| Show I i :t TIIE GUNNISON VALLEY NEWS GUNNISON UTAH News Review of Current Events the World Over Administration’s Billion Dollar Housing Bill Introduced — Strikes — Townsend Epidemic of Convicted of Contempt of House By EDWARD £) Wcsicm W Nrwt(r CENATOR ROBERT F WAGNER of New York and Representative Henry B Steagall of Alabama introduced simultaneously in the senate and house the administration bill setting up a program for the construction of homes for “families of low income ” Under the measure the government may lend to state or local housing authorities from $1000000000 I t VM I 1937 to July July 1941 the money Sen Wagner for this purpose to be raised by bond issues and the loans to be supervised by a new department the United States HousTo supplement the ing authority loans congress is asked to appropriate $50000000 to be paid in outright grants The loans are to bear interest at not less than the going federal rate and are to be payable over such a period not to exceed 60 years as the authority may de- termine Competition with private industry is guarded against according to the authors “by insuring that housing projects shall be at all times available only to families who are in the low income groups” The four year program calls for the construction of 375000 family dwelling units at an average cost of $4000 a unit Wagner snd Steagall insisted that the bill called for "de- centralization" "AH the direction planning and in connection with management publicly assisted housing projects are to be vested in local authorities Springing from the initiative of the conpeople in the communities cerned” they stated ’IThe federal government will merely extend its financial aid through the medium of these agencies The only exception to the strictly decentralized administration is that the federal government may set up a few demonstrative projects in order that local areas without adequate instrumentalities of their own may benefit by an experience in low rent housing” LJ AV1NG virtually countenanced the strike in the case of the General Motors controversy the administration found itself embarrassed by that favorite maneuver of John Lewis’ Committee for Industrial Organization Out in Monica Calif about 200 of the Douglas Airemployees craft corporation went on strike and "sat down” in the big plant completely stopping work on $24000000 worth of airplanes the company is The building for the government men defied a trespass warning and an order to evacuate the plant sent them by the police and Mr Douglas refused to negotiate with the union until the strikers got out of the buildings The situation was over complicated by a quarrel worker representation between the Automobile Workers’ union a C I O group and the Machinists’ union allied with the A F of L Finally the strikers were indicted for conspiring to violate two old California laws against forcible entry and trespassing and when 300 armed deputies appeared at the plant they surrendered and were taken to Los Angeles for arraign- ment Another big government job was halted for a time by a strike of employees of the Electric Boat company at Groton Conn which is building submarines for the navy There however the local and state police soon evicted the trespassers and arrested them and the rest of the employees a large majority resumed Speaking "not as an officer of the administration” Secretary of Commerce Daniel C Roper said that strike “that underany takes to take over private property is a very serious and fundamental thing and in my opinion will not be long endured by the courts” There was almost an epidemic of strikes throughout the country varimany of them of the Some were settled in short ety order but others are still on at this writing Among these was the strike at the Fansteel Metallurgical corporation in North Chicago W'here the disgruntled workers refused to leave the plant Gov Henry Horner was striving earnestly to bring bout settlement John L Lewis’ threat during the General Motors strike that "Ford and Chrysler are next" is being carried out The United Automobile Worker! union sent to Walter P Chrysler demands that the U A W be recognized by his corporation as tha sole collective bargaining agency warfare by the on private power Interests will be started sooa if the recommendations of President Roosevelt to congressional leaders are acted upon favorably In letters to Vice President Garner and the President Speaker Bankhead pPEN ment PICKARD ' I’nion urged that prompt action be taken to provide for the sale of electric power from the $51000000 Bonne: ville project on the Columbia river in Oregon and he intimated this might be taken as the forerunner of a national power policy The recommendations were in accord with a report from the committee on national power policy and also with the position Mr Roosevelt took in the controversy with I)r Arthur E TVA chairman who faMorgan vored with existing power companies and consideration for their investment Here is what the President proposed — That not less than 50 per cent of the power generated at Bonneville be reserved for sale to public authorities such as states districts counties and other municipalities and to associations of citizens 2 — That the government construct it- - own transmission lines sub stations and other facilities for transporting power so as to make the government project independent of existing utility companies — That the federal government control the rates to consumers through regulation by the federal power commission — That the power be sold at rates low enough to promote the widest use of electrical energy parto domestic and rural ticularly consumers These rates the President insisted should be fixed with relation to only that part of the total $51000000 Bonneville investment that the government saw fit to charge to power generation — That the federal agency administering the project be authorized to acquire by eminent domain if need be land franchises existlines ing transmission FRANCIS E TOWNSEND the elderly Californian who devised the old age pension plan bearing his name was found guilty of contempt of the house of representatives because he refused to testify before a house committee that was inh i s vestigating scheme last spring and "took a walk” out of the commit-tee room The ver-diet rendered by a Nf District jury jn Of Columbia court made the doctor liable to a sentence of one to twelve years in jail or a fine of from $100 to $1000 or both Judge Peyton Gordon deferred sentence until he could pass on a motion for a new f)R trial Townsend seemed rather to welcome the verdict saying he had "Lord bless you I’ll expected it be all the more active" he said when asked what effect a conviction w’ould have on his movement "I think it will be the general opinion that have been the victim of an injustice Our organization will be spurred to greater efforts” FOLLOWING the example set by 1 the five operating railway brotherhoods— engineers firemen conductors trainmen and switchmen— the sixteen brotherhoods with a membership of have voted to demand wage increases averaging 30 cents an hour This action was taken at a meeting in Chicago of the general chairmen of the brotherhoods Besides the pay increase the men ask the guarantee of full time employment for all regularly assigned workers and time for "standby” employees The brotherhoods embrace the clerks telegraphers carmen shop laborers machinists blacksmiths boilerdispatchers makers drop forgers sheet metal workers electrical workers freight handlers express and station employees maintenance of way men signal men and sleeping car conr ductors P LANS for the complete blockade of Spain by the other European lowers In order to starve out the civil war met with difficulties owing to the bringing up of points Inthe national volving honor of France and Russia The French made certain objections to the land patrol and the Russians to the sea patrol The Spanish loyalists were making a desperate effort to capture Oviedo where the insurgent garrison was attacked by dynamite The defenders throwing Basques numbering about 12000 men were hard pressed and it seemed Impossible that relief forces could reach the city In time to save them In the Madrid sector too the rebels were getting the worst of it for the forces government were about ready to make a mass assault on Pmzarron- - htll from which the Franco artii’ery has been shelling he road IN ORDER to curb "uhwarranted all Speculation” by members securities exchanges are asked to adopt certain regulations suggested by the securities and exchange commission The proposed rules would put exchange members on the frame trading basis as the general public They would have to put up the 55 per cent margin required of other securities purchasers and would be required to do this by 5 p m of the day of purchases In announcing the commission’! step Chairman James M Landis told reporters: “This procedure is in accordance with a plan of the commission to give the exchanges the opportunity to regulate the trading activities of their own members This course which has been adopted by the commission on previous occasions will allow greater flexibility in the administration of the rules and will lrmit minor adaptations to the various exigencies of individual exWhile the responsibility changes for the enforcement of these rules will thus lie with the exchanges the commission will observe both their enforcement and their effectiveness ” HENRY pHAIRMAN of Arizona gathered together the members of his Judiciary committee and began formal consideration of President Roosevelt’s proposition for federal Judiciary reform i n eluding the packing of the Supreme court It was understood the committee would arrange for at public hearings which opponents and proponents of the plan would be privileged to speak their minds Not long before Mr Ashurst and several other senators were called to the White House to discuss the strategy of the fight the administration faces The Arizona senator and Majority Leader Joe Robinson of Arkansas who was among the conferees only recently were vociferous in declaring a constitutional amendment was the only proper way to accomplish the President’s purpose But now they are n obediently supporting the measure Senators Frazier of North Dakota Bone of Washington and Nye of North Dakota also were summoned to the White House but what they heard there did not change their stand against the President’s plan Mr Nye indeed soon after delivered a radio address against it He did not especially defend the Supreme court but said he thought there are better ways of attaining the objective in conformity to the Constitution than the way of packing the court proposed by Mr Roosevelt Herbert Hoover in an address before the Union League club of Chicago uttered solemn warning that the President’s plan was a serious threat against the ultimate safeguard of liberty and condemned any such "quick and revolutionary change in the Constitution’’ At this wTiting 42 senators have declared against the bill 32 are on record for it and the rest have not committed themselves The administration leaders to expected pick up at least 12 from the noncommittal and claimed group more WIN ANT who as chair-maof the social security board had a lot of trouble with certain senators over patronage and whose reapoointment to membership on the board had not been confirmed by the senate sent his res-- i o n to the g n a President Mr Roosevelt said Mr Win-awas retiring to nttend to pressing private business and would be back in the federal service before very long The former governor of New Hampshire has been considered a logical candidate for the post of secretary of social welfare if that department is created by congress Succeeding Mr Winant as chairman is Arthur J Altmeyer already a member of the board To fill the vacancy In the membership the President nominated W Murray Latimer of New York JOHN G FFERING to make peace with the Chinese communists against whom it has waged war for ten years the National government at Nanking announced the terms on which those reds would be allowed participation In national affairs The Kuomintang’s demands are: Abolition of the communist army and its Incorporation m the National government forces dissolution of the Chinese communist state and its unification with the central government cessation of red propaganda opposed to Kuomintang principles and stoppage of the class struggle which divides society into antagonistic classes and invites mutual destruction That the Nanking government Is steadily growing stronger is made evident in the more conciliatory at-titude adopted lately by Japan A spokesman for Ilayashi’a new cabinet in Tokio Indicated Japan was willing to abate its demands for simultaneous settlement “of all pend-- ’ ing indents ana negotiate separate settlements foe each SEEN and HEAR around the THE CHtERfUL Itate to Of lie night then CORRESPONDENT Washington— Texas seems to be the covenant” President Wilson even sisted was Article X This was the more importance enjoying indearticle requiring the member nae than its area or Us pendence would seem to warrant in tions of the league to use force to this fight over President Roosevelt’s impose its decisions proposal to enlarge the Supreme Never Invoked court The question every one has Its power has never been invoked been asking since the President In fact no member is by the league his surprise sprang message —was Vice President Garner com nation has ever proposed that it be even Not invoked against Japan suited In advance? ir the famous Manchurian case Not The answer seems to be no even against Italy in the Ethiopian The reason the folks are asking The nearest approach to it case the question is significant of Washwas "sanctions” against Italy and ington’s reaction to the proposal knows that the sanctions one every this seem to think that proThey made a joke by the very Raposal is very puzzling in view of were and Britain particularly the extraordinary cleverness which tions which proposed them France has characterized other Roosevelt Of course commentators really congressional maneuvers Take the case tf Maury Maver- familiar with the League of Nations fight are really w’onderingif Presiick the much publicized Texas cowHe rushed in dent Roosevelt will prove as stubboy congressman It and introduced the President’s bill born as President Wilson did This may be that he will but no one without consulting anybody with whom the writer has talked was little short of gall and wormthey wood to Hatton W Sumners also of thinks so On the contrary point out that Mr Roosevelt is alTexas but who happens to be chairways asking for more than“he exman of the house judiciary commitpects to get tee There is another vital difference So that now it’s the Maverick bill In the league fight the sentiment which goes to Sumner’s committee against American entry grew very for consideration! Developments of any sigOf course there was no such rush slowly for the spotlight without regard for nificance did not begin until months the seniority of statesmen on the after the senate debate was in full Whereas there was a whole senate side The bill there was sol- flare of developments within a week emnly introduced by Senator Henry crop F Ashurst of Arizona chairman of after the Roosevelt Supreme court proposal the judiciary committee No legislatures rushed Into the breach in the early months of the Legislature Opposes But the Texas angle in the up- league fight In fact the group that has been known since as the per house was not confined to Cacand of which Senatus Jack Garner The two Texas Borah and Hisenators figured in as amusing a tor William E bit of timing as has occurred for ram W Johnson were outstanding members did not form until the some time Senator Morris Shepfight had been under way for pard who has been getting nommonths inated and elected to the senate In fact it was not clear— even to without opposition enough to really worry him since 1912 rushed out New York editors— that any senator hoped to defeat ratification really a statement the Presiapproving of the treaty until something like dent’s proposal three months after the fight startA few hours later word came from Austin that both houses of the ed! So that up to date the present Texas legislature had gone on recfight in tempo compared with the ord heavily against the enlargement League of Nations battle is like a of the Supreme court Within a few more hours Tom horse race compared with a chess game Connally the other United States It is little wonder that such libsenator from Texas made a stateerals as Senator George W Norment the President’s deploring who have talked with Dr Arris ideas about the high court and thur E Morgan are against him promising to oppose any such legisand with David E Lilienthal in the lation! TVA controversy The point is that There is still another Texas angle Dr Morgan does believe in far more In the President’s message sending liberal treatment of the privatethe bill to congress he said: ly owned utilities than the "With the opening of the Twengroup approves tieth century and the great increase in population and commerce Seek Public Ownership and the growth of a more complex John E Rankin Representative type of litigation similar proposals believes— to state the most extreme were introduced in the congress To view expressed from the Lilienthal meet the situation in 1913 1914 group— that the fight should go 1915 and 1916 the Attorneys Genon practically without quarter until eral then in office recommended to the congress that when a district all the electric business in the counHe or a circuit judge failed to retire try is under public ownership would pay for the privately owned at the age of seventy an additional utility systems but on the basis of judge be appointed in order that the second-hanclothes "Not worth as affairs of the court be much as new might clothes” He would aland dispromptly adequately low nothing for franchises in fixing charged" the to be price paid In taking the The first of these attorneys genutilities over nor for any “profit” eral President Roosevelt disclosed in figuring return on inelement was Thomas Watt Gregory of Texvestment And he would give little as close friefid of Colonel E M to the "men who have House and recommended by him to been us for twenty years” robbing Woodrow Wilson! The second was Consider in contrast with this the James Clark McReynolds now the views expressed by Dr Morgan fn court Supreme justice whom the New Dealers would rather see re- his talks with some of the senators He has said that rates should be tire than any one else on the bench utilities — And incidentally he is more than fixed—for the private which would allow a reasonable seventy return on investment The rate should be determined by two facMaking Comparisons tors — one the actual price of money Comparisons of the Roosevelt proat the moment the other a certain to posal enlarge the Supreme court to the Woodrow Wilson League of element of risk On occasion he has Nations fight are the order of the mentioned eight per cent as a not unreasonable figure day especially on the part of writThis seems very high to his ers hoping this struggle will take opponents especially as the Washon the importance of the former Post owned by Eugene ington Actually the comparison is the Meyer who could certainly not be more interesting because of differsaid to be hostile to private investences ment recently attacked the At the outset setup however it might in Washington saying that the rebe recalled that the outcome of the turn of six and a half per cent League of Nations battle is being allowed the Potomac Electric Co distorted in most of was too spectacularly high! Incidentally the rate the comparisons of this calculation is the lowest for Had it not been for the stubof any city size in comparable of President bornness Wilson who the United States as far as refused to permit the crossing are concerned which seems of a "t” or the dotting of an to make the idea that water pow"l” Wilson would have won er is so much cheaper than steam that fight He would have won a little silly as Washington is it despite the ranging of every raserved entirely by steam power cial group in America against him won it despite the masterly direc- Another Factor tion of the Republican senators by But Dr Morgan has another facSenator Henry Cabot Lodge and won it despite the fact that the 1918 tor that is stiU more annoying to the government ownership crowd election had shown the country was He believes that the rates should be turning against him xed on a capital which should alMost commentators seem to have low a certain percentage of what overlooked the fact that the Norris Lilienthal-Ranki- n the group treaty would have been rati- call water Dr Morgan believes fied by the senate and that the United States would have Joined the that every great electric system had some element of human ability League of Nations if Wilson had behind it which should not go unrenot sent a command to all his loyal warded In some cases this elefollow’crs to vote against ratification ment contributed a as long as the Lodge reservations great deal in other less were included But he believes that in some InWhereas Lord Robert Cecil long stances the human genius that enafterwards admitted that the Lodge eservations w’ould not have made visioned the thing and brought it 'Je lightest difference! 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