STRANGEST TANGLE IN AMERICAN HISTORY.

Auckland Star, Volume LXVI, Issue 201, 26 August 1935, Page 7

STRANGEST TANGLE IN AMERICAN HISTORY.

POLITICAL PUZZLE. Stormy All-Night Sitting in Congress. ADJOURNMENT DELAYED. (Uuitcd P.A.—Electric Telegraph—Copyright) (Received 10.30 a.m.) WASHINGTON, August 25. 11l one of the strangest Parliamentary tangles in its history, Congress failed to reach the expected adjournment on Saturday. An allnight wrangle centred around .the third Deficiency Bill and the Seriate amendment calling for mandatory loans of 12 cents per lb on cotton and li cents per lb on wheat.

Agricultural Administration officials fought vigorously to prevent Congressional jostling with the newly-announced plan for a 9-cent per lb loan for the 1935 cotton crop with a subsidy guaranteeing the growers a 12-cent return. The House of Representatives must vote on the Senate amendment in the coming week. Previously Congress sent a number of measures to the White House for the President's signature, including the Neutrality Bill, the 250,000,000-dollar Tax Bill, the Utilities Bill, and a measure banning gold clause damage suits after January 1. The President, in a surprise message to the Congressional leaders, asked for legislation next session to preservo such social and economic advantages as were gained in the N.R.A. and other emergency legislation. Neutrality Measures. The neutrality measure places a six months' mandatory embargo on arms shipments to belligerents and makes it unlawful for American ships to carry arms and implements of war to any port of a belligerent, or to a neutral port for transhipment to a warring nation. It also gives the President discretion for restricting the use in American waters by belligerent submarines and the travel of American citizens in war zones and on ships of belligerents. A compromise was framed on the major issues of the Utilities Bill, but the President and the power interests contended that it achieved the big measure of holding company abolition that he demanded. It provides a farreaching system of Governmental regulation, both of holding and operating companies in the power industry, with securities and power commissions empowered to supervise the flotation of securities, the sales of power, and financing and operating methods in general where strictly inter-State activities arc not concerned.

The most important calls for the abolition of holding companies' in general, with a compromise proviso that two holding companies may be erected upon the one system of adjacent operating companies. The abolition section becomes effective on January 1, 1038. The President withdrew his objection to the short period of grace, during which gold clause suits could be brought, believing that the price level would be sufficiently stable so that no one could prove damages against the Government. The Tax Bill increases surtaxes on the bigger individual incomes, increases taxes on estates, raises the levies on gifts and stiffens corporation taxes. The bill included no inheritance taxes.