Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-28
j. 5. CITIZENS HOLD
INTEREST IN PERU
$3.50, 600, 600 Is Estimated
as Total Stake for Amer
lean Capitalists.
BY JOHN F. SINCLAIR.

NEW YORK, August 28.-Augusto +
Ter,Iia' deposed President of Peru. wa
too ambitious to bring his country ul
to date in too short time. accof1lnl
to his friends. His administration the.
saw, was thoroughly modern. He tavoIet
internal improvements, mcta1nS -, s,i
rebuilding of Lima, the capital' an eA
tensiye road building program ana IIl'
vast expansion of Peru's school system
--~innnrovements which called for grea
r,uns Of money and constant increases
In the tax rates, until they reached
point too heavy for the people TO pear
The overturning OF the government
has been followed by military olc'
tatorship, but no far-reaching changes
eve evnected Immediately. The new
government has announced that II VII
adhere to the presenet constitution
oIfhouoh every officer in the cabinet i
a military man.
Eject on u. S. Business
what effect will the overturn IN Peru
hove on American business? Probably
yeyv little. OF the American ntereSLs
tnaTe estimated as high as $25O,0OO,OOu
eho,,t S85 600 900 represents govern
wont loan fioated by the National Clty
Rank of New York, and Seligman o. 20.
an American investment mouse Milcn
has specialized in South American
securities. 1aroaIv
,o,aneroed in Peruvian mines. Ihe
Euoeenheim brothers Of New VOTE
ers Probably the largest, for they con-
trol the North Peruvian SIhelIiils, o ~
EeAninp Co, large copper ana sly
noy,nany The All American CABLES
e. which controls the National 1e i
1raph business and also the Lima . tSier
phone system, is owned ny ot;ora al
American concern-tne 1lVel
Telephone & Telegraph co. ,, orc
other mining interests IN Feru az
..,,yay1,es controlled by the Cerro oe
pasco Mining Co. OF New oik am -
~ two substantial corporations, oo ai
Saa+ad nv William Randolph Hearst, Tie
American publisher. 800 ~.
other American interests aneceeu CIT
the Foundation Co. OF New HoIk, INV
working on several large cons eIucS 4t,a
country. and the international PeCro,
ieun1 Co. controlled by the Imperial
IN Co of Canada, which in turn Is
cortroIled nv the Powerful Standard
oil Co. of New Jersey. -,
whether the change from ciyll 10
a roiIitarv government means anything
more thar an internal struggle Tor pow
or viii develop in the next 80 Gays
Surplus Farm Leaders.
Even the political enemies OF Alex
ander I,epge. chairman of the Federal
Tarn, BOARD admire his frankness and
candor, He has been a big business
leader most successful one. he mas
been at his present job working many
hours a day for over year ana IN
a recent article in Current History ne
summarizes his conclusions IN seVeraI
pointed paragraphs.
"The fundamental trouble with ag-
ricultllre is lack of effective organiza-
ton = the adjustment OF production
to potential market requirements has
been ignored in the past agricul-
ture VIII never be on a profitable basis
until the farmers, like other producers,
adjust their output, quantity and quail
fly as we'll, to potential market require
ments, at the same time doing what
they can to extend and expand those
markets"
Later on In the article the Farm
Board chairman admits the inability to
meet the problem by any sterilization
operation, (which would remove the de-
pressing surplus from the market to be
mercllandized at some later date"
But on Monday at the Iowa State
Fair. Chairman Legge touched upon
another phase OF the problem--the sur
plus Of farm leaders.
zone of the most difficult SURPRISES
We find Is the surplus Of leaders or
or managers of groups that have in the
past attempted to solve the problem
along different lines"
True. Put 100 farm leaders together.
from all sections of the country, and
more often than not battle royal as
20 policy will result Farmers, to adj
vance their economic fortunes, must
unite on one program. This is the Legge
contention.
Tariff Schedules.
The business man who expected to
send his protest against any particular
tariff schedule to Washington and have
that schedule changed overnight is
doomed to disappointment Many for
eign business interests also seem to have
the same idea.
To change any schedule is a difficult
proceeding. 1t requires an immense
amount of investigation both here and
abroad. testimony in detail, depositions
court appeals If necessary. and a hun
dred and one other red tape rules laid
down in the HawIey-Smoot act for the
guidance Of the United States Tariff
Commission.
Only in the matter of finding out the
approximate average cost per barrel of
crude petroleum from the oil fields of
United States and Venezuela is the act
epec1nc In It's command to the Tariff
Commission. This information must
be supplied within eight months.
But other schedule changes will re-
quire more time-plenty more. I doubt
If any schedule now in force will be
changed in any substantial particular
within year. More likely any out
standing abuses in the rates will not
be corrected within two years.
Too much should not be expected of
Chairman Henry Fletcher during the
first year.
Wheat and Silver Prices.
The Cambridge Associates, IncoIpo-
rated, of Boston, have been taking issue
with Prof. Carver Of Harvard Univer-
sity. who disputed recently the conten-
ton OF the Cambridge Associates that
there was any definite relationship be-
tween wheat and silver prices. The
Associates contend that when silver de-
clines the buying power of the wheat
consuming people of the Far East is
seriously affected.
1t is true that the eastern countries
China, India, Japan, etc--produce less
than one-tenth of the wheat of the
world and consume more than one
half.
William T. Cobb, I'd. of the Cam
bridge Association contends that the
decline in silver is not the sole, or even
the chief cause of the decline in wheat.
but merely contributary cause"
IT Is hard to see how Prof. Carver
can take issue with this position.
(Copyright, 1890. by North American Nsw~