Indianapolis Times, Volume 34, Number 240, Indianapolis, Marion County, 16 February 1922 — Page 1

THE WEATHER Fair tonight and Friday. Rising temperature.

VOL. XXXIV.

BEVERIDGE ENTERS G. 0. P. SENATE RACE AT LAWN GATHERING Announcement Comes in Answer to Petitions of Clubs Organized in State to Promote His Candidacy. REFERENCE MADE TO 6-YEAR TERM •Calling attention to the fact that whoever is elected United States Senator from Indiana will serve not only the remaining two years of the present administration, but three times that long, Albert J. Beveridge announced his candidacy for the Republican nomination for the Senate this afternoon. The announcement that has so long been awaited by his friends was made to a gathering on the lawn of his home at 4164 Washington boulevard. In the gathering were representatives of Beveridge-for-Senator clubs formed in all parts of the State to push the candidacy of the former Senator.

The statement concerning the duration of the senatorial term was the only one made by Mr. Beveridge taken as a thrustat his opponent, Senator Harry S. New, Mr. Beveridge announced in the course of his short statement that he will discuss the issues involved in the campaign after his name has been formally filed as a candidate for the nomination. CLUB MEMBERS MAKE SHORT TALKS. Mr. Beveridge’s statement was made following short talks by representatives of many of the Beveridge-for-Senator Clubs. There was no formal program. Members of the clubs met at the Claypool Hotel and were taken to the Beveridge home in automobiles. “I appreciate what you have said and thank you for saying it,” Mr. Beveridge said in his statement. t£Wben you go home, pray assure the men and women whose message you bring me, that I value highly and never shall forget or cease to be grateful for their esteem and confidence. “In my opinion, no one should become a candidate for so vital an office as that of Senator of the United States a- a time like the present, except in response to a genuine and voluntary movement of public sentiment of widespread and unmistakable character. SEES GRAVE PERIOD AHEAD. ! “It must now be clear to all that the country has entered upon one of the gravest periods in our history; from the economic and business point of view the present decade may prove to be the most momentous through which the Nation has ever passed. “In such an existing situation and with such possibilities, It is neither common sense nor sound patriotism to choose party candidates for so critically important a position of national service and responsibility for any reasons of petty partisanship or personal ambition. “All voters must bear in mind the capital fact that the Senator to be chosen next November will serve, not only for the remaining two years of the present administration, but for three times that long. His term will not expire before March 5, 1929. Human wisdom cannot forecast the emergencies that may arise during that extended space of time. “One of the fundamentals of our free Institutions is that the people themselves shall choose their agents who make the people's laws and conduct the people’s government. The confidence of the Amer(Contlnued on I’age Eleven.) RUMORS AFLOAT PRESAGE SOME MING CLIPPING Tutewiler and Shank Will Face Opposition for • County Jobs. Rumors of a movement t 6 clip the political wings of County /Commissioners Carlin Shank and Harry Tutewiler that Is growing within the organization of Mayor Samuel Lewis Shank, Carlin Shank's brother, were c*urrent today following the spreading among Shank people of a report that Edward Unversaw, Fifth ward leader, and Cash Hogle, Ninth ward power, were to become candidates for the Republican nomination for commissioner in opposition to the present incumbents. The rumor-spreaders have it that Hogle is to oppose Shank and Unversaw is to run against Tutewiler. Hogle has not been identified with the Shank organization heretofore, having been an ardent supporter of Thomas C. Howe against Samuel Lewis Shank, in the municipal primary last year. Unversaw, however, has been a Shank man for years. He was offered the position of street commissioner in the new city administration, but refused. Hogle was a candidate for the nomination for commissioner against Carlin Shank In 1918. His defeat is laid by poliicians to the fact that the old Jewett-Roemier-Lemcke organization divided its support, up to the last few days before the primary, between Hogle and Jack Douglas, present county assessor, and Carlin Shank rode over both. Alcohol Declared University Thorn ROCHESTER. N. Y., Feb. 16.—Alcohol forms the greatest problem facing universities today President Livingston Farrand of Cornell University told the Cornell Club of Rochester. It is not so much over drinking by undergraduates as it is the quality of the stuff they obtain, he said.

WEATHER

Forecast for Indianapolis and vicinity for the twenty-four hours ending at 7 p. m., Feb. 17, 1922: Fair tonight and Friday; rising temperature; lowest tonight about 15 degrees. HOURLY TEMPERATURE. 6 a. ru 9 7 a. m 8 8 a. m 10 9. a. m 11 10 a. m 13 11 a. m 16 12 (noon) 16 1 p. m 20 2 p. m.. 22

Published at Indianapolis, Ind., Daily Except Sunday.

Four-Year-Old Enlivens Home of Mayor Shank Grandmother's Desire to Keep Sister and Brother Together Meets Approval. A bright-eyed youngster of 4 years made things merry around the household of Mayor Samuel Lewis Shank, 3547 East Washington street, today. His name is .Toe Younger. He hns come there to live. Here's how it happened: Joe’s grandmother is a member of the Shank housekeeping staff. Last fall Joe’s father, a World War veteran, entered the Government psychopathic hospital at Marion. His mother went to Lafayette and got work. Joe went to the Grant County orphan's home. His sister, Vivian, 8, came to live at the Shank home. A few days ago the grandmother received word from Ovid Comer, Grant County probation officer, that It was his intention to place Joe in a home. The grandmother worried for fear that the sister and brother would be separated permanently. Yesterday the mayor went to Marion to speak before the Kiwanis Club. He took the grandmother along. When they came back last evening Joe came along for good. The mayor described Joe as “a bright little devil," and "a four-year-old comer.” THREE FEDERAL ARBITERS HAND DOWN DECISION Public Service Commission Allowed to Make Intrastate Rates. The Indiana public service commission will be allowed to promnlgate rates applying to intrastate rates where there is no conflict with the Interstate Commerce Commission, and which rates are allowed by the carriers to become effective without contest, according to a decision handed down .by Federal Judges Francis P. Baker and George T. Page, both of the United States Circuit Court of Appeals of Chicago, and Judge A. B. Anderson of the Federal Court of Indianapolis, all of whom heard the case today. HEARING HELD ON MOTION OF U. S. LESH. The hearing was held nnder a motion made by U. S. Lesh, attorney general of Indiana, in the case of the Baltimore & Ohio Railroad Company against th* public service commission, Charles Royce, prosecuting attorney of the Sixth Judicial circuits of Indiana, and others. The case was originally heard in January, 1921, and resulted in what is known as the "frozen rate injunction” being issueo by the court that virtually tied the hands of the public service commission insofar as making intrastate rates was concerned Mr. Lesh and the commission recently filed a motion asking that the injunction be modified so that nothing therein should be construed as prohibiting the, public service commission from altering or changing any Individual rate, fares or charges authorized or prescribed in the order of the Interstate Commerce Commission under date of Jan. 28, 1921, or fixing rates on specific commodities or specific classes of commodities between specific points within the State of Indiana; nor as prohibiting the public service commission from fixing and prescribing such individual rates and charges, that do not cause undue or unreasonable advantages, preference or prejudice, as between persons or localities in intrastate commerce as against foreign cemmerce, and fixing a maximum and minimum thereafter to te charged without conflict with the rulings of the Interstate Commerce Commission. CHICAGO JUDGES AT HEARING. This petition as filed, was overruled by the court and instead an order holding that nothing contained in the previous order shall be construed ns applying to the charge for any transportation within the State, which charge the Interstate Commerce Commission by appropriate order shall except from the provisions of its order of Jan. 28, 1921, that is uncontested by the carriers within thirty days from the service thereof. This modification, according to Mr. Lesh, while not just what was desired, will enable the commission to function as to rates within the State and will prove satisfactory until the injunction ease has been finally disposed of by the United States Supreme Court. The application for a modification of the Injunction was filed before Judge Anderson, who decided that in view of the fact that three Judges are required to pass upon such an Injunction in its original form he preferred that the same proceeding be followed in a modification of such an order and Judges Baker and Page were asked to be present for the hearing.

Entered as Second Class Matter, July 25. 1914, at Postofflce. Indianapolis, Ind., under Act March 3. 1879.

DEMOCRATIC HOPES HIGH, AVERS HULL National Chairman Optimistic at Outlook. HOLDS TIME RIPE Refuses to Discuss Party Campaign Program. Democratic prospects never were better at this stage of the game than they are now, Cordell Hull, Democratic national chairman, declared today on his arrival for the annual mid winter meeting of the Democratic State Editorial Association. Mr. Hull will be the principal speaker at the banquet of the association at the Claypool Hotel tonight. "The Democrats this year not only have an opportunity to point out the many shortcomings of the Republican Administration, but they expect to carry on a constructive program of their own,” he said. “The time is ripe for Democratic success." Mr. Hull refused to discuss the Democratic program be referred to. declaring it could not be set out in a single statement, but must grow as the campaign progresses. HULL MET AT UNION STATION. Mr. Hull arrived from Washington at 11:12 o’clock. He was met at the Union Station by a committee composed of Charles A. Greathouse, Samuel M. Ralston. I.ew G. Ellingbanx, Joseph E. Bell and William Stinkard, president of the editorial association. Mr. Hull was fatten directly to the Claypool Hotel. Later he was entertained at luncheon at the University Club by Mr. Greathouse. From the club he went to the Hotel Denison, where he attended an executive meeting of the State committee. Following the committee meeting, he was a guest of honor at a public reception at the Indiana Democratic Club. Mr. Hull spoke to the committee on organization matters, discussing in detail the work of the congressional campaign committee, the National committee and the State committee and telling of plans for co-ordination of their efforts. MILL COORDINATE ORGANIZATIONS. The committee had hpfore it besides the matter of coordination of organizations, the appointment of a member of the natinal committee from Indiana. Edward G. Hoffman of Ft. Wayne, presented his resignation as a member of the national committee. Charles A. Greathouse, of Indianapolis, was expected to be named in his place. One of the most important questions before the committee was that of the (Continued on l'age Two.) FIRE, FANNED BY STIFF WIND WRECK 4 HOMES Firemen Compelled to Fight Hard to Check Fire’s Spread. Fire, fanned by a stiff breeze that was blowing over Indianapolis today, caused serious damage to four houses In the 1900 block on North New Jersey street. The blaze was first discovered on the roof of the house occupied by Mrs. Jacob J. Kasper, 1933 North New Jersey street, and Judge Hugh Z. Wiley, 1928 North New Jersey street. Judge Wiley turned in an alarm and before the flames were brought under control three other houses had been fired. Only the efforts of the firemen, who laid twelve lines of hose, prevented the fire from spreading. ROOFS BURNED FROM FOUR HOUSES. The roofs were burned off each of the four homes and the Interior of each was badly damaged, both by fire and water. Those living in the burned houses, besides Mrs. Kasper are: James G. Duncan, 1939 North New Jersey street; J. B. Van Arsdall and Harvey Cox, 1931 North New Jersey, and A. B. Carr, 1927 North New Jersey street. No one was at home at the Duncan residence and flremia were compelled to break in the doors In order to gain admission to the building. Mrs. Kasper was alone at her home when informed by Judge 'Wiley her house (Continued on I’nge Two.)

Stockingless Lillian Says Chi ‘Hick Town ’ FINDS TROUBLE IN ESTABLISHING ART OUTPOST Overalls Drape ‘ Wind Blew Inn *, Statues

CHICAGO, Fob. 16.—Lillian Collier, bob-haired and stockingless missionary of Bohemianism to this frontier community, branded Chicago as a “hick town” today. Lillian trudged westward from New York to establish in outpost of Greenwich Village. “I must preach the gospel of real life,” she vowed. Whereupon Lillian rented a twostory garage, set up a missoin to convert the heaten to art, and christened it “Wind Blew Inn.” She sells cakes and tea at 25 cents a copy, to pay the annoying overhead. “Bohemianism will come in Chicago,” she smiled. “But it will take years, per-

3 uiriatta flails Uirnts

INDIANAPOLIS, THURSDAY, FEBRUARY 16, 1922.

STATE DEMOCRATS GREET NATIONAL LEADER

' ... : Wei! known Democratic worker* of Indiana gTeetod Cordell nnll. National Democratic chairman, when he arrived here today to open the Democratic .State campaign. The picture Shows, left to right—-Charles A. (Jronth'Utse, formerly superintendent of public instruction and formerly Democratic State chairman, who la alafed to become Democratic National Committeeman from Indiana; Samuel M. Ralston, former Governor of Indiana, and who Is being urged to become a candidate for Senator Jeaplte his announcement that he will not run; Mr. Hull; L. G. Elllngham, former Secretary of State and now publiaher of the Ft. Wayne Journal Gazette and Bress, and Joseph E. Bell, former mayor of Indianapolis. 'The inset shows the fighting face of Mr. Hull who, since his elevation to the national chairmanship, has hurled some uncomfortable challenges at the Washington Administration.

LEWIS FORCES WIN IN SEATING KANSAS MINER DELEGATION Credentials Committee’s Report Is Adopted and Administration Leaders See Other Victories Ahead. HOWAT ROLL CAIjTvOTE TOMORROW

By GEORGE W. WILLIAMS. Three successive defeats in the national convention of the United Mine Workers were turned to victory for the administration of John 1,. Lewis at today's short session when the Lewis forces adopted the credentials committee's report seating twenty delegates In addition to the provisional delegation from Kansas. A Inst minute attempt of the Howat faction to upset the report availed nothing for the reason that Harry Flshwick, vice president of District 12. who led the attack, slept at the switch. His drive was not made until the convention had gone on record in favor of the committee report, and while he was permitted to speak he was rule! out of order. Following final adoption of the credentials committee’s report, the convention adjourned until tomorrow, when It Is expected that copies of the committee’s report will be in the hands of all delegates. Then the roll call vote on the question whether grievances of Alox Howat s Kansas “outlaw” miners shall have an airing before the convention is expected to proceed. The Kansas question once disposed of, the convention will be in a position to take up the matter of wages, the prime question before the delegates. The report of the credentials committee was short. The twenty-one contests were

Lewis Says Howat Defeat Amounts to Complete Bout “A complete rout” was John L. Lewis’ description of the defeat of the Alex Howat faction In the miners’ convention today. “The convention demonstrated in Its vote on tlie credentials report that It will support the administration nnd Its policies.” Lewis sold. “Howat and his men suffered a stinging defeat. It was more titan a defeat. It was a complete rout. It was more than they had looked for. Howat will be beaten on roll call tomorrow. The convention will vote him and the cause he claims to represent off the floor and out of the deliberations. The seating of sixty or seventy bona ilde Kansas delegates has taken the last straw from Ills grasp. F'rom now- on every administration policy will be supported by an overwhelming vote. There is nothing Ilowat can do but go back to Kansas.”

haps ages, maybe aeons. Who knows? But I am willing to sacrifice myself to bring it nearer. “You ask what is wrong with Chicago? This is it—Too many folk Just in from the corn belt. Really they drive cows to pasture by here every morning. “You kmnv there aren’t many real people here. I mean those who do the big things; those who see the light.” Lillian, in a batik frock and perched high on a step ladder, whitewashed the walls of her temple as she rambled on. She wore no stockings. Her toes protruded from sandles. “But,” she moaned, swishing the wall with the whitewash brush, “I'll try to struggle on and teach these people the

quickly disposed of. Debate was heard In only two cases and the committee supported In each. The report made no mention of the Kansas situation, hut Inas much as the provisional delegates from District 14 are seated, final adoption of the committee report means that they have a place In the convention and the Howat forces no right to the floor and no legal authority to participate in the deliberations. The credentials report is now in the hands of the printers and when it is returned to the convention tomorrow morning there will be a primed list of all the delegates and the number of votes they are entitled to cast on roll call. Under the rules adopted there could be no discussion of srale or policy until the printed report of the credentials committee is in the hands of delegates. This forced adjournment after an hour's work today until 9 o'clock tomorrow. ATTEMPTS TO RAISE KANSAS CASE. Following the adoption of the credential report,. Fish wick undertook to further force the Kansas case on the convention. lls was quickly Informed by Lewis that he was out of order, but privileged to ask questions. The point he raised was whether the committee had a record of the Kansas matter and whether the com(Continued on Page Two.) Newport (Ky.) Mayor, Police Chief Face Federal Charges NEWPORT, Ky., Feb. 10— Federal warrants were issued today for the arrest of Mayor Joseph Hermann of Newport, Frank Bregel, chief of police; Campbell County Attorney Conrad Meta, County Detective Ed (Buck) Hamilton nnd County Patrolmen James Scheernn and Charles Bullett. The warrants charge conspirney to violate a Federal law and relate to the prohibition amendment. Four hundred soldiers are doing guard duty at the courthouse. ST. LOUIS, Feb. 16.—Police Captain Patrick J. Kirk and Sergt. Charles W. Kelly today were accused of violating the Volstead law. Kirk and Kelly are alleged to have transported whisky to Herculaneum, Mo., last summer, wherevthey went to testify in a murder trial. Both denied the charges. Neither have been suspended. They will be tried by the board of police commissioners next Teusday.

value of esthetic effectiveness. Chicago police have the souls of village constables. Cops blew in “Wind Blew Inn” the other nig(it and raided the place. "Look it, look It,” she confided pointing- to two statues, dressed all up in overalls. “They made me drape those nudes. Art, where art thou? Gawd!” Lillian must answer soon on charges of serving a stronger potion than tea in her cracked teacups. An old French proverb, she qatd, explains the apparent failure of Chicago to accept a Greenwich Village. The proverb: “You can take a hick out of the country, but you can't take the country out of a. hick."

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L( DIE FACES BIG FIGHT FOR RE-ELECTION His War on Former President Makes Issue National. WASHINGTON, Feb. 16.—Senator Henry Cabot Lodge faces the battle of his career in his campaign for reelection. The flglit against Senator Lodge is becoming a national issue rather than one confined to his State — Massachusetts. Democratic national leaders are trying to get together on a plan to give Senator Lodge a dose cf the "political downfall medicine” he was instrumental in administering to former President Wilson. At present Senator Lodge hns an advantage through a division in Democratic ranks as to how the atiack of revenge shall be launched against him. COX FAVORS ATTACK ON LEAGCK ISSUES. James M. Cox, Democratic presidential nominee last campaign, who bitterly assailed Lodge as “the arch-conspirator of the ages," favors attacking the Massachusetts Senator because of his work In defeating the League of Nations, and plans to make a personal invasion of the State. Senator Waish, Democratic Senator from Massachusetts, who is in close touch with the political situation there, hns let it be known he believes Cox would not take any vistes from Lodge by talking the league in the State. Senator Lodge's position in his State proLubly would be strengthened should he obtain prompt ratification of the arms conference treaties in the Senate, observers believe. Should any of the treaties fail. Lodge could he charged with falling to provide a substitute for the Wilson league. LODGE FAILS TO GET NAVY YARD MEN WORK. With unexpected rapidity anew Issue has sprung up 4n the Lodge campaign—the refusal of the Admintstration to allow reconditioning of the Leviathan In the Boston Navy Yurd where many men are out of work. The workers looked to Lodge, one of the most powerful figures in tlje Administration, to get them the contrad. He failed and an top of this more workers at the yard probably will be laid off because of the arms conference treaties. Senator Lodge, it is said, is confident he can win this fall. Some of his closest friends claim he is overconfident. At present the situation has not developed to the point where it is possible to predict who will be his Democratic opponent, although former Representative Fitzgerald, former mayor of Boston, Is sutd to be in the lead. He gave Senator Lodge a good race when he last rnn for re-election. Other possible candidates are Mayor Curley of Boston, John F. Morse, a prominent business man, and Sherman W. Whipple, one of the leading lawyers of the State. California Feels Effect of Slight Tourist Travel LOS ANGELES. Cal.. Feb. 16.—The Southern California tourist crop is somewhat frost-bitten. This was revealed today in a check of the various railroads nnd agencies having to do with the annual winter influx of Easterners. The railroads said tourist travel wag 25 per cent below last year. The Chamber of Commerce said it was fully 40 per cent. BRYSON TO BE GUEST. * Postmaster Robert 11. Bryson will be the guest of honor at a banquet to be given Feb. 22 at the Chamber of Commerce by the clerks, carriers and supervisors of the Indianapolis postofflce.

PRESIDENT MAKES DECISION KNOWN IN LETTER TO CONGRESS Copies Are Addressed to Chairman of Ways and Means Committee of the House. POSTPONEMENT HELD ALTERNATIVE WASHINGTON, Feb. 16.—President Harding favors the imposition of a sales tax to provide a soldiers’ bonus. The Administration’s decision was made known to Congress in a letter addressed today to Representative Fordney, Republican, Michigan, chairman of the House Ways and Means Committee. In his letter the President told Congress if the sales tax could not be enacted to finance cash payments to veterans of the World War, the “bonus” bill should be postponed.

Says Mellon Could Be Impeached for Violating Statute WASHINGTON, 16.—Senator “Tom" Watson of Georgia, told in the Senate late yesterday, how other persona might have Andrew W. Mellon, Secretary of the Treasury, arrested for violation of a statute enacted in the administration of George Washington. Watson said Secretary Mellon might be arrested on a warrant sworn out by any citizen, sent to prison or be Impeached under a law enacted by the first Congress and embodied In section 243 of the revised statutes, providing no man should hold the office of Secretary of .he Treasury or Controller of the Currency while engaged in commerce or business. “Mr. Mellon is violating this penal law every day.” the Georgian said. Watson declared President Grant withdrew the nomination of A. T. Stewart as Secretary of the Treasury on- being advised of the statute. WASHINGTON, Feb. 16.—Andrew D. Mellon denied today that he was ineligible to serve as Secretary of the Treasury. While declining to issue a tormal reply to charges of Senator Watson, Democrat, of Georgia, the Secretary of the Treasury said he was not "disturbed" by these statements because he had retired as president and director of all banks In which he was Interested before becoming a member of the Cabinet. Mellon explained that his financial" connections were now those of a stockholder and said that before he accepted the portfolio as Secretary of the Treasury he had consulted with the late Senator Knox of Pennsylvania and had been assured he would be eligible if he retired from actual control of the companies in which he had large

LEAGUEBOARD LAYS PLANS FOR STATE SESSION Women Voters of Indiana to Meet at Lafayette May 9-11. Plßcusglon of the State convention of | the League of Women Voters, to be held In Lafayette, occupied a large part of the session of the all-day business meeting of the league board of directors In the Claypool Hotel today. The convention dates have been changed from those formerly announce to May 9-11, Inclusive. ’ The opeulng regular session of the conj vention is to be on the evening of Tuesday, May 9, when a mass meeting is | planned with prominent speakers on the ! program. Prior to the banquet a meet- | ing of the State board will be held. An i evening forum Is scheduled for Wednesday and a brilliant banquet for the closing event, Thursday night. An Interesting feature In connection with the arrangements Is the special post-convention motor trip to Turkey Run, on May 12. All the league delegates and visitors will be invited to participate la the trip to Inspect the beauties of the State park. Mrs. Walter Gr'eenough is State chairman of the convention cbmmittee with Mrs. T. A. Stuart as local chairman. Headquarters are to be at the Hotel Fowler. The State convention committee chairmen announced today include Mrs. Greenough, program and procedure; Mrs. Ora Ross, Rensselaer, constitution; Mrs. B. B. White, Terre Haute, resolutions; Mrs. ,T. C. Boss. Elkhart, nominating; I Mrs. R. K. Bedgood, Lafayette, credentials ; Mrs. Blanche Ruffner, Lafayette, banquet; Mrs. Sam Cahn, Lafayette, local arrangements; Mrs. A. C. Marks, Lafayette, hotels and entertainment. Mrs. Richard Edwards of Peru, who presided at the meeting, announced that a cable had been received from Lady Astor saying that she accepted the invitation to attend the national league convention to be held April 28-29 in Baltimore. Fate of Submarine Is Made Uncertain by Fierce Blizzard ' CAPE MAY. N. J.. Feb. 16.—One of the v/orst blizzards In years Is raging off the New Jersey capes, causing fears by Navy men today that a sutmarlne, scheduled to leave League Island navy yard last night for New London, Conn., may be caught in difficulties. •Toe coast guard cutter Kickapoo waits with full steam up, ready to respond to any distress signnl. Anew storm threatens the northern Atlantic coast, the TVeather Bureau warned. The storr.i, now oft Cape Hatteras, is moving rapidly northeastward. Accompanied by gales, it will hit the coast this afternoon or tonight.

HOME EDITION TWO CENTS PER COPY

“Let me repeat,” the President said, that I believe the American people will accept the levy of a general sales tax to meet the proposed bonus payment * • • If Congress will not adopt such a plan it would be wise to let the legislation go over until there Is a situation which will Justify the large outlay.” The President called attention to the fact that the Government is spending $400,000,000 a year for the relief of disabled veterans and assured Chairman Fordney that “such delay (In the “bonus”) as will enable Congress to act in prudence for the common good, will give no suggestion of unmindfuiness or Ingratitude.”

TEXT OF LETTER

The text of President Harding's letter follows: “My Dear Mr. Fordney. “In accordance with the promise to yourself and your associates on the Senate and House committees, charged with the responsibility of formulating the proposed bonus legislation. I have carefully looked into the program of taxation which has been suggested. In addition thereto, I have made Inquiry Into the feasibility of IssulDg either shortterm treasury notes or long-term bonds to meet the financial obligations w h the proposed legislation will Impos' Is not possible to commend, to you e..—:r of the plans suggested. “It continues to be my best judgment that any compensation legislation enacted at this time ought to carry with It the provision for raising the needed revenues and I find myself unable to suggest any commendable plan other than that of a general sales tax. Such a tax will distribute the cost of rewarding the 1 ex-service men in such a manner that it ; will be borne by all the people to whom ! they served, and does not commit the | Government to class composition of taxes or the resumption of the burden repealed, the maintenance of which can oe justified only by a great war emergency.” “It is fully realized ho# great Is the difficulty which confronts the Congress in solving this difficult problem. I am aware of the strong sentiment in Congress in favor of this adjusted compensation. I have spoken approvingly myself, always with the reservation that the bestowal shall be made when it may be done without such injury to the country as will nullify the benefits to the exservice men themselves which this expression of gratitude is designed to bestow. “It is not an agreeable thing to suggest that action be postponed again, but frankly, I do not find myself favorable to the piece-meal payment plan, which is manifestly designed to avoid embarrassment to the treasury. The long-drawn-out payments will not afford an effective i helpfulness to the service men. | “We have no serious problem in begin--1 ning the allotments of public lauds and j the Immediate issue of paid-up insur- ; ance. The real difficulty lies in the payment of the cash bonus. Rather than provide that the maximum cash payments shall extend over a period of two and one-half years, it would be a vastly better bestowal If we could await the day when we may safely undertake to pay at once tn full, so that the award may be turned to real advantage. “Inasmuch as the treasury Is to be called upon to meet more than six billion dollars of maturing obligations in the sixteen months Immediately before ns. it is not possible to recommend the issue of several hundred millions of additional short time notes. Further excessive borrowing would likely undo all that has been accomplished in readjusting Interest rates and stabilizing the financial world but vitally essential to the resumption of industrial and commercial activities. "Granting that it is not fair to oppose any proposed plan without offering a substitute, let me repeat that I believe the American people will accept the levy of a general sales tax to meet the proposed bonus payment, and we should contribute thereby no added difficulties to the problems of readjustment. If Congress will not adopt such a plan, It would be wise to let the legislation go over until there is a situation which will Justify large outlay. We are driving for large economics, we are pushing the disposition of surplus war property and have under consideration other propositions which ought to prove a great relief to the Federal Treasury. It is not consistent to enact legislation in anticipation of these things, but it would be a prudent plan to awnlt the development*, and I can see in such a postponement no lack of regard for the service men In whom all the American people are *o genuinely interested. “I take that the ex-service men themselves are no less concerned than others about restoration of business and return to abundant employment. Those of their wounded or sick comrades who were impaired by their war service are being cared for with the ifiost liberal generosity the Nation can bestow. There are here and there exceptional cases of neglect, and attending complaint, but we are seeking them oat and correcting with all possible speed. It has not been possible to meet all the demands for special hospitalization, but we are building to that end, without counting the cost. We are expending $400,000,000 a year In compensation, hospitalization and rehabilitation. “These thingp are recited to reassure you that such delay as will enable Congress to act in prudence for the common good will have no suggestion of unmindfulness or Ingratitude. "Eery truly your, "Warren G. Hardin*. **

NO. 240.