Indianapolis Times, Volume 45, Number 211, Indianapolis, Marion County, 12 January 1934 — Page 8

PAGE 8

KEEPING UP WITH THE LATE NEWS OF CONGRESS

COSTIGAN RAPS PROPOSED CODE FOR UTILITIES Roosevelt Should Prepare Draft, Not Power Trust, He Says. BY HERBERT LITTLE Times Special Writer WASHINGTON. Jan. 12.—As hearings on an NRA code for electric utilities opened today. Senator Edward P. Costigan ‘Dem., Colo.) suggested that President Roosevelt exercise his power under the recovery act to impose rules and regulations on the industry instead ol allowing it to draft its own. “Certainly he should not be placed in the position of stamping in advance with approval by declaring fair the practices and ambitions of private monopolies and near-monop-olies.’’ said Senator Costigan. The proposed power cede, he said, “reveals from first to last the irreconcilable conflict between private profit and public service. Plays Edison Institute “On the basis of kilowatt hours sold, the Edison Electric Institute is frankly made the dominant authority in the administration of the code. Other private producers of light and power, as well as federal, state and municipally-owned enterprises are apparently given nominal but insignificant representation and such minority members of the authority as are expressly chosen to represent the public are limited to participation without votes. “Under this setup, the privately owned power interests in the institute will greatly increase their national influence "In addition, to the amazement of those who have promoted and supported the Federal Power Commission, the code undertakes to provide for an investigation by this privately-ruled industry of the electric power resources and requirements of the United States. If such an investigation is to be undertaken, certainly public opinion will not be satisfied either with the enterprise or its results if it is conducted by the Edison Electric Institute rather than by such an agency of the federal government as the Federal Power Commission, which is well adapted to that purpose and independent of profitseeking control. Further Deficit Noted “The proposed code is futher j deficient in its failure to protect the j interests of consumers. It omits; provisions which should be inserted, j preventing holding companies from | passing along unreasonable and un- ; just charges for inclusion in the j expenses of operating companies. “With respect to these codes, the question should be raised at the scheduled public hearings whether the President, under the authority vested in him by law, should not remove the subjects from the difficult realm of voluntary agreement, and impose on the industries rules, regulations and supervision which will fully recognize the underlying purposes of the recovery act, namely, increased employment and general welfare.” OIL CODE VIOLATION CHARGE INVESTIGATED Standard of New Jersey "Prizes” Under Scrutiny by U. S. By Scripps-floward Xctespaper Alliance WASHINGTON, Jan. 12—Government agents have been investigating alleged vlo'ations of the oil code by the Standard Oil Company of New Jersey, it was learned today. It is not yet known whether action tyas been decided upon, but an announcement may be made today. It is understood that one phase of the inquiry revolves about a report that certain premiums or prizes are being offered by Standard filling stations and that radio talks by Babe Ruth have hinted these prizes are available. HISTORIC WOOD USED IN GOVERNOR'S GAVEL Tree Under Which Lincoln and Douglas Met Is Used. By United Press HARTFORD. Conn., Jan. 12.—A gavel, made from the wood of the linden .tree under which Lincoln and Douglas held their famous debate at Quincy, 111., has been presented to Governor Wilbur L. Cross. The gavel, a beautiful example of the art of wood turning, was made by Charles E. Griffiths of New Haven and presented to the Governor by him.

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Mass Buying Power on Gain, U. S. Agencies Say New Cost of Living Figures for Wage-Earners Reveals 5.2 Per Cent Gain; Farmers Also Benefit. By Brripps-ltmrrjrd Xetcspaper Alliinee WASHINGTON. Jan. 12.—General increases in mass buying power, one of the yardsticks of the new deal's success, were reported today by government agencies. Secretary of Labor Frances Perkins, in reporting new cost of living figures for wage-earners and low-salaried workers, showing a June to December increase of only 5.2 per cent, said this situation, together with reports of a survey of weekly earnings to be announced next week, indicated an improvement in purchasing power.

Agriculture department figures meanwhile showed the December price of farm products was 27 per, cent above December, 1932, while the price level of goods purchased by fanners was 9nly 14 per cent higher than last year. This indicates an increased purchasing power for farmers also, although it is far below the pre-war level which the Roosevelt administration is trying to restore. On the other hand, the American Federation of Labor in its monthly business survey contended that price increases in food, clothing and other necessities, together with reduced hours of work, have more than offset pay increases. Hourly wage rates are higher by 5L cents than a year ago but weekly earnings are lower, this report said. Farm Head Scores NRA The charge of Chester Gray of the American Farm Bureau Federation, made at an NRA hearing, that NRA price increases have nullified some of the farmer's gains under the AAA program, appeared to be supported by the agriculture department’s figures of recent trends. These showed that in November and December farm prices dropped while the prices paid by farmers mounted somewhat. The farm price level Dec. 20 was 66 per cent of the pre-war level, compared with 76 at the peak in July and 50 last March. The prices paid by farmers for their commodities was at 118 per cent of the pre-war level, compared with 100 last March. Spokesmen for the farm bureau federation and the national grange also protested vigorously against the lumber industry's code prices at hearings this week, blaming them for boosting the expense of produce containers which farmers have to buy. At the same hearing something resembling a buyers’ strike was indicated by figures showing that since fixed code prices went Into effect early in November, lumber shipments dropped sharply, from 265,000,000 board feet a week to 68,000.000 in the week of Dec. 23. This last figure was said to be 11 per cent under the corresponding week of 1932. Gain of 8543,000,000 The American Federation of Labor estimated the total buying power of workers in December was 5543.000.000 higher than in December, 1932. This was estimated as follows: A gain of $243,000,000 a month in wages paid to workers in industry, $60,000,000 from public works pay rolls, and about $240,000,000 from civil works pay rolls. Estimates of the increased biding power of workers for the year are not available, but the industrial wage increase over the last five months of the year would alone appear to indicate an increased purchasing power of more than $1,000,000,000. The agriculture department has estimated that farm income for 1933 was more than $1,000,000,000 over 1932.

CONGRESS TODAY

By Fnitcd Press SENATE Considers St. Lawrence waterway treaty. Banking and currency committee resumes Detroit bank investigation. Commerce committee considers nominations. Military affairs committee takes up routine business. District of Columbia committee resumes discussions on D. C. liquor bill. HOUSE Debates independent offices appropriation bill. Ways and means committee continues tax revision hearings. Immigration committee holds hearings on bill to extend present registration requirements until 1934. Agriculture committee holds hearings on the guarantee of farm mortgage bonds. Yosemite Nabona, a Navajo Indian, has invented a landing platform which will make the roof of any building, having a fiat surface of 100 feet square a landing field. Magnets are used to stop the plane.

$50,000,000 IN ARREAR TAXES PAID TO U, S. Frightened Income Evaders Pay Off as Intensive Drive Continues. (Copyright. 1934. bv United Press) WASHINGTON, Jan. 12. Upward of $50,000,000 of back tax payments has been paid into the treasury by frightened evaders, internal revenue officials estimated today as the government intensified a drive to obtain the last penny legitimately due in long pending income tax cases. Some estimates of the sum frightened into the treasury were as high as $100,000,000. These payments were ascribed largely to a campaign begun last summer by Guy T. Helvering, commissioner of internal revenue, to dispose of pending cases. Belief that prosecutions would eventuate from the income tax drive was expressed in high official quarters. There was suspicion that inexcusable laxity in handling tax cases would be revealed in some instances. First Offenders Warned Treasury policy was understood in general to be to warn first offenders and permit them to make a settlement with the government. But second offenders against the tax law are more likely to be prosecuted than to be let off, the United Press was informed. Whether tax assessments are compromised below the sums actually due the government will depend principally upon the ability of the tax payer to raise the money due. In any event, all compromises must pass across the desk of Treasury Secretary 'Henry Morgenthau. Appointment yesterday of John Clark, Cheyenne, Wyo., attorney, to a position in the treasury was in preparation for increased income tax work expected to develop as the drive for back payments continues. He will handle extra difficult tax matters. $1,000,000,000 Overdue Commissioner Helvering estimated four months ago that there were approximately $1,000,000,000 of back taxes to be collected. The attitude of the treasury apparently was that in the current fiscal crisis, every cent to which the government is entitled must be obtained and quickly. Cases numbering 18,000 and involving $772,000,000 are pending before the board of tax appeals. Most of the $1,000,000,000 referred to by Mr. Helvering represents taxes allegedly due for years prior to 1931. Deliberate warnings repeatedly have been issued in the hope of reaching such taxpayers as may be suffering from bad conscience. Typical of these was an announcement on Oct, 16, 1933, that field officers of the bureau of internal revenue had been instructed to co-operate with brokers and other agents of taxpayers in a hunt for sums due the government. Leniency Is Considered The bureau felt then that “certain Individuals have taken advantage of the opportunity through sales that have a fictitious character, as between husband and wife, or between a tax payer and an individual in close relationship to him, to distort taxable income through claims of losses that have no basis in fact.” "The bureau of internal revenue,” it was announced, “would be inclined, where voluntary disclosures on claimed losses which had no basis in fact were made, to be lenient in its attitude in the imposition of penalties, and in appropriate cases while, strictly speaking, the facts in the matter might justify recommendation for criminal prosecution, to refrain from such recommendation where such action appeared justified.”

FARM MORTGAGE BILL DISCUSSED IN HOUSE U. S. May Issue Bonds Guaranteed as to Principal. By United Press WASHINGTON, Jan. 12.—The house agriculture committee was scheduled to resume hearings today on a bill to create a federal farm mortgage corporation with the power to issue $2,000,000,000 worth of bonds. The new bonds would be guaranteed both as to principal and interest by the federal government. Representative Marvin Jones • Dem.. Tex.), chairman of the committee. expected to wind up hearings on the bill this week and hoped to present it to the house for action early next week. BOY FALLS FROM RIVER BRIDGE: LANDS IN MUD City Youth Treated at Hospital for Slight Injuries. The fact that the banks of White river were soft today saved Wil--lard Mathis. 14. of 2401 South Dakota street, from serious injury. The youth fell from the Raymond street bridge twenty feet to the river bank, escaping with a head bump and bruises when he landed in soft mud. He was treated at city hospital.

THE INDIANAPOLIS TIMES

HOUSE REVOLT ANTICIPATED ON VETERAN CUTS Sobered by Close Vote on Salaries, Leaders Gird for Fray. BY THOMAS L. STOKES Times Special Writer WASHINGTON, Jan 12.—President Roosevelt’s narrow victory in the house in checking moves to restore government pay cuts was accepted today by administration leaders as a warning not to let a similar drive get started for restoration of war veterans’ compensation. Representatives of the American Legion and other veterans’ organizations watched from the galleries as administration forces, by only five votes, banned any amendments to appropriation bills attempting to restore the 15 per cent salary reduction affecting 800,000 government employes. "Big Stick” Employed It was a bitter dose for many members because it affects political lieutenants on government pay rolls whose job it is to get out the vote this fall. For this reason President Roosevelt’s victory in his first major political test was really an achievement. It was conceded he would have lost had he not swung the famous “big stick” lustily. Young Democrats from the west, whence revolts originated, were most conspicuous in the bolt from the President, though it spread to the east and swept into the enemy camp nine Democrats from New York state. Eighty-four Democrats deserted altogether. Republicans voted solidly against the President, 103 of them being present. Five Farmer-Labor members joined them. House May Get Out of Hand The close margin caused Democratic leaders sober thought. Some members who stood by the President on the government pay cut issue are committed to seek restoration of war veterans’ benefits. The vote revealed danger that the house, usually regarded as closest to the people but also as more susceptible to party rule than the senate, may get out of hand. However, to restore veterans’ benefits it would be necessary to force a vote through petition and then to repeal portions of the economy act. The President was aware of the threat which faced him yesterday. This was obvious from his frequent consultations recently with party leaders. Just before the vote he called the party whips to the White House. He personally has changed many votes in the last few days. His popularity with the country gives him a big advantage.

U. S. STUDIES GOLD SEIZURE Important Money Statement Predicted to Bolster Bond Market. By United Press WASHINGTON, Jan. 12.—An important monetary statement from the White House designed to bolster the government bond market in preparation for the $10,000,000,000 federal financing over tne next six months was believed in congressional and administration circles to be imminent today. Strong hints of an important pending monetary statement were given last night after the White House conference attended by Henry A. Morgenthau, secretary of the treasury, and Attorney-General Homer Cummings. Officials refused to reveal the nature of the conference, but it was authoritatively reported to deal with money, particularly the seizure by the government of the profit on the gold reserves of the federal reserve system in event of a 50 per cent devaluation of the dollar. Experts said this would have the effect of boosting bond prices. DE PAUW UNIVERSITY CHOIR IS ANNOUNCED Eleven Co-Eds and Equal Number of Men on Personnel, By United Press GREENCASTLE, Ind.. Jan. 12. Personnel of the famed De Pauw university choir for the current year was announced today by R. C. McCutchan. dean of the music school. The choir will be composed of eleven co-eds and eleven men students. Among those selected were Marjorie Mclntyre, Greencastle; Mary Morgan. Plainville; Helen Tibbets, Union City; Barbara Haig, Bloomfield; Lucia Keller, Brazil; Myron Bleam, Knox; Carroll Brinson, Indianapolis; Emmett Jackson, Michigan City; Loren McDonald, Bloomfield; Robert Shearer, Bloomington; Norman Titus, Indianapolis, and James Wharton, Valparaiso.

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PLANS LABOR COURTS

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Senator Wagner

By Scripps-Hoicard Xewspapcr Alliance WASHINGTON, Jan. 12.—Plans to transform the national labor board and its subsidiaries into a permanent nation-wide system of “industrial courts” such as operate in certain European countries are being laid by Senator Robert F. Wagner (Dem., N. Y.), the board’s chairman. Senator Wagner is conferring with labor leaders and economic advisers in drawing legislation that looks far beyond original plans for merely strengthening the recovery act’s labor section at this session of congress.

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SENATE BEGINS ST. LAWRENCE TREATYDEBATE Waterways Development Cost Estimated at $550,000,000. By United Prems WASHINGTON. Jan. 12. The controversial St. Lawrence waterway treaty was brought forward by Democratic leadership for debate in the senate today despite the prospect of defeat in efforts to obtain its ratification. Chairman Key Pittman cf the senate foreign relations committee was expected to make the opening speech in support of the treaty. Consideration of the treaty was delayed yesterday when the senate devoted an hour to debate before confirming nomination of William C. Bullitt as ambassador to the Soviet Union. While opposition to the St. Lawrence project comes principally from Chicago interests, both New York j senators are fighting ratification. President Roosevelt consistently has advocated St. Lawrence devel- ; opment through his days as Governor of New York and in the Whit; House. Negotiations between the United States and Canada resulted in signing of a treaty July 18, 1932. '

PASSED BY SENATE

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William C. Bullitt

The senate late yesterday confirmed the nomination of Mr. Bullitt as ambassador to Russia. Austrian Nazis Nabbed By United Pres a VIENNA, Austria, Jan. 12.—Albert Edward Fruenfeld, one of the most prominent Nazi leaders in Austria, and two of his chief lieutenants, Leopold and Alberti, were reported reliably teday to have been arrested in the government’s drive to stamp out the Nazis.

JAN. 12, 1934

FORD DEFUSED TD AID BANKS, SON REVEALS Motor Chief Turned Down U. S. Plea to Avert Bank Holiday. By United Press WASHINGTON. Jan 12.—A last minute appeal from high government officials in February. 1933. for Ford Motor Company financial aid to avert collapse of the Detroit banking structure was refused by Henry Ford, his son Edsel. told the senate banking committee today. In a dramatic story of events which culminated in the Michigan bank holiday early last year. Edsel said Henry Ford was “quite incensed" at suggestions by former Assistant Treasury Secretary Arthur A. Ballantine that the Ford company subordinate its deposits and provide additional capital for the Guardian Detroit union group. Fires on Prowler Awakened by the sound of keys dropping on his front porch early today, Cornelius Donohue, 1323 North Drexel avenue*, saw a man run to the rear of the house and crouch against a window. Mr. Donohue fired three shots at the man, who fled from the yard.