Indianapolis Times, Volume 45, Number 205, Indianapolis, Marion County, 5 January 1934 — Page 14

PAGE 14

KEEPING UP WITH THE LATE NEWS OF CONGRESS

NRA IS URGED TO AID SMALL BUSINESS MEN Senator Nye Attacks Large Industries for Unfair Practices. BY HERBERT LITTLE Timr* Staff Writer WASHINGTON. Jan. 5. Two cedes now before NRA, those of the electrical manufacturing and play-ing-card industries, will determine the new deal's attitude toward small business men faced with big business competition, in the opinion of Senator Gerald P. Nye (Rep., N. D ), who is taking an active part in the negotiations. Meanwhile' President Roosevelt is expected to announce creation of an NRA division to protect “the little fellow,” probably before these codes are passed upon. Senator Nye has taken his complaint against the electrical manufacturing code, reopened yesterday, directly to NRA Administrator Hugh Johnson in a letter urging him “not to permit the General Electric Company and its subsidiaries to use the recovery administration as a cloak for the continuation of unfair practices synonymous with the vicious elements in American business.” Price-Fixing Proposed Ke also attended tw'o sessions of the code hearing at w'hich large groups in the industry, including General Electric, proposed a system of price-fixing, while the independents asked amendments to extend competition. Senator Nye has also espoused the cause of small business men in the playing-card industry, whose code, up for hearing next week, involves a direct reversal of the electrical controversy. Here the largest concern in the industry, the United Riates Playing Card Company, has protested and held up approval of a code drafted by six smaller companies. The small companies are seeking to end a situation in which competition has driven the price of a pack of cards down from an average of 40 cents, including the 10-cent federal tax, in 1928, to 15 cents now, including the same tax. Their figures, says Senator Nye, indicate their business was gaining heavily until 1928-29, when drastic cutting began and the United States Company began taking a larger share of Ihe business. It now is reported to have 61 per cent of the total. Johnson Named Assistant General Johnson and NRA general counsel Donald Richberg challenged the legality of the National Electrical Manufacturers’ Associations proposed code amendment which would have given the code authority almost unlimited power to fix “fair prices” for electrical appliances, light bulbs and other products. Mr. Richberg, questioning Francis Neagle of the code authority, brought out that the amendment would restrict only unfairly low prices and did not extend to unfairly high prices. Another new element was introduced into the NRA setup today when Leon Henderson, Russell Sage foundation price research expert, took over an unpaid job offered him by General Johnson as special assistant. Mr. Henderson, a leader in protests on behalf of consumers, will have a free hand to investigate the whole code situation from the inside, and to report as he sees fit. His work will be separate from that of the consumers’ board.

U. S. UNEMPLOYMENT INSURANCE PROPOSED Bill Asks Graduated Surtax on Incomes Over SI,OOO. By United Press WASHINGTON, Jan. 5.—A bill which would establish federal unemployment insurance was introduced in the.house today by Representtive Raymond J. Cannon (Dem., Wis.). The insurance would be financed by levying a graduated surtax on incomes of SI,OOO or more a year. The proposal, Mr. Cannon said, is intended to provide a system for relief of persons normally employed who are unable to earn a living for themselves and their dependents in periods of industrial depression. The amount to be paid to unemployed persons is based upon the amount paid into the federal treasury in the form of surtaxes during good times. Planned Bill Would Hit Copra By I nitrd Press WASHINGTON. Jan. s.—Representative Edward R. Burke. (Dem., Neb.) planned today to introduce a bill in the house which would impose a virtual embargo on importations of cocoar.ut oil and copra.

Retain Circuit Racing as State Fair Feature

Board Reaches Decision in Discussion of 1934 Plans. Grand Circuit racing will continue to be an entertainment feature of the Indiana state fair. This decision was announced today by Lieutenant-Governor M. Clifford Townsend, commissioner of agriculture and fair board secretary. It was reached by the state board of agriculture at their meeting yesterday afternoon when plans ior the 1934 state fair were discussed. Fair premiums budget was set at $76,237.23. the same figure as in 1933. It is hoped, however, to trim, $5,000 from the total for 1923. which was $91,000, Mr Townsend said. Mrs. Calvin Perdue. Sheibyville, home town of Pleas Greenlee. McNutt patronage secretary, was selected to succeed Mrs. L. T. Foster,

“BABY CONGRESSMAN' AND BRIDE

A “baby congressman” and a newlyw'ed both, Representative Joseph P. Monaghan of Montana is shown with his bride of a w’eek as he arrived in Washington for the opening of congress. She is the former Catherine McDermott of Pioneer City, Mont.

Shoals Plant Begins Job of Making Cheap Power

Consumers in Tennessee Valley Expect to Save Thousands. [ By United Pres* WASHINGTON, Jan. s.—Muscle Shoals hydro-electric plant, wartime white elephant, began to hum today as a major part of President Roosevelt's new deal, ready to supply low-cost electricity to householders of the Tennessee valley. Contracts signed between the Tennessee valley authority and pow’er companies in Tennessee, Alabama and Mississippi provide a market for all the electricity the vast plant can produce for the next five years, or until Norris dam is completed. The program calls for the sale of electricity at a reduction of 28 per cent under the “inducement” rate, and 15 per cent under the “immediate” rate, which means—in less technical language—a saving to electricity users in the valley of $415,000 a year. Rates National Index These rates are considered significant to the whole nation, because President Roosevelt has signified his intention of using Muscle Shoals electricity prices as a “yardstick” to measure electric light bills elsewhere in the country. The agreements between the TVA and the pow’er companies provide for:

Purchase by the TVA of $2,900,000 worth of transmission lines, giving it direct access to electricity markets, and obviating what might have been an enormously expensive duplication of transmission equipment. Sale to the TVA of certain municipal electric systems in Mississippi. Sale to certain municipalities in Alania of electric systems by the Alabama Pow’er Company. Option to the TVA for purchase of municipal systems in some Tennessee counties. The contracts also provide for the technical details of delivering federal electricity over private power lines and for sale of electric household equipment through the Electric Farm Authority, subsidiary of thq TVA. Duplications Avoided Concerning the advantages of the contracts. David E. Lilientlial. one of the three TVA directors, said: “By the purchase of private utility property w’hich was found useful at prices w’hich were found fair, the authority has avoided the necessity of building duplicating competing facilities. "While specific terms have not yet been agreed upon between the power eoi panies, parties to this contract, nd the electric home and farm authority, this contract and rate reductions insure success of such a working agreement." EXTENSION FOR RFC New Resolution Will Be Offered to Prolong Act. By United Press WASHINGTON. Jan. s.—Speaker of the House Henry T. Rainey said today that a resolution extending the life of the Reconstruction Finance Corporation would be introduced shortly. The present act extends lending power of the RFC only until Jan. 22.

Crawfordsville. to have charge of the girls' school at the fair. Vice-President Everett S. Priddy of the board was made their representative on the stallion enrollment board. Offices of the fair board will be those of the Lieutenant-Governor, it was announced. Miss innie Fisher and Mrs. Coris Steiger, both of Indianapolis, will be in charge. Board members were assigned tc the following departments: Horses. C. H. Taylor. Boonville: agriculture, Guy C. Cantwell. Gosport: sheep. Charles Morris. Salem: parking and police. O. R. Jenkins. Osgood: skine. O. L. Reddish. Waveland; mechanical and manufacturers building. E. Curtis White. Indianapolis; gates, E. Y. Foster. Carmel: woman's building. Thomas Grant. Lowell; cattle. Mr. Priddy. Warren; concessions. U. C. Broust. Kendallville; publicity and amusements, Levii P. Moore, Rochester; poultry. George Stolte, Ft. Wayne, and grandstand, W. H. Settle, Indianapolis.

BUDGET SPEECH SHOCKS C. 0. P. Republicans Appalled Over Figures; Democrats Are Calm. By United Press WASHINGTON, Jan. s.—President Roosevelt’s budget message predicting a public debt of $31,830,000.030 by June 30, 1935, “appalled” and “shocked” congressional Republicans, but left the Democrats calm. Republican House Leader Bertrand H. Snell of New York said he w r as so shocked that it w’ould take him several days to catch his breath. “1 have seen no indication of where the money is coming from to pay these stupendous sums,” he said. Figures Called ‘Appalling’ Representative James W. Wadsw'orth (Rep., N. Y.) called the figures “appalling.” “We can’t go on this w r ay or w r e will destroy the government's credit,” he commented. Representative Carl E. Mapes i Rep., Mich.) called the deficit “staggering” and said he wondered where the money would come from to pay it. The Democrats countered with assertions that the multi-billion dollars expenditures of the administration must be considered “good investments,” that larger portions will be paid back by borrowers, and that the deficit really is not so large as it seems at first glance. Expenditures as Investments “The people must regard these expenditures in the light of investments which will restore business and prosperity,” said Representative Joseph W. Byrns, Democratic floor leader. Speaker Henry T. Rainey pointed out that the deficit will be only about $5.000,000,000 above the post-war debt, while Senator Pat Harrison (Dem., Miss.), said the governmental expenditures would make business so good that the budget would be balanced in 1936. Senator James F. Byrnes (Dem., S. C.), said that large sums of money lent by the Reconstruction Finance Corporation to banks, railroads and other businesses would be paid back and that the deficit therefore was not nearly so large as it seemed.

How About That Quota? Ambassador Wishes Acting Secretary a Happy New Year and Gets in His Word.

BY GEORGE ABELL Times Special Writer WASHINGTON, Jan. s.—Shrugging Gallic shoulders, French Ambassador Andre de Laboulaye called on acting Secretary of State Phillips to wish him a happy new year—and, incidentally, to mention French quota restrictions. The French ambassador is very much excited over quota restrictions on American imports into “la belle France.” “Why is there such a fuss? he inquired, waving expressive hands. “This was all decided upon last August.”

The French embassy has received one or two hot cables of inquiry; French vintners are trembling for the fate of their rare wines, destined for American consumption, and newspaper clippings are beginning to pile up on M. de Laboulaye's desk. So the worried envoy, dressed in black coat, striped trousers (some one has finally persuaded him to abandon checked trousers) and derby hat, called on Secretary Phillips. , . . “Just to wish him ‘une heureuse nouvelle annee',” added his excellency. tt tt a JOLLY Harry (Pickwick) Payer, legal adviser to the RFC. returned to the capital fresh from a New Year's celebration at his Cleveland home. Wearing his familiar Pickwickian high collar and silk foulard tie with pearl scarfpin, the genial Mr. Payer called on acting Secretary of State Phillips, to wish him a Happy New Year. The Payer repartee was full of quips and bon mots and jingled as musically as the old-fashioned gold watch chain worn by the speaker. “Did you drink any eggnog over the holiday?” asked a friend.

EXPERTS WORK ON HUGE U. S. FINANCE PLAN Treasury Heads Confident of Ability to Borrow Ten Billions. (Copyright, by United Press) WASHINGTON, Jan. s.—Federal fiscal experts planned today the largest peace time financing program in history. They seek to borrow approximately $10,000,000,000 to meet government expenses and maturities over the next six months. No sooner had President Roosevelt revealed in his budget message the need for that sum than treasury experts were put to work in mapping out the financing program. Only in war time in 1918 has the treasury been confronted with the raising of that much money in so short a time. The manner in which the $6,000,000,000 additional new money and the $4,000,000,000 to pay off maturing obligations would be raised was in doubt as the treasury began its new work but it was learned on high authority that the money would be raised as it has been in the past. This was through direct sale of bonds, notes, bills and certificates direct to investors, bankers and insurance companies. Resembles War Drive The current financing program j closely resembles the final effort to win the war in 1918 when a huge patriotic bond selling campaign raised more money than is contemplated over the next six months. The current program is called the final effort to win the war against the depression. Various administration officials, ; congressmen and bankers generally have expressed agreement with President Roosevelt that the program will work out smoothly and that no obstacles will prevent the financing of the government in “the regular manner.” The first step in the financing program was considered today by treasury officials. Despite the huge cash balance of $955,991,710 now in the treasury, a rapid increase in emergency expenditures over the past few weeks might require the issuance of new securities before the end of January. This would be in the nature of a “test” offering and the character of .its acceptance by the investing public would help to determine the remainder of the program. Senator Issues Warning The next maturity is not until March 15, when $460,099,000 in % per cent certificates falls due. On April 15, a billion dollars in called Fourth Liberty loan bonds fall due and on June 15 a total of $174,905,500 of V 4, per cent certificates must be refunded. Over the sixmonth period approximately $2,000,000,000 in short-term bills must be refunded, making a total of $4,000,000,000 to be refunded. Security issues are expected to be floated in rapid succession until the $10,000,000,000 is raised. Insurance companies, banks and individual investors are counted on to supply the necessary money. Officials today were genuinely confident of the ability of the government to borrow the huge sum. A mild warning to investors was issued by Senator Elmer Thomas (Dem., Okla.), however, w’ho asserted that the bonds must be sold if inflation is to be avoided. ‘WHO IS COSTIGAN? 7 QUERIESJSOV. ROLPH California Executive Declines to Comment on Lynching Bill. By United Press SACRAMENTO, Cal,, Jan. 5. Governor James Rolph Jr. today declined comment when informed Senator Edward Costigan had introduced a bill proposing punishment of public officials w r ho tolerate the lynch law. “That’s all right,” Governor Rolph 1 said, when told about the bill. “I don't care to comment. “Who did ! you say the senator was? I’ve never l heard of him.”

-Capital Capers-

“No, I ate an omelet instead, Harry,” beamed Mr. Payer. “Was any ’Tom and Jerry’ in evidence?” “No, but met Tom, Dick and Harry,” beamed Mr. Payer. Then, placing a hand on his questioner's shoulder, he added: “We don't have any of those fancy drinks in Cleveland. We take them without the labels.” A twinkling eye indicated that Pickwickian Mr. Payer was not entirely serious. Unlike Dickens' famous character, he is an astute lawyer and also a connoisseur of wines. tt tt a OSCAR BLANCO VIEL, charge d'affaires of Chile in France (who is well known to diplomatic Washington), has taken diplomatic Paris by storm, according to word received here. The blithe Oscar, travelers report, is giving a series of supper parties, which is causing gourmets to declare Chilean cooking comparable to the best traditions of Brillat-Savarin. a tt tt A GLIMPSE of Senator Joe Robinson, majority leader, eating heartily at Harvey's restaurant convinced observers that Joe’s appetite and good spirits are undimimshed.

THE INDIANAPOLIS TIMES

M. E. Tracy Says—

THE possibility of war between Russia and Japan is too interesting for imaginative people to overlook. That is one reason why it is receiving so much attention. Imagination always has and probably always will play a major part in ribbing up war talk. Craving the dramatic is an incurable ailment. Half the wars that have been fought originated in nothing more serious than the universal passion for excitement. A lot of Russians and Japanese are speculating on strife between their countries for the sole purpose of enjoying the fanciful pictures which it enables them to create. A lot of people throughout the world are more than willing to assist them in this highly poetic endeavor. It goes without saying that if they keep on thinking and talking long enough they may start something. The situation contains all the essential elements. Through territorial expansion Russia and Japan have come to face each other across a long and ragged borderline. The ambition of each to extend its control in Asia and to dominate the northern Pacific ocean involves a defnitie conflict of interests. tt a tt THE conflict is made more probable by the collapse of China, with its open invitation for those who have the power to come and take what they can. The latest phase of Asiatic affairs is the acquirement by Japan of virtual control of Manchuria and the opportunity it affords her to reduce, if not eliminate, Russia's access to the Pacific. It is natural that Russia should fear further encroachment by the Japanese. It equally is natural for Japan to suspect Russian interference on this very ground. Back of it all there is a latent, if somewhat obscure, disposition on the part of both countries to try conclusions with each other—just the old primitive instinct to see “who is best man.” It almost is certain that they will reach a point some day where the temptation can not be resisted longer, not because there is anything exceptional or peculiar in the development of their relationship, but because it rests on a difference of viewpoint and a conflict of interests which, up to this time, men have discovered no way to avoid without the arbitrament of arms. a tt tt WHILE we talk much about the moral side of such situations it is of small consequence compared to those basic and apparently uncontrollable forces out of which they develop. In a purely ethical sense, both Russia and Japan undoubtedly have offended the principles of abstract justice, but both have, been very human in what they have done. They simply have grown without concerning themselves too much over the rights of others. What country that boasts greatness in the world of today can claim freedom from a similar fault? What country does not owe the bulk of its strength, prosperity and power to the simple fact of taking what it wanted and what it could get?

DEFICIT HOLDS NO FEAR FOR PRESIDENT Figures Declared Available Since June 16. By United Press WASHINGTON. Jan. 5. Such troubled congressmen as may complain to President Roosevelt that his forecast of $9,000,000,000 deficit in two fiscal years came as a shock to the country are likely to be rewarded only by a loud guffaw from the other side of the executive desk. Mr. Roosevelt feels that any one w’ith an alert mind and a sharp pencil could have arrived at the approximate figure for this fiscal year at least some months ago. The White House story is, that if the appropriation figures, the public announcements of administration programs and such like had been analyzed at any time after June 16, when congress adjourned, the deficit of $7,000,000,000 for this fiscal year would have been revealed. All of w’hich is to say that the President feels the problem of arriving at the cost figures of the new deal so far is a matter of mathematics rather than hocus pocus.

WHOLESALE FOOD AND GROCERY CODE SIGNED President Removes Provision for Drug Act Compliance. By United Press WASHINGTON, Jan. s.—The recovery administration today announced that President Roosevelt has signed the wholesale food and grocery code. By executive order he removed from the code a provision compelling food wholesalers to sell only products which comply with the national food and drug act. He also suspended for thirty days a provision establishing a differential between manufacturers who sell to retailers as well as wholesalers and those who sell to the wholesale trade alone. A joint code authority was set up to administer the wholesale and retail food and grocery codes.

CONGRESS TODAY

SENATE In recess until Monday. Banking and currency committee continues Detroit bank investigation. Military affairs committee meets on army nominations. Agriculture committee meets in executive session to consider pending business. HOUSE Convenes at noon to vote on $500,000.000 liquor tax bill. Ways and means committee considers amendments to liquor tax bill at executive session. Joint senate and house committee holds hearing on District of Columbia liquor bill.

STABILIZATION OF DOLLAR TO BE POSTPONED Permanent Basis Urged by Business Faces Delay Until Summer. (Copyright, 1934. by United Press) WASHINGTON. Jan. s.—Stabilization of the American dollar on a permanent basis now demanded by a powerful section of big business appears today like to be delayed beyond the end of the session of congress which convened here this wek. This session will last at least until May 1. It seems possible in light of discouraging information gathered by the state department and submitted to President Roosevelt that stabilization delay will extend well into the summer. A period of rising clamor for definite announcement of monetary plans is foreseen by administration intimates. But as Mr. Roosevelt’s message on the state of the nation and his budget message are degisted here observers are arriving at the conclusion that implications of the two documents point to certain definite, if temporary, administration policies. The most revealing language in either, informed congress that in the next six months: Huge Loan Requested “We shall have to borrow approximately $6,000,000,000 of new money and, in addition, $4,000,000,000 to meet maturities of like amount.” The use of the words “to borrow” pitch the key of immediate administration money plans. Inquiry today among administration advisers obtained assurances that when Mr. Roosevelt said “borrow” he meant just that and not any other form of replenishing the treasury. Thereby are automatically 'eliminated from the immediate moneyraising prospect any printing press production of treasury notes or any effort to deal with a deficit through seizure of federal reserve bank gold. Whether Mr. Roosevelt ever will authorize the issue of $3,000,000,000 of treasury notes as congress has authorized him to do is problematical. The seizure of federal reserve g01d—53,600,000,000 of it—is believed to be a definite part of Roosevelt policy when the time comes. Seizurs Process Outlined The process of seizure would be to call the gold into the treasury prior to stabilization and to give in exchange so rtis gold certificates at the regular rate of $20.67 an ounce. After tsabilization the gold could be withdrawn but at anew stabilization value. If the dollar were depreciated 50 per cent the new rate would be $41.34 an ounce and persons presenting gold certificates would receive for them only hall as much metal as they originally surrendered. But the number of dollars represented by the gold obtained would be the same . The government would acquire full title to the remainder of the gold w’hich, in the case of 5 per cent depreciation, would be half of it and a net profit of $3,600,000,000 for the treasury on federal reserve gold alone. NEWLYWED HAS BILL FOR CO AGE PENSION Youngest House Member to Propose Necessary Legislation. By United Press WASHINGTON, Jan. s.—Representative Joseph P. Monaghan (Dem., Mont.), youngest member and bridegroom in the house, plans to devote a major part of his legislative career to securing passage of a federal old age pension law, he told the United Press today. Monaghan, 27, sturdy and handsome, who looks more like a college football player than a congressman, intends to introduce a joint resolution submitting a constitutional amendment to the states which would create a universal old age pension fund.

Roper Plans School of Government for Youth

‘Public Affairs Laboratory,’ Cabinet on Faculty, Part of Plan. BY S. H. BURROW Times Special Writer WASHINGTON, Jan. s.—Commerce Secretary Daniel C. Roper is considering the establishment of “A Laboratory’ for Leadership in Public Affairs,” to train brilliant young college students in the business of government here in Washingto for three months. His project has been outlined by his assistant, Chester H. McCall, who points out that Alexander was emperor at 30. Peter the Great a statesman at 23, Thomas Jefferson a legislator at 26, Andrew Jackson a prosecuting attorney at 21 and Franklin Roosevelt a state senator at 28. Mr. Roper’s plan, he explained, would bring selected students, preferably those who are pursuing a college course looking to future participation in government affairs, here during January, February and March of each year, on some sort of leave of absence from their schools. Would Limit Students These students, limited to 150 cr 200, so that the group would not be too unwieldly, would study at first hand the principles, methods and mechanism of their federal government. The faculty for this university of public affairs would be the actual executives and administrators of our national government. The cabinet member representing each department would introduce the study of his department by giving a lecture to the students. Then an open forum would be held in which the students would have an opportunity to ask questions of the cabinet member. The students would then spend several days of comprehensive study of that department with, perhaps,

ROOSEVELT ON AIR

By United Press WASHINGTON, Jan. s.—President Roosevelt, using the method which proved so popular last spring when he electrified the oountry with a series of short messages on essential legislation, plans to resume tihs course, probably next week. It was understood that the first White House message will deal with reciprocal trade agreeements. He desires the authority to negotiate these without obtaining senate ratification. Opposition is based on the charge that it would be a usurpation of senate prerogative. The President is expected to explain that such is not his intention, and that the power to conclude trade agreements will be an important one in his recovery program. ASKS GWA AID FOR DOCTORS Hopkins Told That Alabama Medics Could Use $3 Weekly. WASHINGTON. Jan. s.—Employ- | ment of physicians by the government has been proposed to Harty L. Hopkins, administrator of civil works, by Representative George Huddleston (Dem., Ala.). The plan is being considered by Mr. Hopkins. If not feasible at this time for general application. Representative Huddleston suggests that it be tried out in Birmingham 1 and other parts of his Alaban.a congressional district. Representative Huddleston has proposed that doctors, who have | been hard hit by the depression in | many sections of the country, be i given employment every other day ; at a dollar-a-day wage. They would be detailed to visit families of the unemployed who are on relief rolls and families of CWA employes. “Os all persons injured by the depression, I know’ of none more seriously affected than the doctors,” says Mr. Huddleston. “It may sound strange to suggest paying them $1 a day, but at least it will help them to eat. In the smaller communities of the nation many of them are practically destitute. People w’ho are out of work have stopped being sick, so far as seeking medical attention is concerned, and when they are compelled to go to" a physician or surgeon they have no money with w’hich to pay their fees. “My plan would have a double I benefit. It would aid the medical profession and it would bring | medical treatment and advice to thousands who are in need of it but can not afford to hire it.”

MORGENTHAU AID IS EXPECTED TO RETIRE Earle Bailie’s Appointment Under Senatorial Fire. WASHINGTON, Jan. 5. Earle Bailie is expected to retire soon from his post as assistant to the treasury secretary, in charge of fiscal affairs, and return to private banking. Protests against Mr. Bailie’s appointment because of his partnership in J. and W. Seligman, the firm which floated many South American bonds now’ in default, are understood to have been made to Secretary Henry Morgenthau Jr., by Senators James Couzens and Hiram Johnson. M. Morgenthau, who appeared yesterday before the senate finance committee while it W’as considering his confirmation, said that Mr. Bailie's appointment w’as only temporary, it is understood. U. S. Woman Flier Killed By United Press NEVERS, France, Jan. s.—Miss Evelyn Frost, American flier, was killed today w’hen her plane struck a high tension wire and crashed in flames.

further technical lectures from other executives. The students in groups would study its structure and operations at first hand. This would be continued until each of the ten executive departments was covered. Lectures in Course Special attention would be devoted to congress. With congress in session, certain sections of the galleries could be reserved on specified days for groups of these students to sit through an entire day’s session of the senate and house. Lectures could be given by outstanding senators and representatives. Legislative enactments and the entire scope of the legislative machinery would be covered comprehensively. Then the independent agencies and commissions of the government would be studied at first hand. To conclude this three months’ study in the laboratory of public affairs, the broad and underlying principles and functions of the government would be considered, analyzed and discussed. May Start in 1935 There are several phases of the plan still to be worked out. McCall suggested that if they are solved successfully the first group of 150 to 200 students could meet here Jan. 1, 1935. ‘•Such an organization should be an incubator, a laboratory for leadership and statesemanship," he said. ’ Within a period of four years from 600 to 800 students would attend this university of public affairs. “Each of these students would thus become a potential leader for the years anead. This laboratory might constitute the first step in a constantly expanding program- for a planned and objective development of leadership on a much broader scale, which would be the best insurance possible for the perpetuation of our democratic form of government.”

_JAN. 5, 1934

THREE-RINGED BUDGET FIGHT IN PROSPECT Groups Split on Amounts Roosevelt Seeks for Relief. BY NED BROOKS Times Staff Writer WASHINGTON, Jan. s—President Roosevelt's first annual budget message left in its wake today a three-cornered battle which appeared likely to occupy the attention of congress almost continually | until adjournment. The President's suggestion for a two billion dollar expenditure during the fiscal year 1935 for emergency recovery agencies was met with an immediate movement on the part of congress progressives for a larger sum, principally for public works. Opposed to this group were Democratic leaders resolved to carry forward Mr. Roosevelt's program in the form submitted, and Republican conservatives who demand an immediate curtailment of all extraordiary expenditures. I-a Follctte Disappointed Senator Robert La Follette (Rep., Wisj, who has advocated a ten billion dollar public works program, expressed keen disappointment in j the President's proposal to add only $500,000,000 to the sum already being spent, for public works. “The | amount is entirely inadequate to bring about recovery,” he said. Progressives generally believed the j President might be willing to inI crease the figure later and had pur- ; posely fixed the proposed expendiS tures at a sum which would allow j a “trading margin.” A compromise j with those advocating greater | emergency expenditures was regarded as a possibility. The progressive group argued | that the President might com- ! promise after receiving assurances I that the ten billion dollar financing | program, w hich must be carried on in the next few months to pay the | recovery bill to date and to meet bond maturities, can be accomplished without difficulty. Fight in Committee Although there was no indica- | tion of a break in the recovery pro- ! gram truce agreed to by Repub- ; lican leaders, some members of the ; minority were outspoken in their J criticism of this year's $7,309,068,211 j deficit, and the two billions which | the President proposes to add to the national debt next year. Meanwhile, a fight w’as brewing in the house appropriations committee over the granting of unlimited aul thority to the President to allocate funds appropriated for emergency activities. Chairman Buchanan (Dem., Tex.) is insisting that future appropria- | tions for emergency agencies bear definite earmarks to prevent them from being allocated to departments and bureaus without congressional authority. In this he has the support of Majority Leader Joseph W. Byrns (Dem., Tenn.), former chairman of the committee. Wants Funds Earmarked Mr. Buchanan’s proposed limitations are directed against the public works administration, which has allocated large sums for government activities disallowed by con-4 gress in regular appropriation bills. Representative Buchanan is demanding provisions in all regular supply bills that rejected items may not be financed in any other way. In private conferences with congressional leaders President Roosevelt asked that the two billion recovery fund for 1935 be given him either in a lump sum or divided among various agencies, in w’hich latter case he asked authority to transfer funds from one agency to another. With limitations as to amounts, such authority w’as given him when the first emergency appropriations were made. On the outcome of this controversy depends the fate of many of the emergency agencies established by the President and the extent to which he can mobilize them for quick action in future emergencies. Congress, on the other hand, is extremely jealous of the power it has exercised over the executive branch of government by appropriating cr withholding funds. Deficit 7 Billions The two billiorf^recovery hill w’hich the President proposes to incur during 1935 allows $600,000,000 for relief, $500,000,000 for public works, $500,000,000 for further expansion of Reconstruction Finance Corporation credit activities, $300,000,000 to continue the civilian conservation corps, and $100,000,000 for the farm credit administration and the home loan banks. Thje year’s prospective deficit of $7,309,068,211 is created bv expenditures of $9,403,006,967 for all purposes, including $1,166,000,000 which the President proposes to spend for recovery during the next six months. Os this $400,000,000 is for continuing the CWA until April 15. ALLEGED WRITER OF BOGUS CHECK HELD' Negro Questioned by Police on Deal for Radio. Charged with attempting a bogus check racket, George B. Davis, 43, Negro, 854 West Eleventh street, today was held by police. He is accused of ordering a radio by telephone from the Western Auto Supply Company, sending a boy to obtain the radio and paying for it with an alleged worthless check for $18.75. Employes of the company became suspicious and followed the boy to Illinois and New York street*, where the youth met Davis, who was held by the employes for police. SEVERIN HOME IS SOLD Unannounced Purchaser Buys Property in Golden Hill. The home of T. S. Severin, inv Golden Hill, has been sold to an' unannounced purchaser, according to Gregory & Appel, realtors. The residence is on a high bluff overlooking the canal and White river.