Show I SEEN and HEARD around the National Capital By CARTER FIELD Washington Luther whose hurl hurtled led trIp home bome after Ger Germany's many's action on reparations so bO stir sur- ed diplomatic Washington Is re returning returning turning according to ads Ices recessed ed here s Ith a 1 rea real tale of soe 01 to ba back backup up UJ his for special treat treat- treatment ment under the ness ne tariff recIprocIty PO ers granted time the President by con press re l This his Is the first st year ear sInce the do de- depres pres lon ion that German h ms hl an ad serse balance of trade for example At the Department of Commerce how how- howE E eser Eer er skeptics poInt out that this tails balante bal ante Is not bl big enough against ier- ier mans mam to offset the Ins credit ps pl meats ments for shipping for other services and for e by tourIsts But It Is no secret that the boycott agaInst German ships by American and other though tourists AmerIcans are the most numerous spenders on this sort of thing has hurt amazIngly cutting Into int s the profits profit of the bIg fa fast t German shIps captured the speed record of oC the Atlantic Atlantic- so re recently Meantime Germanys Germany's German s 's trade with Rug Rus Russin sin has dropped to a low level Thi This Is partly the outcome of the political situation brought about by Hitler who overlooks o no opportunity to say un unpleasant unpleasant pleasant things about the nu Russians As a result Hus Russian Ian trade Is beIng transferred to Britain and to the United Unit Unit- United ed States Germany Is Issuing no new credits to RussIa The movement Is the other say ay Russia Is payIng for goods received ed from Germany is n pre pre- previous Ious years These funds should be bea a available for payment of Interest on foreign debts some of our experts think but of course there Is nn an un unknown known n element clement t is to what ex ex- ex extent tent Germany has hns been financing e et ports and stimulating sales les abroad through the repurchase of oC Germin bonds at depreciated prices Makes Up Loss Under that procedure the exporter who could not make mabe a sale abroad ir If ti e a were swore at par is b permitted to quote a lower prIce put the proceeds ot of the sale In foreign n currency and buy the German bonds abroad The bonds are then bron brought ht home and sold on the the- Berlin market at the hIgher quotations pre then That profit frequently mal makes es up for tor the loss on the time sale ot of the mer merchandise chandise The howe hooves er does docs not get time the foreIgn currency paid for Ger Ger- Gernian nian goods as It goe goes for time the purchase of the German bonds It If the Reich bank banI permits only GO 50 per cent or of time the proceeds or of time the sale ot of German goods to be ed In the purchase of Ger German German man bonds abroad It receIves the re- re remaining GO 50 per cent In foreIgn cur current rent but the system SJ Is one in the Helch always ays receives less than per cent of the proceeds or of ports exports So there Is no way of knowIng to hat shat extent tent German export trade Is actually forel foreign n exchange change avaIlable In payment for imports ports or for Interest on German foreign debt The situation Is one one- In s German Germany at any time might decide to devalue de the marl mark In an effort to cre create a bil ante ance If devaluation sere ere only to such a balance there would be no serIous threat to the Brit BritIsh British Ish or the French position A Germany importing as much as she exports would be assisting foreign Industry by her purchases as much ns as she mIght put foreIgn Industries under pressure by her competitIon nut But If the marl mark sere cre drastically re- re reduced re- re reduced to time the point where time the German exporter could be gh given en a clear a un tage In orid markets there might be bea bea a pel period iod of disturbance which ml might ht en end With further depreciation ot of Ish pounds and In the unsettlIng of the gold currencies would lea lead dl to tremendous pressure for fur further timer ther devaluation de ot of the bold old salue of time the American dollar President Roosevelt elt still has Imas a lee slay nr of almost 10 cents which un under er e existing law lie he can n use marking the dollar do don n to GO 50 cents gold the fig figure lure ure thed tL ed as the limit by congress The chief question Is hat such a devaluation de of the math would do to Germany German Doctor Luther Is not report reported reported I ed to be Doubtful Practices magnates tel and theIr tires thes here e that the t reduction In pipe line rates on oil will dela delay for a long time lime the e mo mole moe e 1 durIng the closing days s ot of congress S b by the Durrow Darrow report for dl sorting the big oil producers producer and theIr pipe lines One of the poInts made In the Da Dar Dar- Darrow row report sas as something should be done about time the hea y profits of the pipe lines It was charged that some of the big oil companies that owned pipe lines were svere guilty of a practice sery cr much In princIple like the secret rebates or of the old Rockefeller da days s sIt It Its s alleged that time the big oil cow com panics panic charged such uch high rates on the oIl of independents s p pell ell thorough h theIr pipe lints that they sc 1 e enabled to cut time tile pt pm Ice of thell 0 II oIl actual cost ot of production So bo bothey they hid h time the Independents hamstrung before the they started ted It 18 at this and some ome other at tices that the Ickes i oil regulation bill wn was aimed In addition to the nece lt for controlling oil pro production unless the industry ss is t to he be I cled to pros The fhe Ickes bill s IS endorsed ell en by the Darrow review board declared s an and e a control of production was essen- essen essential Many of the board s recommendations concerning enforcement of the marketing sectIons ot of the code bob up from time to time lIme In orders from the oil n which Is now being pestered by widespread corn com plaints from independent distributors Most of the complaints are that while Ickes has been trying tr Ing to shut off hot oil salves alves tile the bl big companies ha base hae e been doing just about what they pleased serl with gasoline Here lIere In Wash Wash- Wa h- h in fn ton I L S Scott chairman irman of the local petroleum committee seriously ton considered i Instructions that code ea eagles les should be gIven only to companies In with the code and InsIsting that certain companies J m not get theIrs until they sign er certificates of compliance Refiners Grumble Refiners In producing on oil have protested and Independents have been grumbling for years ears that pipe line rates are too high Now No that consolidated consoli- consoli consolidated dated taxi returns are practically ver- ver verI verboten I boten the pipe lines have another rea reaBon reason son Bon for reducing rates Last year s IJ net Income of the Texas PIpe Line company ot of Oklahoma was as on onan onan an investment ot of G r 2 t In gather gather- gathering ling ing and trunk pipe lines Shell SheH PIp Pipe PipeLine I LIne corporations corporation's net as on an Investment ot of 51 GS Pipe Line was 12 on an investment estment ot of 87 and l PIpe Line Line- corn com compan 1371 pan pangs pang's s 's was G on an Investment ot of iG 0 All of which Indicates that while larger ger profits have been made on onI I smaller Investments a pipe lIne corn com puny subsidiary as a handy sort ot of thing last year for a big oil to have while prices ot of oil were ere belD being slashed and profits on time the parent corn com comI compan I pan pang were ere being cut to the bone I On June 7 there was a on the bill or of e a Strong trong or of orTe Te Texas as to orce pipe lines from In Industry industry 0 ownership But It was apparent apparent ent to the most casual er that no Immediate action as Intended It was largely a pretext for for- dela delaying Ing the oil control bill and Incidentally to toI help Colleague Strong with pub pub- I licit back home The pipe line companies to their In- In Indignation indignation were ere not called Actually they were delighted as they think now they will have an argument In the tho- next t congress chiming that In the con con- congress congress gress just ended they were not given gl givena a hearing But Brat the reduction In rates ordered bJ b the Interstate Commerce commis- commis commission commission sion b far far- more important In the plc- plc picture ture It makes time the chief attack on dual ownership of oil wells ells and pipe pillO pipelines lines a dud Keystone Politics Patronage troubles promise to fade fado the bright lope hope ot of the New Deal for fort t 11 r Penns Pennsylvania h nola one of the six states s s F Franklin D Roose Rooseselt In 13 1932 rIye or of the ele eleen en Democratic members ot of the house from time the Keystone state make mahe no bones or of the fact that they have e no Interest In time tha electIon of Joe Guffey as United States senator and there are some other other- In contrast w Ith this the Republican can or organisation which or of course will back Senator id Da A Reed for election re-election has been enormously strengthened by the recent ups shake In both city and state commIttees which ups shake incidentally Included the elimination of William S Yare Vare The Republican in Pennsylvania are also In rather a good humor about th the rEcent selectIon of Henry P Fletcher ns as Republican national chairman Bitterness of these fh fire e Democratic ton flared up within six weeks after Roose Rooseselt's elt's InauguratIon The fh file e malcontents are Us tl tle e es I rancIs IL 11 11 nIter alter of oC Gaston Patrick J or of Scranton Charles CharlesI I rad ls of William WIlham IL Berlin or of Greensburg and N Crosb or of cad IlIe They alleged that the dIstrIbution ot of as dictated by Gurrey lon long reputed Democratic boss or of the state was as calculated to wreck their organizations In a subsequent row rosy after Guffey had obtained the appointment of an Internal re enne collector at Scranton 0 user er Boland s protest Te Gt had A F rix ot of York appoint appoint- appointed ed collector of Internal re enne nt at This pleased Represent Represent- nth e Harr L L Haines ot of Red Hed LIon but later Inter when hen FIx was forced to re- re resign sign Ign because of Ity In campaign n fund collections nil all the good will In York county whIch appoIntment ot of Ix had created was lost Democrats Angry Just hat the York county Demo Demo- Democrats crat e expected Gulley to do about it itIs Itis Is something else elbe again The important tant point Is that they are mad not that their anger Is justified WhIch In effect makes six of the eles ele elean en an Dew Dew- Democratic dIstrIcts In revolt Still another In the Guffey oIntment ment resulted from the appointment of Joseph r I Gallagher as postmaster or of Philadelphia lIe He was as appointed on time en endorsement or of Gulley and Jack Kelly new no city chaIrman In Philadel- Philadel Philadelphia phia Soreness here rel results from the tiro fact that Is n a member ot of the famous Philadelphia Union league Iague and sag t n a lifelong Republican up until 11 la last t s b PO power er with the tho lion I is due to limo tho fact that eul early In Inthe time the pI pie e cons com battle he ha broke his old allies Ai 1 Smith Frank aril others of the northeastern and Ind came out for Roosevelt lore afore Important he lS able to delis or er ora a 11 lIu huge ge or of the bIg Pennsyl s i ln delegation to the tuna man who lIS la now In the While House U ss COP rl ht U Service |