Plentywood herald., 1934-03-08

TO CONTROL COMMUNICATIONS
ELECTION REVIvEs BONUS
BIG PAY FOR OFFICERS
ARMY MAIL CRASHES
SEEKING FOREIGN TRADE
General Johnson, Recovery Ad-
ministrator, heard plenty OF crlti-
cism about the NRA last week
but made no secret of his intention
to tighten up the program. He In
sisted that shorter hours and high
er wages were possible, and that
| effective regulation to maintain
thm would be provided.
Urging the creation of Federal
| Communication Commission, Presi-
| dent Roosevelt points out that the
II. C. C. Is concerned with transpor-
tation, the Power Commission with
power, but no "single government
agency is in control OF transmls-
sion OF telephone, telegraph, and
cable. 1t is generally believed that
radio will not be included In the
new set-up. but, apparently the sys-
tenn of holding companies. largely
used by communication companies.
will be thoroughly explored.
Heretofore, a parent company
has forced a subsidiary to buy
equipment from another subsidiary
at fixed prices and, inasmuch az
the rates Of a communications COM
pany are based upon yield on It's
capital above Its expenses. one can
readily see that excessive prices
charged by subsidiary largely
owned by the same stockholders,
means the same thing as Increased
rates, The system has worked not
only In regard to purchases OF
equipment and materials, but also
through financing prices and man
agement fees.
Increasing evidence that Con-
gressmen have an eye on the votes
OF the veterans In the coming tall
elections Is seen In the recent Ell
forts to annihiIate savings effected
in the Economy Act of last year.
A coalition OF Democrats and Re-
publicans in the Senate put through
a series of amendments to liberal
ize payments to veterans, said to
include 1850 600, 900 of new bene-
fits for the veterans and other en-
ployes.
Moreover, the agitation for i'm
mediate payment OF the bonus con
tinues, with vote set in the House
for April 18th. Already the Presi-
dent has written Speaker Rainey
that he will veto the measure II
passed by Congress. Some time ago
las signatures were received to a
petition to force the vote In the
House. Faced with the Presidents
certain veto, House members must
decide whether 1t is best to support
the President or play to the veter-
ans votes.
Huge bonuses and other extra
compensa tion paid to executive
Officers and directors by many
large corporations in boom years
have been revealed by a report OF
the Federal Trade Commission. OBJ
viously, 1t is impossible to call at
tention to all instances OF this kind,
but few examples will give some
idea Of the practice.
r. G. Grace, president of the
Bethlehem Steel Corporation, re-
ceived a salary OF $4,000 a year
between 1923 and 1890, but was
paid $2,470,789 in additional com
pensation. While his company paid
only 1851 1000 in 1929 as salaries
to certain officials, they were given
extras of s3,621,930. The Ameri-
can Tobacco Company paid G. W.
Hill, president, $667,500 In salaries
for the five years, 1928 to 1882,
but he was given So, 3,181, ,120 In 9TH
er compensation.
While nine hundred companies
submitted figures, there were a
number who challenged the Com
missions power and refused 70
answer. 1t should be pointed out
that the bonuses shrunk In 1882
when the depression wiped out re-
serves, and that the trend is pro-
nounced to a straight salary basis
with most corporations.
Some observers consider the
crash OF army mail-carrying planes,
with the death of their pilots, as
the first break In the exceptional
fortune which has accompanied the
Roosevelt Administration since last
March. The fact that some OF the
fatalities did not occur on mail
flights was not enough to prevent
a chorus OF protests from people In
various sections of the country,
who insisted that the Army men
were being sent to death as
result of the cancellation OF the do
mestic air mail contracts.
Opponents or the Administra-
tion's air mail policy did not fall
to criticize the cancellation OF the
contracts. but their argument was
getting nowhere until series OF
crashes seemed to bear witness that
the government had acted precipi-
lately and had given the Army
task for which ffa e0uipment and