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Show NA NATIONAL TIONAL TIONALAFFAIRS NATIONALAFFAIRS NATIONALAFFAIRSReviewed AFFAIRS AFFAIRSReviewed Reviewed by byCARTER byCARTER byCARTER CARTER FIELD FIELDNo FIELDNohope Nohope No hope 0/peace 0 peace of / peacebetweel peace betweengovernment between betweengovernment government and public pubhc util rllli utilities util- util utilities . - ities ltres is in m to sight slgTzt . . . . . Townshazy Towns Townshazy hazy oter 01 er what eOllstztutes constitutes constitutesa a "reasonable reasonable " offer " " for a autility autility ulllzty utility . Federal rcderal treasury treasuryis is buying buymg all the silver sliver IJIex Mex Mexrco Mexico reo rco chooses to offer . . . . Llt Lt Lttie Littie tie hope oflzftmg of lifting the bur burden bur- bur burden - . den ofarmament of armament costsWASHINGTONIf costs costsWASHINGTON WASHINGTONIf WASHINGTON-If WASHINGTON If WASHINGTON -If If - It it were not notthat notthat notthat that such a conclusion would wouJd be ut utterly utterly utterly terly untrue to form torm knowing know1l1g the theslant theslant theslant slant of President Roosevelt RooseveU and andPWA andPWA andPWA PWA Administrator Harold Haro1d L Ickes Ickeson Ickeson Ickeson on the electric industry and pubhc public pubhcownersh publicownersh publicownersh ownersh p one might almost ascume as asume ume cume ; that peace pcace was in sight be between between - tween the government and the utIlI utIlIties utilities ulihties ulihtiesThe ties tiesThe The developments devclopments are surprlsmg surprising surprlsmgElectne surprisingElectric surprisingElectric Electne Electric Bond & Share figures scvera soyeral scv soy " " MB eral era 1 ways Flrst FIrst itannounces u it ' ? \ announces it willsubmit will ; submit to the secun securi secunties securities ties and e exchange exchangecommission exchanges change changeCOmmlSSlon 1 1submIt 1 commission COmmlSSlon on thedeath thedeath the * > ; death sentence SItu situj ahon atIon This follows ' t 1 the sale of its sub subr subsidianes .E- .E . - .E1 r ) < . ' sldIanes sidiaries in Knox Knoxyile Knoxville vIlle yile ] and ) just ust pnor prior pnorto priorto priorto to its surrender surrenderannouncement surrenderannouncement surrenderannouncement announcement inHarold in IncidenHarold IncldenHarold ? ,1 1 , " ' " IckesMemphis ? " ? Memphis Inclden Inciden Incidentally Harold Ickes Ickestally tally y most experts expertsagree expertsagree agree that Electric Electnc Bond S & . Share Sharegot Sharegot Sharegot got pretty fair prices for both these thesepropertIes theseproperties theseproperties propertIes This is surprising surpnsmg be because because because cause the general genera ] impression had hadbeen hadbeen hadbeen been that Electric Bond & Share Sharewas Sharewas Sharewas was second on the list hst of best hated hatedelectrIc hatedelectric hatedelectric electrIc holding holdmg companies as far faras faras taras as the White WIllte House is concernedWhereas concernedWhereas concerned concernedWhereas Whereas Commonwealth & Soutb South Soutbern Southem Southera ern em had been regarded as be1l1g being be1l1gpretty beingpretty beingpretty pretty near the top of the most fa favored favored favored vored hst list , , yet } ; ) et it lt is having havmg a tough toughtune toughtime toughtime tune time getting the city of Chattanooga Chattanoogaand Chattanoogaand and other communities commumtIes that want to toroll toroll toroll roll their own to make fair talr offersAll offersAll offers offersAll All 0\ 0 o\er o er 0er over \ er the country cities and andtowns andtowns andtowns towns that had counted on PWA . . al al10tments allotments allotments 10tments lotments for electric distribution dIstnbutIon or orgeneratmg orgenerating orgenerating generatmg generating plants have beenamazed beenamazed been beenmazed mazed amazed at the dictum that they theymust theymust theymust must make reasonable offers tor for the thepnvately theprivately theprivately pnvately privately owned plants in their com corn communltIes cornmunities cornmunities munltIes munities before federal mopey morey wIll well wellbe wIllbe willbe be forthcoming forthcommg Th s is carrymg carrying carrymgout carryingout carryingout out the so called Barkley promise . . Twins TOttns Touns and Cities C'lles Clles Cares ' Bit Bt , Hazy HazyAbout HazyAbout HazyAbout About What Is ' Reasonable ' ' In the closing closmg days of the last lastsessIOn lastsession lastsession sessIOn of congress opponents of ofwhat ofwhat ofwhat what they regarded as unfair gov government government government ernment competition with pnvate private pnvatebusmess privatebusiness privatebusiness busmess business were pressing pressmg for an anamendment anamendment anamendment amendment to the rel reI et ef of bill whIch whIchwould whichwould whichwould would have prevented loans or orgrants orgrants orgrants grants to any cities " where "here here prIVately prIVatelyoned privatelyowned privatelyowned o\\ned o ned owned \ systems were already serv servmg serving serving mg ing the public pubhc To head off passage passageof of this amendment " , which hIch looked lookedvery lookedvery lookedvery very strong Sen . . . Alben W Barkley Barkleyof of Kentucky Democratic leader of ofthe ofthe ofthe the senate promised that if the theamendment theamendment theamendment amendment were not adopted PWA PWAwouJd PWAwould PWAwould wouJd would make no loans or grants unless un unless unless less reasonable offers to buyout buyouteXlstmg buy out outexisting outexisting eXlstmg existing facilit es had been refused refusedby refusedby refusedby by the lhe private pnvate ownersrow ownersAow owners ownersNow desiringloans desirmgloans Now r-ow r ow Aow - the cities and towns desirmg desiring loans Theyhave do not know what to do They have very hazy ideas as to what areasonable areasonable a areasonable reasonable offer for the plant plantthey they want to buy is In very few fewmstances fewinstances fewinstances mstances instances have they anything anythmg to go goon goon goon on except the figures of o1 the eXlstmg existing eXlstmgcompany existingcompany existingcompany company As a result they have haveappealed haveappealed haveappealed appealed to Secretary of the Inte Intenor Intenor Intenor nor Ickes to loan them experts to tomake tomake tomake make the calculations on " which "hich hich they theywIll theywill theywill wIll make their reasonable offersTreasury offers offersTreasure Treasure Treasury Treasur ) Buying Bu'mg Bumg ) ' All SlIver Silver SilverMexico SilverMexico Mexico Chooses to OfferDespite OfferDespite Offer OfferDespite Despite the popular impression unpresslon to tothe tothe tothe the contrary the federal treasury treasuryis IS buying buymg every ounce of s silver ver that thatMeXIco thatMexico thatMexico MeXIco chooses to produce and sell sellFurthermore sellFurthermore sellFurthermore Furthermore it is holding hOldmg up the theworld theworld theworld world price by so doing domg Belldes Besides Belldesthat Besidesthat Besidesthat : that it is paying paymg a handsome sub subsldy subsidy subsidy sldy sidy into mto the Mexican treasury be because because because cause Mexico imposes a tax of eIght eIghtcents eightcents eightcents cents an ounce on s silver ver produced producedso so that every time Uncle Sam pass pa } ) s s43 43 cents tor for an ounce of Mexican sll sil sllver silver silver ver eight cents goes into the MexI MexIcan Mexican Mexican can treasury direct Of course courset coursethere coursethere t there ere are arc other Me Mexican lcan " < taxes on onthe onthe onthe the producers so that actually the thenet thenet thenet net benefit to the Mexican treasury treasuryis IS a good deal more than eight cents centsIn centsIn centsIn In add ton t Mexico on collects a new newexport newexport newexport export duty amount ng to 12 per percent percent percent cent of the value of the silver sliver I ! IA A some\ some somehat \ hat comparable situahon situation situahonwould situationwould situationwould would be it 1f if : England Ingland decided to buy buyall buyall buyall all of America ch s et ef of export crop cropcotton cropcotton cropcotton cotton and to pay for It it , , , not the theworld theworld theworld world price but a couple of cents centsmore centsmore centsmore more say 10 cents a pound now and andII andIf II 11 the United Umted Slates SUites States government 1m im imposed imposed I Iposed posed a tax ofone of one cent a pound on onall onall onall all cotton produced the federal federaltreasury federaltreasury federaltreasury treasury in m Washington would wouJd then thenbenefit thenbenefit thenbenefit benefit not only by the direct tax on onthe onthe onthe the cotton that would be sold but but1D butin butin 1D in taxes on the handlers and what whathttle whatlittle whatlittle httle little could be raised from the pro ducers producers them themselvesActually themselves themselvesActually elves elvesActually Actually a fairer comparIson comparIsonv.oulo comparisonuouto comparisonuoula v.oulo voulo uouto . be copper because that IS ISproduced isproduced isproduced produced by large corporatlons corporations corporationslargely corporatlonslargely largely as silver slIYer is produced m in m11ex inMex inMex 1\1ex 1 1ex Mex \ co and hence the higher price pricepaId pricepaid pricepaid paId by England would produce producelarger larger federal corporation and mdi mdi'udual mdividual mdividual 'udual udual vidual ' income mcome taxes taJl.es taJles . Noiv Now Treasury Is Buymg Buying BuymgDrect BuyingDirect BuyingDirect Drect Direct , From rrom Trom Producers ProducersNo No one he hesitated , ltated etated much about thIS thISpohcy thispolicy thispolicy pohcy policy up until last March when whenMexIco whenMexico wlienMexico MexIco seized the oil 011 wells owned ownedby ownedby ownedby by British and American interests interestsvalued interestsvalued interestsvalued valued at about $150000 150000 $150 150 $ 000 000 tor for the theAmerican theAmerican theAmerican American property and $250 250 $ 000 000 000for 000for 000tor for the English On March 31 thisyear thIs thIsyear thisyear year shortly after this seizure the thetreasury thetreasury thetreasury treasury here formally announced announcedthat announcedthat announcedthat that it had abrogated the agrecmellt agreement agrecmelltWIth agreementwith agreementwith WIth the Mexican government under underwhIch underwhich underwhich whIch it was buying buymg this Mexican Mexicansliver Mexicansilver Mexicansilver sliver silver There was general pubhc public pubhcapproval publicapproval publicapproval approval not only because most mosttolks mostfolks mostfolks tolks folks did not see why this govern government government government ment should shouJd continue contmue to subsidIze subsidIzeMeXIco subsidizeMexico subsidizeMexico MeXIco after such a seizure of ofAmerican ofAmerican otAmerican American property but actually actuallymost actuallymost actuallymost most folks could couJd not see why thIS thISgovernment thisgovernment thisgovernment government had subsidized MeXIco MeXIcoin Mexicoin Mexicoin in the first placeActually placeActually place placeActually Actually this government has hasbeen hasbeen hasbeen been buying buymg Mexican silver at an in increased increased increased creased rate since this March 31 31announcement 31announcement 31announcement announcement . . The only difference differenceis is that the transactions are no long longer longer longer er formally tormally handled with the Mexi Mexican Mexican Mexican can government . . Instead the pur purchases purchases purchases chases are made from the Iroduc Iroducers producers roduc roducers ers though of course court * after they have havepaid havepaid havepaid paid the eight cents an ounce tax to tothe tothe tothe the Mexican government governmentIn In March the last month under underthe underthe underthe the agreement Mex can slIver silver slIveramountmg silveramounting silveramounting amountmg amounting to 5 5089997 089 997 ounces w \ wasbought as asbought asbought bought by the United Umted States treas treasury treasury treasury ury In April the first month 101 fol 101lowmg following following lowmg lowing conclusion of the agreement agreementMexIco agreementMexico agreementMexico MexIco sold our treasury 5 061 803 803ounces 803ounces 803ounces ounces In May th s rose to 5 439 439234 234 ounces and in m June to 5 998 978ounces 978ounces 978 ounces Inqu nes rles ries at the treasury here are areanswered areanswered areanswered answered bj b } ) the statement that the thetreasury thetreasury thetreasury treasury is acting acllng under orders ordersin ordersm m in buying buymg this silver sliver Inqu ry as asto asto asto to where the orders come from are areanswered areanswered areanswered answered by the statement that no noreply noreply noreply reply will wlll be given but the hint hmt IS ISthrown isthrown isthrown thrown out that after all there are areonly areonly areonly only two t\\O t O \ places the orders could couldcome couldcome couldcome come from One is the White House Housethe Housethe Housethe the other olher is the state departmentLittle department departmentLittle Little Hope for Loosenmg Loosening LoosenmgBurden LooseningBurden LooseningBurden Burden of Armament Costs CostsOptimism CostsOptunlsm CostsOptimism Optimism Optunlsm about the much talked talkedabout talkedabout talkedabout about armament limitation hmltatlOn confer conference conference conference ence with a view to removing removmg the theterrific theterrific theterrific terrific burden of armament costs costsfrom costsfrom costsfrom from the various peoples of the thev.orld theworld theworld v.orld vorld world . has little httle foundation foundallon many manythmg in any anything anything thmg thing that Washington Washmgton dIplomats diplomatscan can see or understand understandIt It was no surprise to them whenPresident when whenPresIdent whenPresident PresIdent Roosevelt recently admit admitted admitted admitted ted at a press conference that the theexpendItures theexpenditures theexpenditures expendItures for tor the navy next year yearwIll yearwill yearwill wIll be greater than this year That Thathas Thathas Thathas has been known to everyone con connected connected connected nected with or interested in m the thenavy thenavy thenavy thenavyIts navy navyIts Its real importance lay ldY ley in the fact factthat factthat facti that there had been bdn b n some who wholhought whothought whothought lhought thought the United Umted States SUites might mightmake mightmake mightmake make a gesture in the hope that the theother theother theother other nations would wouJd follow it Pres PresIdent President President Ident Roosevelt does not believe believesuch believesuch behevesuch such a gesture would wouJd be effecllve effective effecllveHe effectiveHe effectiveHe He believes beheves furthermore that It ItwouJd itwould itwould wouJd would be positively poslllvely dangerous for forthe forthe torthe the United Umted States to relax in arm armIng armmg arming Ing mg itself . . The more powerful powerfuJ m in mmodern inmodern inmodern modern war weapons and readmess readiness readinessto readmessto to fight the United Umted States is in the thePresIdent thePresident thePresident PresIdent dangerthere s opinion oplDlon the less danger there is that some other nation nabon will willpIck willpuck willpick pIck puck a quarrel with usThere usThere us usThere There is no suspicion at the state statedepartment statedepartment statedepartment department that any partlcuJar particular partlcuJarcountry particularcountry particularcountry country wants at this time bme to pick picka a quarrel with the United Umted StatesForeign States StatesForeign StrainingTo Foreign rorelgn Pou.ers Pouers POiters Powers . StraInIng To Increase ArmamentActually ArmamentActually Armament ArmamentActually pointthat pomtthat |