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Show PAGE TWO THE News Review of Current Events the World Over United States Pledges Aid for Peace and Security J. P. Morgan Questioned hy Senate Committee Plan to Finance Public Works Program. By EDWARD W. PICKARD to a demand for a ducted from the firm's taxable InThree or four million dollars of the he said, was deducted from profits In 1031 a year In Davis, ambassador-at-lorgannounced which the partners paid no tax to the disarmament but none In 1932, when the firm "had loss enough." conference In Geneva what see s to On the second day the senators many a revolution-ar- y heard about Morgan & Co.'s "predeparture from ferred list" of friends to whom the firm sold Alleghany Corporation Ameritraditional can policies. Ap- common for $20 a share when the parently It means market price was $35. In this list A 1 that names. Inthe United were many States has aban cluding William H. Woodin. now doned Isolation, secretary of the treasury : Charles N. H. Davis neutrality rights Francis Adams, later secretary of and the freedom of the seas. Spe- the navy ; Senator McAdoo, Newton D. Baker, John W. Davis, Gen. cifically, Mr. Davis pledged his government never to Interfere with In- John J. Pershing, John J. Raskob, ternational action against a nation Silas II. Strawn and Col. Charles that has been satisfactorily identi- A. Lindbergh. fied as an aggressor, and to particiAnother list revealed Included pate In '"effective, automatic and con- the names of bank officers and ditinuous" International supervision rectors to whom the Morgan firm designed to make certain that the had made loans. Some of these nations carry out their promises In loans had been repaid, but many disarmament. had not, and In the latter category "President Roosevelt's message," the largest was a little over $G,000,-00- 0 he said, "Is a clear Indication of to Charles E. Mitchell, former the fact that the United States will president of the National City bank exert full power and influence and of New York, whose trial for alaccept Its Just share of responsibilleged Income tax evasion was goity to make the results In disarmaing on In New York city. ment definite, prompt and effective." After announcing that the United PEDERAL JUDGE IIAROLD States was willing to consult with Louderback of California was the other states In case of a threat acquitted In the Impeachment trial to peace, Mr. Davis set forth the In the senate, but he escaped by a narrow margin. On the fifth and American policy In these words: "Further than that. In the event most comprehensive charge 45 senthat the states, In conference, de- ators voted guilty and 34 for actermine that a state has been guilty quittal. But under the constituof a breach of the peace In violation tional Impeachment procedure a s of Its International obligations and vote, Is necessary for take measures against the violator, conviction. then, If we concur In the Judgment rendered as to the responsible and TF THE administration and Its supporters In congress have their guilty party, we will refrain from any action tending to defeat such way, the $3,300,000,000 national recollective effort which these states covery bill, providing for regula- may thus make to restore peace." j tlon of Industries and construction of Asserting that there must be real vast public works, accomplishment In the way of diswill be financed by armament, or a reversion to a race In arming, Mr. Davis proposed drasIncreased Income tic arms reduction, and promised and gasoline taxes I and higher Income that the United States would go as far In this as the other states. Imposts on stock $ Great Britain, Germany and Italy 5y-dividends, as well were highly pleased with Mr. Davis' as the continua-- ' but France retion for one year pronouncement, .1 of a" the nuisance mained, dissatisfied, both with the laxes lev,e, ,n tnfc security offered by the United Hugh S. States and with the Davis proposals C C 11 U C Will Ul Johnson for armament reduction. The more 193a That wag the French get, the more they de- way It was reported to the house mand, and their obstinacy Is exceed- by the ways and means committee, ingly Irritating to the other nations. and though the Republicans and told some others objected to these taxes Foreign Minister the conference that France would and fought for a sales tax, that Is not reduce her armaments unless a the way It Is likely to become law. The sum of $220,000,000 annualdefinite system of mutual assistance Is created, supplemented by genuine ly will be needed for Interest and supervision of armaments. The su- amortization of the public works pervision, he said, must especially bond issue, and the committee decover armaments which are manucided this should be raised by: 1. Increase factured In private factories. of the normal Income tax rates from 4 to 6 per INVESTIGATION of the private cent on the first $1,000 of net inA banking firm of J. P. Morgan & come and from 8 to 10 per cent on all above $4,000. This levy Is es Co., greatest of its kind in America, was started by the senate bank timated to raise $40,000,000 a year. 2. Extension of the new normal ing committee with Income tax rates to dividends now J. Tlerpont Morgan, senior partner, as subject only to surtaxes and taxation at the source. Estimated to chief witness. The yield $83,000,000 a year. proceedings were S. The addition of another three-fourtconducted by Ferdlof a cent to the present 1 nand Pecora on be- - f cent a gallon federal tax on gasohalf of the commitline. tee and attracted a f Estimated to bring in annually. throng of snecta- These additional taxes, the retors. John W. Davis, port said, "are temporary In charloruier Democratic acter and may be eliminated by Presidential candiP. Morgan J. proclamation President by the date, was there as counsel for Morgan, and the banker when operating revenues exceed was several times relieved from operating expenditures, or when nagging questions of Pecora by the the repeal of the Eighteenth amendment opens a new and ample protests of Senators Glass and Most interesting to the pub- source of revenues to the governlic of the facts brought out was ment." To administer the Industry conthat no income tax whatever was paid by Morgan or any of his trol features of the measure when nineteen partners for 3031 and it becomes law. President Roosevelt has selected Hugh S. Johnson 1932 and that they paid an aggregate of only $48,000 In 1030. This of Moline, 111., and he has been was because of heavy losses sus- busy getting an organization In tained by the firm. Morgan could shape so he can go to work promptnot recall whether he personally ly. He had a large part in formupaid any tax In 1030, but counsel lating the bill. A close associate of Bernard for the Investigators said he did Democratic leader and New not Morgan repeatedly answered "I do not know" to Pecora's queries York financier, Johnson was a about a $21,000,000 loss written oft member of the old war industries his firm's books on January 2, 1031, board. He was also head of the In addition to other deductions first draft board during the World which already had wiped out tax- war and since then has had extensive experience in manufacturing. able Income. Finally the banker asked Leon- He was born In Kansas in 1SS2. ard Keyes, office manager of the He turned to the army for a career and was graduated from West firm, to explain the matter. Point In 1003. When he retired In Keyes said the involved transaction was ttie Inevitable result of a 1010 he was a brigadier general. revaluation of assets made necessary by the admission of a new rXPAXSION of credit rather than of currency has been partner, S. Parker Gilbert, on Janstarted by the government under uary 2, 1031. Pecora hammered away with the powers given the President In questions, hut Keyes, a methodical the farm act. Secretary of the appearing man who spoke crisply and Treasury Woodin announced that without hesitation, repeated his ac- the federal reserve banks had made count over and over. He testified an Initial purchase of J'jri.Ooo.O'Hi that the $21,000,000 loss could, as of government bonds In tiie open the law then stood, have been de market. RESPONDING of the policy of the United States In the matter of peace and disarmament, Norman II. come In 1031, 1032 or 10'!. 0, e, 111 well-know- two-third- f. i, j Paul-Bonco- If That Is the start of an Inflation, ary step," Woodin said. "It Is being done to Inject something Into the market. In other words, to keep things moving along." Woodin said additional purchases would be "entirely dependent upon conditions." The new luw authorizes the reserve bank to buy up to $3,(X0,000.000 of securities. When the reserve banks buy bonds, cash balances of member banks are Increased by equal amounts. The administration hopes that the banks, with these additional funds on hand, will advance thein to Industry. NEPIH. UTAH S. flKe rj,-jp,- Thursday, June O nr i i it 1, 1933 of five iz it WW aud Stripe i VirHEN President Roosevelt asked the nations of the world to agree to a tariff truce pending the outcome of the London economic 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 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 administrators of the farm relief act, selected Guy Shepard of Evanston as administrator In charge of the packing house products under the act He will have general charge of trade agreements between packers and between producers and processors relative chiefly to hogs and their products. Mr. Shepard was formerly vice president 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 Farmer-Rurallsthe Progressive Both he and Shepard rank alongside of Prof. M. L. Wilson, appointed administrator some time ago. y ' ...,; I (2) . t DONT'tREXo'otfwH .rLj i a t. 1 By ELMO SCOTT WATSON 14 In -Flu?o rinir and If- mabii. ,1. I lie J iact that on that date in 1777 the V Jl UE iaua . Continental congress "Resolved That me nag or tne thirteen United States be thirteen stripes, alternate red and white; that the onion be thirteen stars, white In a blue field, representing a new constellation." Tfcus It was that the new emblem of the nation came Into official existence thus It' was that the Stars and Stripes were born. am, contrary to tne Delier of many Amerl cans, this does not mean that our national ban n ner sprang Into being from the brain of one man or one group of men on that June day 150 years ago. The truth is that our flag. like so many other American Institutions and symbols, developed by a gradual evolution and derived Its inspiration from sources as varied as the strains of blood which have been fused into making "the typical American." The real origin of our national flag goes back to the banner which was flown by the expedition tnat discovered the North American continent This was the simple banner of St. George's cross, in red on a white field, the old flag of England. It was carried by the expedition of Giovanni Cabot, or as he is more familiarly known, John Cabot, the Italian navigator, exploring for Eng land, who discovered the North American conti nent in 1497. Sailing along the east coast for 1,000 miles, he laid the foundation of English claims to North America. The flag was borne later by Capt. John Smith's ships to the set tlement at Jamestown, Va., in 1607 and again by me Aiaynower to the Plymouth (Mass.) settle ment in 1620. Next in the line of descent comes the King's Colors or the L nion Jack, designed In 1(506: svm boiizing the union of England and Scotland after King James took the throne of the united kingaoms in iwm. Tins union was represented in the English flag by imposing the English red cross of St. George on the Scottish white diag onal cross of St. Andrew, on a field of blue. There are records of the use of this flag on forts In this country In 1679 and 1C0G, and this en sign was required in all British dominions by a parliamentary act of 1707. The term "Union Jack" was probably derived from King James signing documents in the French "Jacques," the pronunciation of which is not unlike "Jack." The "union" came to be applied to that part of our national flag carry ing the stars. In fact, when this part of the flag is flown alone on bows of ships, it is called the "union jack" or simply "jack." Three flags that had an early Influence on the design of the Stars and Stripes were the striped flags of the Dutch republic. The Dutch, it will be first colonized New Netherlands, remembered, before it became New York. This territory in cluded New York, New Jersey, Pennsylvania and full-grow- MEW YORK state came to the fore In favor of prohibition repeal 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 aprpoximately forty to one. The 150 delegates elected to the convention 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 amendment to the Constitution. VIT'ITH a stately parade down Michigan avenue, speeches by Postmaster General Farley and others 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 marveled at what had been accomplished. By high pressure work, the fair was already virtually The most thrilling and dramatic part of the proceedings came at nightfall, when through a "hookup1 of three astronomical observatories a ray from the star Arcturus 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 1S93 opened. The fact that Chicago has created this exposition during the depression Is as impressive as the fair itself. In Cuba seems to be a way off, though the government continues with vigor its efforts to wipe out the revolution- e"5er! ists. And, accord PEACE - ! $02,-000.0- uwnwn v J Ra-ruc- TIMES-NEW- my J ing to the latter. President Machado Is using more than vigor. Operations against the opposition are being directed by Maj. Ar-sen- ro Ortiz, Macha-do'- s chief military strategist, and he Is pursuing the same with which tactics Ortii Major he terrorized Orl- eute province In 1931. In Santa Clara and Camaguey 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 Carlos Leyva, who led a rebel raid on Taguasco, threatening to kill them unless Leyva surrendered with fifty followers. Then Ortiz returned to S'nncti Spiritus, and It was believed he would pursue the same ruthles methods In that section. REPORTS from China, confirmed foreign office in Tokyo, said that an agreement for a -Japanese truce in the north China zone had been reached and was about to be signed. The Chinese defenders of Peiping 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 Croat Wall north of southeast to I.tifal on the coast, the line passing north of both Pieping and Tientsin. Despite the reported truce there was lenewed fighting nt the walled city of Tungehow. 13 miles east of Chinese- Pol-pin- Peiping. . 1933, Western Nawiiitp,jr Union :: Delaware. Settlements in these states were made by Dutch colonists under their flags; that of the Dutch West India Co., with three stripes of orange, white and blue; the United States of Neth erlands, with six stripes of red, white and blue, and the Rotterdam flag of green and white stripes. The English East India company finally crowd ed the Dutch out of sea trade and this company brought a new flag to America, a nine or banner of alternating red and white stripes, with a small St George's cross of red in the upper corner next to the staff. One of the variations in this flag was a pine tree or globe, representing the New world, in the upper left quarter of the union, formed by the arms of the St. George cross. In some flags of this period, the pine tree replaced the St. George cross entirely. With the Revolution, the struggling colonists wanted something different from a British flag, and the pine tree and rattlesnake emblems appeared; also the legend "Liberty and Union" on a plain fly of red. Then came the Stars and Stripes. When Washington left Philadelphia In 1775, to take command of the army at Cambridge, lie was escorted o'ut of the city by the Philadelphia Troop of Light Horse as far as Newark, N. J. The guidon of this troop was of yellow silk and carried in its upper corner, next to the staff, a small union of 13 stripes of silver and light blue. Stars first figured In the union of a flag car ried In 1775 on the schooner Lee by Captain Man-ley- , a Massachusetts skipper, whose ship operated as one of Commodore Hopkins' squadron and captured the Nancy with supplies for the I!rit Ish army November 10, 1775. Thirteen stars on a blue canton formed the union of its Hag. They were arranged in five horizontal, parallel rows and were five pointed. In the blue fly of the flag was a white anchor with the word "Hope" above it. This design was carried by Rhode Is, land troops nt ISrandywIne. Trenton and hut the stars were of gilt on a light blue canton. Following the early use of the English ensign which carried the St. George's cross In the canton there came into use in the colonies In the Eiglit- d York-town- j coat and breeches edged with green. Green was the color of the early Revolutionary cavalry's uniform, Marion's riders wearing the Romanesque helmet of the French dragoons and cuirasis... siers, and a green, skirted tunic with white similar to that of the French guides cavalry, whose uniform the first Napoleon was somewhat partial to, wearing it quite frequently. The Culpepper Minute Men wore green hunting shirts and the standard of the Georgia Rangers In the latter part of the war carried green and white stripes. 4 V When It came to adopting the Stars and Stripes, however, the color scheme of green was dropped and various flags of red, white and blue that had been familiar to American colonists for more than 100 years exercised the prevailing Influence in the design for the Stars and Stripes. The resolution adopting the flag appears In the 1 "The Stars and Stripes Forever!" Repro- Journal of Congress among a whole page of resoduction of the famous picture painted by Henry lutions presented by the marine committee on Mosler. The British, evacuating New York after the subject of the navy. On the same page with I the Yorktown surrender in 1781, nailed the Brit- LIIC ling (1 II V, .'.111 1 lllttl luc (.VlilUllllCT l1T9UiUUI.-llish flag to the flagstaff at the Battery and then Is one appointing John Paul Jones to the comgreased the pole. A barefoot sailor boy volun- mand of the ship Ranger. Jones was presented teered to climb up, take down the enemy flag and a flag by some women of Philadelphia and soon nail the American flag to the pole. From "The afterward he had the Stars and Stripes flying Winning of Freedom" in "The Pageant of Amer- at sea. ica," courtesy Yale University Press. Contemporary illustrations of Jones' ships and 2 The pine tree flag of early Revolutionary the description of the new flag when It appeared war days. in Europe, show that the early navy flags were 3 The rattlesnake flag of the early American arranged with the stars in horizontal parallel rows. Due to their number, the stars were stagnavy. 4 The flag, one of the earliest forms gered, that is, the stars in one row were placed after the flag resolution of June 14, 1777. opposite the spaces between the stars In the next, so that they looked like a constellation In 5 The 15 star, flag, the form used Vermont and Kentucky were admitted to the heavens, as the resolution had described after them. On one ship they were In five rows; on the Union. in three. 6 Flag of the Sixth Regiment of the United another, Ingenuity began to be displayed in the arrange States Marines. ment of stars in unofficial flags. In some they Note: No. 2 to 6, inclusive, are flags in the were arranged In a square; In others, in a circle. exhibit of the United States Marine Corps In Some had them in the shape of a star, a the Federal building at A Century of Progress, diamond or forming the letters "U.single S." Chicago. Photographs by Hack Miller. At first, the Stars and Stripes were looked upon merely as a navy flag, but In ISIS, under the third flag law, the present general design of eenth century the red British ensign carrying the flag was established. This held the number ttie union Jack in the canton. The British flag of stripes to 13 and added a star for each state. was altered atter the Revolution had begun bv The second flag law, passed by congress In May, placing 13 stripes In the fly of the flag under the 1705, provided 15 stripes for 15 states as well as 15 stars; but as the number of states was inHritish union jack. It was called the "grand union flag." and was creasing by 1818, it was found necessary to curhoisted hy Lieut. John Paul Jones on December tail the amount of stripes. Capt. Samuel Chester Reid, of the navy, hero 3, 1775, In the newly formed American fleet off a two-daengagement between his small brig Philadelphia. On January 1 or 2, 1776. It was of raised over the newly organized American army and a British squadron of three large ships, was called by the congressional committee to design at Washington's headquarters in Cambridge. In the correspondence of that day it was referred a flag, and It was his Idea to hold the number to as the "American colors." Tt Is interact inrr of red and white stripes to 13 for the original 13 to note that although these American colors states and to add a star to the union for each were used six months before the Declaration of new state admitted. On May 18, 1818, the navy commissioners Isindependence, they still carried the British n Jack in the corner. The thirteen united colonies sued an order, placing the stars In accordance were depicted by the thirteen stripes of the field. with the navy custom, in parallel horizontal rows io nag was authorized by act of conirress nn. and with the stars on the second and fourth til nearly a year after the Declaration of Inde- rows moved to the right, f of a star's pendence. That the "grand union" flag was lit- space. The order was signed by Commodore John tle used in the army Is seen from the manv fin Rogers, president of the navy commissioners. of other designs carried by the Revolutionary Six months later, he issued a change In the artroops. In the navy, on account of the necessity rangement of the stars, approved by the Presiof telling a friend from a foe by his colors, the dent. This order required that the stars be arsame flag was generally used by ail congress ranged In vertical and horizontal rows. The act of 1818 gave the fixed parallel ships. rule of adding In 1775, it was usually the pine tree flair- - in a new star on the Fourth of July next succeed1776, and until June 14, 1777. the crand union ing the admission of the state, but made no statement as to the exact arrangement nt tho atnra and after June 14, 1777, the Stars and Privateers carried striped and rattlesnakeStripes. and this has been a matter with which the Navy flags department hns been of various designs but It soon became necessary chiefly concerned. , to carry a uniform design, and this forced ttie mis is oecatise the naw nio ti, adoption of a national flag. This is why the without the stripes In the how of shins. The resolution for the adoption of the stars and navy nas attended to detail, na t .i ,i- t stripes appeared in the minutes of the marine and design of the flag and still i.,s partnients, blueprints of changes, after approval committee meeting of June 14, 1777. Because green was such a prominent color tn iii recent years army and navy early Revolutionary war flags, it would not have have agreed on changes. In is.-scribed the Stars and Stripes to ooen at an surprising If that color had found its replace its garway Into the national emblem. One of the rrot rison flag then in use. Until 1012 there was sor.m striking flags of the Revolution was a flag with t green fly and a union of 13 links in an endless the (.roper distribution of the 4S stars in' the blue nam. outsi-lfield. On October "6. l'lithe circle of links whs a circle of .hi. 3 hands or mailed fists ' "y t'sw'utive emerging from clouds den 1 !' der of Pres- Taft that the stars were to he and grasping the links. In the center of the chain was a pine tree of green on a blue field. in six rows of eight each, symbolizing arranged the 4H Tiiis was the flag of the Newhiirypnrt (.Mass.) states in the order of their ratification. If .von wish to know which star r,.:,r,.oi,t (Tlu:S company. Green was also the color of the pine vonlfe tree and liberty tree flags of Revolutionary days. Mate In the flag, remember what was its num In April, 1776, the Massachusetts council pre- ber it, the order of admission to the Union, then l.egin counting from the upper corner next to scribed green and white as the uniform of tho staff and the star vhi-in their sea service, nnd in the same ., h. num ri,m year ber the marine committee of the Continental con torresponMiiig to the number in the order of gross In Philadelphia resolved that the uniform adtii.ssion to the Union will be the star of your of marine officers be a green coat, white waist-- stale.) B re-ve- one-hal- iti oHi-cer- s by Western Newspaper Union ! |