The Pittsburgh Press from Pittsburgh, Pennsylvania • Page 2

TWO Want Ad Headquarters, Court 4900 Other Press Departments, Court 7200 TUESDAY, 20. TIIE PITTSBURGH PRLIS. General Johnson's Column Queen Margaret Chosen to Rule at Carnegie Tech Spring Carnival Clapper's Column Norris Wants Direct Vote on Amendments Nebrasko Senator, Whose Proposed Constitutional Changes Generally Seeks to Speed Changes Will MacArthur Have 'Peacock' Army Suit? Field Marshal of Philippines (a New Title) Permitted to Design His Own Uniforms I Mf i mMt A 1 6 e'H-r- fev ft? mi i 0 By HUGH S. JOHNSON XTEW YORK, April 20 According to a recent Army order, tr the General of the Armies (Pershing), the Chief of Staff Mlg)' Field Marshal of the Philippine Islands (MacArthur), may design and prescribe their own uniforms. This country has always seemed opposed to exalted military rank and fuss and feathers.

The highest grade ever By RAYMOND CLATTER WASHINGTON, April 20 The most futile occupation in Congress, and that is saying a mouthful, is that of proposing constitutional amendments. Wastebajjkets around the Capitol are full of constitutional amendments, bound for the furnace fire. But when Senator Norris of Nebraska offers one, even though he springs it on a balmy day when the Senators and Representatives are out at the ball game, that is different. He has a reputation in that line. Even Washington.

Grant and permitted is that of General Pershing shal. Th. "General innovat ion were never considered u.i'- given Pf e. the is Chance for Skullduggery Lois Horner, president of Woman's Scholarship Organization, and right. Jane Tiernan, secretary of Tech student council.

Misses Fitzgerald and Horner are residents of Pittsburgh and Miss Tiernan of Sewickley. Queen Margaret yesterday smiled at her "subjects" at Carnegie Tech. Named by vote of the entire student body, Margaret Fitzgerald, vice-president of the Senate of Margaret Morrison College, was named to rule over the annual Spring carnival. Her coronation was set for May 13. Seen with her are her Maids of Honor.

Left, STORM OF OPPOSITION hits liquor program TAX ON CHAINS MEETSJEFEAT Bill Dies in Committee by Vote of 8 to 7 Control Board's Proposal Faces Drastic Revision 'Too Much Power' Is Senators' Contention the editorial, "Meritorious Changes," on rage l'f. Pol to The Pittshurgh Press HARRISBURG. April 20-Liquor legislative tempest, for the rank of Field Mar- British trench raid and captured himself a German colonel. By incredible fighting and marching lie almost beat the French to the capture of Sedan. I haven't before me the exact wording of his citation for the Distinguished Service Cross, but it was something like this: "On a field where gallantry was the rule his gallantry was the most conspicuous." Leaves High Mark A2 ND it.

was. There was tine Brigadier whose P. C. (Post Command i was always in the first vne across the top one General v. ho will not die in bed if there is half a chance to die elsewhere.

He adds great ability to perfect alia ry and as superintendent of West Point and Chief of Staff. Wt his blight mark on the whole Army. No this piece isn't intended a.s critical of Douglas it is just wondering what that uniform will look like. A distinguished predecessor of MacArthur's, the first professional American humorist. Captain Derby of the Engineer Corps i John Phoenix) once designed one and nearly got court-martialed for it.

It was eminently practical. The right epaulette could also be used for a. hair brush and the left for a shoe brush. The helmet was really an inverted stew pot. The pompon could be bent over to make a handle.

I have forgotten all the derails but I remember that the sergeants carried a wand like a bishop's crook and the privates all had a ring in the back of their belts. The idea was that the sergeants could keep the men in line by hooking them from behind. It's a cinch that the self -ore-scribed uniform of the Field Marshal of the islands won't be like that. Douglas once spent some time in Austria and that lias always been the home of peacock soldier clothes. I'll bet the Field Marshal will burst forth in a pelisse, dolman and saber-tache a red uniform with flame color trim and this his special orders will require of him on all occasions, the irksome duty of wearing all his medals.

He only has half a ton of them. Events Behind the News The State Liquor Control Board's program hit With a wave of his hand, Sen- ator Norris pried the Nebraska farmers away from their old-style two-mule i lature and substituted a stream-lined one-house system. With only a little more effort he changed the Federal Constitution to abolish lame-duck sessions of -gress and he changed the Mr. Clapper inauguration date from March to January, thereby clipping several weeks off President Roosevelt's first term. When you take anything away from Mr.

Roosevelt you have to be good. Thus the impression is abroad in Washington that when Senator Norris seizes a Constitutional amendment by the tail and begins to swing it around, something is apt to happen. Direct Ratification THE latest Norris idea is that Constitutional amendments shall be ratified, not by state legislatures which are frequently being seduced by lobbyists, nor by state conventions, but by direct popular vote. Congress would submit proposed amendments by the customary two-thirds vote. The question would go on the ballot in each state at the next General Election, unless the election was less than 60 days away, in which case it would go over until the following election to insure time for adequate public discussion.

A majority of those voting on the question would be sufficient to complete ratification in each state. Approval by three-fourths of the states, as now, would be required. This proposal has no immediate direct bearing on the Roosevelt Supreme Court fight. That was an emergency effort to wring intelligent decision out of a court which for a time let itself be cut off from the procession of contemporary life. Senator Norris Is suggesting a gateway amendment which has implications reaching considerably beyond the Roosevelt plan.

--b. FrnT, i hp World wa r. no nffirr-r hold tiv ran War to the Oi General a n. Sheridan ana Douglas Mar-Arthur's fi ther wer only lu i-tenant generals. Tiif rank of i-f)5 revived in 1913 and confr-iTed upon Pf-rshrriK for life and March Tirvd chief only as ca pa cit tirneral Johnson of Staff.

Any now a t- rrral it. he is acting in thai 'Fast' One Putts TO. WE cin' to like px- alted ntfi'jarv faniare. But mv I.iir:,is MacArthur put one ovi-r. As a personal frind of the brilliant Manuel Quezon, president of the new Philippine (i'i'i'ninicnt 1 to close frirndsi.

he tot himself loaned to the common- wraitn mi adrruriist ra tor. self named lv. Field MarMttd going to own uniform. ary and Then he got, government. And no.v he is i and preMTiix5 his If as much imagination in fixing his own rt'le the great ir.ilrarv clo.v-ic pa-', i' is F-P- I am not casting in th- d.ieitir:n of is one of ill" mnvt in M-rv know the name of 1 f.

lie (': id in that of ernes of onr o- to be a "persions lie brilliant men He doesn't In Pirns-expedition, he tons era Cruz r.upiirateu a at pcriormeci lor Win field Pro by Robert E. Iee scouted around behind th." whole Mexican position disguise just about the most perilous stunt irr.aeir.ablf. Sent to France on an educational trip before our troops got there, he volunteered to join a Current A Column of News Bill to "Forgive" Loans F-'rii. i lit. to ryire" from the RFC in lii.Vi nifj l'j: Mith.j loans The ashington Merry -Go-Round ha? i tfrp Hnute nt received by cities and cottnties H' IS proposing to amend the Constitution by direct popu lar referendum.

Many believe the Constitution is too difficult to amend. They know that state legislatures are notoriously whipped around by lobbyists. When two-thirds of both Houses are needed to ratify, there is large opportunity for back-room skullduggery. Every state except Delaware and New Hampshire amends its own Constitution by popular referendum. Why not.

Senator Norris asks, trust the same voters to pass on amendments to the Federal Constitution also? If popular polls offer any indication, the child labor amendment would have been saved if it had been submitted to a direct vote instead of to easily-cowed legislatures. When a Constitution is difficult to amend, you find it circumvented by indirection. For instance, it is easier to ignore the electoral college than to abolish it. So we ignore it. The Norris proposal not only would speed up the decision on Constitutional amendments by forcing a vote Instead of allowing legislatures to duck for years or forever, but it would do something more.

It would bring the voters and their Federal Constitution closer together. It would mean more direct democracy, and aid In a revival of direct popular participation such as developed during the old progressive movements of 25 years ago with the spread of initiative and referendum in state affairs. President Roosevelt said recently that it was of great importance to the future of democracy "that ways and means be devised to engage the maximum number of young people and adults in a continuous, fearless, and free discussion and study of public affairs." There is the objection to the Norris amendment that the people ought not be allowed to get their hands so near anyhing as sacred as the Constitution. Many in the United States still are afraid of democracy. Sometimes mistakes are made.

Yet if in this country, where Intelligence and popular education are higher than in any other large nation, a majority of the voters In three-fourths of the states can't be trusted to give the right answers most of the time, then what we need is not a Constitution but a bright dictator to do our thinking for us. As a result of the whole incident, the Administration is pursuing a policy of "watchful waiting" on monetary matters. There are a lot of rumors on Wall Street that Roosevelt will re-valuate the dollar, cut the price of gold, and bar the flood of yellow metal arriving in New York by almost every steamer. But inside word is that for the time being he will do nothing. Admirer AFTER weeks of man-to-man negotiations, Walter Chrysler thinks John L.

Lewis is okay. The motor magnate is telling friends he Is ready to do business with the CIO leader any time. "Lewis is a man of his word," Chrysler says. "I respect and admire him very much." Merry-Go-Rcund THERE is nothing modest about Dr. Francis E.

Townsend. He has issued a call to his followers to "lend" him $5,000,000 to finance a great campaign to put over his old-age pension scheme. Each subscriber to the fund will receive a personal note from Townsend payable in two years with four per cent per annum interest. Rev. W.

A. Sullivan, pastor of the First Baptist Church of Natchez, received a letter from Sen-tor (The Man Bilbo the other day that he will remember a long time. Following Senator Carter Glass' scorching radio attack on the President's court plan, Sullivan wrote Bilbo denouncing him for supporting the proposal. Bilbo retorted with a three-page letter in which he took the hide off both Glass and the preacher. Labor circles are up in arms over a provision in the model state social security bills being distributed to legislatures by the Social Security Board, which would deprive workers of the right to collect unemployment insurance while on strike.

A provision similar to this was stricken out of the Social Security Act when before Congress, but the board, notwithstanding this action, is recommending to the states that they write such a restriction into their laws. Two states, Pennsylvania and Arirona, not only refused to heM the board's advice but wrote pvo is ions into their social security laws specifically providing that strikers should receive unemployment insurance benefits. (Corynfht. 163T) THIRTY-TWO cities and counties in the states of Illinois, Michigan, New York, North Dakota, Ohio and Wash-ton may shortly receive from the Government of the United States a tidy "gift" of Sl9.000.000. The gift would be made partly in cash and partly through cancellation of indebtedness owed to the Government at Washington.

Nineteen millions is "pocket change" compared to the huge sums cities and counties in these and other states will have to tin, to care for By DREW PEARSON and ROBERT S. ALLEN WASHINGTON Latest line going the rounds of Washington: "We are under a Constitution, but the Constitution is what Justice Roberts says it is." Behind the scenes, some very brisk talk has been addressed to Federal Reserve Chairman Marriner Eccles as a result of the sharp slump in Government bonds. There has been a lot of talk in Wall Street about the mysterious reason for this slump, but there is no mystery about it. It was due primarily FOOTBALL PUTS HIM IN BUSINESS I Pitt Won, So Tom Coyne Seeks to Operate Restaurant Fortunes have changed hands with trembled at the roll of dice. Tom Coyne became a restaurateur on the result of a football game.

That was the story he outlined today to an examiner for the State Liquor Control Board, when his right to sell liquor was questioned. The brother of former State Senator James J. Coyne explained that had it not been for the 26-0 traunc-ing the Pitt Panther handed Notre Dame at the Stadium last tall, he never would have learned the secrets of the hash-slinging profession. Didn't Mention Arrests Brought before Special Deputy i Atty. Gen.

Bruce A. Sciotto to ex-l nlain n-hv hf nmitted mention of a few arrests from his application for a liquor license, the former senior partner of the "Three Toms" told how he acquired his restaurant i i -r i 1 A ft Xf cafe, lost $300 on the Pitt-Notre Dame game. Coyne said, then "went on a drunk." "He wasn't feeling so good," Mr. Coyne went on. "and because of this I told him I would take over his restaurant and run it until he came back.

Well, he never came back. He's still in the hospital. I've taken $3 0a week from the receipts as my wages and turned the rest over to him. Now, I've decided to take it over permanently, if I can get a liquor license." Receipts Have Gained Receipts have increased from $30 to $80 a day under his manage ment, Coyne said, adding, "I get along so nice with the people up there: they like me and I like them." The revenue is derived equally from liquor and food, he said, in answer to the board's expressed suspicion that the establishment is not a "bona fide restaurant operated for the sole purpose of serving food." Investigator John H. Bream, on a visit April 1, said he found lew dishes and "very little food." "I've ordered new dishes and silverware," Coyne countered.

Examiner Sciotto then turned his attention to Coyne's failure to enumerate arrests in his application a liquor license. Only one. involving a gambling charge in February, 1931. was listed and the applicant added that he was exonerated of this charge "by Judge Marshall." At least five other arrests were omitted, the investigator said. Variety of Charges These included alleged offenses in 1932.

1933. 1934 and 1935, charges ranging from embracery and conspiracy, to gambling and election fraud. The "Three Toms" Coyne, Goslin and Dolan were the major figures arrested in January, 1933, in State Police raid on the "raid-proof" oMnaca Club, luxurious oasis and glambling resort which flourished for months across Forbes St. from the Oakland Police Station. Goslin and Dolan served time on the gambling charge, but Coyne's conviction was reversed, on appeal, the State Superior Court in an opinion written by Chief Justice By Beck WVA nj -i 77.ii jfi I a ii I i i rl PROLONGING THS AGONY life.

mm a ft? A i I legislation today ran afoul of a a sudden gale of of five requests, filed by the Board with the courts, for revocation of licenses due to alleged violations of the law had been unsuccessful, and that the courts had overruled three of every four refusals of the Board to renew licenses for similar reasons. This situation, it was said, accounted for the proposed centralization of power in the Board. Request Opposed Senator Cavalcante said he opposed the Board's request for control over the activities of liquor dealers beyond the dispensing of liquor. There is a major controversy in Hot Hronr'Hoc of tVio cti clo tut-a over the Board's proposal to issue 1 I i VI 1 .1 A 111', MClumVUl I package kage retail" licenses to groceries i and delicatessens for sale of beer in lots not exceeding six bottles. Sale of less than case (.24 bottles) lots is now forbidden.

Many of the amendments in the liquor law were aimed at "one-man clubs." The House State Boards Committee last week amended the Civil Service bill for Liquor Board em- ployes by striking out protection for all members of the supervisory staffs and reducing minimum pay stand ards. The bill last night was given one of the three required preliminary readings and sent back to committee. Although Representative L. Kenneth Harkins, Munhall. Democrat, and sponsor of the bill, said he honed to bring the bill back to the House floor after additional study by the committee, it was made ap parent that the bill stands slim chance of again emerging from the committee.

THOMAS COYNE His riht to sell liquor questioned legally, Mr. Coyne explained today it was purely by chance that he entered the restaurant business, at a hearing before an examiner for the State Liquor Control Board. SPRING ARRIVES, BUT KEEP THAT COAT The baseball and mothball season began simultaneously today as balmy breezes wafted hither and fro, sunbeams sparkled on the three rivers and your next-door neighbor woke you up (the pest!) at 6 a. m. with his putterings about his scrimpy little lawn.

Half the citizenry were walking about, minus overcoats and wraps, enthusiastically hailing all and sundry with gleeful yelps about the saiuDrious weatner tne otner nan. unduly suspicious, carried their outer garments with them, as they sntfTed the air for a sign of a din in temperature, and predicted the Cubs would sink the Pirates. But, just to play safe, delay the annual rite of distributing mothballs in the overcoat and hanging it up for the summer. "Cooler tonight, croaks the weatherman, the kill-Joy 1 SEEKS LIQUOR PERMIT I I If H- us. vy Special to The Pittsburgh Press HARRISBURG, April 20 Gov, George H.

Earle's tax program suf fered a serious blow in the State Senate today when the Finance Committee, by a one-vote margin, defeated the chain store tax bill. Already passed by the House, this tax has been urgently advo cated by Mr. Earle to provide an estimated three million dollars a biennium. With this money the Governor proposed to raise the sala ries of teachers In fourth class school districts. The Finance Committee vote was 8 to 7.

Three Democrats joined five Republicans to defeat a motion to send the bill out for final action. At the same time the Finance Committee voted bv a lop-sided "lll? rfport ouc uie, Iast. OI IT' i Program Ior tApcuMB Liie iuur-miii personal property levy. Repeals Self in Two Years The two-year estimate of revenue from this tax, which automatically will repeal itself May 31, 1939, is $34,400,000. A fluke nearly brought the chain store tax to the Senate floor when Senator George Woodward, Phila- delphia Republican, voted to report out the bill on the first roll call taken by the committee.

He reportedly asserted he wished to "ruin the Democrats" by passage of this bill. On a second roll call, however, he opposed the measure. Voting to keep the bill in committee were Senators Charles W. Sones, of Williamsport; Harry Shapiro, of Philadelphia, and Weldon i B. Seyburn.

of Delaware Countv. I Democrats, and Senators John G. Homsher, of Lancaster County; Clarence J. Buckman. of Bucks County; Charles H.

Ealy, of Somerset; G. Mason Owlett, of Wellsboro, and Senator Woodward, Republicans. Favoring the chain store tax were Senators George Rankin, of Wil-kinsburg, chairman of the committee; Edward R. Frey, of Pittsburgh; Walter Pytko, of Philadelphia; Frank W. Ruth, -of Berks County; William J.

Eroe, of New Castle; i Thomas E. Kilgallen, of Pittsburgh, and C. Hale Sipe, of Freeport. While' the measure ultimately may come out of committee, it probably will be delayed until after a special election in Northampton County to fill the vacancy created by Senator Roberts' election. Pitt Teacher to Talk Dr.

O. H. Blackwood, professor of physics at the University of Pittsburgh, will speak on "Recent Advances in Physics" before the Laymen's league at First Unitarian Church at 8 p. m. Wednesday.

Scanlon to Be Honored Thomas E. Scanlon, Democratic chairman of the Twenty-first Ward, will be honored at a testimonial dinner to be given tonight at Roosevelt Hotel by the Twenty-first Ward Democratic Committee. I The Weather Wesiprn Pn. firneraMv fair tnnie-ht, rnoir-r in south portion. Wnrlnrsda Hourly, followed by phowrrs in extreme west portion.

Ohio Inr-reas'Hi rloudin'via. Probably phftwer. and in onfh portion I latp tonis-ht. Mot much change in tem- Wot Vs. Tnorpasinr olnnrlins tonieht.

i Hourly, follow! bv shomers. Not much change in temperature. Wenthfr Condition I eh pressure ia centered over eastern Ontario this mornine. and a ridce of nitrh. pxlentts southeastward to the Carolina It is producing fair weather over th Frtter-n States, with morifiratlv O'miI teniiir.it mi js iow I'rr-ssure arra, st riit'-ht-s from Saskatchewan down over the llain- attnd'-d hy ciondy weather over the Central Valleys and the Kmiprn l'hm.

and prod'H-msr lii-'ht showers over mot of the Piain states. It is also can-mg a ri-in-' temperature over the (Vntr.il Vai'evs. Hirh. is centered over the Far West, over Oregon and southern Idaho. River Condition The rivers are fa'dmr.

Stae at Franklin 13 7 feet: Lock No. 7. Mononaheia. 1-5: Pittsburgh. Ill: Dashieids Darn.

10 Dam No. lll.S; No. )n. 5 and No. 12.

12. 8. The rivers will continue to fail. Yesterday's Highs and Lows L. Atlanta, RU Little Ror-k ..76 6 Atlantic SO Los Aner-les.

.72 5 Bismarck 4'Z Loiimrill 74 52 Bois 5 42 I.ynehburs- SO 46 Boston UK 5ti Memphis 74 fl'i Brownsville 72 Miami 7S 72 Buffalo .50 3d Minneapolis 4 46 ..4 14 Mome.imery 4 .72 4'i Nashviile 7rt 56 .72 46 New S4 66 4'-' New York 52 4 Oklahoma ....76 6(1 io Omaha 7t 42 -bur? ..74 4 4 .74 IVirr.v .51 llll Hit Philadelphia 72 52 .4 H2 I'hwnix S4 54 HI t. l.fm 5 6 56 alt Lake Citv 2 .76 54 an Antnnlo 6S .70 5n San Franeiiro. 66 52 .54 40 Seattl 50 46 .74 52 Tarr.p 64 70 54 Washington 52 66 Winmp 46 34 Chattanooga Chir-asro ri.v.-i.-n.i i 'r n. lies Moines liuluth Klkms Kl Paso KvansviiTe Harrisbur Huron Indianapolis Jacksonvills) 1 Iso eoj 5S Y.niwsTnne Pk.48 84 opposition in the Senate and all bills were sent back to the Senate State Boards Committee where they face drastic amendment. In the House, the Civil Service bill proposed by employes of the Board Association went back to committee, apparently for good.

The Board's program was de nounced by members of the Senate as providing the board with "too much power.1 Centralization Proposed Intended to stop illicit sales, improve moral standards in "by-the-drink'' liquor establishments and to relax restrictions on beer sales for home consumption, the bills propose centralizing additional control over liquor and beer licenses in the board. "In the present form," said Sen- Thompson. Philips Durg Democrat, "these bills never will pass the Senate. They must be amended in committee. "The Board has not shown itself able to exercise the increased power proposed in this legislation." "Judicial review of the Board's actions should not be taken away, as these measures propose." 'Too Much Power' Senator Anthony Cavalcante, Uniontown Democrat, who, with Senator Thompson, led the oppo- sition to the Board's program, said the bills gave the Board "too much power." Chief objections to the bill, it was apparent, were aimed at the Board's attempt to reserve to itself full power to suspend or revoke liquor licenses, a power now delegated to the courts.

The bills also take from County Treasurers their present authority to issue licenses to beer parlors, shifting this task to the Board. Backers of the bills said four out Keller. Repeal dissolved the liquor charges against all three. The embracery charge revolved about Coyne's alleged attempt to "fix" the Monaca Club jury. He was acquitted in the 1932 Congressional election frauds.

"Why did you fail to include these arrests in your application?" Mr. Sciotto asked. vveu. i went to an insurance i man John Welsh of Kelly St. to arrange bond for the license," Coyne replied, "and we talked it over.

Mr. Welsh helped me fill out the application. We came to the conclusion that since none of these charges Involved liquor law violations, we were not required to mention them." Shamrock Club Cited "Well, what about your arrest in connection with the Shamrock Athletic Club?" Mr. Sciotto wanted to know. The Shamrock, at 119 Boquet Oakland, around the corner from the evacuated Monaca, was raided in 1935.

Coyne was president. "They made me president," Coyne replied. "I didn't even want A group of East Liberty people owned it and it had a bad reputation. I have no connection with it now. I resigned." Introducing a long list of character witnesses.

Coyne promised to comply with the law if he is granted a license. The investigator assured the examiner that he observed no signs of law violations when he visited Coyne's restaurant. Others listed for hearings today were Alfred M. Mercur, proprietor of Hickey Park Tavern, 1600 Evergreen Mill vale; Fraternal Order of Eagles, Aerie 1097, 871 Brad-dock Braddock; Giuissippi Fazio, 7530 Roslyn Swissvale; Akim Solop, 323 Olivia McKees Rocks; Roscoe C. Graham, Highland Inn.

937 Schoonmaker Monessen; George Giamalis, Paradise Lunch, 4 Beech Leetsdale; Italian Protective Irwin; Master Barbers Assn. of Pennsylvania, 306 N. Craig and American Hunting and Fishing Club, 5932 Broad East Liberty. DURING THE World War, infantrymen used pontoon bridges, or bridges that float in water. They were made by using floats of cork, or empty gasoline tins, held together in light crates.

CONTINUE READING "The Return of Joan" New Press Serial On Page 38 i some (UK) iri Federal work relief protrams. But whatever part of it is received in cash wili be a he'. -especially in such hard-pressed states as Ohio, where relief sit -downers camped recently on the Governor's doorstep. RFC in 1932 UNDER the 1332 act. the Reconstruction Finance Corporation lent to 42 states all except Connect irur Delaware.

Massachusetts. Nebiaska. Vermont ana Wyoming" and the territories of Hawaii and Puerto Rico about It also lent approximately 3 millions to cities and about 15' 2 millions to counties. The RFC had only $300,000,000 to lend: its actual wvre The state loans were to be repaid, biCtiinnin.g 1935. by annual deductions of one-fifth the amount.

the borrow ins states would ordinarily have received in federal highway i. rants. By tiie time the 73rd Congress convened in 1933. ho-Aever. the Roosevelt Administration had accepted the doctrine of Federal responsibility for relief, and tine Congress "forgave" tiie S280.uc0.0aJ0 advanced to the states.

Bui this forgiveness did not extend to cries and coun' ies; they were still left with the obligation to repay the sums they had borrowed for I'-Ii. f. R- t. Rabir.it of Michigan thinks tin-- was "oii-tirely an ir.a.lv.-rrr.: oversight" and was due to the fact that local government loans had not been in with highway grants for repayment, as were the loans made to th states under the Emergencv Relief and Construction Act of 1332. Small But Important SUPPORT is now being organ-O ized in the House for a bill introduced by Rabaut to forgive all relief loans to cities and counties The amounts involved are small.

Rabaut said, but they are important wh-'n these "ommuni- ties are menriou1 rontinmr.g to face a re-relief burden." In some cases city-count; loans have been partly repaid, Oi hc'T CH. C5 col lateral taken bv tr.e rc.ro na.s 1,1 unn sold to private buyers. Ra- baufs bill would release cities and counties from their obligation to make repayment. Collateral security still held by the RFC would be returned; the proceeds of col-Stexal sold would be paid to the debtor communities, and all payments of principal and interest heretofore made on the obligations would be refunded. Throughout the World npHE AVERAGE price of fresh 1 home-delivered milk in 16 Southern cities is 13.7 cents a quart; in 14 Eastern cities it is 12 9 cents; in 14 midwestern cities nearly 12 cents, and in seven farwestern cities, 11.8 cents.

Pennsylvania poultry men sold 270.360 dozens of eggs to the Agricultural Adjustment Administration under its recent purchase program to check falling egg prices. The program, under which the Government purchased a total of 8.345.000 dozens of surplus eggs for $2,000,000, resulted in a less than normal seasonal decline in prices. LIFE'S BIG MOMENTS Ji, -A Vtfi 'I 1. 'ir LA fcw. A dog's i Is 1 -Tv I'LlW vvOw i for a by i to the fact that the Federal Reserve Board ordered an increase of one-third in the cash reserves of member banks, effective May 1.

As a result, smaller banks, heavily loaded with Government bonds, dumped them on the market in order to meet the board's requirements. Marriner Eccles was responsible for this increase. He has become much worried over the specter of inflation, knew that an increase in bank reserves would take money out of speculative fields. He also knew this would bring an easing in bond values, but he expected nothing as drastic as actually occurred. Morgenthau Howl THE BOND drop brought an immediate howl from the Treasury.

Chief pride of Secretary Morgenthau is his maneuvering of Government interest rates down to a point where the Treasury pays only the same total interest it paid under Hoover, despite the big national debt rolled up by Roosevelt. Morgenthau has raised a lot of the money in the form of short-term paper, maturing in from one to five years. This means that he has to keep going back into the market to refinance every time an issue matures. Right here was where the Eccles policy pinched. Ax long as Government securities were above par, Morgenthau could sell his new issues at low rate.

But now Eccles inadvertently had jacked the rate on him. Morgenthau's howl was behind the action of the Federal Reserve Board in convening its Open Market Committee and going into the market to buy Government bonds, thereby bolstering bond prices. In other words, the Reserve Board moved to cushion the severe monetary reaction which it, itself, had precipitated. Inflation Fear ECCLES' inflation bugaboo and his fear of a runaway stock market are shared by the President and by Morgenthau himself. They went along with him on his first move to increase bank reserves which can be done under the Banking Act of 1935 but only because they figured the reaction in bonds would not be so drastic, jtiBzk i 5LSli.