MR ROOSEVELT'S TROUBLES

Press, Volume LXIX, Issue 20987, 16 October 1933, Page 9

MR ROOSEVELT'S TROUBLES

Hitches in Recovery Plan VIOLATIONS OF CODES (UNITED PEESS ASSOCIATION— BY SLECTEIC TELEGBAPH—COP YKIG HT.) (Received October 15, 8.20 pan.) WASHINGTON, October 15. General Hugh S. Johnson, in an interview to-day, admitted that the recovery administration was faced with a serious enforcement problem in recalling blue eagle emblems from alleged violators of codes. Ho referred to the right of the President to take such steps under the agreements which had been signed, but admitted that he did not know if the action could be enforced in the courts. He doubted the possibility that those who lost the emblems and had their names published might have grounds for a libel suit against the Government, and indicated that more withdrawals would follow proper complaints. Meanwhile, according to reports from New Rochelle (New York), one loser of the blue eagle claimed to have increased his business as a result. The proprietors of a beauty | saloon there were asked to give up the eagle because they were said to be paying their employees less than the minimum wage specified in the code. They did so, after which business was immediately stimulated. They announced they would cut prices and wages and engage more operators, in direct contradiction of the National Recovery Act policy. Coal Dispute. General Johnson to-day indicated that the administration considered the dispute with the "captive" coal mines closed. He declared that the attitude of the operators was satisfactory. Miners still refusing to return to work would be considered to be violating the code. The Government's refinancing programme regarding calling part of the Fourth Liberty Loan raised the dollar to-day to an indicated gold value of 69.13 cents. Sterling broke by 131 cents to 4.53J, with the result that domestic security and commodity prices are sharply down.

RIOTS IN NEW YORK MOUNTED POLICE CHARGE DEMONSTRATORS NEW YORK, October 13. Mounted. police rode their horses through 3500 demonstrators at the National Recovery Act headquarters to-day, making 50 arrests. Riots started when 2000 striking members of the tailoring industry assembled and officials alleged that the demonstration was inspired by the communistic faction, which refused to be taken into the right wing unions after mediation by recovery administration officials in the threatened strike of 25,000 workers in neighbouring shops. STABILISATION OF DOLLAR PRICES NOT YET HIGH ENOUGH (Received October 15, 11.15 p.m.) NEW YORK, October 15. \ A dispatch from Washington states that it is learned to-night from a high authority that "the Government considers prices are not yet high enough to warrant stabilisation of the dollar, and that it "would be absurd to attempt, in the present circumstances, to stabilise the dollar against foreign exchange." The correspondent adds that the President plans to provide dollars of constant purchasing power; but must await higher price levels.

FINANCIAL SCANDALS EVASION OF INCOME TAX (Received October 15, 5.5 p.m.) WASHINGTON, October 13. James Forrestall, of the Dillon Read Company, told the Senate investigating committee to-day that he paid no income tax in 1929 on 864,000 dollars profit on stocks by setting up with his wife a personal company in Canada. The tax, he declared, would have been 95,000 dollars. However, it was disclosed that this year he paid 6000 dollars tax on the Canadian company, after the recent disclosures before the committee concerning the incomes of other bankers. It was also revealed to-day that 300,000 dollars, only half of which had been repaid, was lent to Mr Couch, director of the Reconstruction Finance Corporation, by the Dillon Read Company in 1928. SALARIES OF FILM STARS PRESIDENT'S VIEWS OVER-GENEROUS EMPLOYERS TO BE FINED (Received October 15, 7.21 p.m.) WASHINGTON, October 14. Under Presidential influence, provision was written into the revised motion picture code late on Friday by Mr Sol. Rosenblatt, deputy-re-covery administrator, calling for an assessment of fines up to 10,000 dollars against producers found to have hired talent at unreasonable high salaries. This revision followed the disclosure that the White House is opposed to the payment to film stars of salaries five or six times as large as the President's. The code as originally proposed contained nothing which could be