iy quiry that unéovered the aati paign conducted against it, in cluding the mass dispate thousands of telegrams in opposi tion, some of them bearing fic titious names. The holding com panies bitterly assailed the 1 ure in its entirety it would destroy the that it violated p constitutional guarantee people of this country insisted Legal proceedings began vember, 1935, when the Se and Exchan tuted procee Electric Bond ny, seeking to comry ister July fore a Fi in 1937 tion from the tence” pro nal. The Court refused pas tire act. In April. 1 ties to the pet Supreme Court t Lower Court @ June 1, the to the Circuit € ed down a decision 9. upholding as reauired by features case case then we t. whict six weeks almost tween the tory act t PANISH HE beatty, glamour, ‘and color of early Spanish colonial days still cling to many par’s of the New “World: Thisfovely senurita was plo- togvaphed in front of ane of the col- orful iMosaics ofthe Casa,de Espana in San Juan, capital, of Puerto Rico on the route of the weekly cruises to the Caribbean and Nassau. The island of Puerto Rico was discov- ered by Columbus in November, 1493, while he was om his way to} anto Domingo, At that time the island was a riotous untamed jungle edged .with coral reefs, called “Borinquen” by the natives living there, According to some of the earlier reports, Columbus discovered the island none too soon, for the drink ing water carried on his battered barks was beginning to grow foul— the island was an oasis in a desert | “CHIEF COLLECTOR” "W LONDON, Conn.—Mrs vard Burns is termed “chief ’ of this city. In 11 years -auired 151 salt and pep- per s 4,000 match book covers, 125 elephant models, and collecting pictures of the collector she h ers, Dionnes. President Roosevelt — dismisses A. E. Morgan from TVA and otes Harcourt A. Morgan to airmanship. Dr the ¢ time, the utility companies, of various legal manoeuvres, have been able to ard the law in its entirety, preventing the Government from cing the statute, through the use disreg Without attempting to impute 1otives to the companies in the legal struggle, it apparent to any citizen that such prolonged litigation is not conducive to good govern ment nat a valid provision of ult engat should be | ACC of salty sea to turers and tl as the sh | the | mow stan¢ j ca jtened the name upon th | possession of it for $ | continued his voy | mingo and th island w | who ret ruled Youth. JUST FOR THAT—! TRENTON, Ga cause a souther pany refused to m a stop nicipal boar ereed that through the down to five miles for it 1 of t all an hour. Nine February of 1937 railroads for how yercent in reporting crea TT from need with impu ev tant year conte illustr which proce¢ conclusi of “dic tantly every trict ness ent country Holding Companies Lose Long Fight sViboole the Senate j{Wwreavars Bill gives #the President wide powers to a@ter executive branch of the Gov- at in the Upper what similar that which p: ded the vote the Supreme Court Bull last ye Democratic desperat y that presented al committee but zes the President to re bureaus agencie limits, subjec RP age of ‘th by activ specified congressional veto days; displaces the Controller ral in favor of an Auditor neral, with lesser power; es shes a Department of Publi and a National R Board; subst within sixty rator Civil s the appoint _ But y hey Thwarted Law For The slow mbined de- 3 Years | { | i | | income ° sonnel seems clearly boo! exerc coptrol of Hawaii post five Foperat ums this year, tall of 24 a vote co ava ject of the Ww tic he intends to i of his AtG a crowd gathered to observe The volve the death of aviation per- the Senator Smathers, ceived from ten to twelve thou- sand telegrams, oppose Pre WASHINGTON NOTES ererseccceces FATAL CRASHES fleet manoeuvers will in- established loss of the big long-range plane during the recent s in the mock battle for The Navy has the Pacific in, planes in TELEGRAMS Democrat of indicated that he re- Jersey, to bill, me to urging him reorganization he measw Senate. Telegraph report an unusual anche of messages on the sub- bill ROOSEVELT REMARKS ident Roc the before t in the panies m Sy} assumed the ting to some some objectives. ville, Ga., addressing the wae detention of Roosevelt Mr. Roosevelt called wages in the South and verbal blows at fuelalism. fascism and communism. ter honored the President's in rehabilitating the city of 10,- 000 after it was destroyed by a tornado in April 6. The ‘selfishness on the few,’ national perity. A few came of the Senate’ the Reorganization Bill and Supreme Cour ing part of the holding co! act, to refer to the failure of or; ized pressure groups to pre passage /of the Bill. with a death 1 - repre - dent, men to quote him directly. The House last the for The civi almost President part which was progress and days lat passage the President took d on direct said the who authorized nev ARMY BILL week a Square, higher struck cen- part totally criticized of holding — bs pr when news of the ’s decision uphold- pany asion nt Reorganization “It appears that the Senate cannot be purchased by organize as mis Presi- paper- passed War Department Appropria- Something Missing Mrs. Newlywed—Hurry up and carve the turkey, how to do it now. dear; you know Husband—Um—yes; but wh in thunder are the dotted lines tion Bill, carrying the largest total since 1921 thi cent which gets $448, 116,280. of twenty-eight per- for Army aviation, $18,000,000 more than amount, goes Corps will rv but other iter for military aviation will brir the sum up to $124,000,000. Part of the increase is to provide 476 additional planes, with the objec- tive of having ilable by July Ist, 1940. The airplane sit- uation of the Army on Decer r 2lst follows: Airplanes on 1,22 1,022; was as hand, subject to order on hand 475. The bill, as explained by Chair of the Sub-commit- on order, 103; and those obsolete but useable, a totat on account of fortifications of $6,748. Using round figures. 009 goes to the West Coast, $1,460,609 to Pan and $900,- 000 to Hawaii additional $1,591,654 is for betterment na PAGE THREF 'SNAKES GET NEW DEAL FROM FARMER (My Axseciated Press) WEATHERFORD, Okla., 7.—J. M. Krocker, lives near here, has a snake para- April farmer who dise. Since settling en the farm 40 Kroeker has refused to ny but ratth He ives the reptiles safely out of of his farm machinery. »eker said the snakes repay him for his friendlin by eating crop destroying insects ago, Scars, Roebuck made $30,828,- 248 in 1 , their best year on record for profit and sales NO NAME LODGE At South Ferry Landing Directly On Beach COTTAGES BATHING FISHING BOATS RATES: $1. $2. $3 Per Day ; PLAN TO LEAVE KEY WEST IN TIME TO ENJOY MEAL BEFORE TAKING FERRY i Stone Crabs — Turtle Steaks ! Steaks Phone No Name No. 1 i Mr. and Mrs. C. L. Craig. Mgrs. | PRESENTED BY THESE FIRMS MAY BE DEPENDED UPON Give Them Your Business! SAFEGUARD YOUR FAMILY’S HEALTH! For a low initial cos only a few cents a week to keep it going, in your home. Sold on Easy Terms Prices range $47.50, $59.50 and $69.50 PIERCE BROTHERS and you can have a DAYTON Water System CONCRETE BLOCKS Fag Reasonable Prices CONCRETE PRODUCTS COMPANY Rear Wm. Curry’s Sons Co. EET TE ET NN LE IEE TS, | NS TEXACO FIRE CHIEF GASOLINE PAUL’S TIRE SHOP Cor. Fleming and White Sts. —Courteous Service—- PHONE 65 QUALITY DAIRY PRODUCTS Light and Heavy Cream Pasteurized Milk Butter Milk Chocolate Milk ADAMS DAIRY PHONE 455 G. C. ROBERTS General Merchandise Wholesale and Retail— Galvanized Roofings Ship Chandlery Carey Cement Roofing hh. B. DAVIS’ 100 PER CENT PAINTS AND OILS William and Caroline Sts. TREVOR AND MORRIS ENG; “Oldest Continuous Ford Dealers in. the World” Watch The Fords Go By INSURANCE Office: TELEPHONE NO. 1} —-THE—. PORTER-ALLEN COMPANY 319 Duval Street JOHN C. PARK 28 SIMONTON S81 PLUMBING beRO PUMPS PLUMBING SUPPLIES PHONE 348 LSS IGNACIO COBO Kraft Miracle Whip Salad | Dressing and Mayonnaise Make Your SALADS Taste Better For Sale By ALL LEADING RETAIL STORES . IMPORTER and MANUFACTURER peer CLEAR HAVANA CIGARS Retail Eoxes at Wholesale Prices 1107 DUVAL STREET (Opposite Cuban Club) A TS > “Best for Pets— |) Dogs or Cats” Wilson & Co., after two years of oneeery research, has prodeced fer the snimal kingdom a balanced ration, Inspected and passed by De- partment of Agriculture of United States as fit for bowen food. Ask for and demasd— IDEAL DOG FOOD At Ay Grocery : oo [Fes ok... COLUMBIA LAUNDRY SERVICE PHONE 57 ROSES FLORAL PIECES A SPECIALTY CORSAGES, ETC. PLANTS and VINES SOUTH FLORIDA NURSERY —PHONE 597— A NEW DEPARTMENT —ti-- THE ARTMAN PRESS For those who desire BETTER PRINTING — we announce a CREAT PRINTIN SERVICE An expert will be pleased to advise with you—end create individual printing for your business. —PHOWNE $i— VE SG CHARLES E. ROBERTS Contractor PLASTERING STUCCO CRNAMENTAL WORK Brick Tile ork Stone 524 MARGARET ST. PLANS CONSTRUCTION ISLAND BUILDING COMPANY 530 William Street hn I ART NEEDLE WORK SUPPLIES YARNS SAXONY SHETLAND SPORT YARN GERMANTOWN KNITTING WORSTED KNITTING NEEDLES TALON SLIDE FASTENERS All Lengths—All Colors THE GIFT SHOPPE 534 Fleming Street PRITCHARD FUNERAL HOME Dignified, Sympathetic Courtesy LICENSED EMBALMEK Ambelence Serviee LADY ATTENDANT Phome 604 Never Sleep OPENING SOON —The New— NEW YORK BUSY BEE WATCH FOR OUR ANNOUNCEMENT