Iron County Record | 1934-07-19 | Page 6 | Seen and Heard Around the National Capital

SEENI SEEN HEARD HEARD around round the this National Capital ii D CARTER FIELD Washington Ambassador Ambassador Luther Lather hurried burned trip home hone after arter Ger- Ger many's action on reparations so 10 surprised sur- sur diplomatic Washington Is II returnIng returning returning re re- turning according to advices received here with a real tale of woe to back backup backup up op M his hili negotiations for special treatment treatment treat treat- ment under the new tariff reciprocity pow powers O u era granted the President by congress con green gress This The II li the first nut year since the depression deNn de- de Nn that Germany has hu bad had an adverse ad verse era balance of trade for example At the Department of Commerce however however how how- ever skeptics point out that thus this balance balanco bal bat once ance I is II not big enough against Germany Germany Ger Ger- many to 10 offset the Invisible credit lt payments pay pay- ments menta for shipping for other services an and 1 for expenditures by tourists Hut It Is no secret that the boycott German ships hips by American and nd other tourists tourists though though Americans are the most mOlt numerous spenders on this sort of thing thing has has hurt amazingly cutting ut Into the profits of the big fast German ships which captured the th fI Speed 1 record of the Atlantic so 10 recently re reo Meantime Germanys Germany's trade with Rus- Rus sla ilia n has hilI dropped to a low level This is II portly partly the outcome of the political situation brought about by littler Hitler who overlooks no opportunity to say unpleasant un un- pleasant sant things about the th Russians As AI a result Russian trade Is II being transferred to Britain and to the United United Unit Unit- ed fd States Germany Is Issuing no new credits to Russia The movement Is II the other way Russia li is paying for goods received from Germany In previous previous pre pre- Ire Ire- years These funds fund should hould be available for payment of Interest on on I foreign debts some IOme of our experts expert I think but of cour course e there Is II an unknown unknown unknown un un- I known element That li tI to what l' l extent extent ex ex- I tent Germany has haa been financing exports exports ex ex- ports and stimulating sales abroad through the repurchase of German bonds bond at depreciated prices f u I Makes Make Up Loss Lo Under that procedure the exporter who could not make a sale abroad If the mark were at par lar Is II permitted to quote a lower price put the proceeds of the sate sale in foreign currency and aud buy the depreciated German bonds abroad The bonds are then brought home borne and sold on the Berlin market I at the higher quotations prevailing then That profit frequently makes up for the loss lOll losson lOllon on the sale lale of the mer met chandise The however does dol not get et the foreign currency paid for far German Gen Ger man Dlan goods as a. It goes for the purchase of the German bonds bond If It the Reich Reich- bank permits only CO ro per cent of the proceeds proceed of the sale lite of German goods to be employed In the purchase of German German Ger Oer man bonds bond abroad It receives receive the remaining re re- 50 ro per cent in to foreign currency currency cur rency but the system Is one in which the always receives less than per ler cent of the proceeds of at German ex exports port II So there Is III no wo way of knowing to what extent German export trade li is actually making foreign exchange available In payment for Imports or for Interest rest on German foreign debt The situation Is one In which Germany at any time might decide to devalue the mark In an effort to create a bal ance If It devaluation were sufficient only to achieve e such Buch a balance there would be bo no serious threat to th the British Brit lint lab ish or the French position A Germany importing as 1 much as she exports export would be assisting foreign Industry by bl her ber purchases as al much as she might put Iut foreign Industries under pressure by her ber competition But Dut If the mark were drastically reduced re to- duc to the point where the German exporter would be given a clear advantage tage In world markets there might be bea a period of disturbance which might end with further depreciation of lint lint- ish pounds and In the unsettling of the gold currencies Which would lead directly directly di dl- to tremendous pressure for further further fur fur- ther devaluation de of the gold value of the American dollar resident President Roosevelt stilt still has a leeway leeway leeway lee lee- way of almost 10 cents which under existing law he can use marking the dollar down to DO ro cents gold the figure figure fig fig- ure fixed tiled as al the limit by congress The chief question Is ts what such luch a devaluation of the mark would do to to Germany Doctor Luther is I. not reported report report- ed to be happy Doubtful Practices Practice Oil magnate magnates and their represents tires Lives here believe that the slashing reduction in pipe line rates on oil all will delay for a long time the active move mo e reinforced during the closing da days of congress by the Darrow Harrow report for tor divorcing divorcing di dl the bl big oil producers and their pipe lines One of the points made In the Darrow Danrow Dar Dan Harrow row report 1 was that something should he be done about the heavy beul profits of the pipe lines line It 1 was charged that some som of the bIg oil companies that owned pipe lines were guilty guilly of a practice very much In principle like Uke the tho secret rebates of the old Rockefeller days day It Jt was wal alleged that the big oil companies companies com com- charged such luch high rates on 00 the oil of Independents which passed palled through their pipe lines that they were enabled to cut rut the price of their own oil below actual cost of production So they had hod the Independents hamstrung before they started It was at this and some other practices practices pra tices that the Ickes oil regulation bill was aimed In addition to the necessity for controlling oil production unless the Industry was to be leveled to prostration pros pros- The Ickes bill was as endorsed endorsed endorsed en en- by bl the Darrow Harrow review board which declared systematic and s control of production w was 1111 s e essen essen- n- n Vat Many of the boards board's recommendations recommendations dation concerning enforcement of the marketing sections of the code will bob op tip from time to time In orders orden from the oil administration which Is I. now wing being pestered by br widespread 1 complaints complaints com com- plaints plaInt from Independent distributors distributor Most MOlt of the complaints are that while Ickes leke has haa b been n trying to shut off hot oil valves the big companies have bave been doing just about what they pleased with gasoline Here lIere In Washington Wash Wash- ington I. I S 8 B. Scott chairman of the local petroleum committee seriously considered giving Instructions that code eagles should be given only to companies complying with the code an and 1 Insisting that certain companies will not get theirs until they sign certificates er of compliance Refiners Refiner Grumble Crumble Refiners In producing oil fields have hIT protested and Independents have boen been grumbling for years tarl ears that pipe line rates are too high high- I Now ow that consolidated consoli dated tax tu returns are practically verboten verboten ver- ver bot boten en the pipe lines have hue another reason reason rea rea- son Ion for reducing roles rates Last years year's ear net Income of the Texas Pipe Line company compan of Oklahoma was on onan onan onan an Investment of G 87 In gathering gathering gather gather- ing and trunk pipe lines Shell Pipe PipeLine PipeLine Line corporations corporation's net was on an Investment of 1 Pipe Line Une com company's pliny's was wn T on an Investment of 87 and Texas Texus Pipe Line company's company's com corn pany's was r on an Investment of All AIl of which Indicates that while larger profits have been made on smaller Investments a pipe line company com corn pan pany subsidiary was a handy sort of thing last year for a big oil all company to have huo while prices of oil were being slashed and profits on the parent company company com com- pany were being cut to the bone On June Juno 7 there was a hearing on the bill of Representative Strong of Texas to divorce pipe lines from front Industry industry In In- ownership hut But It was apparent apparent ent to the most casual observer that no Immediate action was Intended It was Will largely a pretext fo for delaying the oil control bill and Incidentally to help Colleague Strong with his publicity pub pub- publicity lub- lub back home The pipe line companies to their indignation indignation in in- were not called Actually they were delighted as II they think now they will have an argument in to the next nut congress claiming that In the congress congress con con- gress erell just ended they were not given givena a hearing But Dut the reduction In rates rotes ordered b by the Interstate Commerce commission commis commisSion sion lIon Is II far more important lo to the pic pIc- ture It makes the chief attack on dual ownership of oil wells well and pipe pipelines pipelines lines a dud dod Keystone Politics Politic Patronage troubles promise to fa fade e the Ih bright hope hOle of the New Deal for carrying Pennsylvania one of the six states which voted against Franklin D. D Roosevelt In 1032 1932 Five FITe of the eleven en Democratic members of the house from the tile Keystone state make no bones of the fact that they have haTe no Interest in the election of Joe Gulley as II United States senator and there are art some other complications In contrast contra t with this the Republican can organization which of course will back Senator David A A. A Reed for re election has been enormously strengthened by the recent ups shake In both city and ond state committees which ups shake-ups incidentally included the elimination of William S. S Vare Vane The Republicans Republican in Pennsylvania are also In rather 1 good humor about the recent selection of Henry P. P Fletcher as Republican national chairman Bitterness of these live five Democratic congressmen flared up within six weeks after Roosevelt's Inauguration The five malcontents are Representatives tives Francis F. F K F. Walter alter of Easton Patrick J. J Boland of Scranton Charles I. I Faddis of Waynesburg William M. M Berlin of Greensburg and Charles N. N Crosby of Meadville They alleged that the distribution of patronage as 81 dictated by bl Guffey long reputed Democratic boss of the state was as calculated to wreck their In a subsequent row after Guffey had obtained the appointment of an Internal revenue collector at Scranton o over o er Representative Bolands Boland's protest Guffey had A A. A F. F Fix of York appointed appoint appoInt- ed collector of internal revenue at Philadelphia la This pleased Representative Represent Represent- e Harry L L. of Red Lion LloD but later when Fix was forced to resign re- re sign because of activity In campaign fund collections all the good will In York county which appointment of ot Fix had bad created was lost Democrats Angry Just what the York county Democrats Democrats Demo Demo- cratl expected Guffey to do about It ItIs ItIs itIs Is something else again The Important important tant tent point Is II that they are mad not that their anger Is U justified Which In effect makes makl'S six of the eleven Democratic Democratic Dem Dem- districts in revolt Still another fly In the Guffey ointment ment resulted from the appointment I of Joseph F. F Gallagher Gallacher II as postmaster of Philadelphia lie Ill was appointed on onI the endorsement of Guffey and Jack JackI I j I Kelly new city chairman In Philadel Philadel- phia Soreness here bere results from the I fact that Gallagher Is a member of the I famous Philadelphia Union league and 1 was a lifelong Republican up op until 1 I April 11 last I Cuffey's power with the administration I tion Is due to the fact that early earll In Inthe n the pre convention battle he be broke I with his old allies Al Smith Frank Hague and others othera of the northeastern group and came rame out for Roosevelt I More Important he was able to deliver deUTer a large majority of the big Pennsylvania Pennsylvania Pennsyl Pennsyl- vania delegation to the man who isnow la is lacow now cow in the White House W U lento