, 1935-03-19
The World
At a Glance
BY LESLIE EICEEL
(Central Press Staff WRITER

49, -
NEW YORK, March le.-It Is not
n the headlined actions that the
economic evolution Is recorded, but
IN The day by day changes that the
public seldom sees recorded.
For example, much has been
said concerning top-heavy capital
lzation OF corporations-how that
has been a toll on the people and
q hindrance to recovery.
Notice has been served on rail-
roads by Jesse Jones. chairman Of
the Reconstruction Finance Corp
oration, that those corporations
which are aided by the RFC must
cut debt burdens. Loans for reor-
ganization (of the roads In the
most desperate straits will depend
on a slash in fixed charges.
Charges must be such that they
can be earned even in adverse
years. Jones warns.
A proposal for the Western Pa
cific would provide for refunding
bonds. with income governing the
return.
That is a marked concession for
capitalism to make.
III II can be applied TO railroad cor
porations. there is no reason why
ft cannot be flplied TO other corpo-
rations which must borrow heavily
TO meet interest.
q The tendency 10 slash debt bur-
dens Is not restricted TO the United
States. In Canada. q recommended
ton has been made TO cut a billion
dollars from the capitalization of
the publicly owned Canadian Ma
tional railways.
Result
Cut Of capitalization OF railways,
public utilities and other quasi-pub-
lie concerns would permit profits on
n much smaller operating revenue.
Thus prices the public pays for such
services would drop.
But the part Of the public which
owns the securities Of such concerns
would have to take losses.
Hoover
Since Hoover republicans are in
control of the G. o. p. organization
here, there naturally is considerable
pro-Hoover talk for the republican
presidential nomination In 1886.
His gold acknowledgements as
II Is IN congress and with the mass
Of people-strikes a responsive chord
In money centers. from which cam
paign funds IN drawn.
Those money centers agree no cur
-encv sterilization can be obtained
mt the present time. due largely to
Great Britain's desire TO keep her
currency in conformity with world
trade demands-but. deep In the
heart Of every money center mogul
there is a fond memory of gold as a
basis.
The Hoover republican group. in
cidentally. obtained the benefit Of
the former presidents trip east for
nothing. The New York Life Insur-
ance company. which elected Mr..
Hoover a director. paid his fare In
both directions. and $50 additional
4 for attending n directors meeting.
Anti-Hoover policy holders may OBJ
fectv5 % that. but there is no man
\ ner I'm which they can voice their
objections.
Melons Transactions
Readers say that we missed some
pf the transactions OF former Secre-
tary of the Treasury Andrew Mellon.
ms bYought out in the tax hearing In
Pittsburgh. in which he is appealing
q 100000 income tax assessment.
According to testimony drawn
from Melons financial secretary.
79-year-old Howard NJ. johnson.
Mellon Invested himself OF the title
Of $l0.520.49 worth of qualifying
bank stock in 1921. but did not lose
q cent Of income. Mellon had to get
rid Of the stock in order to become
secretary Of the treasury.
Thus. as nominal owner or the
bank stock. was Mellon eligible to
hold office?
You viii recall. congress question:
cd regarding this some years ago. but
the republican administration sue
ceeded In clsmping a lid down on
the investigation.
And, although the secretary Of the
treasury is forbidden by law to en-
gage In trade or commerce. Mellon
acquired more than 81 per cent OF
the voting stock OF the Pittsburgh
Coal company in 1929.
Mellon AZ that time. when the sem