Show MONEY I MARKETS MARI ETS By James McMullin The Tha Telegrams Telegram's Exclusive Observer Along W Wall ll Street NEW YORK YORK YORK-There's There's Theres more more behind behInd behind be be- hind the sudden and heavy cannonade cannonade cannonade can can- against big business by New Dealers Jackson Ickes Henderson etc than meets the eye The obvious objective is to pass the buck for the slump from the administration to the economIc economic economic eco royalists But theres there's another another another an an- other and equally important objective objective objective ob ob- ob- ob that doesn't appear on the surface surface to to bring congress to heel Many solons spent the holidays among their constituents The idea was to impress It anew on the some pome folks that the new deal dealis is on the job to protect them from the machinations of the wicked princes of privilege and thus stir them up to bring pressure on their senators and congressmen to do the bidding of of the Great White Father in Washington as of yore It remains to be seen whether this strategy will get results The timing was neat at any rate The barrage began after congress adjourned adjourned adjourned ad ad- so the other side was out of position to return the fire promptly Further the abruptness abrupt abrupt- ness of the attack caught the opposition opposition opposition op op- op- op position napping totally napping totally unprepared unprepared unprepared pared to respond in kind While the organization study committee of the New York stock exchange is keeping its deliberations deliberations deliberations delibera delibera- as secret as possible informed informed informed in in- in- in formed sources report that practically practically all the witnesses who have appeared before it including it-Including representatives of the old guard have have suggested that s some o 0 m me o changes in the existing management management management manage manage- ment setup are advisable The point on which there was most general agreement is that the exchange exchange exchange ex ex- change should have a paid president dent It begins to look as if this innovation is almost a certainty A sub rosa boom has started to name Carle C. C Conway of Continental Continental Continental Conti Conti- Can to that office is asand as asand asand and when the change is made Mr Conway is chairman of the committee that is studying the problem and has a practical working knowledge of the intricate intricate intricate cate technique of the stock mar mar- ket The office of paid president should be a nice plum Indications are that the salary will be at least a year Financial insiders get word that thata a fancy tax formula is being concocted concocted concocted con con- behind the new deal scenes for presentation to the current session of congress It will tie into the drive on big big- ness The plan would give small corporations a large measure of exemption from the undistributed profits tax but corporate giants would continue to pay and pay and pay Even among the titans however distinctions would be drawn Companies with a majority majority majority major major- ity of their stock in the hands of the public would be given a much better tax break than those in which a controlling interest is vested in a small group or is a family proposition If the tentative tentative tentative tenta tenta- tive program is carried out the latter will be soaked harder than ever The outstanding target of this ingenious scheme is of course Henry Ford But it would also be bea bea a terrific wallop to Mellon and du Pont interests and to the Hart- Hart fords who own the A. A P. P grocery grocery grocery gro gro- cery chain The neat angle from the new deal viewpoint is that not many congressmen are likely to stand up in defense of Fords and du Ponts Fonts provided the rest of the industry is given some relief Watch for spectacular developments developments developments develop develop- ments along this line New York City's little milk war last week had some curious political and labor angles Mayor LaGuardia LaG and the American Labor Labor Labor La La- bor party have made quite a point of lowering the price of milk for city consumers The mayor learned that New York State Attorney Attorney Attorney At At- torney General John J. J Bennett was about to release a report lashing lashing lashing lash lash- ing the big distributors for taking taking taking tak tak- ing too big a middleman's profit He evidently figured that he mustn't let Bennett beat him to the punch so he granted permission permission permission sion to four independent distributors distributors distributors dis dis- dis- dis to sell milk from trucks the at 9 cents a quart against grocery store price of 11 or 12 cents Competing groceries at once cut to 9 cents also even thou though h it meant taking a loss Milk producers promptly raised a lusty howl that the mayor was going to ruin the farmers but that didn't have much effect Then the milk wagon drivers' drivers union stepped in on the pretext that the four independents were paying sub-standard sub wages and threatened to call a strike against those distributors only The unions union's real motive was fear that the lower milk price would eventually eventually eventually even even- lead to wage reductions Thereupon the independents abandoned their truck sales at 9 cents the grocery p price ce snapped snapped back to 11 or 12 and peace was restored The real story is that labor in intervened in- in with with the strong moral support of the farmers farmers to to block bloc a price reduction for the benefit of the consumer The mayor talks of trying again but he probably Vont wont His constituents will give him credit for making the attempt attempt attempt at at- tempt anyhow And everyone is happy except the unorganized consumer who is left as usual with the short end of the stick Bob Jacksons Jackson's jacksons charge that there has been a deliberate general general general gen eral strike of wealth to ruin Roosevelt Is a fantastic pipe dream The last thing big timers of finance and Industry wanted was wasa a collapse at this time A great many of them were long on stocks up to their eyebrows and they I have been praying fervently ever since the recession began least a temporary upturn I h market which would p pan give Bite an A opportunity man might to cut unload o oft off r h R to spite his face face saYs o one e 4 but nant New Yorker t cut J h b utter lunatic would throat for that purpose e neck of the be crazy in this but not that crazy crazy f Copyright 19 1938 for The T r Tj 4 |