New Britain herald., 1924-01-10
Smith, Democrat, Head of l. (. (. Promises to Handle Railroad Legis- lation Sanely-Public Hearings on Russia Still Another Muscle Shoals Plan-Treasury Defends Mellon Policy--Coolidge Approves Shipping De- cisiOn.

-------=-----z~--= Washington. Jan. 10.-Elevated to the chairmanship of the senate inter- state commerce commission with the aid Of the insurgent republican ana i",lIrr labor group, Senator Smith, democrat, of South Carolina, sent forth the word today that the com mittee would handle railroad legisla- ton "sanely and in the manner the people will want their representatives in congress to act on 1t"
 Senator Smith said he probably would call the committee together before the end of this week or early next week. First action will be on the nomination of two members af the railroad labor board. Several measures for amendment of the. transportation act have been referred to the committee.
 Senator Cummins of Iowa. thsf regular republican choice for the committee ehairmanship who was defeated by Senator smith, retained his place on the committee today by unanimous consent of the senate k
 New Muscle Shoals Plan.
 Secretary Weeks has received st,If another proposition for disposition. of the Muscle Shoals project, Deti 4s of the new plan have not be, ais- closed, but it contemplates manufac- ture of nitrates for fertilizer.
 The Secretary said today he had not yet examined the proposal and could not tell how it compared with the Ford offer or with tho plan just presented by a combination of South- ern Power companies, contemplating rental Of the Alabama plant Tor | period of fifty years with a proviso that title to the property remain in the government and that the way be- left open for fertilizer manufacture.
 The new proposal still is tentative but tho Secretary said it came from entirely responsible people. He de. clined to reveal the source. He has been asked to make such suggestions as he desires and he appeared to be- ieve definite offer to purchase or ease the Muscle Shoals plant would follow.
 Defends Ncllon's Plan
 Tn support of its argument that the Mellon plan will loosen up for pro- iuctive investment a large residue of ,apital now reposing in vaults in the iorm Of tax exempt certificates, the treasury today made public com oilation showing that on January 1 q otal of sl2,3O0. 0.O0O. .00o in such secu- 'lties was in tho hands of the Amer1- an people.
 The treasury figures were said to include only one issue, the Liberty + per cent bond. Of the federal gov but exclude all securities deposited with the government and ther circulation bonds. other issues re partially exempt. and Secretary fellon believes the figure given prob biy underestimates the exact mount now outstanding.
 Coolidge Approves
 President Coolidge today gave final pproval to the shipping board resolu- lon placing operation of the govern 1ent's merchant fleet in the hands of he emergency fleet corporation. He 1ade his approval. however. contin- ent on the boards cooperation.
 The president, who called the board lto conference is understood to have his dissatisfaction with ome Of the details of the resolution. he would have preferred a reater grant of power to the fleet orporation. He asserted, however, hat he would not make details a mat IF of controversy. so long as the oard cooperated with Leigh C. Pal fer. who has been selected to head he fleet corporation. The executive Jade it plain that should such CO., not be accorded he would lsist on full operation of government lips hy the fleet corporation. so far ? permitted by law.
 The hoard in it's resolution deleeat- operation or the fleet to the fleet but reserved it's authority Ter ship safes all0cation and trade 'utes and it's right 10 dispense with Ie services uf the fleet corporation Tbes@ reservations are un- srstoOd fo be somewhat unsatisfar- ry to the president
 Chairman Farley CT fhe board. after .e conference said that an amicaBss yreement had b"sr rrach.I ..~F .at tho board had pledged it's CO., with Mr Palmer. sz. plans to c0ntar with Nr. slmer. who has been withholding of tha fleet corporation ren5inE settlement of tha Iession or his powers.
 Public Hearincs
 \ subcommittee of tho senate for g1i relations siu be named under a solution adopted by that comrnittsa day to bold public hearings on fhs -eposal Of Senator BoFah. republican, aho. urging recognition of the y1et government of EusSia. The committee drridsd n to 2 in vor of public hearings. Senators ills Ohio. and Pepper. Pennylra- a. republicans. voting in opposition. ,fuposition Of the subcommittee 4s not discussed today. but ft vas nsidered certain Senator Borah viH
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