davidaulloa/AmericanStories huggingface dataset:
Evening star., 1935-04-01
R. F. c. LOSES FIGHT.
ON RAIL COLLATERAL
Supreme Court Upbolds Right Of
Lower Tribunals to Ban
Sales.
By the Associated Press.


The right of Federal courts ad-
ministering the reorganization of rail-
roads to prevent the Reconstruction
Finance Corp. and other holders of
railway notes from getting their money
by selling collateral was upheld today
by the Supreme Court.
Sale of collateral of the Chicago,
Rock Island & Pacific Railroad was
barred by the Federal District Court
at Chicago in November, 1888, on the
ground such action might obstruct-
if not actually preventive orderly
reorganization of the carrier.
The decision was approved by the
Seventh Circuit Court of Appeals.
The r. F. c. holds more than $685.
000, 600 of notes issued by railroads,
including $l3,718,700 Of the Rock
Island, which matured March l, 1884.
It holds Rock Island collateral OF
$37, 600, 900 face value.
Joining the r. F. c. in the suit were
three banks and two trust companies
which held Rock Island notes for $4,-
125,000 secured by collateral Of $14.-
400 900 face value.
Evening star., 1935-04-01
London Proposal Basis for
Negotiations, Says Joint
Communique of British
and Soviet Conferees.
WARSAW INTERESTED
IN MODIFIED L0CARN0
Suggestions of English Diplomat
to Be Considered, but Present
Eastern Security Pact Is 0p-
posed-Disarmament Is Pledged
if Others Cut Forces.
BY the Associated Press.

By the Associated Press.
MOSCOW, April Capt. Anthony
Eden sped toward Warsaw today in
quest Of further bulwarks for peace
encouraged by conversations with
Joseph Stain, who agreed that the
nations Of Europe should build for
security whether Germany collabo-
rates or not.
In a joint communique they as
serted that the Anglo o-French peace
plan concluded at London should be
made the basis for preserving Eu-
ropes stability.
Loyalty to obligations" as mem
bers of the League of Nations was
fixed as the guiding rule for mutual
relations and the spirit of collabo-
ration" between Russia and Great
Britain.
Wishes Eden Success.
Maxim Litvinoff, Soviet commissar
for foreign affairs, in bidding Capt.
Eden farewell at the railroad station,
said: II wish you every success, for
your success is our success
Eden clasped the hand Of his host
and replied, The same to you"
Then the Englishman strobe down
the red plush carpet to his railway
coach and departed for the Polish
capital, where he was scheduled to
arrive some time tonight.
AS Eden left the city the Soviet
press came forth with another blast
against Germany. Michael Tux
hacheesky, vice commissar for de-
fense, in an article in the newspaper
Prsvda, declared Germany would
have an army Of s4o. 900 by the sum
nner, exceeding the French Army by
90 per cent and almost equaling the
Soviet Army In size.
He charged Hitler with "lulling
France to sleep" with anti-Soviet war
talk IN the hope France would not
realize her own peril.
British Participation Seen.
The joint statement OF Eden and
Stain said the conferees believed it
was now more than ever necessary
to pursue the endeavor to promote
the building-up of collective security
in Europe as contemplated in the
Anglo-French communique of Febru-
ary and in conformity with the
principles Of the League of Nations"
This statement coupled with what
is accepted here as a fact that Reichs-
fuehrer Hitler rejected the British
peace proposals in Berlin was taken
by observes as meaning Capt. Eden
agreed Great Britain should partici-
pate in any collectinve security sys.
tenn even though Germany remains
aloof.
The communique emphasized that
security and mutual assistance pacts
do not aim at isolation or encircle-
ment" of any state, which was taken
as reference to Germany. Both the
Reich and Poland, the statement said,
would be welcomed as participants.
WILLING TO HEAR PLAN.
Evening star., 1935-04-01
FRANC DEvALUED
BY LUXEMBOURG
Economic Union With Belgium
Continued-Brussels Bourse
Reopens.
Sy the Associated Press.

Sy the Associated Press.
LUXEMBOURG, April 1.-The Lux
embourg cabinet decided at a secret
session today to devalue the Luxom-
bourg franc 10 per cent beginning
tomorrow.
The government ordered the Bourse
and all banks closed today and tomor.
row and decided to continue the Bel
go-Luxembourg Economic Union, at
least for the present.
Evening star., 1935-04-01
DEMOCRAT NEGRO
EXCLUSION UPHELD
Limiting Texas Membership
. to. Whites Sustained by
Supreme Court.
By the Associated Press

ny tne ASSocRted PreSs.
The method employed In Texas to
oar Negroes from voting at Demo-
cratic primaries-by restricting mem
oership in the party to whites-was
sustained today by the Supreme
Court.
The action of the Texas Democratic
convention in May, 1892, in limiting
party members to white citizens ouaIi-
ned to vote under State laws was
challenged by r. r. Grovey. q 44-year-
ola Harris County colored resident.
Law Invalidated in 1899.
In 1892 the Supreme Court declared
invalid q Texas statute which pro-
hibited Negroes from voting at Demo-
cratic elections. Since then the same
results have been sought by action of
the Democratic party organization.
Asserting he was qualified under
State laws to vote as o member of the
Democratic party, Grovey said he was
prevented from doing so in the july.
1884, Democratic primary through re-
tusal Of Albert Townsend, county clerk.
to give him ballot.
He sued for $40 damages in a
justice court and lost. Although this
small amount gives no right Of appeal.
the Supreme Court agreed to review
the case.
The high court held Grovey was not
deprived Of any constitutional right.
Justice Roberts, delivering the opin-
ion, said the. State convention was
recognized by the State as having the
right to arrange for elections.
I'VE hold the party was a volun-
to decide its membership" he asserted
No dissent was announced.
This was the fourth time Texas Ne.
groes had appealed to the high court
In asserting a constitutional right to
vote in Democratic primaries.
The first case, in 1924, was not de-
cided on its merits because the grounds
for the complaint had been removed
before the high court could act.
In 1927 the court held unconstitu-
tional q Texas law which prevented
Negroes from voting. In the 1882
decision the court declared invalid
statute which authorized the State
Democratic Executive Committee to
prevent Negroes from voting at prf-
mary elections. The court held the
statute had created the committee as
an agent Of the State.
Action Held Independent.
It was claimed In support Of the
resolution then adopted that the Dem
ocratic convention was acting inde-
pendently Of any State law In deter
mining who should be permitted to
participate at party elections, and that
all political parties had the lawful
right to determine who should be per-
mitted to participate In their affairs as
members.
Justice Roberts said he refusal Of
Townsend to furnish the Negro q bal
lot did not constitute an act Of the
State. This left only the question, the
justice said, Of whether the action of
the Democratic convention invaded
the Negroes constitutional rights.
Evening star., 1935-04-01

CHICAGO, April R.-Hugh
Adams, S., of Cincinnati, veteran
show boat actor, died apparently Of
q heart attack today aboard the show
boat Dixiana, anchored In the North
Branch of the Chicago River.
Evening star., 1935-04-01
HOUSING OFFICIAL DIES
Stanley 8. Holmes, New Jersey
Authority, Succumbs.

MAPLEwooD. N. j.; April / tR.-
Stanley s. Holmes, 81, chairman Of
the New Jersey State Housing Author
ity. died Of . heart attack last night.
In addition to his work for better
housing facilities, Holmes was vice
president Of the Western Electric
Corp, In charge Of the Kearny plant.
His widow, one daughter, three
sons and ave hrothers survive.
Evening star., 1935-04-01
Elks' Treasurer Dies.

PROVIDENCE, r. l., April CR.-
James r. Dufiy, grand treasurer Of
the Benevolent and Protective Order
Of Elks since 1882, died ut his home
here today. Mrs. Mary T. Ueach)
Duffy. his widow, and son, James
r. Duffy, jr., survive.
Evening star., 1935-04-01
WILLING TO HEAR PLAN.
Warsaw Rejects Pact i'm Present
Form, However.

Form, However.
By the Associated Press.
WARSAW, April IA foreign Office
spokesman said today Poland will be
interested in any modification of the
proposed Eastern European security
pact which Capt. Anthony Eden,
British lord privy seal. may suggest
after he arrives here tonight, but is
opposed to the proposal in its present
form.
Said the spokesman: We will listen
carefully to all Capt. Eden brinss
from Berlin and Moscow, particu-
larly regarding the Eastern proposal
as peace guarantee, although as 1t
stands SO far. we are opposed to it."
Hitler Left Door Open.
1t was reported Reichsfuehrer
Hitler of Germany had left the door
open regarding such an agreement
during his conversations with Can't.
Eden and Sir John Simon, the British
foreign secretary.
The spokesman said the Polish view.
point during the Forthcoming confer.
ences would be based first on q desire
to get q Qualification of the intentions
Of Poland's neighbors and secondly on
the Polish policy Of being able to
take care Of ourselves"
IF the others disarm," said the
spokesman, I'VE will reduce our army"
He placed the size Of the Polish Army
at about 250.0o0 men. Unoficial esti.
mates have mentioned 100000 men.
Flags Bedeck Streets.
The streets of the capital were deco
rated with flags in preparation for the
British emissary's arrivals.
Despite the official interest In the
suggested Eastern Locarno pact" it
seemed likely Capt. Eden would be
confronted with firm opposition to any
attempt to induce Poland to link itself
with the project in its present shape.
Eden win talk directly with Marshal
Joseph Pilsudski, the Polish leader.
Evening star., 1935-04-01
Gag" Rule Employed in Ef.
fort to Heed Presidents
Wishes.
DEMOCRATIC LEADERS
BATTLE LIMIT ON FUND
Seek to Delete Provision From
Bill Requiring $aoo,ooo,ooo
for Direct Work.
BULLETIN.

The House stood by President
Roosevelt today to send the s4,-
$50, ,000, 900 work-relief bill back to
conference with the Senate for
elimination of the direct work"
limitation. The vote was 249 to
ITO.
Evening star., 1935-04-01

Rain thia afternoon. tonight and PROB
ably tomorrow morning. not much change
In temperature lowest tonight about W
desrees Temperatures Highest. "a. at
noon today: lowest. 40, at 7:So am. today.
Evening star., 1935-04-01
Fatally Stricken.

CONTINUED on Page 3, Column g.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

G. E. Selph of Wishram called on
Claude Selph Tuesday.
Mr.. and Mrs. Bill David Of Van
Mr.. and Mrs. Bill David of VAN
couver called at the Selph home
Saturday and Sunday.
Willard Keller was an evening
guest of Wayne Smalley Sunday.
The Richard Smalley family went
to the circus at Walla Walla TUES
day.
Ralph Rowland and Austen And
erson recently joined troop 26 Of
the Boy Scouts.
and Silars families and Kathleen
Anderson attended the birthday
party given for Mr.. Hansen, Mrs.
w. j. Preston and Rose Mary Wat
kins Sunday afternoon at the Ken
newick park.
Mrs. Mccain of Spokane called
at the w. j. Preston home Monday
morning.
Mr.. and Mrs. selph and Trula
and Truman called on F. e. Selph
at Burr Canyon.
Miss Naomi Silers spent Sunday
evening with Rose Mary Watkins Of
the Highlands.
Miss Clarissa Allen Of Richland
called at the N. G. Dawson home
Sunday afternoon.
Mrs. Lydia Mccain of Spokane
called on Mr.. and Mrs. Burfiend on
Monday.
Frank Wright and Joe motored
to Walla Walla Saturday and re-
turned Sunday.
Mrs. Nelson Williams enjoyed q
short visit with her son, Scott of
Yakima Monday.
Miss Margaret Holden is confin-
ed to bed with the septic sore
throat.
Miss Luella Allen and two daugh-
tiers, Lille and Gertrude visited at
the homes of Mrs. George Ander-
son and Mrs. Guy McFadden Sum
day afternoon.
Mrs. Claude Selph and daughter
Trula and Mrs. Guy McFadden and
daughter Lucille attended the grad
uation exercises of Kennewick high
Mae Bechtel and Buddy Bechtel
school Thursday evening.
Miss Naomi Foraker and Cora
visited Chester Daghe Monday.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

In settling up the affairs of the
bank some notes were settled for
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30
What We Think
(By Frank Dixon)

I had an opportunity recently to
go thru the note case of q bank
that closed in my home town. The
liquid assets of the bank were
enough to pay about forty cents on
the dollar to the depositors. There
was no evidence of anything wrong
with the operation of the bank. The
money was tied up in frozen assets.
That is it was loaned out to people
who could not pay it back.
The mistake was that the bank
had loaned too much money to a
few individuals with but personal
security.
This may be all right If one can
accept the theory that the act was
justified because 1t helped to de-
velop the community but the depos-
itors who had lost their LIES saw
ings because Of the banks altruism
and generosity probably feel that
they have been assessed too large
portion Of the burden Of commune
ity development.
In settling up the affairs of the
bank some notes were settled for
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

the bench, whose viewpoint toward
the Constitution is liberal land the
balance of power would swing back
to the Hughes-Brandeis- Stone
Cardozo side. The line Is very clear
ly drawn on the Court now, with
those four justices supporting the
broad view of the Constitution, and
with Justices McReynolds, Vande-
vanter, Sutherland and Butler
clinging to the belief that the docu-
ment should not be stretched" IN
any particular. The unknown
quantity is Justice Roberts, VIII Q
votes with one group one time, an
other the next.
It is also interesting that there
appears to be more dissension with
in the Court than in the past, more
bitterness in the decisions. Justice
Hughes minority decision in the
Pension case, in which he held that
the commerce clause gave Congress
the necessary power to pass the Act,
amounted almost to a denunciation
of the majority.
There the issue stands. If, when
the social security laws and similar
legislation comes to the Court, its
personnel Is the same as at pres
ent, the chances are they will be
thrown out. If the President has
the opportunity to supplant one of
the conservatives, the chances are
they will be upheld. That is the
trouble with to split-it in
evitably breeds uncertainty, in that
it can be changed overnight.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30
ON DANGEROUS GROUND

ON DANGEROUS GROUND
THE FEAR Of irreparable loss that
= grips tens of thousands of in
vestors in holding companies has
not been quoted by reports from
Washington that notifications"
are being made in the Wheeler-Ray
burn bill.
The apparent purpose Of that an
ti-holding company bill is to des-
troy such companies by 1910. No
provision is made to compensate
helpless investors, or provide for
the thousands of employees who
would be thrown out of work.
To any reasonable person such a
procedure is an unfair and un-Am-
erican thing to do-to use the pow
er of government to deliberately
crush an industry any industry.
Fair regulation of industry is one
thing, wiping out an industry thru
mere political power, smacks Of
abuse of authority delegated to pub
lie servants by the people.
When citizens awaken to abuse of
power they resent it. That is why
public interest is growing as to the
ultimate disposition Of the Wheeler
Rayburn bill. IF a branch Of the
electric industry can be destroyed
in this manner, so can any other In
dustry that becomes the focal point
Of a political attack, as has the
electric industry.
A great change in our fundamen-
tai form Of government affecting
all the people and all business, is
at stake In this issue.
Our public servants are treading
on dangerous ground, when they
sanction destruction Of private
property rights.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

THERE is an old saying AL things
= comes to him who waits" There
never was a greater faccacy. Rheu-
matism and death are the only
things one can be sure of by this
plan. Some towns from appearance
have adopted this slogan. Instead
Of going out after things they sit
down and wait for them. The only
things that come to the town that
follows this unattainable program is
grass in the streets and boarded up
store fronts. It may be q good slo-
gan for an undertaken but 1t, is a
mighty poor slogan for an indi-
vidual or a town.
The best booster any community
can have Is a man who walks up to
the counter on Saturday night and
faces pay roll. It is on such as
these that communities are built.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

stead Of carrying them for years I
think also that the better banks q
the future will have more capital Of
their own. Instead Of having Zen
thousand capital and handling a
half million Of the depositors' money
the relation viii be more nearly
even. Banks as I see II win "a
stall service charges for handllnr
accounts and depend more upon
this source Of income for profit
than attempting TO derive ali th1
profits from depositors' money Loan
ed too often to borrowers who ap
not entitled to credit. The betta
banks Of the future are also golnr
to limit dividends and build I'd 4
larger surplus account.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30
WHEN?
a MERICA viii attain grea1er
~ 4koo over. before.

MERICA will attain greater
"A prosperity than ever before.
More individuals and families
than ever before will share IN TINS
prosperity. -.
More families than ever before
will own their own homes.
Our current total of 21,500,0O0 au-
tomobiles win be doubled.
our 1s,5oo,O0o telephones VIII De
more than doubled.
Such little-uesd conveniences ano
comforts as air conditioning equip
ment. sun lamps and television re-
ceivers viii be commonplaces in the
home.
Much better provision will be
made for caring for those thrown
temporarily out Of employment.
In short, better day will dawn
certainly!
That isn't the opinion OF q pro-
fessional optimist Of the prosper
ity-is-just-around -the-corner class
Of people. It is the opinion OF B. Q.
Forbes, the realistic financial ana
lyst. who expresses it In recent
issue of Cosmopolitan magazine.
The natural question to ask, then,
is WHEN are all Of these blessings
going to come to us? And that, IN
Mr.. Forbes belief, is largely de-
pendent on the activities OF govern
ment. He is confident that the pent
ND natural forces of recovery are
rarin' to go-and that only man
made obstacles are standing In their
way. Fears of initiation, stirling
taxes, government competition with
private business, industrial regi-
bureaucratic regulation
of our great business these are
the friends of depression, and the
enemies of recovery. What is need
ed, in Mr.. Forbes words, is "a sens
ible get-together between govern
ment and governed; pact to work
IN harmony rather than at cross
purposes. :"
A tremendous respon i bility
upon our political leaders
TO bring that about. The American
people are in no mood to let poll
Tics continue to interfere with the
course of recovery.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

The deposit insurance Is calcu-
lated to protect depositors against
the banks bad loans. I am watch
ing it with interest. I cannot see
that it will make the banker any
more careful with my money, and,
If too many bankers get generous
with their loans in an effort to
make receipts larger and profits
larger the government is going to
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30
have some big bills to pay.

On the other hand, I think that
If the government assumes the re-
sponsibility Of inspecting and ex-
amining the banks it should stand
the loss If there is any. II not what
is the value Of government In
spection?
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

MO ONE can imagine what
- toothache feels like until he has
had toothache and no one can
imagine what it feels like to be
without a job, without money, hun
cry and a family at home in need
until he has been In that situation.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

When the government examines
a bank and gives it clean bill Of
health year after year and I wake
up some fine morning and find the
bank closed what is my reaction?
1t is but one thing. That is either
the inspection was not on the level
or else it was not thorough and
efficient.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30
MAKING HISTORY

-
MAKING HISTORY
LIVERY Supreme Court makes
~ history. The existing Court
has chance offered to few of its
predecessors to add important
pages to that unwritten, unfinished
volume which might be titled sThe
United States Government"
Most dramatic recent Court de-
cision was that Of the gold cases,
in which the Administrations un-
precedented action of selling all
the country's gold was held to be
compatible with the basic law of the
land-the much-talked about, little
understood Constitution. A few
weeks ago the Court passed on an
other case which received fewer
headlines, was less dramatic, but
which may prove to be of even
greater Importance that the gold
imbroglio - the Railroad Pension
Act.
This Act was passed by the last
session of Congress. Under 1t, by
governmental fiat, the railroads Of
the country were forced to make
provision for pensioning their old
employees, whether they wanted to
or nit, and whether or not they
had the money. The bill provided
that the railroads payments be
pooled, so that the stronger lines
would help to provide for the em-
ployes of lines which were finan-
cially weak.
The case went Immediately to
Court, dragged through series of
lower tribunals, arrived at last at
the Court of Last Resort, where
nine wise old men listened to long
arguments by able counsel for both
sides. Result: The Supreme Court
declared that the Act was beyond
the powers granted to Congress by
the Constitution, was thus null and
void.
The decision is immensely import
ant in that 1t establishes prece-
dent which, in the opinion of most
commentators learned In the in
tricacies of Constitutions law, make
it almost inevitable that the Court
will likewise throw out any social
security legislation that Congress
may pass.
In the words of Business Week."
the majority Of the Court "flatly
denied that Congress can use its
constitutional authority over inter-
state commerce for mere social and
humanitarian ends, as contrasted
with the protection Of legal rights"
That is a blow to the whole under
lying philosophy Of the New Deal.
Directly following the decision,
New Dealers said that they would
redraw the act, and base 1t, not on
Congress- interstate commerce pow
er, but on its power to tax. Here
again the Court seems to stand in
the way. It has insisted that a tax
ing act must be genuine attempt
to raise federal revenue-that it
cannot be camouflaged so as to
use it to promote purely social
end.
Even so, New Dealers and others
who favor social legislation, have
one chance to emerge victorious.
Thatschance lies In the fact that the
decision like so many major SUI
preme Court decisions-was S to
4. A number of the Justices are
past the usual retirement age, and
what Justice Hughes called "the at
tribution Of years" may force one
or more of them to step down be-
fore long. In that ease, the Presi-
dent could place q new Justice ON
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

ten cents on the dollar by the max
ers of the notes. The other ninety
cents was paid by washwomen and
laborers whom I know accumulated
their savings dollar at time and
who In so doing denied themselves
many of the things that the Dor
rowers Of their money enjoyed so
fully.
The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-05-30

The banks that follow these praa.
tees are going to profit by It b.
cause the larger depoSitors are pay.
ing more attention to the mangb
ment and policy Of banks than tho
ever have in the past.