Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-04
HILL WINS BONUS
TILT AT MEETING
Head of American Tobacco
Company Is Victor Over
Minority Group.
BY JOHN F. SINCLAIR.

UIGS1QCHt Vi Tic <A4LGSACdAl AO1uNSO ~
won the first skirmish against the
minority group of stockholders, who
contend that the bonuses given by his
company were too high and too much
The Hill administration was overwhelm-
ingIy Endorsed by the stockholders at
the annual meeting.
But Richard r. Rogers, former coun-
sci for the Interborough Rapid Transit
Co. is not through with his fight. He
has announced that he will continue
the action in the Federal courts to have
the Stock-bonuS system of the company
declared invalid and Illegal"
At the stockholders meeting Mr..
Rogers announced that he expected to
ask the court for a reasonable compen-
sation for the president and for the i've
vice presidents, and to cause these Of
ficers to give an accounting for sums
received in excess of such reasonable
compensation.
But for the present George w. Hill
Is master of this largest American
tobacco company, which last year re-
ported net earnings Of $43,345,O00.
Soviet Oil.
The announcement in Soviet Russia
that the governments flve-year oil pro-
duction. program has been completed In
two and a half years has been followed
by the further announcement that the
officials have cut the production cost
OF the product 80 per cent, while the
quality of Soviet oil has greatly i'm
Today more than $4,000 workers are
busy in the various oil fields Of Russia
Another 10000 workers are to be added
before the end of this year.
Wages in the industry are on the in
crease. Workers now receive $5S
month-an increase of about 1872 per
cent In the last two and half years.
The oil produced is being exported in
increasing quantities to all parts OF the
world. Much of it is going into Ger
many and Eastern Europe. A substan-
tial amount is being sold in China.
This new expansion spells increased
and perhaps severe competition for Brit
ish and American companies in the
various markets throughout the world.
Senator Wesley Jones, chairman OF
the Appropriations Committee of the
United States Senate, announces that
he favors a policy of Government econ
omy and the curtailment of Federal APP
preparations in order TO avoid larger
Treasury deficits next year. The Sena-
tor goes so far as to suggest that some
OF the expansion programs of the Fed
eral Government be postponed until
more prosperous times.
The economy issue was bound to be
raised. VIII the Hoover adminiStra-
ton rally behind Senator Jones in this
position? If they do, 1t will reverse
the policy of expanding Government
work In slack times.
The Progressives have an entirely diff
ferent point of view. They demand in
creased governmental activity to pro-
vide more work for the unemployed.
Increase the supertaxes. If this does
not bring In the necessary money put
out few substantial bond issues, they
say.
It is the contention Of the Progressive
group, led by Senators La Toilette and
Norris, that the welfare of the average
man must be considered first, and not
the balancing Of Government budget
Treasury Financing.
In a few days, Secretary Mellon is
going to borrow few hundred million
dollars to meet the bonus drain. Frank
T. Hines, administrator Of the Veterans
Bureau, says that up to last Sunday
night 1,I66,628 applications for loans
on adjusted service certificates were
received. and that 744,657 checks have
been issued to value Of $278,091, $50.
Including this amount, plus earlier
loans, the total Of the loans which the
Government has made to veterans now
approximate $500. $50 900.
So the Government enters the last
quarter of its fiscal year, facing a
deficit Of. perhaps, 100000, 000-the
first one in dozen years.
In 1919, the all-time record deficit
Of approximately s14. $50, 900 900 resulted
from wartime commitments. There
were deficits also in the two preceding
years, totaling a little better than
I0,5O0. 900 ,00O--also war costs.
The history Of the Federal Treasury
shows that since the beginning of the
United States Government in l79l--a
period Of lao years-tfIere have been
As annual deficits, but that the income
in the succeeding years always took
care Of the past deficits. .
But the Government deficit for this
fiscal year is expected to be the record
IN peace time.
Nerman's Visit.
From responsible sources, il now de-
velops that Gov. Montague Norman Of
the Bank of England Is here primarily
to confer with American bankers with
a view to getting the United States 10
see, eye to eye, with Great Britain in
q policy of wage readjIIstment.
During the last 80 days, wage reduc-
tons have been agreed to by more than
100000 workers in Great Britain,
without any serious disturbance. In
fact, little has been said about it.
THE most significant and far
reaching factor in the present depres-
sion,. has been the drop In the price
level" said DR. Lionel D. Edie, Ameri-
can economist. in discussing wage re-
auctions with this writer. I'VE are not
going back to the postwar price level
standard. Not at all. We are in a
new era. Retail prices have declined
more than IS per cent IN the last year.
What does it all mean? Just this
wages must be brought into line with
the changed conditions"
1t was Albert H. Wiggin, head of the
worlds largest bank-the Chase Ma
tional--who said recently: 1T is not
true that high wages make prosperity
instead, prosperity makes high
wages"
One authority estimates that the
large corporations already have re-
duced working mems incomes at least
10 per cent-flct by making cuts IN
the wage rates, but By dividing UP the
work among more people.
Organized labor is against wage re-
duction. The Hoover administration
has come out against it. .-.'-..'.t
But tins can be stated as tHuisTn
that the wage level cannot be MAIN
tanned indefinitely in a period Of fall
ing prices. .....rt.. .t.e.
Admittedly, thu subject Is q delicate
one to handle but the realities of the
situation must. be. faced, sooner or
later.
Copyright. 1881. by the North American
Newspaper Aillance.b
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