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News Review of Current
Events the World Over
” *
Instill, Brought Back for Trial, Defends Himself —Token
Payments on War Debts Are Barred —Compromise
Silver Bill Being Formulated.
By EDWARD W. PICKARD
CAMUEL INSULL, once the grand
old man of public utilities, has
been brought home to be tried for bls
alleged sins after his long period of
refuge In foreign
lands. Ills "prison
ship," the Exilona, ar
rived off Fort Han
cock, N. J., and Insull
was taken off at open
sea by the United
States coast guard
cutter Hudson, which
landed him quickly.
After an automobile
ride to Princeton
Junction, he was put
aboard a train and
r ■- "W
■. ।
/A * f
I ' A
Samuel Insull
transported swiftly to Chicago. Ills
son, Samuel Insull, Jr., had been per
mitted to Join him on the Exllotia and
accompanied him on the trip west.
Landing on American soil, Insull
appeared to recover Ids old time con
fidence. To reporters he said : "lamin
America to make the most Important
fight of my life. I am fighting not
only for freedom but for complete
vindication. I have erred, but my
greatest error was In underestimating
the effects of the financial panic on
American securities, and particularly
on the companies I was trying to
build.
"I worked with all my energy to
save thbse companies. I made mis
takes —but they were honest mistakes.
They were errors In Judgment, but not
dishonest manipulations.
"Arbitrarily, I had been Instructed
to resign as head of these companies
which I had built and which I had
tried to protect.
“I was told I hilt 1 was no longer
needed. Tired from the fruitless
struggles to save the Investments of
thousands of men and women, dis
couraged In my attempts to save the
investments of my friends and asso
ciates as well as everything I had, I
got out.
"No charges were brought against
me until I had been away for three
months. My return at that time would
have further complicated the prob
lems of the reorganization of the com
panies.
"Tlie whole story has not yet bden
told. You only know the charges of
the prosecution. Not one word has
been Uttered in even feeble defense of
me. And It must bo obvious that
there also is my side of the story.
“Whe i It is told in court, my judg
ment may be discredited, but certainly
my honesty will be vindicated."
RUSSIA has been angered by a rul-
ing of Attorney Genera) Cum
mings and there is danger that all the
plans for re-establishing trade with
that country will go awry. Mr. Cum
mings was called on to determine
what nations would be barred by the
Johnson act from marketing their se
curities in this country or in any way
receiving financial assistance. This he
did by announcing the six foreign
nations that are not in default to the
United States government on their
obligations. These are Finland, Great
Britain, Czechoslovakia, Italy, Latvia
and Lithuania. Finland has met In
full all Installments on Its war debt.
The others have made token payments
on recent installments.
Immediately after the attorney gen
eral’s ruling wag made public It was
authoritatively stated In Washington
that President Roosevelt had decided
to accept no more token payments;
therefore England and the others that
have made such payments will fall In
to the default class on Juno 15, when
the next payments are due. Even Fin
land may now default. If the nations
proffer token payments they may be
accepted by the treasury as “on ac
count." but the nations will still be
held In default and thus will be shut
out under the new Johnson aet from
obtaining any government loans in the
United States.
The President will Inform congress,
It is reported, that he desires ho legis
lation at this time with respect to the
debt question.
Soviet Russia fell in the default
class because it ignored obligations of
the preceding czarist and Kerensky
governments.
AIMING directly at the American
Telephone and Telegraph com
pany and the Western Union company,
both of which aye said to have defied
him. Recovery Administrator Johnson
made public a drastic code for the
wire communications Industry pre
pared by bls own staff. Imposition of
a code is regarded to all Intents the
same as writing law for the Industry
affected, equal In scope to the author
ization for licensing industry. Noth
ing like it has been resorted to here
tofore.
In the telegraph case, with all but
one minority group flatly opposed to
any code, the NRA is proposing to
change longstanding conditions and
alter the Internal economy of the In
dustry on the ground that existing
conditions burden commerce and re
duce employment. A date for hearings
was set, after which the President
was to be asked to take action.
The code, if adopted, would deprive
extensive Interests es financial ad-
vantages amounting to many millions
of dollars, the NRA authorities de
claring these are not fairly held.
Among the things it would abMjsh
are: Exclusive rights of the Western
Union Telegraph company to some
thing like $25,000,000 worth of busi
ness annually; use by many corpora
tions of private wire circuits leased at
figures alleged to be out of line with
regular charges for the same volume
of business, and free use of these cir
cuits by clients of the lessees to the
tune of millions of dollars worth of
words each year.
‘r\RASTIC reorganization of the
NRA to give the federal govern
ment a permanent balance of power
between large and small Industries
was recommended In the majority re
port by the Harrow board, which Pres
ident Roosevelt decided not to make
public in Its original form but referred
to three government agencies for pre
liminary digesting.
On the theory that the NRA has
shows business Incapable of self-regu
lation, the 5-to-l majority report pro
poses to scrap all the present code au
thorities In favor of an entirely new
set-up In which the federal govern
ment, big business and little business
have equal voting representation.
SOME sort of a compromise on silver
legislation that will be acceptable
to both the White House and the
silver bloc in congress is likely to be
worked out, though
Senator Borah, who
wants outright remon
etization of tlie white
inetai, thought the
plan being prepared
would not serve. Sec
retary of the Treas
ury Morgenthau and
eight silver senators
held prolonged confer
ences, and all but the
gentleman from Idaho
were fairly well satis
fied. Senator King of
Secretary
Morgenthau
Utah said he hoped for a bill which
would nationalize silver bullion and
provide for the establishment of a 25
per cent silver reserve for currency.
Probably the measure will be manda
tory as to policies and permissive In
leaving to the discretion of the Pres
ident tlie means of carrying out the
policies.
TO AVOID Impending defeat by the
senate, the President withdrew
from Its consideration the names of
two men lie had appointed to office.
One was Willard L, Thorp who had
been made head of the Commerce de
partment's bureau of foreign and do
mestic commerce. The senate's objec
tion to Mr. Thorp, who has been serv
ing as head of the commerce bureau
pending action on his nomination,’was
based on the fact that be once regis
tered as a Republican in a Massachu
setts primary.
The other withdrawal was of Rene
A. Viosca as United States attorney
for the Eastern district of Louisiana.
He was opposed by Senator Huey P.
Long.
ANDREW W. MELLON. the ven
erable and wealthy ex-secretary
of the treasury and former ambassa
dor to England, came out on top in his
latest contest with the
Department of Jus
tice. The government
had accused him of
evading his income
taxes and sought Ids
indictment by a fed
eral grand jury In
Pittsburgh. However,
the grand jury re
fused to return a true
bill, declaring the
charges were without
basis.
The foreman of the jury was Wil
liam Beeson, a bank clerk. Among
others on the Jury were five laborers,
two farmers, two engineers, two me
chanics, tw ; o clerks, one plumber, one
carpenter, a lumber dealer, and a
writer.
Mr. Mellon said: "I am of course
gratified that 1 have beet) exonerated
by a jury of my fellow citizens. The
fact that the grand jury reached a
sound conclusion, notwithstanding the
unusnal methods pursued In my case,
is proof of the good sense and fairness
of the American people."
The finding of the Jury probably
ended finally the affair, Mr. Cummings
saying the government would not chal
lenge the decision. It may also put
an end to the not Infrequent attacks
on Mr. Mellon in congress.
PRESIDENT ROOSEVELT is again
a grandfather, for down in Fort
Worth, Texas, a daughter has been
born to Mr. and Mrs. Elliott Roosevelt.
The baby, who weighed six pounds
six ounces, has been named Ruth
Chandler Roosevelt
AIR mail flying by the army has
come to an end, and the routes
are being taken over by commercial
aviation as fast as the short term
contracts are let
WHEELER COUNTY EAGLE, ALAMO, GEORGIA
। IJOW the League of Nations pro
* 1 poses to aid China was told in a
I long report, made public by the Nam
j king government, covering the ar
rangement made by Dr. Ludwig Rajch
man, representative tn China of the
league. This plan. It is supposed, led
to Japan’s recent statement of a policy
demanding that other nations keep
their hands off China. The document
was politically inocuous, being chiefly
the recommendations of technical ad
visers for projects designed to attract
foreign capital to China and consoli
date it as an Independent nation. The
list of advisers did not Include any
Japanese.
The chief Interest in the report,
from the standpoint of the United
States, concerned the section devoted
to cotton. It shows that China must
■ purchase about $60,000,000 worth of
raw cotton annually, most of which
comes from the United States.
The report also proposes an exten
| sive road building program which is
i likely to improve the market for Amer
ican cars as well as gasoline.
A Chinese national military and
I communications commission has just
left .Shanghai for the United States by
way of Europe. Its twenty-two mem
bers are Instructed to learn how China
can acquire a modern war machine
and methods of communication that
are up to western standards.
D EPORTS from Cairo, Egypt, told
EN somewhat hazily about fierce
fighting that was going on in the Ara
bian peninsula where Ibn Saud, the
i-T*
Ibn Saud
I Itai. The war started with a border
dispute.
According to the conflicting stories
reaching Cairo, both sides claimed vic
tory. One report was that the Emir
Feisal, heir of Ibn Saud, had over
taken and defeated the rear guard of
the retreating Yemeni army.
From Yemeni officials, however,
came telegrams stating that their re
treat had been halted and that the
Satidian army suffered a severe defeat
in a 23-hour battle. Capture of 36 ar
mored cars, nine of them undamaged:
3C guns, and 400 prisoners was claimed
by the premier of Yemen, who wired
that the Saudian casualties exceeded
I 2,000.
Because of their nearby territories
t in Asia and Africa, Great Britain,
i Italy, and France were watching the
conflict with deep concern and all had
warships at hand to protect their In
terests.
HUSBANDS and wives who want to
be divorced —and lots of them do
—may now accomplish their purpose
In conjunction with a pleasant visit to
Cuba, which Is bidding for the Amer
ican divorce business. President Men
dieta signed a decree that shortens the
time required to get mutual consent di
vorces from three years to six months.
It also provides that, Instead of three
appearances before the court at inter
vals of six months, the parties may
make three appearances 30 days apart.
Four new causes are added to the
15 recognised as grounds for divorce.
They are bigamy, vice or immorality,
use of any drug, and disparity of char
acter.
GREAT BRITAIN and Japan are on
the verge of a big trade war. The
British have threatened to take strong
action to protect their textile export
interests against Increasing Japanese
competition, although the British gov
ernment officially declares it will do
everything to maintain amicable rela
tions with Japan. The official position
in Tokyo Is that Japan can take care
of herself, and there was every Indica
tion that It would not yield to the Brit
ish ultimatum that it must modify its
trade program and tactics. The Brit
ish already have begun to impose
quotas on Japanese goods, but trade
leaders In Tokyo said this would not
; hurt their country seriously, especial-
I ly since Japan’s imports from the
I British Isles In 1933 totaled. 83,000,000
I yen or almost as much as was export
i ed there, 80,000.000 yen. Hence, they
■ said, the Tokyo government would be
able to make reprisals.
Trade with the British dominions
is considered far more important and
। the Japanese are confident the domin
ions will not follow the mother coun
try’s lead—especially Australia, which
sold to Japan In 1933 four times its
; purchases, and Canada, which sold
seven times as much as It bought
ACCORDING to the unanimous re
port of a house committee of in
vestigation. Maj. Gen. Benjamin D.
Foulois, chief of the army air corps,
: acted "in clear violation of existing
law" in the proposed purchase of air
planes costing $7,500,900.
Coupled with the criticism of Foulois
was a commendation of Harry H.
Woodring, assistant secretary of war.
The report stated that late In 1933
the Public Works administration set
aside $7,500,000 for the purchase of
army airplanes. It asserted that
Fdulois had decided to buy the planes,
without competition, from the North-
I rup corporation, the Boeing Airplane
; company and the Gletm U Martin
: company. On Woodring’s Insistence,
the plan for direct purchases was
dropped and specifications drawn on
; which competitive bids were asked.
C by Western Newspaper Union.
A. W. Mellon
fanatical king of
Saudi Arabia, was
making war on the
ancient kingdom of
Yemen, determined to
conquer It. Already
the Saudlan army,
which Is powerful and
equipped with all mod
ern arms, had cap
tured the Yemeni sea
port Hodeida, and It
was advancing to at
tack Sana, the cap-
BRISBANE
THIS WEEK
Bahn for Bankers
Wheat Burning Up
We Drink More Whisky
Six Billions for Weapons
The new stock exchange law may
bring business and balm to worried
bankers that now look upon their piti
ful, huge piles of “liquidity,” alias
ready money, unable to lend it, be
cause they are afraid of everything
that calls Itself "security." That is as
bad as having a cow and being afraid
to milk her lest she kick.
The definition of a banker as one
who “lends you an umbrella when the
sun is shining and takes it back when
ft rains” is not Just. The sound
banker is one who does not lose his
bank's money. How can he lend it
when he has not the faintest idea what
anything or anybody Is worth and does
not even know what a dollar is worth?
A law compelling stock speculators
to margin their gambling by 40 or
more per cent may stimulate bank
loans. The banker may say to the
speculator and broker, “I’ll add 20
per cent cash to that margin, or even
40 per cent, because I love you both,
only I must have a first lien on the
entire business.” What could the
virtuous, reforming brain-trusters do
about that?
Bad news from wheat-growing re
gions, Intense heat burning up crops.
In Nebraska, hot winds added to in
jury done by the sun's heat, sweeping
away moisture.
The experiment of planting only
just as much wheat as is needed may
prove disastrous If rain Is too long de
layed. You cannot regulate crop pro
duction as you can that of automo
biles. or shoes.
In this year of our Lord, Americans
are drinking more whisky than they
did before prohibition, and paying
taxes on it. Three hundred millions
of gallons of bootleg liquor is not In
cluded In the statistics. Beer drinking
has fallen off 50 per cent, according to
reports from Washington. Prohibition
restored whisky as the national drink.
Thomas Jefferson, who thought beer
would provide an antidote to drunken
ness. which was widespread In his day,
would be disturbed by the beer news.
But he was old-fashioned.
Figures supplied by the League of
Nations show that European countries
have spent about $6,000,000,000 since
the last war on killing machinery for
another war, while carefully refrain
ing from paying the $10,000,000,000
that they owe us.
It is announced from Paris that, for
the fourth time. France will default
on the war debt to the United States.
And it Is probable that England will
default again, as she did last time.
Last time she handed Uncle Sam "a
token," saying:
“Please accept that, and don't call
It a default"
It Is doubtful that this country
would accept a token this time. Eng
land probably either faces a substan
tlal payment or official default.
(ler.many, owing private debts to
Americans, English and French plans
to pay the English and French, and let
the Americans wait, in accordance
with a well-established European cus
tom. President Roosevelt Is said to
have Informed Germany that he does
not favor this discrimination.
He might stop the German nonsense
by Informing Mr. Hitler’s government
that mill! he treats his American
creditors exactly as nny others the
ports of the United States will be
closed to German products and. If
necessary, to Gertnan ships also.
This country doesn’t need Europe,
and Europe does need this country.
"Steel" is looking up, the output be
ing at a higher level now than any
time since June. 1960.
Incidentally, in Geneva, where world
news and war news centers, it is
learned that “the nations are strength
ening every military branch of their
governments."
If all this getting ready should end
as it usually does In Europe you would
see United States steel production go
up fast. Many million tons of iron
would be needed tor killing.
It is to be hoped that this time our
government will not send ten thousand
million dollars to enable Europe to pay
for her killing machinery, as was done
last time.
A Texas candidate declares his con
gressional candidacy anonymously, re
fuses to give his name, but issues a
photograph of himself as a boy six
years old, with “button shoes and a
suit forty years old.” saying. “Judge
me by this.”
That picture Is apt to deceive the
public. At the age of six almost any
human being looks Intelligent, honest,
pleasing. But forty years of time, pol
Itics and scheming often change that
Railroads, battling to recapture traf
fic. have orchestras on trains, pretty,
sweet “hostesses” in club cars, saying,
"Can I do anything for you?”
Such things will help little. Quick,
cheap transportation is what people
want. The elevated railway In New
York never made money until it
ciftnged from 10 to 5 cents. Then It
made a great deal until the subway
came.
King Features Syndlcal*. ln«-
WNT Serrioa
(h IMO $ fll
National Topics Interpreted Aa
by William Bruckart
Washington.—The Republicans are
giving some Indications that they in
tend to fight for elec-
Queer Quirk tlonof their partisans
in Politics in the next congress
on the ground that
the emergency Is over and that Presi
dent Roosevelt and his administration
are continuing on a spending spree
just to afford deserving Democrats
with pie from the government counter.
The tipoff as to the direction from
which the attack will come arose the
other day without attracting a great
deal of attention. It came from Rep
resentative Snell of New York, the Re
publican leader in the house, who op
posed one of the newer brain-trust
creations because he declared, un
equivocally, “the emergency is over."
After Mr. Snell had made the state
ment, I Inquired of a number of per
sons, astute in politics, what they
thought of this anomaly. Here is a
leader of the opposition party declar
ing that the emergency is over, and if
that condition exists, the leader of the
opposition, by inference at least, has
admitted that credit for the Job must
be given the Roosevelt administration.
I find as well that the Democrats can
hardly admit the correctness of the
statement without admitting at the
same time that there should be an end
Immediately to the countless emergen
cy agencies that the Roosevelt admin
istration has set up. It seems to me,
therefore, that we are witnessing one
of the most ridiculous situations that
has ever occurred in politics where
peculiar things are the rule. Suc
cinctly, it amounts to this: each side
actually Is contending that the other
is right.
Os course, It should be said, much
water will flow under the bridge be
fore the votes are counted in Novem
ber; Indeed, many changes will have
come before the congressional cam
paigns in the various states get stirred
up to a white heat, but unless the
course of battle now indicated is al
tered, I predict the cainimlgners will
have to do some fancy high rope walk
ing. It surely appears that getting
one’s own legs tangled up in those ar
guments is about the easiest thing in
sight
Curious possibilities are offered by
the situation. For example, are the
Democrats going to go out on the
hustings and say to their mass meet
ings In effect that “we have not suc
ceeded; we must keep the AAA and
the NRA” and others? And. at the
same time, are we going to hear
from Republican spellbinders that
“the Democrats have licked the de
pression and they must now put an
end to their orgy of spending and run
ning up bills which the taxpayers must
meet"?
Neither side, of course, will say It in
those words. But, if the argument
goes ahead as it has started, that will
have to be the substance of their tale
to the voters. Therewillhave to be some
very careful, as well as very quick,
thinking before the campaign's end.
tine politiclal observer here suggested
that this may turn out to he a most
confusing campaign because of the
anomaly that is now presented by Mr.
Snell's declaration.
• • •
There Is considerable discussion
here as to how far-reaching the effect
may be if the Re-
Just publicans stress,
Speculation wlth sufficient vigor,
the contention that
the liemocrats are trying to hold on
to the extra jobs and that they are
continuing to spend taxpayers’ money
for repayment of poiitical debts. There
is always something sinister about
that kind of thing. Whether the
charge is right or wrong, many voters
get suspicious when campaigners per
sist in talking about raids on the fed
eral treasury. They always think of
It in terras of theft of money from the
local bank or stores and not in the
terms of political maneuvering, al
though I confess 1 can see little dif
ference. It always has happened that
the political party in power has con
trolled the flow of public moneys Into
the spots where the funds will do the
most good, politically, and when either
side kicks about that. It seems to me
It is exactly like one mule calling an
other “longear."
I won’t even suggest that I can
guess what the ultimate effect of these
strange arguments is going to be.
Anyone who tries to predict the result
at this time Is Just being silly. The
best judgment I can get is that the re
sults in the various congressional dis
tricts are going to vary. The differ
ence likely will be dependent entire
ly upon hew many mistakes—plain
boiMiead statements —the various can
didates make in their attempts to fol
low arguments and analyses laid down
for them by the national political com
mittees. My belief Is that there will
be plenty of them and there ought to
be, therefore, a considerable amount
of surprise when the rotes are
counted.
It is quite apparent to the Demo
cratic leaders, and they say so. that a
number of house seats, now held by
Democrats, will be turned over to the
Republicans next fall. There are
seats occupied by Democrats who have
no reason on earth to be in the house
except by virtue of the tremendous
landslide that placed Mr. Roosevelt* In
the White House. Districts normally
Democratic are more than likely go
ing to continue to elect Democrats,
but the “political accidents” that elect
ed many others of the vast majority in
the house are going to send many
home because they come from over
whelmingly Republican communities.
The Republican leaders are asserting
they will pick up eighty or ninety
seats from the Democrats next No
vember. There can be no doubt that
they will gain some, but eighty er
ninety is a high figure in anybody’s
language.
• • •
It seems to me that Representative
Mark Wilcox of Florida has won a
rather signal honor
‘First Termer’ n his first term as
Wins Honor « member of the
house of representa
tives by obtaining passage of the leg
islation that has come to t>e known as
the municipal bankruptcy bill. It Is
something like twenty years since a
‘ifreshman” member of the house of
representatives has sponsored a piece
of legislation of national scope that
was passed and become a law. Plenty
of new members have introduced bills,
nationwide in their effect, but as far
as my research has disclosed, none has
been successful in the last twenty
yea rs.
Mr. Wilcox won membership In the
house by defeating Mrs. Ruth Bryan
Owen, daughter of the famed William
Jennings Bryan, for the Democratic
nomination in his district where the
nomination Is tantamount to an elec
tion. So he was given a baptism of fire
before he ever reached the h^u^ It
self. Whether It was the pc'H'w!
prestige won by licking an outstand
ing Democratic woman, or for other
reasons, the fact remains that Mr. Wil
cox finally forced through a piece of
legislation that constitutes something
entirely new in our national structure
of laws.
The measure, as 1 said, Is national
In scope and it probably will affect
the financial status of some 2,500 com
munities which the bill calls taxing
districts. This list of taxing districts
includes municipalities, counties, bor
oughs, villages, parishes, townships,
and incorporated taxing districts such
as schools, drainage, irrigation, levee,
sewer, paving, sanitary, port, or any
other districts in which improvements
have been made in bonds and sold to
pay for them. In order to take ad
vantage of the provisions of the law,
the taxing district must declare itself
to be insolvent and unable to pay the
Interest or principal of the debt The
officials of the taxing district may pe
tition a federal court for the right to
arrange its debt on a new basis, but
the court must be shown that at least
three-fourths in number and amount
of holders of the bonds are willing to
agree to the terms of a compromise.
If they do agree, then the court may
Issue a decree that will compel the re
maining bondholders to accept the set
tlement.
What happens, of course, is that the
taxing district will be able to replace
the defaulted bonds with a fresh series,
probably at a lower Interest rate. The
taxing district gets out of the predic
ament of what amounts to bankruptcy,
and the bondholders get new securities
which are marketable and have some
thing like their face value because the
interest will be paid. This privilege
is extended for only two years, but it
is the general understanding that the
communities concerned will he able
to accomplish settlements with their
creditors much sooner than that, and
it is obviously hoped also that Im
proved financial conditions through
out the nation will make the job of
rearranging the debts easier than It
was a few years ago.
The bill did not get through con
gress wifhout a fight. It ha^f^Oty
of opposition from members who con
tended It was a step toward repudia
tion of debts, a thing always to be ab
horred. There was argument also that
by granting permission for the munici
palities and taxing districts to force
such compromise as will result, the
congress was making such securities
less attractive to investors.
• • *
One of the obvious results of having
the spotlight turned onto an individual
or a fact or an 1s-
Kidding sue is plenty of com-
the NRA ment. People talk
about it Sometimes,
however, the talk develops jibes and
Jests and ofttlmes they are not pleas
ant for the ardent advocates of a
proposition to swallow. Fn? Instance,
until recently discussion of NRA had
been confined to serious argument
very often of a heated character,
lately, however. Jokes and puns about
NRA have been emerging with greater
frequency and there are now a con
siderable number of them. The lat
est. and one of the best that I -have
heard, runs as follows:
N. R. A. me down to sleep,
I pray Thee, Lord, my codes to keep;
If I should bust before I wake,
A. F. of L. my plant will take.
I heard already that the American
Federation of Labor considers the ref
erence to it in the doggerel to be close
ly akin to unfair practice, or what
ever it Is organized labor says about
those who are not its supporters. (Jen
era! Johnson’s reactions are not yet a
matter of record, although I know he
has seen the thing.
® tar Western Newspaper Union
