Indianapolis Times, Volume 46, Number 252, Indianapolis, Marion County, 1 March 1935 — Page 3

MARCH 1, 1935

LABOR, WHITE HOUSE SETTLE 1 DOWN FOR GRIM FIGHT OVER PAY CLAUSE IN WORK RELIEF Roosevelt Determined to Stand Ground, Takes Charge of Struggle; Stubborn A. F. of L. Refuses to Surrender. By United Bret* WASHINGTON, March I.—The White House and organized la <<r settled down to a grim struggle over the Administration'.- work relief bill today. An early conclusion was bought hut neither side showed any disposition to surrender. President Roosevelt, whose Senate leaders sent the bill back to the committee after it had rewritten on the floor, was und* !.-t**l to Ik* seeking an agreement which would en-

able him to go ahead with his program without appearing to recede from the firm opposition he has shown to the prevailing wage clause. With labor belligerently carrying Its to the p r>ple and insurgent Senators standing firm it appeared likely the White House would have to accept some form of wage guarantee if it i? to free the measure from the Senate tangle which has enveloped it. An ultimate settlement through a lon ot the ■ tel amendment requiring “prevailing wages" on work relief projects was anticipated. But the nature of the eventual compromise was uncertain. Negotiations lhat began unsuccessfully yesterday will be continued over the week-end, or until some satisfactory basis for proceeding, with the suddenly halted relief program has been reached. Labor forces, confident of their strength in the Senate, said they would not yield. Roosevelt Takes Charge Mr Roosevelt toe* charge of the situation after his return from Hyde Park. N. Y.. and was using all of his persuasive powers to effect a settlement. William Green, president of the American Federation of Labor, last night broadcast a declaration that the prevailing wage agreement is “more vital to the economic welfare of the nation than any issue that has fared us since the inception of the recovery program.” All of the negotiations were secret, but it was learned that they hinged on efforts to revise the McCarran prevailing wage amendment to a form which both the White House and labor representatives would accept. Tentative drafts of such a revision were presented to President Roosevelt bv Senate Majority Leader Joseph T. Robinson, but were not accepted there. Wagner Attends Parley During the conference between the president and Mr. Robinson, the latter telephoned Senator Robert F. Wagner D.. N. Y-), who has been playing a role as mediator with those who voted against the Ad-1 ministration on the wage issue. Although Mr. Wagner is a close friend of Mr. Roosevelt and has gone along with the Administration in it* program thus far, it was said he still was insisting on a guarantee that wages paid on work-relief projects would not be lower than the prevailing rates in the localities vhvoived. One proposal which figured in the conferences was that the President be given "permissive” powers to pay the prevailing wages wherever he deemed it necessary to maintain American standards of living. This was rejected by representatives of organized labor. Veto Is Held Likely With Administration leaders forecasting a presidential veto if the prevailing wage amendment is carried in the work-relief bill, and with the opposition still defiant, extremely delicate negotiations will be necessary to effect a satisfactory settlement. The Administration has made known its intention to maintain wage structures generally and can return t? that statement, rather than to its flat opposition to the McCarran amendment, if it is forced finally to accept i written wage guarantee. It may be necessary soor. to separate the measure into two ports, one for direct relief and the other PAINT FIRM OFFICIAL PRAISES HOUSING DRIVE Federal Campaign Given Credit for Heavy Spend-ng. Credit for the millions •.•f dollars now being spent by property owners for renovation and rehabilitation should go the Federal Housing Adrrunistratton's better homes program. P. C. Gasdorf of the National Lead Cos., declared last night at a paint dealers' dinner in the Lincoln. O E. de La Croix, also of the lead company. conducted a discussion of painting trends. Forum Speaker Encaged Kathryn Rowell McKenna. Chicago. will address the John Reed Club forum tomorrow night at 320 Columbia Securities "Building. 143 E. Ohio-st.

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for the controversial work-relief program. Republicans in the House moved in that direction yesterday. Having introduced a resolution for an 5880.000.000 direct relief appropriattion. the minority party can now say that it can not be held responsible for any delays in appropriation of money to meet immediate needs in caring for the nation's destitute. HAWKS’ AIR TRIP TO SOUTH AMERICA OFF Flier's '-peed Test Cancelled Due to Military Resemblance. By Un>t> and Brut* NEW YORK. March 1. —Abrupt cancellation of Frank Hawks’ speed flight to Cuba and South America today removed any possibility that his mission would be misinterpreted due to his plane's close resemblance to military craft. The Northrop Cos.. Inglewood. Cal., Capt. Hawks’ employer, called off the flight six hours before the scheduled takeoff. Capt. Hawks’ ship, cargo carrying in its present form, is a low-wing monoplane with a single 715-horse-power motor. It closely resembles Northrop bombers. The Northrop factory has a War Department contract for 110 attack ships. This fact led to speculation on whether the government had suggested that Capt. Hawks’ flight bo cancelled. BRITISHER CHARMED BY GAS STATION COURTESY Dr. J. Taylor Mclntyre in U. S. to Study Mine Conditions. The courtesy end efficiency of American filling station attendants have given the most striking impression Dr. J. Taylor Mclntyre, London, has received of this country', he said yesterday on his arrival in Indianapolis. Dr. Mclntyre is studying air conditioning and ventilation of mines in the United States and Canada. He left late yesterday afternoon for Terre Haute, where he will inspect mines in that vicinity and near Bicknell. DOG. TRAPPED IN DEEP QUARRY. IS POISONED Efforts to Rescue Canine From Pit Fail. By United Brent CHICAGO. March I.—Death today ended the suffering of a shaggy, nondescript dog that was trapped in a stone quarry 257 feet deep. * The dog was discovered floating on an old oil drum in the water at the bottom of the quarry and various rescue methods were tried in vain. Finally a piece of poisoned meat was tossed to the animal to bring quick death. DEFENDANT DINES JURY Accepted Hospitality on Eve of Verdict, Is Charge. By United Brett WARSAW. March I.—Authorities found today that a jury trying a student charged with Communist activities dined with the defendant's family on tha eve of their verdict. Seven of the jurors were arrested. It was learned that they took money as well as dinner. The other five are to be prosecuted.

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TWO YEARS OF ROOSEVELT Mighty Challenge Still Faces New Deal

Franklin D. Roosevelt is nearing completion of his second year in the White House. In a series of three articles, of which this is the second, Rodney Dutcher, NEA Washington correspondent, frankly discusses the triumphs and failures of Roosevelt’s two years. BY RODNEY DUTCHER 'Copyright, 1C35 by NEA Service. Inc.) VyASHINGTON, March 1. —Any one who can remember back to March 4, 1933, will realize that a great <ieal has happened to us since. Like it or not, President Roosevelt and the New’ Deal have produced as marked a reorientation of government policy as had ever been achieved without violent revolution. Millions of Americans feel the government has moved too fast and too far. Millions of others think it has moved neither fast enough nor far enough. Either Mr. Roosevelt saved us from slipping farther into the sinkhole of depression or an economic upturn coincided with his assumption of power and his emergency measures. You can decide that for yourself But the next time the band plays “Happy Days Are Here Again!”you can remind yourself that the nation’s economic position still is lower than it ever was in any previous depression and that it remains to be seen whether enough—or too many—boards have been tossed in to enable us to crawl out of the mire. a a a BUSINESS activity lately has been running at about 70 per cent and needs an increase of about 50 per cent to get back to normal, according to the more realistic New Deal economists. In five previous long depressions, business activity was never below' 85 per cent. These are figures from Government economists who say that to make a fair picture it’s necessary to adjust their chart curves to population growth and business activity’s normal expanding course. Such economists, believing that the economic structure has been kept as strong as it is only by Government expenditure, are not very hopeful about the immediate future. It seems worth mentioning that while the national income increased from 48 billion dollars in 1932 to 52 billions in 1934, the Government has pushed out eight billions of emergency money in these two years. No one can guess what would have happened if it hadn’t. a a a IN listing the chief basic alterations brought about in the first tw T o years of Roosevelt, it’s every man to his taste. New Dealers are inclined to stress these: 1. Government has asserted the right of control over industry, agriculture and finance. In each case it has asserted that lack of any

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Quietly, and from a position unglorified by an impressive title, this man continues to exert steady influence on the New Deal as it goes into its third year. He is the secretary who is continually in the White House at the President's elbow, carrying all he can of the weight of detail that bears so heavily on him. Louis McHenry Howe, who at 64 (he is 11 years the President’s senior) has been for 20 years Mr. Roosevelt’s confidential private secretary and personal adviser. A crafty, expert, practical politician, Howe's ear is always close to the ground, and in his inconspi uous office in the W’hite House are held many heavy party and political conferences.

centralized supervision over these vast fields has resulted in disaster. 2. The beginnings of a redistribution of national income have been made by various devices. These hav been slow, hesitant steps, but it’s still a cardinal New Deal principle that income must be spread over all classes, both to keep Roosevelt’s promise of “a more abundont life” and to provide a healthy market for products of both industry and agriculture. 3. Government has acknowledged a duty to see that ‘nobody starves.” Lately, Roosevelt has promised that it will be a government function to provide work—at meager pay—for all “employables” while providing “security” for others. 4. Government has taken over the credit function of the banks. It is financing 575,000 farms and 400,000 other homes and has lent billions more to banks, railroads insurance

Louis McHenry Howe

companies and public construction projects. a a a ALL this and many other administration moves have been accomplished in the face of opposition from such organizations as the National Association of Manufacturers, United States Chamber of Commerce, New York Stock Exchange and American Bankers Association—which usually have de-

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manded "hands off” and a balanced budget. Big business and big finance are still the most powerful force in this country, but their former unhealthy and complete domination of government is now r far less complete. New Dealers also see certain important intangibles, mostly educational, as achieved. They think forces have been set in motion which can’t be stopped, that barring fatal clashes with antipathetic forces, the promise of the New Deal will be gradually fulfilled, that the American economic system really is being remodeled —to the dismay of those who think it was all right as it was and the disappointment of those who feel it should be junked. NRA has educated the business community to a realization that laissez faire is ruinous to everybody and the New Dealers hope to teach it many more valuable lessons. a a a THE masses of people have been led to expect vast social improvements and some, such as those on relief, have experienced new benefits which they can hardly be made to give up. Millions of citizens have lost faith in the leaders of finance and industry and have shown their willingness to follow’ political leaders in preference. No one knows where this will lead to. At its worst it leads to blind adherence to “dangerous demagogs.” Left wing opponents are especially caustic about the administration’s failure to bring about greater redistribution of wealth. New Dealers insist this is an inevitable, but also inevitably slow, process, begun by attrition on many fronts. Income has been distributed to the needy unemployed and millions, according to FERA officials, are now getting a decent diet for the first time in their lives. Old age pensions w’ill “redistribute” to many more—and unemployment insurance as well. Currency manipulation has played a part. The farmers had a big cut-in, through the 1934 billion-dol-lar increase in farm income. Low’er interest rates and increased taxation have been parts of the process. And NRA’s minimum wages have boosted the incomes of hundreds of thousands of lowest paid wage earners. a a am STANDARDS of living for the salaried middle class and the average wage earner have not improved, how’ever. Millions in these groups are economically worse off as a result of living cost increases—assuming they have always had jobs. Meanwhile, the latest income tax figures available show that in 1933 taxpayers with incomes of less than SIO,OOO saw their incomes decline 5 per cent, while the 8000 at the

top increased theirs by 10 per cent, the top 2000 by 16 per cent and the number of incomes over a million dollars rose from 20 to 46. Fizzles ana mistakes of the New Deal’s first two years, judged by the advance ballyhoo, have been painfully numerous. NRA fell far short of its re-em-ployihent goal and got all tangled up in the fly-paper of indiscriminate price-fixing and production control. Expansion of mass Durchasing p>ower was its basic purpose and it hasn't achieved that because dominant groups in industries wrote their own codes and kept wages down while pushing prices up. The Federal Housing Administration, designed as a great stimulant, has flopped conspicuously. Once ballyhooed as a forthcoming employer of 5,000.000 persons, it has achieved virtually nothing. The new Tariff Act, enabling treaties w’ith foreign nations for larger exchange of goods, has brought only treaties with Cuba and Brazil, although American exports to Cuba have more than doubled since that one was signed. Russian recognition, counted on as a trade booster, has been followed by disagreement and bad feeling between the two governments. a a a A FTER pumping a billion dollars of loans and another billion through preferred stock sales into banks, the administration is still unable to get the banks to lend money —or business to borrow. Bank loans continue to decline. PWA put hundreds of thousands to work, but never did give heavy industries that great fillip. Whether dollar devaluation and the gold policy have been a success or a failure is a matter of argument. The Roosevelt admirer, however, will hark back to the first year of the Roosevelt Administration and point out many high spots in the record: Bank rehabilitation. Repeal. NRA and its minimum wages and abolition of child labor. Salvation of hundreds of thousands of homes and farms. AAA and its organization of agriculture. TVA. CCC and Subsistence Homesteads. Deposit insurance. Exposure and regulation of Wall Street. Curbing of the “power trust.” And many more. And he will add that the New Deal has barely begun. Next Looking Forward With Roosevelt, Scientech to Hear Dr. Bahr Dr. Max Bahr, superintendent of Central State Hospital, will address the Scientech Club at noon Monday in the Board of Trade Building.

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LANDON VOTED HIGH HONOR BY FUND DIRECTORS Banker Is Named Honorary Member of Community Fund Board. In recognition of “outstanding and unselfish service to the public welfare" Hugh McK Landon, Indianapolis banker and community leader, became the 1935 honorary member of the Indianapolis Community Fund by vote of the organization’s directors last night meeting at the Claypool. Austin V. Clifford and Otto N. Frenzel Jr., were elected to the directors’ board. Directors renamed are Arthur V Brown. Mortimer C. Furscott, Curtis H. Rottger, Thomas D. Sheerin. Theodore B. Griffith, Mrs. P. C. Reilly, Harold B. West and Mr. Landon. J. W. Fesler in announcing the honor award traced Mr. Landon’s philanthropic activities. Prior to this announcement Mr. Landon in an address urged a long time plan of study for future social work. Other speakers included Gov. Paul V. McNutt, Mayor John W. Kern, William A. Hacker, Dr. Abram S. Woodard. Arthur R. Baxter, Rabbi M. M Feuerlicht, the Rev. Henry F Dugan and the Rev. Herbert E. Eberhardt. BOARDS COMBINE ON STATE SOIL PROJECTS Conservation Department Links Up With Boy Commission. The Conservation Department and the Governor's Commission on Unemployment Relief have joined forces to complete water conservation and soil erosion projects in various parts of the state, it was announced today by the Indiana Recovery News service. The work is under direction of John Curry, state work director for the commission.

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