Tfct Barawll Peop|g-8—ti—U Baniwtlt 8. C« TTiwrsday, Ptc—iber 28, 1M7 m ft' ■ £■ » I >1 '' N»m» Mevtom of Cmmmt Bvemta INDUSTRY'S PLATFORM Manufacturers Ask a New Deal for Hie New Year. • • Ambassadors Dodd and Bingham Quitting Their Posts Ml to rtffcl ar* Boutor William Barak af Idaka. Burke of Nebraska and Professor He id formerly of Oka antitrust division of I the yrofesser was abent to appear before Jadidary committee. The committee examined whether they believed him a fit appointee to of Appeals of the District of Colombia. Ho was in the right of courts to declare legislaUvo But ho declared he aeu legitimate part of ear constitutional system. ~*ufi&iurwui W. PuJaucd w M mnunurmwfTra Hnrr wnor.r SUMMARIZES THE WORLD'S WEEK • W« Industry Asks N«w D«al A MERICAN industry demands a now deal for the new year. In Its “platform for 1938” it asks the government to repeal “unfair” la bor relations laws and “unduly bur densome” taxes which, it says, threaten to reverse “a century's trend of improved living stand ards.” The platform was submitted to the National Association of Menu facturers by Charles R. Hook, presi dent of the American Rolling Mill company and chairman of the N. A. M/e resolutions committee, and was adopted by the more than 2,000 persons at the annual convention In New York. Asserting that “the onward march of the American people can be re sumed and continued only if Ameri can industry produces more so that all can have more," the platform declarations were grouped under these headings: No employer should be penalized tor failure to deal with any labor organization organizing, supporting ar maintaining a strike for illegal purposes, or by Ulegal means among his employees; Employment, promotion and re ton tion of employees on the basis af merit with due regard for length ef service; Legal and social responsibility of both employers and employees for their commitments and their acta. The platform condemned child la bor and urged the enactment of federal legislation to support state child labor laws. Enactment of state legislation against sweatshops also was urged. ,Te promote free domestic compe tition based on private initiative and energy, the platform proposed limi tation of government regulation “to toe prevention of abuses ir'-nical to toe public interest, freedom from federal control of prices, wages and hours,” fair taxes and “constantly increasing research to produce new and wanted products and new Jobs." Encouragement of private initia tive; maintenance and extension of sound industrial practices; equita ble employment relations through out Industry; creation of new and broader markets; constructive ef forts to alleviate depression effects; sound government policies; co-oper ation with agriculture; peace. Jap* Enter Nanking J APAN’S invading armiea reached Nanking and smashed their way through several gates of the city’s wall Their complete occupation of toe capital was Imminent The Chi nese put up a spirited defense in the suburbs and nearby towns but It was unavailing. Generalissimo Chiang Kai-shek and his wife were reported to have escaped in an airplane, which must have been a great disappointment to toe Japanese, who are deter mined to capture Chiang. Diplomatic Changas S EVERAL major changes in the diplomatic servlet are scheduled for toe near future. It was learned that William E. Dodd had resigned as ambassador to Germany and in Washington it was said that Hugh R. Wilson, now assist ant secretary of •tate, would be giv en the post in Ber lin. Dodd has found his duties difficult because of his ad mitted dislike of the Nazi policies and for some time has regarded as “persona non grata" by toe German government He was a professor of history in the University of Chicago when ap pointed, and says he intends to re sume work on a history of the Old South. Robert W. Bingham of Louisville, ambassador to Great Britain, also i L ‘ I Sslfs ' ' - V&l X&V- •' > &S W : ' i W. K. Dodd has submitted his resignation, be cause of 111 health. His successor, it is believed, will be Joseph P. Ken nedy, now chairman of the federal maritime commission and formerly head of the SEC. t Mr. Bingham recently returned to the United States to undergo treatment for malaria at Johns Hop- kina hospital in Baltimore. The State department expects he will go back to London after the holidays to pay his official calls of farewell —*— Profits Tax "Impossible" O EPEAL of the undistributed ^ profits tax as a levy “impos sible of equitable and effective” ap plication to the complex and varied pattern of American Industry, is recommended in a report published by the Brookings institution, based on a study of the actual effects of the tax on 1,580 corporations. Prepared by Dr. M. Slade Ken drick of Cornell university, in co operation with the staff of the insti tution, the study was made from data obtained from the results of some 3,600 questionnaires sent out by Senator Frederick Steiwer, Re publican, of Oregon, designed to provide detailed case experience on the controversial tax as far as ob tainable in the first year of its op eration. —*— U. S. Steel Readjustment npHE United States Steel corpora- *■ tion announced formation of a new company—United States Steel Corporation of Delaware—to super vise a number of subsidiaries of the parent corporation. The new corporation, which will come into existence January 1, will be organized with nominal capital Benjamin F. Fairless will be presi dent of the company and all the cap ital stock is owned and held by the United States Steel corporation of New Jersey. Headquarters for the management company will be at Pittsburgh. Myron C. Taylor, chairman of the board, in announcing formation of the new corporation, said that this was the final move in the vast pl»n of readjustment of the corporation. Green Defies C. I. O. V IRTUALLY admitting that re cent peace negotiations between the A. F. of L. and the C. I. O. were a failure, President Green of the federation in a speech in Buffalo defied the Lewis organization and predicted that real violence between the two rival labor bodies may en sue. “Unless settlement is reached soon,” Green declared, “the A. F. of L. will arm its forces and turn them loose against this raiding organiza tion. "Lot* of people think the reason a settlement can’t be reached is be cause some one has designs on dic tating the policy of the American la bor movement, and I sometimes think this, too. “He, or she, who launches a move ment which divide* the house of la bor is an enemy of labor.” Sixty members of the United Au tomobile Workers of America wert arrested when they defied an order of Mayor John L. Carey of Dear- x>rn forbidding the distribution of literature in a prohibited area at the gatea of the Ford Motor company. No Fraud by Mellon 'T'HREE months after his death Andrew W. Mellon, famous in dustrialist of Pittsburgh, was exon erated of income tax fraud by unan imous decision of the United States board of tax appeal*. The board threw out the fraud charges brought by the administration against the former head of to* Aluminum Company of America and, by an eight to seven ruling, slashed the government’s claim for additional taxes on Mellon’s 1931 in- coma from *3,075,000 to about *750,- 000. f® Stormy Days in Capital D ETURNING from his fishing trip to Florida waters with an tn- fed** gum. President RooeeveR was confronted with a situation that was decidedly disconcerting. What has been called toe Roosevelt depression was becoming still more depressed and congress seemingly couldn't make up its mind what to do about it The demand for tax revisions that would assist business out of the slump was insistent, and so was the necessity of balancing the budget Passage of the four administration “must” measures appeared to be impossible during the extraordinary session. All of them were opposed by various blocs of toe majority party as wall as by the Republican minority. The senate’s farm bill seemed to have the best chshce to get through, but it differed so radically from to* house measure that it was certain a conference committee would have to try to find a common ground. Secretary Wallace was reported dissatisfied with both senate and house bills. One official close to him said Wallace might urge Pres ident Roosevelt to veto any bill finally enacted which approximated •either the senate or house measure. Democrats were so badly split over the wage-hour bill that hope at passing it before the regular session of congress was about abandoned. Labor, too, was divided concerning this measure, the A. F. of L. op posing it and the C. L O. advocating its passaga. The federation offered its own version, calling for a fiat 40 cents an hour minimum wage and a 40 hour maximum work week. Hie bouse bill was finally rescued from toe rules committee by petition. House Majority Leader Sam Ray burn, Democrat, Texas, went ahead with plans to whip administration support behind the house measure. He said that fewer than 100 votes would be cast against the bill In Its present form but warned that amendments which would make its wage-hour provisions more rigid might shunt the measure back to the labor committee and delay a vote Indefinitely. Infantry Comas First I N WAR operations on land toe in fantry is still the most important branch of the service, says Gen. Malln Craig, chief cf staff of the army, in his annual report Lessons learned by skilled observers of the civ il war in Spain and the Chino-Japanese war have modified the American de fense program, but says the general it is still the Infantry that renders the de cision in the final analysis. Airplanes Malta Craig tanks are valu- uable auxiliaries to the infantry, but they cannot bring about a decision in land operations. Inventories of armament motori zation, mechanization and equip ment to toe light of the lessons abroad, show several vital needs of the first line forces. General Craig declared. These include better weapons to combat aircraft and tanks, as well as more efficient guns for the planes and tanks. Lindbarghs Come Back A FTER two years of self- imposed exile in England. Col and Mrs. Charles A. Lindbergh re turned to the United States. Pre sumably they came over to spend the holidays at the home of Mrs. Lindbergh’s mother, Mrs. Dwight Morrow, in Englewood, N. J. Dis patches from London said the colonel also had some business to transact in America. He is asso ciated in an advisory capacity with Pan-American Airways. The landing of the Lindberghs at New York was accomplished with such secrecy that they almost es caped the notice of reporters and news photographers. One of the officers of the liner on which they came caid they planned to return to England immediately after Christ, mas. Edgarfon Backs Wafer C ONFIRMATION of the appoint ment of Henry W. Edgerton of Cornell university as associate Jus tice of the District of Columbia Court of Appeals was endangered because it was thought from his writings that he did not believe in Judicial review. However, he ap peared before the senate sub-com mittee, consisting of Senators Borah, Burke and Van Nuys and repudiated his previous utterances. Of the pow er of courts to declare legislative enactments unconstitutional he said: “I regard it as not only thorough ly established as a legitimate part of our constitutional system, but which was intended by the great ma jority of the men who framed our Constitution. I think it was properly established by John Marshall and I haven’t the least criticism of any court for any declaration of the validity of that part of our coostt tutional system.” Leviathan to Be Junked J APAN made a bid for the Levia than. huge liner seized from Ger many in the World war, but the United States Lines rejected it and sold the vessel to Metal Industries, Ltd., of London for *800,000. It will go to England under its own power and will be junked. The Leviathan cost ten millions to build and the American govern ment spent more than eight millions to recondition it; and also paid Ger many *16,688,000 for its seizura. imt $m§0' 3blnkd about Prehistoric Lore. D EL RIO, TEXAS. —Ac cording to the scientists, who have a great way of naming earthly phenomena without inquiring into the wishes of the phenomena, we are now living in a terrestrial era known as the Hollocene period. This will be news to a lot Sf peo ple who rather suspected WO won living through a „ stage which might be called Chaos. Still it’s no won der that the word hasn't got around generally yet, be cause this present era Is quite a young era as eras go. It’s merely a few mil lion years old. which, to our true geologist, is the g, Cobb same as yesterday. Mention a few million years to him and he’ll say “phew!” and Just snap his fingers—like that I wonder if the authorities would pardon a suggestion from a poor Ignoramus whose acquaintance with geology la largely limited to two of its surface phases, namely: Reg ular paved roads and those derned detours. When we consider most of the humorous illustrations and the bulk of the humorous text printed in the average smart magazine of today, and the even spicier lines heard in smart modern plays, wouldn’t it be more fitting to call it, not the Holocene, but the Ob scene period? • to 7 • The Law's Long Arm. T HE long arm of the law—it’s a grand phrase, isn’t it? So mouth- filling, so satisfying to the honest citizen’s soul! It conjures up visions of unrelent ing warfare against crime, inevita ble punishment for the guilty. It’s the bunk! It’a the bunk because of crooked lawyers; venal policemen; compla cent prosecutors; soft-hearted or corrupted jurors; witnesses, bribed or intimidated; the law's delays; reversals of fair verdicts on foolish technicalities; a false sentimentali ty which forgets the widow and or phan of the victim and thinks only of the family of the killer; most often of all abuse of the powers to commute and to pardon and to pa role. These days, when I see a sen tenced offender handcuffed to an officer, I find myself saying to my self, “Chances are that fellow, lit erally or figuratively, is wearing that decoration only temporarily.” • • • The Passing Years. E VERY newborn year is a rosy prospect Just as nearly every dying year Is a dun-colored dis appointment But without revived hope what could we look forward to except being measured for a shroud? It seems only yesterday when 1937 was busting in, a radiant, bouncing baby-child, his arms burdened with promises, bless his little soul! After several false starts, happy days were here again. Nobody was aim ing to remodel the Supreme court Senator Ashurst told us so, and didn’t he know? He didn’t Secretary Wallace, slightly assist ed by Divine Providence, would im mediately have the crop situation well in hand. Grass would grow only in the street leading to the almshouse. The Wall Street boys were expecting two suckers in ev ery pot. And the song of the Bulbul was heard In the land—ah, the bull- bull! Within the 12-month the Republi can party again would be a going concern. Well if it’s a going con cern, the question is, where? And now, laden with future gifts, comes 1938. How time flies! Why, before you know it, Sistie will be old enough to take a job with the radio and Buzzie will be signing testimo nials. • • • Gambling Houses. A ONCE famous card-sharp—not reformed, but retired—said to me: “Show me a professional gam bling house where the roulette wheel isn't crooked, where any oth er mechanical device is on the square, where the operatives from the bosses on down won’t skin a customer—call him a sucker, if you want to; the terms are interchange able—and I’U drop dead from shock, because no such outfit ever existed nor ever will, not so long as games can be tricked, as all of them can, and gamblers are out for the coin, a* they naturally are, and the hand Is quicker than the eye, which it is.” “But how about the mathematical percentage in favor of the bank— isn't that enough?” I asked. “How about the mathematical percentage of crooked law-enforce ment officers who have to be bribed?” he countered. “There’s never enough coming in to satisfy those babies." IRVIN 8. COBB CopjnlZht.—WXU Service. Washington! Digest Jjk. National Topics Interpreted By WILLIAM BRUCKART 'i PStSs bldg Washington d c. llliil Washington. — Much has been written and much more has been said concerning Railroad* the complexities Face Crisis of modern civiliza tion and modern business. Many times - have we heard how closely agriculture Is re lated to other industry; how general commerce and industry is interwov en with every phase of our life." There can be no doubt of this condi tion. No proof is required. Nor is it necessary to argue that when one section or segment of business Is on its sickbed, there is a resulting bad reaction upon every other phase of commerce and industry to a greater or less extent. With these fundamentals in mind, it becomes obvious that probably the most important development of a national character in the last fqw weeks is the appeal of the country’s railroads for the right to increase their rates by 15 per cent The Re tails of their condition, as presented In hearings before the Interstate commerce commission, show they are confronted with a crisis. Since they are under the rigid supervision of the federal government the fed eral government is the doctor in the case. They will live or die by the command of the interstate com merce commission. The case they have presented shows, for example, that they h* v e had to cut thousands upon thousands of workers off of the payroll; that they have been unable to buy more than one third of the customary annual purchases from other busi nesses. and that more than one fourth of all the railroad mileage in the nation is now being operated as bankrupt property—that la, the property is in the hands of court receivers. So, adverting to the observations of the first paragraph of this dis cussion: a gigantic industry can not run at a loss without resulting in a bad heart or partial paralysis in other industry. Higher rates are always opposed for the very human reason that none of us enjoys taking any more money out of our pocket than we must. Many lines of busi ness oppose rate increases on the railroads because of the fear that it will reduce their volume of sales. But it occurs to me that in consid eration of a question of freight rates and charges which the railroads make, we ought to think of their sit uation as we do of other lines of business. Our retail grocer is not going to sell at a loss; the druggist can not subsist unless he makes a profit however small it may be. nor is the farmer going to continue to produce unless he gets a reasonable return from his work. The only dif ference between these and the rail roads is that the railroads can not raise their rates unless the,.inter- state commerce commission, a gov ernment agency, says they can do so. Further, there is a tendency on the part of a goodly number of per sons throughout the land to question the accuracy of statements made by business. No doubt you have heard, as I have, the remark that "yoO can’t tell whether so-and-so’s busi ness is bad off or not Big corpora tions can cover up and make black look like white.” Indeed, while 1 was listening to one of the 1. C. C. hearings in this case, a man in a neighboring seat made something of the same observation as I have quoted. My answer to him was in substance that none of the railroad officials would dare lie to the com mission, even if they were so in clined, because the commission has access to every item of expense and income, even all actions of the management of the carriers. It might be aaaed in this con nection that officials of the inter state commerce commission under stand there is to be a request by the interstate truck operators for an increase in rates if and when the rail lines are allowed higher rates. The trucks are represented as slow ly starving to death—but they can’t and won’t boost rates until their competitors, the railroads, charge more for their services. • • • I believe there is no better way to set forth the plight of the railroads. as presented to Plight the commission, of Carrier* toan to include oere some ex cerpts at the statement made offi cially in the case by Dr. J. H. Par- melee. He is director of the bu reau of economics of the Associa tion of American Railroads and, as such, knows the details. "Today,” Dr. Parmelee said, "the carriers are reducing forces and are curtailing their purchases of equip ment, materials and supplies. They are forced to do this because of the financial conditfon in which they find themselves. This retrenchment has a serious economic effect on em ployment, on the manufacturers of railway supplies and their employ ees and on all business activity. Such a policy with its unwholesome economic consequences only partial ly offsets the rising tide of costa. “The railroads in 1927 to 1930 In stalled moi^e than twelve times as many locomotives each year, nearly five times as many freight cars, laid nearly three times as'many tons of rails and laid nearly twice as many cross ties as they averaged in the depression years from 1931 to 1936. “Capital expenditures for 1929 and 1930 averaged *863,164,000 a year. During the depression years from 1931 to 1936, the average of capital expenditures was only $206,813,000. "Similarly, the trend of railway purchases (of things they must use in operation) of fuel, material and supplies declined sharply during the depression years and never has re turned to anything like normal. Railway purchases in 1929 and 1930 amounted to *1.184,017.000 in each of the two years. In the five years from 1931 to 1935. the average per year was about *559.000,000. In 1936. the expenditures in this direction were up to *803.421,000. (Figures for 1937 are incomplete but there has been another decline because of necessary curtailment of buying.)’’ Dr. Parmelee turned to the ques tion of railroad receipts for their services. He told the commission that the depression years had left the railroads without any reserves. For seven years, he said, the rail roads have been barely getting by. and pointed out that at no time be tween 1931 and 1937 had they earned more than 2.57 per cent on their investment as it is appraised by the commission. In three of those sev en years, the records show, the railroads’ receipts did not amount to as much as their fixed charges, a term which includes interest on their debts, taxes and required amounts for paying off parts of their debts. In other words, all they earned in those years was Just enough to pay the people who work for them and buy the necessary fuel and operating supplies. • • • The argument to the commission is predicated, therefore, upon rising . costs, general ex- Rimng penses, and the Coat* dozen or so rail way presidents who testified before the commission stressed the fact that these expenses are out of control by the railroad authorities. Dr. Parmelee figured that these higher costs of fuel sup plies. wages and taxes had laid a burden on the railroads that i« greater this year by *664,789,000 than it was in 1933. The companies hope to get *567,287.000 of this sura from the 15 per cent increase in freight rates, and the railroads of the East are asking that passenger fares be increased from 2 cents to 2Vfc cents a mile, which they think will bring in an additional *47.500,- 000. From this it is seen that the carriers still will fall short of the full amount needed, but their ar gument, as 1 understand it. pro ceeds on the theory that they should not seek more of an increase than is sufficient to keep them from go ing broke. If the new depression conditions subside, there will be a larger volume of freight next year. That will enable them to make a profit. That is. a greater volume of business with the new rates will provide a profit unless there are new government taxes an 1 other burdens laid upon them. In this connection, 1 looked up the effect of the social security and carriers’ taxing act Commission records show the rail lines are paying *111,- 000,000 in taxes annually under these two levies alone, a burden the companies did not have two or three years ago. So it is evident that the rail lines are in a bad fix. They are con fronted on the one hand with mount ing costs of operation and on the other by declining receipts from the smaller volume of business. At the same time, it seems to me, the country has more than a passing interest in their plight This is so because during the last two months, for example, close to 60.000 railroad employees have been laid off—out of work, in the rail industry alone. With the decline of purchasing of supplies by the rail lines, other in dustry has suffered, has laid off men. Looking at the thing another way, one might call attention to federal appropriations for relief which have been in excess of three billions a year during the last several years. The figures given above show that the railway purchases—just one in dustry-have fallen off more than 500 millions, or about one-sixth of the relief appropriations. If the ap propriations to aid all unemployed are only six times as large as the drop in railway expenditures, it is easy to see what an influence is wielded and why I have taken the position that it is necessary to con sider the railways’ petition from the standpoint of the country as a whole. We, as citizens, have a bur den to carry whether it is done through .the railways or through some other avenue. None of those rail workers wants to be without a job, I am sure. • Western Newspaper Union. •JHHHk************** ★ ★ ★ ★ ★ ★ ★ ★ ★ STAR DtTST ★ ★ ★ ★ ★ ★ ★ it H J M.ovie • Radio J ★★★By VIRGINIA VALE^J T HE great experiment of a Fred Astaire picture without Ginger Rogers is now up for public approval, and first reports promise that ‘ it- will triumph at the box office. “Damsel in Distress” hasn’t the effervescent Ginger, but it has that most blithe of din- wits, Gracie Allen, and her solemn George Burns. The setting of this giddy, tuneful story is England, where Astaire as a shy matinee idol becomes romantical ly entangled with a peer’s daughter, played by the Ingra tiating Joan Fon taine. The story doasn’t get in the way of the dancing, and Astaire has nev er danced with such breathtaking skill before. Fred Astaire When you see him and Gracie romping through a carnival engaging in diz zy antics on treadmills, revolving barrels, and in front of those crazy mirrors that distort reflections, you will wonder why Gracie’s amazing talent as a dancer has been over looked so long. —■¥— The long delay in making another feature picture with the Dionne qnintnplets has at last been ex plained by Twentieth Century-Fox officials. They have been waiting for the little girls to learn English, figuring that audiences can’t be counted on to stndy French Just in order to understand the UtUe cher ubs. —*— Waves of dissatisfaction spread through Hollywood like an epidemic every once in a while, and lately producers have been having their troubles pacifying pouting stars. Lo retta Young has decided that she doesn’t want to make any more pic tures with Tyrone Power for a while. Not that she doesn’t like him. She does, but she thinks that the public tires of seeing the same couple on the screen in picture after picture. Ginger Rogers has served notice on R. K. O. that, in addition to her salary she wants a share of the profits of pictures she appears in. Fred Astaire and Katherine Hep burn both share in the profits of theirs. Dorothy Lamour has rebelled against wearing native dress in pic tures. Wants to be clothed like a civilized lady. And Wayne Morris wants no more build-up as a hand some youth. —-k— Wallace Ford is one of the screen players over whom the first-night mo- dience at “Of Mice and Men” cheered in New York recently. Even if the play runs all year, however, Wally figures that his fans oot through the country won’t forget him, for before going into the play he completed the as yet unreleased “Swing It, Sailor” for Grand Na tional, and three pictures in Eng land. Jack Holt is rounding out his twentieth year as an actor and his eighteenth as a mo tion-picture star. No other performer has enjoyed outstanding popularity more than half as long as he has, and Holly wood producers will tell you that he is just as popular with them as with the public. Whether he is assigned to horses or top hats, Jack is always amiable, and if a story seems thin he figures It is up to him to give a performance that will build it up. Some of the young players supporting him in Columbia’s “Under Suspicion” asked him recently how he got his start, and then shuddered a bit as he told them that he rode a horse over a thirty-five foot cliff into swirl ing rapids. ODDS AND ENDS—Marlene Diet- rich shed her uhui and bored manner in a New York night club and joined the crowd truckin . . . She could be as sensational in comedy as Irene Dunne is if she only would, but she won't . . . Ballroom dancing bores Fred Astaire until Benny Goodman starts playing and then he fust cant sit still . . . Betty Jaynes, youthful sensation of the Chicago opera, will play Norma Shearer’s old role in “Student Prince" when M-G M films it again as a musi cal .. . ff hen Dick Powell stopped over in Chicago between trains a group of fans surprised him by pre senting him with their autographed photos . . . Spencer Tracy will send out his Christmas cards from Ireland . . . Fathers of twins are the only eligibles for Hollywood's most exclu sive club. Membership so far consists of Bing Crosby, ( Laurence Tibbett, Charles Starrett and Richard Dix . . . Girls don’t want to be cast in the next Mauch twins picture because their favorite pets nowadays are white mice . . . The V oice of Experience will be broadcast coasl to-coast beginning De cember 27. G Western Newspaper Union. Jack Holt -rwwa.