Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-01-09
"Kent Proposal" to Make In
dustry Begin Functioning
Normally Described.
MILLER AND P0MERENE
DEFEND LOAN POLICIES
President and Chairman of Corpora
ton Testify in Hearing
on Relief Bill.
BY the Associated Press.

BY the Associated Press.
A plan designed to make industry be-
gin functioning on normal basis i'm
mediately with the Government agree
ing to reimburse it for any losses in
Cured, was advanced before the Senate
Manufacturers Committee today by c.
A. Miller, president of the Reconstruc-
ton Finance Corporation.
The committee is holding hearings
on the S5OO,0OO,000 La Follette-C osti-
gan direct Federal relief bill.
Referring to his proposal as the
Kent plan" and saying it has been
proposed by a noted economist, Miller
told the Senators he thought it comes
the nearest to solution of tAe unem-
ployment problem.
He said he did npt want to be under
stood as committing other oficialsS of
the corporation to this plan and ex-
pressed the view that he might be
regarded as a "Socialist" fer indors-
ing 1t.
Upholds Loan Policies.
Miller joined Alice Pomerene, chair
man of the board, in upholding the
policies on the unemployment relief
loans.
Some of these policies have been
sharply criticized at previous hearings
on the relief bill
The loans have been administered, T"
Miller asserted, ION business basis,
but on business basis that has behind
1t very warm-hearted desire to help.
If 1t hasn't behind it a warm
hearted desire to help, for goodness sake
take it away from us. This relief
| should be administered on business
basis rather than a sentimental basis,
but If you want it sentamentalized,
then perhaps you are in the wrong
shop"
Under the La Toilette Costigan bill,
the relief would be handled through a
new Federal board.
Closely questioned by Senators in the
light OF heavy criticism of the corpo-
ration by previous witnesses, Pomerene
told how substantial soan was made
to Illinois upon information that new
State taxes for relief were not possible
Just before the election because down.
State members of the Legislature would
not consent to new tax burden at
| that time.
Pomerene said this information was
| put before the corporation by a dele
| CATION of Illinois and Chicago officials
who came seeking funds
Hoped for Later Relief.
I'VE were told" Pomerene said. that
members of the Legislature outside of
Cook County wouldn't hope to place
any burden on the people generally,
and that there would be a new session
after the election and they hoped to
| get the relief through then"
Pomerene was accompanied by Mil
Ter, Gardner Cowles, a director .of the
| corporation, and Fred Croxton, an as
slstant in charge Of unemployment re-
lief details.
Senators La Toilette, Republican, of
Wisconsin; Costigan, Democrat, OF
Colorado, and Wheeler, Democrat, of
Montana, questioned him.
Pomerene pointed out that under the
law a Governor must certify to the
necessity of Federal aid and declare
that State resources have been ex-
hausted, before loans may be granted.
How many States have applied for
loanS?" asked Senator Wheeler.
'Thirty-six and two territories, u
Pomerene replied.
asked Wheeler.
They've all been granted"
Nearly Half Loaned.
He said nearly half the boards $780,
100000 relief fund has been loaned,
and vehemently denied, in reply to a
question from Senator CoStigan, that
he had ever said distribution of the
$500, 100000 sum should be spread over
two years.
Pomerene would not say whether he
regarded the $500 100000 as sufficient
If the Winter is not a severe one
and If industrial conditions improve, he
pointed out, "the need for Federal re-
lief will be lessened."
Pomerene asserted that when State
and local authorities are not doing
their duty and suffering results, the
| corporation has adopted "the rule of
reason" in administering the law so as
to relieve restitution.
When human being is in distress, -
Pomerene asserted, IT am not for ask
ing the why and wherefore"
At the same time, he said, care must
be taken lest local charity cease its
efforts when public funds become
available.