CODE PROBLEMS.

Auckland Star, Volume LXIV, Issue 282, 29 November 1933, Page 7

CODE PROBLEMS.

AMERICAN WORRIES. Liquor, Films and Grain Market Dealings. STATE CONTROL OP DRINK. (United P.A.—Electric Telegraph—Copyright) WASHINGTON, November 28. A message from Warm Springs, Georgia, states that President Roosevelt yesterday signed the motion picture industry code under the National Recovery Act, and authorised a temporary liquor code in anticipation of the repeal of prohibition on December 5. Tlie provisions of tlie former code have not been published, but the chief administrator of the Act, General Johnson, stated that it provided for a study of the high salaries paid to artists and executives, rectified unfair trade practices and provided for a study of the ! censorship problem.

Mr. Lawrence Lowell, formerly president, of Harvard University, is to observe the industry's self-censorship system for a stated period, and then make recommendations for more stringent control if necessary. The liquor code to bridge the gap between the repeal of prohibition and permanent legislation by Congress, provides for the complete control of the sale and manufacture of intoxicants and the fixing of the price of these. The hearings yesterday on the proposed N.R.A. code for fair dealing in the nation's grain exchanges found operators pitted against representatives of the agricultural administration on many important points. The code as prepared by the grain men makes no provision for Government control of speculation, though it fixes a margin of requirements and regulates daily fluctuations, etc., to which the administration objected. Although the matter was not brought to a definite head observers profess to see a trend toward a widespread contention that the Government should perfect a marketing agreement between producers and processors which would in effect eliminate trading in futures. Some time ago, it is understood, Mr. Roosevelt was studying such a plan, but apparently ho abandoned it. Now, it is being asked, will the administration reconsider the proposition? Mr. E. J. Grimes, chairman of the Grain Committee on National Affairs, forcefully answered the implied challenge by defending the exchanges and declaring that trading in futures* and "healthy speculation" in grains would have been preserved unless it had been the Government's intention to abolish the existing grain marketing machinery.

BANKING "PROBE." FILM INDUSTRY AFFAIRS. WASHINGTON, November 28. The Senate's investigation committee continued its probing into the motion picture industry yesterday, particularly tho Fox Company's financing through tho Chase National Bank. It Avas revealed that in 1930 the Chase Bank advanced General Theatres (a Fox subsidiary), 6,000,000 dollars to support Fox securities in the open market in an effort to facilitate the large refinancing necessary.

In 1931 General Theatres paid 4,104,000 dollars in dividends (although its losses exceeded 5,000,000 dollars) apparently in an effort to support the value of its securities.

In explaining why the majority of the major film corporations are now bankrupt, an executive said receipts had dropped from 1,300,000,000 dollars in 1929 to 700,000,000 in 1932.