THE BONNEVILLE
TWO
By E D W A R D
W.
PICKARD
© Western Newspaper Union.
Mellon’s Aluminum Company
Attacked by Uncle Sam
NDREW MELLON, frequently
the target of administration at
tacks, is again called on to defend
his business. Attorney General Cum
mings
announced
that the Department
of Justice had filed
in the Federal Dis
trict court in New
York a suit to com
pel dissolution of the
Aluminum Company
of America—which
Mellon controls—for
the p u r p o s e of
breaking “ its mo
nopolistic control”
Andrew
c f the aluminum in-
Mellon
dustry. By this ac
tion the government revives the
Sherman anti-trust act as a legal
weapon in regulating business.
The suit named 36 officers, direc
tors, and stockholders of the com
pany, including Mellon. Twenty-five
subsidiary and affiliated companies
were named co-defendants. Other
members of the Mellon family
named with the former Treasury
head are Paul Mellon, Richard K.
Mellon, Jennie King Mellon, Sarah
Mellon Scaife, David K. Bruce, son-
in-law of Mellon, and Ailsa Mellon
Bruce, his daughter.
Action of the company on March
1, 1937, in advancing the car-lot
price of virgin ingot was cited as
the most recent act of “ oppressive
and unreasonable price fixing” in
the petition signed by Cummings
and Robert H. Jackson, head of the
department’ s anti-trust division. It
is alleged that this advance was
made in the face of an increase in
earnings from $9,571,206 in 1935, to
$20,866,936 in 1936, which amounted
to an increase in common stock
earnings from 55 cents to $8 56 per
share.
The suit charges that the com
pany is a monopoly in violation of
the anti-trust laws and that it has
power to fix arbitrary and discrimi
native prices. It charges the de
fendants with conspiracies to re
strain and monopolize, attempts to
monopolize, and monopoly in vio
lation of the Sherman anti-trust act.
A
Government Employees May
Not Speculate in Stocks
I N A letter addressed to H B.
^ Mitchell, president of the civil
service
commission.
President
Roosevelt placed a ban on specu
lation in securities by government
officials and employees. There was
no offi'dal explanation of this act,
but for some time there have been
rumors that some persons high up in
the New Deal have been making a
lot of money by speculating in the
stock markets after getting tips on
probable White House moves.
305,000 Unemployed Got
Jobs During March
O ONE knows how many un
employed persons there are in
the country, the estimates ranging
from ubout 9,000,000, by Secretary
Pcntins, to less than 3,000,000. How
ever, according to Madame Per
kins, the number was reduced by
305,000 during March. Weekly pay
rolls for the period, she said, were
$15,100,000 larger than during Feb
ruary in the manufacturing indus
tries. She said the employment in
crease continued “ the practically
unbroken succession of increases
which have been shown each month
since February, 1936.”
Of the 305,000 workers who ob
tained employment the majority
found jobs in manufacturing and in
retail trade. The secretary said the
government had no way of knowing
how many of the total had been on
relief rolls.
N
President Intervenes to
Avert New York Strike
INTERVENTION
by
President
1 Roosevelt averted, for the time
being at least, a strike of 25,000
freight handlers on eight railroads
that threatened the food supply of
New York city. The President ap
pointed an emergency board of
three members to attempt a settle
ment. In his proclamation he said
the dispute threatened “ substantial
ly to interrupt interstate commerce
within the state of New York and
other states in the eastern part of
the country to a degree such as to
deprive that section of the country
of essential transportation service.”
A dispute between rival workers’
unions balked efforts of the national
mediation board to effect a settle
ment. Under the railway labor act,
the President forced a postpone
ment for at least 30 days while
mediators work.
Byrd Would Consolidate
Federal Housing Units
ENATOR HARRY F. BYRD of
Virginia, Democrat, prepared
for introduction in the senate a bill
providing for the consolidation of
the Home Owners’ Loan corpora
tion and the Federal Housing ad
ministration. This merger, said Mr.
Byrd, would result in a saving of
more than $24,000,000 a year with
out impairing the work of the units.
Senator Byrd is chairman of the
senate committee on government
reorganization and is not at all sat
isfied with the plan offered by Pres
ident Roosevelt, believing it will not
save tax money. Discussing his
own scheme for merging the hous
ing units, he said that there are
20 or more other agencies which,
established and publicly justified as
emergency establishments, can be
consolidated, merged, or liquidated
just as profitably. If the appropri
ate ccmmittee will allow this bill
to come to the floor for full and
open discussion by senators, he pre
dicted, other bills of this nature,
providing for substantial savings,
are sure to follow.
S
Senator Nathan L. Bachman
of Tennessee Dies
a t h a n l . b a c i i m a n . united
States senator from Tennessee,
died suddenly of heart disease in
Washington at the age of fifty-eight
years. Mr. Bachman was appoint
ed senator in 1933 to succeed Cor
dell Hull who became secretary of
state. He had been a consistent sup
porter of the Roosevelt administra
tion policies and was especially in
terested in the Tennessee valley
program. He is survived by his
widow and a daughter, Mrs. Thom
as A. McCoy of Asheville, N. C.
N
Franco Creates Authoritarian
State in Spain
r a n c is c o f r a n c o is well on
the way to becoming a real dic
tator of the part of Spain his insur
gent forces control, and of the en
tire country if they
win the war. By de
cree the general has
merged the t w o
chief rightist fac
tions under his lead
ership and has out
lawed all other par
ties, thus creating a
one - party authori
tarian state. His de
cree left open the
way to restoration
of the monarchy in Gen Franc0
Spain “ if the nation
needs it,” and the monarchists of
the Carlist and Bourbon persuasions
agreed that if this takes place, the
king shall be Prince Juan, youngest
son of Alfonso XIII. He is known
as prince of the Asturias and is
twenty-three years old.
Whether the “ high seas" begin
three or six miles t'orn the coast
line is a matter of dispute between
the British government and Gen
eral «Franco. A number of British
ships ran the blockade into Bilbao
harbor with food and coal, and in
most cases they were escorted to
the three mile limit by British war
ships. The insurgent guard ships
threatened to fire on the blockade
runners within the six mile limit
and were warned not to do so by
British representatives.
Protests
were made by both sides.
F
Windsor Gets Apology for
a Slanderous Book
DWARD duke of Windsor, was
thoroughly enraged by many
things about him and Mrs. Wallis
Simpson printed in “ Coronation
Commentary,” a book written by
Geoffrey Dennis and published by
William Heinemann, Ltd., of Lon
don. The former king of England,
through his solicitor, demanded the
withdrawal of the book and the pub
lication of a suitable apology, and
the publishers gave in and complied
with the demands.
At first it was said Edward's an
ger might lead him to marry Mrs.
Simpson as soon as her divorce
was made absolute: but later dis
patches averred the lady had per
suaded him to delay the ceremony
until after the coronation of King
George VI and thus avoid further
criticism.
E
FRIDAY, MAY 7, 1037
DAM C H R O N I C L E
a
The trouble followed
state Su
preme court injunction, issued by
Judge Harry Manser, outlawing the
shoe strike which affects about 6,500
workers. The mob had been aroused
by speeches by Powers Hapgood,
New England secretary for the C.
I. O., and other organizers.
Keeping “ foreign agitators” out
of the picture, the representatives
of General Motors of Canada and
of the workers at Oshawa, Ontario,
reached a settlement of the strike in
that plant. The company agreed to
raise wages and shorten work
hours, but does not recognize the
U n i t e d Automobile Workers of
America. J. L. Cohen, Toronto at
torney who represented the strikers,
said the settlement reached was
“ eminently satisfactory.”
Draper, joined in predicting that
business recovery will not be re
tarded by the apparent inability of
the administration to balance the
budget in the 1938 fiscal year, as the
President anticipated in January.
They said they regarded lagging
treasury revenues as a temporary
condition and added:
“ The present headway of business
is so strong that it will offset the
effect of a probable deficit.”
President Asks Economy but
$1,500,000,000 for Relief
EVISING his budget estimates
for the fiscal year 1938, Presi
dent Roosevelt told congress In
a special message
that the deficit prob
ably would amount
to $418,000,000 ex
Belgium Freed From Its
clusive of debt re
Locarno Obligations
tirement payments
ELGIUM has attained the posi
of $400,000,000, in
tion sought in a recent move to
Huge British Budget Makes
stead of the “ lay-
ward
complete neutrality. Great
m a n’s”
balanced
Necessary Higher Taxes
Britain and France have released
budget he predicted
e v i l l e c h a m b e r l a i n , Brit
in January. He rec
ish chancellor of the ex the little buffer state from its Lo
carno treaty obligations, practical
ommended the ap
chequer, introduced in parliament
ly abandoning that pact, and have
propriation
of $1,.
the biggest budget since World war
promised full protection of Bel
President
500,000,000
for re-
times, and gave warning that na
gium against aggressors. In return
Roosevelt
jief; and
he de
tional finances for several years to
Belgium promises to rearm and de
manded rigid economy to combat
come would be dominated by ex
fend its frontiers effectively, and to
an anticipated drop in federal rev
penditures on armaments. He said
observe its obligations as a mem
enues amounting to $600,000,000. Mr.
that the government will require
ber of the League of Nations.
Roosevelt also said there must be a
an outlay of 862,848,000 pounds
The agreement was signed in careful survey of the nation’ s tax
(about $4,314,240,000) to carry out
its plans and pay its expenses dur Brussels by Paul Spaak, Belgian structure, and intimated that a new
ing the next year. Revenue obtain foreign minister; Sir Robert Clive, tax bill would be introduced at the
able he estimated at 847,950,000 British ambassador, and Jules La next session of congress.
pounds (about $4,239,750,000), leav roche, French ambassador.
In correcting the over-estimation
England and France also were re of revenue and the under-estima
ing a prospective deficit of 14,898,-
ported as getting closer together in tion of expenditures, the President
000 pounds (about $74,490,000).
a co-operative plan for a united indicated that the national debt will
Chamberlain said the taxpayers
front against Mussolini’s designs in rise over the 36 billion dollar mark.
would have to pay 3 pence more on
the Mediterranean and for the de
Though he made no specific rec
each taxable pound of income,
velopment of an understanding with ommendations as to economy, the
bringing the tax up to 5 shillings, or Germany. It also may result in
25 per cent. He also announced a new the loosening of France’ s friendship President spoke sharply about “ spe
tax on business profits, and this with Soviet Russia, which has been cial groups” who are exerting pres
sure to bring about increases in
especially was bitterly attacked by irksome to Britain.
government expenditures. It was
the Conservatives, led by Sir Rob
Mussolini’ s conference with Chan understood he referred especially to
ert Horne. They argued that it cellor Schuschnigg of Austria in
the farm tenancy program, propos
would demoralize industry.
Venice was believed to have been ing an annual expenditure of $135,-
mainly about Austria’ s relations 000,090; the Wagner housing bill,
Mrs. Harriman Named as
with Germany and the Duce was re calling for an expenditure of $50,-
ported to have told Schuschnigg 000,000 a year, and the Harrison-
Minister to Norway
RESIDENT ROOSEVELT sent that Nazi expansion toward the Black education bill, calling for al
to the senate the nomination of south was inevitable, to which the locations among the states begin
Mrs. Florence Jaffray Harriman of chancellor replied that Austria ning at $100,000,000 for the first year
Washington as minister to Norway. would resist to the limit any at and reaching a maximum of $300,-
She is the widow of J. Borden Har tempt by Germany to annex Czecho 000,000 a year.
riman, New York banker, and has slovakia.
Mr. Roosevelt had rejected these
been active in politics for a number
measures at a White House confer
of years. Anthony J. Drexel Biddle, D. A. R. Declares Against
ence and his attitude provoked va
Jr., who now holds the Norway
rious prominent senators and rep
post, was nominated to be ambas Supreme Court Bill
Y UNANIMOUS vote, nearly resentatives so much that they de
sador to Poland.
clared they would favor cutting
4,000
Daughters of the Ameri
down
the relief appropriation he
can Revolution, in their forty-sixth
asked
to
one billion dollars. Among
annual congress in Washington,
Goods as Debts Payment
the
Democratic
leaders taking this
adopted a resolution opposing the
Offered to United States
stand
were
Senator
James L.
ENATOR JAMES HAMILTON President’ s Supreme court enlarge Byrnes of South Carolina, repre
LEWIS of Illinois said that sev ment bill. It declared against “ un senting the appropriations commit
eral nations had offered to ship a balancing” the federal tripartite tee, and Senator Pat Harrison of
billion dollars’ worth of food sup system of government and favored Mississippi. Said Senator Byrnes:
plies and manufactured products to submission of the issues raised by
“ It is my purpose not only to urge
the United States in part payment the President to the people through
that
the work relief appropriation
of their war debts, and that he ap a constitutional amendment.
be limited to one billion dollars, but
proved their offer. The State de
that the law require larger contribu
partment formally denied that such W . Forbes Morgan Dies
tions from the sponsors of projects.
an offer had been received, but
If the sponsors could be required to
Suddenly in Ohio
Mr. Lewis said his information was
put up 50 per cent of the cost of the
FORBES
MORGAN,
w
h
o
authoritative. He had a conference
projects, we would not have applica
•
was
the
able
treasurer
of
with the President before the lat
tions for a billion dollars during the
the
Democratic
national
committee
ter left on his fishing trip and urged
next fiscal year.”
during
the
1936
campaign
and
who
that the plan be given serious con
Senator Joe Robinson, majority
sideration. He recommended that resigned to take the presidency of
leader, made an earnest plea for
the
Distilled
Spirits
Institute,
died
the commodities be distributed for
economy in all directions; and Sen
use by states for relief purposes, suddenly in a committee room of
ator Charles L. McNary, Republi
the
Ohio
state
capitol
in
Columbus.
arguing that this might well facili
can
leader, assured Senator Rob
Mr.
Morgan,
a
relative
of
Mrs.
tate the cutting down of the pro
inson
that the Republicans would
Franklin
D.
Roosevelt
by
marriage,
posed relief appropriation of a bil
co-operate
in every way possible
was
a
major
in
the
World
war.
lion and a half dollars.
with the Democrats in their “ be
lated” efforts to balance expendi
Wallace and Roper Comment
Maine Governor Quick to
tures with income.
on Cutting Expenditures
Check Strike Violence
In the house the economy pro
WO cabinet members were gram lost a point when Representa
OV. LEWIS O. BARROWS of
quick to comment on the Presi tive Vinson of Kentucky succeeded
Maine has lined up with other
state executives who will not stand dent's economy orders. Secretary in getting through his $1,000,000
for riotous and illegal tactics by of Agriculture Henry A. Wallace stream pollution bill.
strikers. When an unruly mob of forecast an immediate curtailment
Next the $927,000,000 Agriculture
1,000 men tried to storm two of nine of the administration’ s farm activi department bill came up in the
teen factories in Auburn involved ties. Federal aid to farm tenants, house and was passed despite the
in a general shoe strike and the lo production control and the ever-nor- efforts of Republicans to have it
cal authorities were unable to han mal granary are among the proj sent back to the committee with
dle the situation, Governor Barrows ects to feel the economic ax. Mr. instructions for a blanket cut of 10
ordered out eight companies of the Wallace said. He is still hopeful per cent. It is reported that the
that the crop insurance program, to Democrats of both house and sen
National Guard.
“ I’ ll order out the entire military be applied to the 1938 wheat yield, ate plan to put through a joint reso
forces of Maine, if necessary to pre may be salvaged.
lution at the close of the session
serve constitutional authority,” the I Secretary of Commerce Daniel C. reducing all departmental appropri
executive said.
| Roper and his first assistant, Ernest ations by 10 per cent.
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