The daily independent., 1937-06-29
AeGk1HAD
Rv DREW PEARSON and ROBERT S. ALLEN

strong booster of Roberts for ap-
pointment to the Supreme Court.
Pending the full Courts action
in October on Reeds petition, the
big shippers, thanks to Roberts
will continue to receive their JUL
cy terminal allowances" running
into hundreds of thousands OF
dollars for the four-months per-
iod.
Old Story
When the City of Brotherly
Love staged a patriotic celebra-
ton recently, a number OF dlplo-
mats travelled from Washington
to take part in the ceremonies.
Among them was sprightly, out
spoken Josephus Daniels, U. 5.
Ambassador to Mexico.
At the head of a long flight OF
stairs in the assembly hall stood
Philadelphia's Mayor S. DAVIS
Wilson, Republican. When Dem
ocrat Daniels arrived at the head
of the stairs, he was greeted by
Wilson, who beamed upon him
and said:
"Mr. Ambassador, I've been
waiting many years to receive you
and to welcome you to the City
of Philadelphia"
Daniels smiled then remarked
drily: We'll, Mr.. Mayor, you met
me here at the Democratic Con-
ventiln and told me the same
thing-just one year ago."
Treasury Raid
For free and fancy Treasury
raiding, bill offered by Repre-
sentative Michael Reilly is one OF
the baldest schemes seen on Cap
itol Hill in a long time.
In the noise and clatter over re-
lief, the Supreme Court and tax
evasion issues, the Wisconsin
Democrats measure has escaped
attention. It deserves a better fact
for it is a honey. 1t proposes, IN
effect to make a gift to building
and loan associations of the car
rying charges on $l53 100000
worth of government loans-mon-
ey that is costing the taxpayers
from 2la to 3 per cent interest a
year.
This is the background of Riel-
ly's ambitious grab:
Under the Home Owners Loan
Corporation Act, S300,00O,O00 was
earmarked for the purchase OF
stock in building and loan asso-
Citations hit by the depression.
The object was to supply them
with funds to get them back on
their feet. The HOLC invested
S153, 100000 in these companies
under this provision of the law.
The Government receives no in
tereSt on this money. 1t draws di-
vidends on its shares, like the
other stockholders. These divid-
ends average around 3 per cent.
Right at this point is where Mr..
Reilly proposes entering the pic
ture.
Under his bill III. R. 342O the
requirement to pay these divid-
ends to the HOLC would be wip-
ed out. In other words. the build
ing and loan associations would
be given free use Of $153,000,000
Of taxpayers money, which they
lend to home owners at interest
I rates ranging from to per
cent.
Note: Chief lobbyist for the
Reilly measure is Morton Bod
fish, $25, 5,000-a-year vice president
of the Building and Loan League
and a member of the Federal
Home Loan Bank Board during
the Hoover Administration.
Merry Go Round
One good turn deserves an
other. Secretary of Senator
George L. Berry is F. L. Brown
ing, brother of Tennessee's Gov
ernor Gordon Browning, who re-
Gently appointed Berry to the
Senate. Except from a publi-
city blurb sent out about Pennsyl-
vania's ardent New Deal Cover
nor George Earle: Governor
Earle is descended from a long of
ancestors" One Of the most
jealous boosters in Washington
for the appointment of Senator
Joe Robinson to the Supreme
Court is Commissioner Vincent
Miles of the Social Security
Board. A fellow Arkansan, Miles