The alamange gleaner
VoL LXIV GRAHAM, N. C., THURSDAY, DECEMBER 22, 1938
No. 45
Weekly News Analysis
AAA Supporters , Encouraged ,
Expect Little Change in Act
By Joseph W. La Bine ?
EDITOR'S NOTE? Wbon opinion ara
oaproaaod in thou columns tboy ara tboao
M the noma analyst and not noc warily oi
tbo on wapapar.
Agriculture
U. S. cotton farmers having voted
to impose taxes on any producer
who markets more than his share
in 1939, last spring's agricultural
adjustment act seems destined for
enforcement next year with little
change. Not only the cotton elec
tion, but three other signs have giv
?tn hope to AAA's friends:
(1) - At New Orleans, President
Edward A. O'Neal of the powerful
American Farm Bureau federation
told his convention that AAA, cou
pled with the soil conservation act,
the marketing agreements act and
allied legislation "gives us the best
all-around farm program we have
ever had." Hitting criticism based
on currently low wheat and cotton
prices, he said: "Everybody knows
FARM BUREAU'S O'NEAL
" Compart . . . then say candidly . .
the law was passed too late for
wheat growers to comply . . . and
everybody knows that the cotton
surplus was produced in 1937, not
1938 . . . Compare the farm income
this year with the 1932 figure, and
then say candidly whether or not our
programs have helped the farmer."
The imjjortance of Mr. O'Neal's
statement is that Farm Bureau opin
ion could be a mighty force against
AAA abolition agitation.
(2) At Winnipeg, AAA Adminis
trator R. M. Evans spiked rumors of
drastic wheat acreage curtailment
next year by pointing out that U. S.
farmers could not be expected to
accept such curtailment without
similar action by other exporting
-nations. Hoping that government
subsidized exports need be only a
temporary measure, Mr. Evans nev
ertheless defended it as a justified
step to give the U. S. a fair share
of the export market.
(3) At Washington, F. R. Wilcox
of AAA announced sale of 5,000,000
additional bushels of wheat to the
United Kingdom, adding to the 20,
000,000 bushels he had already sold.
Having committed itself to sell 100,
000,000 bushels by next July, the
U. S. was already well past the half
way mark and had begun negotia
tions for additional sales to China
and Mexico. Though such subsi
dized exports will help reduce the
U. S. surplus, granaries will still be
far too full next year.
Europe
The initial thunder of Italy's de
mands for French colonies has died
down, as has the German-inspired
agitation for autonomy in Lithua
nia's Memel district. Although both
France and Britain promise one day
they will give no more concessions,
the very next day they make ges
tures in that direction.
Probably recognizing some Justice
in Italy's complaint, France has re
duced Suez canal rates to make
Italian East Africa more accessible
from Rome. Both France and Eng
land remember that they promised
to split African war spoils with It
aly back in 1915 when the Treaty of
London was signed. Since this pact
was ignored at Versailles, and since
Italy can now be a formidable ene
my, the two democracies are will
ing to make peace.
British Prime Minister Neville
Chamberlain, in a speech defending
his policy of "appeasing" dictators,
has led Italy to believe he will work
for territorial concessions on
France's part. Italy's demands in
clude Savoy, Nice, Corsica, Tunisia
and the East African seaport of
Djibouti.
Thus Europe has apparently
emerged from another war scare
into another period of diplomatic
conversations, to be followed proba
bly next spring by a German drive
into the Russian Ukraine. Among
the latest diplomatic moves is Ger
many's effort to consolidate its ex
port trade position in the face of
strenuous international objection to
Jewish persecution. Seeking to kill
two birds with one stone, Dr. Hjal
mar Schacht of the Reichsbank has
proposed several plans for permit
ting German Jews to emigrate with
a portion of their capital, in the
form of German-manufactured ex
port items. Dr. Schacht's recent
trip to London on foreign trade busi
ness emphasizes Germany's anxiety
over the United Kingdom's redou
bled export drive.
Congress
Last winter Texas' Rep. Wright
Patman offered congress a measure
to tax chain stores out of existence.
Its gist: To levy graded assessments
from $50 per store on small chains
to $1,000 per store on large chains,
each store tax to be multiplied by
the number of states in which the
chain operated. Sample: A chain
operating in 48 states plus the Dis
trict of Columbia would pay $49,000
per store annually on each store
over 500.
Though boasting 73 co-sponsors,
Mr. Patman's bill failed. Also de
feated was a New York state chain
store tax, which signified that chains
had more friends than their foes had
expected. But an apparently dying
issue wms revived as congress ad
journed, for Mr. Patman announced
his bill would be introduced in Jan
uary, 1939, as House Resolution No.
1. ^Battle lines since formed presage
a bitter contest next month, as
chains and anti-chain agitators re
view their cases:
Anti-Chain. Supporting Mr. Pat
man is a once-potent nftional trend
(now questionable) which caused 21
state legislatures to enact chain store
taxes. Another state, Colorado, last
month rejected a referendum to kill
a similar levy. Having won passage
of his Robinson-Patman act, also an
anti-chain measure, Mr. Patman
bases his new attack on familiar
charges that-ttfiains (1) force inde
pendent merchants out of business;
(2) cause low farm prices; (3) take
money out of the community.
Pro-Chain. V. S. census figures
show a decreasing number of chain
stores and more independents, while
federal trade commission statistics
credit chains with distributing
$8,000,000,000 in goods at an average
10 per cent saving to consumers *^f
the Patman bill passes, resultant
taxes (with the Great Atlantic St
Pacific Tea company, they would
total more than half 1937's gross
WRIGHT PATMAN
Feictr notet than lost y*or.
sales) would destroy practically all
chains, would reportedly wipe out
30 per cent of the farmer's market,
throw nearly 1,000,000 chain em
ployees out of work and force a
sharp rise in retail prices. Chains
point proudly to their two-year cam
paign of helping farmers move sur
plus crops like lamb,, beef, walnuts,
apples, and canned grapefruit juice.
Anti-Patmanites include the Amer
ican Federation of Labor, speaking
for its 5,000,000 members (who
charge the measure would increase
living costs and unemployment), and
the National Association of Retail
Boards, which termed it "vicious."
Counting- noses on the eve of con
gress' opening, Mr. Patman finds
his 73 original co-sponsors dwindled
to 32 through election defeats, while
another (New York's Caroline
O'Day) has withdrawn support. If
the Patman bill succeeds in reach
ing the house floor, political observ
ers wonder whether continually
mounting sentiment will sot bury it
in ? protest vote.
FORECAST
CANCELLATION of the 1933
concordat between Germany and
the Vatican, to precede enact
ment of Nazi laws directed
against the Roman Catholic
church.
RE VITAL IZATION of Japan's
drive north and west of Canton,
to strengthen Tokyo's position in
the event of a Russian war (?*
ASIA).
INCREASE In lending power of
U. S. Export-Import bank to ex
pand trade with Latin America.
CANDIDACY of Franklin D.
Roosevelt for the Presidency, not
in 1940, but in 1944.
REQUEST by small business
men for congressional creation of
a system of credit banks to meet
the needs of "little business."
Atia
The possibility of a major Par
Eastern crisis involving Japan, Chi
na and Russia becomes more immi
nent each week. Far from denying
it, Japan has taken new hitches in
her economic belt and settled down
for a struggle which may begin
shortly after January 1. Having
made supplementary army-navy ap
propriations of $1,634,400,000, Japan
faces a probable Russ-Chinese alli
ance forcing her to desperate meas
ures to protect what gains she has
already made in China.
Having penetrated deep into the
vast Shansi province, Jap troops are
confronted with guerrilla attacks
which in 10 days cost 6,000 lives.
Generalissimo Chiang Kai-shek, who
is* already getting supplies from
Russia, promises the guerrilla war
fare will continue. That Japanese
are at a disadvantage fighting so
far from their base of operations is
evidenced by Chinese recapture ol
several key towns near Canton.
Two clashes with Russia form the
basis for a new war scare. The
first concerns Japanese fishing con
cessions in Russian waters. Though
Russia refuses to renew the con
cessions, which lapse January 1,
Tokyo threatens to continue fishing
even though an armed patrol is
needed. The second dispute cen
ters on Sakhalin island, where the
Japs charge Russia is seeking to
expil Nipponese oil workers. For
her part, Moscow is demanding Jap
anese payment for the Russian in
terest in the Chinese eastern rail
road.
Meanwhile Japan has substantiat
ed the belief held by observers for
many months, that China's "open
door" ? guaranteed by the nine-pow
er treaty ? is about to be closed.
Seeking to liberate Japan and China
from dependency on foreign mar-"
kets, finance and raw materials,
Tokyo has virtually dictated what
Great Britain and the U. S. can
henceforth expect in the way of
trading privileges. Shrugging its
shoulders over still another treaty
broken in 1938, the U. S. state de
partment has called home Nelson
T. Johnson, ambassador to China,
to see what can be done about it..
Since Ambassador Joseph P. Ken
nedy has also been called home
from London, it is thought the U. S.
may solicit British support for a uni
fied protest against Japan's econom
ic activity in China. Probable re
sult: nothing.
Espionage ?
In New York, Hairdresser Johan
na Hoffman and other members of
a Germany spy ring had just been
sentenced. In the Panama Canal
Zone, the government was busy try
ing four other young Gennans ac
cused of photographing Mortifica
tions. Commented their attorney:
"I venture to say that there is not a
single construction or equipment for
defensive purposes in the Canal
Zone, details of which are not now
in the possession of any foreign gov
ernment desiring the information
and willing to pay."
Hardly had this shock penetrated
before the West coast, hotbed of
espionage, reported its latest spy
scare. In Los Angeles government
agents arrested Mikhail Gorin, > So
viet tourist agent and Hafis Salich.
native Russian who became a
Berkeley police officer and was lent
to the naval intelligence because he
could speak Japanese. The charge:
That Salich supplied Gorin with
confidential navy department infor
mation regarding Japanese military
affairs. How the U. S. (which claims
to operate no counter-espionage
agency) secured its Japanese se
crets, was not told.
MUcelUmy
Invalidated, by the North Dakota
Supreme court, that state's $40 min
imum old age pension plan approved
'in the November election, because
1937 legislative appropriations can
not be used to pay pensions more
than $30 monthly, also because the
measure exceeds "reasonable as
sistance" aa outlined in the state
constitution.
?fc
Bruckart's Washington Digest
Legislation Against Chain
Stores Will Come Up Again
Danger to Independent Store Operator Will Be Theme of
Discussion; Question of General National Policy
Needs Thought; Sane Regulation Is Possible.
By WILLIAM BRUCKART
WNU Service, National Presa Bldf Washington, D. C.
WASHINGTON. ? The politician
who is a demagogue? the fellow
who has nothing on the ball and gets
into politics on his gift for gab ? al
ways must have a bogie man, a
hobgoblin. There must always be
an immediate threat, like the sword
of Damocles, hanging over the
heads of the dear pee-pul. If the
political demagogue doesn't have
that sort of thing, he is utterly lost,
because usually he can not talk
about fundamental issues.
The favorite bogie man of fellows
like former Sen. Tom Heflin was
"Wall Street." Day after day, ole
Tom would drag Wall Street onto
the floor of the senate and shake the
gizzard out of it. There were others
like Tom and there were other hob
goblins. The chain stores, for a
number of years, were the meat and
drink of the demagogue and many
an otherwise punk got elected to of
fice because he could talk for 10
hours about the evils of the chain
stores. We always have had onr
trust busters, the baiters of corpora
tions. One bogie dies and another
takes . its place and the thing goes
on until presently one of the old and
and almost forgotten bogie boys is
brought to life again.
As pre-session plans take shape,
it appears that the country is going
to be told again about the evils of
the chain stores. There is going
to be an attempt to legislate them
out of existence. Many a shout will
ring out on the floors of the senate
and house about the danger to the
independent store operator, the man
at home. The bill, whatever form
it takes or whatever it proposes to
do, will serve as a vehicle for a
shouting mob of representatives and
senators. As usual, they will offer
no new argument, but they will send
copies of their speeches back home
and make a great howdy-do over
themselves.
Should Give Thought to
General National Policy
Because of this prospect and the
existence of several other things like
it, there ought to be some thought
given to the question of a general
national policy. In other words, 1
am of the opinion that the congress
and the several state legislatures
ought to keep their feet on . the
ground instead of jumping off the
deep end when there is no boat in
which to ride. I see no profit in cut
ting off my nose just to spite my
face. There is just as little sense to
that as selling out to the "vested
interests."
There-!? something to the argu
ment in favor of regulation of great
chains of stores. It can be truth
fully said that they exert a lot of
pressure on the independent! They
deny this, of course, and answer
that there is no pressure. Their
statement may be true insofar as it
may mean that the chain store has
made no calculated plan to drive
the independent out of existence.
Yet, their very bigness is, of itself,
a pressure because they can buy in
larger quantities and obtain lower
cost prices than the individual who
buys a few cases of canned goods at
a time. When they buy at lower
prices, they can sell at lower prices
and the independent finds himself
hard put to meet the competition.
That sort of thing happens in ev
ery community where chain stores
are in operation. It will continue
to happen, because there is not a
man nor a woman who will say
honestly that he or she will pay a
higher price simply because the
store at home is owned by somebody
who is a local citizen. I am old
fashioned about it. I will go to a
chain store many, many times, be
cause I save money. It is my mon
ey (hat I am spending and I am
going to get the most for it that I
can. The fellow who owns a local
store is in business to make a profit
and I am willing that he shall have
a profit, provided he can give me
the same value for what I spend as
does some other store.
Sane Regulation of Chain
Store ? Can Be Accomplished
It the chain store* are abusing
their power, a power they have sole
ly because they are big, the con
gress and the several states surely
ought to take notice. There can be
sane regulation of them. They can
be made to correct any abuses, but
I can not And any legitimate ex
cuse for destroying them. I. am in
the role of a consumer, and every
legislator ought to consider that his
constituents are consumers and that
they must be given consideration.
I have been told by men in the
government whom I believe have a
general understanding of the prob
lem that destruction of chain stores
will raise retail prices of the things
they sell by as much as 20 per
cent. Who is going to pay that?
You and I and everyone who buys
for consumption. If I can get my
cigarettes at two-for-a-quarter, I am
not going to pay 15 cents. So, if con
gress or the state legislatures find
it necessary to protect the independ
ent, that policy should be adopted. j
But the extreme position of taxing
them out of existence or destroying
them some other way is utterly silly. |
It is, as I said earlier, rather like
cutting off my nose to spite my face
? and I have a beak of which no
one could be very proud!
This chain store bogie man is just
another of the many tlyt are used
by politicians to build up them
selves. Once before, in these col
umns, I expressed the hope that
some time I would like to see an
honest politician. I think it would
be refreshing to all of us.
I heard lately, too, of a movement
against those people who sell direct
to the consumers. There are cer
tain types of them that ought to be
locked up. Most of them, however,
have a legitimate product and they
are making that product to sell to
consAners. The movement that is
now said to be spreading has
evolved into what is called the
"Green River ordinance," a munici
pal law which is designed to prevent
any house-to-house canvassers.
Problem of Separating
Crook s From Honest People
Now, there may be sound reasons
for a city council to bar' anybody
from selling direct. At the moment,
I do not know of any. Yet, accord
ing to the reports received by the
federal trade commission, there was
a small town out in Wyoming which
actually convicted some boys from
the neighboring farms and sen
tenced them to jail because they vio
lated the city law, by selling direct
to the householders in the town.
That town ought to have a very red
face, it seems to me.
I said that there were certain
types of canvassers ought to be
barred. I refer Jo the racketeers
who scour "the country in crew's,
selling this or that or the other;
who are here today and gone tomor
row, and who many times leave a
wake of dishonest dealings, insults
and sometimes plain thievery. Of
course, there ought to be punish
ment of that type. But why punish
the honest ones by placing them in
the same category as the crooks.
The problem becomes one of sepa
rating the crooks from the legiti
mate people, but your demagogue
will not do that, whether that dema
gogue be a member of congress, a
member of the state legislature or a
member of the city council. He
would not be able to bleat so long
if he attempted to analyze the real
situation.
All Facton in Situation
Need Careful Consideration
I suppose that some of the things
I have said in this analysis of a na
tional problem will make me as pop
as a skunk with some local
merchants. I believe, however, that
there are two sides to the argument
and that there must be moderation
in dealing with the hobgoblins that
are built up for selflsh reasons,
either political selfishness or for
monetary gain.
Hence, I argue that the country
and its legislative bodies must look
at all factors Involved in the situa
tion. Hysteria and demagogue ry go
hand in hand, with the demagogue
leading and capitalizing on the cir
cumstances he has created. If it
can be shown where the brush sales
man or the salesman for the floor
sweeper or the home remedy sales
men are wielding a bad influence
upon the life of the nation, prohibit
them as is done many places with
the saloon. If it can be shown that
the vast majority of the people get
no benefits from chain stores and
that the chain stores damage the na
tional life, get rid at them or regu
late them closely. My thought con
tinues to be, howerer, that there
must be moderation in legislation.
? WMtera Newspaper Union.
Speaking of Sports
Jacobs Plans
Banner Sports
Shows for '39
By ROBERT McSHANE
Mike Jacobs, sports promoter
who boasts the "fastest click
ing set of store teeth in the United
States," is not completely satisfied
with his 1938 income.
With more than $2,0M,M* crossed
from his virions activities daring
the past year, Mike has decided to
promote a show wherever there's a
chance to ears an baaest dollar.
The number of fights and the she of
the rates hasn't been satisfactory
to him, and he hopes to remedy the
sitaatlos daring the cominc year.
"Next year," declared Mike, "I'm
going to put on some kind of a
Mike Jacob*
sport*, show wher
ever there is a
chance to make a
dollar. I even hope
to have two or three
running at the same
time. For instance,
if I put on a heavy
weight show at the
San Francisco fair,
and I undoubtedly
will do that very
thing, I may have
another fieht coins
on in New York the same night."
Admittedly Mike has do iveraian
to making money. He's shrewd, aad
on top of that has all the lack in
the world. That eombinatioa has
made him an outstanding sneeess
in sports promotion.
Mike was accused of pulling ?
boner when he introduced the an
cient basque game, jai alai, to
Broadway without the mutuel ma
chines which have made the games
so successful in Havana and Miami.
The wise boys figured it couldn't
make the grade without the added
attraction of gambling.
Bat Mike called his shot. The
game has done so well in New York,
even without betting, that he Intends
to keep it running through until Au
gust. He Intimated that ha will pat
the game in Boston, Hollywood aad
Chicago, bat only If the legislatures
in Massachusetts, California aad
Illinois take action that will insure
installation of betting machines.
Dirt-Track Czar
CPEED kings like to gather 'round
^ when John A. Sloan Jr. of Chi
cago, the "Judge Landis" of the
dirt-tracks, talks over old times. In
his own words:
"I'm the second generation of
SJo?ns in the race business. In IMS
mj dad began presenting speed
kings. He brought out Barney Old
field, Louis Disbrow and Sig Bang
dahl. Now we stage dirt-track races
all bnt three months in the year. It's
a big business. We plijrM before
two and a half million people this
past summer at fair grounds from
Montana to New York and Florida.
St. Paul is THE dirt-track town ?
a crowd of 171, MO saw our races on
La box day.
"We haven't had a fatal accident
in six years while staging 2,730
races ... we don't sacrifice speed
either. Emory Collins, the dirt
track champion, holds the record of
90 miles an hour on la mile track.
They only average ? little bettei
than that on the big, banked brick
track at Indianapolis. We get top
drivers because we give 'em regu
lar work? some of 'em make as
high as $10,000 a season.
There's ? little more security at
tached to dirt-track racing. They
don't have to gamble for their mon
ey. Drivers are given a percentage
and the prise money they can win.
Don't Curb Liberties
CCGGESTIONS that the liberties
of baseball players la the off
season be curbed received a set
back recently from Connie Maek,
baseball's "grand old gentleman."
Scores of "viewers-with-alarm"
have proposed all kinds of far
(etched measures to
protect baseball
players from acci
dents ? and to re
lieve them ot per
sonal freedom. Most
of the proposals
came following the
tragic accident ot
Monty Stratton, Chi
cago White Sox
pitcher, whose leg
was amputated as
the result of a hunt
ing accident.
Connie Mack
"Suppose we Old tell tue players
they eoaldn't go imlif, flyinc, or
go over Nlarara Falls la ? barrel?
Ia the end the player weald rise Bp
and ask: 'What am I? A slave,
bound hand and foot? My life Isn't
my ewa by any standard.' "
"We might put all kinds at clauses
in their contracts," he added, "but
they'd probably do what they want
anyway."
Basketball Rules
CEVERAL important changes in
national basketball rules were
made recently by basketball
coaches and officials from western
and mid-western universities and
colleges. -
Western conference teams will
concur in the rales drawn ap by
the National Collegiate Athletic as
sociation more completely than to
any recent meetings
Principal deviation from the coda
for the Big Ten is the decision to
continue the practice of permitting
two minutes for each time oat. The
code allows only one minute. Tho
rules this year extend the number
of time-outs without penalty to frra
for each team.
The coaches agreed
when a field goal has
and a foal called
the goal, that sal
permitted before
attempted and that
will not eout as a
The player with
touches the center Hne, n
sidered to be in the hack
he may pass hack to a
court
touched by
was forfeited to the defense.
Olympics Again
Q FFICIALS of the American
Olympic committee rcccnUf
voted to accept Finland's invitation
to the games of the Twelfth Olym
piad, to be staged in July and Aa
gust of 1940. and at the same time
lent its indorsement to a bid by
the city of Detroit for On 1944
games.
Sport Shorts
TP HE highest scoring college f*?*
on record saw Georgia Tech
crush Cumberland (Tern.) icim
sity 230 to A in 1917 ta a guns
shortened to 45 minutes . . . ra??.i?n
will send 275 athbrte* hv nlrn
Burleigh
Grimes
Finland tor the IMS
Olympics . . Play
en on the KncxviOe.
Iowa, high icbool
basketball "team
(truck because they
were asked to pay
regular student ad
mittance fees to
play . . . Dutteigh
Grimes win manage
the Montreal Royals
of the International
league for the next
two years . . . At
football games during 1938 rose 11
per cent over the '37 total . . . Italy's
sport vocabulary has been pureed
of all foreign words and expression.
Pocket Billiards
By CHARLES C. PETERSON
President. National Billiard AssociaQai
of America and World's Trtc*
Shoe Champion
Lesson Ne. 1*
This diapu shows mother Ida
break shot from the Uble center.
As in some at the previous kin
shots the outstanding point it that
the balls must be carefully spotted
as shown in the diagram ? every ball
frozen. Cue your ball at absolute
center and do not try to break the
cluster of balls with your cue beJL
Let the object ball do that The
stroke for this shot should ha medi
um hard, and be aura that yea (al
low through.