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VOL. L. FT. COV1NGTON. N. Y.. THURSDAY. MARCH 21 1»35. NO. 48. News Review of Current Events the World Over President's Proposal to Eliminate Utility Holding Com- panies Brings Storm of Criticism—Treasury Seeks to Simplify Nation's Currency Structure. By EDWARD W. PICKARD ©, Western Newspaper Union. ly. The AAA was declared Invalid as regards intrastate business by Federal Judge Ira Lloyd Letts at Providence, R. L, who issued an injunction re- straining Secretary of Agriculture Wai lace from enforcing $he act against three Rhode Island retail milk dealers, on the grounds that their business was conducted entirely within the state, and the national government bat! no right to interfere. At Newark, N. J., Fed- eral Judge Guy L. Fake ruled the na- tional recovery act unconstitutional as applied to intrastate commerce \be catfse it attempts an unlawful delega- tion of legislative authority.\ The lat- er decision agrees with that handed down by Federal Judge Nields in the controversial Weirton steel dispute. /CHANCELLOR ADOLPH HITLER'S ^ diplomatic\ cold is over, and he will welcome Sir John Simon, British foreign secretary, to a conference be- ginning March 24. Accompanying Sir John will be Capt. Anthony Eden, lord privy seal, and disarmament authority After the Berlin visit Eden will go to Moscow to talK with Soviet leaders. The Berlin conferences will discuss legaliza- tion of Germany's rearmament in ex change for an air l>ocarno pact with Great Britain, France, Italy, and Bel glum, and an eastern security pact with Poland and Russia. Limitation of arm ament by all nations will also be tak'en up. The visit is complicated by a re- cent announcement that Germany pos- sesses military aviation In violation of the Versailles treaty. Because of this, France may invoke the Rome accord with Italy and Franco-British declare tion at London in support *of its move to keep the reich from giving the air force official sanction. S ECRETARY OF THE TREASURY MORGENTHAU revealed plans to dip into profits, from gold seizure to re- tire $674,625,630 of the national debt through the use of gold certificates. Po- tentially inflationary, it will deprive nation- al banks of the power to issue currency, and save the governmen an annual Interest charge of *13.fWX)O0O t Questions on inflation ary implications w°r»> avoided by treasurj officials, but thev mitted the plan would \put gold bark to work which can be expanded.\ The maneuver will place in th< hands of the federal reserve banks $674,625,630 of gold certificates, wi.icb must be used as backing for issue ol the same sum in federal reserve notes to retire the bonds. Note issue against the bonds could be expanded If cur rency demands warranted, to iboui $1,687,500,000. since a federal reserve note need not be backed by more than 40 per cent gold or gold certificates In like percentage. What will happeu will be the immediate. simplification oi our currency system. The treasury and federal reserve banks will have nil the authority to issue money. The fian involves retirement on August of $674,625,630 of 2 per cent federal securities and substitution of federal reserve notes for $657,937,080 of out- standing national bank currency These bonds will be retired with snr plus funds created by devaluing the -Roosevelt dollar from 100 cents to fi».O6 cents, gold. The total profit was $2,812,000,000. National bank notes Issued by na- tional banks against federal securiti represent more than one-tenth of th° nation's circulating currency. The ad- ministration's program likely means the permanent abandonment of the na tlonal bank note vhlch has been used since the Civil war. The circulation privileges expire on all bonds deposit- ed by banks and held In trust by thi treasury on July 22, 1935. except on two Issues. By calling for redemption, the treasury will retire all securities bearing \circulation privilege\ and na tlonal banks will no longer have suit- able security for issuance of their owi notes. /COMPLETE collapse of the admin *~* lstration's long battle to regulatt prices in the sfcsel Industry is seen 1 an NBA offer to give, up, and li charges by the federal trade commis- sion of a fiasco of collusion. Th trade commission Insists that price- fixing be scrapped, and no prosecution of steel companies under the anti- trust laws. The trade commission charges that under the code the steel companies have fixed and raised prices on government contracts, in defiance of competitive bidding requirements. Bids were Identical, and then steel executives slapped * fines of $10 a ton on members who let the governmen have steel cheaper, the commission says, D EMONSTRATORS numbering ap proxlmately 2,000 marched tnto the Minnesota state capttol at St. Paul and harangued legislators with de- mands In behalf of the Idle ranks. Threats were made to picket the caplto unless demands were met. T HE President's special calling for abolition of utility hold- ing companies stirred up a storm that probably surprised even such an astute politician as Mr. Roosevelt The Presl dent urged legislation to abolish those hold- Ing companies which were unable to show they were operated In the public interest. Representative Bert- rand H/SnelL Repub- lican leader, immedi- ately attacked t h e counced propaganda against the pro- jwsed legislation, and was himself propagandizing for i t Utility compa- nies also swung Into the battle, and thousands of Investors In utility stocks are reported to have sent In protests to -congress. In the senate, Norris, Ne- braska Republican, offered a resolu- tion calling upon the federal trade commission to investigate propaganda regarding the legislation. The senate approved without debate. Charges •were made by utility companies irfiat because of the administration's cam- paign against public utilities \the val- ve of utility securities has declined by three and one-half billion dollars since 1933.\ Enactment of legislation to bait holding companies will cause enormous loss to the American family, one power official testified before the bouse interstate commerce committee. G REECE is mopping up the loose ends of the revolt Some fighting is reported, near the Bulgarian border where one regiment, part of the re- bellious Fourth army corps, has de- clined to surrender, hut the revolution is definitely over. Eleutherios Venl- zelos, ex-premier, and leader of the futile revolt, was reported a refugee -at Rhodes, the tiny island where Julius •Caesar was interned by pirates some :2,500 years ago. Venlzelos was trans- ferred there by the Italian government -after he had been landed in Italy by one of the rebel warships. Gen. George Karmenos, rebel commander. Is safe in Bulgaria, where officials have re- fused extradition. Rebel prisoners are being concentrated in camps, and •courts martial are functioning in Saloniki, Kavala and Larissa, and mili- tary trials have begun in Athens. It is believed that only a few of the *nost flagrant rebels will suffer the -death penalty. Venizelos Is almost <ertain to be court-martialed in absen- tia, and banished forever. His elab- orate home in Athens, and his valuable library have already been confiscated .and will likely be converted to public use. Italy has refused to extradite iiim, although it is possible that new demands will be made by the Greek ^government, who will claim that he took funds from a bank In Crete. Un- less he is surrendered, he will prob- ably move to Paris where his two sons cow reside. T HE senate smacked down Senator Huey Long for his filibustering tactics and his efforts to amend the Administration's $4,880,000,000 work relief measure. The Kingfisb had de- manded alterations in the work relief bill whlcn would take $100,000,000 away from the $600,000,000 earmarked for CCC work and allot It to students in colleges and universities. Long's amendment was defeated by a vote of -58 to 27. To prove that old adage of \politics makes strange bedfel- lows,\ Long was aided by Senator Hiram Johnson of California, who de- clared that the senate should have something to say about methods for •spending the huge sum sought by the President Johnson has heretofore been considered a supporter of the President. Long's amendment brought forth other proposed changes which ashould keep the senators busy arguing for several days. The bonus bill may be dragged in and an attempt made to make it a rider to the relief measure, and Inflationists and leaders of other \ists\ will insist on having their say. A LL outstanding first Liberty loan bonds! have been called for re- demption by Secretary of the Treasury Alorgenthau. The $2,000,000,000 out- standing has been called for June 15, before which time the treasury will likely offer lower interest-bearing securities In exchange for the first Liberties, saving the government some $14,000,000 In annual Interest charges. JEW Deal policies took two more batterings as Federal courts held both the AAA and NBA unconstitution- al as regards Intrastate business. The administration might find some conso- lation In another ruling which held the radical Frazler-Lemke farm mortgage bill wtts valid. Federal Judge Merrill B. Otis, at Kansas City, declared the Frazier-!,emke law was constitutional, \although unwise In many of Its pro* visions and almost incomprehensible matter.\ Judge Otis said bis ruling -was not the first In which the act was upheld, aud that an appeal was already before the United States Supreme court and a decision might be expected short N B Sec'y Wallace T HE house appropriations commit* tee favorably reported out the De- partment of Agriculture appropriations bill for the 1936 fiscal year. A cut of $513,878,758 was due largely to a $411,022,- 428 slash to the AAA item. The total bib\ calls for $6.%%278,753, of which $570,000,000 would go to the Agri- culture Adjustment ad* ministration activities. At committee hearings it was explained that ft Is impossible to esti- mate how much would have to be obligated because of the crop control program, but the AAA item was a rough esti- mate of processing tax collections and is not controlling. Henry Wallace, sec- retary of agriculture, told the commit- tee that the farmers' share of the na- tional Income is now about 10.2 per cent and that It should be 13 to 16 per >nt Wallace said \true prosperity\ can- not come \until there has been a very material increase in the output of phys- ical goods. Industrial good's.\ \If in some way It were possible to turn out 50 per cent more industrial goods at a price definitely lower than the present price,\ the secretary testi- fied, \the result would be to make It possible for agriculture to buy more with the agricultural dollar and there would be more factory workers to be fed in the cities.\ fEN though the senate will not act immediately on the \pink slip\ bill :o repeal income tax publicity, income tax figures will not be available to the public for six, months, according to internal revenue officials. While It is likely the publicity act will be repealed, the house having so voted. It is not an- icipated that the senate will act on the measure for some time. Even though the latter might not act favor- ably, there remains considerable work to be done before the figures can be made public, and Income tax payers may be confident that prying neigh- bors cannot have Immediate access to such information. In the senate a drive has been started'for higher fed- eral income and corporation taxes. F RENCH courts have formally In- dicted 19 persons, including Mrs. Stavisky, f^pr the Stavisky scandal that rocked the government after the financial debacle, which caused losses of millions of francs to investors, had broken, Stavisky, known --as \Hand- some Alex,\ died from a gunshot wound as police tried to arrestlhira in January, 1934. A FTER twenty months of bar- gaining, the documents conveying full title to the Chinese Eastern rail- way to- Manchukuo were initialed in Tokyo, thus eliminating Russia as a factor in Manchukuo. The written ap- proval of the agreements was signed by Koki Hi rota. Japanese foreign min* ister; Dr. Constantino Youreneff, So- viet ambassador to Japan: and by Gen. Ting Shih Yuan, Manchukuoan minls- fwr of finance. The consideration was 140.00CUXM) yen. or about $.'».300,000. The documents require that all three governments approve them before their formal signing about March 23. Thus is ended forty years of Russo-Japanese contention for domination. A NEW gold suit Is menacing admin- istration financing and Money pol- icies. The suit reopening the question of investors' claims for payment of 1300 million dollars of government bonds In gold or an equivalent Is brought by Robert A. Taft son of the late chief justice, over the sum of $1.07. Taft demands either payment of bonds in gold or suspension of all refunding of the gold clause certificates. Before going to court Taft presented to the treasury a $50 gold clause Liberty bond and four $1.07 Interest coupons at- tached, and demanded gold for both, but was refused. Tne suit may force the administration to close the loop- holes left by the Supreme court de- cisions, if that is possible. T HE Mendieta administration in Cuba has established a military dictatorship over the island, constitu- tional law has been suspended, the death penalty for rebels Imposed, and military governors designated for Havana and provinces. Washington is watching the situation with keen in- terest Bombings and rioting a;e In creasing, according to reports, with ten dead and fifteen injured. The ob- jectives of the opponents of the gov- ernment is the removal from office of President Mendieta and Colonel Ful- gencio Batista, chief of the army. The strike has become almost general, nearly paralyzing all activities in the Island. Repressive measures taken br the government to quell the strikers strongly resemble the strong-arm methods prevalent In . the .MacJiado regime, according 'to* observers. T HE senate passed the army appro- priation bill, and it now goes to the house. The measure adds $20,000,- 000 to the original bill, making the total appropriation of 1400,000,000 al- most a record high, and will add 46,- 260 to our army strength, making the total of enlisted men 165,000. Warm talk flowed freely as the senate de- bated the meabure. Senator Lewis said that conflict might come between Russia and Japan and he asked:\With the army of Russia and the navy of Japan, where do we stand?\ Senator Me A do© also speaking In favor of the bill said: ••Unless we want to continue to be a boob nation, we win not hesitate to make this increase (n the army, it Is justified by the wisdom and the neces- sities of natluual defense.\ Scientists Test Huge Hinges for TV A Dam Bureau Seeks T New Metal Alloy Pintles which support the massive gates on the Pickwick dam in the Ten- nessee Valley project territory are shown in the bureau of standards where they are being tested by scien- tists. The bureau Is seeking to discover new metal alloys which will stand the severe service to which these parts are subjected year after year. In the past these pintles have been made of steel and bronze, but with newer metals coming into use it is im portant to know whether some other combination will better serve the pur- pose. Dr. A. H. Strang, wearing the leather jacket. Is shown with his assistant. L. R. Sweetman, as they Inspect tests. BORN WITHOUT A GULLET Robert Earl LInsig was born in New York without an esophagus, the nar- row tube through which food passes from the mouth to the stomach. Rob- ert has an even chance in his battle for life, but cannot be operated on for seven or eight years. Commands in Somaliland General to Head II, Duce's Army Gen. Rudolpho Grazianl, named com- mander of the Italian expeditionary forces against Abyssinia, is shown at the right in his tropical fighting uni- form. General Grazlana has also been named governor of the territory. He will pit his modernly equipped forces against those of Emperor Hail< Selassie, unless negotiations to restore peace are successful. Observers admit that conquering Abyssinia will be no easy task due to the rough, mountain- ous terrain where hand-to-hand fight- ing will be necessary. However, Italy may depend largel; upon airplanes to bomb the emperor's soldiers from their mountain strong- holds, n Duce has already dispatched 1,000 air pilots and mechanics and TRUE GHOST STORIES urn 1 By Famcus People Copyrtrnt iw f*uMtr Ledger. Inc. WNU Service. undetermined number of planes tc Africa. They will be headed by Undei Secretary for Aviation Valle. Now Raid Virginia Stills With Camera By ED WYNN Comedian. \IN MY play, 'The Perfect Fool,* a * few years ago, I performed what the public calls a mind-reading stunt. Before I began my act, I always made sure to tell the audience that I did not believe in mind reading, that my act was the result of four years* study and mental training. I had to memorize, to develop a code with my assistant, of 2,100 words, and to know the names of all famous generals, the capitals of all countries, the names of steamships, etc. \One evening after I, blindfolded, had been reading the numbers on bills for people, I heard, in the creaky tones of an old gentleman's voice, some one challenging me defiantly. \ 'Xou can't tell me what I have In my pocket'\ \ 'An elderly gentleman In the audi- ence says I cannot tell what he has in his pocket,' I repeated. 44 'How do you know I am elderly?* he retorted. \'You sir,' I began In a portentous voice, 'have in your pocket a passport to Europe ... Your name is W. U Cowen; you are^-sailing late tonight on the steamship—* \In the meantime, I was receiving by code, from my assistant In the aisle, the word Skythla. I knew that there had been some error, that there was no steamship by that name. As I groped for the right word, there flashed through my mind the headlines of the morning papers: \Steamship Scythia makes maiden voyage today.' \I finished the sentence, \You are sailing on the steamship Scythia.' \Because I was annoyed at the man's antagonism to my work, I added: \ 'Moreover, you are going to hare a bad voyage and you will, never make another trip to Europe.' \Four weeks later I received a let- ter from England. It read: \ 'We, the undersigned, take the prir- ilege of writing to you. We believe this to be a matter of world impor- tance. \ 'We were In the audience the night you told a man that his name was W. L. Cowen and that he was sailing for Europe on the steamship Scythia. We, too, were sailing on the Scythia; we were being sent to England to do psychic research for the University Of Pennsylvania. J* 'After your performance, we went to see if there was a Mr. Cowen oo the boat's passenger list We found there was not but' the next morning we saw his name on the additional list That evening, we wanted to speak with him to discuss your read- ing; but he was sitting at the captain's table, and we decided to wait for a tore opportune time. The following morning he was found dead in his cabin. 'We want to know If you had a psychic message that he would never take another trip to Europe. \I put the letter down. To this day, any time I hear of aDyone sailing to Europe, the thought of that coincidence comes to me and makes me shudder.** Federal agents raiding moonshine stills in the backwoods of Virginia now do their shooting with cameras. The cam eras, now standard equipment of the agents, are used in taking pictures ol stills at the time of seizure and after they are demolished. Doctor Thrives on Odd Diet Minnesota Prof Demonstrates Dr. Kykola Haydak, member of the University of Minnesota farm college faculty, has demonstrated that a diet of milk and honey, with now and then a little orange juice, can keep a man alive and in good health. To demonstrate his theory Doctor Haydak lived on the diet for four months and ended up In perfect health. Every two hours during the day he took three ounces of milk and three ounces of honey. Orange jutce was added when symptoms of scurvy devel- oped. Huge Black Cat to San Diego Ireland Sends Good Will Gift This huge black cat, built in Dublin, and sent to San Diego as a good-will symbol from the Irish Free State, is be- ing made ready for California-Pacific international exposition. The cat is IS feet tall and 22 feet long and weighs Vq& tons. A group of San Diego school children formed a reception committee for the date and are shown above looking it over. COLD BETTER Chancellor Adolph Hitler has recov- ered from his cold, thought by many to be a \diplomatic ail- ment,\ and has invited the British foreign secretary, Sir John Sl- ^ mon, to confer with ? him on March 24. The ! conferences ar e ex- pected to last several days, and will take up legalization of G e r- 1^ maoy's rearmament in ^ exchange for an air pact with other Euro- pean nations. Hitler's answer to the proposals Is anxiously awaited by statesmen who foresee possibilities of trouble If the negotiations fail. Use Dogs in Ghost Hunt in \Haunted\ Farm House Every night half a dozen armed men, accompanied by dogs, watch at a 400- year-old farmhouse. South Reston Hall, near Louth, Lincolnshire, England, be- cause mysterious things had been re- ported happening there. The dogs are present because it is believed that canine senses are more sensitive to> supernatural manifestations than are the senses of human beings. Here are some of the strange, and at present unexplained. Incidents which have occurred: Room thrown into con- fusion; food taken from the pantry; soot thrown down the chimneys; large holes made through a ceiling, and a bed slept in. A young woman asserts that twice she has seen an \animal having a pointed nose .and bushy tail\ She fainted when she saw It One theory Is that an escaped monkey, hiding: In a false roof of the house, is re- sponsible, but a search failed to lo- cate either a monkey or any other In- truder. The master of the East Lincolnshire Otter Hounds took his dogs and a ter- rier into the roof. Apparently scent* Ing something, the terrier barked furi- ously at one spot, but nothing was found. The strength of the Intruder ts am extraordinary feature. In a bedroea a sack filled with heavy material watch had blocked the -cfcimner for SO yean was thrown down to gain admiask* to the i Costfiwt Politic*! C*»fab The costliest political conference ta history took place on \The field of the Cloth of GoTO,- near Andres. France, in 1520 between Frauds I aa4 Henry Y1IL Francis erected a magnificent palace, chapel and ether buildings, all gold decorated, for the entertalnmeat of Henry and the nobility of Hn«l»n4 and France. Nothing, however, was accomplished in the 17 days. No eat wanted to get very far away from a large fountain which, fr*ra morning until midnight poured forth two kinds * wine.—Comer's Weekly. # -»«^- a*f I
