Show news review of current Currel lt events the world over supreme rne court finds AAA unconstitutional demo brats pick philadelphia for convention B bonus onus measure Is pushed Th through house T by EDWARD W PICKARD li Q western newspaper union m justices of the united states s SIX supreme court including chief justice hughes joined in nn an opinion that killed the agricultural adjustment net act three associate justices stone brandeis andels Br and cardozo dissented the majority decision read by associate chate justice owen J roberts held th that at the AAA was wholly unconstitutional because it invaded the rights or of the states in chief justice seeking to control hughes farm production the whole system of processing taxes imposed to finance the program was swept into discard not only tire are the processing taxes illegal but the court apparently declared the farm benefit contracts void and put up bars against a any ily attempt of the federal government to regulate farm production by whatever means senators and representatives who immediately began planning legislation to fo continue benefit payments to farmers and to balance agricultural output did not seem to grasp the full significance of this part of the decision tile the court said flatly that regulation of farm production Is not within the scope of the federal government arid and of its powers to accomplish fills this nor noc can it purchase adherence to a control scheme by federal payments I 1 the decision destroyed not only the original AAA but also the amended act of the last session of congress the dissenting dissenting opinion held that the AAA was a legitimate employment oi of tile the power to tax for the general welfare it attacked the theory that the preservation of our institutions is the exclusive concern I 1 of the supreme court and suggested that under the majority decision the unemployment work relief act Is unconstitutional AAA administrator chester davis stopped all payments to farmers until further notice and the treasury department ordered all collectors of internal revenue to desist from further efforts to collect processing taxes in his budget message president roosevelt included revenue from processing taxes so the supreme court decision had the effect of throwing the 1037 1937 budget still further out ot of balance by something like a billion dollars YN N HIS speech at the 30 50 a plate A jackson day dinner in washing tafv president roosevelt declined to comment on the supreme court decision killing the AAA it Is enough to say he said that the attainment of justice and prosperity for american agriculture remains an hunted late and constant objective of wy my administration secretary wallace called into consultation at washington about representatives of farm org min izat ions to try to formulate some plan for speedy legislation to supplant the discredited law daiv assurance that farmers who have fulfilled contract agreements would be paid was given by president roosevelt when lie he advised administration leaders in congress to push through a appropriation clarification of the status of paid in taxes by processors was expected when ben tile the i court decides the eight rice processing tax cases argued recently legal experts in congress said an act of congress would be required it if the in processing taxes paid into the treasury are to he be refunded disposition of the processing taxes I 1 impounded in federal courts probably will hinge on decision in the rice cases A off to the highest bidder the democratic national convention of was sold to philadelphia by the bartys national committee the price was plus some prizes and concessions chicago and san francisco also bid for the convention the former offered a certified check for tile the california city made the same bid and later raised it to during a brief recess chairman parley farley telephoned presumably to tile white house and vice president garner moved among members ers of the committee urging the selection of philadelphia therefore the city of brotherly love won the prize the opening of the lie convention was set for june 23 two weeks after tile the republican convention in cleveland NO Nth 0 was lost in putting through rough the house the bonus measure that thai had been agreed upon by veterans organizations and approved by the ways and means committee it carrie the name of the vanson patman mc cormack Corr nack bill and Is a compromise that authorizes immediate payment of the bonus but offers no definite plan for raising the money it would provide 3 per cent interest until 1945 for veterans veter lins retraining refraining from cashing their adjusted service certificates at once and cancel all interest still aue due on loans on the certificates ates WITH ITH the obvious intention of building up public sent sentiment linen t in favor of the special brand of neutrality legislation lie he desires senator nye nyc it biad before his senate munitions committee I 1 I 1 for several F 4 days J P morgan thomas thom as AN la mont a n nd d other members of the i great M morgan 0 r g a n 1 banking company nye and stephen A ln in J P morgan vesti gator or the committee sought to prove that the knifed states was drawn into the world war by the loans made to the allies by mor morgan moran an co and its associates the testimony ony concerning these loans and their implications was nas long and complicated the financiers were well prepared for the inquiry and were armed with a great quantity of documents and though there was a good deal of acrimonious talk sir mr morgan appeared entirely unperturbed W HEN the delegates to the naval conference in london resumed their deliberations admiral osam i chief representative of japan firmly repeated ills his demand that great britain and the united states concede the parity claims of japan as preliminary to any agreement this attitude stopped all discussion of the british french anti and italian proposal for exchange of information about naval building plans and threatened the conference with early collapse the crisis was so serious that hat foreign foreia n secretary anthony I 1 iden dell himself took took a part in the affair calling the japanese to ills his ollice office in an attempt to induce them to adopt a more conciliatory attitude japanese spokesmen declared they were interested first and last in tile total tonnage question under which they demand equality and were not at all interested in other aspects of naval limitations to which the conference sought to turn S CUR ROUNDED by alleg lights 1 and movie cameras president roosevelt stood before the senate aal house in night joint session and delivered what was nominally his annual message on the state of the nation actually it was not that at all but a statement concerning I 1 the welfare a and n d international disturbances on the other continents followed by what president the press generally roosevelt oo considered an elo clo quent ind and militant political speech addressed to the people of the united states who by the millions were listening in on their radios democrats and republicans alike commended the presidents opening paragraph in which lie he boldy boldly condemned the aggression of italy and japan though without naming those nations and there was little dissent from ills his a assertion sert lon that the united states must maintain its neutrality while seeking to discourage the use by belligerent nations of f any and all american products calculated to facilitate tile the prosecution of a war in quantities over and above our normal exports to them in time of peace the remainder of the message devoted to domestic affairs was a d devoted chiefly to a belligerently worded defense of the new deal mea sules of the administration an attack on those who oppose them and a spirited passage in which mr roosevelt defied and dared his critics to move for the repeal of those measures instead of hiding ding their dissent in a cowardly clo cloak ik of generality era lity in only two paragraphs did tile president dwell on the state of the nation in these ho be said that after nearly three years of the new deal national income is increasing agriculture and industry are arc returning to full activity and we approach a balance of the national budget that last statement was greeted with mocking laughter from tile the republican side of the chamber and though the democrats cheered loudly mr himself smiled at hla his words T II the lie rainy season that will cheek liis his campaign I 1 Is ci fast mussolini continued to tn send freh troops by the thousands to tn ethiopia it was estimated that it italis ilys ewt cast aan kriplean biln forces already numbered more than ane 20 00 W and there were reports stint more would he sent in tile the near future the ethiopian government accusing italy of continued employment of poison gas as in a policy of merciless of the ethiopian people urged the league of nations to dispatch a commission of inquiry to the scene of strife league officials announced that the request would he be handled by the league council which meets january 20 SECRETARY S of labor frances perkins found in the developments of the last year much of benefit for the american workingman in her annual report she fahe cited these five great id ad van cements for la ill bor 1 unemployment compensation accomplished complis hed lied through V the social security act 2 old are age security brought about also by the social security act secretary 3 establishment perkins of boards for settling industrial disputes als locally 4 greater operation cooperation co between the states and the labor department through regional conferences 5 development of tile the united states employment service even the large number of strikes during 1935 could be viewed with some satisfaction by her for she said they were due in part to the natural expectation of labor to share in the early fruits of business improvement for the future miss perkins envisioned a minimum wage law a short work week of perhaps 40 hours compensation insurance anti and strict regulation of machinery to prevent industrial accidents I 1 IN N HIS message to congress submitting his approved budget for the 1937 fiscal year beginning july 1 1 next president roosevelt followed the double system of accounting his administration has always employed one set of books for regular expenditures tures and income and another set for emergency spending and appropriations he asserted that receipts from all sources in the next fiscal year will aggregate an estimated expenditures for all regular government departments are estimated at so the regular budget will be in balance with a surplus of but the message went on to say after explaining that the regular government books will show fiscal affairs in the black as to income and outgo they will show red to tile the extent of in works relief spending less the surplus this leaving the new appropriation for further works work s relief open for it at least two months that figure of represents the presidents estimate of unexpended balances on july strom the and pre previous Ious emergency appropriations it does not take into account probable new appropriations for similar purposes yet to be determined H HAROLD AROLD L ICKES in his capacity of administrator of the went to brooklyn to take part in the ceremony of breaking ground for the 12 hiir wa williamsburg 11 slum blum c clearance 1 e a r project and 1 A 1 1 4 took the opportunity to speak very harshly about those e who oppose tile new deal dubbing then them the coupon clipping III n g gen gentry tra tile the lord of the club aln windows harold L and deac ickes zionists who shout that enlightened progress ress Is unconstitutional the slum is but one vicious product of that old order whose passing we liopo hope Is at hand mr ickes said 1 I refer to tile the old order of special privilege the creator and upholder of a social system containing vicious contrasts of opulence and squalor that have shamed the democracy of ou our r own times its day in america is facing tl the sun but the harsh crack lings of its senile prophets ate ae still heard in opposition to every Ir progressive ogre alve proposal predicting disaster for every humanitarian attempt to ameliorate tile the lot of the least fortunate of our people there art are those who take an almost sadistic delight in ili dashing the hopes of our underprivileged citizens by ill advisedly proclaiming that the public housing program of Is a failure the facts prove tile the contrary somewhere a housing program had to be started the federal government took the initiative we have 47 active projects on our demonstration program all under construction eleven thousand persons are already alre ady enjoying the splendid modern accommodations of 0 limited dividend housing projects Project A financed by and ana the first fed cral developments will be occupied early in the |