Indianapolis Times, Volume 45, Number 14, Indianapolis, Marion County, 27 May 1933 — Page 2

PAGE 2

INCREASED BUYING POWER OF WORKERS IS PRIMARY AIM OF RECOVERY BILL Fattening* of Pay Envelopes and at Same Time Building Up of Industries That Provide Them Will Be Attempted. BY RUTH FINNEY, Times special Writer WASHINGTON Mav 27 — During the last three years the American ])■ ip.' ha e told each other ovt-i and over, with growing emphasis, that one ", ~ mu; : h found to increase the purchasing power of workei and huv- proceeded to do nothing about it because they didn't know what to do The national recover. 4 act before congress is primarily an attempt to me ii, •iw. h a pra al. well-thought-out plan for fattening v. rk . pay-em lopes and at he im< time, for strengthening instead oi destroying the industries that provide them. Ti. men vno dr v. the national recovery act after weeks of work suo (. c ( . ;■ iia : m.aan,> chan a for labor, which may revolutionize industrial history

Th<* recovery net provides, as the prico c,f permitting employers to stabilize their inuu-tru throuch trade agr.nte. that labor shall have the right to organize and bargain collectively and that whether i! takes advantage of this right or not. it shall be paid a decent living wage for a work week short enough to give every one a chance at a job. Turn to Farm Bill It proposes to do for the worker in th cotton mill, the shoe factory, th" steel mill, th" cannery, exactly W hat :he farm bill is to do for'the farmer—in fact, the farm bill and the Industrial recovery bill are considered by the administration as twin halves of a complete program for bringing back good times. The farm bill will help the tanner by raising food prices. The industrial worker, therefore, must have mor : monev with which to pay the increased price for food. The added money the industrial worker pays for food increases the farmer's ability to buy factory products, and secures the city worker in his job. When the thirty-hour week-mini-mum wage bill was being discussed before the house, labor committee, a stream of employers appeared and testified that they would simply lay off men, in some cases would close down their factories, if labor costs were thus increased, even though like conditions were placed upon their competitors. Codes of Fair Competition. All anticipated that increased use of machinery would continue the deadly competition which had been driving down labor standards for three years. The recovery bill permits employers in each industry to enter into co-operative "codes of fair competition," agreeing on wage and working hour scales, total production and juices. These codes are to be enforceable by the government just as laws are. President Roosevelt has been impivsscd deeply with facts showing that if 10 per cent of an industry insists on hammering down labor costs to try to underbid other firms, the b.'st-intentioned employers in the world are forced to adopt lower scales or to close their plants. Employer agreements, even though they stabilized employment, would be a serious menace to workers if they were not accompanied with safeguards. The national recovery act goes so far in providing these’safeguards that it actually advances the position of labor beyond anything it has known in the past.. Employes Safeguards The act provides that "Every code of fair competition, agreement and license . shall contain the following conditions: T Employes shall have the right to organize and bargain collectively through representatives of their own choosing ••2. No employe and no one seeking employment shall be required as a condition of employment to join any organization or refrain from joining a labor organization of his own choosing ••3 Employers shall comply with the maximum hours of labor, minimum rah f’paj and other working conditions approved or prescribed bv the President." In each industry workers and employers will be given a chance to reach mutual agreements suitable for these industries as to working hours and rates of pay. Administration Important If agreements are reached, the President will review them and if he does not approve the standards fixed will order them raised or lowered. If agreements are not reached the President is authorized to invest:.ate labor conditions in the industries affected, and prescribe codes of his own, after public hearings. which shall have the binding effect of law when made final. The effectiveness of these provisions in restoring purchasing power will depend, like all others, upon the quality of administration. But the act. as it is written, gives broad power to be used in behalf of workers, and guarantees the safeguard of collective bargaining if administration should prove disappointing m other respects NEW YORK WILL HAVE NO NEW SKYSCRAPERS So Says Art Critic, Asserting There’s Enough for Generation. Bn ii. .•••</ Pr< ** PARIS, May 27. —No more skyscrapers for New \ oik, and nothing' to be done about it, according to Albert E. Gallatin, New York art critic now here to assist in a portrait project for the new American embassy. "There will be no more skyscrapers built in New \oik for Another generation." Gallatin said, •but there already are enough to last that length of time, and maybe things will have changed in another decade and we shall be wanting something different." Gallatin is on the Paris section of the Paris chancellery portrait committee and has. himself, do- i nated a copy of Gilbert Stuart's portrait of his great-grandfather, Albert Gallatin. American minister to France in the time of Louis XVIII -Nearly forty pictures are required in all,” ’he said Twelve already are in the possession of the committee, and ten others have been promised definitely Descendants have been difficult to. find in some instances.” i

MORGAN FIRM DENIES ACTS TO ROLE POLITICS Defense Against Charges of Domination of Economic System Mapped. (Continued From Page One) existed at the time, and that full responsibility for their escape must fall on congress. "What would you do under the circumstances—pay more than the •aw requires?” That is the substance of their reaction and response. Even when it i.s pointed out that Charles Francis Adams became a stock beneficiary only four weeks b fore he entered the Hoover cabinet as navy secretary, and that means prolonging the period under which back losses could be deducted indicate premeditation, the partners declare no ulterior motives were present. Grip on Power Field I lie Morgan group say they are not excited over revelations of the extent of tlieir financial, public utility and industrial spread and control. Despite interlocking network under which the nineteen partners sit on the boards of 167 corporations, they deny any preponderance of power. I hey say those companies want the presence and advice and assistance of a skilled financier. With regard to their grip on the power field, they maintain that stock ownership and other forms of connection do not mean as much as some people think. Each coi poration is separate and autonomous, they contend, and friction and differences often appear, although every effort is made to compose them harmoniously. Glass, Pecora Clash BY THOMAS L. STOKES l niud l’ress Stall Corresooncicnt WASHINGTON, May 27. The senate investigation of J. P. Morgan & Cos. adjourned Friday until next week in the wake of an explosive controversy about the scope of revelations into the powerful banking house. The unexpected climax brought the audience to its feet just as Ferdinand Pecora, committee counsel was about to reveal another list of "friends” of J. P. Morgan & Cos., high in financial and public life, who were "let in" on another of the now famous stock deals. The dramatic personal argument was between Pecora and the fiery Senator Carter Glass <Dem., Va.), who repeatedly lias challenged Pccora's searching inquiry into the House of Morgan. Challenged by Glass The Virginia senator flatly declared Pccora's employment never was approved by the committee. Glass objected that the ItalianAmcrican lawyer had not advised the committee in advance what facts he sought to reveal. "I did not seek this task," Pecora shouted. "I appreciate very much the honor and dignity of working for a senate committee. The compensation cf $255 a month is no incentive for me to continue the inquiry.” Senator James F. Byrnes (Dem.. S C.>, an administration leader, saved the situation by suggesting that the committee adjourn until next Wednesday as previously arranged. Glass edged his way through the crowd muttering: "Just like a circus.” ‘Circus,’ Says Virginian Previously, when Pecora's defense was hailed with spirited handclapping from the audience. Glass had snarled: "There it is! We've been running a circus' All we need now is peanuts and pink lemonade.” This clash of personalities submerged for the moment the revelations of the day. George W. Howard, genial president of the United Corporation, a Morgan holding company, admitted his corporation controlled 22 or 23 per cent of the electrical energy of the United States and 22 per cent of the gas properties. The United Corporation's tentacles reach into a dozen states. The company serves nearly half ! the population of the United States, j 55.272.000 persons, Howard testified, j KAUTSKYS DRILL FOR FT. WAYNE INVASION The Kautsky A. C.s. Indianapolis entry in the Indiana-Ohio Sunday league, will journey to Ft. Wayne Sunday for’ a league game. Extra practice has been held by the locais this week. The Kautskys will have to be at their best against the Wayne nine, which downed Dayton Marcos last Sunday, 6 to 1. Kautsky players are requested to meet at L. Strauss, store at 9 a. m. Sunday. Rasty Bader is slated to hurl for the Kautskys against Ft. Wayne. Manager Frank Kautsky plans to bring one cf the strong clubs of the league to Indianapolis for a game at Pennsy June 25.

YOU JUST CANT DODGE MR. MORGAN

He Has a Finger in Everything You Do, Everything You Buy

.Morgan partners—Below, left, Henry Sturgis Morgan and George Whitney. Above, left, Henry P. Davison and F. D. Bartlou'. BV EARL SPARLING Times Snec.al Writer NEW YORK, May 27.—" J. P. Morgan? What's my relationship with J. P. Morgan?” Mr. John Doe peered suspiciously at/his visitor. It was 6:30 in the morning, and there still was sleep in Mr. Doe's eyes. He stood there bewilderedly for a moment. Then he grinned and turned his head toward the kitchenet. "Hey, Jane, get a load of this. This guy wants to know what’s my relationship with J. P. Morgan” Mrs, Jane Doe did not trouble to turn her head. "Tell him you are uncles,” she suggested with distant peevishness. "The question is intended seriously,” said the visitor. "What is your relationship with J. P. Morgan?” “Now, listen,” snapped Mr. Doe. “I ain’t got time this hour of morning for any screwy questions. I’m due at work at 7.” “The question is not screwy,” persisted the visitor. "It is sociological” “Soci—what?” echoed Mr. Doe. "Sociological. You have been picked as an average citizen.” The visitor glanced casually about the basement apartment. “You have to burn your lights on a morning like this?” “Sure. We have to burn them most of the time. This is a pretty gloomy hole without lights.” a a a “\7’OU get your electricity from X the Edison Cos., of course?” "Sure,” said Mr. Doe. “You know any other place to get it?" "A Morgan company,” mused the visitor as if making mental notations. "The New York Edison Cos. is controlled by the Consolidated Gas Cos. George Whitney, a Morgan partner, sits on both boards.” "I begin to catch on,” said Mr. Doe? ‘Hmmm!” ' "What are you having for breakfast?” asked the visitor. "Hey, Jane,” called Mr. Doe. “What you fixing for breakfast?” Mrs. Doe came out of the little unventilated kitchenette wiping her face on her sleeve. “What do you think?” she said. “Orange juice,” toast and coffee.” "I ain't a very heavy eater,” apologized Mr. Doe. "That's our usual breakfast. A good cup of Chase & Sanborn coffee is all I need to set me up ” "Standard Brands,” mused the visitor. "What?” •‘Standard Brands. Standard Brands control Chase & Sanborn. Also Fleischman Yeast and Royal Baking Powder and Magic Baking Powder.” "Morgan again?” asked Mr. Doe. "Two Morgan partners sit on the board of Standard Brands.” tt tt a HMMM," frowned Mr. Doe "The cofiee is a clear hit and the yeast, too,” He hesitated. "You see, I been taking a cake of yeast every day for my complexon. The wife, too.” The visitor smiled. "It is possible. so to speak, to eat a Morgan pickle. Standard Brands controls the Widlar Food Products, which distributes olives, pickles, salad dressing, mayonnaise, sauerkraut, condi" . . . “Wait a minute.’’ interrupted Mr. Doe. “I’m getting more and more interested I'm going to call the office and tell them I'm ill. I'll go down late.” When Mr. Doe had returned from the pay telephone out in the hall, the visitor smiled and said, "Another nickel for Mr Morgan.” "What do you mean?” Merely that the House of Morgan has an important interest m the American Telephone & Telegraph Cos., which controls thirtyone operating companies, including the New York Telephone Cos., Morgan partners have given up their seats on the A. T. & T. board. "Two of them still sit, however, on the International Telephone it Telegraph Cos. which controls operating companies in Spain, Austria, The Argentine, England, Poland. Chile, Turkey, Germany, China. Japan and a map of other countries.” a a u SOME company,” said Mr. Dog. "but I guess it is one that doesn't affect me." •Do veu ever send telegrams?" inquired the visitor. "The I. T. & T. controls the Postal Telegraph Company." “Well. I’ll be darned,” ejaculated Mr. Doe. "What a muddle. How do they ever keep it straight? Wait a minute till I put my coat on. I want to hear more.”

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THE INDIANAPOLIS TIMES

J. P. Morgan (in center before the House of Morgan) and, left. Thomas W. Lamont and Edward T. Stotesbury, partners. Other partners not shown in this layout are Charles Steele. Thomas Cochran, Arthur M. Anderson. William Ewin, Harold Stanley, Thomas Stilwell Lamont, Thomas Newhall, Edward Ilopkinson Jr. and Charles Denston Dickey.

“You have a nice-looking suit there?” observed the visitor. “Is it a Morgan suit?” “Is he in the cloak and suit business, too?” cried Mr. Doe. “Not exactly,” explained the visitor, “but the House of Morgan has an interest in the Associated Dry Goods Corporation, which operates eight department stores including Lord & Taylor’s and James McCrery & Cos., in New York. William Ewing, one of the twenty Morgan partners, is a director both of the Associated and Lord & Taylor's.” “Well." said Mr. Doc. “if things keep up the way they're going I won't be able to buy a suit or even a necktie from Mr. Morgan. In fact, I'm thinking of buying a mail order suit the next time.” “There is a Morgan partner on the board of Montgomery Ward & C 0.,” smiled the visitor. a a a WELL, well.” sighed Mr. Doe. “Looks like there are Morgan partners anywhere you turn. Come on and I'll drive you down. You can tell me some more on the way.” “What kind of a car?” asked the visitor. "A 1925 Chevrolet,” grinned Mr. Doe, “but in rattling good condition.” “When better cars are built.” grinned the visitor in turn, “Mr. Morgan will build them.” "What, even my auto?” "Why, certainly. The House of Morgan has owned half of General Motors ever since W. C. Durant, the founder, wa s ousted in 1920.

Veterans to Register Here for Forest Army Jobs

Ex-Soldiers Urged Not to Go to Washington to Enlist. Unemployed World war veterans desiring jobs in the nation's forest army are urged not to go to Washington, D. C„ to apply, but to remain at their homes. A radiogram was received by John H. Ale, manager of the regional office of United States veterans' bureau on Cold Springs road, per-

The City in Brief

Clothing valued at $45 was stolen Friday night while he was away from home. Clifford Collins, 1816 1 - Pierson street, reported to police. A man who represented himself to be a Philadelphia attorney engaged in settling an estate stole $7.50 from Mrs. Pearl Williams, 2539 College avenue apartment 10, during a call Friday night. * Clothing valued at approximately S2OO and S2O in cash were stolenby burglars Friday night at the Efrovmson dry goods store. 913 South Meridian street.

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The Du Pont Corporation owns the other half. Through association with the Du Ponte the House of Morgan is in close touch with a vast array of specialized industries, including cellophane and gunpowder." “Hmmmm. Even my Chevrolet, hey? I guess the only thing I could do to hurt Mr. Morgan would be to ride the subway.” "Not at all,” sighed the visitor. “J. P. Morgan & Cos. has been the financial big brother of the Interborough for years. It was the House of Morgan that floated $170,000,000 of bonds for the Interborough in 1913. It has kept a close finger on the subway situation every since.” tt tt TVifITR. DOE was plainly getting IVA g ro ggy > but he remembered in leaving the house to call to Mrs. Doe, who had gone back to bed, to please see that the radio was repaired during the day. “Aunt Minnie is coming to town to visit us,” he explained. “She loves the radio.” “Your Aunt Minnie shares her appreciation of the ladio with some interesting persons,” said the visitor. “Up until recently, when the government forced a change, a large block of the Radio Corporation of America was owned by the General Electric Corporation. j “Owen D. Young was president of the Radio Corporation and chairman of General Electric. There still exists what you might call a very friendly feeling between the two corporations.”

mitting his bureau to establish a registration department for veterans desiring to work in the forests. Selections for the forest army, according to the information, will be based on state and local quotas of the civilian conservation corps. “Nothing can be gained by coming to Washington," the radiogram warns. Ale said registration of the men would begin immediately at the Indiana division of the veterans’ bu-

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“And Morgan ...” “Oh, Thomas Cochran, one of the twenty Morgan partners, sits on the General Electric board and the corporation keeps its money deposited with the House of Morgan.” “Aunt Minnie . . . “began Mr. Doe. “May arrive in town on a Morgan railroad," finished the visitor. “Morgan partners used to sit on the board of the New York Central and the New Haven. They still have places on a dozen other roads, including the Santa Fe, the Northern Pacific, the Philadelphia & Reading, the Chicago & Erie, the National Railways of Mexico, the New York & Long Branch, etc. “Also, they have places on the Baldwin Locomotive Corporation board and the boards of the Pullman Company and Pullman, Inc. Also on the board of the American Car and Foundry Corporation.” tt tt tt “TX EGULAR railroad fellows, ain't they?" muttered Mr. Doe. Mr. Morgan and his partners must be pretty sharp business men." "You get the idea. Mr. Doe. They've got their fingers in nearly anything you could mention. Two professors at Columbia university, Adolf A. Berle, Jr. and Gardiner C. Means, have just published a book called “The Modern Corporation and Private Property.” “In it they list the 200 largest nonbanking corporations in America whose combined assets in January, 1930, totaled $81,000,000.000 or nearly half the corporate wealth of the nation.

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Other Morgan partners—Below, left. Junius Spencei Morgan and Russell C\ Leffingwell. Above, left, Horatio Gates Lloyd and S. Parker Gilbert. “Fifteen of these 200 corporations have more than $1,000,000.000 of assets each. The House of Morgan demonstrably has a working interest in six of these fifteen.” "They get arouVi, dftn’t they,” muttered Mr. Doe. "The six corporations mentioned are General Motors, General Electric, United States Steel. American Telephone and Telegraph, the Commonwealth and Southern Power Corp., the New York Central and Consolidated Gas. “The assets of th< nearly twelve and a half billion dollars. But that is only a drop in the bucket, Mr. Doe. The Morgan partners sit on the boards of eighteen of the 200 largest corporations and they are known to have fingers in many additional, although the connection is hard to prove.” a tt tt “VTOU meaon they own that X much money,” muttered Mr. Doe. "Not at all.” said the visitor. “You don’t have to own much stock to be a director of a great corporation. "Take the United States Steel Corporation, which J. P Morgan the elder founded. Professors Berle and Means have shown that in 1927 Mr. Morgan sat on the board by owning only 901 shares of the stock. There was one director on the beard—J. 8. Phipps—who owned only one share.” Mr. Doe was silent for a long while. Then he said. "Why. maybe I could get to be a director myself, hey?”

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MAY 27, 1933

EX-RECEIVER OF BANK TO FACE COURT INQUIRY Payments by Brandt Downey Are Questioned by Judge Cox, (Continued From Page One) show thal the bonds, including those of Downey for Ins receivership, were written through the .-.sency of Cooiing, ( . Mu C . in which he held stock. Since th<: court hear in Cox has the Fidelity and Dt posit Company of Maryland ior Si no .000 on the officials' bonds. Directors are being Mie.i for SI.OOOOO on their personal liability, and stockholders are being sued to recover $50.0 ■ in dividends. Downey is b ar . in the amount of $150,000. reprewnted in a $125,000 bond niven the . ■ :rt for his receivership. and a $25,000 banker's blanket bind. Painters report contains the declaim on th.-.t D y's payment .it collateral. of which mar;, half is alleged to have been plcd-wd illegally, incurred a large p. naal loss" to the receivership funds. Interitcd Potential Loss The securities which had been pledged on the loan irom the Fletcher American row are carried on Iho books at a value of $358.395.96. the report s res, "Therefore, it is certain that tho receiver inherited a large potential loss when he paid the Fletcher American n-r too collateral, the amount of wh’.en can not. be calculated until complete liquidation has been ehi-xd." (■'<■ report states. According to the report, based on receivership records, the Fletcher American tot J; c ': .730.: from tho Washington banks cf po. it account and proceeds of .V 3.633.14 from the collateral, at time of the failure of the Wa.-hinei.on bank. Oct. 27, 1930. On Dec 11. 1930, Downey paid $12,875.70 m cash, and on Dec. 31, 1930. made a final payment of $142,470.28, according tu the report. Depo-it Called Illegal The collateral wiiich secured the loan was real estate mortgages, "illegally deposited, because they previously had been pledged to the Washington Bank and Trust Company, trustee, to secure certificates issued by the Washington Company, according to ihe report The alleged illegally deposited mortgages totaled $220,077.31, which now are carried on the books at 5187.090.19, according to Painter’s audit. im . uA V i Ll.s’ LIX TABLETS IH DIGEETIO N \f Dm:' storeFIDELITY MEIiH INK CO.