| Show I I INSIDE N S 5 I D E STUFF S 5 T I U F F F. The By News N ws RAUL PAUL Behind MALLON the th News V WASHINGTON ASHINGTON April 26 26 One One new d deal al publicity agency is apparently apparently apparently ap ap- ap- ap reaching for a new low on the decline in propaganda trickery Some students of ot 1 propaganda methods here have long suspected suspect suspect- ed that not all the letters to the editors appearing In newspapers out through the tho country are arc written written written writ writ- ten by the persons who sign them No o evidence of organized ballyhoo ballyhoo bally bally- hoo hoe through this device existed however until the federal housing housing hous hous- ing lag administration last Jast we week k got caught at It The largest Washington newspaper newspaper newspaper news news- paper published ed last Jast Thursday in good faith a rather indignant le letter let let- tor ter from the local housing di di- di rector At least it was signed by J. J Reilly Stanton who wh Is the di dl- dl re rector tor II He challenged what he said Bid were the inaccuracies about the F H A appearing in a News Behind the News column in that tha paper The rhe same sarno Indignation was expressed expressed ex ex- pressed in exactly the same words In a letter Jetter received by the largest Brooklyn newspaper the same da day but this was signed by Thomas G. G Grace director of ot F FH FH FH H A state of New York Such a 0 phenomenal duplication of word and thought might have been a miracle but the next day the tho third exact duplicate arrived in the tho office of f the largest Syracuse Syra Syra- cuse cuse cuso paper signed by Roy S. S 3 Smith S director Albany district F H A. A And then along came cam letter Jetter No 4 to a St St. Louis ne news news- paper None of ot the four gave credit for tor authorship to anyone anone except himself Nor did any of them suggest that the plagiarism w was s a form letter from national headquarters headquarters headquarters head head- quarters here which was to be disguised by the directors as aSa a personal personal personal per per- per per- letter and sent to a local editor Figures Figure and Facts The first two paragraphs of ot the letter will give you a complete and fair understanding of lt Its Ita Impartiality impartiality im Im- partiality Dear Mr name of editor I would like to point out several several sev sey- eral inaccuracies in a rec recent nt c col column column col- col lumn l- l published in the name of ot newspaper by Paul Mallon of Washington I 1 Mr Mallon says that the aggregate ag ag- ag- ag of ot mortgages accepted for tor insurance by the tho federal housing administration was only 10 per percent percent percent cent of ot the total of all mortgages made during 1935 and that in other words the private mortgage mort mont gage mar market et stimulated Itself Itsel nine tImes limes as much as the government government government gov gov- stimulated it IL Ho He apparently apparently ap AP- ap- ap does not know that of the total urban home mortgages mortgage made during 1935 according ac ac- ac- ac cording to tho the federal home loan bank boards board's estimate loans b by bythe bythe U the e. e Home Owners Owners' Loan corporation corporation corpora corpora- tion Hon government nt funds aggregated aggregated aggregated gated gate 48 per cent leaving less Jess than handled b by private lending Institutions and Individuals individuals of which would be approximately 20 per cent al although although al- al th though ugh the mortgage phase of the federal housing administration operations was wa-s active only during the thelast last nine months of the year The he simple facts are that the original figures were were accurate They were taken laken from F H As A's own annual report In that re report report report re- re port the F H A placed great stress upon tho the fact that It had made commitments for of mortgages In 1935 but t it neglected to mention that hidden in a table at the back of the report was the tho disclosure that it had received d in income income income in- in come from only of new mortgage go appraisals In other words words' It made only of new mortgages that year an amount which is 10 per cent of the total privately financed The rest were commitments Thus the figure ligure Is the real one the the ballyhoo one The F H A is not in business to make commitments but mortgages and will be judged on that basis Advantages Publicity men will recognize the advantages of the disguised local letter to the letter the editor propaganda method If It press agents agent want to correct published mistakes they generally general general- ly go to the author of the mistake I or they issue a general public statement setting forth the true facts However these A courses re require require require re- re quire a denier to assume responsibility responsibility publicly for what it S says An opportunity exists for the facts to be checked The denial will not be made unless justified In the new method however such cumbersome procedure is avoided av Furthermore no one willever will willever ever find tind out that you are pulling puUing the wool on a national scale Unless unless unless un un- less you OU happen to get caught Possibilities Wider Vider possibilities exist In this new field of atlon of the public mind Effective variations of the same method could be used with A A A AV W V WP P A H O 0 OL L C C CC CC C CC C and andun In fact tact every agency of government nt which employs local 9 agents out in the field provided that these agents are physically able to sign their names to whatever whatever what what- ever form propaganda letters are drawn up at headquarters in Washington Battleships Federal spending is becoming more and more complicated in view of economy campaign re re- re For example tho the navy wants wAnta two new battleships The British are going to lay 13 two new keels after aner the first of the year Unless we match them we will be outdistanced outdistanced outdistanced out out- distanced In that type typo of ot ship which the admirals say Is the backbone of f the navy Adm Admiral ral Standley said upon r re returning turning from London that 10 would be needed neede-d to commence commence com com- mence construction on the ves yes sels The president a few days l later ter said there was not a chance of getting the money out of congress congress congress con con- gress a polite way of saying It did not fit tit in with his pis economy campaign position Two days later Standley called on President Roosevelt Afterwards Afterwards Afterwards After After- wards he announced that the navy would scrape up of Unused unused un Un- used odd ends funds to start work on the ships if Mr Roosevelt Roosevelt Roosevelt Roose Roose- velt would only get congress to authorize them a necessary legal st step p. p Thus the idea now Is to lay layout layout layout out a few girders In the dry docks works call them battleships Inthe Inthe in inthe the making and get congress congre to appropriate the funds funda for tor finishIng finishIng finishing finish- finish Ing them them after after the election Shock The surprise punitive tax on holding companies in the house tax bill was a surprise only to outsiders outsiders out out- siders and the holding companies This section of the bill was not conceived by its nominal authors the members of the house wasand ways was and means committee Nor was it originally Intended to be a tax proposal It was really written several months ago by ban byan an assistant attorney general He secretly devised devised devised de de- de- de it as aa a substitute method for abolishing holding companies in incase incase incase case the new holding companies law Is declared unconstitutional b by the supreme court In other words it was a substitute for the present holding companies law Jaw which has haa not yet been passed on onby onby b by the supreme court Despite the fact tact th that t nobody recommended It It this portion of the bill blU will vIll probably stand A large number of congressmen want to use this par particular vote In tHeir reelection campaigns |