Shiner Gazette (Shiner, Tex.), Vol. 43, No. 12, Ed. 1 Thursday, March 19, 1936 Page: 2 of 12
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SHINER GAZETTE, SHINER, TEXAS
News Review of Current
Events the World Over
hew Tax Program Stirs Hot Debate—Black’s Seizure of
Telegrams—Norris Dam Is Completed—Italo»
Ethiopian Peace Draws Nearer.
By EDWARD W. PICKARD
© Western Newspaper Union.
mm
Rep. S. B.
Hill
/CONGRESSMAN SAM B. HILL of
^ Washington and his subcommittee
of the house ways and means com-
mittee took up the heavy task of de-
termining how the
new revenue o f $1,-
137,000,000 called for
by President Roose-
velt should be raised.
Treasury officials rec-
ommended that an av-
erage tax of 33ys per
cent should be levied
on undivided corpor-
J ation profits and a
L i \ tax of 90 per cent on
all refunded or un-
paid AAA processing
taxes. In this the
fiscal experts followed the suggestions
of Mr. Roosevelt. They told the sub-
committee that the proposed corpor-
ation surplus tax would yield the gov-
ernment $620,000,000 annually. The
President has estimated that this
amount will be needed to finance the
new farm program and the soldier
bonus.
The so-called "windfall” tax on
processors who successfully challenged
the AAA In the courts, it was be-
lieved, would yield another $200,000,-
000. This will be used to reimburse
the treasury for losses suffered as a
result of the Supreme court’s invalida-
tion of AAA. There remains an ad-
ditional $317,000,000 which it Is pro-
posed to raise through excise taxes on
a wide range of farm processors.
Chairman Hill said the experts and
the members of the subcommittee were
agreed that the tax on undivided sur-
plus should not apply to banks and
life Insurance companies.
There was wide divergence of opin-
ion concerning this tax among lead-
ers In congress. Senator James Ham-
ilton Lewis of Illinois, Democrat, for
instance, declared himself against it as
an unnecessary additional burden on
business, and indicated he would sup-
port, instead, a plan to tax the in-
come from federal securities now ex-
empt. Senator Borah, Republican,
said that in principle he endorsed the
plan of taxing undistributed earnings,
while Senator Hastings of Delaware,
also Republican, denounced It as "con-
fiscatory.” Senator King of Utah,
Democrat, and Representative Knutson
of Minnesota, Republican, were moved
by the program to demand Immediate
cutting down of federal expenditures,
and in this Mr. Borah concurred.
Speaker Joseph W. Byrns and Major-
ity Leader W. B. Bankhead professed
to see no difficulties in the way of
the proposed measure.
One thing that boosted the chances
of the President’s tax program was a
report from Secretary of Commerce
Roper that corporation Income in 1935
was gOO per cent higher than in 1932.
TN THE course of his probe into the
A affairs of enemies of the New Deal,
Senator Black of Alabama, chairman
of the lobby committee, assumed the
right to seize and examine their pri-
vate telegrams, and thus his investi-
gation was carried into the courts.
Silas Strawn, Chicago attorney
learned the committee was about to
subpoena his telegrams and he ob-
tained a temporary. Injunction blocking
such action. He has asked the District
of Columbia Supreme court to make
this Injunction permanent.
The wholesale examination of tele-
grams was attacked by Representative
Wadsworth of New York, and defended
by Senator Black.
"It strikes me,” Wadsworth said,
"that we have reached a strange stage
In the development of democracy when
private correspondence can be seized
without court procedure or search war-
rant.”
Black said: “Repeatedly it has been
held that the senate can call for what
It pleases. There appears to have been
a concerted effort by those who seek
to Influence legislation behind the
scenes, through subterranean channels,
to prevent us from getting evidence.”
{GOVERNOR LANDON’S boom for
vJT the Republican Presidential nomi-
nation is progressing in a way that
must be pleasing to his supporters.
Kansas Republicans In a state conven-
tion pledged him the state’s 18 dele-
gates to the Cleveland convention, de-
claring him to be "the best-fitted can-
didate.” That Kansas should support
its governor Is natural and expected,
but he also is garnering a good many
delegates elsewhere, and Indorsement
in some states where the delegates are
uninstructed.
Sentiment favorable to Landon ap-
peared in New Jersey, and Hervey S.
Moore of Trenton, a Republican leader,
was contemplating starting an active
campaign for him in that state.
/''VN THE third anniversary of his
inauguration President Roosevelt
pushed an electric key In the White
House which set In motion machinery
that closed the sluice gates of the
Norris dam In the Tennessee Valley
project This signalized the completion
of that part of the vast work on t£o
Clinch river.
"I hope as many people as can will!
ko to see the Norris dam in eastern
Tennessee,” the President said in a for-
mal statement. “It exemplifies great en-
gineering skill, high construction effi-
ciency, and, above all, it is the key to
the carefully worked out control of a
great river and its water spread over
parts of seven states.
“The Norris dam is a practical sym-
bol of better life and greater oppor-
tunity for millions of citizens of our
country. The nation has come to real-
ize that national resources must not
be wasted and the Norris dam is evi-
dence that our program for conserva-
tion of these resources Is going for-
ward.”
CENATOR BORAH and Senator Van
^ Nuys of Indiana, the latter a Dem-
ocrat, introduced a bill directed against
certain practices of the chain stores.
The measure would make It unlawful
for any person engaged In commerce
to grant any discount, rebate, allow-
ance or advertising service charge to
a purchaser over that available to the
purchasers’ competitors. It also would
prohibit sales "at prices lower than
those exacted by said person elsewhere
In the United States for the purpose
of destroying competition or eliminat-
ing a competitor.”
Co-operative associations would be
exempted from provisions of the meas-
ure. Violators would be subject to a
$5,000 fine and a one-year jail sen-
tence.
The so-called Robinson-Patman anti-
monopoly bill, also aimed at chain
stores, will be passed by the senate
before very long, according to a prom-
ise made by Senator Robinson to a
mass meeting of 1,500 independent mer-
chants who went to Washington to lob-
by for the measure. This bill legislates
against special prices, rebates, adver-
tising allowances and brokerage fees
giving sales advantage to chain stores.
Giuseppe
Motta
'T'HROUGH Its committee of thir-
A teen the League of Nations ap-
pealed to Benito Mussolini and Em-
peror Haile Selassie to consent to Im-
mediate negotiations
for an end to hos-
tilities and a definite
re-establishment of
Italo-Ethiopian peace.
Though consideration
of the proposal by his
cabinet council was
delayed a few days,
Mussolini, according
to advices from Rome,
was disposed to ac-
quiesce provided ter-
ritory In Ethiopia al-
ready occupied by
Italy is considered hers and left out
of the negotiations.
Haile Selassie accepted the proposal
without reservation. In recent days
his armies in the northern sector have
been routed in big battles and have
lost many thousands of men, and the
Italians have penetrated far toward
the interior of the country; and In
the South the Invaders were prepar-
ing for a rapid advance.
Back of the league’s appeal was
the standing threat of extension of
sanctions to include an embargo on
oil. This suddenly brought about a
situation rather disconcerting for the
league. Dr. Giuseppe Motta, Swiss
foreign minister, gave a warning that
If the oil embargo was applied his
country might feel it necessary to
leave the league in order to preserve
its neutrality if the consequent threat-
ened war In Europe resulted. Motta
pointed out that if Italy quit the
league and hOsilities ensued, Switzer-
land, through her membership In the
league, would appear In Italian eyes
as a party to a hostile coalition, and
would be subject to Invasion, by Italy
on one side and perhaps by Germany
on the other.
TYRITAIN’S government evidently be-
AJ lieves another war is coming, and
Intends to be well prepared. It made
public a gigantic program for increases
in the army, navy and air forces and
for swift mobilization of man power
and industry. No official cost estimate
was given out but authorities said the
total over a three-year period would
be not less than one and a half billion
dollars. The program includes these
features:
Army—Four new battalions of In-
fantry are planned. All units are to be
modernized, mechanized, and re-
equipped. Especial attention will be
paid coastal and anti-aircraft defenses.
Navy—Two new battleships next
year and an increase In cruiser
strength from 50 to 70, with five new
ones to be laid down this year. Naval
personnel also will be increased by
6,000, a new aircraft carrier will be
constructed, and the air arm of the
navy will be strengthened.
Air Force—About 250 new war planes
will be added to the home defense
squadrons, bringing the total to 1,750.
Twelve new air squadrons for Imperial
defense—that is, air forces available
for transfer to danger areas—will be
added, and more pilots will be recruited.
Following this announcement the an-
nual naval estimates were submitted
to parliament. They call for $349,650,-
000, an increase of $49,400,000 over
the previous year.
BRISBANE
THIS WEEK
Pretending Costs Money
A Japanese Widow
The Five Babies Are Well
Democratic Edward VIII
Even imitation war Is costly. Eng-
land’s battleships, submarines and air-
planes in the Medi-
terranean, intended
to intimidate Italy
and keep down dis-
content in Egypt,
represent no real
war.
England occasion-
ally discharges light
“depth bombs” in
the Mediterranean,
"bringing Italian
submarines popping
like corks to the
surface.” Yet the
government tells
the house of com-
mons this Imita-
tion war costs British taxpayers five
hundred thousand pounds a month.
Arthur Brisbane
The twenty-four-year-old widow of
a Japanese officer who committed sui-
cide after the recent rebellion sends
a letter of apology to "Your august
majesty,” the Japanese emperor, say-
ing: “I believe the spirit of my hus-
band, whose body lies in a coffin be-
fore me, also sorrows for those who
fell.”
A most serious people, the Japanese,
particularly where their emperor is
concerned.
Doctor Dafoe, modest man from
Canada, who understands quintuplets,
dropped in to say the five little girls
are doing well, fighting frequently,
sign of a normal condition. They like
sleeping outdoors with the weather 30
below zero, but in daytime only. It
would delight you to see their red
cheeks.
Three hundred and seventy-five thou-
sand visitors, nearly all from the Unit-
ed States, came to look through a fence
at the quintuplets last year; 500,000
are expected this year. The baby girls
are a wonderful advertisement for
Canada. Many that go to see them
will buy farms and stay.
A democratic young person is Edward
the Eighth, new king of England and
emperor of India. Broadcasting to
200,000,000 that live under the British
flag and occupy one-quarter of the
earth’s surface, he does not refer to
them as “my subjects” or "my peo-
ple,” as his predecessors did, but calls
them “fellow men.”
And Edward VHI does not refer to
himself as "we,” which is customary
with other rulers. His father spoke
of “my empire” and “my dear people”
and called himself “we.”
President Roosevelt submits to con-
gress a plan to increase heavily in-
come taxes of corporations suspected
of holding many billions of profits not
distributed. The taxes might run to
over 33 per cent.
You never can tell what Wall Street
will think. President Roosevelt’s tax-
ation program sends stocks up. Per-
haps Wall Street has no “undistributed
reserves.” Great industries will not
be forbidden reasonable cash sur-
pluses, presumably. Such a rule would
make expansion and Increased employ-
ment Impossible.
A joint resolution in the house and
senate suggests a congressional medal
of honor for the late Gen. William
Mitchell, head of the American air
forces in the big war. Few congress-
men would vote against a tribute to
a man who fought so well for his coun-
try, and the medal would please his
widow and children.
If congress wants to honor the mem-
ory of General Mitchell as he would
wish, it will build more airplanes and
lead the world In aviation Instead of
trailing.
Uncle Sam paying rent to Panama
for the canal, offering the usual $250,-
000 rent ihstallment, was told: “No,
we do not take 59-cent dollars.”
Washington admits that while it may
try interesting experiments with Its
own money, and tell its own citizens
“Gold is too good for you,” It has no
right to make the outside world suffer.
Panama will get an amount of money
equal to 250,000 of our dollars before
we slid off the gold basis and Into the
“Inflation bond” era.
Sometimes government ownership
gets things done. Germany’s postal
ministry opens the first long-distance
television-telephone In the world, be-
tween Berlin and Leipzig—the charge
for three minutes only $1.40. When
you call up, a “strong, bluish light”
illuminates your face, which is seen by
the person at the other end of the line.
That would have been Improbable
when telephones were installed In the
big Paris exposition, not so long ago.
Four years ago the Lindbergh child
was kidnaped. Bruno Hauptmann,
convicted of the kidnaping and mur-
der, caught spending the marked gold
certificates that Lindbergh paid in a
vain effort to get back his child, Is
still alive.
It is said that he will have another
reprieve. Our system of Justice is not
hasty.
The post office shows that efficiency
in government is not impossible. No
private concern would send a letter
from Florida to Alaska for three cents,
collecting and delivering the letter.
© Kins Features Syndicate, lac,
WNU Service.
Washington!
Digest
National Topics Interpreted
By WILLIAM BRUCKARTjffi^M
NATIONAL PRESS BLDG WASHINGTON, 0 C.
ft| I It f I pvf
Washington.—A rouLne War depart-
ment order came through the other day
which, said, cryp-
Thunder tically:
Over Hagood “By direction of
the President, Maj.
Gen. Johnson Hagood, U. S. A., is re-
lieved from assignment to the com-
mand of the Eighth corps area and
further duty at Fort Sam Houston,
Texas. Major General Hagood will
proceed to his home and await or-
ders.”
Each day, there comes- from the War
department anywhere from two or
three to a couple of dozen orders by
which army officers are transferred
from one post to another, from one
assignment to another or given new in-
structions. It is not unusual at all.
That Is why I said at the outset of this
item that the order respecting General
Hagood was routine. But It was
routine only In the language that was
used. Otherwise, it was significant.
Just how significant it will prove to be
remains as a secret to be unfolded
by the future. Suffice to say that sel-
dom ha3 one minor incident of gov-
ernment administration created such a
storm as this army order because it has
become a political issue. General Ha-
good Is the third ranking officer in the
United States army. He has been in
the service something like forty years.
His record Is generally regarded as
distinguished, but at the same time he
has never been a pussyfoot. He has
spoken boldly, sometimes too boldly
and sometimes out of turn, yet I think
it is generally agreed that General
Hagood is sincere.
But, to go back of the "routine
army order” by which he was sum-
marily >relieved of his command at the
important army post of Fort Sam
Houston, we find a record of General
Hagood’s testimony before an appro-
priations committee In the house of
representatives. In that testimony,
General Hagood spoke with his usual
bluntness. He apparently offended
somebody when he did It. His testi-
mony has been criticized and com-
mended, the War department and Sec-
retary Dern have been attacked and
defended and even President Roose-
velt has been dragged into the
controversy because somewhere, some-
how New Deal opposition has be-
come convinced that President Roose-
velt and Secretary Dern punished Gen-
eral Hagood by removing him from
his post because he dared to point out
flukes and flaws and ridiculous as-
pects in New Deal policies of handling
taxpayers’ money.
* * *
General Hagood was called before
the appropriations committee by its
chairman and told
Speaks to express his can-
Freely <Hd sentiments, his
honest convictions
and any constructive suggestions he
might have respecting improvement
of the United States army. The gen-
eral, somewhat blusteringly, related
to the committee that the army must
have additional housing facilities. He
related conditions in many army posts
end asserted that many persons on re-
lief were accorded better places to live
than Uncle Sam’s soldiers.
That part aroused no particular con-
troversy but when General Hagood
told the committee of the difficulty the
responsible army authorities have In
getting money with which to provide
better housing for tho soldiers, he
stepped on administration toes by say-
ing that it was more difficult to get
“five cents for a pencil than a thou-
sand dollars with which to teach Civil-
ian Conservation corps boys new hob-
bies or boondoggling.” He said he
could get a hundred dollars to build a
gravel walk and a rose garden but
could not get ten dollars with which
to repair a broken steam pipe In an
army barracks.
The next outburst by the general
brought forth his description that
money being handled by Relief Admin-
istrator Hopkins was stage money;
that nothing worth while or of a per-
manent character was being done with
that money and the explanation that
he called It stage money because “it
is being handed around and you can do
nothing with it in the end.” His plea
was that some of these funds which
he said were being otherwise wasted
should be employed to build structures
of concrete and steel “that can be
shown to our grandchildren 50 years
from now.”
In hearing General Hagood’s testi-
mony, the committee understood that
the War department had given him
permission to speak freely. Indeed,
such assurance had been passed along
to the committee from the War de-
partment but apparently the War de-
partment did not know what General
Hagood had on his chest. If it had
known, it certainly could have ex-
pected exactly such expressions be-
cause General Hagood never has pulled
his punches. He has said each time
what he thought.
* • •
By saying what he thought, however,
he undoubtedly moved across the line
of discretion. Army officers must
guard their speech. They are under
disciplinary regulations. It has to be
go. Otherwise, we would see frequent
outbursts by army officers in opposi-
tion to established policies, rules and
regulations and It takes no stretch of
the imagination to see what a disor-
dered mess would result.
* * *
On the other hand, Oeneral Hagood
was certainly privileged to believe that
his observations were
Then the being made only for
Storm Broke the committee of con-
gress before which
he appeared. The doors to the commit-
tee room were closed and locked and
only committee members were in at-
tendance. It happened, however, that
subsequently the stenographic record
of the committee hearings was made
public and when that happened, the
storm broke. Almost simultaneously
with the removal of the bond of se-
crecy on the committee record,, the War
department order dehorning General
Hagood was written. When that hap-
pened, the politicians literally blew
up. They shouted charges of censor-
ship, terrorism by the President and
Secretary Dern, dictatorship, political
punishment and half a dozen other
vicious accusations.
A few of the administration spokes-
men in congress defended the War de-
partment action. Almost In the same
breath these administration spokesmen
sought conferences with Secretary
Dern and others in an attempt to per-
suade the President and the war sec-
retary to soften the punishment but
those moves were futile and Represen-
tative Blanton, Texas Democrat, shout-
ed on the floor of the house that the
Hagood punishment would cost the
Democratic party “a million votes un-
less it were withdrawn.”
As a part of the defense of the War
department action, Gen. Malln Craig,
chief of staff of the army, made pub-
lic his memorandum to the secretary
of war respecting General Hagood’s
attitude and his testimony before the
congressional committee. In the course
of this 2,000-word memorandum, Gen-
eral Craig described General Hagood
as a “wise-cracker,” and he was prob-
ably correct in so far as General Ha-
good’s remarks about stage money were
concerned. Yet, I have found very few
among the Washington observers
whose opinions are worth while who
saw in the Craig memorandum any real
justification for the severe punishment
meted out to General Hagood.
The order still stands. General
Hagood is going to his home In Charles-
ton, S. C.t “to await orders.” No one
familiar with the army procedure ex-
pects that General Hagood ever again
will be given an army assignment. He
will be sixty-four years old next year
and at that time automatically retires
from active duty. So there is hardly
any question but that General Hagood
has held his last command.
The whole situation, suddenly come
to be known as the Hagood case, Is
bound to be multiplied and mirrored.
It will figure In the coming political
campaign because, however justified
the War department action may have
been in the interest of discipline and
good army administration, there are
thousands of Individuals who never
will be convinced that the Hagood re-
moval was for any purpose other than
as punishment because he criticized
New Deal spending policies.
* * *
Although there Is, and can be, no
connection between the two, it was the
basis for a really hu-
U. S. at morous reaction that
Dallas Fair during the time when
the controversy raged
over General Hagood’s removal from
his Texas army post, a federal govern-
ment committee was busily engaged In
making plans for federal participation
In the Texas Centennial exposition
which opens at Dallas June 6. Uncle
Sam Is spending $3,000,000—the largest
sum congress ever has authorized for
federal participation in such a show—
so that twenty-odd government agen-
cies can display to exposition visitors
what the government has done with its
billions since the cards were shuffled
for the New Dseal.
The Agriculture department, as usu-
al, will be represented by the largest
of all federal exhibits. The Com-
merce department and the State, War,
Navy, Treasury, Justice, Post Office,
Interior and Labor departments will
have their booths or buildings. The
Federal Housing administration and
the Farm Credit administration will
be there with displays of their wares,
and the Public Health service will at-
tempt to further the cause of health
in its usual splendid fashion.
One unusual feature of the govern-
ment’s participation will be a negro
building in which it will tell the story
of the negro race and Its progress
since the first slaves were brought Into
America. Plans call for the use of
negro labor in the construction of this
exhibit building and as far as possible
negroes will prepare the exhibits.
© Western Newspaper Union.
The Bridal Veil
Why the bride wears a veil at her
wedding has been the subject of many
an argument among scholars. Some
authorities believe that the bridal veil
originated in the ancient practice of
hiding the bride’s face to show her
submission. Others contend the op
posite—that the veil originally was an
emblem of independence.
BOYS! GIRLS!
Read the Grape Nuts ad in another
column of this paper and learn how
to join the Dizzy Dean Winners and
win valuable free prizes.—Adv.
Slaep After Toil
Sleep after toil, port after stormy
seas, ease after war, death after life,
doth greatly please.—Spenser.
Needed Cure
An able-bodied sense of contempt
would head off many a demagogue.
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Hospital tests prove that Suavinol,
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Tear out this ad and mail it with
your name and address and the
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Caldwell, N. J. Sample of Suavinol
will come to you in plain wrapper.
For Hardware, Mill,
Oil Well Supplies and
Automobile Tires,
Tubes and Accessories
F. W. Heitmann Co.
Houston, Texas
CLASSIFIES ADS
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Lane, Ella E.; Plageman, Cecile & Plageman, Annie Louise. Shiner Gazette (Shiner, Tex.), Vol. 43, No. 12, Ed. 1 Thursday, March 19, 1936, newspaper, March 19, 1936; Shiner, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1160791/m1/2/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Shiner Public Library.