Evening star., 1936-07-17
French Arms Industry Is
Placed Under Strict Gov.
ernment Control.
DEPUTIES TAKE ACTION
BY VOTE OF 484 TO IS
U. S. Senate Probe of War Mate.
rials Cited by Daladier in
Backing Bill.

into last ,OGr
The suing to LETT in France, re-
sultino in first Socialist premier.
Leon Blum, led to more rigorous
consideration of tar ''profteerino"
in that nation.
Py the Associated Press.
PARIS, July 1.-THE French
Chamber Of Deputies voted national
ization Of the arms industry today by
the wide margin Of 484 to IS.
Backed by Premier Leon Blum's
LeftEt government, the measure will
clamp strict government control on
the nations large armament plants.
Edouard Daladier, minister of de-
fense, urged passage Of the bill and
vigorously attacked wartime prof1teers.
There will be mo recourse and no
appeal" he warned against the gov
ernment decision on munitions exports
by the state-supervised factories.
The United States Senate investiga-
ton Of the arms industry was cited by
Daladier IS an example OF the interna-
tional importance Of naturalization Of
warfare equipment production.
Hits "Scandalous Profit"
He continued: War must not be q
source Of scandalous profit. I" ."
I'VE want peace. but peace Of
free men and not one which Is suit
able for slaves"
Daladier appealed from the rostrum
of the chamber for an end Of the
liberty of armaments manufacture"
The bill calls for appropriation Of
large plants which depend mainly
upon orders given by the government,
he said, and these industries would
be paid for their property.
Exports and the manipulation Of
profits and securities OF the Arms
would be controlled by cabinet decree,
it was explained.
In addition to about 10 major fac
tories which would be appropriated,
the program envisages limited control
Of other companies whose production
In the main is designed for COM
mercial use, such as airplane manu-
facturers.
Daladier addressed other nations
with the statement: France an
nounces to other countries that she
wishes to end certain abuses Of the
past and desires them to act in similar
manner"
A reduction OF French armaments,
he indicated, would be made in pro-
portion to similar action by other
powers under international disarma-
ment pacts.
Bank Control Bill Passes.
The government rushed to chamber
enactment yesterday measure to give
it control Of the Bank of France.
On6cials promised, as the bill was
approved by q chamber Of deputies
vote Of 430 to Ill, to refrain from
using its new powers for imitation.
Vincent Auriol, fianance minister,
told critics the government was op-
posed to imitation.
Other government spokesmen de-
clared the measure was intended to
break the power of 200 families"
which own but 10000, 900 francs in
stock, while small shareholders hold
/, ,400, ,000, 900 francs worth.
On the other hand, opposition dep
uties criticized the number of func-
tionaries on the proposed bank board,
and assailed what they said was gov
ernment failure to provide q body
more representative Of the share
holders
Plan to Revise Charter.
Blum's government already has
financed itself through the Bank of
France, the nations top financial in
stitution. Its leaders have indicated
they want to fix the banks 136-year-
old charter so the board of regents
may no longer influence governments,
as 1t is supposed to have done In the
past.
Blum's bill will:
/. Supplant the present board of is
regents with a board of 80 directors.
2. Permit small shareholders to vote
in the election of 10 directors.
3. Abolish the requirement that the
governor of the bank own 100 shares
OF 1tS SVOck.
Under the banks present charter,
drawn up by Napolean, the board of
regents has been elected since 1900 by
the 200 largest stockholders. From
that rule came the election campain
attack on the 200 families" by Blum's
Leftist followers.
To these, the 200 were known as
money barons," the money wall"
and the financial oligarchy."
Places ON the board of regents were
down in family dynasties, the
Leftists charged. The records show
there has been member Of the NAL
let banlkin family, for instance, on the
board ever since the banks founding.
Ernest Mallet, the present regent, Is
the fourth of the line.