Indianapolis Times, Indianapolis, Marion County, 8 February 1940 — Page 14

PAGE14 ____

REPORT, ALLIES TO PAY BILLION

FOR. S. PLANES,

Capital Hears Builders Will “Not Risk Own Funds, Want Cost-Plus.

By CHARLES T. LUCEY Times Special Writer

WASHINGTON, Feb. 8.—The British: and French governments were reported today to have approached American aircraft manufacturers with plane orders totaling about one billion dollars—far in excess of war aviation business hitherto discussed. The proposals were said to be the result of a growing conviction in Allied war councils that they must have a tremendously increased airstriking force to match Germany. Larger U, S. aircraft manufacturers, it was understood, have taken the position they could handle these orders if the foreign governments seeking planes would finance the necessary plant capactiy increases, :

Decline fo Risk Own Capital

The manufacturers have declined, however, to risk their own capital to expand their plants to a size which would be useless after the war emergency has passed. The manufacturers likewise have declined to build planes on a contract basis, due to the uncertainty in regard to rising material and labor costs. They are insisting instead that all planes be built on a cost-plus basis. : According to the report, | the manufacturers ‘would enter the agreement with the understanding that the foreign-financed plants be dismantled after the war emergency.

U. S. Sees Backlog

But the United States Government is understood to be interested in having the plants remain standing as a capacity - backlog that could be used by this country if an emergent need arose in| future years. The manufacturers now are insisting that if the plants are retained even though title be held by the aircraft makers, maintenance costs and taxes must be met by the Government. :

ACTRESS, NEW MATE BEGIN WEDDING TRIP

HOLLYWOOD, Feh. 8 (U. P.).— blond Edna Best, British actress, and her husband, Nat Wolff, were traveling East today on their honeymoon. They were married yesterday at Las Vegas, Nev., while the ink was drying on Miss Best's divorce decree. : The actress divorced Herbert Marshall, the movie star, went to the County Clerk's office, took out a license and married Mr. Wolff, a Hollywood theatrical agent. They

Sonja Thrills Them Again—Then fo Bed

Sonja Henie, still speechless from an attack of laryngitis which developea as she was en route here for her engagement at the Coliseum, is spending about 20 hours a day in bed at her Claypool Hotel suite. The petite skating star’s physi-

By THOMAS L. STOKES

Times Special Writer

WASHINGTON, Feb. 8.—A threat to continuation of the Justice Department’s campaign to break up combinations and rackets in the building industry on the large scale necessary, for real results has appeared in the House Appropriations Committee report on the Justice Department supply bill to the House.

For the next fiscal year, beginning July 1, it provided only $1,250,000 for the Anti-Trust Division which is conducting the campaign, although admitting in its report that this will not enable the building industry phase of the Anti-Trust Division's work to go ahead on the scale projected by Assistant Attorney General Thurman W. Arnold. Mr. Arnold submittea an estimate of $2,208,900 to the Budget Bureau, which recommended only $1,209,000 to Congress. The House Committee

planned a month honeymoon in Buffalo, N. Y., and New York City.

estimate, but declined to go further. At the same time, the Committee

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to the House, “that [it would require an appropriation of approximately $1,500,000 to complete the investigations now under way in the building industry alone. Hy “While the Committee recognizes that there is a vast potential field of possible activity in [the prosecution of anti-trust cases and that results to date of the intensified anti-trust drives indicate savings of several hundred million dollars to’the consuming public as a| result thereof,

scales opposite the desire to project the Government's arm at further length into multifarious fields of Federal activities.” The Committee

earings, made

| public yesterday, revealed that Mr.

Arnold had told the Committee that he did not get an opportunity for adequate presentation of his case to the Budget Bureau, because at the time his work had not progressed far enough to show the concrete results since disclosed in grand jury indictments in-11 large cities. Also, when he appeared before the Committee in middle January, he submitted data to support estimates of $270,000,000 savings to consumers in seven major anti-trust cases. “It is apparent, therefore,” he said, “that an adequate appropriation for the Antinot an expense on the part of the taxpayers of the country. “On the other han vestment which not) only proves profitable in a fiscal sense, but, far more important, helps to preserve equality of opportunity by preventing price raises which have no other justification than the means of conspiracy, and the reaction of artificial and illegal restraints of trade.” Discussing the building investigation, the Assistant Attorney General said: “Our men began uncovering restraints, blockades and obstructions which in some cities caused the price of building a house to be 25 per cent higher than it should have been. °

lawed by consent decrees entered as far back as 1921 were. engaged in with an openness which seemed almost unbelievable. Competitors who did not pay tolls to the ‘rings’ were forced out of business with wanton ruthlessness.”

EYE MID-WE FOR DEMOCRAT |

“Practices which had been out-|

DIA

$ ‘PIVOTAL VOTES

N. Y. and Solid South; ~ Pennsylvania?

By LYLE WILSON United Press Staff Correspondent.

WASHINGTON, Feb. 8—Tapping Democratic news sources here after

|the National Committee meeting,

it appears today that some party leaders are almost reconcfled to losing Pennsylvania next November, but are confident they can win again in New York state. : They also seem to feel that the Midwest will be the battleground for the 50 pivotal electoral college votes which can win or lose the November vote. New York and the solid South are counted as the foundation stones of the hoped-for November election victory. Loss of New York or a split in the South on the third term issue would be more than Democrats could expect to overcome in view of the farm belt trend away from the

party which was. demonstrated in the 1938 elections.

Two Bolters Were Retired

Some party veterans are confident, however, that Southern conservatives generally would support President Roosevelt for a third term despite their pre-convention determination to prevent his renomination. A few might balk. But practical Southern politicians recall the fate of two of their number who bolted the 1928 Democratic ticket headed by Alfred E. Smith. The Solid South broke that year, Florida, North Carolina, Texas and Virginia casting their 50 electoral votes for Herbert Hoover. Senator Furnifold Simmons (D. N. C.), and Senator Thomas J. Heflin, (D. Ala.), bolted Mr. Smith and were retired promptly from the Senate at the next election. Some southern statesmen believe 1840 bolters on the third term issue would be likely to suffer the same fate. There is considerable assurance, therefore, that the South will stay hitched this time, even though Mr. Roosevelt again is a candidate, and a mixture of hope and confidence that the party ticket can carry New York State. If so, the Democrats would have a nest egg of 160 electoral votes, just 106 short of a majority.

Indiana Lies in Battle Area

From that point the going becomes rougher. Thefe probably are four electoral votes to be had in Rhode Island, especially if ‘Mr. Roosevelt again is the candidate. Democrats would hope to break even or much better with the 65 electoral votes distributed among the 11 mountain, Southwestern and Pacific Coast states. That brings the electoral vote upon which Democrats are depending for victory to around 195 with some 50 votes to go for a majority. The battleground where most of: thise 50 votes will be won or lost lies in Michigan, Illinois, Indiana and Ohio.

CHICAGO, Feb, 8 (U. P.).—District Attorney Thomas E. Dewey, candidate for the Republican presidential nomination, arrives here this afternoon for a six-hour stopover before taking another train for Portland, Ore., where he will address a Lincoln Day celebration.

WASHINGTON, Feb. 8 (U. P).— There will be no test of popularity of two Republican -candidates— Senator Robert A. Taft of Ohio and Thomas E. Dewey of New York —in Illinois, considered a pivotal state in the 1940 elections. Mr, Dewey has filed his name in the Illinois Republican presidential primary but Senator Taft has decided not to enter. :

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