Joseph P. (Joe) Kennedy, Sr. Part 05

FBI Vault

Joseph P. (Joe) Kennedy, Sr.

Joseph P. (Joe) Kennedy, Sr. Part 05

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Document text

FEDERAL BUREAU OF INVESTIGATION
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FILE DESCRIPTION
SUBJECT: JOSEPH P. KENNEDY
FILE NUMBER: CROSS REFERENCES
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II&#39;§iIII§.I92IIIIIIi&#39;Ii&#39;IITI:% I
MARITIME BRUUPI
Iliiominations Sent to Senate. -
Seiects Kennedy. Former
&#39; S.E.C. Head. as Chairman.
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I 92I E  »
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tKennedy as Maritime Chief
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lAfgiiioved by Senate up
Appointinent of 9T l5i"%&#39;|g§ g&#39;g&#39;enneriv as chairman. arrl four..u....... M ...-...le.,.... _ m92924.n. .-..1f...:._-:.. .....s M-..92..-..-,..=|Ulllnl db llICl[lU921B TI {HE A92l i].ll1lllU 92.&#39;92&#39;ll1Il11D-WIUII, W03 G1,J}JL92l92C92{ye=lerc1a_v by the Senate92Comn1erce Committee.
The nominations will be reported? + s " P
favorably to the Senate today for
formal confirmation, which is ex-
pected to be voted tomorrow.
Resolution Adopted
&#39;I&#39;he committee&#39;s action came
swiftly following passage of a joint
resolution exempting Kennedy
from the eligibility clause of the
Copeland Marine Act. Under the
Copeland law persons having hada financial interest in a shipping! Committee. declared delay in con-|OnSenator Robinson told the
Senate:
Mr. Kennedy possesses un-
usual qualifications for this
position. He is 1 man of
proven ability and can bring
to this office a. wide experience
which will he oi invaluable aid
to the Gmcrnrnent.
Senator Copeland ID!. of New
York. chairman of the Commvrce
cg]-npan_92&#39;. within gm-Ce ygaryh 31-glfiflllillg the Kennedy nominatl
inelieible for the commission. Im- 5 would endanizrr the Go&#39;~e1&#39;n-
mcdialelv on his nomination. Ken-&#39;
nedv informed the committee he
held stock in the Todd Shipbuild-
in: Company.
Republican and Democratic lead-
ers alike indorsed the resolution
which would pave the way for Ken-
nedy&#39;s confirrnation. High tribute
to his recent service as chairman
Commission, and to his qualifica-
tions for the shipping post was
voiced by Majority Leader Robin-
son and Senator Vandenberg  R-3.
of Michigan.
.P&#39;clbVdbof the Securities and Exchange
I
lmeni-&#39;s entire merchant marine
program.| New Ships Needed I
He said:
"We have laid rlown a policy
designed to promote the re-
building of our merchant ma-
rine. Unless this program is
successful. within 10 years
there won&#39;t. be a ship on the
seas flying the American flag.
We need a man such as Mr.
Kennedy to get that program
underway at the earliest mu-
ment."
Otllcrs Whose nominations toI&#39;l8¬ an en er . . ~ &#39;y g _the commission weie approrcd by&#39; I am veldv anxious tn see Mr.
Kennedy confirmed. There are
perfccTr?"o-bvious reasons why
the prohibition contained in the
law ahould- not lpply in his
case." v
/. /. ///I. ,1  / I, Ll,  |
I, , . .1---- -4 1. - , /1lthe Commerce C0ml"ilit.iee are
A-rlmirals P " 1 cl
e Edward C M01i o r m e r Re?-eseni-at-1&#39;vo ii-om&#39;
Maine, and nom:=_s_-3-51&#39;v-I -
vl;;:d...,ot Penney r .
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ASK STUEEINE
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"-&#39;*92&#39;i"7&#39;M- =15"? iiTmPG 15.191 §:§1T§.<i92.&#39;£&#39;§T-F
uent snip constritction and :&#39;e1&#39;1air
&#39;é:i1tlir&#39; T<TEl&#39;§I1ip§&#39;3Ya_S&#39;C£Jrt3___§_t1_ ;1 1115&#39; 5lib$ldl3TlCF3.; N  _" i
TT1E&#39;lRobit&#39;1s Dry Dnck Co. at!
Par-oklyn and the Ttctgtcn is Langi
plant. at I-iobokr-n, both Todd .1-ab-t
s1ci.a1&#39;1es. are a:.ti:r.g the 23 plants!
i
iaft:-zctcd by.t.he st.rtl-te of 15.000
shipyard 92t&#39;0rkc;&#39;s in the N-CW YOTI-I
area, now in the eighth weck.
Curran paintcri out that I-£¬F»°-==&#39;§-&#39;
repair work on ships was being
neglected or was b£lil&#39;t: impro-p."rl_92&#39;
perforntcd hy the inexpcrienced
str1l~:ebreai:et&#39;s.
E.¬D.-92.92&#39;C-ER LIVES
pztrdtztng the li92P_= nf P6-~"1l¬-*1-i
and rrrws at. sen. Curran said. "IL"
is a mmiltinn which is beir=&#39;.: prn-
92-nkvri ei:t.ir=*l92&#39; beclqttsr-r  gill;irnrv and illeza 1&#39;1 Lt- »igntatptnies Ln comply 92?l&#39;Tl&#39;i"."I&#39;i&#39;I!"Na-it.io=?FLT=W?.- Relations Act lmu to
SH. down around a. table Hrtd I92¢t;0-
i Lia t_-111 th ih cu r""&#39;~&#39;&#39;t i Ik
r
I,,
; The "I&#39;ttin1aLu|&#39;P Tom Gtrd1ers,"] .
.Currart said. should have all support! &#39;,Wi&#39;t1&#39;?*&#39;H&#39;R"!&#39;F"fIra&#39;t thc-v-an-_-3.&#39;.:-calls-cl &#39;
,at.icntinr1 to PWA funds that have 7
ibee-rt allotted for ship construction.
1 Curran said that if en:l_92&#39; efforts
are not made. to brim: about 192£";0-
|!l:tt0ns between the I. U. of M. S._
iW.. the N. M. U will have to take:,;pr0n.pi. action in support. the strik-E
.iling shipyard wozktttzs
CITES M.92i&#39;0R&#39;S A TID.92&#39;
The action or .92*t-1ym&#39; LaGuarrlia
tin stnppinfr all rm" work at the
United Shipyards plania 92.=.&#39;h.irh aisrt
ltakes A stubborn s=t1tfi:c1e aizzttnst
nE&#39;.£!-:>t1a:in::_ was cued hr Curran as 7I-
;the pmper line of action.
J Three .=f:&#39;ikchr&#39;t"&#39;~k¢&#39;rs werv ar-
.rr-sred at the Rcbtns yarria _92s&#39;=&#39;.er-
rlav and a t&#39;nt1r"h was still sottcht
|Ia=t night hr twain: part in the
bP3llnf: of Pet:-r Burban. a sirikri.
itrhile tiw lntt-*1&#39; sat on the porchr-.&#39; his hornr ar 339 92an Brunt A92&#39;e., 1/
B:&#39;s:~l4lj.&#39;n, 9292&#39;O i:"mId3~&#39; night.
Bu-rban who was in a ct&#39;tt.ic.-.11 con-dition Fri i.1.92&#39;- Jul: 15. when police -92 "
:1."-au!:.ed him b:-ut:tlh&#39;. was the X I ;_
chic! wttnes< in the hearinz nn the 92 ,&#39;
ma-&#39;ors inv0.<ti::a:i-an of Th? p.&#39;1.:r&#39;Q Y
strtkns 1&#39;t."i&#39;l&#39;i&#39;é&#39;Robins
that day.-. _._ __ _--1:2: 14.-r.-;»;r-__,.-~&#39;-"_"&#39; t,
-- &#39;9292
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5:. ,.;K_:_.
Z
, __ _,..,?Y_:,&#39;T
fr}??-&#39; ..- -> &#39;.&#39;1--_, 92-
Q F  7--.-_  -....e . .&#39;"° 11 - -._.___.._.._¬_ J  .. T, !,,_,...ew earrrens Unz0n- &#39; ~in .
/Step for Labor nity
National Mziutime Union
Strengthens Cause
of Progress - 7
By Roy Hudson <_
Ihortheiirsttimeiniishistory
the powerful United Fruit Line has
agreed to recognise the right oi
it&#39;s seamen to organise and nego-
tiate union agreements.
This victory over the notoriously
open-shop United Fruit Company
also marks the birth ed a militant
progressive union, the National
Maritime Union.
The outcome or the recent United
Fruit strike shows the correctness
ottbestepstakenbyiheliastern
and Gull sailors and stewards in
iortning the National Earltime
Union. As members of the Inter-
national Seamen&#39;s Union they had
been deprived oi all rights to de-
termine who should represent
them and how their union should
be conducted.
They formed the National Marl-
time Union in order to maintain
their organized strength and use
it to secure recognition of their
elected representatives, to conclude
union agreement; and improve
wages and conditions. The United
Fruit settlement shows that
seamen, united into a poweriul
National Maritime Union, can
achieve these aims. -
SAME FACTORS AS IN C10
The same factors that brought
about the birth oi the Committee
for Industrial Chtanlration also
made necessary the formation oi
the, National Maritime "Union.
These factors are and were the un-
democratic policies oi the A. F. of
I....rea_cticnari, their failure to
organise the unorsanised. their
blind hatred of everythins DIO-
gressive and their 0i1l>qIl"°n W 111-
dustrial unionism.
Truly the record oi the interna-
tional ocials of the IBU and&#39;oi
the Executive Council of the A. F.
o£Lshowsthattheyhavebeenthe
enemies oi unit! and procreat-
They have destroyed democracy in
the mo. The! openly mmlwl
scabs to break the historic seamens
strikes. They refused to reoonize
the omcials democratic!-11! elwied
by the membership.
These labor parasil Illl
mouths of negotiations, refused
to agree that honest democratic
elections be conducted. They
blocked the National Labor Bela-
tlons Board from conducting
ieieeusm to determine the collec-
;tive hill-I-Ill  at the
1121!. -
:-Oullcudayilaeysccsrcdaufr  3.23.: 2 1&#39; .._.§.;&#39;-
 -. " r &#39;- ..  "__. . .. .. . . .i &#39; .- -".4 2 -  ..- , r  -;.__:5.;.%-.=~; >gg.-._ _5 "- .- -:1. .&;x1*=>-&#39;=:=zE2-&=§:s?;¬%&#39;.. I- .- : .- 2-<&#39;g~1;%1:§£Izi:§:§a§=;sv- zin-._. J . X ..,_ .~,,_ H .1,--.-92.<:.:.__; -. ., -  .2 ...===:-a-=-->.>  = i.5;-.;.;§_I-. -&#39; =5_é1_1&#39; .11:-K  ,,ls,m<&#39; . ..tk.,._, ,,, . .,_ ..,.Y. .  _ ..&#39;-~;-.<~:..=:-~.-.2-:>..:» &#39;  ;;:=;:i  , ;.;;;. -- p?-e-£1?-*:*.{§.f..:&#39;-3:;-:1  &#39;-=&#39;="=""  -=~&#39;;-sf-§=;:-§;_.;=l??8"&#39; _. -..  - _ 1%
_ _  ..  _ WP . ._ r. p. , 153&#39; 3 .5: ; -._._;-;-1;,     L&#39; &#39;=--iv -,-  its  , -. &#39;  &#39; .   --yes:-...=  ,_;&#39; . -it ~ > 1
._.-.   .- -:..i "~g.
_  -
-1;,-:¢&#39;:. f._I, .-.  &#39;.  :1 1 I .I&#39;-.&#39;  "-= .&#39;:- ;"  -
92 v._ . . . ____.. - _ . ._., _,
ROY UDSON
injunction raining the elected
oilicials or the Marine Cooks and
Stewards Union from function-
ing as such._ The elect of this
iuiunctlou is to prevent the mem-
bership es the union from
democratically determinin: rho
shall represent them and now
their union shall be run. The
membership of the Sailors Union
are confronted with the same
threat.
GAINS IEOPAEDIZED
Thus every gain and right of the
seamen is jeopardized. Their gains
are many. The tens of thousands
of seamen are united behind the
oicials they democratically elected.
Through their organised action,
the seamen have forced practically
every major steamship company to
recognize and deal with their
elected representative. Under the
leadership or Joe Curran, Blsckie
Meyers, Jones, Jerry King and their
other elected oiilcials, the seamen
have improved conditions, increased
wages, organized the unorganized,
and Iorced the United 1"ruit to
deal with the union.
The policies or the repudiated
oiiicials and the eiiect oi the in-
junction would wipe these things
their democratic rights, ensiavin
them to admitted strikebreskers
and weakening "their organise
strength. _
The seamen are determined to
continue their march iorward.
Denied their democratic rights In
the l.S.U., they had no other al-
tcnative but to constitute them-
selves as the National Maritime
emocra c or n mi: the pa:-pose oi estab-
lhrcugh which they  -
tain  secure recogni-all out by robbing the seamen oi
8.
dOUnity Convention
as Needlo Pushing
Many Gains
thin of their elected representa- 1
ves and conclude union agree-
suents.
In STRONGER POSITION
United in the National Marl-
time_Union. the lens of thousands
of Eastern and Gui! seamen, who
have conducted such a splendid,
persistent light, will be in a
stronser position to defend their
own interests, to cooperate with
their brother marine unions, and
to help in the formation oi a na-
tional maritime federation.
Oertainly the iormation oi the
National Maritime Union strength-
ens the iight for a united national
seamen&#39;s union. The undemocratic
policies or I.B.U. and A. 1". oi L. re-
actionaries has destroyed all sem-
blance oi a national organization
oi the seamen. Further, these bu-
reucrats no longer represent any-
one. Oertainly the seamen can ex-
pect llttle from these people in re-
storing a national seamen-s union.
Only through the convening oi
a national unity convention by
the district unions in the East
Guli and Pacific will it be pos-
sible to hammer out a program
and policy that will again unite
all seamen into one national
union. The consolidation oi the
new union of the Ba-stern and
Gulf -Jlcrs and stewards will
make such a convention realis-
able. And the members oi the Na-
tional Mttritirne Union are pledged
to support such a policy.
&#39;Ihe National ritirne Union isE E FE TE 5 5 s also correc stat s suc
unityoonvention is of -vital im-
portance in order that the seamen
can nationally determine their at-
titude towards the 0.1.0. This be-
comes an important question espe-
cially in view oi the reiusal, over a
long period of time, of the A. II. of
L. Executive Council, to recognize
and protect the democratic rights
oi! the membership oi the 1.S.U.
The unication oi the lhstem
and Gulr sailors and stewards in-
the National Maritime Union will
strengthen the cause oi progress
and the fight for a united trade/.5
union movement For this reason all &#39;,,
1I1Og&#39;ressive forces in the labor/ /
H movement should givetiohal Maritime Union%elr /3! L-
|!A"_y WORKER ;.92&#39;;>i~ run
I-HY 8 ii¢233@°RD*13/» &#39;/ ;>&#39;:>"/i-é 0 94

i . D.  K ed M ki Diagnosis of Industry in Hope of Restoring it to Former Glory.
~11-"&#39;
 1
{Z-1? »
92 1.-..-§= - -- _ .1?&#39;_- :r- .--
-_-as-.&#39;;.
-"2"-ii .
;1=f:"
F
-.*"&#39;,..&#39;-
.1;-..f" I-Q
15?. I -
_-_92&#39; f-sq, - &#39;
7" .. - ;-
 1_.__._..____ ..  F
,;:-3%;&#39; -ii;-:__.. .e.,_».i - .-1:»Q- - . 5¢&#39;   // ii! KQ. more for-shippiog<n111sr
octor enn y a ng
er of Pacic Coast l&#39;.ongshore-
171871.
BY J01-IN C. HENRY.
HER-ICAN shippinl, an enter-
prise oi romance and tradi-A tion for those who participate- in it only casually, but one oi
livelihood and prots ior its workers.
and operators, is under oing an ex-haustive emlo m.
-Under the direction oi Joseph P.
ennedy, one of the Nation&#39;s lore-
&#39; i sick. industries. the new aritime Gom-
.-:-Ii_;--" aw 11%-|----Fa-sost practitioners at Xian oi cui-in:
mission is authorized give the slog-
glng American merchant marine a
transiusion oi cash and ships and
working standards designed to rutorq
it in its rank oi pre-Civil War day! as-
a world-wide leader on the seas.
True to the best standards oi the
healing profession, however, Dr. Ken-
nedy is prescribing only temporary
cures until such time as he has be-
iore him all the symptoms necessaryfor s complete ind ac mli.f1"T7&#39;U!lI92ilch diagnosis, t oped.
a re1uvenatio_n_ma1_be_e!ect-ed. _ ___=found itseli laced with a mam o un
proved data and contradictory opin
ions. that it would be better to do-
pend on information lathered by its
own agents. the commission a few
weeks ago enlisted the aid or such au- 92
thorlties as H. I... Seward, proiessor of Q
mechanical and marine engineering i
at Yale University: Thomas H. Besly,
dean of the school or Foreign rv- y Hg;-W Bfidggg,  ,_ 1&#39;, Q, le|1d- l Nahum! Md Emma! _ _pr-ehensiveness. Results, he empha-
weeks and the study should be pretty
well completed by the end of October
The magnitude of this task as well
as a picture oi how much iniormationi
is neeesary before the ailmts of
our merchant marine may properly be
diaznosed probably could be presented
Lines oi inquiry now3955&#39;! rm &#39;1&#39; °°m-"11""-1-aisai, must be apparent wrthnra-isw
ice at Georletown. and Prof. Grover .
l-luebner, specialist in commence and vtransportation oi the Wharton Bchool
oi Finance. with these dlstinruished 11
aidu and advisers, the commissions
own experts were setat work imme-
diately to make a comprehensive sur-~
vey of the shippinr problem. 1
Because-the present temporary op-er-
sting subsidy contracts are due to ex-
pire at the end of this year and nego-
tiations or long-term agreements are
expected to get under way by Novem- . Grouped into seven related sub-
jects,&#39;an outline oi the survey follows:
Forelln Trade:
1. are ships subject to our own eon-
trol necessary to insure uninterrupted
movement of our exports and im-
ports? &#39;
2. Do American vessels protect om
traders against exorbitant rates or ss-
sure them oi better service?
8. Does the merchant marine liseli
words. does trade follow the nag?tend to develop new markets; in otheroe Ryan, A. F. of I. leo-
Atlontic Coast ionoshon. &#39;
 enter: Joseph P. Kenn:
chairman of Maritime Cc
mission.
6-="&#39; areiier émtm we
prot? 92 -
National Delense: &#39;
1. What does the Navy Md-
the way of auxiliary Ipnnggg?
much of this tonnage is now av: better means than akeletoniai 5" WI exports oi other co .by no  mch we can procluoe at an
I111 PTO?-ected trades?
2. What dbes the Army requ
Ii-11° "Y 0! woo and sunnlr sh
8. What is the relationship is
merchant shipping and the air as
4.1a merchant shipping net
to preaawe the shipyards and i
lldlng s1-ups?s.1:>oe| the exportation or  -_&#39;ber".rIl."-le latest. Chairman Kennedy mm an mm, Wm the ml, i -HOW immrr-mt is cumsha lmpnued upon M "7"? Fwrllmg of water transportation at: * -&#39;-7
me nwumy mt speed &#39;3 Wu "&#39; mm" 4 which we are at a disadvantage be- /,_,
_ _ _ WASHINGTON STAR soirsooonuso. ssps 19?,7~ 4//-~=~@ "Km <1;IND13 n 6
J
pp V W

I... ._
sblppingas a source of trained men?
labor: , -
- 1-,1-1 11 many people<-rphe--andlivin  diad umnnlns?
_i .&#39;r,  r
1"-7-.f_.._.
~3~ .-_
.9-.7 -7es. _ i
ho":
t, .1"-F.
&#39;11 - . u.~.= "&#39; l
_¥:r -,5-_
&#39;
.11,
-am
av
&#39;?:
¥<?E}.; r_ s
.-_;
&#39;.&#39; ;
1. , _ =5 .35, -
~ §:";&#39;;&#39;-
_-t_;:-Te.
-..92. .-
L2. is
.3,_ _a
&#39;___I2. What are the earninsa of!
workers in the shipping industry and
how do they compare with those cit
other industries? -
8. How do shipboard working oondi-,
tions compare withthose ashore and,
those on ioreign vessels? . ,,
4. What can be done to protect;
shipping against costly interruptions:to service?  |1
5. What steps should be taken to"
develop a sea-going personnel?
6. Is there an adequate supply of
trained shipyard labor and auiilcient
management ability to direct it? .
Capital: 7 I,
1. I-low much money has been in-ll
vested in our present foreign-golnli92- *&#39;  bl 1:!
,a---t-
l
u
aidiu, must be paid to domestic opera
3-i.ui. &#39;vv"hit, thin, will heeplrrnm-can -
Obviously. it is impossible in a
single newspaper article to present
what facts already are known in con-
nection with the many questions posed
here. One oi the Nation: "big" mag-
azines devoted its attire September
issue to the merchant marine prob-
lem. but doubtless Dr. Kennedy&#39;s
special survey squad will develop con-
aldefable information not even an-
tlcipated. ,
It is a fact that the line oi inquiry
. mncern to
slon is that into the labor factors in-
fieet by private invastcn and by the
Government?
2. What is the earning record and
the reserves oi American ship lines?a. n the industry suiilciently mud,and protable to attract large-scalinvestment, or can it be made so?
4. What areas are benefltted mosti
by osperous maritime commerce -i
and here dou the industry&#39;s annuale ture of $200,000,000 I0? H |
Beg ents of United States:
1.t0&#39;nai do we need to protect 1-
commerce and to serve as an auxili
of defense?
2. What types, sizes and speeds best
iii. these requirements?
8. Should we build sup-erliners? l
4. What are the requirements of
_individual routes? - 1
5. What is likely effect of recent.
aeronautical developments on ship-
ping industry? iPolicy of United States: " 
i. Should we build in private yards,
Government yards, or both? - 5
I. Dan the ship operators raise nec-
cessa down payments lor privatfbuildag?3. ow can the public interest bevolved. _ ___%7
Crlsscrosecd with innumeribie bit-
ter-esniass rivalaries, America-rr-snark
time labor has been violently troubled
for the last several years. Btriku,
both authorised and "unauthorized,have kept ships from sailing. Inter-
. union ghts among seamen and long-
ahoremen or between them have
blocked the loading or unloading. And
the industry now promises to be the
neld of play for the most intense
strife yet stag-ed between ti: C. I. 0.
and the A. II. of L.
i Building llilit-ant Union.
the moment, as in other ma r
in _tries,theC.I.O.appea1-Ito
!
1
safeguarded ii Government blii.lds=ships for charter? H
l. It costs substantially more to
build ships in the United States. &#39;1».
this difference must be added the"
subsidies enjoyed by ioreign builders.
What will be the total buildins cut?
t 3. It costs more to operate vessels
under the American ag tbanqsnkr
fogigp_sns. The amount of this
dierence, plus torelgmnperatlng subf l
,-lea-.a-1-D-to -:.4- ---_---.1--s_-92_A~ -
-.~.
aw 1 Ydambnal Maritime Ilniun..nn.,th
still standing oi! any definite alia-
g greatest headway with y |lI
lama by, the leadership of the A.
of L. As their instrument oil-Ah
Iin e Atlantic watersii-5-L.-_*=-&#39;3.»L. *aTHi? International Beams
Union, once a powerful voice for
men who go down to the sea1 shilli. but now badly raided by
.N. . .
la face-lifting by0- a
U and in process of geti
the A. F. of
- Itliteglsls.
seaman Joe Curran building a mili-
Atlantlg: and Great Lake fronts. Tak
inginonlythemenwhoactuallygo
tosea-,theN. K.U.isco-operating
closely on the Pacific Coast with those
who stay ashore, namely the leng-
shoremen member} _of ue Interna-l
tionsl Longsho-lemon and #imhoose- ,
men&#39;s Union, led by Harry Bridges. I
The Pacific sailors, however, are -,
tion with either the A. I. of L. or theC. 1. O. as they mill about imder the E
leadership of Harry Lundeberg intheBailors Uilii oi the Piiii. 01166
they were members of the A. 1". or 1...,
but they felt their independent action ,
has hampered there so they-walked?
put; now Lundeberg fears the same
situation might result from atdliation
with the C. I. O.
On the docks of the Atlantic C"
he strongly-ruled Internatio
gshoremens Association of J .-
R , working with, but not d
i
A ii
I
iIn t
In
seas
____!+_ I  ___ . __L _ 72 &#39;1&#39;ET;E&#39;,eor oe: and men-are-else three euentioll to
a . _e _.__ _-M ._ 7 -Alan".-one.   ,>§.;.ns-..I-1&#39;-sis. - 4-,! Fully Aware
s That medicine
d
tof Problems.
man Kennedy
fully aware of the grave problems r<
ent in this complicated labor 1
ure goes without saying.
"The labor situation is to be
aubiect of special scrutiny," he
marks in discussing the present z
vey. Shipping gives employmeni
thousands of men, ashore and an
The industry in turn cannot pro-*
without the whole-hearted co-0
tion of labor. The Government.
a partner in the business of si
ping, wants American seamen to t
the best possible conditions abc
ship and the fairest wages. At
same time, it cannot permit iactioi
ism and disloyalty to jeopardize
position in international shipping. 
Nation has a stake in our marindustry which transcends the
oi ther capital or labor. -._§!f
e problems of their must somehow be solved gsar to interest the investing u
an maintain a competitive poai
at sea.
Already, on the Atlantic, Pa
and Gulf coasts, members oi the c
mission have held extensive hear
on employment and wage condii
in ocear|goi.ng shipping as a basi-
determm ing fair wages  wor
conditions.
Conditions Dscribed.
Borne oi the testimony recs
makes it more understandable whg
men who follow the sea feel it to &#39;
advantage to face their employer
masse
seagoing ternm they told oi
ing in crowded fo&#39;csies where an
tion was impossible and vermin
numerous, o! inadequate toilet
locker facilities and complete ls
bet-1._1i.n_g faculties, of garbage pil-
companionways adjacent to
qualrters, of bunk sheets being chi
only once a month. of less than
ncient food or poor quality, ar
being paid o in I. O. U.s. T116?
of employers blacklists and of
wormrrg conditions that a man a
might avoid by quitting his it
refusing to do his work. But oz
that would be mutiny, ar.
they turned to organisation. That the oft.-times hard-pl
ship owners find it nancially di
 m correct some oi i-time oonditirI hm; mg. Both aiqp-=4»:ggiinesy and his aides will iln
Tanawers.
qr
,-a

0-_.-I
v
,_r l.92-rI&#39;92 II 111&#39; "tin lj:92____l
mu mm nnW&#39;
-MARITIIYIE BOARD
_ Would "Succeed Kennedy,
.--&#39;-""J ""gesible i New Envoy lb Britain.
WASHINGTON. Jan. B  A. P!.--I
Frie ds of
S. mi revived talk today of his_,,_..--
sppo ntment to the chair-:
manship oi the Maritime Commie-&#39;
sion In succeed Joseph I,!cn-
i ._...|--
ncuyiPresident Roosevelt nominatedi,
Mr. Kennedy yesterday to be Am-i
hnsssdor to the Court of St.
.inn1tss, leaving open the $12,000 Q
year post which Mr. Kennedy once
referred to as the toughest job"
hr had ever filled.
Admiral Land, retired chief ni
the Navy&#39;s Bureau of Cunst|&#39;UC|.iu11
and Repair, has been a member of
the Maritime Commission since last
April. In 191? he was in close as-
sociation with President Roosevelt,
then Assistant Secretary of the
Navy, and they have been friends:
for years. He is 58 years old.
Should Admiral Land become
cimiziman, Represetttativ WI-nd
Democrat, of Virginia, &#39;i$"¢x;éEi&#39;§é
to urge the appointment of Allan D.
Jones of Newport News. Va., to his
place on the commission. Mr.
Jones now is assistant director of
the_ Commerce Department&#39;s Bu-
reau oi Navigation and Marine it!-
speciion. -
Along with Mr. Kennedy&#39;s name.
Mr. Roosevelt sent these other
diplomatic nominations to the Sen-
ate! Hugh R. Wilson, Assistant
Secretary of State, to be Ambassi
i
i
a.
dnr to Germany; Joseph E. Dat-ins,
A bnssador to Soviet Russia, to e
A bassador to Belgium, and N 
m n Armour, Minister to Canad
to he Ambassador to Chile.
Clipping! ix 5/fur.
I.I.
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from
1[{D,Bj,iL]h- N1 Ii-5 YOR K SUN
DATE:___
é /- 7J3&#39;J"J 5&#39;;/i FORWARDED 31&#39; mrw Yom; DIVISION
".¢ .-"o1
I
 -...,- - s. .

1
s. &#39; , i
.1-0llO1ll*i?{&#39;. in port, is ii-E"ftr+*o-1"&#39;ic radio oddicss gram lierc inst
chi bi! fosgiili P _&#39;,@du. rl:oi&#39;r-&#39; °  . _""_ .in of fir ilo:"iiiruc  .riiiiruis.sion:
There has been some disposition
"if here. I understand, to regard
the West Coast as the "forgotten
man" oi shipping. I want to as-
sure you that there is no Justin-
;,si:ion for this view, The members
of the Maritime Comrnimion 2111-.
.ui&#39;_v ccgimaiii. oi the nerds oi
.1: Pacific Brains. We have doiii-,
.i-id will c-oiitiiiue to do, everg-
&#39;iiirig within our power lo protect
.lI2 ll]l¬ll.FlF of this great area.
Gliipping rwrliups mole than any
-flier ionic.-,&#39;:j.. rniist be &#39;i&#39;l0.92&#39;Ctl sf;
&#39;- rlliunnl l!ll.lCl prise. On no nllil I
i:i_is can we jiisliiy the pa1&#39;l.lr&#39;i-
patlon oi lh* Foderal Go*rcrii-
§|£l&#39;ll».
Ulll&#39;OiIttllli1l&#39;l_92&#39;. l.lllC are two
factors tin tend to miiiintc
..¢1aiust our cfiorts in b-Ch&#39;lll&#39; of
I .i.1i[ic Coast si.ip_Uiig. Ono is tho
fact that ["f92ilOl!llC lows are no
i~spect-or oi regional boiinrlarics.
lie other is our lack oi £=iicl&#39;lOll&#39;j
in deal wiiii some oi the mati.l":S
&#39;-r issue.
There has hren a great ricol
oi i:ii.&#39;.=cur.sion, not only on the
Coast but iii Wasliington. too,
-lbCut thc removal of Grace Lines
&#39;e.=Fels from the iutcrroastai trade
nild the piospcctlve removal of
"--i Panama. Pacific vessels. These.-35:15 were built wit-h G0vern- l
-nent loans and rrcre operated,
mill recenih. vi-ih the nssistniico
T nceiui iii;-ii .r-oiitiwicls. &#39;,I&#39;i".i&#39;Y
l.iiiit up ii iph-uiiiri iiervicc, liolii
T&#39;|i.~3PI&#39;|.gET mu! frciuhi. bPl92vH11
&#39;1ii- East mid 92&#39;.&#39;.;.&#39;. "~-sis.
.0:-isms oi $-&#39;F..31I0,01IIl
Tiic mcirlizint maiino art of
iii. whicii replaced the systein
-f mail 1-ontrnci". with direct aid.
-:i.92&#39;ided that no vessels in domes-
Ir. scr92-ire should be Qi.tjblc_ gm
-2-minim, This rnrarit a oss of
We lllll $400.Dl&#39;i&#39;fi a year in silh-sidies for the Grace ships and an
a al amount for ag;
arna Pacific vessels. Inasmuch
as both lines were already operat-
ing at a loss, even with Govern-
ment assistance, it is obvious that
they could not posihiy stay in the
trade when the subsidies were
withdrawn.
Panama Pacic Exes: for six
and a halt years in the inter-
coastal trade, we have been in-
Iorrned. aggregated $5,300.000.
These losses were incurred de-
spite the payment of subsidies.
which amounted to more than
$2.500.0G0 for the period. The ac-
tual operating deficit of the line
amounted to nearly $3,000,000. Gan
anvonc blame the owner oi this
line for throwing up the sponge?
Many persons have felt that the
iviiii-itinie Commission shoiiici do
something to keep these vessels
in the intercoastal trade. We are
forced to point out that the mail
contracts granted to the two in-
tercoastai lines were widely criti-
cized during the period when they
were in force, and did much to
undermine public support of the
merchant marine act or 1928. Al-
1.lI0l.l&#39;gh the VB!-25615 in quegtigri
made stops in foreign countries,
they were regarded, and correctly
so, as intcrcoastal carriers. They
were, therefore, declared ineligi-
ble for aid under the mas act.
Policy of sllllSillii!S
Tm question is immediately
risked: Why not extend the soiio
of ou1&#39; shipping policy to include
vessels in domestic trade?" Thg_
8"l5W"I&#39; to that question, I fear,
must be sought from Congress.
The Maritime Commission, under
l-he Dfenl law. has no _lUl"l$i§C
tion over shippin! in domestic
trade.
_&#39;I_h= whole Dolley of ship sub-
sidies, first off. is based on the
 at American  5
require ooiripensation to oirsgi;1
i ii&#39;*T3_""* > . ,-- .
. HeresKenned ¬S
the lower costs oi foreign opera-
ti h dr t ni have ou._-U-I-bl-ug i ec s &#39;been given in. the m -
ness the railroads!. and although
indirect aid is rendered today
{such as highway development!.
the cash support of one form 01&#39;
transportation at the expense oi
others is an exceedingly ticklish
proposition. I do not say that it
hasn&#39;t been done, or i_-.l&#39;iat it can&#39;t
be done. I want to emphasize,
however, that such a course should
not be undertaken without care-
ful scrutiny of the objectives to be
attained and possible repercus-
sions upon other segments of the
national economy.
Few nations have round it ex-
pedient to subsidize coastwist
shipping services.
92Vllal. About 0ll|c.-rs?
Subsiciizing one operator, or
group oi operators, immediately
raises the question of what to do
about the others. It would be
manifestly unfair to assist one or
two or the intercoastal line; and
not extend the same treatment0... ..II .92|92...._ A...._-4.... :.. ll-._ +-A -8-,DU Ill]. UIJIICI. ULEJFHIID LII LIBS lull-92-ll
Furthennore, once we establish
the principle 0! support for inter-
coastal lines, there is no logical
reason why the procedure should
not be extended to the coastwise
lines.
The payment of subsidies to do-
mestic operators would obviously
arouse intense opposition on the
part oi rival transportation
agencies. The railroads and busies
would have every justification. it
seems to me. {or demanding simi-
lar relief.
Moreover. we must not lose sight
of the fact that there are sub-
stantial elements oi our popula-.5S
L A.
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Il"&#39;-1"=="""- Q-5.13-Durltion, however. that may force
u.= to reexamine the whole inter-
.coastal problem. That is the
qtibstjon of national defense. The
President. concerned by the un-
settled condition of world aiiairs,
has urged Congress to strengthen
our facilities for--defense. The
lilcrclmni; Marine is an" lntegial
part oi the defense mechanism of
the Nation.
{tairflil S|ll&#39;f&#39;ij&#39; of all possible
contingencies indicates that the
military forces would require, in
the rirnt oi war with a major
pouar. at minimum of 1000 mer-&92.5a.m:.t-..umean going vesse,l§,_gp_q_
although many ne ships were
launched here during the war
period, this area has not partici-
pated to any great extent in the
building or recent years.
The American merchant marine
is rapidly approaching obso-
lescence. Hundreds of new ves-
sels will be requir d during the
next Iew years if we ape to pre-
serve any semblance oi eificiency
in the various trarlcs_ domestic
and foreign. some oi this con-
struction, it seems to me, should
be undertaken in West Coast
yards.
chant ships oi all types, aggre- Iva: Seek; Idq
gating about 6,0-10,000 gross tons.
These vessels. could be required
in the early sioqes of a conflict
for ice-liuicill liillitnry purposes
:1n<| 1epi- ,.-<ent- but a, Iraction of
H1! numbpf iii?! WDUICI ultimately
he 1iu=esssi;~&#39; in case of prolonged
11&#39;!.-:iili;ie:=.
.-&#39;9292":1ilal|It~ ships
tic now lime available under
i.i;r~ r&#39;92l!&#39;] l5.[;ill1 I-la-1: some 1400 seq;
guing 92&#39;C5>&#39;iE&#39;|&#39;? of 2000 gross tons or
l"l10|". Foil; hundred oi these ves-
5-r_-is are cns&#39;.agc&#39;l in foreign trade;
nearly SUD. including 300 tankers,
are in domestic trade; approxi-
mntrly 200 are in lay up. It will
thus be seen that the thousand
vessels consider-d no-cessary for
I1i_li92il&#39;£&#39;l.i&#39;Kl.l. military requirements
are at present available. although
the majority oi the ships are old
and slow and some do not meet
t?92.llPll~&#39;J?il If? ]llil&#39;f&#39;l&#39;l16l&#39;li.5 with re-
gai&#39;d to sire. Ii. will also be seen
that more than halt or the vessels
are engaged in domestic service.
It a]i*pe:1l5. therefore. that the
Unite Stalcs might well con-
3-&#39;i ir&#39;l "to .*;ul:»&#39;=irIi in: of vessels in
:i~~nu-:.iir. l1"o&#39;ii~ 1&#39;" a liintl 01&#39; im-
lihlwi ri:~i92"92v-".
&#39;92i|nl:r-1 l|||l&#39;|| r nf |{|&#39;rlll interest
lo ||i  92.&#39;~&#39;i-  "1-l&#39;:l is sill]! con-
;.**r*n¢-5:1. Ai!|fl"!il tllsmig II am glad to report. that Uiarg
is every indication that this will
be i.he case. The l"nmmissln|| 15
now seeking bids on 12 standard-
ized freight ships.
West Coast shipyards. like the
inlercoa-&#39;=inl lines. are victims of
the inexorable laws of economics.
The materials that go into a ship
are so distributed as to give East-
BT11 yards it derided ndvlitaqe in
construction costs. It is cheaper
to assemble the materials in the
EQSL build U12 hipk Lhefg an
then sail them to the Pacific than
it is to transport iron and coal
and machinery overland
Over Private construction the
CDl&#39;Ill&#39;I&#39;ti$-<i0I1 119$ I10 vqntl-0] what-
"&#39;¢1&#39;- with !BK8rd to subsidized
construction, however, we are
Derniitted-under the 1936 act-
to allow West Coast _92&#39;a.IdS a dir-
Ierentlal of 6 per cent over the
lowest bid received from any other
section oi the country. I do not
think that this differciitial is suf-
ficient to assure you any sub-
stantial volume of construction
under ordinary circumstances.
With the volume nl work in
nI"r»o@<&#39;I- iodi-.v. lww-&#39;w*1&#39;. l-|ltIc is
strong likrlilmuri or rmisldm-n,[;l;g
lmllciiurr romiun to ih|-- section of
I-he country.
I .|nh-- ii. 92:~|"rl. cnpnhlr: of t1lrn- l.|b,|-|||a|||i||[, "nl"|a
_ _, , ..._ . ,, ._.__ V, . -- _,...-to-.1&#39; l .1 -92.","92 - "&#39;_. - I . .92-J -_- *_- . I - -* I &#39;  .-._ _ _ _ . _¢_. , -1., _ _ .J11-. oniv way to ?.§&#39;
manent volume or rt-instruction
&#39;I""i
Qhg, Coast yards. it ippears
is by allocation of a de£iniLo..nsr-
centage of subsidized construction.
The Maritime commission, in that
case, should be authorized to
absorb the difference between
your costs and those available
elsewhere.
I have discussed the situation
with the President and he feels
very strongly that something
sho be done to maintain and
even to expand West Coast
Iacllities.
The Commission has received
numerous inquiries relative to the
treatment of certain lines serving
the West Coast which formerly
received subsidies under the mail
contract system. Six mail con-
tract lines which served Pacic
C9351; ports are no longer 2&#39;1!-
ceivlng subsidies. None of these
lines, however, was denied a sub-
sidy by action of the lviarttirne
Commission.
Line Discontinues
one 1ine&#39;I*he Tacoma Oriental
steamship Company  discon-
tinued operations a year and a
halt before the Merchant Marine
act of 1936 came into eflect. Three
linesGra.ce, Panama Pacific and
the Gulf Pacific Mail Line, Ltd.
were rendered ineligible in the
provision in the act denrig Sub-
sidies to vessels operating between
port terminals" in the United
States. The two remaining lines
-the Oceanic at Oriental Naviga-
tion Company and that States
Steamship Company -- did not
choose to ask for Government aid.
The rst named line has been
dissolved; the latter is 0peratinE
without a. subsidy.
I hope that this explanation
will clear up any misunderstand-
ing that may have developed over
the attitude oi  Commission tr-
warri lines servinr: the West Coast.
~""&#39;l1&#39;h&#39;roe West Coast lint:-cum-ow
n.-__
. -"&#39; &#39; -

Q---~. 1- i 1 I
b md un<lh-"rhe-less
act. They are the Oceanic Steam-
ship Company, a subsidiary of the
Mat-sen line, serving Australasia;
the American Mail Line, s Dollar
Company. operating between Seat-
tle and the Orient, and the Pa-
ciric Argentine er Brazil Line,
familiarly known as PAB, which
connects your ports with the
East Coast of South American.
A wa ralml C0nl.r:u-.1;
The Oceanic company has jun
hr-en awarded It 12-year subsidy
:-oiitrzict, the first long term con-
lmct to be granted by the com-
mission.
The commission&#39;s determination
io provide adequate service for all
parts oi the country ls evidenced
by the tact that representatives or
the commission will shortly hold
h"BTi11gs at various ports on the
ihree coasts. A member oi the
l"&#39;lllliil:ii|nl!. with several as-
Fl-|.illli$, will come to the West
 A-nsi. Hearings will open in San
Diego on January 24 and will be
held shortly thereafter at Les An-
gries, Stockton, San Francisco,
Portland, Tacoma and Seattle,
The San Franci.*&#39;co meeting. which
9292 Ill include Oakland, will be held
on FibI&#39;l.l-l&#39;_V 2.
Perhaps the most serious oi all
problems confronting West Coast
shipping today is the situation
with regard to labor. I have been
hoping that things would settle
clown out here and that there
would be no repetition of the cost-
Iy disruptions of the past. Upon
F1-1DDlI92E Of! NR train this morn-
ing, however, I discovered that
Seattle is again tied up by a.
strike. that you had some diffi-
culty here Yesterday. and that re-
lations all along the coast gfg
none too good.
W lny III Feeling
I do not know, of course. who
is in blame for this situation;
ilu-re is probably some respon-
sihiiity on both sides. I do know,
however, that a. stable labor policy
will have to be achieved-and that
&#39;-¢1&#39;Y soon-ii&#39; the American mer-
chant marine is to survive. In
ioreign trade. it is only a. question
of time-if some oi the&#39;T5R&#39;S&#39;oi
the past continue-until worried
- _.-I - . . . A_ ____ __ __n _ ._ t A I I I-+.____.,-_,._._,.._x _ _ &#39; -tnayelers gird disgusted shippersturn ore gn vessels. W it B
no such troubles as those which
besei. our ships. In the coastal
and interooestai service, patrons
will turn to lend t.ranSDOl&#39;t.
coming out here on the train,
I got to wondering why there is
always so much ill feeling between
employer and employe. This re-
lationship should be one or the
utmost cooperation, for the wel-
ierc of both parties is dependent
absolutely upon the measure oi
teamwork they are -able to achieve.
Yr-i lhey are constantly at sword&#39;s
points.
when I sell a man some goods,
and tell him that I am forced to
raise the price, he doesn&#39;t im-
mcdiateiy regard it as an act ol
war and have me thrown out oi
the place. H8 will receive my de-
mand for higher prices diSpas-
sionateiy, as a matter of business.
liaise-. of l.:|lmr|&#39;r
Suppose. however, that I am a
worker. selling the only thing 1
ha-an to sell--my labor. I think
that I should be getting more
money, and perhaps working
shorter hours. I go to the boss,
eiihrr alone or in a group, and
siritr my case. My case may he
good, or it may be had. It doesn&#39;t
make much diifeiencc so [er as
the boss reaction is concerned.
He probably will regard my ac-
tion as an unfriendly act. The
first thing I know we are at war.
The ship  or perhaps it is a platft
or store! is idle. Wages are lost.
Proiits stop. Violence ares.
Property is destroyed. Lives may
be lost. Eventually I E0 back to
work. but regardless oi who wins.
my relationship with the boss has
been seriously impaired.
I have spoken from the stand-
point oI the worker because, it
seems to me, his demands are
more vital and should, therefore,
be iccciverl with a sympathetic at-
il.u<lc even though the employer
inn}. not [eel ilhlc to grant them.
It ninst he admitted. of course.
that the altitude oi the worker is
just as belligerent as..t.hat 01 the
employer. It seems that we just
cannot approach the employer-
employe relationship with the
same &#39;1-atioriiility that we employ
lg niegtlpg the other pr-vi:-brn&#39;s"&#39;UI
lilo.
_ -. 1--- &#39;.

i1
! 1
// &#39; . do - 
John-al Um-ran nf Inurstigajinn
Hniteh States Brpertment of Justin
1300 Biscayne Building
_  Miami, Florida
92
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d""&#39; &#39; VICTORY -
, RECORDED I6EEK * a= _
 Inn!-zxwnlzrs $3? V I V] J X:
. Eon? rtirrzog-1313;,February 16, 191.4
Director, FBI
fJ
RE: GENERAL SURVEY; 92 _ Yimi.__4-.El92}¢ai  
Kiecellaneous;
ATENTIGN: iussistent Director ll Roach I
Dear Sir:
In connection with the General Survey in the Miami Area concern-
ing gmnbling and general activities of outstanding mobsters and recketeers, -
the following information is being set forth; 
_ , _ t_  E% -.
For the past two years the Liami Area was comprised of e military _
zone and very little activity could be found such as gambling or vice. Suchactivities were restrained by the military and snore police in t Area mw
by the fact that blackout restrictions were maintained during the o - -e -- -
mentioned period.  Dr:;,:U_92 %However, since the 19h3 and 191,1; winter seasons begun and as the g
Army and Navy were leasing the various night clubs and hotels, the liiemi Area
became a seoos for gambling to e great extent. The tourists are in possession
of mre money for gambling purposes due to war prosperity. It appears that
this winter season in the Miami Area has brought an influx oi mobsters with
large sums of money to invest in gambling enterprises and irdividuals who
never before have been seen in these parts. &#39;
Q/I.. _
11:5 .0 oar- 71964

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Xrm avmm now339 22nd Street -
Miami Beach, Florida/-_., »2-16>-U;
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Director, FBI _ _
. 1~ . __ . j &#39;¢ a __ _ , . . 1 -1- _- 1 _ ~ .,; §_.,&#39;_5_ __.J-  ,;_  - - _;"-.1, __ -, _ _-q _ __ ___ _  -~ ___ , _ 4&#39; _ _~  1| _-; .._._._ -_&#39;f.._ _ "_;;¢ ._»--. _ _ _ -- V 2-16-4.1.
_~ _-. I- _&#39; -._ fA_7&#39;L -   _- -_a_,:,;A,_;-;_,,v;¢," , _~ - .- é - V - -
e in adjacent t the PARK LVEERE RESTAURANT P miecocktaill
e big figure in he liquor industry. It  Bt to -note that the
controlling interest of the S ET IMPORTERS is owned by the former _ &#39; __Anbassador to England, JOSEPH PiICENNEDY, who is head of this liquor company
_ by his cum admissions to the n papers. .
Xx s
-14-- and 1» operated by C QCH and "7:i1mr%£<moann,  92In connection I _ BDOCH should be noted at he is the Sou rn - _./sentative oi th SGERSET ILIPORIERS from New y. He is known to be /L! *nn-. _.
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l
"i&#39;}¬ifll1!.Q iy _F:il..s
Labor Cliaos
On. U. S. Ships
Rrliring Maritime Board
Head in Firs! and Last l
Report, Tells Why Op-
erators Dr-lay Building
liiainos Sil~ii0Vo&#39;llB
.An l Siipsiimlwork
S8}! N0 lisliiig Cure I5
Possible Till Firife Be-
tween Unions ls Ended
from the llcrnili Iril::l:&#39;e Bureau
_ WASHINGTON, Joli. 23.--The
consiruction of new ships for the
An-.1-rican merchant i&#39;T.ltlil&#39;iB is held
in check by _CilB&#39;Ji.iC labor condi-
tions, Blgniilizecl bf- demands oi
or:-92="s. sit-down and quickie strikes,
and alipshr-cl performanc oi duties,"according to Joseph l"!.92Kennedy,&#39;
chairinan oi the United States
A-lmiiim" C-ornrnlssion. in his first
and la:-l rrnmt to Congress, released
her" toclafr. Mr. Krnredy, who Isl
e>;po=i.td to issue his last statement,
as iv-ad oi the commission this;
Week. sails on Fcb1&#39;u.&#39;Hy 9 to become;
Al&#39;Tll!J.<5.&#39;h&#39;§792l to the  irt of St.
Jzum-s&#39;s.
L-Iqking what is bclfred to be his
rs tlllernnre against the ght oi
the Amnican Federation oi Labor
and the Committee for Industrial
Oreinizaiion in the maritime field.
Mr. Kerineriy. in his report. says
that "no lasting cure will be effected
unlit i-he Jurisdictional strife now
Iirorrilcht in marliirnc labor is termi-
nator! nnri :1 more Cf--npprgtlyg M-.
l&#39;H.?i&#39;Yfl1lIl ir I&#39;Cl&#39;i.[;ilfii bv the unions
ind the ship operators." The report
c tr-is the no-ind i&#39;t&#39;l"&#39;m October 2 _
1 iii. when the agr-nr.3"s duties starte-
u i - Pie merchant marine act
I .1". in &#39;1r~&#39;"l»;- &#39;92&#39;-_ 1931
&#39;~>>?Fili plul-92»Hih"-~Llli.!.i1LU more -"W 1.
1
{I- iETy to the problqg3=_QL&
placing vessels comprising the
American merchant marine is the
problem oi providing them with sat-
isfactory seagolng personnel," Mr.
Kennedy said. Despite the urgent
need for new construction. private
operators hesitate in the iace oi
the present labor situation. The
lack of order Ind discipline on
board ship was sharply focused by
the Algic incident, in which the
1afusal of seamen on board a gov-
ernment-owned vessel to perform
their lawful duties compelled the
commission to take prompt and de-
cisive action." The situation stiil
exists, the reprl states, although
the commission has recommended
remedial legislation."
Legislation recommended by the
commission to alleviate the labor sit-
uation includes the creation oi a
mediation board which would be
similar to that provided under the
railway labor act, and abolishment
of the arclliiic system" of signing
members for each voyage and the
substitution oi a system oi con-
tinuous employment oi seamen.
Both proposals have been opposed
by maritime unions.
Seeing the replacement oi a "rap-
idly aging merchant eet as one oi
the commissions major tasks, the
report covers virtually all phases oi!
the problems confronting the coun-
try: trade eet and, it is expected.
will serve as a working plan for the
Senate and House committees now
discussing new legislation.
Cornmenting on a replacement
program for the country&#39;s trade
eet. the report points out that ai-
though the initial step in its co -
at ction program was taken in l -
ti g a contract. for a 33,000-ton ii r
to replace the Le".&#39;lathan. the "gl -
in deciency in the merchant -
C] ippirig from~ so ii
r7 pk ! /e -&#39; hc&#39;lac&#39;k&#39;oI&#39;m0¬&#39; Esign:-:.i go keel ror a car
has been laid in this country sin:
Earl! 111 1920. the report state
pointing out that the rst step l
remedy this situation was taken wii
the design oi an economical 5;,-.
Cargo vessel with a speed of 151
knots. The design. known as Ci
was prepared in collaboration wit
the Navy Department, Bureau 0
Marine Inspection and N avigatioi
American Bureau of Shipping an
several [ell known naval architect
and submitted to ahipbullders In
suggestions as to its adaptability Io
use in various trades.
The immediate construction 0
twelve vessels of the C-2 design i
Oontemplated. the report. statesadding that it is the Glmiynn
imfti T-118$ "Ill vessels bui;
under the merchant mnrine art r
1936 shall embody the i92ig|i .&#39;
shmdards oi construction with rr.
spect to safety and rgprogfjng an,
shall represent a considerable ad.wince above the standards adopter
by the International Convention fog
Safety of Life at Sea. Other feat.
ures include installation ci thetest improvements in macl1ine:"_ld &#39;5 1°°au°n- ldeiltiateri modcr
uarters for oflicera and crew, a, ell as the national defense fr-q
I re-&#39;= reqqircqkbg the act.
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 ;/- 7_6&#39;5&#39;d- 6 72*/3 FORV;&#39;A.RDED BY NET.-&#39; YORK I-I&#39;VISIOE&#39;
A

lThe new liner to repll<i...i|il:.=1=r
"==»-"-v-$4..-a;;»b¢:ing built by the United
States Lines under an agreement
,wiih the eqrnmiasion whereby the
|shipping company was permitted to
ilny up the Leviathan, 15 expected to
lenter the trans-Atlantic trade inI940 Than. new shin un.-Inn n i-
ticn at the Newport News, Vl., yards
of the Newport News Shipbuilding
and Drv Dock Company, will cost
the United States Linea $10.50U,000.
the comrnl,=&#39;<i0n&#39;B estimate oi the for-
eign construction cost. Under the
merchant marine act the commis-
sion will make up the balance of
the $15_&#39;l50,000 estimate,
A total oi iifty-two or fty-three
ships is expected to be built by eight
lines within the next ve years ii
satisfactory long-range subsidy con-
tracts are worked out, the report
says. Seven lines have agreed to
build a total oi twenty ships be-
tween now and 1942, fourteen to be
started in 1933. In addition, the com-
panies are required to develop plans
for the building of approximately
twenty-three other vessels. The
American Export Steamship Cor-
poretion has indicated its willing-
ness to construct nine or ten vessels
briwecii 1936 and 1942 under a satis-
factory subsidy. .
During the last year, the commis-
sion report says. numerou requests
have been received for aid in the
construction of small aeagoing ves-
sels and vessels engaged in commerce
on inland waters, but "for the pres-
ent, at least, none of the commis-
sion&#39;s funds should be diverted to
the construction oi vessels for do-
mestic commerce."
Oi the construction loans made to
various American ahlDD1l18 com
panics under the merchant marine
act of 1928. almost one-half oi the
total oi :14&#39;:,a4a.s42.41 granted has
been repaid, leaving a balance out-
-a;-idin-,": of $&#39;l&#39;6.228,i4&#39;i.-is on Octo""
. 15137, the report shows. The pri -ii ,0 , I
__ -_
L
l ,
_ y no-1 r .
V Price photo
Joseph P. Kermly
and its ships and properties, are the
construction-loan notes and ship-aaie notes. The total of ship-sale
notes receivable on October 31 was
§10,985,0&#39;75.8&#39;i&#39;.
The construction of twelve high-
speed tankers suitable for use asTnaval auxiliaries. a contract for
,which was let by the Standard Oil
Company of New Jersey early this
onth with four shipyards. also 1
entioned in the report. The tank
will cost $37,555,004, of which th
mmission&#39;s share for national de
_ features Whbe $10,563,000,
pal nesetspf the commission, e - &#39;
u.,ive of the $iiJ&#39;l.&#39;i&#39;95,313.22 on d -
sit. in the tinited _§tat_e§lreasu 7
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5ill5&#39;liiNNiUl
iC!0-AFL Struggle Hampers
&#39; Move to Build Up Merchant
Marine, He Tells Congress
Chairman Joseph P. Ken-
lnedy, of the Federal Maritime
iCommission, charged last night
ir his first annual report to
Cni1g1&#39;ess that labor disputes
are demoralizing private and
official efforts to expand the
Jlmorioan Merchant Marine as
in "i|n:ililn nrm of nuiionnl iii--.
-l|i&#39;.<r&#39;_ 1
 In what was regarded as his
farewell message before he for-.
imally resigns to become ambassa-
dor t.o  =reat Britain. Kennedy for
the first time took cognizance of
the bitter rivalry between the
American Federation of Labor andCommittee for Industrial Organi-
iJaticn maritime unions.. _ J-Fliil BMKEE    p "AllhOllf;h the con&#39;irrgs_s>i920n__
Operator: Hcsitanf
He said that private operators
were hesitant to build new ships
the most urgent problem before
the commission--because of the
chaotic labor" situation.
"Labor conditions signallzed by
jdeznands of the crews, sitdown
and quickie strikes, and slinr od
iperformancc of duties are cha ac-iteritic of the industry," the bl t-
,s_nc king chairman said.
- I e cited refusal of the crewlof.
lth Government-owned S. S. Algic&#39;
ito hey orders and their resultant
ieonviction.Q  do ll i.
recommended remedial _
tion, no lasting cure will be.
effected until the Jurisdictional.
gtfg now prevalent in maritime
labor is terminated and a more
cooperative working arrangement
its reached by unoins and shliii
operatorsf he said.1 The report. covering the com-
1mlssions activities from October
26, 1936. to October 25, 1937, is
expected to furnish a new work-
iing basis for the Senate Com-
Imefce a,nd"H0l15B Merchant
Marine Committees, which are
studying labor, financial and
other maritime troubles prepara-
tory to drafting new legis1a.tion..
Kennedy said he-believed that aisatisfactory ,ba.sis for a. long-L
range construction program has.
been laid-i! there are no unfore-i
seen developmentsthat will re-i
place obsolete American ships.-1
improve scrvicc. and strengthen
the national defense.5.3 Ship; Planned *
He said that eight steamship
lines under long-term subsidy
.agi-cements would build 53 or 54
new ships costing $110,DlJ0.000 dur-
ing the next five years, while the
Standard Oil Company oi New
Jersey, will undertake 12 high-
gspeeci tankers equipped for war
ltlsage. _i He emphasized that the future
shipbuilding program will em-
brace greater speed, improved fire-
pronfing  safety devices, better
lquarters for crews and officers,
and national defense facilities.
The report pointed out that a
shoit ee of ship tonnage roadand rfw-rocketing scrap-iron riq§_:s.-had ccelerated transfer of er-
ilicen owners!-iips to foreign regis-try. kausing the commissionto re-
double its vigilance to prevent a
"detrimental effect upon the mer-
chant Marine.
 flis --&#39;1.
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iu. S.--KENNEDY
jNew Envoywtos Britain
tI.N.S.1 In his first and his
ilast report to Congress as chair-,1
iman oi the United States Mari-
itime Commission, Joseph P. Ken-
Enedi. nev"l_veppointed Ambassa.ii ;i.
ldor to Great Britain. repeated his
rlnim to-do} that labor disputes are
It-h1"oii|in_r: st owth of our merchant-
i!l.=tii!}r-.
i Kennedy and the mnritimel
iuninns have differed on labor-
matters eye-ioeye ever since he?
gcableci the captain oi the Govern I
iment-owned vessel Algic to returnlhis crew in irons ii they coni
iiinueri a sit-down strike. 
[ When the ship docked at Baltiri
inwr" the Maritime Commission!
ilhiiiicfcd a Federal grand jur_v|
!i!1i&#39;e.=.ii&#39;;aiin!&#39;i. which resulted in!
[the Convirtinn of 14 seamen on
tcharges of conspiring to take con-1
trol of the ship.
F01 SOITUE t.i_|&#39;ng Kgnngdy and
SBCIHRTF Of the Navy Claude A.
Swanson have been warning the
Administration of the deplorable
state of the merchant marine,
Piting out it must be in top-i
notch condition to be of service.
in time of aver. i
KPHHPFIF 1&#39;-timed hesitancy of
ahipbuilclers to take s.dvantagc&#39;
of the subsidy clause of the mer-
chant marine act to the general
|labo1 unrest.
Labor conditions signalized it
by demands of the crews, sit~
downs and quickie strikes and
51iDSll0f1 Delformance of dutyi Hm rhar:i.cieristio of e indus-; tr:-&#39;1 his report said.  ithough i; 1he92ji-ommission ha.s92recom- sion "has struck a sstisfec rt
wor ing basis for e long-ran e i
pro ram that will replace sh s-
our age_ improve service and
strengthen notional defense 1!.
there are no unforeseen develolr
ments.
Eight companies have entered
into long-term subsidy contracts
with the commission to build 54i
ships within the next five 5&#39;88-FBI
at s cost of $11e.ooo.neo. Ihel
stqndgfd Oil Company oi New
Jersey intends to build 12 hill":-
speed oil tankers.
Urges Business
To Find Own Cure
BOSTON, Jan. 24  I.N.S.!.
"Big business" should volunteer
its own formula to end the re-
cession, Joseph P. Kennedy, newly
annotated smb$ai-lor to C-roe-&#39;~
Briton-i_ said here today.
President Roosevelt is anxious_ Ito cooperate with business, Ken-I
i nedy declared.
"Business should be better at
finding the answer for itself
than Government," he sai . "I
don&#39;t know any reason why n5
one an in the Governm nt.fromfirhe President down, sh d
have ii the facts that business-men §ieve about their own in-! V .- _t _ s . _ t &#39;.- MARINI1 .ii- It
dustries. IVS 11D in i-hm 1°
think of a plan and trot it out.&#39;L_J
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1SHIPBUILIIINGLAG
BiMi§]iJiiiABpR
lI_:I.ls-_
Mdl&#39;lLIIllB
tors ignore Needs in ace
~ of Present Conditions.
By int Assooilied Press.
The Maritime Commission reported
to Congress today that private ship
operators. despite the urgent need
Ior new vessels. "hestltate in the fine
of the present labor situation.
hantlrr labor coi"1liions, signalized
by ciemanris oi the rrews. sit-clown
and quickie sirikes.a192ci elipshd
performance of d921Ur.= are character-
istlc oi the ind.us1.r3&#39;," the commission
said in a report reviewing its work
for the year endin last October 25.
"No lasting cure will be effected
[until rhe jurisdi "niai ii; oe-
l.. 4. ¢_ 1 . - ,cH_|. Q , n
prevalent in mar-itiine labor is termi-
nated and a more to-operative work-
ing ll1&#39;lig&#39;¢&#39;mPnt is reached by the
.unlm1.s owl the sivp operator&#39;s."
Alqic lllcirlrnt Cited. I
. Leek of or-cier and dtsripiine on
l board ship, the commission said, "was
cideni. in V-&#39;}1iCh J"1=* refusal oi Y-he
seamen on board 0, Government-i
owned. vessel to perform their lawful
Iduiies compelled the oomrnision to
take prompt and rieeisi-re act-ion."
The commission rierl-ared its work
has laid the I0un&#39;:iati011 I01 I. long-
L range construction program.
Bills are pending in Congress to
carry out its recommendations for a
maritime mediatinn board and a pro-
&#39; gram for training wring men for a ca-
.reer at sea. Anoihrr recommendation
!~ is for continuous employment. of sea-
 men. instead of siznlng them 101&#39; each
1 trip.
1 "inadequacy" of Crew Quilfltrg."prev iling unre-=t" of labor gas st-i &#39; 1.
sharply iocused. by the Algio in-Q
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+-__-  92
RUUSEVELT NAlilE§
LAND AS SHIP HEAD, e
HITS iiiiiiia can
Rear Admiral is Promoted to
Kennedy Post to Continue
Two-Fisied&#39; Policies
TRUiTT IS PUT UN BOARD
Kennedy Sworn as Envoy After
Warning the Country to Save
Its Merchant Marine
51"-.la1 to Tnr Nlw Yon: Tnrss, &#39;
WAFHINGTUN, Feb. Il8.Presi-
d-ml Jtrivisr-92&#39;|-ll lode}; named Rear
.*.-iuzi--ii }1Tmol_v H. Lnnri membero[ il92r92 Li n to luc-
crirl .iu=r=]-h I. "I-{ennedy as ehair--
in." i- lli&#39;* P  and let it oel
lumwn that the new chairman was]
expert "-1 in continue the "two-tinted,
l*.ar<1-hitting" policies of his prede-
ce.-.3m_ Wni-d of this action reached
hue Ii-~.m ti» President: special
trnin en roi!&#39;e to Hyde Park.
Tl-.-: Pi":E=l".Eil1 wlso announced the
S"il"r&#39;tin|&#39;: of Max O.Truitl.. at pres
sent the geriiiiil the com-
mis.=mn. to [ill out the unexpired-
ieim <3. M1. Ker-nrdy M 8. member
of the  OIl1Tlilt?r<li92l&#39;l, which was to
ln.i~mim.le in &#39;.hr Fail. The resig-
na.tinr92 of Mr. I-Sr-nnedy as commis-
sion chairman became eective to-,
day, when he took the oath of of-I
{ice as Anierirrnn Ambassador to
the Court of St. Janice. I
in his 5ei&#39;:r:lir*" of Admiral Land
in l.-ilir: up the commission chair-
nm-&#39;F}|i]-_ Mr l.0nse92.&#39;t!lt followed
the :r~"1i&#39;|&#39;v-n-i."*i0n of Mr. Kenne-
ily.-, T-~&#39;h lm92&#39;¢~ l! .In members of
iii; crumni.-i.-ii-u -time its £2_l_|_._flh1iIl|&#39;l-
m.-ii l. H ~..&#39;i..nii.= Mn,lf of the l:-esidi-l:L=!L=£E
stated that he had received humer-
ous suggestions th-"t he appoint as
s member of the rmmnlssion a ren-
rescntntivc from ti"-I" Pacific Coast.
With these suggietions the Presi-&#39;
dent was in heart; agreement, and
would provide for such represents-i
tion in the permanent organization:
of the eommisslor -which ll to b6:
undertaken nrllio Fall. it wu mm.
President Gives iii; Own Views &#39;,
Earlier in the any, beiore he left
the capital, Mr. Roosevelt took the
occasion of Mr. Kennedy&#39;s resigna-
tion to express his own-views onl
the shipping situation.
The President, in response to a
question at his Press conference,
Said that the wh-Ilr shltlhuilding
problem in this country was one
big headache. He expressed con-
cern over the rerently submitted;
bids, saying they were tar and
away shove costs paid by the
U_nitecl States during the Wort
ar when material r-osts were co
erabiy higher h9292t when tot.
c nstruction costs were conside
s ly less than at iv-r-sent.  ldent menti0&Q;&#39; Qsse
alternativrcourses of action if new
merchant ships were to be built in
this country and the builders re,
fused to reduce their prices. These
were:
1. Finance the construction 0!
HEW Yards and the installation nf!
new equipment and have them pri-&#39;1
vately managed on I led fee.
basis.
2. Finance the construction of
new rm-as and facilities and let
the Federal Government supervisi-
and do the building itself,
3- EXPRIWI the present facilities
of new yards not new able to ac-
co modate new comm:-rcig,1 build.
in and have the government n
th building under direction of t
n y.
__ PgS_s_il:»1_e_ fourth aiternati
. I
lo
"&#39;iipp.in[_&#39; f&#39;1Om
:-.-~11 wwi-&#39; no MFZS
I .  ii-
F  1*" A _. .:&#39;_.1.92;.1; . :::.::.";. .IlI»V~I9I&#39;GN"-""&#39;
1KbU-.! ~ &#39;!Ui$lJisL mm:
J 7.¢&#39;:&#39;  Pb >  &#39;

l1 i
w_9_g!_r1_h: to have mercha t
constructed abroad, as suggested by
Mr. Kennedy in his letter to Mr.
Roosevelt yesterday. But on this
point the President said he had
talked with members of Congress
to obtain their reaction, and that
while they agreed that this was the
practical solution 0! the problem,
non could afford to vote tor such
a proposition.&#39;|&#39;_ s.:.. sash. -I -n-he--92 I llJll sun s:i.|.c1 U]. ice-|5r|5tsH .--sf"
Kennedy said that the United States
would have to take some exceed-
ingly strenuous measures" it it was
to preserve a merchant marine eet
of anything like its present propor-
tions in either tereign or domestic
trade.
Mr. Kennedy told Mr. Roosevelt
that the employer-employs rela-
tionship must be stabilized if Amer-
ican shipping is to survive" and
that the marine labor question was
one ofrthe most disturbing prob-
lems with which the commission
has been confronted."
Second only to the labor problem
i its effect on the diificully oiraaintaining an adequate merchant
n rine was the high cost of b ild-ir¥ ships in this country as re! ct-
e by bids recently submitted, aid
Mr. Kennedy. Recent increases in
s ch costs had presented the C lun-tqv with s. real dilemma, he adj:-d,b t said the Maritime Cornmis ionu douhtedly would work out asauiion in the near future.I
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I._..a.u-the Reed Gives the 2§g]____J
Mr. Kennedy was received by the
President immediately after the,
press conference and the oath as
Ambassador was administered to
Mr. Kennedy by Supreme Court
Justice Reed.
In a letter accepting Mr. Ken-
nedy&#39;s resignation as maritime
chairman the President expressed
appreciation of Mr. Kennedy&#39;s serv-
ices.
The President&#39;s letter, addressed
to "My dear Joe." read:
It is with real regret that I ac-
cept your resignation as chairman
oi the United States Maritime CDm-
mlssion. This. is tempered by the
fact that you are staying in the
family and taking over a new as-
slgnment."I want to take this occasion to
express my appreciation, so gener-
ally shared, for the fine work you
have done. In both of your im-
portant government assignments
you have maintained your justly
earned reputation of being a two-lsted. herd-hitting execsiive. I 
"It may gratify you to know t l
i going to your new post
c rry with you our condence
gh wishes."
&#39;0-». __

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-4- ..---.-o_"~g0Q|i1ui-Q--1  **§nP eInna  A
F"  &#39;  3   j*.&#39;";_-  _""_-.;i;._.92lI;fi."3I"&#39;./" - -  &#39;=Mor|i|me Board Heoci
--  Waehing&#39;ton,&#39;D.i»C., FebLi18.President noésevéli ma.>1 lipednl ri:71&#39;hiiu1m - he
p ; drniral Emery Seott Land, distant eousm oiCo 8 ar es A. &#39;_ndbergh, to the chairmanship of the Fed
Amaagador to
Jamens. It was
Kennedyi ree-
ommendation to
&#39; t h e President
t h _a t L a n d :1.
ready a Com-
m i a s i o n e r, be
a p p 0 i n t_e d to
auoeeed him and
that Max O&#39;Rell
Truitt, commis-
.:|ion counsel, be
i naméd to th e
ncy created
Land: pro- tion. Truitt
&#39; I get the post.-  &#39;  l
._e:_&#39; -
,_ Admiral -
U Lancltr.1: :[_ V. . &#39;
daubrnitting his resignation. to-.e Maritime IIIIIIJSBIOD. Q _   * _.¢ _ ii .1-7-=¢-.._._ &#39;ted Joseph P. Ken-, &#39; &#39; &#39; &#39; &#39;
ned = _ - -- e post to becomef
the Court of St.day, Kennedy warned Roosevethat labor disputes _ancl high eon;
struetion costs imperil the iuture
development of the Ame_rican__merFchant marine.  ff;  ;:$.- * HF:
Meanwhile, Roooaevelt declareni
that shipbuilding costs were higher
than in war-time and outlined
three plans for stimulating themerchant marine.-__,._;-§~ _,; _g.>;5;"}.Z+_He told reporter; :.hese&#39;v"re:je":_   2
Government nancin of  92
shipyards!  nevi vessels lnliliunder private man|.gement:=-- I  &#39;
Building ships in existing &#39;
erment yars and nancing u
with federal funds; .&#39; - K &#39; I"
Building new ways and equipmn
1.
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&#39;!|l.:::".i &#39;-.11.,"  ..-- -l -_"U.L- nr=-~92-1--__,92. " .!|,_Jii
<=-P- ~-
T+??1&#39;;@"~.:-,?-1-;" he
92
Clipping from .
HEY YORK DAILY NEWS
FEB 1 91938DATE; _ _ lI
132
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e 5fi§i&#39;geMed1&#39;¢1&#39;@~ in 371-ILQ
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Ii ASH?-.&#39;GTt!N» Feh. 16,-;I&#39;|.e
-# 9; the frftrr 0] Jnscph P. Ken-
 "n_:;, ngw. as rhrrirman of U18
 &#39;nr;.rv|5-via; fa Berlafor
clmirmrm n, H1-3&#39; Com-" .1 Hlme
110-lrvn-1, |IOna an.,.,,,.U .,,. £:::1_m£1rc!&#39;, 11:55 -&#39;2-9 1&#39;!!-
u92<- - -
P-B !vf;<"liin1".- Comnssloll eati-
-"*fen£h:1T:FT rcr cbnt 0! e92&#39;Pr~_,&#39; dol-
.92 1&#39;1-Md nu urdrr thr-. eight leng-
.w92_ opma!inc;»sub!=!d92&#39; agreemr&#39;ntl
;=w11f|_92&#39; eenvivc, or S4.B?8,G30 an-
Hy, is nvpr:1:l£&#39; l for vmgan and
e ».I|&#39;1[:92|".;r* M r92H&#39;!I-"ll and arm-1.
| In r];92,92; lihl nu rx]10&#39;1di|92||r* in
| 5nn11|1&#39;_ nf |;gn&#39;.&#39;~:1:1|11c~|1! Iurteil
-mo! boju=1l i¢d1|n!¢>sa it. results
. I-3-in: H~.- ehipq urhir-.h rrnlrn nh .- -|.1__ -.7 -... .. . ...... ._....... ..-.
&#39; me1&#39;:~!u1r.t n"1rn-1110 nramlnd by
pf?&#39;=n1&#39; and cnntrnted neamven.
The p1n]"..~*"d exension of the
 -ilway Lnhor Art to ihe shipping
&#39;-ant:-y is v!r=1igl:r~.r! In bring shunt
Y vfflclvm r921rlr1"l92_. and depend-
IP s5qltm 11&#39; m:uir.c transporta-
 by ||uh.1-&#39;it&#39;=f_in5: merilaion and
&#39;"iha%!nn £0 the flinorderly and
-~_=tu;<-,Livp gllikr, lockout: and
I-1&#39; Iabqr di.=|9211-!"r92r1t!¬*§ which I0
nioueiy h=n1-&#39;!if!]1 American eel
"r92&#39;:c4= v4 thr 5n"es"n. time.
1», £5 {mrlnn1on*nl thru. U&#39;8l&#39;lI&#39;P&#39;J!&#39;¢&-
5:1 an pg-1 or lavd In of m wry
&#39;=H_92:1&#39;r! n uni"-lie whiCl&#39;I TlIL1!*. b9
nhle to be successhll. The stab!!-
_92&#39; Qvf *Lrg_11_=1]r!|&#39;*!92fiQH !C!l&#39;ViCB I U19
Wm Qeclirliy oh t.ram92p0rtaLinn
- ~1-he-1-3_ &#39;] ha publir w|&#39;|I not patro-
qu. an in-&#39;!iP.i=zn&#39;., unmliahla
|]5P[!I&#39;ff1Li&#39;92"i I_92&#39;Q18ZY-, ld if H18
uhlip  ha-.,-;v.|z available efficient
&#39;1 relinbio f0J"i,={-!|:LZ services!
,,.5 not I92ahn|&#39;H,1r- Avnrwlcnn |=rv
» uv-1~ lm "--|&#39;.,|l1921Ill."ifI1|lU1d r
9292-r=rk&#39;u--|92 lmm I11~:|1&#39; _!=||I&#39;h
&#39; Hum n||§nhIH lim. U10 v-"*1-&#39;°~l"<!
F Hm 9292n||--|:&#39; I:-I L|~fiI92H-"].92 |"&#39;"d
|- wph Hm |~||rm92s:-: nf lh» w92n&#39;.nre
- whieh [11-1;, are an-jnlnyvd, and
|_§~_-~ l;19292n|&#39; <~&#39;>ndI&#39;I ,-ns in the n~:r-
»;§-L mn&#39;i:.- nan he llabilizml by921" riuhalituiiun of consideraiion
ha, qQ 9]!r~1&#39; i|" in the place of hos-
Iiiw and n>.c1|minniiun,1abnr, nun-ll. ,-lmm -u |n¬ -.6
/ I 2
- Senate: Arthur  92§eeeégbor e1T-QP

Mediation I.a92<s in hla1t
1n and arbitration of dis
putt-- nnci tlifict "noes itctwcen labor
m,_.t ,.-.,ano;_;t"t.tt.i1t are not new tn,
Amt-t n&#39;92.tt I-~gi==lrttion. Ir092isi0l&#39;928 Tl!-E
lat-t", 1:1 iil"F-" subjccle ntr tout-tr! irli
-,1,-HshlfSlill :tii5l,il&#39;1ltFiTl5. rtnd me-
-dlntieti and arbitration st-tttutea-srrel
not :|&#39;fgtti92E in i&#39;hi:&#39;ty-two F-tlt
as ~_t-,-t| pg in Al.-i.=i-ta, Pur-1-to Rico
find iiir Fhiiipttitte lsis--ids Some oi=
{M-=9 i!|9292&#39;F limo been in existence
forB 11.11;; while. and the fact that,
othcte }1;l92&#39;F! hm enacted recently
testifies lltnt t&#39;h~i.r history has rec-
t_&#39;!n&#39;|!&#39;i&#39;it&#39;[1rle_*tii them as approprisl 8111&#39;!
dcstt.1hl~-iuslr intents to aid in the
setilomt-n: of labor difficulties of
Uuiziy
Ilia :no.=. recent of these statutes,
5||p:92i- |-,t|92, was cttfiricft by the
Bl_n&#39;r§ pf Pt:11n.~=yi92&#39;i=-niz. This was
Art ll? of the Acts M1937, Senate
ill -t-in r-,!&#39; th-&#39;- tvguiar i=92"=92il0ll, and$2? -tpt-:&#39;o".~*~.i on Z.le.y FE, 1931&#39;-
92--&#39;hii-_~ m.-92:i92&#39; rt[ the £~&#39;.i&#39;tte-9 hav
&#39;-Min r92;vPi|r92l1l pi-octess with re
_ r-.~&#39; Ln ptrxitiiug metlmds for lolv
i Q limit izihor pzohlt-;it:=, it is quit
92>h<.-innn int i-lie States lack jurie
dig-,-ti nnri pvt-&#39;ct&#39; tn ptnvide ft!
iuhilt tin. mt/i nir-tii:1lit92&#39;i of the
iahut diffiruitita. arising between
l-mp}-ti-ers nnrl ctnplo92"t_= engaged
in int. t &#39;tl.t" ti".- incicti r~ommrrcc.
}::l&#39;92tliIi|| 41 oi F, 3.073 has been
titrturt "tit-i lit-=. ttimttttrtti of lt&#39;i.;|et-
iniiot: I-t &#39;itt= 92|ii1tl"- is :l--.-tirt-ti in
Oidr-t ||}t[_ tltn iaiior tiil&#39;fi=~ult1t:.v in
marine irilcts-&#39;av slid Iotrign entit-
I&#39;Th=iC&#39; inev he deal 9292&#39;it&#39;t ill The
anti". n&#39;."r:ne&#39;- which has proved no
with tot»! en! seitrfartfttjv in the sev-
t!i&#39;Fli i&#39;4&#39;=t&#39;r&#39;F, anti iii int=&#39;;rt.at¬ rall-
9292:-iy tt"""."1tutatittii.
.¢Iu&#39;i_92 oi llfl is Her-oiled
A iyinf miter, of iii" t&#39;lrt92git92ns
witicii int: itrtt-u nude wi&#39;l1 respect
to 0.1- r~ii"orrl_=; [3 P!&#39;llli1lll&#39;1li&#39;li{. As
earl;-&#39; t92s]?~T.1t"tc "ollLI&#39;?F" *"Ii-&#39;3?! iv
study tttcthn-is of handling disputes
f&#39;ri.=-in; *=-=&#39;92921"rrt the rztiltuadi and
their rt-tt92lo_ve", and the first media-
tion Jew vvrts ettactcri by the Con-
gt&#39;£!=.1 in 155-1-1. This law provided
two nt&#39;-Hindi: int" hanriiiric disputes
92I.hiCh might misc bf"_wteu o|t92pio_92,&#39;-
9;-5 Z}&#39;92d i>~:t]tio_*.&#39;t s. Tht-_v 9292&#39;-we, first,
volun-try. ntitiltaflott, atui. second.
in&#39;.&#39;t.<:ig&#39;ttt!|1. Fprm the 1"f|L|l"!ii. of
either iimtmgetitrnt or labor, agreed
to by both iutttirs, a  lisputc was to
be st.ih:t-ttrd tot decision to a board
of ei-t iii-atvr", one app-tinted by
the  :.&#39;t92i:>_vcr, one lay the employee,1 rl I --lmitrtttttt to ho  }&#39;ti l"-&#39; t&#39;|&#39;l;~&#39;iiti&#39;*i l|"i&#39;il92.iF.
b np ,5
It will he noted that .}-i-"-1-ha.-.ad92I5lIR!_&#39;i3&#39;¬&#39;created only !&#39;92&#39; the con-sent of both parties anti that there
was no provision for the enforce-
ment of the arbitration boat-ds de-i cision. This act also authorized thePresident tn appoint a tempo:-dry
commission to investigate the causes
of any railway lsbol-=dlsputa and
provided that the services of such a d
oomrnission might be tendered bythe President to settle a contra-
vwrsy. and that the services oi such
a commission might be rt-quested by
employer or cmplo_92".-s or by the-Chief Executive of any E-~&#39;s.te,
Althllilh this law was in effect
for ten years, the arbitration pro-
visions were never &#39;uti|i_z-ad. notwith-
ltnndmg_the fact that nthitratiort
s considered the most import tI ture of the ]awand was the su .
!j ct of prolonged Congressional
t to. The provisions for invoati
_tion came into play only once, and
;that occasion was the Pullman
strike of 1894.
The commission investigating thePullman strike had no power to
settle it, but it did recommend the
mission of three members which
{should possess auihoritv in th
the authority ot the Interstate Corn-
mcrce Commission with respect israilway rains nnri Whnnrt authority
would be itiutliug upon both parting,
Act of 1888 Proved Futile
, The futility or the act of 1888 was
generally recognized. and for a pg-
rind of ten years bills were intro-
duced In Congress p:&#39;oti-ding for
,rnore efficient means of dealing
with the problem. This ctiiminatpd
with the passage of the Erdmnn
Act, which was approved by the
President on June 1, 1398
This act contained the first policy
with respect to government media-
tion and conciliation oi labor isa
putes in the trsnsportaiirtr: indus-
try. It also prohibited the so-called
"yellow-dog" contracts and pro-
vided that it should be a misde.
rnesnor for any carrier to require
s a condition of employnmnt th t
ti!; employe or person sorhing e -
loymcnt should enter into n
grecmcnt not to become or rema
member of any labor ntganiz -
ion. Unfortunately, .his section I
the law was held unconstitutional
in 1993 bl the Suprvme Court of the
United States in the case of Adair
v. United States, 208 U. S liil,
Experience with the E:-tituan Act
proved that litc st:-ongesi, reliance
I0! ?!£l!!!&#39;!!ifiii G! isitr iliijliiig
should Pm pier-ed upon !!1t u 92,92i, ;:|
rather than ttr-itiiruiirm, anti in ltiifl
Cullgrcss it.-<lnltlI.~lmd a ]lii&#39;lI&#39;ll!ili92|i[
Bvlrd oi Mctiisiintl anti tIt|mti|ia-
lion. Ex|:e|&#39;i|-nos under tho new act
revealed further problems. and it
became clcar that arbitration, ai-
though useful when in -"liallonfailed, had inherent wr~ai=&#39;1esses.,
The chief difficulties aroq.-2 out of
tho imperfect machinery which thelaw provided for the intetpictation
° n agreementq,,gcd-=o-i-B!-traiion awardsappointment of a permanent com-
~ . e Ifield of railway labor similar togThe brotherhoods of railway em-,&#39;&#39; he i uni its
sumed the prerogative of interpre.
dating all agreements as it saw fit.
.In 1916 the train service brother-
lhoods began at general movement
l .  - .i
for at basic eight-hour day withi
time-and a-hail for overtime, andl
into any a-rbtttatton agreement A
threatened nation-Wide strike of!railway employes brought about on-10. tntent of the Adamaon law, which I
iv s approved Sept. 3, 1916.
l Both Sides Backed um an
he Transportation Act of 1
l do provision for the lettlarne t
oi disputes between carrier: by rail,and all classes of ornployel. Thai
provisions of this_act reverted int
part to the act of 1838, which had.
been discarded tor over twenty
years. Dissatisfaction with the act
of 1920 increased with experience,
and by tho end of 1925 carriers and
empioycs alike desired to have the
act repealed. A joint committee ap-
pointed by managerrtcnt and labor
wo1&#39;]t;od out a bill which, supported
by both elernents, was enacted as
the Railway Labor Act of 1926.
After more than a third of a cen-
tury of ineffective legislation, om-
pln era and employer in the r il-
|roa industry thus united d
bro ght about the enactment o alulcovaring the adjustment of dia-pu s in the industry by arbitration
and mediation. The act 01&#39; 1926 was:
amended in I934 and, as amended,
now constitutes tho Railway Labor
Act. Its provisions were subsc-
quently extended to cover the la-
bor problems of common carriers
by air in interstate and foreign
commerce, and the law so broad-
ening ths scope of the Railway La-
bor Act was approved by Presi-
dent Roosevelt on April I0, 1936.t
tfit of experience and the coopera-
tion of both managernent and labor,
each enliiihtned and informed al
to their own best interests, Con-f
gt-ess has developed. step by step,
a comprehensive policy and method
for dealing with labor relations in
the railway field with the result
that the Secretary of Labor testi-
fies today that the present RailwayMediation Law is &#39;   the fullest
tand most complete development oi
irnediation, conciliation, voluntary{agreement and voluntary arbitra-
-tion that is to be found in any law
governing labor relations."
This is the act which the Mari-
time Commission, basing itl opinion
on a careful and cornpt~eht~nsi I
tidy of labor conditions in lo.
int-ting industry, has redoended he made applicable to, 3merican merchant marine. &#39;5&#39;1 _ .. abor 0 m-vo-rveu-1&#39;,
yclsimed that management had as-;
t -L
when the carriers desired to at-bi |trots the omploves refused to enter;
l
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It is slg ificant that over a longloeriod oi §&#39;ee!&#39;s, and with the bane-*&#39;

!
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i,,_.%léi1:&#39;i:es O|:po4Iitl0n,_i_.&#39;I 5"&#39;"l
The recommendation of the corn-
miiiizign was transmitted to Con-
gress on Nov. 10. 193?, and On D&#39;?"l=
2. 1937, appropriate legislation WE
introduced. Many witnesses have
heen heard with respect to this Pl°&#39;
posedlarnendment oi! the Mercliiii
Marine Act of 1936. It is surelli
significant that not one witness has
voiced a single sound objection to
the details of the bill or has advo-
cated any substitute for the pro-
posed law. Every argument oi 0}!-
position to this provision of the bill
is summed up in the statement that
to make the principles 01 U19 137°"
visions ct the Railway Labor Acti
applicable to the shipping industry
at this time wouldbe "P1&#39;em5tr°
for the reason that "the employee.
are not fully organized." i
This in a strange argument. It is said to he "premature" to put lntoi
operation machinery dz-.-|i£l92"d &#39;01|&#39;1rnvr-rit. lirikr-1| and lockout! in en;
li&#39;ldllB1I&#39;!&#39; which in T!" 1&#39;"""u r
1937 lost approximately 1-990-000
man-hours ot work by strikes Ind
loci-routs. __ iit is said to be premature to~
act to bring order to I. bU$il&#39;ilFl
wherein disorder during the _Pl9ii
"year adversely affected the business i
of every "port in the United Stalk!-
Grave reasons should be asslgnefl
to support a chlrx Oi "P&#39;"°mB&#39;""lly" with respect lo the Oiltlfflllliil.
of this type of legislation. In ip-
port of ihe statement it is said that}
the employee are not fully 01113-i
i&#39;r.ed" and that the industry is not
"ripe" for s. law like this. &#39; I
Even a cursory examination. of
the labor situation in the maritime
lndtislry discloses the cmolcte fal-
lacy of this argument. The long-
shorernen upon both coast.-i are or-
ganized and have contracts with
the employers.
Cites Labor Board. Flleci-iul
The seamen upon the West Coast
are organized and have also COH-
tracts. V92e are advised that under
-the stipcrvision of the National Lo-
lior Relations Board election! are
lb ng held upon the East Coast H
r idly as its machinery will p r-
&#39;rnt. Elections among the ts li-
ice sod personndl of approxirnat Yi-forty lines have already been held
and in most instances the represent-
atives or the employee chosen iii
those elections have been certified.
But, whether agreements ha-liebeen entered into or not. there Will
always be differences with regard
lo rules of pay. hours of _lR|&#39;i0T Ind
wm-l..ng conditions. N¢!11hPI&#39; &#39;3"!-
||&#39;l&#39;ilVl! a|{i&#39;cen|i"lii!l I10! l&#39;I"dlR&#39;|&#39;&#39;1
inI| &#39;hi|ii"|&#39;!&#39; will eliminate lhr-no ill!-
pui.-_-._ Hui ll!!! function of the nyl-
tent of mediation whlh hill h-P"
suggested is to facilitate and in ex-
pedite the process of obtaining these
5;-.u-,1-live agreements .li&#39;i§-_=L-U--53¢
til-merit of disputes as ihe.92&#39; 11&#39;1"-i
ly. 9292.
,,L,,5|,1J,1.mtt that em _loyes who havebeen able in the pgil. feW"&#39;l&#39;I&#39;FEif5
to paralyze our water-horns com-
merce by "quickies" and sit-down
strikes; employee, one oi whose
leaders feels so confident of disci-
pline in union ranks that he chai-
lenges the power of Congress to
enforce this legislation, stating that
the employs will not "accept." it,
is sufficiently organized for legisla-
tion which seeks to substitute ms-
distion and conciliation for the
strike and lockout.
The Congress must determine
whether maturity is to be tested by
the willingness of both parties to
sit down together and make an
{honest eort to compose their dif-
lferencei before resorting io actions
which result in unreasonable and
unnecessary interruptions to com-merce, or whether it is to be tested
by the ability of one side to
blrdgeon" the other into submission
by lying up the country: transpor-
5 iniion facilities by either strikes or
I loci-touts.
"arne of Industry&#39;s Perils
This legislation is not regarded
and will not he regarded as "pre-
mature" by the American people
simply because it is called prema~
,tul-e y those who will always so
regard -it as long as there is a
chance oi preventing its passage.
I iuihmit that it the nmi-itime in-
|l]ll%ii"92 is lint "ri|m" for &#39;ru1r&#39;ili:92tini&#39;i
Qand mediation of its lahnr disputes,
then it is overripe for ruin.
It hail also been argued by those
who oppose the extension of the
Railway Labor Act lo the shipping
industry that the National Media-
tion Board is inexperienced in
handling maritime labor disturb-
ances. In answer to this objection
it is necessary only to point out
that the board administering the
Railway Labor Act now exercises
jurisdiction over maritime employee
&#39;0! railways subject to the act. There
are elghty~seven wages and rule:
agreements now in force between
Class I railroads and their marine
employee. Among the organizations
involved are the international Long-
shoreme-n&#39;s Association, National
Ma&#39;s-ins Engineer! Beneficial Asso-
ciation, United Licensed Officers
Association, the Association of Mas-
ters, Mates and Pilots, and the In-
ternational Seamens Union.
As indicated in the commission&#39;s
ieconoml survey of the American
merchant marine. it is the primary
purpose ot this legislation to avoid
interruption to our water-borne
commerce by providing for the
prompt and orderly settlement or
dispnir-s concerning rates of pay,
rules or working conditions. and all
disputes growing out of ,|ZriPvs.i|ccsor the lntcrln-station or application
of agreements covering rates of
pay, rules and working conditions.
Insist! Service Must Continue
| It should be constantly borne iimlnd the; shipping is a.-ease-iec"gi&#39; Iriportance and that any92
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lat , Po. -
v or breakdown in that
sM"92l&#39;iCi not only drprives the men
oi their Wgfc and the operators of
their income. but directly impairs
the lncbome ind business of produc-
ers and consumers who are de-
pendent upon the maintenance of
regular sailings and deil&#39;.&#39;erics&#39; and
thus serlou-51! ntfecls the national
welfare. l92hile. this is true of the
val]:-cad industry. it is on even more
serious mailer with respect to
ocean-borne commerce.
Should our railroads cease to
. action because of labor disturb-
.|mr92s. lnnll-going freight might be
moved l|_92&#39; :mal&#39;ter1ccl mllroads or
F»! othr: mi-nos of transport.-itlon.
if. however, a ton of cargo Bl&#39;i&#39;l92-QB
n an American on-t for ca:-liege
nhroad rm an Aniwicnn-flog ship
vhlch is ticrl up as s l.S&#39;l!][ or inbui-
- cubic. that ton of freiizht which
must more will travel bi the first
arnilahlo l&#39;li "92!"!, and 92rh&#39;>n_ as is
&#39; aquently thc C-1.30. that mmn" is
1. forclgii-tins! s-hip 2-ot only is the
revenue lost o tho Ar&#39;nerir:1n oper-
&#39;92or but it is ~?_92&#39; that fufure
.--moments will also on to tho lor-
Ilgn-flsg or-emfor who was able to
arry that lrright abroad.
The barn firwin-s vhir-h show the
"&#39;=92Iln ill l~&#39;l&#39; l92ll&#39;!I- nl v-lit. lost
.92Hl!iiI am! l--.l llrlu-lil l"vl~ll||r92r
"&#39;hlch haw :*~s=ull|~|i from :=t1lu-s
1-fl ion-ko:&#39;s in 1"&#39;|&#39;-921il!";92| cn~r-
&#39; &#39; Ilizilrirr the
inst. ten n&#39;or:&#39;l&#39;s of till-T such .==lrike.=
M-ti loci-Loiils ivnl92&#39;s"i t&#39;l92&#39;9l&#39; -tll."92t&#39;l&#39;l&#39;l
r-omen. &#39;ihr-ta 9292-r>rr92 -i.&#39;~1. l&#39;|1a"lt&#39;il|&#39;iP
=:<i"~or tie-ups eff&#39;~rlinz tho traffic
oi eiery l_&#39;:1itr&#39;rl Rlsles pm-t. Sear
-&#39;---;1 on-92pl092&#39;nri on Vt"-i.=il.-l rifforlert
1 It lotrii nl Er!Yi¬l".33 nmn-hnnis of
a-m&#39;lt. _Thi92 llfill!  ions not include
work lost by lon_:;sl"oi"en1r-ii. lin-
inestionr-1l:|l_92&#39;, rnnny thousnnfis of
men and women workers lost their
wages whil-1 laid off because 01&#39;
these !&#39;n.=rri!in:9 labor troubles.
Examples of Loss in I-&#39;rr&#39;i;;l1t
Vihilel i:i1&#39;I-tpusslblel e.=tim:1te
the losses misins from tii>im- in
.&#39;F!l$§ht ntovetzi-&#39;*.11l caused by dis-
turbances in th maritime lnhgr
slhlatlon, n few recent examples
rmphasize the complete -:irpend~ nce
rnducers and consumris in
ion of the country unon.. on- ....- -1-tn.-|»~....,1.a-u run P92I|iu|1|&#39;|,.,.; l.  &#39;1
ttions in our shipping industry.
1, As a result of s. stevedores strike
Win Philadelphia. in December. 1937,
ytorty-vs cs:-loads of oranges and
grapefruit remained in the holds of
lvessels which had brought them
from Florida. Strike: on the At-
lantic Coast last October resulted in
the diversion of thousands of tonsl of Florida citrus fruits to railroads
and trucks, with resulting losses to
the citrus growers who were thus
compelled to pay higher transpor-
ltation charges.
l Approximately I3,000 bales of cot-
lton. 90 per cent of it destined for
export, were held at Charleston
during last October because of a
shipping strike; some of it remainedin the streets subject to deteriora-
tion by the elements because of lack 1
of sufficient storage facilities. Per-l
ishable roossuim could not be un-ll loaded.
 The recent Iongshoi-emen&#39;s strike
in Seattle took place at a time for
largo shipments of apples and
caused the fruit growers of the
Northwest to suffer serious loss.
l0:-la shipment of 125 cars had to he
{transported overland to Tacoma,
lwlth resulting loss to the producer.
A strike in Philadelphia last month
|u-r-v--ntsd landing a cargo of ha-. nuns.-u. -
Within the past few clays the news-
paprrs have_ carried accounts of a
isrll0li! food shortage in Pucrto
&#39;Rico. the result of the shipping
strike on the island. In San Juan
lhnlter is reported to have sold for531.50 a pound. Prices of sli com-
=rnoriities have skyrocketed, and
ithore is an impending serious shori-
inge of food. These are but a fewexamples and involve only s fewlstrikes. A study of the effects of
all of the more than 451 strikes ofl193&#39;.&#39; would reveal an astounding listof similar situations.
National Welfare Involved
Thus. it is clear that labor dis-
iturbances on the waterfront vitallymil:-ct the economic welfare of thel country as a whole. A strike which|ties up the port of New Orleans
.may depress the price of corn
grown and sold for export by an
Illinois farmer. Thereby, the Illinoisstable and satisfactory labor condl-l chisagg or meet payments on
* Ths slender margin of profitin
his mortgage to a Philadelphia in-i
surance company is diminished and 
may even be destroyed.
earned by producers and manufac-l
turers under modern competitive
conditions may ha wiped out he-
cause a group of waterfront em-
ployers in I. port s. thousand miles
away refuse to discuss the question
of wages for the run to the Argen-
tine with the men who work their
ships. .Any candid statement of losses
atlffered by reason of last year&#39;s
maritime labor disturbances must
necessarily include not only lost
wages of seamen and lost. earnings
of ship operators, but also the.
wakes of thousands of other work-t
crs laid off while machines waited
for raw material resting in ships.
which could not unload, and lost
profits oi the farmers whose wheat
and corn and other products were
interrupted in transit to foreign
markets, and the losses of house-
holders who paid higher prices tori
foodstuffs necessarily shipped by;
rail because transportation by water
was paralyzed.
A controversy between the opera-
ims and seamen is just as much s
mnllar oi nnilnnal concern as lhn
size of the Federal budget, and it ls
not unreasonable for our people to
pinvids that the principals to so-¢}~,l
controversies shall endeavor to com-
pose their differences before ob-
structing and blocking up the ave-inlles of trade and commerce. Not
reason appears why a technique oft
mediation and conciliation based.
upon nearly forty years experic-noelwhich is now made available by lawl
to labor and management in the in-ldustries of transportation by railiand air should not likewise be pro-i
vidcd for workers and operators in;the shipping industry. & ,
lSays Labor&#39;s Rights Are Safe
No showing can be made thatsuch legislation violates -any rightlof management or labor, constitu-{
tional or statutory. Because prac-;ilcally all goods produced for export I
from this country move from the_
interior to the port of shiprnent,imove from our ports to
it is obvious that railway systr
and water carriers are largely
tsrdependent. Each of our
larger railway systems handles io
traffic with carriers by Wat
Stable and reliable service in ace»
going commerce is just as imp
tant to the railroads and their 0
ployes as stability and reliability
their own service.
It should constantly be borne
mind, ton. that life and property
sea. can only be safeguarded by
competent, disciplined and contr-
sd peronnel, and that the existei
of such a personnel to man r
merchant ships is of primary 
portancc to the national defenr.
Investigation and esp:-rience r
vinces the commission that dli
pline and the responsibility of in:
time labor and the co-relative or
gallons of maritime employers n1
be established at the earliest PO.
ble moment and not in a i
years hence. To tolerate prrs.
conditions and to aiiow the pres
chaotic situation to continue wt
out determined and courageous
forts to bring about proper cor
tions in the field of maritime la
would in our opinion invite
complcte destruction of the /tmt
rrm Mr-rohnnt Marina.
The commission has can-led
the mandate of Congress found
section 361 of the Merchant Ha:
Act oi 1936 with respect to est
lishing minimum manning seal
minimum wage scales, and rear
nhlr working conditions for all
firiers and crews employed on 92-
sels receiving an Operating-diff
entisi subsidy. The c.nml"ilsF
must and will see to it that &#39;
rules and regulations so prom
gated are honored by operators +-
employes alike.
What the commission has do
however  and it is all that it &#39;
do under existing law!, is :
enough. If we are to have F: i"!
chant marine of thr chazact-:1
manded by the policy laid down
Title I of the Merchant Marine .
of 1936, then the enactment of 
isiation providing methods for
prompt and orderly settlement
labor disputes in the .i__x_1_@:1"~r
farmer&#39;s ability to buy nip-_-i-r&#39;nrrr3"ranri most of our imported goodsiurgentljr required.

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TR!KE GLRBI
1 SSECBETARY
sks Senators for iédiation:
w, Says Shippmg tlay Be _?
Overrine for_Ruin&#39;  &#39;
ES A NATIONAL MNGEB
_,_»._~ .___ __
. ,4.-_:, -,.;! IQA7&#39;_ *...&#39;U Iaritime Head Criticizes Miss
. I!....I_2-.--,I_ 92n-._. In-n...1. -_l"¬I&#39;Itlfl$3 IIBW ma - -
Plan Is &#39;Premature&#39;"._&#39;  
zfelzrt of Kennedy:  to thl[reacts Committee on PGIG 15.
&#39;8; Leumm n. Lnmrt
 Bmc1el|.o&#39;re.l_He"I&#39;Iou&#39;ln|:e. 
,, fwAs1&#39;nNe&#39;ro1~:_,_ _ nu. " 16.The
Jnerltime industry either le "ripe" ,
_or eon:_:1li.etlon&#39;_ Ana &#39; -- edletlon pet
lte Iebor diepu - &#39; I - ipef
for ruin," - eph P. -- I
::h.eJ.rm.l.n 7 the lhrltlme -- -- _
lion, told &#39; e joint naeetlng &#39;0 e
B-enete ---~-- ce end - III-
mlttee: today. He moi ieeuewithi
Secretary Perkins, who, two weekel
ego before the eeme committee, had
criticized amendment: to the ller-I
heat Merino Act advocated by
.n°¢Y&#39; .  §?"*-   &#39;3-1 i:&#39;i ma 1=¢=-mi ma am an the-"
tlme wee» not yet"&#39;ripe" end thetf
it wee "quite premature" to et-1.
pt to eettle maritime lebor die-1gee through e mediation baud;
ilertothetprovldedinthelte-&#39;
-ay Lew: At&#39;t_ Q0: QQQ e-um. an-. Kennedy, in an mom-1
inendetlone for unending the keg,
edvomted thin form of medlli.gm; he urged iu mo;-"1..  - &#39; &#39; 
.  Q. &#39; i  I &#39; I
F .
&#39; H e"Hd"_n6¬__"%iEii"&#39;Iie&#39;
erklne nine, he, _ by . to -an _  ..er teetlmonf end lndia.ted_ 
my nu  ¢=.h.m-_= usEnnente. K Hie testimony eru tn the
gm 91&#39; ejetter t1_&#39;1_§en&#39;n_tnr Gog-J :d,_ch&#39;e111§:a.n of the
_mmittee. hit he  pa;-3
reedin the iettei executive E e . . . in _ ,
on  qneltime Q
e membeg-_e at, the&#39;tw9_"J&#39; ,-- - ::.";-- 1-1&#39;-"re 1% -1" }&#39;~&#39;1:&#39;"&#39;.-_&#39;-::;I.*&#39;§  &#39;;"3 Peirce Up Perkins Ammeot  .
&#39; Alter optlining brtey mgnumn
S: l_e.bor_legieletlon§ mediation meF31-mi-mun 1; the IJnlted_ sum meE@1nt|;1;_n> the success qt meetletioi"nee! e 11¢-.-my Qbeé
. nnedy&#39;took _up_ 1lieePei-klne&#39;e
g&#39;umente._ 1 f  _ &#39;-
Thin legislation ll not I-eg_e.zjded92
§;end&#39;wil1 not he regarded u preme-
&#39;-ture by the .A.merice.n people aim-piy beceuee it 1| mm: premature-J
{by thoee who wili elenye eore¢erd~it u long ee there is e ehe.nee_df
preventing lte pnee.ge."_he ltd. ..
i lliee Perkin: had mid that the
eitnetion in the ehipping industry
giered from thet in the rlllroadland that that éfllfii in ihinpini4w_ere not yet fully orgenlzed. The
IYEKQEI of mediation of labor dil-
putoenowlnueetntherni1roe.dln-
cum-y, -1» ma. dejiended .1-=.&#39;.+..uu=¢a prectlcee end i? one oi nnllective  Dill,rmd not yet been developed In> PP:
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NEW YORK TIMES
FEE: 17 DATE:-[operation mechlnery designed...-- -, , qgh
:i&#39;u6|§&#39; " 7 .
pj>_led jnaritlme _
.  wmltid 1eat.;:N he:-.#&#39;_&#39;._~§.. ;_-I    !&#39;f?"l:-£a_§-  ergqmen of &#39;
_1ll&#39;§{V1l1qn_o£the b te lumman me ltetement that to
the priincipiq ofthe 3.111119 &#39;
_ lnpilmbie fo"the lhipping 
duetryetthliiziewoidbe, f&#39;
I?!-"&#39;._!or the rel-Ion the-t  &#39;5
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a4 1078! ere not fully orgnnieg "Q, .Hr Knnnnv 11113-1 -Q" 4&#39; -it: I -7"" """ ""1. "-"-&#39; ,   -Ei"ThII ie eltrenge lr§umeni&#39;..-=--eeld to be premature to putjn
prevent ettjikee end lockoute in "
!.ndu|t.ry_whieh in ten monthe
Q37 .1oet ennmximeteiy 1,000,
en-hour: 01 work by etku
Oil. ;  1|"; ,. 7", L.;;::&#39;._&#39;.,_>&#39;;II.- .
1&#39;1 1s..-.-1<=i-xe,__1>..-.
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_brin"_iho&#39;rder is Thueineaedieorder during the pelt&#39; advereely attached e bneineee
I every port in the United Btatee.
5&#39;6-rave reaaone ehould be ae-
edtoeupportaohargeotpre-turlty&#39; with reepect to the enact-
ent oi thi: type of legieletion. Inaupport of the etatement it l: eaid
l._..&#39;92l- e mploy-..: .-.re not £2115 ore
yanked and that the indnetry i:
"hen a cnreory examination of
e labor lltnation in the maritime
natty diaoloeoa the complete tal-
ot thl: l.l11unent."
r. Kennedy then liated the or-
izatione which already have
ntracte -with heir employing
ups. He named the long:hore-
en&#39;e unions oi both the Weet and¬l&#39;lpl&#39;f0rl1-I-I&#39;1lkllll.il.
_
x
_- z=e&#39;_. _.,
&#39;4&#39;- Coasts and the aeamen on the
eat Coaet. - -
The National Labor Relations
oard, he said, wee eupernmg
leclione among the seamen on the
Coast e.e rapidly aa poeeible.
ectione among the nnlioeneed per-
nel or about forty linee had been
id, he eaid. p
But whether agreement: have
_ entered into _er not,&#39;:___he_I-won-&#39;
._ _
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_--41-76"  I:
ued. there I&#39;ll
iereneea with regard no
P07. hour: ot labor and wor
wnditlens. Neimer mllieotive egre-w.
mente nor mediation machinery
will eliminate theee dieputee. But;
the tunctlon at the eyetem 0! media-
tlon which has been enggeeted i:
to facilitate and to expedite the
prooeee of obtaining theee collective
a ernente and the eettlement ofdgutee aa they ariae. -
I eubmit that employee who have
been able in the past few month: to
paralyze our water-borne commerce
by &#39;quicklee&#39; and eit-down etrikee;
employee one oi whoee leader: feel: 
eo oontident of diecipline in union.
r:......&#39;-"- &at he dtallm the ver
of Cong:-ea: to Info:-oe thl: ie|i:la-
tion, etattng that the employee will
not accept it, are euttlelently or-
ganized tor iegipietion which eeek:
to eubetltute mediation and edncll-
ietion tor the etrlke an_d lockout,"Hr. Kennedy eed. : -He recited tb 197 etatietioe of
hour: oi worl: loet and the number
or etrlke: and lockout: and the num-
ber oi eeamen involved. He aaid
that it we: impossible to estimate
the ioaeee ari.:in|&#39; irqn delay infreight movement.
A wnt-&#39;o&#39;-ere? lat-veer. owrator:
and eeemen i: juet a: much a mat-
ter of national concern-a: the eta:
of the Federal budget." he de-
clared, "and it ie not um-eaeonable.
for our people to provide that the
principal: to Inch controvereiee
ehall endeaverte _eompo:e their dlt-&#39;. -t
-n-/""=:?&#39;.&#39;.":"..¢   -
tea-enee:_ &#39;§IFr-eo- _ "
blocking op the avenue: otand commerce.  . &#39;
Ho r%n appea why i tech-
nique of mediation and ooneiliatlon
be-led upon nearly forty year: ex-
perienee which ie now made avail-.
able by&#39;1ew to labor and manage-
ment in the lnduetrie: oi transpor-
tation by rail and air abpuld notlikewiee be provided tor workerej
and operator: tn the ehippinl in-duetry. - - 92_ -
"lnveetigation and atperlenoe
convince the oommieelon that die-
cipiina and the reeponeibiiity or
maritime labor and the no-relative
obligation: ot maritime employer:
mu.-t be =tahl%-ed at the iirliiit
poeeihie moment and not in a few
year: henna. To tolerate preeent
ioondltione and allow the preaent
ohaotio eituation to continua with-
out determined and ooureyeone et-
tort: to bring about proper condi-
tione in the eld of maritime labor
would in our opinion invite the
oomplete deetruction oi! the Ameri-Hoan merchant marine." &#39; _ &#39; ¢..
1 at the oloee of the eeeeion, lena-1tor Copeland eel: that certain;amendment: eoug t by the Na-
tional ~Labor Relations Boa:-d_
in labor mattere, were acceptable
to the commiaelon and to the mem-
ber: of the committee. r r .
. Before llr. Kennedy left the room,
Senator Copeland turned to him and
Ill: §II"&#39;-&#39;T.
...... _ .- _ __&#39;1which eeuuld ta-r..ty it. jurladictiom
i
&#39; _"1he member: ct thie eemmitrteei..*7""".&#39;.. . -.+&#39;~e=?a" " &#39; -113 1--. .._.
"are very, eorry that you l
your&#39;pre:entpoe_ttogoto!lne __
We wieh you wgnhi etay here!-&#39;3
&#39;T&#39;o:&#39;norrow&#39; lb lommittee will
ten&#39;to teetimony by Joeeph
bead ct the National Kari &#39;
Union, and eeverai longebo &#39;
Laet week Joseph P. Ryan. head
the International Lo hoAaeoeiation, charged IE I1-,_ran &#39;92_vae&#39;a Gommunlat and 
pay or the Communiet party.
Senator Copeland eaid that
B1-ldgee. leader or the Jllarl
Federation and Longeho
Union: on the Welt Coast,
not appear before the _&#39;co
The qtleetlion o! -Mr_.Bridge:&#39;ato etay in this country. he aald, 3a matter tor the Labor De
and did not lie within the jnrledi
tion of the Oonuneroe &#39;Oommi
The Senator waa aalted it
Kennedy or Idle: Perkin: - _
epeaking for the adminietration.
"That 1: a queetion for Q9
dent to enewer," he eaid..t_ .@ at-. ;&#39;_a.¢._--&#39;-.-  - &#39; &#39;
if:

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mm &#39;pre.§en£ unsiettlexlabor.tlwfeness"o_H:he nilwny hbprl-ct. !1¥!5_&#39;l.
lave o&#39;ni-me:-dnnt ;n&#39;ar1ne_1&#39;rom ruin.drlmstized -Hi
Benito committee
e§p1:tnl1§_
And. lrblitldh hcl Itlfrgncns _
tlés
-"&#39;15"-iii?
"h!1&#39;  1&#39;: -  " Z" *7:-T5§I;&#39;.§i§.~1|,~&#39;_§%§q1unmfm:
by  ind logkouta 6!
 of uyqrk dtlgmm: 1; ilnbonci m>1¢_now&#39; nj
ll iat our muqhint mh.r_!ne_ Isf "_t
_m>&#39;m¢n.¢ p1a.p.f.Yet.t.naz"i= my um
that wa;gm==n by um Pemnp. _en=_
is premitprre  the 1nduit:~§;921|___1i_n-j;
orgmlmd. lmspite 01  Hut the_
!h."&#39;°m=11 "1 Eh °°°**!l![",°11 "
nn =~_W=== chm w= ==>==fr.=¢*# I&#39;i1=h
-eynployen pnd éelecons  imw being
_lmn_n:_thelean§en npthe East Qoast un@l_:g{_1192=_&#39;="=g!==".==* tr» ~==h.==a-am-or =»h=.*=%=a-.A;L:n?u.:.&#39;V; __  &#39;;_    
1lr- 11¢."-edaointed out that the  1
yen mmciently well ornnlged to;nva*;lo_d
our inter-borne comma-ce_by quickie-s"
-alt-down  No on; é:1uestlonaétbe_e1!ec;f=;,_é 1
simu regulations have operated
In the n:roa.d eld W? hope tint
willncithesitabef-Olweepnsidelliss ;-~ I
obieccn n: the proznm is p1-emu
Kennedy: meaisure should be adopted
It appear: to oel the nI;1y_o0nstructiie
"qnlylsthezatet?ut1l.tea:ndprope1&#39;_@y
nuke but a1ao&#39;:e mnin_be:ianc9]b!&#39;n-
personnel J0! Ame:-lém Iineriulit
_1@g;_ lo vitally
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ME: FEB 111%1;;
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&#39;1Q5 .a_____i__i____#_4 I __ i,
in time 101- Kennedy ta discusothe""nnt13:r_n_t hispreu conferenceidlj. &#39;-;   &#39;. &#39;> .L~ ~-if":-_&#39;1/ T &#39;*&#39; O t &#39;0
_ .- -or ~- " V~ - l he -. H
smv msr r|g_gT-
4 11!. ;&#39;AdtleB¢&#39;TG0Yéi&#39;x1§1191i§
bi Prwedu1f¢ to Comb»?
-,,.-1 -_192Exorbit&#39;antBii1§ " 1
j-"""~::--="I?&#39; 1*  A; 3+5-=-=Te&#39;~.iiT§1,j;£?§
&#39; wAs1&#39;-1INq&#39;ro1_~r_,&#39; "r=n.__~11
.» 1;e1;1edy, if;--. &#39;1%
swenhtl &#39; 3
f . .. .,__.| g; n . ._. E:
bounce reeommeaadnom £511"
~ ting excenivev nhipbu.i1di.n¢&#39;*éoi&_=
3&#39; when 11$ _$ub:n.its_.  7&#39;°"é_"7 .&#39; 1 F1
Hewlllni1Wed.nesday£orLo 
-- l§Aznbu:ado1ftothe Court &#39;
-James. ,_  , ~ &#39;,-  1 5;  L
1 Commission etcl-l18_ have de-Elafrlbed ls exorbitant and ont:-ageonsé
- dz submitted by ghipyards 101!"geonstrncon at twelve instgo  The lowest comblna-Eglen at quotatirgm exceeds by allV east $311,000 the commission: high-92at estimate of ;2s,oon,ooo for meg
 grodp. The bids range n&#39;om~mas to $300 per dead uyeigm um,_4
compared with $2_00 paid during the
orld War buildmg program, when
eea were It peak level; "P, _
I; Kennedy told the Sena!-e"Cmn&#39;
Imerce Committee yesterdny:1_he situation is serious and threat-I
med to cripple the rehabilitation;~=&#39;1;rogre.m by which the comm&#39;nsi1:m-2- seeking to provide the 500 mer-&#39;
chnnt thins the navy sq.31_&#39;s_ it needs.Elm netlonnl defense, in the next? ten yearn.  , 5&#39;-., ;-~. * f... ;"
Commisloner Emory 5. Ignd, I
retired admiral end the
don: technical expert, bu beenlnr,Lveaummg the am 1: was tndi-;
»uted his report may be nished
r Commission otclnln expllin 1intg92fceeptlnoe at the prices die:-ed on;
the cargo ship; would be unsound
une operating revenues &#39;would4E be sulcient to tor-mt!!!-"_m&#39; ____T&#39;§_laonab1epale3;1 &#39; "&#39; gth at
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This §ndictment,o!1.l_1e= fmm&#39;_e_-ntfthgcw Du! 11=bi.>r,1W_!; 9."1.Miq1> " A-
_t_he NeweDe§.1&#39;s  15%?
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ind man to beéomejhe
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- telling the__§_8ena.te 01:"it is
&#39; Fm? "1"  !~° W-°"&#39;F&#39;*F$a
the: or mi: the hlll in to be t.eatIe¢_!
the many of one nae 1» nuagganj
Y other into n_uh:nJuion by ying up;
e count;-y:  &#39;§a.d1i§i &#39;;
3 either ltrik br_@iqcko1_1te," &#39;. _ &#39;_
_ .od&#39;eou;rle,_tha1Oongfreum ;&#39; betweuj ue, alien -
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 As-1-o It-he&#39; ivnrqi ."pr_ema11_1r=» #1»-
ed by the Ca.&#39;|glnet_memher who
lt long time w6nei&#39;i:ig__wl1|et.he;&#39;_ lit-
,et_.1-tk were illegal u;:l_ who
* taken ye-an to investigate the legal;
Q at _!_=!~_nh! &#39;F1&#39;!!"@?!S pree-meem tin-LEizntry, Ch.l1l&#39;mll.D&#39;KlNNHJYil.&#39;y&#39;l2,"h=m¢";e be &#39;p=¢m:u1-_¢ tonou ma.ch1ne!&#39;y;dBl1B119921&#39;t¢o pr;-MQ z -mm ma lockout! hi &#39;a.qiu»_;_-
 which m ten mpnthl 011937 __ &#39;-
Fee m!1.lion_ mjgn hoim  f_&#39;wo1-Q -by
ea one 1qck_out5.&#39;,n me Q16 &#39;§.§:__11;-
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f .  51!°r491&#39;.&#39;7¢"1&#39;11928¢.avme1yu:e¢ced the
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M Q Lnwqs l_.nd_A1ie.&#39;n Bnmom b_e_nbl§,.
- dislnlla Mr. Kmunmrs pllip werdr
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 YORK SUN
DATE: EFL,U
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I7,...-~"" k   M 0 T _k____. British  -unto Increase. ,__,...S.L1CCt-Beds Kt=.t"11fE&#39;Ci1Land Ta es UVBI 3.11118 35 nliiiliiiicieioii Fiecriiiiiiciifli is
Mi. Smith added, Hg 541;;
Brmh P"-5! 1EDorted costs hSuceeeds Kennedy as Chairman of Maritime !~"°" in British yards 50 per ce -
COl&#39;l&#39;ITi&#39;iiSSiOD-&#39;~fI&#39;uittwN§lTled tO BOl&#39;d~ &#39;  "Ji¢¢iBd as "unthinkable" Mr. K
.-- .  - .--~r<vnr9292v 1-1_1 I
WA§lil£92it_11Ui92-&#39;, rem  Q ill-and a Coloredo born £il0r and aviator took mm; d°,m°l}"&#39;°" "-""°d- - I &#39; - - &#39;  &#39; _ "&#39; eritim C &#39; &#39; 1|.i-133. um tag}; pf revii:aiizin;"_if92i!§rierica&#39;s merchant marine. &#39;. .P 0mm&#39;&#39;°l  "8
u J . - a _ .  imi L r"""T"°rt-sidrnt Roosevrzli. _ who e4
".ibed the ii.-slgninent as a "heed-
aeiie," inroinier} Admiral Land toi-"~ .niicceerl Joeeph Knerly as
rinriirman of 1 -1! MaritlmeCon1rnis-=1-1, He ariipted §r¬!=&#39;ir-.1dn_92&#39; the
2.&#39;ti[i&#39;lI&#39;if*lI of Mi. l enncr!_92: who
ii] go in London R= Amhn+<i1dn&#39;.
Fhe rew chairman is 59 _921-are old.
Ietirerl chief of the Navy! ituieau
-a Consiiiiciion, and ha= iven I.
member of the ccmmiesion since
inst April. Ar such, he has helped
-. iegtto with ship FUh8idiE.S, laborF
I Senator Lee Democrat of Okla&#39;1 the 155$ Year and a half. 1
5
ed?-if Suggestion that new |i-1|
bl. blllii. in foreign yards whenev
1I3 --t --?&#39;l9292f-G11
r Americen prices --.-ere more in
iected on coats by the mei-eh
npmmltiee disclosed that the d ".""° "i °&#39; 1935 which I
ministration, in an attempt to e- * uiid9l"5&#39; mlximl-lm I31"JTiiI 10 I
duce construction costs for an ex- P" cam I *9 ¢°"1"1°i Nice. N
 al
iS|_.:u. dl_1___1 I92 .. _. Lpended navy and merchant marine, &#39;""_ "1"?" U1! the other h
is considering financial aid to email he 5315&#39; ih@_ 5hiPblliid¬r hasindependent shipyards. mmmnt-V 559-""3t |°5*- Ad If
M r. Kennedy had complained that ~ -
hid: .-iubmltted by biz yards were "- _h°_ |"P1*i. U18 Rhivhvildelton high. He said it was quesi.ion- i- "Y" I! ilkiy in be consideret
able whether small yard! could i" 8 U18" 10 per cent."
ham-11¢ cgmmiggiun orders for cargo -&#39;"i--- .&#39;
vessels.=1. dlsellowancee and pavmgnt
home, suggested that high hide
| from the larger yards indicated
"collusion" and Senator Clark.
i!Ot.ibit?5, high consiwuctinn bids and
rithcrdilfii-1iiir~e encniinlei-ed in the
Qi"!i&#39;l&#39;i[&#39;ii lr- lmilrl un the nniinn&#39;s
1II&#39; &#39;[::il ilmiv.
Zqs 4929292.|I&#39;li!ti {92&#39;a92&#39;_92&#39; t.&#39;r&#39;n~:1
To fili not Mr. Kenn:-d_92,"s zinc!-
1i1Pd ieim on ihe CZ ;lT92Tl1iFSif3i1. Mr.
l{u0St92&#39;tfi&#39; eppoinled Max O Hell
"F1 uitl r92.&#39; Hi 1..nui.=. iiow cUrr1mi&#39;<sinn
-oimsel. Aiils said it RS r- lem-
puiary appointment pending the
eelretion of e re.pri7se!&#39;!lnii92&#39;e from
the West Coasr.
Adrn-irni Lands ihi1&#39;i_92-nine years
in the n""y included sieudy ad-
.">mr:emeni. in the construction ~"orn$
tn head the i&#39;!l1F!Bll, a period o[ duly
in the Bureau 01 Aeronautic.-r and
another as arr attache to the em-- _¢ . index-wood l Under &#39;92-nod iI &#39;ihemocrat. of MIEBOHII, added. L4 n______ E &#39;___:1nTh,92y_ hm,-9 been robbing: the 3| Amory cs .LdIl&#39;,|
i
Treastiry for year: and apparently
want. in continue to roh it."
, iIl Defend ]-Estli192ni.¢-!-
American .5hipi!LIiide1&#39;:i were nif-
toared today to go before the Ivla -
time Commission and defend cs 
mates submitted for the constru ;&#39;
lion of new tonnage, accordinc i. i 5 . 92
1-I. Gerrish Smith, president of the, . 92 iNational Council of American Ship , ii ; -&#39;i builders.  i  ii In answer to the criticism of .los<- J

Ken1iedys Hepon-E--#-
The nal report made to the President by
Joseph P. Kennedy as retiring chairman of the
Shipping Commission bluntly states that we
eartnot hope to have a merchant marine built
in this country unless private concerns are will-
ing to make material reductions in the bids so
tar submitted. II these bids are accepted and
the high prices paid, Mr. Kennedy wams that
the merchant marine thus created will 0O1laps_e
of its own weight. To build merchantbhips in
navy yards would not be economical and,
moreover, it would probabiy prove to be imprac-
ticable while the Government is carrying out a
program of naval expansion which will mo-
nopolize the resources oi its own plants. Mr.
Kennedy seems to incline to the belief that
unless more favorable prices can be obtained
here the Maritime Commission shouid consider
the possibility of building abroad.
Commenting on the tact that one class of
bids goes much beyond the rates for ships eon-
structed during the war at the Hog Island
Yards. Mr. Kennedy says:
It ls extremely diiilcult in explain this
situation. All available lndiees seem to
show that the costs oi material entering
into ship construction are much lower to-
day than they were during the period when
the Hog Island vessels were built and that
labor costs, even though higher on an
hourly basis, are probably no more if over-
time and other factors are taken into con-
sideration. Even if wages today were dou-
ble those of the war era they still woulri
not account ior the pre.=e.1t prices, as only
30 to 40 percent oi the cost of a ship is
spent in the yards. &#39; &#39;  The cost oi a cargo
vessel in Britain today is about 21,5 times
the pre-war gure. Bids submitted by
the larger yards on the C-2 ships are ap-
proximately Iour times those prevailing in
the United States in 1913.
There would be vigorous objection in Con-
gress. reinforced by protests from labor and
Ir building interests, if a move were made
to ave ships tor an American merchant marine
co: tructed in toreign yards. Yet yards in
Beliast can today build a cargo Ship or the
C-2 typefor about 0nethird of the average oi
bids received from American builders tor shi s
oi the same size. It is clear [mm Mr. Kc -
nr92ly.&#39;.: report that we cannot hope to get n
}i:m:f=bliiit rner-chant marine at a reamnai.-u=
en I----a cost permitting operation on n prot-
able basis--unless American plants agree to fl
drastic revision oi their proposals. Government
construction as an alternative would be costly
because or the necessity for creating_pi_§.Rts_
work would begin.6 _i » :2. &#39;!
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what ll ll Ia-ut. mq nun! éilcwtrcd I11 ulna at matron-tr pl-ofcniuuiu
trying to pl rich quick in-an uymuinin coupo-
_ In Iuhincloa Iuchn-a dud Hui: apnea 10 the tickzr v-: MP!-I; it up-
tintioql cur Ihnoo-Brltim-Anrficla curacy libiliuiian. Iluy tigcrrl th: yr"
Iit Illll I-his Iypurl-&#39;unil;_u but such artificially uni Ink: thr minty ear
Bin for I rry- I-rill. kl u first curh quick with-H timid i-DWI Ill
tipliih 1:11!-Ill Q12. in at-ha: Itl-fl qtcnbcr bl Bill lb! Ul fall -in cpl!-
stern uupihiiui cl-cctiun unacrhintiu lo nag: fr! uh-I1 hi!-In. In fl: u:
nan Ian man puts nnility than in any u-plip in yarn. E6 iqiahnon
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nix n utturdilr Inca: lurrvnmding GM born rzduunrdin rhtlonahl;
Ir viii pmhnbly bu dnuzd I rnndutlnu for lb,-pr ital-an oi lain
loll 91- F1. 1 lilaubttdly hln I plan: in u hhiurb-lg: or labor-lr rm in nzllaiad. um at mkzzlz 1&#39;10!!! damn! sq nu ma I511-in in um-
Blllm In if bl dlcturl I 1&#39; 1 far u: hydra! I-I in Indzpcndcnt, Lb: admirin-
hatlln mull iqarnwc his dunen by inkling n lountll.-I&#39;ui:_&#39;|&#39; tieht pg it I14 in
1II92_ :2 1.. A gnlltnn pf I-n-n- f .- Qt - Qu- ---- - -- - I---r -Q 11- -- -I.
fiat yur Q! til In mil. -
in-my u-an mu lib: Finn u upnuua dzhilo-can right mu.
loonznlt-hiariil uh-any an it i.1n-uirn tin: lnyurdty, it hon, would druid:
In thr. pmfznionala would bcl-an an dimtlnn din;--uhcthn £0 lmifl or nnbtuu: Ir.
Inutvrlt. ha 1! the; up-uncut oontuzzplntrl I Lcucsiin nhift to Iuhiugt-on, than-
921 lllll-Ti-I5 I Eln; 871% ll U37 In In ltk, Iltlbnll aliln lliltoll tail-tl
U1-Illa: u: old, 011 tun: of u: !igtr&#39;. It null ti: in iith 92h|: 8.0.P.&#39;§ pin
tn uni; own-not Llhna hr niuing grand July ltnrgu npilut lliltriet Literacy
kozu. II Ink: 47 chat-uni was an u political. paint in ail halid-
lhli-tr n|:u1&#39;:1&#39;lng- -Giant
mgggggg Irintcly 6.0.2.-an ountid-1 that thq Iluh thcir corporation is-iuuin
Illnld. qlplj 0 In brlkn to u: can-at pnlial in 111 !incl4&#39;l:ll-11, tnduuti-ill,
flnlacinl, mil:-uh. muttmtian.
lntaltritl I"-Dlt mgull Ir: trad.iM-M1411! Brpuhlican-uind.:d|t:c1, niin-14:.

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Egg n nu n"&#39;1 lndirl P" llunlulr 3&#39;-hand about I 1 &#39; Ilh util 92|lHg_ hi
part thin la ha la I tubing If nllzt 9|, Q;havilakll ha: nally 13",, I.
.Ivn nun potcnt la thg nun an um F h uI151! international an-mu ;
ltablllnatloa ll ulcand at hat In Q 1 &#39; "ill In ta ltablliu: 1| up t ¢I rm M mu. Q &#39; M
&#39; 5! IE-I01!!! of lhrtti obltrvcrp 1; g- &#39;"4 &#39;1&#39; Iilitlcln an to sh: I-cal. may
" 9 &#39;5u&#39;l&#39;I IG&#39;l&#39;l:mnt&#39; Ihznh 7 3 9"-5 Btu I21!-an and Tm-ac: ha &#39; n
""" " ° "I? -MW: numuam lmdrr eoniril nu r on &#39; I ll! tdnni-:
lyliclt-ion of 8|:¢::92I-Pf krsgguanu. -kuatonthzummpypfghg.-nu QI! In I! an all I92I.1l Fan.-_,-;n| _ 1. n "0 u a
Hun in-Ht an lmh as 5 lamp ofFF u um &#39;7 f at &#39;°&#39;;1°1l>G&#39; nation!
"&#39;* "5" i¢<=1¢= th l|:1.f-tnhzt-cat unmm; ;,n¢q,m,,, an In ~ &#39; 61- u: In-lug;
anfh-uczhaaarmo-rag myn I utter: that amid H: aa1.1.|:l altrulaiig, I; ],u_
""1! Piur that a atuatlnn gmgu an-¢1¢. Q. .....92 m. ,, -&#39;: - --- Lit Q" =5 : ;".:r:gg,,-;;
15!! I11 12:  II; -» 1; &#39;5; an ch an n &#39;m£&#39;E_: -"3?! chant an 1| ehaoa.
EJ: Pl-Bane mung &#39; "" u ¢&#39;4 ""1 "I mlmaal ¢=;1¢¢ ¢r gt-
valuation. Km; pa-diet thgt :7 H "5"! "111 bl Iurrlcd and pcrhspl l11I:|_1|;d
F7 indication: that vs an hmomlng sauna. &#39;1 E F in R "Ill! I znthuugg
" &#39;-#5113 0&#39; wnltrunttvc lntrrnattoaal Onptllnn,
In thlu Olcnn. méu In nu; cm - u an cl-1:111-11.1 griltzful to tcrctnry
Iorgrntbnn £0; what thcy call. hi unt an. HI &#39;3 _L_
that u i::::~&#39;tar1*| us;-r awn at ks: "~_&#39; .+1_-&#39;22:.-ah 5!-_aJ.::.1.1aatton fund mahzd to
at Inca: of tbs pound ltcrllng than
u ape: nah: a rain 0 u-utar qur for shot
5:10 lth tin rut tin um nu &#39;.|.&#39;r|:aIu.ry nqa:-sun am brnktn in ml! ofth: m=na- swam uanpcd a uluéa pend: in
t-mtg-.u& puhL1: :t1.atioa.l-
quay about ltahllltatlon fund, opcrationa, and in critic: aha:-ti: that it couldn&#39;t
hat: p1=.ua a nu maytuwu nu-nun-IXII
r A nancial tap-rankzr, than u.-In an I-M11; ah:-rd. put! it thin Q}:"IE1-£J_*=.Y
&#39;1 on" pron: it, 0! mu:-u, hat it certainly look: an it Iorgrnthmh satin
to: gulhllclty In to ottnt th: rising clamor that alum to tuntity thm In Itala
with our-zunau. I1 ac, it vu a :1ngu..l.ar1y 0111: pufuraancc. 11:0 ht wad-I. Illn-
ull a hit rilleulmu by talking at a million poundfn if it nu uapurtanl mu;
la lnuncing zmhnagc ntu. Anya: hnlltar nth uehzap pnhltna hora that
l,t&#39;l chick: ful-
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. =.-2:: 95£."L&#39;!£¢ he Q1; that In;-out dpjzl uk - and I can laftlypoua: 1 -,1;-H sou
,1-1;. .~_-7 that a Lot of anti-u Dtul 0-pokznra will rain th: nut-Lou - Just why
II. hart Ir hut our may ta rtacu $11: Itittuh, and Ihau thz -u with than
u-.1: it-abtlltatlun fund!.12 &#39;21-. .| &#39; 1 I
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llvlly 11&#39; ll M4 £11!-bi:-It:Ly us cut $0 ll U0-A Ind. litlk: Ila lmlntton Rutl-
uii 1| null light; an-mg in thin oun:.::.:r&#39;_;&#39; * Ih = I -1
ngggm A.  $ I G0. - In Tort band dcllxrs - quit I all-lblr dannk Qt
Null on malty for u llcond that rtccatly on nrupnpcr odvcrtiutng ta pram: that
Be.-I 30!: credit ll bcltu Ln may rupzutl than Hat at citluzr O-1-cut Britain or
Pruner. Ilgnn-n Itr: uua In ahvl that our pt: guplu an nu! lutsrut an 10
blhntlnlly loft! Ind nu: r!l.l"1|: tn: illrzn nah iullzr than that 01 til
lud-tn hznpua muons.
&#39; Ion ml lmginl an ss u-nun othir In m-x Iinaxlnl firm In mm out of
lth an Icahn mntrfbnk n¢h&#39;u.ld and contort to u In Kuhn. Pcllthtly
Ieluhby, thy all it. u 11:1-..,rt Lou: Ipzclllluu tn fzdzr. govrrmznt bench,
Int nu an any Bnztl 11. an-ivn Iron thin typ: of Odvn-tistng -at bl ladirret.
Cut!-:01 rulq-uh a an qwmtian u can-zctnru of 0:: Innpurt tiguul an
u an 1-hqr Q0. ht 1! I-I vllrn 921-3 aoutnam u! nn cppninl of th: Jncrtan
Inn ma tu pinion rhtda units an ahnptxnu ma 11:11:: at nun, lm.&#39;|.¢l7l1l.-
Chi, ¢u., ll anal 4:51-cu Ina: than E1:192&#39;.at1ng.
E It inch" nzctlqrlly In mm; Cu rm 0! dln llloiplins whlh
Arqbhhhn; Inllchnhn of Cincinnati or ulna: 1:; at-kn chunk nfahl. abjnh In
htbn Ormghlln unrut-rnlud Language.
It don nun mouthing, hn~.n:1n:r, vb-cu lhhup Jurpb Sdu-ultra of lcvzhnd
jtutlutn lhhop Schlmbl ll R17 clan in Iilhop Ulllghzr of ktrolt ind. his
km I Iilplarilc Gauggq cuppa:-tn. B1: bu la tact perv-:1 with llahap Gill-ldlzr
ml H11-up I011 qt Io:-I Igynz on I nrl of nmrtmry hard. for u radio p-tut.
awn» :1 mu»; as ma to; ml qr :.1:n: mum u um: by mm.
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Halli US$575 CCIFIIIGII
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hlunnn: nnoutivn, hnkzru and utility had: 10 011-pond to bi Jonph P, cnnzdy.
Th far-xv SEC lhAl.l&#39;u il working tht liiomirz-&#39; lid: of lib: In Du! I t.
Iith thz Irittm lad lpnttu bard th: rtd-hndrj I-olton buy tho hnnhi hi: rst
llllirn hzfurz hr -n forty in irqzuting all and bah into tin: aupnign. B; in nu.
lwlngtht ammonia P9ylIllIl&#39; MM tnsl.-work of ti: In Dru]. bu bun fiailhcd,
u that I&#39;D! Ml rm out of adieu-.1 blucptntl. I st!-cud tcrn, it in hinted, would
be Qrretsé ulgen; gntirzlgr te Lrun% gut tg gun Zuni _ruc:n_|-1-lin._z_ mnki tim
and utility inn with rigid rnclitiu. -
IMLI th: prcnidmtiul npohzmnn lnhn no npzuiria plcdgu, hm has than out
lugrltiml that FDR my not Qptclt nodcntc lnifioctim cf th: holding uonpnqr mt,
ii; méilcributui dividmdl inn and 3E6 Ii-r.tui:n. in an-n-:,1 ltaturi tiuzrc nit iigu
um Eh: bi; buy! tr: nt 1;: &#39;1utm:.n|;&#39; to 0.; crcrturtl.IOUII
IPECEIJTIVE Dcnocrntia pencil-pulhcrl Irv: znzrgzd tron thzir |r_th:urtior.1 tubby-
holtl with th: aonnluaiuu that Frcsidcnt loulnzlt an ltuud c. I5 pr amt drop freq
11! H32 wt: and ctiii tin. if tlu: Iona in only 20 pt? ant, kn: I-111 uurr-:.1 nlnoit
up -my llllfl 1-utzl-elf!--cl bl: did ngninlt Bart-crt own.
Th: dzfcctiun, of aourlz, mat hr hirly uniform for than enluuhticn: to hart
any nnning. But uounmg that thz 25 _pcr amt dnzrttml run 1:111-1y rrtn throughuut
tht mtim, 11&#39;. Rana.-n:1t would turn up on Olcutim night with npprozimtzly 214 21:0-
tanl votrl. If thz out up to 20 pct amt, II nuld rigirtcr Yiaturica in In York,
11111101! gnd Indium, 11:! thzrgby boost hit zltutornl total to 356. On iihil ball!
uwthzr 100 Ir! in night. _ I
I. louurvcit is gun-cling en.r|:1&#39;92z1L7 his an yrcdietiml. El: has urittzn th:
mmr of tiwtorul ballots he lzptctn in 0 scaled nwclopc. Brut into il that hr
Q.-cu .1. g -in-m -t 9:6 I-r M-¢1r, lzum-q;v~ nu "mu-vu lpu=u1u|-tvc. thin
gwr tug-cut: that thz P:-nidmt in not no cur: at ucrtain liddlz Iclttrn It!-tr! ll
kiln. Fr..ricy and Eu-jn art-. IOIIII
-g: wvqn Th: Dcmumt no:-at hczduehl at th: :m=znt in to braulzt th: dzzoticuE-Ith rcspzct tn cluau of I-curt, ltntrl and tot&#39;_1.|. Th: diffcrzncz bctvtm 25 I-all
28 pzr amt, punibly Ina, my tcll th: prcsidcntial story-
Ih: --0;}: =5: ==z=: fer E. P.:::::&#39;:t1t £1:-.&#39;r 3.-use age, but -gnu #1,? usurk thtirgran; far 521::-nor Ln.r.dor., an d.l921d:d into tivz 1:11-dzncd znd trtll-rzuugnilrnlt1&#39;O&#39;JpI- Thry rzrc th: knaitca, £|:p92.b1£e&#39;.:: rut: who pimped for rt;-I:-1 r&#39;- thltr ti!-&#39;-I
Ir. Rnalrvtit, R|;1:u-1:11:-_r.a Ihrl war; disgusted with ikrblrt Eocv|:r&#39;I PEP-795"-lit! P-"5
pnlioiu, Jzrru-wniw Dtlantrntl, .-.r.d folk Inn tzcl tr.-t th: G-0-K know! hw =0
Iran: prolpcrity 011:: -at 5:1: it. J4;&#39;.&#39;u,st this 1.:-Q tlu: fame:-.tn ear. any lush an
phr.1r.r~.&#39;xn as 1:-bar, thc oolurrd voters, .iTL-J.M-PM bcm:tioi.n-rial, young vntcrl P-=3
a. politirnl org.ni:r.tiun bulwrkzd by john,
Inn 17:11 cnlcuiv torn insist 1:!-rt thc" hr.-rc ti-.: trig: in ptrozntagcl-thr=t mrt
ttmn 25 pl! ctnt of hi! 19:2 fallmwinq wan nub dnzrt rm: Prcsidn-1:. Bur tn: *-r92==h
in that there r: lo lrmr "in!-cvau-=.t1r:a" in this citation nobody 6:.n tigur: it cut.
Thz belt ktpt records don&#39;t count tar much than dr&#39;.yl-- I th: pulitiooa r.dn.i1= P&#39;1"$"
17-unlit
;&#39;":1:!;r::: 1;! 51¢; =u=n:.; r-.== b|:."w::r92 two lv-cri:&#39;n r=pw1=&#39;= Mrhllnhtl hr fr-t&#39;5-.T:.&#39;_tT{r|:c rlicni in-.u tn: worm in tn: u:v|.1u1.r.zni. vi ----.r.;1:.1 :.1i-.:i:f-- T!-=3 _ Q-7 1-Jag 1&#39;-92itr.r! Stntca, Fir:-rm!: -rd !o11P&#39;.nd¢ -rm | i "p I
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Th: Iutlannl Ihlrl 1&#39; 1 Imnppu lynllntlf2! u 6 I , 10-S-$6 _ i. I I - I 
Isl ll-rlglbilz lnduhnrg nnblll lb: Idzn Jun cm: in qua t-hr Mllltli
ll I-mold. u. hatch I-I-1!!-hull ark! 11-an 1|-L1 than I:-an ital; M nonin-
BIIII lm. III Til lb Illlkx Q21! Icy h I-ht Phllipplnolu. but u; 
I&#39;ll} Qaantct nth t-In Q15: 61.1;-pu--an Anna: tnusport. ma: return Io En Yolk.
0! unru, I111 bl I; rqnl-at trnnnaonthuhl nu Hutu.
t klilf-If! I111 ll&#39;01=lbly haul 7% of Iklr 35,0!!! 1111&#39; on Lcn-lean Q19
Inll. lit if print: cnnzl not bring Iorhd an by cc-All In fork inttrutl
oil: to mutton. thctr lncrican tot.-:1 would bl amt!-: 10,1310. On tkzlr nut an
thy qy pun: u talus-Mlnntic hop aboard 1 Pu Anzrlcnn pint. nal: n ll
hut loaning inn-rd wrld Lnlzrahlp in thin flcld. -&#39;nouns
QQLEQ 1&#39;35 hll .1-wean! I ntrict clnuonhlp on rpuchcu lay highs?-u in u linin-
lltntton. 5&1: only ucrpttou rlthln rzcrnt. nth inn: bun mplmnt £11.11 and In-:1
Iclllan Hurt: dllmuun at mg-rimlhar ma tardy: nfflh-Q at thin particular
mmn 11 logical.
5:: Irv Italrtn Iu: bid to I-ll: that an £1-Q Hr. iannzltlg Imp-gnliuull
,g1|,q_ 811:»: In tbs nan at th: any-and light. llnun. Bapldna and Tngnll
uh mm-=1 to It-if oft an hutlngl, ma ma u: lzrplullfl lucid. mm In mu
in QQLJ-at: Mu tango, Ch In !1IJIJ!l;!! 1.3 pnxtgslzl-lr Q laenzl-u 91;!-ex; 14!;
own r|:atrn1nt-~llr- Landon Ind u: qarnz Gout. n orator In rcjuxutm by long
links:-.1 klrphunl: to ahnn off his original lrpulu; Q4; gg; llkin, 1-jncctu to Lb;
0.0.P. I-lnlncc an: FEE: "hon: ma bu¢&#39;g&#39; frimdl.
Inlldl zrplgmtian 1! that In-. 2.000011%! lnatilatr. I-dill!!! think an: an-
pllp in I|:1.|. ln had--gun victory is curl: bring an unioruzm uput-rant no
lulu: in crl1t:d.lnd In chqtng u lid on u: Lrctblz £211 mn-noon
]§§§[ Eh: frvcllh pun: of Ehrapun ruzrahmt kl rzvolnttoallti hand; Am! drui-
Iyntl Lu 1-M ltrphu tntlltry.
EH51-III! ill virtually Ihdrlna from t-ht luuth lzn-lam rxpurt uid humus If
Intuit: dnlnnd on bu ouqut 0! plan. Our n-pong at nu ntn-1.11,. <1 pghiu
1001! fur mmfnctll of nch, lkrnn mi If-lllna mm lqhldrnnl hm: inlanlzd
math by month. Illlihllnl ll nlllng aolcil Ihipl to Swath "attain muons at
u-pin prlcn I311: hi gqn 1r. for fntzr 1:1 mt: <1|:c:i1J mchmza. Our =1]-H-I27 -
pupil: Ion&#39;t llntnn ta gq,_-7,;-cutionl fer Itptll of t1:.: r:r;.|.gt1un 92:|.nd.:t which :nd.|:1|
at ftghtirg I-lip! ammo! bl: 0011 nb:-01¢ until I 3-mt nttzr thqr luv: qppzuzzd n 1-bl:
Aztlan actu-
Azriul |::l|t1x:z an nhblilh.-znt Iltb far bcluv othtt :&#39;:lt1ou&#39;. But mute!
@ 5;: ",,r_.-.~.e:!.-:~.:nt: Eaéuatrial mblliiatiai ivraii eiiia aura:-:51}: facinii 1:
ktrutt. lI&#39;l&#39;1 Irlntihzxz Ir: twnppcd to ha-n 0&#39;41. I ihatzng uhlp try tncnty-four nin-
lltn Ihul uni lrhu. It&#39;ll not bl: mnurbt napping u Ir. In-I: in 19173QQIII
£7_r_¬1 Ih[!Vli1&#39; a 81>-&#39;.92.n1nh g-uI:rn:u:nt mzrgzg it trill. bz prnmtcd. nth a good-mind.
5111 from .la"l:&#39;1cun eonzu-nu whoa: tuctoriu mad mod: In-c I=qu1|1t1onz1....A unort-
lgl: of lldllzd Labor la th: balliirqg t.r.d|:| 10 rcgmrtzj frr,-n thirty anus...-Han;
Blnnn r! H1!---6 it-C13 1&#39;11-=r;,r1nt.n for 1¢|::92t1:&#39;::nt1~n pnrponn nth ::.z Burma
of .l&#39;.n92r|;|tl¢&#39;at92.&#39;m- Dlpnrtura at -792au::....O¬ $1,953,&#39;f1G.O<D 1-mu: by th: ?ncc&#39;.nnt:&#39;92au-
U01! Hnlnc: Corprlthn in bunt: lad 92l"&#39;J.I$ ¢&#39;mI|:l:..&#39;1l|:|, $l,713,0&#39;00,&#39;J00 kn bean rt-
pn1$....Xn:u:nncc cwqnaiu hm: rrpald :11 but nbnul $5,000,603 at 89,060,000
hrmnd Inn am.
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,5 atlas! M: II YURI lcnrnpr lynulatg
I&#39;_2b-lb - 1 |_J,y [SI-.1 nmu ...1. 1o-.:.92a__ _
ggu in old 1-U6! lhnt I oorrlction nun: cdu; up with rm er.-!.g;1.:&#39;n1 un-quenm 1; nu; prc u u en: of hvl*D!n7. in-. mbtnq 1| mu cf
In purrf I-ndltt blunt ifcrlzrl thing, nu, melt: pro-an of Oh! RI I-{ll-qr92tart;
In of : -1 em: mm in mu nun Io: tntutrlll uuunum, nu -~&#39;
&#39;00: of nu-. unit: 47 nature ta In tori: lute. &#39;
. Inpag In unhn-an loourclt, 0.0-I. uhlu-an Job lion, publizhcr Iznnt
nndomenn-v:n1a=4¢:rmma»uuuu4uy¢1uinans 92m>;:.@mm-92-
dint]; Beau»: hm ruins: nu scat now may ta the ap.u¢ ganzmlran tor ltd
drool II-rpoucl. _
ht mmntkon ll ablird U0 lawn! Ihn mun Ihhi.nl.k:|r&#39;92 history. B Ina I g
Gk auzlmtctls lulu tooth and I111 in 1:!-u urn mica. - I: has pa-and t-ht charge
II!-Int. Bl: lahltlhl Gmncll of Cloak. hit and r! hnuinchu-zru - the hnvl:
{In-|r rnann in hail h92l1inlI:y&#39;l OM11 - hurt Hlclz Ila l.|:n1.921 publicly. Yti an
mum: flowuhn In: nu mm hay tn: can tlwrmghly Itpui-n&#39;b1t cltutnl an
ll! 1|: by It. Quasi
nu 1* nan! ltgnlflulni drlrrtcr tron tn: looucnlt emu: - Ibo nttzihul ah
hctinn to Mn 1uhI.1i1.y to wt: fol  &#39;con:nn1|t&#39; mhulq an III theta: - 1|
kiln: 5 hwy. Hr. O&#39;Lnry ll a pmninmt II! York 5091011: lllnn ind Ill-O hm
Q doll: I ad 6! Jim Tully. El wing: 1 Lat of Ittghi ta Sarah circlu.
It loch tort Ind rt u 1! 31:;-at! "hi yell! I111 turn out ta ht In anti.-
blbltizlt old Ii-ll - Iulplzd 1181!; W lb: I38!-I Evin: B7111 Qdftrtlild ii D1 Mung
offtaiail. cognilncz of it; In Yuk anti.-Kc! hull. chain w ihtlt jwvatlly l.:h:lt--
ag that thq hn 11&#39;: tlu: bunk - art illlgbtnl to H211 lush 5 pun. nape: lérlzl
M mu ennui. . _
Qnnnnlly In York has-rail: hula; u-z gun! lanai. It in piuhily
O&#39;Brien: than u Illln - hanvzr ank; - bu n It:-on; lnotlunnl 1119141. Dikll
it can I: Iuacnufully In _- upteullq mung cnmua wtrrl - HR: dumcu of
Q:-uzring In York: big lkctornl vol: I111 he 111-B.
gggggp Eh: lnzlnl tqnll of p:l1unt.;:1r| 3 of tk In 29:1: Izod:
E-tllui mt! thz u! Hg 1 rnponslhlr ot-|:r¢r of rpm aching: bu ufftcll-11;
and forcmnlly Oahu tun: I-11.1: u: scantlzu caching Oanlnnma an 1 nu-tn or
Qfhtt policy
an-. my lzqahuhn uni an um urn: Quintin: for mam mum aha: mm
Ipfndl Kiln ihgy din! I 71:2 Q5: I-M. dzhncu an! tzuag Mnztathns t:poui by In
In amt an dram: w tn: ltquuzy to cum: lvtry hnldtr of 1 u-ecu -um: 1- lip-
pud in B: ca!-itlcl. Q inrm:-1 may an nu drying up hunts comluntnu,
O1!-hwgh l&#39;r- GI-I |lnIl_n&#39;92 dltll on that. &#39;-|-&#39;b;r|:&#39;Q I BI-1 lftntncl nf opinion turn,
ll Ch: SEC bu Indian: in lh official re.-port: at thz tqvortancz of llquillty 1|
nu-utilntxd. u lied: E-tchnlagl Przdznt ulna I-aha a n.-3; rap at r-1:: c-Ispei
gnlnl ml-nlr 5" I
I

M, % _
u: Ration! IN!!! 92I&#39;I Inupnpcr I;-ndlutz
{Bib 4- I &#39; ill; 10-5-3!
El ligninunl 11:51: in int - fa: tbs int has OIBQ burn Ill {mugg-
ntnl - th: link tad-mag: in upland It: I21!-eondznet H ta: 41;.-:1: of nurt-
tag in vn rlnpotnt qplnut an pvcrn.-unt-QIIII ::""
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- 1QQE A lltlh drum of thl pmplll of prapagnndn ln u-n I-en.
11-tdct. 1931 - lt-I1: lhlndmu u lvld ll-ml-l-M. In-&#39;.wptn1n 1| lhodntd.
Itural rruntion glnqy - Ihnt lill thing will Inppta nqti l &#39;
i limb. 1933 - tht mum It-sue you off gold. lrlctiona mind. Ooaucfntlnl
atly watt. u mzam horrlrl at our gantry Lnaurnlity fihlch cp-011m
_ n: link pa: of rrgltnlng nnqnutlnnzd world ucmdnmy in mu in-d&#39;Ion|:|&#39;
litters!. Int I good an of r:Ja1nI.n¢ ulna. llmugtd Inn; tin - plnU92l&#39;.¢ $7
Fonttn for I-In htlon - icginl In ll: hold-
gpambu-. am - Irina:  nit: gold ma peuaiuny mmlmm n_1»1¢1n.;.r1=.|.=-
£121: dlliétz. 0:1! Inna:-um: £3-uncut wan fl-0:: political opposition Ln huncr,
ind that: 101811! 92T>£921l-in-chznk. Tin 3-urn bu: zhplnl an: I mt: originally
i Al A rzgrritafblz Itylzdhtlnn of mtlonll ohltgltiual - l nzfqrious kniflng
at u right; of arnlltorl - his sumo:-pbona Lita thz nu-11 muury ulnunn.
II oburrrru I11-n Ina; Iunnorin rt I 1n.;:g2:.out or th: chnngz.
gag; mu upcrltlall n 15.4! of capacity =:92Ȣ 9-um. nmm H.191-tr pczacntngti
In wand during thl Iazld u. ks: an run bcuu mm u; nund. Prudnction
1| an-ruy n u. mt: 3: $1,000,000 um of mu upn 1 ytar, =1 compoltd to
63,l33,000 tun: at ml pm: of u In: boon. Only Ln 1929 In u pa-nut mt: ax-
uma. $4 am 1:; my nun. .
t point in at thzorrticnl capacity bu rxpndnl from 48,120,000 teal 1:
1&#39;18 $0 51000-909 III- Informed mun-an my 1:-tn: lnttu gurt 1| par: throw. Bu
may !92a.x-man an chain: that pa-rant jrremctlon ll ill-hntcd. at war: than 901
If uatn:-921 Qpi-$3;
It u nznnd uontlmn u1|:.n|1n: plant rmovnl-.:u and addition an lnuultzd.OIIII
ILIELE-I-Li lvlmlt um: at a u 5 ha In um-| in In m-r - ;-n....4 rum-
nblz auteur: n! tn: your pol conzrtncc night lud to nah! fltlinzkg in 11511..
tin".-300 unions th 000,063 tuba-1 an afflltntcd. with an Lgbor Put; in In
Tnrk-.0193? tn-ning nutlnnk for nrhtlun ewpuaitn iullllh.nun
la.!cC1un Inupapu lynélenu!
Y1:-EISE D3553 UTIBIIHT
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aw 111 rcrsc-&#39;u.. "1 1-:1: var  -FEDITURSI mu P nclzurs ;,- om, :_ 1 &#39;
$01 F08 FIHIASL IN. IIATICIJAL IIHIFLIIEM |-g p|¢-.-;|-ui,,;, glmaing; 
[2513 u I Irv! lithinml th; lull -£5 i-h.-in--n Strut
-_ Ir-r York Clty&#39; I11-SIIINGTKW &#39; ll ~
h"Ii-TTZ§+.e I
0?-I to Cditrrll Thin an-ttrr I111 M: glad to lnqulrz Into my I&#39;|uh1r.,;.m. Inttzr =0! gcncrnl intcrut on rtquzlt of Editors.! 3
*1
F1"!&#39;3!"!CI-1&#39;3 V!-t.tIIY!r thr public my ht told r_rt¢r th: Ihitc Sous: utility oenfzrznel, 1?92md-=1»?-HI fr-ll rflniuic tin: mecca or any yl.-4: tr: pm! public nni 1-rh-at: pm-er in
thl Ttnlltllcc V"-llq 1-:"-.c~"tty M&#39;|:&#39;:, It 1| a dcndineic cl-.-J. ¢<.n-wt tr broken,
&#39; TM T-&#39;1 hours on 1.5: nrgz cl building; diltrlbutlmz 1-1:92.r.t:| Ln l:v|;rr-1 191-5;
t1t1:l- This work 1: to hr don: indlrcctly, 11;: truc, but tn: ward &#39;60 ms: eon: &#39;1
from TVA, ll-mt word in wkthhcld bcenuilz tht ncncnt 1! in uttered Ch: Unltzd 5tr.t¢: &#39;
8°"l"=llI1!-It I111 hr-921 tutu-cu uam-Lats-.k:b1;.&#39; into u: bwinnu oz ncreluzndiling dcotrie &#39;
pca-tr. Appnrrntly T92-&#39;1 dean: am-|: tn ink: th: nttp in vlcw or u: tut nun: mun to _
can bcton tn: Suprlirt court. ,
IIIOI 
8&#39;l&#39;LCJ.AST I11; -:. dz-dlcek um the ecnrzrcnczl lzcnulz, r_uc:-2-ding to thl: utility uzr 1
TE m.-11315; of ecr._.&#39;~cth-.5 distrit--.11.;-.5 nyltuu in Knctrlc, C!-92:_tu:_n;-cg.-., Eirzshvilll &#39;_
""5 33&#39;7" IW15 lwnd the ora :1 rriwtz I-1-ility zntzrrrzsc in th.-.: region. Rm ,
Inn th-I: utility nor.;:.n1u 1:11 thcir c-In dlatrituting system and htpl: tc carry on
peritablr business Outlilz than tltica.
Th: utility um en: n-it lurrcndu--c.-ad _92-ct thry nrclctta to uttzr nqvth-1:5 that
np;|~:r.r| 111:; dc;-in-tn:-ngngcr rsfuml te git. th: gcvcrnxnt half way, C-:1: rt thcr ,mid that, whntcrcr uh: canrzrznez night d|:1r¢1¢~p, th; 5uPl&#39; !1 Cm;-1; tug <1 rt; g-,~_;192-1 I
3! Mr-ritd ma to thz znd, e.-n4 that the !&#39;r1|:1:d.| cf ;.-r1-.-rm: r.-.:zr;r£:: rs. 5»-vzrnnsnf 
OIn£l&#39;Ih1p nun! nrvt Paar that u: militia: Iruld dcacrt thin. ~ 
IIIII
Cl&#39;..GiDED Ettry zffcrt Ll b:S.:&#39;.5 nod: by U1! nd:.1.&#39;Al8¬I"ticn lc Mad cf! Q wntgrbrrnt
I-.r 1: 3:41 FI&#39;r.z:e1It¢. kslstant Sccrctnry cl lllhrr Hem-:.dy 1: at th: n-cm. Jd:|.tr:.l
Iilry, hzad 01&#39; the YII Ihwitlrl fczilaicn, I111 go 1:: S:-.::. Fr-&#39;.:.ncisuo 1.! nzcgsgzu-y,
Th! Cmziiui-"2, hrvsvzr, E-1.: nc 1:|_:r.1 jurisdtctitn cvzr the cmtruvaray,
1 rcq-nut by tkz cc-.-irlicn ti-,r.t the nrrir-1 ction: n:!]:E:1d hostilitlar will 1
ti: u0ll.&#39;.l8ii:n can pvt tn: an I}-.1;-p5.n; 1n into |:!!&#39;:ut is 1=:k:d tor, Eu; th: mt-tart _
ct Um: mt Sm F:-nr.c1::c go tcyc-ad the nap; cf th; nu 1, |rr.£ch usala Irith I:ln£I_=_ &#39;
but ntt lengshtrrncn ur trucknlm. &:plc;1r:r: 1r: dtttrninlid tn akolish u: hiring-1&#39;"-14
Iy8tI:r¢ which is th: ur.$cn$tt:&#39; strangest wupau.
FER my dnigm-at: ti: Ila:-itinz Can; iuisn as frdu-I1 nut!.cr£:3- Ln dealing Irlth _
lib! lilluvn. But the nail. issue -opzr. vs, e1-aim ah:-p-- 1: not 1 fticral quzsticn ~
nocpt as it :02: uzdcr :11: "lgnzr net, which iszlf is -.1:-.|:|:r a _1u1ic1r.1 cloud..----
REGISTRY Dcncerais 11:1": ;:.r: mnr; tnun Hzpubliczns in lizrylnzd, and nrg bgttgr argua-
1?;-.&#39;;&#39;::1= Enlttunrc Sui {:11 givus I-D11 n st:-sng lrud. In GU.-.3. 1:17:12: thz st:ry
1| ¢I.!&#39;:u1::C|:.&#39;l that bnllcu an 2&#39;-.|gh.t 1&#39;»;-r 1C c:r.tl I&#39;ICn ntgrz v;t|:r:., .L&#39;..:th:r :1-cry .
1| that son; 1-ctcrs auspczt tnzt 1.?-: p:.|t.r.1 and ballets my or: zerutiniztd and £d|:nt- -
1110:! by Hz Dtal pest:-nztcrs n.nd_Lr: afraid ts "wt: fcr 14;r.r:&#39;:!92. -
I938-.11-"land is 1: =1-1t:r1&#39;"n, tr. cncx-xx--1: nur.t:r ct vctcr: will bc d.1uq~.m1£I1|:d on
Iurzmbcr 3 thrcugh milurz to rcgstcr prcpzrly or r.1: 1:11. Tr-k.S.r:g ti-As p-ll as 0.
Icrning, bath nutirml e<r"_"itt-tn an: lending on SC8 lip-ml! to Iurizzra, telling
than to gt out th: wen.
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1-°t K" 41;»; first .:.:;r= 1*. 1| ll?-lfrutnd Hut ntlrly s5,c-&#39;:,cc,c ptrson-u are nun _i ..=J1=a to vote. r.:.1n=.-.1 will :r.i1 10,- |;1_?-Qgtgr. F ;,=1,,_@u or th: 1=nv;.1 watt _tn tr aunt |:.- iiaunbcr 5 run to l:&#39;»,IO,£-ac, " --
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TJTZT,-&#39;!Z Party Y£.|:dcrs arc :tud_vi:.; bk: nttituch; cf we-.|:r. Yot¢.:J| In an-.|&#39;: ltntaa tn: &#39; _
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tier:-I in P£n1!.Ify&#39;]&#39;l-llll . out cf n ta:-.1 oi 5&#39;_li,3£.. c.I ;. :91 p&#39;_rt.1:s, t}&#39;.r.r: war: 2:11.920
Inmzn, of who: 157,514 wcrl: P-zpwlicnru and 6;,-M5 I.-cmcrats. &#39;1-&#39;er4:r: voter: cutn-.m&#39;c:r-
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Thu: 21 cou-m.;:_s arr 11-.-s-.;3r rural, Ike; t;-tal 1:Lgi;tr!:t1cn 1:! Qcan ttzzre 2:; 9! pr!
scat that 01 rcgittz.-ed un. QObit
PR.o92:1TI&#39;J.l.L Db-cut rtp rtl from up-I-0-d".t£ fnrrzrl indictt th-tt th:;,- are wtll pl:-wad
EH1 :14 nil cr_=1r.-:1 pr-.7r-.n, I-Lwcrta lhw tn-ma ho.-1 to pl!-.nt cr:.-sicn rzauting urvjl, ,
hm to rm: ditahu ant tcrrnces, -_n¢ htrr tc rltltzn uh: 6:11. &#39;-hes; agents !r.c5l1t:_tl:
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fgggb ,, 10 lulu-.|I.DEhTI.U. - NOTFOR RELEASE ..
 2-3 October 1936
iuur by. the ecref-My at lob:-r, to put the Welsh-Henley act into effect, seen to we
c. stop to the practice cf buying in this fE.5]&#39;l192-I1. except in s:e.l1 mflounts which are
authorized without advertising for bids. The effect .-or the regulation is to force
contractors to comply with the lobar provisions oi the new lazv. ber: the bill nos .
before Ccngres its sponsors stated that purchases of 500d! &#39;1:-om the shelf" would nt
come within the purview ct the law. &#39;
l c-on _ ,
PRCTECTICN Before election day it is expected that large numbers of emergency employeewill be covered into civil aervioe. This my be construed ca 9. precautionary; uovee,
to insure jobs for Democrats now in office against possible party disaster in ::uv;&#39;.1&#39;,;;dI&#39;.
Pl&#39;E1.&#39;u.".ir1:1r&#39;y steps have been token indicating that most of the Home Cvmers Loon Cor-
poration personnel will be placed under civil service without examination. .e
- ilIIII
R-E531-ATIOH goilroad men complain that the Interstate Com-,erce Goemi.-scion is mighty
Ila-&#39;: in regulating competing truck lines. The Commission hr-.s extended until Dec, 1
the requirement for registration of truclcing contracts, so es to give tin; to sepe_re.te
contract lines from comen carriers. Gradually the ccmiceion 1; moving tmrgrd acn-
plete regulation cf interstate truck carriers,
can -
HE! YORK
By James ..=c" Liallin
LEAST A notrble omission from the list of those invited to the White House power pncl
conference gives significant support to the contention that the c.dr1ini=tro.ticn really
is trying to promote an understanding with the private utilities in the Tennesee Vr,llr_&#39;__.&#39;
IIIIZC-Q
Usteneibly the purpose of the f£r1Ej! is to consider what arrangement should be
node to replace the existing contract between T1-&#39;1 and Cor.-eonvrealth 6: Southern which
expires Zlovemter 1. It is therefore natural that Wendell L. -Tillkie oi this 51-our
and Preston Arkwright of its subsidiary Georgia Power should be prominently among that
brelenh A point worth noting: is that Cceeacnwtalth e Southern ran!-:8 men among the
"clean" groups even in the critical opinim of New Deal agents. By the some token,
Ir. Willhie is one oi the few mjcr utility executives who has never been personally
identified with any oi the financial or accounting practices which the New Dealers
have attacked and sought to eliz.-_inr.*.:e in the holding com;e.r.y sot.
I1 FDR were &#39;Bl&#39;}&#39;i.ng to eronote A disguised pu:.-_iti--e expedition against the util-
ities in the guise of s friendly get-together - as ti:-aorous conservatives have feared
- Commonwealth 6: Southern would be about the least vulnerable target he could choose,
FIIIIQ
PORTUFIATE Carry the analysis a step n-th&#39;er, Wext to Con-tzonweolth & Southern, Elec-tric Bond rt 5hr:-re ha the biggest stoke in the Tennessee Valle-Jr oi any private utility
group, Yet you will look in vain for any representative of Electric Bond &5!n=&#39;e
smug the oonfereen . &#39;
 It is to-fe to E.5S.i.I!I that this is no accident, Bond & Share mas picked ir0:n arr-<1?
all the non-registering holding comezznies as the best subject from the E.¢&#39;lmini6tre.tic:&#39;.5
viewpoint or. which to test the legal &#39;:&#39;;1i:lity of the holding company act. G@FE1&#39;1~"-:Y~*&#39;_
lawyers
lost of
So
use thebelieve they have on excellent chance of pro~:ir.g that this ;_:ro&#39;-1;: hn I-!"~»°t1°&#39;=*
the alleged abuses which the hcl-ling cor.;.&#39;c.mr not seeks to correct-
Ih-It? 50 the keeneit IIe&#39;-1 York observers are convinced that if FDR intended YE
pc-wer pool pcrley rs the 5p!&#39;ing92:~.&#39;.&#39;f92rd for another nssnult on the utilitieihe
.wouir1 certainly have seen to it that Electric Bond & Shnre was among th~1=E P=&#39;i55-&#39;
Conversely, ii he seriously plans e. ptcct pact with the induct:-_,r he pre=1L&#39;=B-bl:-f FIETEYS
to negctinte it with the "purest-&#39; company he c".n find .- not one of the :.11eeE°12r -5*
1ril1"ir1ow=- Thereff-re his ch:ice c1 pa.-; &#39;. conferees is rated r. 1crtunr-te Jilin
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Director
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&#39;Ia.sh:|&#39;.ng&#39;l:.<n, D. O-n.. _ J
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Dear Sir: rt. THE FREE  at nsumcnsn IECKRUF
& BEOBACWIER &#39;
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* &#39; i Attached hereto is the clipping of the column vcmtmr. 
.T.5*&#39;S&#39;1&#39;UFF" of the January 13, 191,1 Daily News.
Very truly yours,
»szzZ¢»4={ v-~l"92
B. E. storm-r , &#39;~° _4.
Special Agent in Chaygéx ~ WJ ,, t 92, Y
HIGIDSUE 2.;<§<*._ .392 92 92.92 -t
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During w attendance of the course at Hendon, it was impossible to
see Ir. Gowen or nemhers of the Embassy hut I learned that he had kept in touch
"eifh the lard to ask of Q welfare. Subsequent to the course, I contacted llr. -=
Gowen my telephone and net . n-me of nu, a I:492DoIrick, Ianager of the .lmer- .,
ican Express Office in London, who"rende1-ed assistance in arranging for en &#39;_&#39;,
departure. I later called upon Ir. Bowen at the Eshasq at which time he con- I
gratulated IQ upon the highly successful completion oi the school and upon ""&#39;
the a ops-iate "&#39;-"--ice iee at the for-nil fiwall gathering for Hessrs. Ha.-25&#39;our92;.sau.1q and 1.  skew at law Scotland Iard.
is introduced us to Ambassador Josepenneq at which time I ex-
pressed the Bureau&#39;s appreciation for the assistance of the State Department.
Ir. Kennew, at that time, instructed llr. Goren to prepare e vs:7 cordial
letter to The Right Honorable Sir Samuel .1. G.}Gloa:5e, Bt.,92.G.O.S.I., G.B.E.,
te, thanking him for the many courtesies extended
He instructed llr. Govern to make it more than &#39;
the names of those persons re
g92,;_ -iszazmn L1-5 6ile at the Embassy I also called upon ConsulQ .&#39;?-.::&#39;4*im ,___  . 92. .-;UJl.G., ope, 5OCrOl.l-1&#39;] Of
the representative of the FBI.
a thank -ou note and to include 1
nakjng the visit a success. _
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bar of Commerce at London. Ir. Douglas Jenkins was also in attendance. The
conversation during the luncheon was large]; focused on the Bureau and the won
derful nor! of the irector..O&#39;I&#39;-v .
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During as ow in England, while attending ts. course for &#39;f&#39;tective"&#39;Inspectors and Sergeants at Handon, nenhers of the American hhassy; 1 hmsfanor
Square, were extremely courteous. _ L,,______"""
Shortly after arrival, Ir. Iranklin G.wen contacted as throughChief Constable Johan Blgiorwell, and invited us to call at the Embassy. I called
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Ira. mam-mplq, Chief, Passport Division, sag. Department, tho is a personal__ friend onus. &#39; _ """"""""&#39; - &#39;
""~.Ir. Goren introduced us to Consul General Douglaelgenkine and made
arrangements for a luncheon on the following dq. e also insisted that I join
him at e formal premiere showing at the Empire &#39;.l&#39;heatre the next evening, which
invitation I accepted, and that evening I attended the Theatre with Consul General
._ GoIe_nZ.__ _I attended Ir. Goven&#39;s luncheon at the -
!!lu_b,&#39;95&#39;Pic"ced!Jly, ind get Si:&#39;§&#39;nestP£§lilerness;""&#39;Per1.§!:_i1&#39;1*T *ant Under-8ecre1.&#39;-9.17 of sum in -gag. oi Aliens; cslossiemim, United Statesan Attache for London and a Ir , atlett, former President of the lnerican Char 4
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Iemorandun for Ir. Clegg -- 2 - June 25 , 1938
thank his ca: the Director: behalf for the new ehurteeies extended.
On the evening _q_I June 7, 1938, I afforded Ir. Goren a seven course
dinner an a hrrther token of our appreciation for hie lerricee. Ir. Goren
advised he that he nae positive a letter would be directed to Ir. Cordell
advising him of the highb Iueceeeful visit of the representative of the
I to Scotland lard and of the Ian feeling of Iriendehip which nae createdhp this visit. "   "&#39;  * &#39; .&#39; &#39;
I arrived at Southampton preparatezy to ea:lJ.ing&#39;on the SS President
loclevelt and Vice Consul Paul Caneronjeddimm no there to meet ae and render
aw aeeietanee possible. A " -e -
It is II1IBOB&#39;li0d that e letter of appreciation he prepared for the
lttornqy General: signature and directed to&#39;Ir. Cordell Hull, advising hm
of the services of the aembere of the lnerican Emhaeq in London. This letteria prepared and attached. &#39; &#39;
Enclosure

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