davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1933-06-05

as was consistent, and to mo-
bilize, in the financial sense,
our activities looking toward
the ultimate goal of final up
building of the c. and o., or
sO-caIled fourth system for the
eastern region, that all through
these years of effort had been
the subject of negotiation and
discussion with the various
parties in interest.
ALLEGHANY CORP. FORMED
ITO meet the need to which
we have just referred, early in
1929 we brought Allegheny Cor
pOratiOn into being, to take
over shares held by us and to
furnish a corporate instrument
aIity to provide funds for carry
ing on. For each net dollar
value of our investment that we
put into this corporation, we
took in settlement junior, or
common shares, only"
Then Van Sweringen told how
the Allegheny acquired control o1
lesser roads. He said:
Included in the investments
acquired by Allegheny at its
outset was the control of the
Buffalo Rochester and Pitts
burgh railway which we had
gotten a short time before, but
as a result of the efforts to
reconcile differences in the
eastern groupings, it was later
decreed that the Baltimore and
Ohio should have it, and
Allegheny therefore disposed of
it to them at cost, taking from
them likewise at cost their
interest in the Wheeling and
Lake Erie, and at about this
same time also taking from the
New York Central an interest
they owned in Wheeling and
Lake Erie. These, with the
holdings of Nickel Plate in the
same property, amounted to q
majority Of the Wheeling and
Lake Erie, and later, when
Nickel Plate was able to do SO,
all of these shares went over
to Nickel Plate from Allegheny,
again at cost"
Then the Missouri Pacific was
added to the Allegheny group in
1890. he added and continued:
"SOOn after we accomplished
these purchases the 7 country
was pitched headlOng into the
unforeseen depression, the worst
the world has ever known. This
wrought its accompanying havoc
The Washington times., 1933-06-05
HOUSE PASSES
RAIL BILL

The Administrators railroad
rehabilitation bill was passed by
the House today without a record
vote. It had previously passed
the Senate.
The measure now is expected to
be sent to conference to iron out
differences between Senate and
House, described by leaders as
of minor Importance.
The public works program,
hitched to the ambitious industry
control features of the industrial
recovery bill, was slated for Sen
ate consideration tomorrow. A
spirited fight Ly sales tax advo-
Gates was assured when the FL
nance Committee rejected sales
tax agreement by the narrow
majority of 10 to 8.
The Senate took up for pas
mortgage refinancing bill drafted
by the administration. Leaders
predicted it would be sent to con-
ference before night.
The House struggled with the
emergency railroad relief bill,
another Administ alton measure,
which the Senate passed over
Whelmingly.
The Washington times., 1933-06-05
PECORA FIGHTS PLOT TO SQUELCH QUIZ

and Brother Maths have ever
been dragged out into the lime
light in their financial bee-vee-
dees. He is the shyest bird in
the financial aviary and all this
conSpicuity is excessively painful.
So Hearing Goes On
So the hearing goes on, with
Pecora persistently hammering at
Van SWeringen to bring out the
true nature of the financial Jug
Cling by which he and his brother
and the House Of Morgan played
gigantic game of railroad poker
strip poker-the buyer of Al
legheny common stock being the
ones who, eventually, went home
in a barrel.
Somebody connected with the
House of Morgan-Somebody with
mighty swell set of brains-put
over on Uncle Sam a faster one
than Bob Grove, of the Athletics,
ever slammed into the padded
palm of Mickey Cochrane.
The Washington times., 1933-06-05

seating the directors, was far
from a majority ownership. We
wanted more Of the stock. We
thought it was cheap, as 1t was
then selling. At that time the
property was struggling some
what because of capital neces-
sites, but we were sure it could
be made to earn a lot more
money and perform a much bet
ter service.
1--WE were on our way with
both the Nickel Plate and the
C. g. o. under good manage
ment, showing signs of increas-
ing earnings. We then turned
our attention to an analysis of I.
the Erie Railroad. Our studios
convinced us that we could
make it behave a lot better
than it was doing. 1t was one
of the properties we felt was
a necessary part of the system
we were trying to build"
The railroad magnate read
from prepared statement slowly
and jerkily. He and his brother
are almost rarely seen in public.
Van Sweringen said the late
George F.. Baker joined with them
in purchasing the Erie railroad
Then the Pere Marquette was
added to the Van SWeringen sys'
tenn.
Corporation Created
Van Sweringen pointed out
that in 1925, the Interstate Com.
merce Commission indicated the
C. & o. railroad should be the
nucleus of a great system" g"
under the unification plan. At
that time, he added, the Nickle
Plate owned securities in the
C. & o.
The Van Sweringen interests
then created the Chesapeake Cor
poration to purchase the C. and
o. stock from the Nickel Plate.
This divorced" the c. and o.
from the Nickel Plate, he ex'
planned. Then the Van SWer-
ingens went once more to Morgan
for financial aid. The witness
said:
chesapeake Corporation went
to J. p. Morgan and Co. for
this financial aid and realized
it by the sale to them in the
spring of 1927 of $48,OOO,OOO of
2O-year per cent bonds.
ut was now clear that there
was a definite need for q We
hicle in which to carry, insofar
The Washington times., 1933-06-05

The talented gentleman figured
out a scheme to avoid" (Cnot
evade) paying the income tax,
which is ducky, daisy, and a
lamb.
It is the smartest dodge, so says
Pecora, that ever came under the
eyes of his accountants and ex-
pers.
If the secret ever got out, thou
sands of citizens who have to
shell out their hard-earned money
to Uncle Samuel wouldn't have to
pay a nickel and, what's more,
they would be, apparently, as was
the smooth gentleman from the
House of Morgan, quite within
the law.
It's really a bird of scheme
and the gentleman who invented
it is almost too smart, even for
the House of Morgan.
He certainly made the Treasury
boys and the income tax office
experts look like twenty cents.
The Washington times., 1933-06-05

o. P. Van Sweringen, president
Of the Allegheny Corporation, the
vast j. P. Morgan railroad hold
ing corporation-today gave in
"inside story" of the creation of
Morgan's railroad empire.
Van Swerlingen first described
how he built up his own railroad
holdings. He told of buying the
Nickel Plate road in 1915 from
the New York Central. In 1922,
the Glover Leaf and Lake Erie
and Western were purchased and
consolidated with the Nickel
Plate.
Got Aid of Morgan
Then Van SWeringen told Of
getting Morgan to participate in
purchase of the Chesapeake and
Ohio railroad. He said:
"While we were studying and
developing, we found that the
Huntington interests in the
Chesapeake and Ohio were for
sale. We talked with J. P.
Morgan & Co., whom we re-
garded, as does the world, as
wise cOunSell0rs in matters of
finance. They felt that it was
not the time for us to make the
expenditure. We took their ad-
vice and postponed our activi-
ties in that direction.
"In the meantime, the Nickel
Plate was prospering and was
accommodating money under the
management of Mr.. ]. ]. Bernet,
whom we had engaged as preSi-
dent when we first acquired the
Nickel Plate, and year or so
after our first discussions about
C. & o. we reached the place
where we again thought we
should purchase the interest Of
the HuntingtOnS.
MORGAN COMPANY AGREES
"This time the Morgan firm
agreed with us and we closed
the deal, the Nickel Plate buying
10000 of the Huntington shares,
the total of which was $4,000.
The price on all of the shares
was more than the market, so
we asked the Nickel Plate to pay
only a part of this purchase
price, and my brother and I
with our immediate associates
undertook to and did pay the
difference IA considerable sum-,
all in the price of the extra
shares which we, instead of the
Nickel Plate, purchased.
"The Huntington interest,
while dominating the property
in the sense that it had been
The Washington times., 1933-06-05

to investments and its violence
to Allegheny Corporation"
Van Sweringen paid tribute to
the Missouri Pacific.
He testified:
Missouri Pacific is now in
the first stages of reorganiza-
tion, and when that is done,
that system will be one of the
best and most prosperous in
this country"
He declared, however, he had
mo thought of consolidating the
U. & o. system of the East with
the Missouri Pacific system in the
West"
The Washington times., 1933-06-05
(Continued from Page y

(Continued from Page y
self as 'j'unior counsel for the
Morgans, fought SaVagely against
Pecora's demand to spread the
secret income tax manipulations
of Morgan partners upon the rec
ord.
There was a long and bitter
wrangle lasting an hour and a
half, in which sharp things we're
said. Pecora, deprived of the
backing of Senator Couzens of
Michigan and Senator Costigan
of Colorado, and forced to COM
bat the strangely tender regard
manifested by some Senators for
the sanctity of the personal op-
erations of the Morgan partners,
was forced to accept temporary
defeat.
BY a 1O-to-2 vote the commit
tee voted to postpone until to-
morrow the decision as to whether
Thomas S. Lamont, William Ewing
and Harold Stanley shall be COM
PEELED to reveal exactly how they
were able to evade income tax
payments by means, as is alleged
by Pecora, of wash sales" of
stocks.
This afternoon Washington
buzzes with the gossip that the
obstructionists- friends of
Morgan-are on the point of
prevailing and Wrecking the whole
investigation.
The gossip is that some strange
and very powerful influence is
being applied to paralyze Pecora's
probing fingers. Pecora himself
is in a cold rage this afternoon
at the position in which he has
been put. He is just about ready
to blow and call things by their
right names.
Ready to Go to People
He is just about ready to go
to the people and ask who is
really running the country, Con-
gress or j. P. Morgan & Co., and
their allies in Washington.
No one not actually present in
this dramatic scene can possibly
envision the desperate fight that
is going on-under the surface
to save the power of the private
banking interests of the country
and the personal prestige of the
men at their head.
Pecora has driven the giant
into a corner, but the giant is not
beaten yet, and is fighting with
all it's might and subtlety.
But tomorrow the committee
must choose between Morgan and
Pecora. That is what it amounts
to. Within the next "a hours
they must decide whether they
have the illegal" right to go into
the individual affairs of the
Morgan parners. That, of course,
is a handy subterfuge, since the
Language of the resolution is
plain. The committee, in plain
English, is "stalling" as they say
in less exalted circles.
Committee TOe-Dances
It hasn't yet summoned up the
courage to uphold Pecora on the
brass to block further inquiry.
It is toe-dancing between the
devil and the deep blue sea as
Pecora goes savagely after Oris
P. Van Sweringen, the man of
mystery, to find out where the
Van Sweringens got the money
to organize their gigantic rail-
road deals.
Van Sweringen is an evasive
and difficult witness and Pecora
lashes at him wickedly. Oris P.
is a short, plump gray little
man, with a plump, pink, round
face, thinning gray hair, Shrewd
gray eyes behind horn-rimmed
specks and a small tight, Shrewd
mouth.
This is the first time, so far
Il -
The Washington times., 1933-06-05

A great Summer shoe for street,
beach wear, for internes, BARRIERS.
Light, cool, airy and serviceabIe.
Genuine Goodyear welts with oak
bend sOles, kid-lined; English and
wide toe models. A limited guam
tity. Originally made for the
QuartermaSter Corps, U. s. A.
Milford chronicle., 1933-12-08
CLARKSVILLE

Miss Dorothy Williams spent the
Thanksgiving holidays with her pa
rents, Mr.. and Mrs. Herbert Will
the weekend in Philadelphia.
Mr.. and Mrs. George Warrington
and daughter, Virginia, were dinner
guests of the Warrington and Har-
mon families in honor of Mrs. J. H.
Harmon's birthday last Saturday.
Capt. and Mrs. Irwin Bennett, of
Philadelphia, were callers here on
Thanksgiving day.
James Harrison, of Philadelphia,
is visiting his mother, Mrs. Edgar
Evans.
Mr.. and Mrs. John H. Warrington
and Mr.. and Mrs. Abisha Warning
ton spent the weekend in Navesing,
N. J.
Mr.. and Mrs. w. T. Brasure enter
tanned at dinner on Thanksgiving
day. Those present were DR.. Frank
Taylor and son, of Ridgely, Md, the
Misses Elizabeth and Helen Bishop,
of BishOpville, Md, and Mr.. and Mrs.
r. N. Belts.
Mr.. and Mrs. w. H. Sterling and
daughter, of Dover. and Mr.. and
Mrs. J. P. Belts, of Millville, were
dinner guests of Mr.. and Mrs. J. P.
Belts on Thanksgiving day.
Mrs. 7. Edgar Townsend was a
caller in town on Thanksgiving day.
Funeral services for Joshua r.
Hudson were held at st. Georges
Church on Friday. He is survived
by his wife and three sons, William,
Robert and Elisha.
Russell Hudson spent the week
end with his parents, Mr.. and Mrs. S.
w. Hudson.
A large number of friends and rel
atives, of Philadelphia and this vici-
nifty attended the funeral services OF
Capt, ]. T. West at Ocean View Pres +,
byterian Church on Tuesday after
noon. He is survived by his wife
and two sons, Horace and John, of
Yeadon and Wilkes Barre, Pa.
Milford chronicle., 1933-12-08
STATEFARMERS
TOSPLIT $125,OOO
FOR WHEAT CUTS
[COnfinned from First Pd0e]

represents "a per cent of the wheat
growers and "a per cent of the
wheat acreage; in the latter it stands
for 20 per cent of the growers and
40 per cent of the acreage. How
ever. in the lower counties, it is
pointed out, many of the farms which
must be included in the estimates
by percentages were too small to
participate in the plan, so the fig
ures are indicative of larger share
of the real wheat farms.
In an effort to send the price of
wheat upward, the government in
stituted the allotment plan, under
which the wheat growers contract
to plant an acreage reduced Is per
cent. In return for this they will
receive 80 cents a bushel. This
price is not for payment on grain,
but is a bonus for the wheat not
grown
Milford chronicle., 1933-12-08
DELAWAREANS MINUS
LIQUOR, DRY ERA ENDS
. [COHfinned from First Pagf]

many applicants for licenses.
Shortly before o'clock when il
became certain that there would be
no hitch in ratification by Utah, the
Delaware. Liquor Commission, to
avoid an overnight delay in issuing
licenses, began giving out permits
and approving importers orders.
The first three licenses were given
out simultaneously by three clerks
of the commission to Soren Thomp-
son, of the Hotel Sussex, Seaford;
Ernest Purnell, Laurel House, Lau-
rel, and Howard Hopkins, Hotel Rig
by, Laurel.
Shortly after they received their
licenses the importers who had been
waiting with their orders tabulated
and checks drawn for the taxes on
the orders, presented their lists and
after having them properly stamped
set out for Philadelphia, Baltimore
and other points from which their
stocks are being obtained.
AS there is no law regulating the
hours of shipment for importers !,
some said they would bring their |
supply in during the night and take
it to their storehouses to await in
spection by commission investiga-
tors Wednesday morning.
During the half hour that the com
accepted these orders Tues
day afternoon the office force was /
swamped and extra help was divert
ed from other parts of the office to
the counters to receive and tabulate
the orders. AS each of the import .
ers' orders consisted of retailers or
ders for varying amounts it was said
the exact amount of the orders and
taxes received Tuesday will require
bookkeeping to total,
but the orders are expected to ap-
Droximate $4,000. Additional orders
we're placed as soon as the office
opened Wednesday morning.
Licensees Cautioned
Although the commission had de-
Milford chronicle., 1933-12-08
CONSERVATIONOF
HOLLY is URGED
[Confinurd Prom Fbn PagrJ

property against trespass for the
picking of holly or other evergreens.
(2l That he be especially vigilant
on week-ends and during the three
weeks prior to Christmas, appre-
hending and prosecuting any viola
tors. Under the laws of this state
any owner, lessee, constable, forest
or police officer, is authorized to ar
rest persons caught in the act of
taking or cutting trees or shrubs.
go Where the owner does not
wish to apprehend the vandals him
self, he should appeal to local police
officers for assistance. The State
police will do all in their power TO
prevent such vandalism but they
must have the support and cooper
alton of the individual.
(4) Where Christmas greens are |
being gathered or have been gather |
ed under suspicious circumstances
and are being transported, especial
ly by out of state trucks, landown
ers are advised to report pertinent
facts to the State Forestry Depart
ment at Dover for investigation.
he llblAA anu TIC
ufacture of holly wreaths has, in
the past, been an important Del
aware industry. Misuse and abuse
of the natural supply coupled with
vandalism is gradually forcing the
industry to other regions where the
holly abounds. According to one of
Delaware's largest holly dealers, be-
cause of the shipment of loose nr
bulky holly out of the state last year
and the severe cutting that attends
the gathering of this type of Christ
mas decoration, he has been forced ,
to get the material for his select
wreaths outside the state.
The efforts of the State Forestry /
are directed toward
the existing natural .
stands of holly and in fostering the :
production of more trees in the ,
'orest lands of the state. That Del
lware is favorably situated for the +
production of the type of holly best !
suited to wreath making is evil !
fenced by the fact that last year ap- \
a million and a quarter =
vreaths were shipped by Delaware I
Iealers which provided employment =
or some ten thousand people and Il
he distribution of an estimated \
250.000 dollars in the industry as a 4
Whole. =
Recent efforts on the part of the
'orestry Department to get the holly -
callers together with the view of
iscussing ways and means of pre- Il
erving the State Christmas greens -
Industry met with little success \
Ience, the best method of encourage p
lg preservation of this valuable -
rec i'm the woodlands of the state -
ppears to be one of individual pro- ~
,ction, harvesting and manufacture, "
lcouraged by governmental advice =,
nd assistance. a.
Milford chronicle., 1933-12-08

expressed their disgust for the 80
variety. however. had ample chance
this week to taste beer that had the
same alcoholic content as the pre-
war beer. While very little went on
sale Tuesday night virtually all tay-
ern keepers were able to give their
patrons the choice Of .3!2 or pre-wari
beer Wednesday afternoon.
Milford chronicle., 1933-12-08

cided to close promptly at 5 o'clock
Tuesday to take care of the approval
of the importers orders and the
handing out of the licenses. Each
of the licensees we're warned not to
sell any liquor until they had re-
ceived their stamped supply from
importers Wednesday morning. u
Old time beer drinkers who have
Milford chronicle., 1933-12-08
OCEAN VIEW

A surprise Thanksgiving party
last Saturday evening was greatly
appreciated by Mr.. and Mrs. William
Turner. as well as the merry makers.
Mrs. Martha COnaway is visiting
her brother and family at Harring-
ton.
Captain and Mrs. Bennett of High
land Park, Pa, were Thanksgiving
guests of Henry James and family
in Ocean View.
Captain and Mrs. John Lamb of
Philadelphia were guests of Captain
and Mrs. w. N. Nelson last week.
Shop now, Christmas II days.
Milford chronicle., 1933-12-08
FOR SALE

(, FOR SABE-30 head of good shoats.
3 months old. none better. John Lof-
land, east of Milton. ds-2t
Evening star., 1933-10-21
MOTORIST IS KILLED
BY POLICE VOLLEf
Officer Says He Fired When Car
Passed Red Light and Bullet
Ricocheted.
BY the Associated Press.

BY the Associated Press.
CHICAGO, October 21.-One Of a
party of persons was killed and an
other was wounded by shots fired by a
policeman when he said their automo-
bile failed to halt for a red traffic sig
nal
The victims were: Harry Nelson, 26,
who slumped in his seat, dead, when
struck in the head by a bullet, and
Larkin Gervais, %, wounded in the
left ear.
Later, Policeman Harry vehlow said
he fired into the pavement, and that
one of the bullets apparently ricocheted
into the rear of the disappearing car
struck Gervais, sitting in the back seat
and continued on and hit Nelson
seated in front, in the head.
The shooting occurred after police
man Vehlow said Roy Chapman, rs
driver of the car, had failed to heed
two blasts of his whistle to stop, and
had continued on.
Evening star., 1933-10-21
Increased
Facilities Hope
of Russia.
LIFTING OF BAN
ON GOODS SEEN
Position in Far East
Would Be Stronger
Under Agreement.
BY the Associated Press.

BY the Associated Press.
MOSCOW, October 21.-Russia
hailed as a boon to world peace
and to better trade relations to-
day its agreement with the United
States to negotiate concerning
American recognition of the
Soviet Union.
Events moved swiftly after
President Mikhail Kalinin an
nounced he had accepted an in
vitation from President Roosevelt,
dated October 10, and added he
would send Foreign Commissar
Maxim Litvinoff to Washington
to represent the U. S. S. R.
Plans were rushed for Litvinof to
depart for the United States within a
very few days. Government officials
gathered to consider the points around
which the Washington conversations
should be centered.
President Roosevelt'S action can only
serve the cause of world peace and en-
courage friends of peace in the whole
world" q foreign Office spokesman ex-
claimed.
Hope for Three-Fold Result.
As the developments were greeted with
cheer and enthusiasm throughout the
union, leaders indicated Russia hopes
for q three-fold result from the re-
sumption of official relations, namely:
Greatly increased credit facilities, the
lifting Of American barriers against
some OF Its goods and Strengthening Of
its position in the Far East as regards
Russo-Japanese relations.
Russia, believing that the world eco
nomic situation has worked 1t into
position to bargain with the United
States in its bid for trade, is expected
to ask that the United States meet
two terms If trade between the coun-
tries is restored to q big-scale basis
These are suf1cient credits with which
to make purchases in America and re-
moval of United States restrictions
against Soviet goods.
Russia claims it does not enjoy
equality with other countries in access
to the American market because Of what
it terms discriminatory restrictions set
on articles produced by forced labor"
Press Is Enthusiastic.
Meanwhile enthusiastic comment on
the possibility of American recognition
poured from the press of the Nation
today.
1.-The heightened interest of America
toward the U. S. S. r." said the news
paper Izvestia editorially, reflects an
CONTINUED on Page 4, Column g.
Evening star., 1933-10-21
POLICE WALK OUT
IN MEXICAN STATE
Monterrey Governor Asks for
Troops as Most of Public
Employees Join Strike.

BY the Associated Press
MONTERREY, Mexico, October 21.-
An appeal for troops was sounded by
the governor today after all local police
and most of the public employees
throughout the state had walked out.
The strike went into effect during the
night in protest against Gov. Cardenas'
attitude toward the National Revolu-
tionary party.
Protesting against the appointment
as police commander of Arturo Melen-
dez, supported by Cardenas, the off,
GERS deserted their posts-leaving the
penitentiary, jail and headquarters un-
guarded.
Along with them went the COM
mander to whom they remained loyal,
Col. Ernesto Rios.
The governor appealed to the COM
mander Of the military zone, Gen. Juan
Andreu Almazan, for troops to patrol
the city