A STRANGE TANGLE

Waikato Times, Volume 118, Issue 19664, 26 August 1935, Page 7

A STRANGE TANGLE

WRANGLE IN PARLIAMENT.

UNITED STATES’ PROBLEMS.

PRESIDENT'S SURPRISE MESSAGE

Uniter' press Assn. —Elec. Tel. Copyright

(Received Aug. 26. 10.45 a.m.) WASHINGTON, Aug. 25

In one of the strangest Parliamentary tangles in its history, Congress failed to reach the expected adjournment on Saturday night.

The wrangle centred around the third Deficiency Bill and a Senate amendment calling for mandatory loans of 12 cents per lb. on cotton and 1J cents per lb. on wheat. ■ Agricultural administration officials fought vigorously to prevent the Congressional jostling of the newlyannounced plan for a nine cent per lb. loan on the 1935 cotton crop, with a •subsidy guaranteeing growers a 12 cent return.

The House must vote on the Senate amendment during the coming week. Previously Congress sent a number of measures to the White House for the President’s signature, including the Neutraliiiu Bill, the 250,000,000 dollar Tax Bill, and the Utilities Bill, a measure banning the gold clause regarding damage suits after January 1. Request By President. The President, in a surprise message to the Congressional leaders, asked for legislation next session 16 preserve such social and economic advantages as were gained in the N.R.A. and other emergency legislation. The 'neutrality measure places a six months’ mandatory embargo on arms shipments to belligerents, makes it unlawful for American ships toj carry arms and implements of war to any port of tlie belligerents or a neutral port for transport to a warring nation, gives the President discretion in restricting tiie use of American waters by belligerent submarines and the travel of American citizens in war zones and on the ships of the belligerents. A compromise was agreed to on the major issues of the Utilities Bill, but the President and power interests contended that it had achieved a big measure of the holding-company abolition, which he demanded. It provides for a far-reaching system of Governmental regulation of both holding and operating companies In the power industry, with securities and power commissions empowered to supervise the flotation of securities, the sales of power, financing and operating methods in general where strictly Inter-State activities are not concerned. Abolition of Holding Oompanles. The most important point calls for the abolition of holding companies in general, with a compromise proviso that two holding companies may be erected upon one system of adjacent operating companies. The abolition section will become effective on January i, I mis.

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 he sufficiently stable so that no one could prove damages against the Government.

The Tax Bill increases the surtaxes on bigger individual incomes and taxes on estates. It also raises gift levies, and stiffens corporation taxes. The bill included no inheritance taxes.