The Washington times., 1934-06-09
Prof.. EZEKIEL
ABANDONS HIS
OPPOSITION
Brain Truster ReverseS First
Stand Against New Industry
In the South

President Roosevelt personally
will consider the demands Of
Southern members Of Congress for
establishment Of a pulp industry
in the South and their fight with
a member of his brain trust"
who at one time turned thumbs
down" on the proposal, it was
learned today.
Representative BraSwell Deem
Cd of Georgia, secretary Of the
Georgia delegation in Congress, re-
ceived a letter today from Marvin
Mcintyre, the Presidents Secre-
tary, in which it was stated that
the Chief Executive assured the
Congressmen that their requests
for consideration Of the entire
newsprint situation would be
taken under advisement.
VinSOn Asks Action
The members of Congress from
the South have asked conSidera-
lion of q resolution introduced IN
The House Thursday by Represen-
tative carl Vinson CD of Geor-
Eia, asking the President to re-
yoke all codes, rules, and regula-
lions which would prevent estao-
lishment Of pulp mills in the
South. The resolution declares
that such suppression would be
"severe blow to American IN
dustry."
In the meantime, Prof. Morde'
eai Ezekiel, economic adviser to
the Department Of Agriculture,
who started the fight when ne
declared that development OF such
an industry would adversely al
feet this country's foreign trade,
was revealed as backing down on
his former pronouncement.
Prof. Ezekiel, in a letter to
Francis P. Garvan, of the New
York Chemical Foundation, who
made the original suggestion for
development of the pulp industry,
places a different Interpretation
on his first statement Of policy.
Garvan Backs Plan
On January IT, Mr.. Garvan
wrote Prof. Ezekiel urging that
the Government provide funds to
develop a pulp industry in the
South, pointing out that it would
provide a new domestic industry
of some $17O,0O0,0OO.
Mr.. Garvan added that it had
been demonstrated that "the low
cost Of this production will be no
more than two-thirds Of the
present-day cost"
He also pointed out that dur
ing the past four years imports
of wood paper and paper base
stocks into the United States
have amounted to more than
$170,0OO,O0O a year, and added:
"This amount goes abroad
and is lost each year and what
we get for it is used and goes
down the sewer"
Ezekiel Reverses Stand
Answering that letter, Prof.
Ezekiel pronounced the follow
ing doctrine:
"The products which we inn
port into this country produce
dollars to pay for products we
export. As you know, we face
an acute problem in the farm
readjuStment because Of reduc-
ton in export demand for wheat
and hogs. If we take still fur
Their steps to reduce our i'm
ports, the ability Of foreign
countries to buy our cotton and
fruits for export win be CORE
SpOndingly reduced, and in the
end we will merely intensity our
farm readjuStment problem"
When members of Congress
learned Of this announcement,
they became aroused and pro-
tested such a policy.
Today, Mr.. Garvan has a letter
from Professor Ezekiel setting out
the following:
I'm my previous letter I took
issue with your statement that
all the money spent on imported
pulp wood was so much waste.
Instead Of this, I pointed out
that it was only through imports
that foreign customers for
Southern cotton could get the
funds to pay for it. That does
not mean, however, that the De-
partment is not disposed to do
everything it can to encourage
the development Of new indus
tries wherever those industries
are well-adapted to our re-
courses and can stand on their