St. Louis Post-Dispatch from St. Louis, Missouri • Page 2

LOUIS P0ST-DISPATCH MARCH 20, 1934s ST.LOUIS POST-DISPATCH PAGE 2A' C0NHNEN Commission Says Code Fixes Steel Prices New Prize Tulip in Chrome Yellow ests of the consumers, unjustly TAL LIFE ENDS SUIT DEFENSE Letters Written by commissioners in Other States Read. "vUu ijiic wv. luuaj viuoca iia aeiense to suit of State Insurance Conxlk sioner O'Malley, who is asking t7 Circuit Judge Ryan dissolve jl in solvere-. Letters written by O'Malley In wine th filinc rt vi ma auir 3P jo.il uo.i jr tmu 6tm io insurance con uiiMiuuci a ox uuier siates, ujjo jji juvipai uujeci oi lEe suit to obtain control of the compan' from Mays because of his uis unai n. hibits introduced.

A letter by O'Malley Jan. 8 srw the affairs of the company Wfr, not in an "irreparable condition adding that "the principal thin l. to get Mays and his subservient rectors oui oi ine managemeat the company." A similar letter of Jan. 16 De appointed receiver and stte- mays ana tne airectors contnilec by him should be removed becaun of "gross mismanagement," so "sane methods of management mav De installed. Rebuttal witnesses for the It.

surance department will include Commissioner O'Malley, a Charles G. Revelle and James Carroll, former attorneys for the Con tinental Co. ANTI-FASCIST ROW IN TYROL By the Associated Press. INNSBRUCK, Austria, March A tense feeling Lctween Heia- wehr (Fascist Home Guard) fores I and the civil administration of thai Tyrolese capital arose today as ti result of what was described as Doaiiy attacK on trot, nans uan?" per, member of the provincial gov ernment in his own office. He wjil "slapped in the face until he broke I down" by a member ot the Heim wehr, provincial officials said.

Leaders of the Tyrolese Heia-wehr had denounced the reappointment of Gamper, whom they branded a representative of democratic corruption. They demanded his im mediate removal and said thev were stationed here "permanently until their demands were grantee I The Governor of the Tyrol orderesV'fr's police to occupy and protect the provincial headquarters. tity to be added to the basing prices for tool steeL The current average price of tool steel is about $2.45 per hundred pounds. The extras to be applied to the base price on ac count of quantity for small quantity purchases have been increased on the order of 400 per cent, and an average of such increases amounts to more per hundred pounds than the total of the base price. General Conclusions.

At the end of the report, the commission reached- the following general conclusions: "The question naturally arises whether this situation of enforced violation of the commission's order in the 'Pittsburgh plus case can be harmonized with the terms of the National Industrial Recovery Act and the powers therein conferred. "The National Industrial Recovery Act looked forward to the authorization of codes of fair competition. True, it conceived the possibility of such codes designedly authorizing practices hitherto forbidden by the anti-trust laws of the United States, but at the same time it sought to restrain the promulgation of codes that were designed to promote monopolies or operated to eliminate or oppress or discriminate against small enterprises. Furthermore, it expressly prohibited codes from permitting monopolies or monopolistic practices. "A distinct conflict of means and objectives exists between the provisions of the code and the commission's order in the 'Pittsburgh plus' case.

That conflict raises questions not only of legal import but of basic economic implication. "Departure from hitherto accepted policies of governmental concern over the maintenance of fair competition is, however, evident. Nevertheless, it has been assumed thus far that the departure has the sanction of a congressional mandate embodied in the National Industrial Recovery Act. The test of whether such sanction is actually present in that act can, of course, be submitted to the courts for determination. But other means for the solution of such an issue are also available.

The work under the National Industrial Recovery Act was conceived of as necessarily being largely experimental. The act itself provides not only for means to pursue effectively paths demonstrated to be sound and desirable, but also for means to withdraw from the enforcement of policies which evidence a tendency to attain ends regarded by the act those that our nation has MTSS SETTY WORTH and TULIPS. THE new tulip, called the Mrs. John T. Scheepers, is on display at the twenty-first International Flower Show, under auspices of HE on era stock Bill Redrafted by Federal Experts Modifies Marginal Requirements, Opposed by Wall Street.

By the Associated Press. WASHINGTON, March 20. A stock market control bill, rewritten in line with the administration's ideas, started on its way through Congress today. The new measure emerged last night from a committee of Federal experts. They had worked over it for a week in line with a presi dential admonition that it be "strong," but also shaped to assure congressional adoption.

Differences between congressional advocates of legislation and the Treasury and Federal Reserve Board were composed in the revised measure, Chairman Rayburn said today as the House Interstate Commerce Committee began hearings. Thomas Corcoran, counsel of the Reconstruction Corporation, and one of the drafters of the measure, added that the revised bill represented eight days and nights of work by the authors of the meas ure and the Federal Reserve and Treasury staffs, including mem bers of the staff of Ferdinand Pe-cora, Senate Banking Committee counsel. Pecora Satisfied With Bill. Rayburn told stock exchange representatives that "in the new draft of this bill we have tried to meet all legitimate criticisms' advanced during the hearings on the original bill. Pecora explained the bill to the Senate Banking Committee in executive session.

Chairman Fletch er said the revised measure as very decided improvement." Pecora indicated he was satisfied with the bill. One major alteration was made in the requirements on marginal trading, the Fletcher-Rayburn provisions on which drew heavy fire from Wall street. As in the original bill, a cash margin of 60 per cent would be necessary. But where the loan value of a stock in the original was limited to 40 per cent of the market value, or 80 per cent of the lowest price in three years, the Federal experts changed the latter to 100 per cent. Where the marginal require ments previously would have been made applicable on all outstanding brokers accounts and bank loans on securities on Oct.

1, 1934, the revised draft shifts this date to Jan. 1, 1939. The new proposals, however, would go into effect on all mar ginal transactions after Oct. 1, 1934. As another major change in the marginal trading section, the i.ew measure would place control of it in the Federal Reserve Board.

Despite objections from exchange officers, however, the new draft would place the Federal Trade Commission in charge of administration of the rest of the measure. Membership of the commission would be enlarged from five to sev en. The margin supervision shift was made in order to keep credit control in one agency. Other Provisions of Bill. The revised measure: Excludes banks making loans on securities from the previously pro posed definition of broker.

Puts burden of proof on the plaintiff in suits for recovery because ot misleading information, with the defendant required to show only good faith Permits brokers to be odd-lot dealers and allow specialists to be either broker or dealer exclusively, whereas the original bill excluded brokers as dealers and specialists from trading in their own accounts. Lifts the projected prohibition on dealing on exchanges in unlisted securities until March 1, 1935, on securities already so traded. Allows Federal Trade Commission to vary the originally strict requirements for frequent financial statements from corporations that list securities. Alters projected power for commission to suspend trading on any exchange for a period of emergency so as to make presidential approval necessary for such action. Limits imposition of rules to exchanges that have failed to adopt satisfactory rules.

Leaves short selling and stop loss orders to regulation of the commission without speciafically for- bidding them. Whitney Criticises Bill. Richard Whitney, president of the New York Stock Exchange, said in a statement the revised bill "does not meet the widespread objections presented to the Senate and-House committees." Whitney said the new bill contained "rigid and complicated margin requirements which will be either prohibitive or over-liberal depending on the course of prices." Although he conceded that giving the Federal Reserve Board control over credit flowing into the stock market instead of the Federal Trade Commission was an improvement, he added: "It is apparent from even a hasty reading of the new bill that its underlying purpose is to carry out the social theories of those who believe that the Federal Government should control not only credit and the operation of stock exchanges, but also all commerce and industry." ARNGS BEGIN MARKET MEASURE RAILROADS ACCEPT ROOSEVELT PLAN TOENDJAGE ROW Managers of Line Say They Are Willing to Continue Existing Pay Agreement to Jan. 1. PRESIDENT HAD CALLED FOR PEACE Wrote Employers and Employes He Felt Both Were Losing Sight of 'Good of the By the Associated Press.

WASHINGTON, March 20. Railroad managers today accepted the proposal of President Roosevelt to continue the existing wage agreement until next Jan. 1. The railway managers' notice of a 15 per cent cut in pay upon the expiration of the present agreement was withdrawn after President Roosevelt had repeated his request publicly for a continuation of the existing wage scale in the public interest. President Roosevelt had warned iailway employers and workers to settle their wage dispute and suggested a public commission to examine the controversy.

The President took this action shortly after railway employes had demanded a 20 per cent wage increase above what they are now getting, effective July 1. The workers acted in reply to notice given yesterday by the -ailway managers that they intended to impose another 5 per cent cut on July 1. The employes now are working for 10 per cent below their basic wage. Their demand today is for restoration of the 10 per cent and an additional 10 per cent increase. In a letter to the conferring railway executives and labor officials, the President repeated his proposal for a six months' extension of the present wage agreement.

Text of President's Letter. The text of the President's letter, addressed to W. F. Thiehoff, chairman of the Conference Committee of Managers, and A. F.

Whitney, chairman of the Railway Labor Executives Association, follows: "I have been advised of what has transpired at the conferences between the Conference Committee of Managers, representing the railroads, and the Railway Labor Executives' Association, representing the employes, which have been held in response to my communication of Feb. 14, 1934. "In that communication I ex pressed the hope 'that the railroads and their employes may be able to agree upon an extension of the present agreement for at least six expressing also my conviction that 'such an extension would be of advantage to those directly concerned, and also to the "It is a profound disappointment to learn that no progress toward an agreement has been made at the conference. I fear that sight is being lost of the most important factor of all, the good of the country. "If no agreement is reached, and in default of arbitration, it may be necessary for me, with due regard to the protection of the general public interest, to appoint a com mission to examine thoroughly into the labor controversy, covering all classes of railroad employment, in order that the country may be ad vised of the merits.

me reasons stated my communication of Feb. 14, I believe that conditions are not yet ripe for a wise settlement of these issues, and that the active prosecution of the controversy at the present time would have a most disturbing and unfortunate influence. Nor would a postponement be in general unfair to the employes. Some Increases Wanted. "Since I addressed my previous communication to you, however, the fact has been developed that some of the railroad employes are now receiving compensation for their work at rates which are be low minimums which have been established in the NRA codes, if not actually below a subsistence basis.

-xnis does not apply to any very large fraction of the employes, but nevertheless such a situation does exist. "io the extent that it exists, it should be corrected, and in this expression of opinion I feel confi dent that the railroad and the -adders of their securities will concur. "I am informed that the Federal Co-ordinator of Transportation now has in his possession the detailed facts in regard to this matter. It should be adjusted in connection with any postponement of the ma jor wage issue. "I shall be glad to extend to you the services of the Federal Co-ordinator of Transportation to help in composing your present differ ences, if that be desired.

For the good of the country, I strongly urge that further efforts be made to reach an agreement." Coarse of Demands. When the managers a few weeks ago gave notice of a new 5 per cent Teaucuon, President Roosevelt in- cucea tnem to withdraw It The managers agreed to this, and then proposed that the present 10 per DB continued to April 30, emninvM lot. 4 Continued From Page One. fails to file a satisfactory price, it may fix the price. "No seller can make deductions from the mill base price greater than the code authority may approve and every seller must add to the base price the minimum of ex tras (for quantity, quality, sizes, processing, etc.) required by the code authority.

Under the code provision any extra shall be uni form for all members of the "Prices charged must be for the delivered product and the charge for freight must be the amount of the freight from the basing point of the district, no matter from what point the goods are shipped." The "basing points" referred to are cities listed in the code from which freight charges shall be computed. There are various basing points for various products. How Little Fellow Is Hurt. The commission found that the charging of "imaginary freight rates penalized small enterprises not located at a basing point by re quiring them to charge the came amount for freight on deliveries in their immediate vicinities just as if the products had been in fact shipped from the basing points, which are usually where mills or large competitors are located. As an example of this discrimi- tion, the report cited the instance of a Duluth steel mill, which had to charge its local customers an "imaginary freight charge of $6.60 a ton the charge from Chicago, the basing point, to Duluth yet if it sold products to a customer in Chicago, it could not add the $6.60 charge to that bill.

In other words. Chicago mill could compete in the Duluth territory, but the Du luth mill could not compete in the Chicago territory. Commission Comment. Commenting on this point, the commission said: It is a conservative statement that the power to select, discontinue or increase the number of basing points involves the power of deciding what cities shall be hacdi- caped and what cities shall be bvilt up as centers for the remanufactare and processing of steel products. The Importance of such a purer over the future of communities can hardly be overstated.

The tendency is distinctly against what is commonly considered as desirable decentralization of industry." By stipulating that all-rail rates should be charged in computing freight rates, the code "has had ar-reaching repercussions on steel-using industries located on or near navigable water, on water transportation companies supplying 'hem, and on Federal Government waterway improvements," the commission found. Effect In Mississippi Valley. The report cited several examples of cities in the Mississippi Va'Iey which had already suffered from this discrimination. "Prior to the code," the report said, "towns and cities located on inland waterways in many instances received the benefits of cheap water transportation in the porchase of steel products. Important industries were established, mills nd factories were built, and labor concentrated at such points in the faith that the advantages of cheap wter transportation would be permanent.

To serve these industries steamboat and barge lines have been developed. The Federal Government has spent millions of dollars to im prove waterways used by these transportation agencies and to serve the industries and population of these numerous and important towns and cities. So far as s'eel products are concerned, the cod 3 re quirements for an all-rail formula deprives these interests dependent on inland waterways of a large share of, and in some cases all, the benefits of their location." St. Louis Protest Quoted. The report quoted from a protest by the Mississippi Valley Associa tion of St.

Louis against the "all- rail rate formula. The Valley Association said that the use of such rates was "inimical to the inter- SUIT TO HAVE MAN SOUGHT AS EMBEZZLER DECLARED DEAD Witness Says He Saw Alfred J. Nightingale in St. Louis Two Tears Ago. Testimony that Alfred J.

Nightingale, wanted by police since 1919 on a warrant charging embezzlement of $40,000 from the General Paper Stock had been in St. Louis as late as two years ago, was given today in Circuit Judge Beck's court, where a jury is being asked to determine whether Nightingale is legally dead. The witness was Richard Wagner, 3034A Columbia avenue, a maintenance man at the paper company, who knew Nightingale when he was employed there. Shortly after the death of Nightingale's wife in July, 1932, Wagner he was waiting for a street car at Grand boulevard and Arsenal street when Nightingale approached him and inquired about other employes of the company. Before Wagner boarded his street car, he said.

Nightingale told him: "Nobody wants to see me around here now." Wagner said he did not report the incident to the police, thinking it was none of his business. The case got into court through a suit filed by Thomas E. Mulvihill as executor of the estate of Mrs. Nightingale, against the Metropolitan Life Insurance in an effort to collect on a $5000 insurance policy on the life of Nightingale, on which his wife had paid premiums until her death. Decrease in Deaths From AlcohoL ALBANY, N.

March 20. Figures made public yesterday by the State Health Department indicate that deaths from alcoholism in New York State dropped to 3.1 per population during January, the lowest point in 12 years. eliminated all forms of transporta tion other than railroads from participating In valuable traffic and tended to destroy water carriers and port facilities." Similar protests were cited from Memphis and, Vicksburg. "Up to the very recent past ana so far as the Commission is in formed," the report continued, "no modification of the all-rail formula requirement has been made except as to pig iron in a very limited territory, and a partial allowance to purchasers taking delivery in their own trucks. "The pressure of adversely affected interests was so strong, however, that the traffic committee of the (Steei) institute recommended certain modifications.

Late in December it recommended that deductions from the all-rail delivery charge be permitted to specified Ohio and Mississippi River points. The deductions recommended ranged from $1 to $4 per ton on barge deliveries and from 75 cents to $2 per ton on rail deliveries. The only points to receive these allowances below Cincinnati were Louisville, Evansville, Cairo, St. Louis, Memphis, Helena, Vicksburg and New Orleans. All points between Cincinnati and Wheeling were to receive a specified deduction.

It was recommended that 'no deductions be made to interior territory beyond ports shown'." Argument and Its Answer. The Commission quoted at length from a resolution adopted by the hot rolled and cold rolled strip groups of the steel producers protesting against changes in the all- rail formula. These groups in a resolution said: "If water shipments can be sold at lower prices than rail shipments, it creates a hardship on inland mills by excluding them from business in which they have always partici pated; it creates a hardship on inland consumers by placing them in an unfair position as to the cost of their products; it creates a hard ship on inland communities by es tablishing preferential prices under which it is more desirable for com munities to be located on water ways; all of which is contrary to the spirit and letter of the code of fair competition for the industry. Commenting on this resolution, the Commission said observed: The position above taken i that by imposing equal hardships on communities located on waterways the hardships of the inland com munities are thereby removed. It also comprehends the theory that sectional advantages conferred upon buyers by nature should be nulli fied in order to insure identical delivered prices for the benefit of the seller." Benefit to Big Plants.

The commission found that the operation of the code had resulted in direct benefit to big industries and placed powerful manufacturers or groups of manufacturers in a position to compel the steel industry to discriminate in their favor. "The Detroit automobile manufacturers," the report said, "have forced the code authority to approve an arbitrary differential in favor of Southern Michigan of $3 to $5 a ton." The report also found that the code caused discrimination against important steel producing centers as the Mahoning Valley in Ohio (the Youngstown District). There- is also one serious result the authorized summary said which is due to determinations made under authority provided by the code but not, strictly speaking, under any requirement thereof. We refer to price increases which have tak en place since the code has been in effect and particularly to those price increases for extras which are imposed by the code authority. "These price increases for extras are directly traceable to action au thorized under the code and dis criminate particularly against pur chasers of small quantities.

This is illustrated by the 'extras for quan WATCHMAN KILLS BURGLAR Unidentified Man Shot in Store at Niangua, Mo. SPRINGFIELD, March 20. An unidentified man, -about 50 years old, was shot and killed late last night when, according to offi cers, he broke into a Niangua gro cery store, where a night watch man was sleeping. The watchman, Ira Clark, was awakened by a burglar alarm. He reported firing after the Intruder refused his order to surrender.

The victim, who fell dead after running 100 feet down the street, was clutch ing an open pocketknife. He was dressed in overalls, mackinaw, cap and old shoes; was of medium height, bald, and light complex- loned. FACTORY WORKMAN KILLED Emery Wheel Breaks and Fatally injures Machinist. Cleo Boles, 26 years old, a ma chinist employed at the St, Louis Screw Bolt 6900 North Broadway, was killed at 1 p. m.

today, when an emery wheel which he was shaping broke and fractured his skull. Boles' body was taken to City Morgue. He resided at 2330 avenue, Granite City. I www FRANCIS T. O'GRADY Food Specialties SPECIAL KINO OSCAR A AA Norwegian Sardines.

tins 9C 1-16 2 Una 15e HALFKBTY'S LITTLE NECK fSxTm. CLAMS, in (bell. 40 ox. tin 0C RAFFETTO SPICED PICKLE PEAKS. 12 oz.

Jar 4UC West Side of 10th Street BetwesR Olive and Locutt 3 1411 Long-Short-Wave List Price $89.50 iMH Allowance AlHfi Associated Press Photo. ors ana ine new iut. noum KILLS SELF WITH GAS Dr. David Simon Blondheim, Noted Authority on French, Ends Life. By the Associated Press.

BALTIMORE, March 20. Dr. Da vid Simon Blondheim of the faculty of the Johns Hopkins University since 1917 was found dead from gas in the kitchen of his apartnent here yesterday. Dr. John J.

Mor- rissey, District Coroner, gave a ver dict of suicide. Dr. Blondheim was 49 years old. His second wife, Mrs. Eleanor Blondheim, is a distinguished eoon omist connected with the research department of Bryn Mawr Co-l-ge.

A Negro maid, on entering the apartment to prepare dinner, found the kitchen door locked. Smelling escaping gas, she called the po.ice. Miss Grace Blondheim, a s'ster, said she knew of no reason for the suicide. Last month Dr. Blondheim re ceived word from New York i.hat he had failed to receive a bequest of $3000 under the will of an aunt because one of the requiren.ents was that at the time of her death he be either unmarried or married to a Jewess.

His wife was not a Jewess. Dr. Henry C. Lancaster, head of the French department at Johns Hopkins, said Dr. Blondheim was the "outstanding man in this coun try in the field of medieval French and French linguistics." Joining the faculty of Johns Hopkins as an associate professor of French, Dr.

Blondheim was promoted to the rank of full professor in 1924 and a short time later became profes sor of romance philology. He was awarded a fellowship in 1926 by the John Simon Guggenheim Memorial Foundation, for the purpose of gathering material for a series of works on the use of the romance language among the Jews of the middle ages. Earlier he had received an award of 1000 francs from the division of the French Institute at Paris known as the Academie des Inscrip tions et Belles Lettres, in recogni tion of the publishing of his book, "Les Parlers Judeo-Romans et la Vetus Latina." He was the first American tc receive a prize "rom that institution. POLICE ARREST 48 DRIVERS WITHOUT 1934 LICENSES Motorists Driving to and From Work Will Not Be Molested Until Monday. The first arrests for failure to have 1934 motor vehicle licenses oc cur red today, when police booked 48 motorists, who were found operating cars with 1933 tags and stick ers.

Acting Chief of Police McCarthy earlier in the day announced that arrests would be made daily between noon and 2 p. m. until next Monday, when the final diive against delinquent motorists begins The mid-day arrest period will enable motorists with 1933 license tags to get to and from work un molested, and also gives them addi tional time to acquire a new ii cense. Responsible persons picked up for not having 1934 State tags will be permitted to sign a bond for their release. Drivers without city stickers will be given a police court summons.

House Votes for Inquiry on Nazis. By the Associated Press. WASHINGTON, March 20. A congressional investigation of Nazi propaganda activities in the United States was authorized todav bv th I rxouse, to U. JOHNS HOPKINS MAN miinimm aaS8w 1 i mr-TTn in-nn nn nwriiinnnr.iiiininrmnniinfiifirriririfi ifi.iinflnirrii-r'riMfrnTlTh iViiinn iriVi'iTiif'ri- the Horticultural society or new Club in New York this week.

ROOSEVELT CALLS IN LEADERS OF AUTO INDUSTRY Continued From Page One. morning. This delegation was headed by Alfred P. Sloan Jr. of General Motors, Walter P.

Chrysler and Alvan MacAuley of the Packard Motor Car Co. MacAuley is president of the Chamber board, which acts as the code authority of the industry. The delegation left Gen. Johnson's quarters in the Waldorf-Astoria giving every indication that the deadlock was unbroken, although no member would make a public statement. Apparently no announcement was made the manufacturers and the General were discussing the compromise proposals which he had advanced in the hope of averting the general automobile strike set for 9 a.

m. tomorrow. The Chamber announcement of the plan to go to Washington tonight was issued after the boaid of directors had been in session rmore than five hours. Johnson's Proposals. When the key men of the industry went into session today, they had before them for consideration plan of settlement proposed by Johnson.

This proposal for a three-point truce is, in effect: 1. Cessation of strike prepara tions. 2. An impartial board of review to hear complaints of discrimina tion against unionists. 3.

A possible vote of the workers to decide whether they want the A. F. of or company unions to represent them. I he demands of the unions in clude a plebiscite of workers on the company union issue and reinstate ment of men alleged to have been dismissed for union activity. The N.

A. C. C. has refused to deal with the American Federation of Labor, declaring it is "trying to get control of this industry." Preparing for Strike. Preparations for the strike, which might affect plants employing 000 persons, are going forward.

Em ployes of more plants have voted to strike tomorrow, adding to the list of walkout votes previously record ed. Another 2500 employes of the Chevrolet Motor Co. in Flint, votde last night to join the strike. Union officers said this brought the total in that plant to 9000. Eight hundred workers in Fisher Bndv plant No.

2 in Flint also votad to join the strike, leaders said. Labor men in Pontiac. said that 13,954 workers were reay to walk out there Other plants in which union workers have voted to go out include Hudson, Detroit; Fisher Body No. 1, Flint; Fisher Body, Lansing; American Forging and Socket, Pontiac; Motor Prod ucts Corporation, Detroit. Austria Approves U.

S. Envoy VIEJJNA, March 20. The Austri an Government today approved the nomination of George S. Messer- smith. United States Consul-General in Berlin, to succeed George H.

Carle as United States Minister to Austria. Messersmith previously had been named Minister to Uru guay. Earle recently resigned from the diplomatic service to run for Governor in Pennsylvania. The 10 per cent reduction has been in effect since 1932. The railways yesterday renewed their demand for a 15 per cnt reduction in basic wages on July 1.

Railway labor then demanded that "basic rates be restored on July 1, 1934, in keeping with the terms of the existing agreement. Now they want a 10 per cent rise on the basic pay. Mr. Roosevelt was assured late today by Thiehoff that his group would agree to the chief executive's proposal to confer with the railroad labor 'group to settle the dispute over wages. He sad he would get in touch immediately vith Whitney.

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