Representatives of 7 Nations Assail Stimson Recognition of Otto
Representatives of 7 Nations Assail Stimson Recognition of Otto L'affaire Hapsburg has become a vexing international problem as protests continue to file into file U. S. War and State Departments...
...Can it be true," Count Carlo Sforza, anti-fascist leader, asked, '4here are some who still think of such ghosts as the Austrian Hapsburgs...
...He has, as a matter of fact, called a conference of representatives of all parties but the Moslem and Congress, in the hope of achieving unity piecemeal...
...Worse, they a»e being assisted by a greaf many big-hearted, sincere, .'unthinking citizens who ought to know better...
...demonstrates the logic of the anti-labor propagandist who spreads over into all reactionary fights...
...The Germans and the Laval government are feverishly seeking to eliminate all people capable of military or political leadership in any resistance movement...
...On the other hand, the prospect of a new Viceroy of India is a source of encouragement for Indians, very few of whom have had any love for the Marquess of Linlithgow...
...Chase challenges...
...Hoor defends the Stimson-Otto tie-up on the theory that monarchy is the most effective bulwark against Hitlerism...
...Chase's essay is that liberals and socialists who fulminate against bankers, profits, Sixty Families, He., are beating the empty air because capitalist institutions are crumbling, and attacks against these forces are now quite meaningless...
...have a job to do...
...Oh** *eems to be carryhn...
...Representatives of 7 Nations Assail Stimson Recognition of Otto L'affaire Hapsburg has become a vexing international problem as protests continue to file into file U. S. War and State Departments scoring the recognition of Otto, pretender to the Austro-Hungarian imperial, throne, as the recruiting agent for the newly-formed Austrian legion in the American Army...
...We may expect some similar terror move...
...of a small operating group...
...They must be told that they, too...
...applitJ to pre-war conditions...
...exclude the big interests...
...Official statistics have been misinterpreted because people don't realize that the figirres include civilian industries, many of which are on less then ihe.48-houi week...
...Neumann describes hew the Nasi state was used to build a huge steel trust) "Perhaps still more surprising is the rise of the Quandt family combine . . . the combine is a family affair, as is the Flick combine...
...The Managers had illegitimate power anyway, so apparently there is little loss (vis., Drucker...
...Chase's The Road We Are Traveling: "As illustrative of the type of treatment which Mr...
...administrative techniques...
...the "fetters of production" art not affected by managerial shifts...
...Rajogopalarchiar's meeting Mr...
...Chase's analysis is the easy esstttaptior...
...Chase...
...As for corporations lilted under "management control" such as U. S. Steel...
...Isolationists'UseCensor Issue to Hit 'New Deal' By MURRAY EVERETT WASHINGTON, D. C.—Censorship is always a matter over which much heat can easily be generated, and the storm brewing now over American and British censorship of dispatches crossing the oceans is no exception...
...Also, according to Mr...
...Given that new military turn, India may yet be drawn actively • into the war...
...It is the most distinguished beneficiary of Aryanization, but it went far beyond swallowing Jewish property...
...What the inflation in Germany only partially succeed in doing, Nazism has finally accomplished and with greater dispatch...
...From Michael Karolyi, leading Hungarian democrat now in London, came a cable in which he said he regarded any move toward a Hapsburg restoration as "incompatible with any kind of federation of the peoples of the Danubian basin and as a danger to peace and reconstruction on progressive lines...
...The implication of a New Deal plot is phony...
...The desperate military situation of the British in the Middle East last summer gave special urgency to the widespread demands for "freedom," ''independence," and whatever working political arrangement could be effected to the satisfaction of such leaders as Mohandas K. Gandhi, Jawaharlal Nehru, .ami Mohammed Ali Jinnah...
...Chase (who shies away from conceptual thinking so vigorously that he constantly places "feudalism," "capitalism" and "capitalists" in quotes) now says that the Managers (no quotes, rfs an accepted fact, you see) have taken over "Capitalism" (viz...
...Clearly, militant India's greatest opportunity for political advantage has passed...
...The failure of a "new middle class" to arise and wipe out the "class struggle" of Labor and Capital would not affect his anaiysi« of property today and the emergence of the Managers...
...The very idea of victory while holding India on a leash must be agreeable to the die-hards and Blimps who would love to indulge in reminiscenses about India being easily controlled with the small finger of the left hand...
...An absolute increase is cited in the number of people engaged in retail and wholesale distribution during the period 1918-1929, without population or production increases...
...Chase, feeling that radically new socia1 systems are on the horizon, suggests offhandedly that the new technology may be replacing the older industrial worker with "a middle class...
...He pointed out that the control of corporation* by legal devices as a matter of fact excludes the small stockholders from a voice in affairs, but doe> not at a...
...The so-called "contradiction* of capitalism...
...C. V. R. Thompson of the London Daily Express said that the British people are not getting a distorted picture, of America.-His opinion was concurred in by a majority of the correspondents...
...They have to be told that now it is their job to prevent any new plans for purges and massacres...
...What was crucial to f-ociahst analysis wai property relations—the antagonism between tlx "productive forces" and the "social conditions of production...
...O'Donnell: "Under the plea that this war must be won on the 'psychological front'—favorite doctrineof New Deal pets Archibald MacLeish and Lowell Mel-lett—American censors have -been ordered to delete everything from stories written here for foreign export which might suggest that all is not all for the best in this best of ail possible New Deal worlds...
...Chase has been waging a furiously '?*7"* PtOspect of Burma Front, New Viceroy Oives Hope for India Compromise By MATTHEW LOW - "You can win the war without us, but you cannot win it the way you...
...From the Yugoslav spokesmen here.came a particularly pointed warning (Yugoslavia was very largely .formed from portions of the old Empire dissolved in 1918): "Any attempt to revive the Hapsburg Empire, or anything like it, will have the most unfavorable effect on the fight and resistance of Yugoslavia," where guerilla forces have immobilized several hundred thousand Axis troops...
...of this point, too km* to repeat here, which is printed as Appendix ? to his revised edition of 'Sixty Families...
...Dr...
...The allocation of r*w materials determines who remains functioning in business...
...They are not rentiers who at the end of the year cut the dividend coupons of their stock certificates and cash the dividends...
...Lundberghsi made an interesting anaiysi...
...Does not the struggle of the worker in fact continue against those who exploit him, no matter what that exploiter calls himself Mr...
...The fulcrum of socialist theory is property, and what is happening to property...
...that might cause dissension among the Allies...
...Holland...
...Numerous stories about occupied nations have shown that there is little limit to the extent of German terrorism...
...Chase ? essay is so higblT discursive and crazy-quilt patched The questions he raises are serious and surely deserve more careful thinking than hi...
...With each victory in Russia, Africa, and ihe Pacific, Indians feel the chances of their nationalist movement are diminishing...
...Kamp, whose previous efforts have been mainly in the labor-bartrng fieid...
...The recent appointment Df Viscount Cranborne, Secretary of the Colonies, to take Sir Stafford Cripps' place as Lord Privy Seal in the Churchill cabinet, has been taken to be only a temporary move presaging his appointment to New Delhi...
...It is the war economy, not the Naz political system that ha...
...Chase illustrates his theory of functions with a bright analysis...
...Carefully using and checking hie materials, Prof...
...These liberal concepts were functions of capitalism, and now with capitalism slipping away, we've only been looking at an after-image when the reality has long since faded...
...to see Gandhi in prison and possibly plan schemes of compromise, C.R., who had previously resigned from the Gandhi-Nehru Congress Party to work for Hindu-Moslem unity, is one ;of India's most widely-respected political personalities...
...These two great social movements, which are to dominate the next period of history, apparently have no organic relationship, and have arrived together almost, a? it were, by accident...
...that as capitalism superseded feudalism, so Na2ism as a totally different social system has replaced capitalism...
...And more promising than that for a progressive, democratic settlement with Indian nationalism is the prominence of the India-Burma front, now suddenly elevated into the position of the world's most important passive front...
...So did Chakravarti Rajagopa-lacharlar ("C.R...
...SifJiifi cant, too, are the TNEC statistic* that 18 fa«flie* own $2,700.000.rJOO worth of stock in the conrrtry'' 200 largest non-financial corporations Within Chase's sense...
...The German people must be told this and learn it...
...Under National Socialism it realized an old dream, its extension from a specialized to ?? ail-embracmg combine...
...India's outstanding liberal and anti-fascist, sum up the Indian-British crisis . this week...
...concentrated ir the hand...
...were blocking passage of the bill...
...Gandhi...
...industrial workers and reduced both the "old" middle class and the "new" middle class both in function—and status—to the older worker's level...
...Specific examples are cited to show that French and other occupied industries are distributed among the powerful monopolies, not excluding the new Hermann Goering Werke, one of the largest capitalistic enterprises in Europe, and the I. G Farben concern...
...What they find amazing, is the recognition of Otto Haneburg as recruiting-agent—Otto, who despite his promises of enlistment in the battalion as a private (ditto for his three . brothers), is on record as the Imperial pretender...
...What has happened in this case, however, is that a legitimate gripe of working newspapermen—which could or could riot have been settled by discussion—has been appropriated by the "isolationist" press as a stick against the New Deal...
...But Nazism as a system has ground out the middle class...
...control—through management—i...
...In Mr...
...More sinister is the fact that the disruptive and un...
...is »tili an ortd blunderbuss-Mr...
...Implicit in Mr...
...while Southern obstructionist...
...Chase's remarks on social theory, in an article in the December Common...
...hasty thrusts...
...Some of the stories are true, some patently-false and contradictory...
...and given, too, a more farsighted and internationally-minded colonial policy than that of last summer, possibly with overwhelming military and political effectiveness against the Japanese Empire, which has very few friends indeed among the Indian people...
...Our propaganda to Germany today therefore must warn not the Fuehrer but the German people that if these massacres go through, the conquered peoples will hold them responsible for the crimes ordered by their leader...
...Nor are the managers themselves simply managers, that is salaried employees They have long ago siseumed the role of capitalists proper, investing their savings in shares and often speculating with the funds of their own corporations, thereby strengthening their personal financial power within them...
...As Win-.ston Churchill grows in confidence (which is "arrogance" in India's eyes), despair grows among the advanced leaders of the Indian people, although all flie Allied victories have been warmly hailed...
...This policy isn't new and it didn't start here...
...Schwab of U. S. Steel...
...Neumann concludes...
...Via a felicitous combination of James Burnham and Peter Drucker, Mr...
...The new problem is not Capitalism but "managerialism" and atatism...
...They are passe...
...sections of analyses can disappear wholesale without affecting any other part...
...Technology is broadening this class by transferring Workers from the factory to the service trades...
...a culture without factories, and without absentee ownership...
...is the consolidation and extension'of the scope of industrial empires based on family ownership and control «tfkey corporations and banks...
...The stories cannot, however, hide the tense situation that exists and the explosive anti-German feelings held by the French population...
...Consolidated Edison, New York Central, they are regarded authoritatively in Wall Street as under the rule of J P. Morgan and Company...
...Facts are stubborn masters, and Mr...
...I once raised Berle's point with Ferdinand LDnd berg, in connection with his America's Sixty Fount-lies...
...The problem of Stat mm...
...For all of us, Serbs, Croats and Slovenes, in Yugoslavia and outside, the Hapsburgs are the representatives of reaction and darkness...
...the capitalists with substantial power * ' in Germany...
...In the process, however, one oftdn finds that be has cooked the cabbage but boSfed otrt the vitamins and minerals...
...Genera] Electric...
...Sod|list-1...
...One can say, well, this new Middle-Class is increasing in the United States...
...Moreover the managerial positions are often as hereditary as those of capitalist^ proper...
...Senators received a photo-offset letter from Joe Kamp "Diabolichl enemies of Constitutional g.overnment...
...Kamp, ""are using the poll .tax issue as a subterfuge to tear down our American system and foist on Us an order of society that is alien to every ideal and tradition for which American...
...47 4 of the 200 largest companies in the country, according to Berle and Means tabulation, ere controlled through outright ownership, majority ownership and ttgge-bloc minority ownership...
...But is that really the end of the fight for ¦Socialism...
...Quixotically enough, Mr Chase, in tilting st "Dated Socialist-Liberalism," never really'<rtscTls»^ the impact of the war on his New Middle Claes-"decline of capitalism" thesis: The new strengt* of monopolies, influence of business in WPB, A* vast new investment opportunities opened by war, the role of American capital in an impoverished post-war world, the possfbilities-and hope-for social revolution in Europe...
...For one, Mr., Hinrichs answers anti-labor propagandists who claim that 40-hour week legislation and time and a half for overtime is holding up war production...
...rants Mr...
...There is still the possibility that the war will be won "with India," and in the way that liberals and democrats all over the world want it to be won...
...Mr...
...Friedrich Flick and Gunther Quandt are not managers but powerful capitalists...
...Ask ? err Thyssen how much power he still holds...
...That there is ground for protest is undeniable...
...TheernoBt vociferously outraged dec...
...The agitation for an "Austrian legion" ifr the U. S.- Army was begun by the democratic Austrian Labor Committee, and leading figures in the late Austrian Republic have already registered their approval of the new organization...
...He continues: "The outstanding achievement in building up am radustnai empire is that of Friedrich Flick, industrial eondettiere who outranked every industrial competitor above «9 Fnti Thyssen...
...Even Dawn, organ of the Moslem League, protested: "The political situation, bad as it is, would net have been worsened by Mr...
...The speech by Congressman Maas was censored for dispatch abroad and news of the poll-tax filibuster was kept down to bare detail with all interpretation eliminated...
...Says he: "If the western hemisphere had not been opened up by Columbus, and the institutions going under the style of 'feudalism' had not been supplanted by 'capitalism,' would Marx have had anything to write about...
...This point can be ilriftrtrsfted by Ar...
...Neumann's book is a documented account of how monopoly groups strengthened their position and gained control of the German economy...
...The American censor cut out dispatches of British correspondents which had references to critical attitudes here . Thus the British people didn't know too well how we felt, and this affected their pressure on the Churchill government...
...Chase's social analyses ses...
...Burnham): and that government control, initiated in total war is displacing the Managers...
...US Propaganda MustwarnReich OnFrenchPurge By George Becker From the flood of stories em-enating from France it is obvious that the Germans are interested in creating a smokescreen about events taking place...
...of increasing governmental controls and planning is one thing, end that perspective can be argued independently of t** Chasian categories...
...All this is packaged together under a ribbon headed theory of funetione...
...Labor-Baiter Kamp Aided Fight on Poll Tax Joseph P. Kamp, former literary-associate of American Fascist Lawrence Dennis, whose scurrilous work...
...Does Nazism as a new socia1 system eliminate the industrial worker...
...Then there are the managers...
...Are the monopolists merely managers...
...The incident that received most publicity was the use of shears on dispatches from Washington on American opinion towards the Darlan deal...
...The reported arrest of Herriot and the 'news that Paul Reynaud and Georges Mandel have been sent to Berlin to await trial before an "International People's Tribune" which will include four Germans and three Frenchman, is easily credible...
...given the Germer statt a non-capitalist twist...
...Relevant reading is Volume 8 of the Murray Committee hearings which show how small-business is being wiped out during the course of the war, and recommended too are the estimates by government officials bf how drastically the WPB "concentration" policy will eliminate numbers of small concerns...
...Under the direction.of Dr...
...Italy, France...
...Says Mr...
...Local bitterness has been especially acute on the Viceroy's refusal to allow CR...
...At hand is a recent, comprehensive study of the German economy by Franz Neumann, entitled Behemoth...
...Neumann asks...
...It might be possible, when the Allies win, to prevent the physical extermination of German men and women, but the extent and horror of German deeds may make it impossible for the aroused European peoples to tolerate the existence of a German state...
...There is h'ttle doubt, however, that a great "purge" is now going on in France...
...Our history under the Hapsburgs has been written in blood, suffering, imprisonment, oppression, treachery and abnegation of all hfstoric rights to independence and freedom...
...But Sapru himself is not particularly optimistic...
...The African campaign opens once again the Far Eastern arena to offensive operations...
...Sir Tej Bahadur Sapru, •who called the Viceroy's decision "most unwise and shortsighted," is still striving for a wartime settlement which would bring all dissenting national elements together...
...IN a final sense Mr Chase's social theory rest' on the Berle-Mean« distinction within modem corporations between ownership and control Ownership—through stock—is diffu*d widely...
...Chase accords important issues of economic policy, fhe following are typical...
...Some elements of hope still exist...
...Would the theory of Socialism ever have been invented" Would a labor movement have arisen rr...
...Toulon continues to live in the glowing reflection of the fleet explosions, and that is true for the country as a whole...
...Vague stories have appeared concerning numerous arrests, but few cases are as yet confirmed...
...Cannot a socialist state replace a fascist state...
...Native Nazi Purge Plot," was utilized by the indicted Mrs...
...the new Sloan Founds tion, and the like.,buttress family control...
...He reports after thorough investigation that no official of the Government, other than Byron Price, is making any decisions affecting censorship...
...Chase assumes apparently t*»t the war is a stop-gap and that the tendencies h* describes will resume their march It is a pity that Mr...
...dermining wrangling over the issue is destructive of national unity and morale, and...
...Not because there is any idea of partition, but because partition would become the inescapable consequence of the Germans' crimes...
...Otto Wolff...
...Roscoe Drummond, veteran Washington reporter of the Christian Science Monitor, writing on November 30, disputes the charges made by the Daily News that Byron Price is being pushed around by the White House...
...German deeds today endanger the existence tomorrow of Germany as an independent state...
...They protest against tendencies to give Otto Hapsburg or his agents influence upon the special Austrian unit in the U. S. Army...
...The brute fact thefHitler has ateo destroyed the power of the capitalist...
...As for the more serious argument which couW be raised whether the existence of strong monopoly groups still may not mean that the economic system is not capitalist—torn-use of the absence of the market, etc...
...in France...
...The Strange Case of Stuart Chase ly DANIEL BILL THE writings of Stuart Chase...
...Chase's sweeping generalization...
...the most important* poKtico-eeonomKc ae-timty in Germany—the allocation of raw materials —?& entrusted to 'private organizations run by powerful monopolies...
...He has a knack for the jaunty phrase and homely uiustration which stripped economics of its jflbstraseness...
...Is then a tendency to do so...
...Chase's reasoning in this connection is commented on by Victor Ambrameon in the September American Economic Renew, reviewing Mr...
...According to Hinrichs,,: there are some scattered plants temporarily operating on less than 48-hour shifts, but only because of a shortage of materials...
...The war economy has brought tremendous increase in the producing classes, ir...
...and executed by the Gestapo...
...of censorship has been John 0'Donnell, Washington columnist of the New York 'Daily Vena and the Washington Times-Herald...
...Tickets at 55 cents and $1.10 are available at Carnegie Hall box office and at Freedom House...
...Bnt capitalism wiped out landlord and serf and brought in different social classes based on industrialism: the capitalist and the worker...
...War Industries Work 48 Hrs...
...ChaseV challenges are rash...
...Lund berg completes his analysis to show how big interests still remain dominant thrmigh the use of legal devices and controls...
...IT'S a hard job unwinding a spool of yarn after * a cat has had a good rrerf-'hemr's play at it...
...We can, thus, take as true the statement issued in Toulon by Vice-Admiral Marquis, broadcast by the German-controlled Vichy radio, that "because of the difficulties encountered over the resumption of work at the arsenal and the disorders which resulted, the gates of the arsenal will be closed until further notice...
...First, there is his so-called new middle-class...
...Norris Speaks at FreedomHouseRally Senator George W. Norris of Nebraska will make his farewell address to the nation before leaving the United States Senate, at a Freedom House rally on the eve of the Pearl Harbor anniversary, Sunday night, December 6. in Carnegie Hall, New York City...
...is brushed aside...
...Chase, have displaced Capitalism...
...It is not by chance that its general manager, W. Zangen, is also the leader of the national group industry...
...Neumann raises one more interesting point: "This monopolistic structure is not maintained solely by fhe general managers (Ge*f-raldirektoren) but just as much by capitalists...
...On November 24th and 25th...
...The term is now meaningless...
...Mr Chase's remarks ha* much greater validity wh...
...What I gather from Mr...
...will want to win it...
...when Capitalism goes the socialist philosophy goes with it...
...Seine called "Date...
...Ernest Hoor, a leading Haneburg spokesman, an attempt is to be made to build Otto up in the press as "a libera-- tor" and a genuine "democrat...
...Capitalism and capitalists are empty terms...
...The program will also feature eyewitness accounts of "The Infamy of the Axis" by leading American foreign correspondents including William Shirer, Larry LeSeuer, Otto Tolischus, Cecil Brown, John Hersey and Frances Long...
...Democratic representatives of seven nations formerly under the nie of the Hapsburgs—Austria, Czechoslovakia, Hungary, Rumania, Poland, Italy and Yugoslavia—have issued a statement, which, was wired to Cordell Hull and Henry L. Stimson, strongly warning against any "compromise with Hapsburg": "All nations who were ever under the Hapsburg domination reject categorically the restoration of the Hapsburg throne...
...I use these facts against Mr...
...The mosA grievous situation was India and the peak of the crisis last month...
...Are they any less capitalist in their ideology...
...Hinrichs States, and he is in a position to know, that there is not a single War industry in the nation operating on less than a 48-hour week, with the excep-' tion of plants that are on a continuous process operation of four 40-hour shifts a week...
...Teagle of Standard Oil...
...The Mannesmann combine is well known to all students of international relations...
...I've found, have * usually been deceptively clear...
...See the U. S. Census of occupations for fifty years, says...
...The weapon Mr...
...Why this should be disturbing to socialist analysis is not made clear The jomt-stock company, which was as familiar to Adam Smith a? to Marx, already divorced ownership from management...
...32 East 51st Street...
...LaborDept.Says In the recent flood of anti-labor propaganda, statistics have been distorted and facts replaced by convenient fictions...
...I would enter the perhaps curious distinction that a? an economic system Germany'* wst economy may not be capitalism by economif definition, classical or Marxian, yet socit&y it might still be...
...Elizabeth Dilling to raise defense funds, was one of the pallbearers at the funeral of the anti-Poll Tax Bill...
...Opinion, however, of British reporters in- this country is that suppression is not deliberate...
...I reserve answer Parenthetically...
...In socialist analysis of capitalism, the "class-struggle" theory is systematically dependent on the analysis of "property...
...Sloan and Knudsen »f General Motors, and Young of General tJlectri* were'are managers...
...In Germany today, in this new social economy, there is hardly any "mediator" at all between the workers and the ruling class of party officials, state bureaucrats, and industrialists...
...One tendency, noted by the TN EC...
...And Dr...
...That all the anti-Hapsburg agitation was not a mere tempest in the tea-pot was indicated this week by the political counter-offensive of the monarchist Austrian National Committee...
...have fought and died...
...The Berle-Means distinction of ownership and control, according to Chase, has shown it, and the Nazi state shows it...
...Chase, the class struggle like property, also a fundamental concept of the socialist-liberals, and Tories) is to be thrown on the ash-heap because a strong Middle-Group is arising which cares as little for big-business and the bankers as it does for Labor leaders...
...or_ are they only or also genuine private capitalists...
...therefore, is a serious and dangerous handicap to the war effort...
...Parenthetically, ? fully rationalized war economy—eyen a capitalist economy—may solve the "contradiction" by creating full employment via subordinating the profit motive and restricted production to the "use" dictates of the war...
...A. Ford Hinrichs, acting commissioner of the Bureau of Labor Statistics, has exposed some of anti-labor's favorite myths...
...Who can believe that Europe will revolt against the Nazis and fascists only to fall under Mussolini's old accomplices, or under the 'fatherly' Hapsburgs whose name is for us synonymous with gallows...
...Last Spring Brendan Bracken, British Minister of Information, announced in the House of Commons that the British censorship which formerly concerned itself with military information would be extended to cover anything...
...In the face of the "in^flta-bility" of correctivist planning, we have to •WJ*' our thinking about the role of property and **tl^] ship, class alignments, democratic controls...
...The decay of Capitalism, according to the Chase notion, is the end of Socialism: Fascism and Nazism, says Mr...
...New devices such ·· endowed institutions, i.e...
Vol. 25 • December 1942 • No. 49