Show new bews s review 0 of current events news review of Cirr current rent events BRITISH MEXICAN diplomatic relations ruptured john W hanes named assistant secretary of the treasury fa 74 N P V F 4 k 0 7 s on the eve of national air mail week the first air mail and passenger er service between juneau and fairbanks alaska was established by the ran pan american airways as the first link in its route connecting southeastern alaska with the interior this photograph shows the scene at juneau as the plane a twin motored lockheed electra EI ectra was about to depart for fairbanks F F W alc 9 M summarizes THE WORLDS WEEK r tr 0 western newspaper union ministers are recalled degreat diplomatic relations between great britain and mexico were broken because of the dispute over medicos cos action in expropriating for i eign oil properties president lazaro I 1 cardenas of mexico took the initiative by recalling primo villa michel mexico minister at london and ordering the closing of the legation indefinitely the british government j promptly directed minister owen st S presed president nt clair to cardenas leave mexico together with his staff the legation being put in charge of consul gen J dalton murray while the suspension of relations is a direct outgrowth of the oil seizure the immediate cause of cardenas action was what he considered britaina Brit ains insolent methods in demanding a claims annuity of due since january 1 for damages to british interests in a revolution years ago foreign minister eduardo hay handed a check for the amount to minister told him of the recall of minister michel and said may I 1 be allowed however to call your excel lences attention to the fact that not even powerful states with ample resources at their disposal can boast of having fulfilled their monetary obligations J this of course was an allusion to britaina Brit ains repudiation of her war debt to the united states labor and political organizations in mexico lined up solidly in support of cardenas in the dispute the majority bloc in the chamber of deputies described the diplomatic break as absolutely justified viscount halifax british foreign secretary took up the mexican affair on his return from geneva an important factor in the situation is the consideration of britaina Brit ains oil supply if war should break out in europe when mexico seized the oil properties both great britain and nd ahe he united states protested but later secretary of state hull formally acknowledged medicos cos right to take the step britain however twice demanded prompt return of the properties mexico rejected the british contention all ar air mail week celebration C celebration ELE BRATION of national air mail week marking the twentieth year of the service opened when mrs roosevelt accepted for her husband a sheet of the new air mail stamps from the washington postmaster the anniversary was observed in many parts of the country a notable event being the first use in chicago of an autogiro to carry mail from the airport to the post office hanes in treasury post RESIDENT ROOSEVELT n nominated PRESIDENT prated john W hanes who has been a member of the securities and exchange commission less than five months to be assistant secretary 0 of f the treasury it is likely that before the end of 1938 mr hanes will succeed roswell ma gill as under secre tary of the treasury mr magill wh who 0 is on leave from columbia university is anxious to return to his old position it is J reported mr hanes hands may not assume his new duties until the reorganization of the new york stock exchange is completed he will be the first new deal assistant secretary of the treasury who has been identified with wall street investment banking when selected tor for the SEC he was a partner in the firm arm of C D barney co during his recent activities as liaison man between the administration and business he was looked on as the trouble shooter for the new deal with his wide knowledge of the securities business the new appointee will be of value to the treasury which faces important refinance ing operations in the near future fall of suchow near dispatches received in shang hal said the japanese forces arces were closing in on suchow great central china rail junction city and that its capture was momentarily expected thousands of chinese troops were believed to be trapped in that area with little chance to escape encirclement ot of suchow followed the cutting by japanese columns of the he funghai railway at which operations of the invaders had been directed for five months the japanese then pushed rapidly toward suchow taking the cities of lihsien and Siao hsien which were desperately defended gen count juichi commander of japanese forces in north china moved his headquarters to an undisclosed point somewhere south of neiping Pei ping assuming personal command of the final drive to crush chinese resistance in the suchow railway zone japanese naval forces occupied the important port city of amoy south china they also landed at the mouth of the min river M miles lles north of amoy but were driven back to their ships NLRB wins point bordered THE Tor HE united states supreme court ordered dered the circuit C court ourt of appeals at philadelphia to show cause why its orders against the national labor relations board in the republic steel company case should not be vacated the circuit court refused to permit the labor board to withdraw its case against the steel company for the purpose of instituting further proceedings and thus averting judicial scrutiny of its conduct the lower court also restrained the board from taking any further proceedings in the republic case pending the certification of the transcript of the record in another case involving the labor board the supreme court ruled that strikers do not lose their employee relationship three billion bill passed DY B Y A vote of to lo 70 the house hou se of representatives passed the presidents three billion dollar spending bill and sent it on to the senate this action came during a turbulent session A motion to send the bill back to committee so that state administration of relief might be substituted for federal supervision was defeated in addition to direct eions calling for the expenditure of 2 billion million dollars the measure carried authorizations to spend an additional millions of dollars making a total of 3 billion million dollars which may be spent by the administration in an endeavor to fight the depression the biggest fight came on a move to strike from the bill a section allowing states and municipalities to exceed their constitutional debt limitations this motion was defeated 90 to 86 the farm bloc put over two amendments one makes farmers eligible tor for relief whether or not they are found to be in need if they can prove they are out of work the other provides that farmers need not be in needy circumstances to benefit from free fertilizer provided by the league censures japan DR TIR V K wellington KOO A chinese delegate to the league of nations had better luck in the geneva sessions than did haile selassie once emperor of ethiopia or del mayo of spain the council finished its business by adopting a resolution condemning japan tor for its course in china and urging member nations to give direct aid to china georges bonnet french foreign minister advocated aid tor for china declaring that she had shown herself worthy of moral support and the worlds admiration viscount halifax british foreign secretary supported bonnet speaking tor for russia jacob sou ritz said he was sorry the resolution did not go fart farther ber chile announced that she was quitting the league la in order to avoid entanglement in european wars and venezuela and other latin american states let it be known that they were preparing to follow this example switzerland treed freed herself from article XVI of the league covenant which provides for application of economic pressure against members that resort to war woman ambassador THERE T HERE is a good chance that the united states will be reprise represented anted at moscow by a woman for mrs charles C broy is under consideration tor for the post of 3 american ambassador to soviet russia which joseph E davies recently relinquished V ed to become aa ambassador to belgium M mrs r s broy who is a texan by birth is the wife of an american I 1 foreign service officer and the wid mrs C C broy ow of represents Re presenta tive thomas U sisson of mississippi she was recommended tor for the ambassadorship by the chairmen of the foreign relations and foreign aff affairs airs committees of congress and has the backing of many prominent members of congress if appointed and confirmed she will be the first american woman to be an ambassador mrs broy was officially presented to secretary of state hull by senator key pittman but the secretary has known her personally for 18 16 years slattery has bests job ras D ES IGNATION of charles west t as undersecretary of the interior was accepted by president roosevelt elt and harry slattery of north carolina was immediately named in his place the retirement of west marks a complete victory for secretary ickes in their long feud only recently ickes dismissed all but one of bests office assistants and then turned the office over to assistant secretary ebert K burlew their feud began when the president named west to the post without consulting ickes white house secretary steve early announced the president was looking about tor for another post for west revenue bill enacted THE tact HE million dollar revenue act of 1938 as patched up by senate and house conferees was finally sent to the white house tor for the presidents signature the compromise measure retains a vestige of the undistributed profits tax enough to save the administrations face but the tax is limited to the calendar years 1938 and 1939 and it is expected to die then under the act corporations earning more than will pay a maximum rate of 19 per cent if no earnings are distributed in dividends and a minimum of 16 per cent if all earnings are distributed there is a credit of wi 2 per cent against the maximum tax on the amount of dividends paid I 1 11 ll rail wage cut announced RAILROADS RR of the nation and the railway ailway express agency served formal notice on chairmen of rail brotherhoods brothe of their intention to reduce basic rates of pay 15 per cent on july 1 the carriers through this action hope to reduce their annual payroll by approximately railroad workers are affected by the move the long anticipated announcement brought a defiant warning from the railway labor executives association that we will fight the action with every resource at our command oil production cut TEXAS EXAS and oklahoma the two major oil states of the nent reduced petroleum production drastically to prevent a price collapse in texas wells were ordered shut down on saturdays and sundays to effect a reduction of 1621 16 per cent oklahoma oil men were ordered to cut production during may barrels daily to barrels gov E W marland mariand ot of oklahoma said the states speedy action to stabilize production was removal of a possible threat of federal regulation this act proves marland mariand said that the states are capable of handling their own affairs insuring insuring farm mortgages mort g ages i INSURING of farm mortgages has been begun by the federal housing administration under steward mcdonald administrator amend ments to the national housing act passed in february permit the administrator to insure mortgage loans made on farms on which farm houses or other farm buildings are to be constructed or repaired provided at least 15 per cent of the loan proceeds is expended for materials and labor on buildings farmers who operate their own farms individuals who rent their farms to others and farm tenants and others who contemplate the purchase of farms are all eligible to borrow from approved institutions the maximum amount which may i be borrowed in relation to the apy ap y X i praised value of farm property is 90 per cent for loans of or less between 80 per cent and 90 per cent for loans from to and 80 per cent for loans exceeding an Hun garys new premier bof DELA ELA was made premier ij of hungary following the resignation of Dara daranyi and it was believed he would squelch the rapidly growing nazi move ment there he 1 l IS I S promptly introduced M S lev vf A in parliament two measures designed to stop all extremist agitation one would provide more drastic benalt penalties aleles e for disturbing public peace the other would tighten ten restrictions strict ions on the right of public as bela indred the new premier also announced a five point program for social and economic reconstruction which he said his government would push through without delay he said hun garys foreign policy would remain unchanged just before it stepped out the du danyl government put through the house of deputies an anti jewish bill and it was thought imredy would enforce its provisions if the upper house approves it slender clean shaven quick wit wil ted and a polished debater as well as an astute financier immedi speaks several languages and has a winning personality he has a wide range of interests including art and music he looks forty but is er afif fifty ty holocaust in atlanta aftel elire IRE destroyed the terminal ho tel in atlanta ga and at least 27 persons perished in the flames A dozen were injured and at this writing many others are missing the flames started with an explosion in the basement kitchen and spread rapidly collapse of the roof plunging debris through the charred floors floor sAo to the basement cut off hope tor for any who were trapped the hotel an old brick and frame structure had been remodeled in recent years it was situated near the center of the railroad yards about five blocks from the heart of the city hull not to resign OF STATE HULL S SECRETARY characterized as absurd and fantastic published reports that he would resign because of rumored dissatisfaction over president Roosevel ts recent statement praising the spirit of the italo british pact |