The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-12-24
Washington
Merry-Go-
Round
BY DREW PEARSON and
ROBERT 5. ALLEN.

ROBERT s. ALLEN.
WAsHlNGToN' Dec. 24.-No
w matter how short the Presi-
dent wants to make the coming ses-
sion of Congress, one thing he can
not avoid is a knock-doTn drag-out
fight on the question of a ship
subsidy.
The big operators have given a
virtual ultimatum to the Shipping
Board that unless they have definite
assurances either of mail contracts
or a subsidy, they will transfer their
tonnage to foreign flags.
Undoubtedly this is partly bluff.
However. it has the Commerce De-
partment worried It is no secret
that American companies operating
under foreign flags could cut ex-
penseS considerably.
Andrew Mellon and his American
Aluminium Co. ships are demonstrat-
ing this right now.
One of the great mysteries of the
shipping world is what became of
the special shipping bill concocted
by Secretary Roper during the clos
ing days of the last session.
The bill was whipped into shape
when the shipping industry began
lobbying for an independent ship
ping agency.
TINE Shipping Board is a grand
L pie-counter for political patron
age. Few do any appreciate
amount of work. And political
patronage is dear to Roper's heart.
So three Roper henchmen hur-
riedly drew up new shipping bill.
They were Assistant Secretary j. M.
Johnson; Chester Mccall, assistant
to Roper, and Admiral j. c. Pea
cock, whose friendship with Roper
made him chairman of the Shipping
Board. None has had experience
with shipping.
What is in the bill nobody knows.
Congress closed before it could see
the light of day. But latest word
is that Roper is ready to spring it
on the shipping world in January,
and if so, it will cause a three-ring
circus among the Copeland Ship
Subsidy bill, the Roper bill, and the
independent Bureau bill advocated
by many shipping companies.
THE Securities and Exchange
= Commission is chuckling Sc
cretly over a little joke on the
Treasury.
Henry Morgenthau's boys have
been advertising their Baby Bond
issue with phraseoIogy which would
never get by the SEC. If a private
company issued similar financial adj
vertising the SEC would crack down
on it in short order.
The SEC, however, has no juris-''
diction over Federal bonds, nor over
state and municipal issues.
What the Treasury is doing is get
ting out prospectus. On the cover
is a full-bosomed, Autograph lady,
holding in one hand an American
flag, in the other a baby bond. She
also offers this advice:
add one-third to your invest
ment in ten years"
In another part of the prospectus
| appear these alluring words:
1925 United States Savings Bonds
at $18.75."
$1,000 United States Savings
Bonds at $3.50, ETC."
Such phrases are in violation of
all SEC rules. They give to the
average small investor the idea ne
is getting wonderful bargain. In
strict truth he is not getting a bar
gain, merely a 20 per cent COM.
| pounded interest. ,,
q u
THERE is new Little Robby'
i in the New Deal. Confidential
secretary to Gen. Hugh johnson and
guardian of his inner Office when
the ex-cavalryman was boss of the
Blue Eagle was Miss Frances Rob-
inson, known far and wide as Little
Robby.' Filling the same role on
the staff Of Rex TugWell is Miss
| Grace Fake.
With her desk close to the pri-
vate door of TugWell's sanctum the
blue-eyed young lady presides over
the destinies of three divisions and
knows what Rex is thinking about
almost before he does"
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