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Show ley and Long fn their speeches denounced de-nounced each other without reserve, and the mayor promised to follow the senator to Washington, if necessary, nec-essary, and give him a good thrashing. thrash-ing. Having won the fight at the polls, he probably will abandon this project, though he and his organization organ-ization have pledged themselves to "exterminate" liuey from public life. IEVELOPMENTS In Japan Indl-cate Indl-cate that the military clique Is losing out and that Foreign Minister Minis-ter Koki Uirota will be a' 'e to carry News Review of Current Events the World Over Eastman Foresees Government Ownership and Operation Opera-tion of Railways Progress of President's Money Bill American Recognition for Mendieta. By EDWARD W. P1CKARD WHEN the railroad problem of the United States Is solved. It will be found that the solution Is government ownership and opera ' SO . A f J y: -a I ) 1 ' f X ' Y ' out his plans to establish es-tablish more friendly friend-ly relations with the United Stats. Cen. Saclao Araki, who had been minister min-ister of war since December, 1931, and who conducted the campaign against China, has resigned ostensibly because of ill health, and has been succeeded J. B. Eastman tion. In the opinion of Joseph I!. Eastman, East-man, federal coordinator coor-dinator of transportation, trans-portation, l'he conclusion con-clusion Is set forth In his (irst report, made to the Inter state Commerce commission and transmitted to I'res-I I'res-I d e n t Roosevelt, Vice President Gar- rmr ntifl SSnonlfOr Koki Hirota to Intervene In Cuban affairs to maintain law and order will be Junked. And congress will he asked to give Cuba a big preferential re duetlon In the American sugar tariff. Sugar raising is the Island's chief industry in-dustry and for five years it has been In a severe slump, and the resulting depression has caused much of the political disturbance. THAT recovery outlays can be ended by June 30, T.):!5, Is the belief of the President, and he gave expression to this when he announced an-nounced his approval of the bill extending the life of the Reconstruction Recon-struction Finance corporation for another year. He enjoined Jesse Jones, chairman of the R. F. C, not to withdraw more than $500,-000,000 $500,-000,000 from the treasury in the next fiscal year, except with prior Presidential approval. nUANS of the American Legion to ask congress for more liberal treatment of veterans have stirred up a row In Washington. The Le- gion is urging enactment en-actment of a four-point four-point program to cost $SO,000,000 a year. Gen. Frank T. Ilines, administrator adminis-trator of the veterans' vet-erans' bureau, thought this figure was too low, estimating esti-mating the cost at a considerably high- by Gen. Senjuro Hnyashi. Last October Oc-tober Araki declared in an interview that "if people believe the foreign policy toward the United States will change, they are absolutely wrong." It was then predicted that there would be a split in the cabinet, and this appears to have come, with the less warlike ministers, led by Hirota, Hi-rota, having the upper hand. Olrota told the diet at its opening that Japan "fervently desires American Amer-ican friendship" and added that no question exists between Japan and the United States that is intrinsically intrinsic-ally difficult of solution. Z"1 RAFT and favoritism have been rife in the use of CWA funds, according to the numerous complaints com-plaints that have been received by President Roosevelt and Administrator Adminis-trator Harry L. Hopkins, and audit of the books has been ordered in many localities. The unfortunate state of affairs was admitted by the President, who thus forestalled the revelation of the facts by congressional congres-sional committees or Republican organizations. At the same time he made it plain that he was standing stand-ing firmly behind Mr. Hopkins, the ousting of whom was tentatively planned by a group of house Democrats. Dem-ocrats. More than 4,000,000 persons were given jobs by the CWA and Mr. Roosevelt is asking for appropria tion of $350,000,000 to carry on the work to May 1; but he insists that the CWA organization be aban doned on that date according to his previous plan. Protests against this course, in congress and all over the country, have been nu merous and loud. It is now considered con-sidered likely that after May 1, continued employment for more than 2,000,000 of the CWA worker? will be found in seasonal employ ment, public works and a revival of industry. Senators Nye and Borah, who have been attacking the NRA on the ground that its codes fostered monopolies and tended to ruin small business concerns, won a con cession from Administrator John son. The general agreed to the es tablishment of a board of outstand ing citizens to which small manufacturers manu-facturers and other business men can bring their complaints of ruin ous operation of the codes. All the code authorities have been summoned to meet in Washington February 15 to consider code re visions. OSCAR DE PRIEST of Chicago, the only negro in congress, injected in-jected the race question into the house of representatives, to the Rainey. Mr. Eastman says the solo! so-lo! Inn he foresees would not be Inconsistent In-consistent with our theory of government. gov-ernment. Explaining that when governments govern-ments acquire private property they normally pay more than It Is worth, Mr. Eastman reaches the conclusion that the remedy should not be applied ap-plied to railroads now because the country Is not "lluancla My in a con-dilion con-dilion to stand the strain of an acquisition ac-quisition of these great properties." The coordinator, having set up what he wishes to be the objective of future national railroad policy, then proceeds to make recommendations recommenda-tions within the limit of existing laws. He Is decidedly skeptical of the Prince plan for consolidation of the roads, for his assistant, William II. Poland, has made studies that show the economies under this scheme would be less than one-third of the original estimates. Most significant of the recommendations recom-mendations on consolidations is that proposals for compulsory consolidations consolida-tions should be given a trial, provided pro-vided that the commission and the co-ordinator find the proposed mergers merg-ers to he In the public interest. Mr. Eastman throws the weight of his approval behind a method of compulsory consolidation through exchange of securities without the use of cash. Execution of such a method, which the co-ordinator's legal le-gal assistant, Leslie Craven, believes be-lieves can be accomplished, would accelerate the merging of eastern railroads Into the four systems previously agreed upon. Mr. Eastman says that reorganization reorgan-ization of railroads now bankrupt "should he effected as speedily as practicable, and in a manner which will result In a very material reduction re-duction in fixed charges." He calls attention to the fact that some of the most successful reorganizations reorgan-izations in railroad history took place in the midst of financial depressions. de-pressions. Wall Street theory has been that reorganizations should be postponed as long as possible. Many of the railroads' vital problems can be dealt with adequately ade-quately by the carriers themselves, but "there is as yet Insufficient organization or-ganization and leadership in the Industry for effective co-operation In such undertakings." It is quite possible, Mr. Eastman believes, that a study of these problems "will pave the way to a much larger use of motor mo-tor vehicles as an adjunct to railroad rail-road service, and to a revamping and simplification of the freight-rate freight-rate structure." CARLOS MENDIETA Is quite sat-isfactory sat-isfactory to the United States as president of Cuba in view of the fact that he has the backing of a er total. The Le-Gen. Le-Gen. F. T. gion representa-Hines representa-Hines tives declared the government estimates were erroneous erro-neous and by inference accused General Ilines of ulterior motives and lack of integrity. In a letter to Edward A. Hayes, commander of the Legion, Hines denounced the criticism of his estimates as wholly uncalled for and said the Legion's own rehabilitation committee had admitted they were more nearly correct than its own estimates. Meanwhile the President had announced an-nounced new modifications of his executive regulations concerning payments to disabled war veterans, the changes adding more than $21,-000,000 $21,-000,000 annually. There were intimations in-timations at the White House that Mr. Roosevelt would seek to persuade per-suade the Democrats In congress not to go beyond this liberalization. p RESIDENT ROOSEVELT'S 1 money bill went through the house with a rush, the vote being 300 to 40. Sixty-eight Republicans joined the obedient Democrats in supporting the measure. James R. Claiborne of Missouri and George B. Terrell of Texas were the only Democrats recorded in the negative. The senate received the bill and referred it to the banking and currency cur-rency committee, which held a hearing hear-ing that was lively while it lasted. Prof. George Warren, author of the dollar depreciation and gold purchase pur-chase program, explained to the committee the theory of commodity price regulation by manipulation of the currency. Then, taking up consideration con-sideration of the measure, the committee com-mittee heard the vigorous objections of Senators Glass, Gore and Mc-Adoo Mc-Adoo to several features of the bill, notably the proposed seizure of the federal reserve bank gold, and the granting of unlimited financial power pow-er to the secretary of the treasury. It was confidently predicted by the administration leaders that the bill would be put through the senate sen-ate unchanged, but stubborn fights over various proposed amendments were certain. The vote on a plan to limit the use of the $2,000,000,-000 $2,000,000,-000 stabilization fund was expected to be close. Advocates of the re-monetization re-monetization of silver, who are fairly fair-ly numerous In the senate, prepared a compromise silver plan to he offered of-fered as an amendment to the devaluation de-valuation measure. SENATOR HUEY P. LONG of Louisiana sustained another severe se-vere blow in the New Orleans Democratic Dem-ocratic mayoral primary, which Is equivalent to an great distress of Speaker Rainey and the other Democratic Demo-cratic leaders. Louis Morris, sercetary to Mr. De Priest, and his son were refused re-fused service in the grill of the house restaurant, the manager man-ager Informing them that this was majority of the Cuban Cu-ban people and ap pnrently is capable capa-ble of restoring order or-der in the island. So President Roosevelt Roose-velt Informed the diplomatic envoys of the other Latin-American Latin-American countries whom he had summoned sum-moned to the White x x x election. The "King-fish's" "King-fish's" candid ate, John Klorer, was soundly beaten by T. Semmes Walms-ley, Walms-ley, the present Incumbent In-cumbent and now one of Long's bitterest bit-terest foes. There was a third candidate candi-date and Walmsley r 4- tHl in accordance with ' his orders from p31" De Representative Priest Lindsay C. Warren of North Carolina, Caro-lina, Democrat, chairman of the committee on accounts which directs di-rects the affairs of the restaurant. Mr. De Priest, hearing of this, was exceedingly wroth and insisted on demanding a special investigation to determine by what authority the committee "controls and manages the conduct of the house restaurant, and by what authority said committee commit-tee or any members thereof issued and enforced rules or instructions whereby any citizen of the United States is discriminated against on account of race, color or creed." JOHN H. McCOOEY, for almost a quarter of a century the big Tammany boss of Brooklyn, died of heart disease, and his demise probably prob-ably means the end of Tammany's domination of the Democratic party In New York, at least for a time. It was expected that a leader satisfactory satis-factory to the supporters of President Presi-dent Roosevelt would be selected to succeed McCooey. Another once notable political leader passed away when Edward J. Brundage of Chicago committed suicide, presumably because of financial troubles. Highly respected as a lawyer and a man. he formerly for-merly was prominent in the Republican Re-publican party in Illinois and had been attorney general of the state by Western Newspaper Union. House. The PresI-dent PresI-dent virtually in- 'S vited the other na- Mend'eta tlons to take the same course, but made It clear that his mind was made up anyway. Next day Jefferson Jeffer-son Caffery, acting for the United States government, went to the state department In Havana aud handed to Secretary of State Cosine de la Torriente a document notifying notify-ing the Cubans that the United States was ready to resume dlplo-- dlplo-- matic relations. The Cubans went wild with joy and the 21-gun salute from the American warship Wyoming In the harbor was answered by salutes from the forts. Mr. Caffery will be our ambassador ambassa-dor to Cuba, and Manuel Marquez Sterling will be the Cuban ambassador ambas-sador to Washington. ; Recognition of the Mendieta regime came from practically all other nations. na-tions. President Roosevelt plans to do several favors to Cuba that should make Mendieta solid with his people. peo-ple. The warships In Cuban waters wa-ters will be withdrawn. The Piatt amendment to the Cuban constitution, consti-tution, permitting the United States did not obtain a clear majority, but T , 7" Klorer announced Walmsley that he would not force a run-off primary. His chief issue In the race was a drastic reduction In electric rates in New Orleans, and as the present city administration has promised to bring this about, Klorer Klor-er said he would take it at its word. The campaign for the nomination was exceedingly stormy with prospects pros-pects of violence that did not develop de-velop when the day came. Walms- |
