Joplin Globe (Newspaper) - March 25, 1938, Joplin, Missouri THE slightly In south cast central Saturday showers and much showers and cooler In west portion Saturday showers and much warmer In east portion followed by showers Friday Saturday partly cloudy and showers In extreme east Partly cloudy showers In east and central portions in afternoon or Saturday cooler In northwest portion much cooler FULL ASSOCIATE ASSOCIATED PRESS REPORTS Final Edition VOL. NO. 195. Publication Office 117 East Fourth Street FRIDAY MARCH 25, 1938.-EIGHTEEN Published Every Morning Except Monday PRICE FIVE HITLER AGAINST HUNCHING WAR Chamberlain Says England May Be Forced to Fight if Germany Opens Hostilities in BALKS AT PLEDGING ARMED ADD TO CZECHS Prime Minister's Policy Declaration Rejects Russia's Call for of March 24.-Prime Minister Neville today let Reichsfuehrer Adolf Hitler know Great Britain might have to fight if Germany started a war in central But he balked at a prior pledge of armed help for Czechoslovakia in event of armed aggression as he laid down the broad lines of British foreign policy in a 57-minute. statement in the crowded house of Joseph P. United States ambassador to the Court of St. sat in the diplomatic gallery for the first time with diplomats of other Envoys of Germany and Italy apparently were Hopes to Revive Lord foreign repeated Chamberlain's the most important declaration by a British prime minister since the world in the house of In his broad the lanky prime minister 1. Rejected Soviet for a conference of powers to resist 2. Urged that the League of Nations be nursed to and be made into a of overwhelming 3. Reaffirmed the government's view that nonintervention still was the best policy in 4. Reiterated that quickening especially for the royal air air raid precautions were have first priority in the nation's Purely European in the avoided mention of the Chamberlain declared Britain's friendship talks Italy were of encouragement to those who regard as an objective to which the efforts of all men of good will should be Willing to Withdraw He said Italy had pledged her Willingness to in carrying out the British plan for withdrawal of foreign from Spain's civil and reiterated her declaration she had no or economic aims in Spain or the Balearic The minister declared Britain to uphold existing notably aid to France and Belgium if there should be and for her But he refused to make military promises regarding where our vital interests are not in the same degree as they are in the case of France and He offered Britain's help to Germany and With her 3,500,000 in making peace on the issues of arid other Though declining give military promises where Britain is not bound by the prime minister significantly peace and war are legal not alone involved and if to break out it would he to be confined to those who have assumed such would be quite impossible to say where it would end and what governments might become The inexorable pressure of facts might well prove more powerful than formal Derisive Cries There were derisive opposition cries of when dealt with Britain's of 1 Clement R. and Reader of the official opposition in opened on the government's policy with a charge that to He is. nothing so dangerous as a policy of drift and Both Attlee and Sir Archibald opposition liberal intimated they suspected Chamberlain of with Italy and Germany to sustain a victory for Spanish insurgents because of delay in volunteer Winston cabinet minister regarded as the leader of a potential on page 8) ESCAPED ALCATRAZ PAIR REPORTED SEEN Ted Cole and Ralph Dead by Said to Be on Way to March 24.-(JP) - Ted Cole and Ralph escaped island convicts believed dead by Warden James were reported heading here today by St. Louis The Chicago city police teletype carried a message stating the two were seen in St. Louis at 10 a. m. yesterday and believed headed toward freight train or The men escaped from the prison last After several Warden opined they had drowned in the choppy waters surrounding San March 24.-03?)- Warden James A. Johnston of prison expressed doubt tonight the men St. police reported were heading toward Chicago were Ted Cole and Ralph missing Alcatraz The two men disappeared from Alcatraz during a dense fog on December 16 of last year and apparently tried to swim a mile and a half of San Francisco bay tides to the INSURANCE RATE CASE IS CLOSED CONSENT TO RETURN OF IMPOUNDED FUNDS TO March 24.-UP)- The state's 16 2/3 per fire insurance rate case was brought to a late except for when the companies agreed to accept as final the recent state supreme court decision which held that all the in im- pounded funds belonged to the The in the form of a contract between the state and the 74 companies involved in the was filed with the supreme Contract Is It similar to one presented Circuit Judge Nike G. on the companies went further in this stipulation to recognize for the first time the power of the state superintendent of insurance to pass upon and litigate insurance ' The contract was signed by Governor Lloyd C. George A. S. state superintendent of Attorney General Roy McKittrick and Drake an assistant and tile Kansas City law firm of E. R. and Homer H. representing the insurance The state to withdraw motions filed in the circuit court by John T. Barker and Floyd E. special for the insurance in which it sought to - the companies with interest on the impounded and make them replenish the fund by approximately paid out in Appeals Are ' from orders allowing the including about in fees to Guy M. as of the and to T. S. his are now pending in the supreme Under today's the companies agreed to all and to consent to their distribution Governor Stark said the insurance superintendent would pay the policyholders fast as The litigation began in 1930 when the companies put into effect a cent- increase in rates without the approval of the state GRAND RIVER DAM WAGE SCALE PROPOSED March 24.-UP)- American Federation of Labor officials announced today a wage scale to be the basis of negotiations between the A. F. of L. contractors on the Grand river Joe state A. F. of L. arid Harry discussed ' the scale with R. V. L. general manager of the hydro-electric An eight-hour day and 40-hour work week were differentiate between unions and Wright position about law is defined in the minimum PWA wage BARRYMORE COMFORTABLE AFTER FOOD POISONING March 24.-UP) Actor John Barrymore was reported resting comfortably today at the hospital which he entered yesterday because of an attack of ptomaine He expects to report back for work HOSTILE FRENCH SENATE DEMANDS BLUM STEP DOWN Days of Cabinet Believed Union Government Is Favored in PREMIER'S FINANCIAL MEASURE IS DEFEATED Thousands of Workers Supporting People's Front Go on Strike in the Paris March 24.-(JP)-France tonight faced a new cabinet crisis when the hostile senate rejected one of Premier Leon Blum's financial bills and made it clear it wanted him to resign to make way for national union Many deputies said the days of his second people's front formed March 13> were Strikes grew in the Paris region among metal and 6,000 chemical workers in factories in the Lille district quit work for an hour and a The workers all belong to unions under control of the General Confederation of one of the most powerful elements behind the people's Strike Is Members of the rightist labor organization at the Citroen plants issued a protest against the calling them and ordered for political Leaders of the more than 20,000 on strike in the Paris region said their move was for new collective The strikers a warning carried in Le socialist party that a national union government might be an excuse to put rightists into Leaders of the Lille strikers said their action was a of a threatened occupation strike unless the men won their fight for automatic wage increases to keep step with rising The senate rejected by 193 to 88 votes a already approved by the chamber of deputies to permit Premier Blum to transfer a surplus from the exchange equalization fund to the special national defense Permission was sought to take 3,149,000,000 francs from the stabilization fund for defense The senate later adopted a giving - the government an extra 5,000,000,000 francs from the Bank of France to meet current The margin was 156 votes to 137. Blum Remains in Blum did not fate of his government on the stabilization fund question remained in The possibility he might resign without attempting to force his through the senate was seen by political observers in the announcement that an extraordinary cabinet was called for 10 a. a. central standard In the senate debate on Blum's five senators called upon the socialist to resign in favor of a national union A common theme ran througH their such a government alone was believed capable to strengthening French finances and military defenses to meet a threat of European Defense Minister Edouard and Edouard president of the chamber of each was mentioned as a possible successor to Blum at the head of a national union The chamber of meanwhile unanimously passed a providing for of France in time of The provides on a few Every able-bodied man and woman in France would be called for duty in the trenches or munitions AUTO WORKERS REJECT A CHRYSLER PROPOSAL March 24.-(/P)-Lester L. Chrysler Corporation announced tonight the United Automobile Workers of America had rejected a corporation proposal for a one-year continuation of a working agreement which expires March 31. Conferences with negotiators of the CIO union seeking a new agreement were adjourned until R. J. U. A. W. A. vice said the Chrysler officials had declined to agree to what he termed to the existing LESSON IN FLYING CLIMAXED BY LEAP Kansas City Instructor and His Pupil Bail Out When Airplane Catches Kansas March 24.-UP)-A flying lesson was climaxed abruptly with a maiden parachute jump for a flying instructor and his pupil here today when their plane caught fire in midair and The Maynard 29 years was the first to bail out after they discovered their plane on but the Opal 33, lost little time in Both men escaped although the instructor received slight burns on the The plane was its engine burying itself in the mud of a ditch on a farm of Karl who lives six miles northeast of Kansas ECONOMIST LOOKS FOR TRADE SPURT FRANKLYN HOBBS BELIEVES BUSINESS IS MOVING TOWARD 1929 March 24.-UP)-Frank-lyn La Salle street tonight professed to see business moving toward prosperous pinnacle of 1929. In an address before the Office Equipment Manufacturers Institute he reviewed trends since the civil war and all the rules of the by indications of almost every economic by the law of averages and by the natural swing of the business we have every reason to expect business betterment from here on during 1938, with a dip at the close of the The severity of the dip will be regulated by the sharpness of the rise just it was in 1927, 1928 and 1929 and just as it was in 1937. Improvement in 1939 completion of the dip at the close of this year should usher in an improvement in business for 1939, the peak of which should exceed the peak of any previous year than in this decade there is good reason for expecting it to exceed the 1929 Hobbs compared the upswings of 1935, 1936 and 1937 to similar movements in 1925, 1926 and 1927. He can expect improvement in 1938 similar to 1928'; further improvement in 1939 similar to 1929, followed by the third consecutive the third time down from which we may fail to recover in 1940 as we failed to recover in 1930. new high mark in business volume is indicated for 1939, but the next low indicated to occur before 1945, might arrive in 1942 similar to 1932 or it might reach its acute stage in the year previous or the economic advisor to the Business Statistics said high points were reached at the close of decade in recent 1879, 1889, 1899, 1909, 1919 and 1929. am unable to believe that a movement which has occurred with unfailing regularity for more than 100-years is he do believe that these movements are in This is the operation of the business These movements result from economic law and 'the laws of economics are just as immutable as the laws of CAPITAL EXPECTS F. D. R. TO WAGE ELECTION BATTLE Gainesville Speech Regarded as Notice to Opponents He Will Back Reform Plans in FERE BUILT UNDER SOUTHERN CRITICS Foes of Wage and Other New Deal Proposals Challenged to Offer Better ROOSEVELT SLEEPS LATER TAKES DRIVE Warm March 24.- Roosevelt started his spring vacation under a warm Georgia sun driving his own new low-priced car around the infantile paralysis foundation He slept late after his read editorial comments on his plea for wages in southern industries and then ordered his shiny blue car for a spin around the The car is specially constructed with complete hand The president expects to stay here about 10 One day next date has net been will motor about 60 miles south to Fort Benning to inspect the big infantry STRIKE TIES UP GOLDEN GATE EXPOSITION WORK San March 24.-UP)- A of union tied up construction on the Golden Gate international exposition project on in San Francisco bay Members of the which is affiliated with the American Federation of picketed the charging they had been blacklisted because they refused to sever a connection with the C. I. Maritime Federation of the March 24.-UP)- Political observers here interpret President Roosevelt's speech at as a defiant notice to opponents of his reform policies that he intends to take a hand in this year's primaries and If these onlookers read the speech it is the beginning of a personal drive by the president to fasten voter attention on the social and economic principles of the new It tended to confirm an impression here that the president is accepting the challenge of his democratic challenge typified by the defeat of his court reorganization Loyalty Is Test. The Gainesville speech came at a time when the White House had sharply indicated in connection with senatorial primaries in Florida and elsewhere that loyalty to new deal ideals is the only test of White House favor for democratic office thing is the president are not going back to the old We are going forward to better We are calling for co-operation all along the and the co-operation is increasing because more and more people are coming to understand that abuses of the past which have been eradicated are not going to be That the speech was intended to light a fire under southern democrats who have blocked house action on a standards was Yet observers found it far more significant as an indication of the type of campaigning Mr. is planning for the summer and autumn months than for the effect it might have toward getting a through at this A Challenge to The president again drew the distinction he had frequently made between social and economic objectives and methods of obtaining He again challenged the critics of his methods who speak well of his objectives to propose better There have been hints that Mr. Roosevelt might travel extensively in the months after congress It appears possible that much of may catch a glimpse of him between now and election day and hear at first hand his message that it is the reform policies for he stands that the voters must pass not local issues that tend to obscure the If that is a correct construction of the Gainesville the president is inviting a definite mid-term referendum on the new much as many democratic office holders would like to escape that test in a STEEL EXECUTIVE'S SON IS MARRIED IN OKLAHOMA Credit Stimulus for Trade Sought by Administration Federal Finance Officials Seek One or More Methods of Putting Into Hands of Business Men Money to Hire More Question to Be Studied is Whether Reconstruction Agency Can Liberalize Lending March 24.-(ZD-Tom 28 years son of Tom M. of the Republic Steel was en route to Hot tonight to honeymoon with hij the former Mrs. Marie Legate 32, a geologist for the Sinclair Oil and Mrs. were married here Security Sales March 24.-(TP)-Dollar value of sales all registered securities exchanges in February was a drop of 27 per cent from January and 73.3 per cent from 1937, the securities commission reported March 24.-(JP)-Federal finance acting under President Roosevelt's are searching for some means of pumping a credit stimulus into the veins of lagging Secretary of the Treasury disclosed today that the president had set up a committee to make the Morgenthau is chairman of the but neither he nor any other member of the group would say what proposal was under James son and secretary of the attended the committee's first meeting last To Analyze The finance officials determined to analyze hundreds of letters and other proposals in the hope of finding one or more methods of putting into the hands of business men money to hire more workers add throw off the paralysis of Questions to be studied Whether changes can bo made in the securities act to facilitate private whether the federal prohibition against banks un securities should be whether the Reconstruction Finance Corporation can its lending whether some new federal agency might be set up to insure industrial and underwrite securities and whether bank examining regulations can be modified Although Morgenthau said he believed was needed to ease business other officials indicated privately that they despaired of a solution by further gov LITHUANIA REGIME QUITS UNDER FIRE CABINET THAT BOWED TO POLAND RESIGNS - NEW ' GOVERNMENT HOURLY TEMPERATURES Temperatures climbed to a high of 73 degrees The minimum was 42. A year ago yesterday the maximum was 60 minimum 38. Hourly 1 a. 1 p. 2 a. 2 p. 3 a. 3 p. 4 a. 4 p. 5 a. 5 p. 6 a. 6 p. 7 a. 7 p. 8 a. 8 p. 9 a. 9 p. 10 a. p. 11 a. p. Noon 1 a. 2 a. March 24.- of the Lithuanian cabinet amid widespread bitterness over nation's capitulation to Poland was announced officially President Antanas Smetona accepted the resignations of Premier Juozas and his ministers and Chief Army Chaplain Mironas formed a new Mironas is a good friend of the All new ministers were members of the government The government had been under fire since last when it yielded to a warlike Polish ultimatum demanding that relations be tween the two countries be Foreign Minister was named minister of agriculture in the new and Foreign Minister Stasys who offered to resign remained as acting foreign Stasys Rastikis became acting minister of Minister of Justice Stasys also had offered to resign A coalition proclamation had been demanding a new government on the ground that present officials were by and could not suitably defend the country's The proclamation demanded three 1. Resignation of the present 2. Formation of a coalition 3. Adaptation of the democratic system of government to the existing needs of the Signed Among signers of the proclamation were former Presidents Dr. Aleksandras and Dr. Kasmir and former Premiers Eustace a signatory to the declaration of and M. a Other members of the fallen cabinet were- Lieutenant General Luis minister of the General Stasys defense Professor minister of public minister of S. minister of Jonas minister of and Konstantinas state Earlier today the government agreed to the appointment of Polish as minister of Colonel Lithuanian delegate to the League of goes to Warsaw Sunday as Lithuanian The exchange of for the first time in 18 resulted from Lithuania's submission to the Polish ultimatum which also demanded that the border between the two countries be Chairman Jesse H. Jones of the RFC has publicly called unsound any attempt to lend money on on a promise to unsupported by Study to Require Several Morgenthau said the study would require several weeks and many more The movement for credit liberalization dates back to the early February meeting of a thousand small business men at the commerce the treasury chief A major demand of that group was for easier A committee of the small business men took to the White House suggestions that banks be encouraged to make business loans for longer periods and with less collateral than is and that the federal government make such loans if the banks refused to do so. Many of the small business men urged federal insurance of - industrial in the manner of federal housing administration insurance of real estate This idea has been incorporated in bills by Senator and other members of The first concrete result of the little business conference's recommendations was a recent order by President directing Jones to reopen the reservoir of lendable funds to Jones said today that a substantial number of applications had been received since but that he did not know how many loans had been TWO ROOSEVELT TAX PROPOSALS ARE TORPEDOED Senate Committee Blasts Profits Levy From and 18 Pet. Rate on Corporate CAPITAL GAINS IMPOST DRASTICALLY CHANGED OF NAZIS INTO RIOT Chairman Harrison Says Revision Will Release Capital Now on Floor Is CROWD STORMS GATHERING OF INJURED IN FIST March 24.-UP)- An crowd tonight stormed what police described as a meeting of the German-American bund and turned the gathering into a More than a score of persons were injured in the fist fighting that raged in the small hall until riot squads Police Inspector William Scull said he was told the rally was intended as a celebration of Hitler's seizure of Wilhelm bund was scheduled to Man Hit With A man who identified himself as Sam Bernstein was cut on the face He said someone struck him with a As police separated the participants in the members of the committee paraded in the street with signs reading with Hitler and his U. S. The pickets later disbanded and sporadic fist fighting broke out along the Scull posted policemen in the hall to prevent resumption of the Kunze denied the meeting was in celebration of was scheduled merely as a stated monthly The German-American bund has no definite program at he DISCUSSION OF RAIL WAGE CUT POSTPONED March 24.-(IP)- The railroads and rail labor postponed further discussion of a pay cut today until they see what the federal government intends to do about their A committee of rail executives and the Railroad Labor Executives Association decided to do the White House forwarded to President Roosevelt in Warm a special committee report on railroad The headed by Walter M. W. chairman of the Interstate Commerce refused even to hint what the report ARKANSAS LEGISLATIVE DEADLOCK POSSIBILITY Little March 24.-UP) of a legislative deadlock which many contended might extend the special session for several days arose today as the senate voted down the bridge improvement district aid measure of the Word of the senate's action astonished bridge district relief representing an estimated 60 per cent of the house's Retaliatory measures came to the fore almost immediately as word flew around the house that a battle was March 24.-(JP)-The senate finance committee torpedoed two administration tax proposals today and substituted levies more pleasing to In a session designed to hasten enactment of the tax revision the committee clipped out the undistributed tax and drastically revised the capital gains Both had been approved in the Chairman of the senate said he believed the changes would stimulate resulting in increased revenue to the think the change in the capital gains levy probably will do more good than any other feature of the tax Harrison should release capital that now is frozen Floor Fight Administration leaders indicated they would fight on the senate floor to restore the undistributed profits which President Roosevelt has been reported to They said there would be less sentiment for restoring the capital gains For the profits levy the committee substituted a flat 18 per cent rate on corporation Special treatment would be provided for small In place of the sliding scale of capital gains the committee approved a flat rate of 15 per cent. This generally will apply to long term capital or those realized on assets held more than 18 Under both the house and senate committee capital gains were divided into two and long In both the excess of gains over losses would be but short term losses could offset only long-term In both the the excess of short term gains over short term losses would be added to ordinary income and taxed at the applicable normal and surtax income Short Term Method Harrison said the senate committee had decided to approve the house method on short term gains because these generally represent have no thought of protecting the he Under the house short term transactions would be defined as those involving capital assets sold or exchanged within a year after their acquisition by the The senate committee's proposal would make the period 18 months instead of a Under the house the maximum rates on total gains would vary from 39.2 to 16 per depending upon how long the assets were Under the senate committee's the taxpayer could pay a flat 15 per cent rate on long term gains regardless of how long his assets had been As an optional he could add 50 per cent of his net long term capital gains to his ordinary income and compute the tax on it at the regular normal and surtax Harrison said the latter provision would be used primarily by taxpayers who had less than of capital gains in a Roswell treasury undersecretary who asked the finance committee last week to retain the undistributed profits was present at today's committee meeting when the tax was More Revenue it was partly on the basis of Magill's revenue estimates that the committee decided to replace the profits levy with a flat Magill estimated the 18 per cent income rate would yield for the current calendar or more than would be provided under the house The house would levy taxes ranging from 16 to 20 per depending upon the amount of corporation profits distributed to For corporations having incomes of and the senate committee program would provide a system of credits which would operate to reduce tax The credit would be of the difference between and the net income of a ou page 8), 69
