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Show TI1E LEHI SUN. LEIIIUTAII News Review of Current Events the World Over United States fledges Aid for Peace and Security J. P. Morgan Questioned by Senate Committee-Plan Committee-Plan to Finance Public Works Program. By EDWARD W. PICKARD RESPONDING to demand for a clear statement of the policy of the United States In the matter of peace and disarmament, Norman H. Davis, amDassaaor-at-large, announced to the disarmament conference In Geneva Gene-va what seems to many a revolutionary revolution-ary departure from traditional American Ameri-can policies. Apparently Ap-parently It means that the United States has aban- doned Isolation, neutrality rights Spe- f , A r ' 1X1 v - N, H. Davis and the freedom of the seas. clflcally, Mr. Davis pledged his gov ernment never to Interfere with in ternatlonal action against a nation that has been satisfactorily Identi fied as an aggressor, and to partlcl pate In "effective, automatic and con tinuous International supervision designed to make certain that the nations carry out their promises In disarmament. "President Roosevelt's message,' lie said, "Is a clear indication of the fact that the United States will exert full power and Influence and accept its just share of rcsponslbll lty to make the results In disarma ment definite, prompt and effective. After announcing that the United States was willing to consult with the other states In case of a threat to peace, Mr. Davis set forth the American policy In these words: "Further than that, in the event that the states, In conference, determine de-termine that a state has been guilty of a breach of the peace in violation of Us international obligations and take measures against the violator, then, if we concur in the Judgment rendered as to the responsible and guilty party, we wlli refrain from any action tending to defeat such collective effort which these states may thus make to restore peace." Asserting that there must be real accomplishment In the way of disarmament, dis-armament, or a reversion to a race In arming, Mr. Davis proposed dras tic, arms reduction, and promised that ll.e United States would go as Jar in this as the other states. Great Britain, Germany and Italy were highly pleased with Mr. Davis pronouncement, but France remained re-mained dissatisfied, both with the ecurlty offered by the United States and with the Davis proposals for armament reduction. Hie more the French get, the more they demand, de-mand, and their obstinacy is exceedingly exceed-ingly irritating to the other nations. Foreign Minister Taul Boncour told the conference that France would Dot reduce her armaments unless a definite system of mutual assistance Is created, supplemented by genuine impentslon of armaments. The supervision, su-pervision, he said, must especially cover armaments which are manufactured manu-factured in private factories, INVESTIGATION of the private banking Arm of J. P, Morgan & Co., greatest of its kind in America, Amer-ica, was started by the senate banking bank-ing committee with i i .nnyywM ducted from the firm's taxable lft come In 1931, 1032 or 1933. Three or four million dollars of the $21,- 000.000. be said, was deducted from profits in 1931 a year in which the partners paid no tax- but none in 1932, when the firm "had loss enough." Oa the second day the senators heard about Morgan & Co.'s "preferred "pre-ferred list" of friends to whom the firm sold Alleghany Corporation common for $20 a share when the market price was $35. In this list were many well-known names, Including In-cluding William H. Woodln, now secretary of the treasury: cnaries Francis Adams, later secretary of the navy; Senator McAdoo, Newton New-ton D. Baker, John W. Davis, Gen. John J. Pershing, John J. Raskob, Silas II. Strawn and Col Charles A. Lindbergh. Another list revrnled included the names of bank officers and directors di-rectors to whom the Morgan firm had made loans. Some of these loans had been repaid, but many had not, and In the latter category the largest was a little over $0,000,-000 $0,000,-000 to Charles R Mitchell, former president of the National City bank of New York, whose trial for alleged al-leged income tax evasion was going go-ing on in New York city. FEDERAL JUDGE HAROLD Louderback of California was acquitted in the impeachment trial in the senate, but he escaped by a narrow margin. On the fifth and most comprehensive charge 45 senators sen-ators voted guilty and 34 for acquittal ac-quittal But under the constitu tional impeachment procedure a two-thirds vote, is necessary for conviction. "That is the start of an Inflation ary atep," Woodln said. "It is be ing done to inject something Into the market In other words, to keep things moving along." Woodln said additional purchases would be "entirely dependent upon conditions." The new law authorizes author-izes the reserve bank to buy op to $3,000,000,000 of securities. Wben the reserve banks buy bonds, cash balances of member banks are increased by equal amounts. The administration hopes that, the banks, with these additional addi-tional funds on hand, will advance them to Industry. X 7" HEN President Roosevelt V asked the nations of the world to agree to a tariff truce pending the outcome of the London economic econom-ic conference, the administration thought It would not be In accord with good faith to assess now the processing taxes on wheat, cotton and perhaps corn and hogs provided for In the farm relief act But Secretary of Agriculture Wallace thought otherwise, and after a conference con-ference with Secretary of State Hull he was permitted to go ahead with this undertaking. Probably there will be protests from Europe and Canada, and then the diplomats must get busy. Secretary Wallace and George N. Peek, co-adminlBtrators of the farm relief act selected Guy 01 Shepard of Evanston as administrator in charge of the packing house prod ucts under the act He will have general charge of trade agreements between packers and between producers pro-ducers and processors relative chief ly to hogs and their products, Mr. Shepard was formerly vice presi dent of the Cudahy Packing company. To handle the cotton work under the farm act, C. A. Cobb of Atlanta, Ga., was named. He is editor of the Progressive Farmer-Ruralist. Both he and Shepard rank along side of Prof. M. L. Wilson, appoint ed administrator some time ago. TF THE i Hugh 8. Johnson 1 J. P. Morgan J. Plerpont Morgan, senior partner, as chief witness. The proceedings were conducted by Ferdl. Band Pecora on behalf be-half of the committee commit-tee and attracted a throng of spectators. specta-tors. John W. Davis, former Democratic Presidential candidate, candi-date, was there as counsel for Morgan, and the banker waa several times relieved from sagging questions of Pecora by the protests of Senators Glass and McAdoo. Mc-Adoo. Most interesting to the public pub-lic of the facts brought out was that no Income tax whatever was paid by Morgan or any of his nineteen partners for 1931 and 1932 and that they paid an aggregate aggre-gate of only $4.8,000 In 1930. This was because of heavy losses sustained sus-tained by the Arm. Morgan could not recall whether he personally paid any tax in 1930, but counsel for the Investigators said he did ot Morgan repeatedly answered "1 do not know" to Tecora'a queries about a $21,000,000 loss written off lis firm's books on January 2, 1931, In addition to other deductions which already had wiped out taxable tax-able Income. Finally the banker asked Leonard Leon-ard Keyes, office manager of the firm, to explain the matter. Keyes said the involved transaction transac-tion was the inevitable result f a revaluation of assets made necessary neces-sary by the admission of a new partner, 8. Tarker Gilbert, on January Jan-uary 2, 1D31. Pecora hammered away with questions, but Keyes, a methodical appearing man who spoke crisply and without hesitation, repeated his account ac-count over and over. He testified that the $21,000,000 loss could, as the law then stood, have been de- administration and its supporters In congress have their way, the $3,300,000,000 national re covery bill, providing for regula tion of industries and construction of vast public works, will be financed by increased Income and gasoline taxes and higher income imposts on stock dividends, as well as the continuation continua-tion for one year of all the nuisance taxes levied in tho revenue bill of 1932. That was the way It was reported to the house by the ways and means committee, and though the Republicans and some others objected to these taxes and fought for a sales tax, that is the way it Is likely to become law. The sura of $220,000,000 annual ly will be needed for interest and amortisation of the public works bond Issue, and the committee decided de-cided this should be raised by: 1. Increase of the normal in come tax rates from 4 to 8 per cent on the first $1,000 of net income in-come and from 8 to 10 per cent on all above $4,000. This levy is es timated to raise $ 1(5,000,000 a year. 2. Extension of the new normal Income tax rates to dividends now subject only to surtaxes and taxation taxa-tion at the source. Estimated to yield $83,000,000 a year. 8. The addition of another three-fourths three-fourths of a cent t tke present 1 cent a gallon federal tax on gasoline. gaso-line. Estimated to bring In $92,-000,000 $92,-000,000 annually. These additional taxes, the report re-port said, "are temporary In character char-acter and may be eliminated by proclamation by the President when operating revenues exceed operating expenditures, or when the repeal of the Eighteenth amendment amend-ment opens a new and ample source of revenue to the government. govern-ment. To administer the Industry control con-trol features of the measure when It becomes law, President Roosevelt Roose-velt has selected Hugh S. Johnson of Mollne, IIL. and be has been busy getting an organization la shape so he can go to work promptly. prompt-ly. He bad a large part In formulating formu-lating the MIL A close associate of Bernard Ba-ruch. Ba-ruch. Democratic leader and New Tork financier, Johnson was a member of the old war industries board. He was also head of the first draft board during the World war and since then has had extensive exten-sive experience In manufacturing. He was bora In Kansas In 1SS2. He turned to the army for a career and was graduated from West Point In 1903. When he retired In 1919 he was a brigadier general. VIEW YORK state came to the fore In favor of prohibition re peal in a manner that surprised even the ardent wets. The vote was about twelve to one throughout the state, and In New York city It was aprpoxlmately forty to one. The 150 delegates elected to the conven tion all are pledged to repeal, and they will meet in Albany on June 27 to execute the will of the people. The Empire state will thus become the sixth to ratify the repeal amend ment to the Constitution. 1 7'ITII a stately parade down Michigan avenue, speeches by Postmaster General Farley and oth era and much picturesque ceremony, A Century of Progress, Chicago's World's fair, was formally thrown open to the public, and thousands of men, women and children entered the vast exposition area and mar veled at what had been accom pllshed. By high pressure work, the fair was already virtually com pleted. The most thrilling and dramatic part of the proceedings came at nightfall, when through a "hookup" of three astronomical observatories a ray from the star Arctums was caught by telescopes, transmitted to the exposition grounds and used to put into operation the gorgeous lighting system of the fair. Accord ing to the scientists, the ray started from Arcturus Just forty years ago. at the time the fair of 1803 opened. The fact that Chicago has created this exposition during the depres sion is as impressive as the fair Itself. nEACE in Cuba seems to be a long way off, though the government govern-ment continues with vigor Its efforts ef-forts to wipe out the revolution ists. And, according accord-ing to the latter, President Machado Is using more than vigor. Operations against the opposi tion are being dl rected by MaJ. Ar sento Ortiz, Macha do's chief military strategist and he is pursuing the same tactics with which he terrorized Orl- ente province In 193L In Santa Clara and Cn maguey provinces he has been hanging captured rebels to the trees along the highways and In the towns, and It was reported that he held as hostages the family of Citr- loa Leyva, who led a rebel raid on Taguasco, threatening to kill them unless Leyva surrendered with fifty followers. Then Ortli returned to Saneti Spiritus, and It was believed he would pursue the same ruthless methods In that section. r " ! 1?' , v ' v i Major Ortla E XPAXSION of credit rather than of currency has bwn started by the government under the powers given the President In the farm act Secretary of the Treasury Woodln announced that the federal reserve barks had made an Initial purchase of $25.000.000 of government bonds in the open market r E PORTS from China, confirmed i V by the foreign office In Tokyo, said that an agreement for a Chinese-Japanese truce In the north China tone had been reached and was about to be signed. The Chi nese defenders of Pelping already had withdrawn from that city and the Japanese were only a few miles away. It was understood that the truce required the Chinese troops to remain south of a line running from the Great Wall north of Pel r.!n southeast to Lntal on the coast, the line passing north of both Pieping anJ Tientsin, Despite the reported truce there was renewed flcbtir,;: at the walled city of Tungrhow, 13 niMes east of Peiplng. Intermountain News Briefly told for Busy Readers FOREST ARMV ARRIVES DECLARE CRICKET WAR TEST IDAHO BEER LAW NO MORE FACULTY CITS SUSPENDS MIXING WORK COEUR D'ALENE, I D A. The second test of the Idaho prohibition law as regards to 3.2 per cent beer was initiated in the Kootenai coun ty district court here, based on the arrest of Taul Miller, of Wallace, on a cnarge ot possession oi intoxicating intoxi-cating liquor. BOISE, IDA. Training orders have been received here for 33 Idaho Ida-ho reserve officers who will go Into camp June 11 with the National Guard in Boise. NORTH SALT LAKE, UT. The last few weeks have seen choice beef selling at the highest prices re ceived for two years on this market BOISE, IDA It has been an nounced here that no further re ductions are contemplated in the faculty of the Idaho State univer sity. rOCATBLLO, IDA. Ten units of the citizens conservation corps have arrived here for work in the Idaho forests. TWIN FALLS, IDA. Twin Falls county lamb pool directors sold the county's first wool pool 30,000 pounds of wool for 22 1-2 cents a pound. BOISE, IDA. Assistance from the conservation corps in combatting combat-ting an outbreak of crickets on the south fork of the Boise river has been sought by the state commis sioner of agriculture. AMERICAN FORK, UT. The American Fork Gold Mining com pany has resumed operations at the old Pacific property situated at the head of American Fork canyon. BOISE, IDA. Reports received here state that President Roosevelt Roose-velt has signed a bill for suspension of annual assessment work on min lng claims. BINGHAM CANYON, UT. The town board has decided to retain all regular employes on a basis of IS days a month. This applies to the police and water departments. BOISE, IDA. Advance payment of taxes due the state have been promised by counties to meet $500,000 treasury note Issue due on July 1, the state auditor has an liounced. PLEASANT GROVEX UT. The major festival of the year for this city, Utah Strawberry day, will be held June 21. Because of the delay ed season, the twelfth annual festi' val will be held ten days later than nsual, but will not lack in any of the features which in the past have made it an outstanding Utah cele bration. Free strawberries will be served as usual. TWIN FALLS, IDA. Idaho American . Legion department will Invite Geo. II. Dern, secretary of war and former governor of Utah, to attend its state convention in this city next August 24-20. BEAVER, UT. The local relief committee has hired 12 teams and a crew of men, to go Into Fremont pass, 18 miles southeast of Beaver, to open up a road leading into an area of good dry wood. PRICE, UT. Carbon high school band is making arrangements to en ter the national band contest at Evanston, 111., June 8, 9 and 10, In connection with the Century of Trogress exposition at Chicago. SALT LAKE CITY, UT. Utah will ship approximately 75 carloads or 1,500,000 pounds of broiler chickens chick-ens to the eastern and mid western states this year. The 1933 shipments are expected to show a 30 per cent Increase over the crop of 1932. SALT LAKE CITY, UT. The last date to apply for loans for summer sum-mer fallowing and winter wheat planting has been extended from May 31 to June 17. The maximum for loans in Utah and Idaho is $1.-60 $1.-60 an acre. Not more than $300 will be loaned to any one applicant The applicant must agree to plant not more than 70 per cent of his 1932 wheat acreage. Loans will mature on August 31, 1934, and will bear interest of 5 1-2 per cent per annum. an-num. They will be secured by first liens on wheat to be harvested in 1934. SALT LAKE CITY, UT. Utah farmers who have in the past several sev-eral years made loans upon their farms through the Federal Land bank will not be required to pay npon the principal of their loans during the next five years, but will be required to continue their interest inter-est payments, according to Wlllard D. Ellis of Berkeley, California, president of the Eleventh Federal Land Bank district Scenes and Persons in the Current News ft r 4 "i'f i, I'l f ft 1 I r-L t j. J 1 . - i It llVll 1 jf 5 x S e V ' " ' la- -I 1 F,- y - i i a i Col Edwin M. Watson, selected to be chief military aide to President Roosevelt 2-Ioum tn 'Rerun makimr a huce bonfire of books collected from libraries and private owners and confc is "un-German literature." 8 Some of the many Gold Star mothers about to sail from New York on the M ident Harding for the first of this year's pilgrimages to tne graves oi ineir sons wno ien in Franc On the Banks of the Wabash When Floods Come ",!flllJ McCAMMON, IDA. By taking advantage of favorable weather, farmers in this district have succeeded suc-ceeded in planting practically all of the spring wheat acreage planned. SALT LAKE C1TT, UT.-Nearly 500 men from Virginia have arrived In Utah to work In the forest arniy camps. rEOVO. UT. Voltmtivr workers work-ers In the Rcnovize Provo campaign hTe reported total pUshrei ef ?150,ono, at the m.-Insion of a 2 weots driTe. . k i r t " w Mil 4 Recent heavy rains have caused record flood tides along the Wabash river with considerable damn property and crops. This photograph shows a typical scene In Vlncennes, Ind. WINS GENEVA TRIP (f ' X'-l V - -; u ; , , , i ' (f I - - - - -Cj':Lii..L"ilti Uy Living Buddha Tries a Plane Rids r Sidney II. Levy, seveuteen-year-ld Buffalo (N. Y.) high school student stu-dent who was declared the winner In the seventh annual competitive examination for high schools on the League of Nations. His reward will be a free trip to Geneva this summer as the guest of the League of Nations association. MAY RUN FOR SENATE 4 s Mrs. Gertrude Bowler of Sheboygan, Sheboy-gan, Wli, Democratic national committee com-mittee woman, who has been asked by Milwaukee county Den.ocrats and Democrats from other Wisconsin Wiscon-sin counties to become rhe candidate candi-date for United States senator in opposition to Senator Robert M La Follette In the 1934 election. Mor Mai. Bathers Drowned Slore than six time. . bathers as femnw ti.wned whiie bathing in the United Flatus ea year. ninie ?K 1V'1 SL WW".'.'. ..'AW 11 "1 -v" His holiness, the Panshan Lama (the living Buddha), of TiW. assisted frnm tho A marina n Tl,n In nrhlnh ha rapantiv eDjoTM ' trip in the air, at Pelping, China. The plane was piloted bj i ican airman, Julius Barr of Utah. Italian Submarines at Boston ii v4i 70 f V- , . i li .- t E - '-'.... - - lt? i-,. ' l w .JUL . 5 r.:l-- -5--45: 1 These two Italian submarines, the Ballila and f'r photographed at the Boston navy yard as they were ta-iS fuel They came over to patrol the Atlantic during the F-of F-of Italian planes from Italy to the World's fair in CWc3- Impressing Peopl "It Is easy to Impress the peorle,, sald Hi Ho, the sage of Chinatown, "but they are often like children ho love the promise of sweets and become fretful If there are not sufficient suffi-cient to satisfy them." Cree. O Green oak ve'"Z. 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