Show -- ' v 2 THE SALT LAKE TRIBUNE Agencies Gain Accord on WEDNESDAY MORNING Pension Plan Followers Cheered Them Lend Measure Compromise Plan Roosevelt Woicea LiberalizmgLoans UpUmistie— View of Business Just how far the revisions will affect credit particularly to small business men was not known be cause the group decided to submit tO- - President reeommendatlons Roosevelt before making them public But an authoritative person said the program was essentially the one favored by the Federal Deposit Insurance corporation and the comptroller of the currency Up to Tuesday the federal re serve board had declined to approve this program on the ground it did not go far enough on the road to liberalization Accord Reached Secretary of the Treasury Mor genthau said Tuesday afternoon however that a unanimous agreement was reached by the reserve board and other agencies through a process of “give and take" Officials said the revisions deal primarily with the classification by bank examiners of bank loans and investments Technically a bank con make almost any kind of loan It desires but in practice it must make loans that the examiners will adjudge to be good assets The examiners determine the solvency of banka and can force them to close if they have too many undesirable assets Different View The differences between the fed eral agencies arose because the comptroller and the FDIC Insisted On utmoet protection of depositors’ money while the federal reserve board believing deposit insurance takes care of the depositors wanted more liberal banking rules will be The recommendations signed by these agencies and the Reconstruction Finance corporation which owns millions of dollars of bank stock and the rules will be extended to state banks through official connections between the FDIC and the National Association' of State Bank Supervisors Officials regarded this step toward Unified bank examinations as an important move in Itself because many bankers complain of the confusion resulting from examinations or more agencies Holds Up Ship Subsidy June 21 (UP)-T- he United States maritime commission Tuesday night deferred until later this week any definite action On the proposed $3000000 annual federal subsidy for the Dollar steamship lines WASHINGTON — 4 Florida Vote Results Revive Townsend Victory Hopes ‘ 'LOS ANGELES June 21 (JPh— Political success of the Townsend old age pension movement In Florida was cited to the third national Townsend convention Tuesday as a model example of what “hard work" will do toward gaining adoption of the general welfare act which embodies the Townsend plan— F Manley Goldsberry told the several thousand applauding delegates that Florida Townsend clubs in May "elected United States senators and congressmen from every congressional district in that state who will be loyal supporter of the Townsend plan In congress" “In other words" Goldsberry said “Florida Is represented 100 per cent In the nation's capital by men who will support our measure the'general welfare act' “This is the first Instance since the Inception of the Townsend movement in which this oould be said of any state This signal victory my friends was not won by chance nor was it woa by - hoping" - Goldsberry attributed the election results to intense organization of Townsend clubs In every Florida congressional district and their unified support of candidates recommended by Dr Francis E Townsend founder of the movement and other national Townsend officials Goldsberry fs an executive assistant of Dr railroad-commissi- W As Little As 55 Down $5 A Month ft Probers late Phosphate Meet in Idaho ' Townsend “Florida Townsend clubs delivered 128000 votes in five congressional districts and every one Capital Quiz Ends of those votes counted" he said After Fixing Next “What Florida has accomplished Michigan can accomplish Session on July 20 It can be done in Ohio Wisconsin California and Maine” Chairman Jerry Carter of the (Continued from Page One) deon Florida clared: “Florida has gone over the its report next winter The com top for the general welfare act" mittee was told there are now in existence six leases of government Church Deplores Wine phosphate lands in the Rocky mountain area and that rock from four At Roosevelt Union of these properties is being shipped RUSSELLVILLE Ark June 21 to the smelter at Trail1 British Co(D—The general assembly of the lumbia Cumberland Presbyterian church Since the phosphate hearings In Tuesday censured “the serving of Idaho last fall seven new applica champagne after the Roosevelt-Clar- k tioni for phosphate leases have been wedding because of the ex- filed with the Interior department emplary nature of every act of the but none have been approved If tire department respects the wishes chief executive of the land" The criticism was made in a re- of the committee these applications port by the committee on temper- will not be allowed ance and law enforcement which Without attempting to go spiel the assembly adopted unanimously Adally into the power problem as It The report quoted a newspaper ties in with the manufacture of ferclipping which said a quantity of tilizer from phosphate rockk that champagne had been set aside for subject being deferred for consida reception following the Wedding eration at Pocatello the committee of President Roosevelt’s son John did get information to the effect to Anne Lindsay Clark at Nachant that it would be impracticable to Mass last week build transmission lines from either the Bonneville or the Grand Coulee dams on the Columbia river to the Idaho phosphate fields and unless power from those government dams can be exchanged for power produced locally by the Idaho Power company thereby greatly reducing the cost of transmission the committee inclined to the belief that it might he cheaper to ship the phos phate rock from southeast Idaho aiid near-b- y territory to plants that mlghKfe built at or near one or both ttta government power plants on the Columbia river 'i Will Put An Electric Rang In Your Home M1 i Snjoij fittfei £itftnq urttk CKeap Sfecthicttu ura on national Income tha figure for 1937 would have been $72000000000 Instead of If it had not been for slackening of "business toward the ’’ end of th year down hie notes of Wading pile the president announced 'a fireside chat for Friday June 24 at 7:30 m mountain time The phat wilLM made from-th- e old diplomatic room in the White House following the president's appearance at a dinner given in his honor by the "little cabinet”—-thassistant secretaries and principal subordinate officers of government departments Number of Bills From there he Jumped to how many bills he had signed and had to sign and then began reading slowly to the perspiring newsmen a e statement on the freshly approved relief bill Mr Roosevelt said it was generally recognized today that economic and social welfare ought to go hand in band This relief and works hill covers both forms of welfare he said adding that It permits a great program to get under way immediately It permits he continued a large amount of money to be spent for many different form of assistance not only to the unemployed and in getting wages out but also to agriculture industry and to busi- Proposal Made It was suggested originally by Senator Pope and byxJ D Ross administrator of the Bonneville power project that the government might carry Columbia tiver power into Idaho th counter pro posal now is to ship" the Idaho rock into Oregon or Washington for manufacture into fertilizer Senator Pope at Tuesday’s closing session called attention to the fact that there is one good power site not far from ths Idaho phosphate deposits which might if the government so determined be developed to furnish power "for manufacturing phosphate in the vicinity where the rock is mined The committee on hearing this suggestion said that in time the government undoubtedly will tie into one great power grid the big government power plants of Washington Oregon and Idaho and it may be determined before the committee reports to advocate some such plan for getting cheap power into southeast Idaho' for the mining of phosphate r6ck if not for the manufacture of fertilizer T V A’s chief engineer testified that in the Tenpessee valley they have developed a highly efficient process of producing fertilizer from phosphate rock This process calls for 6000 kw hours of electric energy to produce a ton of refined phosphate One advantage of this process he pointed out is that the new electric furnaces can be op crated and should be operated on a basis thus afcontinuous fording a maximum market for a large block of power If and when It cqn be obtained cheaply ur Single Wire Circuit Carries 96 Messages NEW YORK June 21 (INS-Fr- om radio came the electric organ and from the electric organ Tuesday came the newest sensational development in communication— a single circuit on which 68 messages may be telegraphed at one time Announced by Western Union en- ness Federal Cooperation Tha program is carried out'' the president declared on the principle of federal participation in partnership with state and local agencies almost wholly a partnership baslr Practically all W P A work is that all of P W A is that and so is the work Of the national youth administration and others he added Mr Roosevelt said the $3750000-00- 0 measure was a partnership bill On the public works end he asserted P W A was created as hn experiment in 1933 He said the administration recognized W P A’s power but had not measured it at that time Since then he asserted he and his aids had been metering its merits Facts Revealed That is a new line he added declaring that in following it two things had been discovered— that cittea and other public bodies still need a very large volume of permanent improvements and that these localities are glad to and aDle to assess themselves for more than half of the total cost of the improvements by going into partnership with the federal government The president added that It also had been determined that on P W A projects two and half workers are given employment in mines mills forests and on transportation for every worker on the project site Another illustration he said was that 36 cents out of every dollar goes to the construction payroll on the job and 64 cents for producing and -- Jncome-tax-cas- ar eslata-of egeiast-t- hi ® -- Andrew's- toaad JXba agree m cut hroijfht Jmt? y iiUgatoaiInvolving suchHelicate legal 'points as the value of art treasures which once hung in the palaces of the Russian czrsr and the worth of a share of McClintic-Marsha- ll corporation stock -in Ml?‘V - too saw the former secretary of the treasury The case accused and cleared of charges that he attempted ta defraud the government in drawing up his income tax returns for 1931 at a time' when as head of the treasury department he was the nation’s chief tax collector 4 Mellon who died last August denounced the suit as "poli tical persecution” and "a campaign" of villificatioi)” He lived fedepf grand jury refus&to indict him on the fraud - - “To Assist Lines' charge" ' " June SiId-- A railroad bondholders that proposal taka a drastic cut in interest rates f in order to help the carriers through their present financial lifAcuities J I came Tuesday from Senator-Bora1 (R) Idahot The veteran Republican suggested) that the government could encour-age this procedure by agreeing to make Reconstruction Finance cor-- 1 poratlon loans to carriers whose bondholders accepted such reduc-- 1 ' f tiona h ‘ AUhough finding the frjjud accusations groundless (he board" of tax appeals did come ta the conclusion that Mellon-miaerpthe- government by $485809 in making his return for 1931 and to this amount added $182000 interest ’ WASHINGTON f ajd Assured Returns Judge Silences Hague Effort To Berate CIO Attorney y The J June 21 (AP)— Presentation of chargeTfhat Frank Mayor Hague abrogated free speech and assemblage in Jersey with the mayor seeking in vain federal ended in City to make another attack on CIO Counsel Morris L Ernst NEWARK N court-Tuesda- y On his feet in the Jury box the tall and lean vice chairman of the national Democratic committee was silenced by Judge William Clark “Judge I would like to be permitted to make a public statement involving Mr Ernst” said Hague pointing at Ernst among the CIO and American Civil Liberties union lawyers pressing an injunction suit Against Hague and his fellow restrain them from interfering With those organizations’ activities lit 'Jersey City Ernst Grins Ernst accused by gue of In plot to stigating a seize control 1 of the United States smiled at Hague’s protest “Notr from the witness stand” ' Judge Clark cautioned Hague Tt Involves the court” Hague went on "I have proofs I have I submit myself to records be examined by everyone and 1 will feel very ipuch disappointed if I It involves am not permitted this gentleman (Ernst) and It involves the Integrity of this court” ’No” said Clark "You will have to offer it through your counsel in You must confer with evidence offi-ciolF- your counsel first" An authoritative source said that Hague sought to discuss a conference between opposing counsel at the start of the trial at which efforts were made to agree to a proposed Injunction restraining the alleged acts plaintiffs complained of by Jhe Court Adjourned Hague’s reference to the “integ rity of this court” this source said meant only that the conference was held in Judge Clark’s presence and in hi chambers Slaying Tale Read to Jury As the plaintiffs rested court was adjourned ta Thursday when arguments will be heard on several legal points including the validity of blanket subpenaes issued by Jer- sey City counsel on high CIu and ACLU officials Ernst filed with the court bondholders Tues- day an affidavit supporting his motion to have Hague held in contempt for issuing to newspaper men during a recess last Friday a state- ment the court had ruled out of the V record Hague’s statement charged Ernst stopped a New York legislative committed investigation of reports of radical Influences in the public schools of that stats Action on the contempt charge was held In abeyance pending filing of brieff by Ernest and answering affidavit fcnd briefs by Hague’s lawyers -- man ONRELIEF Men 9 tailors who’ll hate grand at their spend tie heat as much as anybody and that’s why PALM BEACH ‘ is In their Summer wardrobes unlined one that offers cool relief of smooth It’s tha washable suit without the sao-rifi- ce unpadded smart appearance We’re showing a veritable feast of color! in the new Palm Beech Suits t at every banquet a million-airo- ’s man’s price biU-ror TheTresIdinrsaidthatjthesame Santa Fe Pick! Official thing about federal-locpartnerCHICAGO June 21 W—Appoinship on P W A holds true for the ted of J A Gillies as assistant workers progress administration’s general manager of the Santa Fe $1425000000 eastern lines with headquarters at W P A is now in gear Tie said Topeka Kan was announced Tuesand ready to go ahead July 1 night by F A Lehman genW P A projects he concluded day eral manager of the lines will take care of as far as possible all the available employable al unemployed Answering questions after he finished reading the statement on relief the president said that all he knew or had thought abbut a special session of --congress to" enact railroad legislation was what he had read r Towne Tones for Business Airtones for SporH tha v (also sea at $2000) Dinner Formal Don’t Keep on Having Constipation! - If constipation's got you down- -o you feel heavy tired pnd dopey-I- t’t time you did something about And something more than taking a physic! You should get at the cause of the trouble If you eat only the things most v Tpeople do the chances are that a very simple fact causes your don’t get “ bulk And “bulk" doesn’tenough mean heavy food It means a kind of food that isn’t consumed in the body but leaves a soft “bulky" mass in the intestines and helps a bowel movement If this is your trouble eat crisp for crunchy Kellogg’s breakfast every day and drink is not plenty of water only rich in “bulk’’-- lt also contains the natural intestinal tonic Vitamin B Made br Kellogg in Battle Creek Sold by every grocer X y: it Plane Pan-Americ- an Still Missing " NEW YORK June 21 (INS)-- Tb Pan American-Grac- e airways plane with four persons aboard which disappeared while in flight over South America on Sunday still was missing late Tuesday it was announced here Th plane tbok off from Santiago Chile at 8:30 o'clock Sunday morning for Lima Peru An hour and one-halater X message came from tha plane saying "Everything lf heard A $ 1L MIIJIIVXI 1111 208-21- 0 1 1 1 So r I I would rather have an assured 8 per cent than 6 per cent return that they may not get" commented Borah The railroad problem increasingly j has concerned thos legislators still in Washington though most of them have received coldly the un- -j official talk of special session pi fall to do something about In this connection theyfcalil a special session could dtf little or nothing until after coihmittees had studied the question exhaustively Such studiesmight taka several weeks or months One highly placed congressman' Unwilling to be quoted by name thought it would be adsalhe visable however to have coromjt- fees begin studies early this fall Ordinarily the interstate commerce commission makes a report to congress on the general railroad situation when the session opens For Next Session Ibis congressional leader said that if ths report vas made in the early fall committees could hold hearings and have some definite proposals ready early in the next session - - Prospects are that only a hand ful of the railroads will earn even their Aed charges this year As a result most congressmen are agreed that something must be done but opinions as to what might he done differ widely CounseFFinish presentation of Charges As Free Speech Hearing Adjourns fabricating materials generally at distant points Noting that last Thursday was P W A's fifth anniversary- - Mr Roosevelt said that in those years that agency had added all over'the country 25000 useful projects thus ALPINE Texas June 21 (ffThe releasing to industry for the purchase of materials over $2000000-oo- o gruesome confession of Francis Marion Black Jr that he tossed Marvin Dale Noblitt Approving Projects over a mountain bluff to collect He disclosed that he had been insurance was read to a jury Tues approving P W A projects for three day weeks in every case subject to sign-nln- g The statement told of failure of of the bill and that on al- two previous plots against the boy most every project so approved ac- whose widowed mother Mrs Bobbie tual dirt would begin to fly inside Smith entrusted him to Black on of 60 days A total of $350000000 a promise he would be given “clothof projects have been signed by ing and a good home" District Judge C R Sutton overtheTresldent defense objection and perSixty days the president de- ruled clared would be the earliest since mitted reading of the statement the contracts for work must be after Harold Wynne" deputy sheriff advertised 30 days &ni certain testified it was made without coerother routine followed to insure that cion-' “I first planned to drown the the work will be dona properly- He added that the remainder of boy Black's confession read T learned he was a good swimmer the lending and spending P W A’s $965000000 provided in bought him a bicycle hoping he a good deal of It—wduld be allo- would get run over by pm automobile andzsave me the trouble of cated within the next two weeks Thus he asserted the bulk of doing away'wlth him" P W A’s money goes to work in the shortest possible time -- cirgineers the multiple-messacuit already Is in operation between O K" New York and Chicago WashingNothing has since been ton Buffalo and Atlanta from the plan s ‘ two-pag- Dr Francis E Townsend (left) founder of the "Towjnsend plan1 with Governor Frank E Merriam of California as they addressed Townsend disciples In LoS Angeles If®' ' j e - li - WASHINGTONTJ'uhFrUPjbveramratTWre ' At I Borah Urges $668000 'Settlement Interest CutEnds Mellon Tax Case On Rail Liens' millioa-doll- (Continued from Page One) ion-" by two i ‘1938 -- poa-aibl- - Nation’s Chief Signs Spend BanlungRules WASHINGTON June 31 W Four federal banking agencies eom promised their difference Tuesday and agreed on a revision of bank regulations which may make some liberalization of the loan policies of every bank In the nat- y- JUNE 22 M Iv W IMI IX Main St All-Br- an S ££ hi'i” |