Indianapolis Times, Volume 44, Number 66, Indianapolis, Marion County, 27 July 1932 — Page 2

PAGE 2

HUGE U. S. INVESTMENT MAY MEAN GOVERNMENT IS IN NATION’S BUSINESS TO STAY Agriculture, Railroads and Other Enterprises Never May Be Able to Pay Back Money They Have Loaned. ANNUAL INTEREST IS NOW $306,580,608 One-Half of One Per Cent of Country’s Entire Income Is Found Necessary to Pay Four Per Cent Yearly Return. , BY MORRIS HE HAVEN TRACY I'nilei Prpt Staff Correspendent fCwvrieht. 1932. bv United Press) WASHINGTON, July 27.—1 t will take one half of 1 per cent of the entire national income to pay the government 4 per cent interest on the $7,664,515,201.01 it has invested, or has potentially available for investment, in American business. That means that 5 cents out of every $lO received by • every man, woman, child, business, or corporation in the I nited States, will go for interest to the new, silent partner in American enterprise. Out of every $2,500 income, $12.50 "will go for such interest payments. The citizen probably never will realize this, for the payment will not be made in taxes. The government, through loans to agriculture, to business through the Reconstruction .Finance Corporation and through other channels, has taken its interest in business as a lender of money, not as a stockholder.

But the interest has to be paid, and is paid indirectly out of the national income—just as interest is paid to J. P. Morgan and Company on the bonds of American industry that it holds. A survey of the United Press has shown that the government, since 191(5, when it departed from its traditional policy of keeping out of business with the launching of the United Shipping bqard, has loaned or invested in American business $3,096,329,687.01. Through the Reconstruction Finance Corporation, the liome loan banks and other agencies it is ready to invest a potential $4,568,185,514 additional. That would make an aggregate investment of $7,664,515,201.,01. One Half of One Per Cent To pay interest at 4 per cent on such a sum will require $306,580,- j <508.04 annually. The national in- j come, according to the department of eommercf, for the year 1930, was $60,000,000,000. The $306,580,608.04 required for a 4 per cent return on the government's share in American business is one half of 1 per cent of that sum. Perhaps the $1,818,841,200 mortgage the government has on agriculture can he reduced to terms more easily understood. In financing agriculture the government’s investment stands like this: Outstanding loans to farmers (exclusive of farm mortgages)—s96,528,200. Loans for farmers co-operatives (farm board) —$170,000,000. Loans on farm mortgages (farm loan board) —$1,156,707,000. Intermediate credit bank loans (farm credits)—sllo,6o6,ooo. Invested in grain and cotton stabilization (farm board)—s3ls,ooo,ooo. T0ta1—51,848,841,200. That sum is equal to 6 per cent of the aggregate value of all the j farm land in the entire United ; States. The department of agricul- j ture estimates that the farmer is in ] debt to an aggregate of $9,468,526,- i 000. Fifth of Loan Business On the basis of that figure, roughly states, the government holds one-fifth of the entire loan business j of the agricultural industry. A glance at what it will require to maintain this investment of the government in agriculture, may be j even more revealing. If the government is to get 4 per ; cent, interest on its investment, it will require $73,953,648 out of the nation’s farm income to pay it. The aggregate income of agriculture, including the live stock industry and the income from forest pro- j ducts of all kind, in 1929, (the : latest department of agriculture figures available), was $10,146,720,000, which means that it will take threequarters of 1 per cent of the total cash income of agriculture, livestock ! and forest product industries to pay the bill. Beans, Peanuts Can Do It Stated differently, it means that out of every $2,500 of agricultural or allied cash income. $18.75 will go directly or indirectly toward making that interest payment. If the entire bean crop of the United States were turned over to pay the interest, it would fall about $4,000,000 short. The entire peanut crop would be thrown in and would Just about make up the difference. If paid in wool that interest bill due the government would take nearly the entire crop. or. if paid in hogs, it would require, every tenth hog raised each year. Even though it is spread over the entire agricultural industry the hog raiser’s contribution to his silent, financing partner comes to $9,669.270. That is equivalent to the hog raiser contributing one out of each 133 of his hogs to this purpose. The government in all of this financing of business, specifies from time to time that it is a temporary measure, designed to relieve a temporary situation. The-money all is to be paid back and the partnership liquidated. Where Will We F.nd? But the sums involved are large. Agriculture, the railroads, many other enterprises are not yielding much profit from which borrowed funds can be paid back at present. Many believe the prospects for some of these—notably the railroads—may not be bright. Not every one is convinced that repayment of all this money is to be expected. To what that will lead is an intriguing question—not to be answered here. In surveying the government's

plunge into the field of business, many projects, involving hundreds of millions of dollars, have been omitted because of possible question as to their status as purely business operations. These include the Panama canal, the vast sums spent for rivers and harbors, the Mississippi barge lines, the Alaskan railroad and Alaskan cable, the army transport service, the Panama railroad, and other like ; projects which may be of a business nature, but also are classed as nai tional%iefense. Study Can Be Endless • The carrying out of the thirty great reclamation projects in the west including the Hoover dam, Roosevelt dam and the projected Columbia basin project likewise have not been considered. They represent a tremendous business activity of the government, but also can be considered as non-com-j petitive with private business and in a field private business would not,, or could not fill. Other, perhaps less striking government activities come in the same category. The series also has excluded the operations of the federal reserve board, through which the* government supervises thp banking stricture; thp joint land banks; the many aids to business and industry embodied in the departments’ of commerce and of agriculture; the supervision of business through such regulating bodies as the interstate comme'cp commission, the federal powpr commission, the federal trade commission, and the radio commission. A study of such activities would be almost endless. It would involve regulation of trading in grain futures through the grain futures commission, the administering of payment of compensation to injured longshoremen through the federal employes compensation commission, and dozens of other offices down to those of the national screw thread ; commission which says what shall be the gauge, pitch and depth of | threads on nuts, bolts and screws. CENTURY BUILDING T 0 SOLVE CAR PROBLEM Basement Parking to Be Available to Tenants Sept. 1. Downtown parking problems for tenants of the Century building, at j 36 'South Pennsylvania street, will |be solved, about Sept. 1, when basement automobile parking will become available. The parking convenience wfill result from extensive improvements on the building, according to Dwight A. Murphy, Century Building Cor- : poration president. Improvement will include reconstruction of the third, fourth fifth and sixth floors and installation of new elevators. An automatic sprinki ler and new heating and ventilating systems will be put in the garage. Judge Bans Boardwalk Railbirds 1 By I nitPd Press CONEY ISLAND. L. 1.. July 27. Sixteen raiibirds were arraigned on Ia charge of ‘ sitting on the rail of I the Boardwalk” illegally. Magis- | trate Malbin warned of a fine “next i time.” saying "only birds are alj lowed to perch on that railing.”

tem'speeialtting in hmg distance travel. All thru expresses, porter ser- "■ x ice anil free pillows. Finest driver* I Lowest Fares-Save I to most points in IT.S. or t'anada. I _. i COLUMBUS M.7S— ST. LOUIS $7.50 I tto r 12 00 PNILA'PHIA 24 00 I * I ULTIMO 21.40 LOS ANOELES 85.70 I AU EXPENSE TOURS to WASHINGTON 537 NEW YORK **7 ■ l’hone* RILEY 9666 And 2255. I UNION BUS STATION ’! T2SWJAMKETB^| CK^rl^RNrifißiS

Esthonian Tomboy Hopes to Span Ocean for New Thrill

Bv Timm gprrinl YORK, July 27.—1 t took a World war and a revolution to get Elvy Kalep the thing she wanted most in the world—an air pilot’s license. The girlish Esthonian flier, who is here preparing for a trans-Atlantic flight to Athens in August with, Roger Q. Williams as co-pilot of her plane, said today that she still might have been on terra firma in her native land if the demolition of her home had not resulted in sending her to Germany to live, the Republic of Esthonia emerged from the chaos of war. “I always *was a tomboy, ’’ said Miss Kaiep in her perfect British governess English. “I have hated dolls and loved to build things that broke up my mother’s furniture, and how I longed to see the lands I studied in my geography? Well, I have. All but Australia, and next month I shall have a good look at the Atlantic ocean, too, cn route to Greece. “I love adventurous sports. When I took to the air in Germany I knew that there never would be such a thrill as piloting my own plane. “So I learned to, very secretly, and when I returned to my Esthonian home, less than a day away from Petrograd, I was eligible for a pilot’s license, and they gave It to me, the first civil license issued in the republic. It is still the only one issued to a woman.” n e tt ■jfc/TISS KALEP long nutured a hope of making a solo transAtlantffc flight, she said, but she has handed the honor forever to her friend Amelia Earhart, and will be perfectly contented with

Singing Ghost Posse Fails to Capture Musical Spook in Convict Cemetery.

By United Press JOLIET, 111., July 27.—The musically inclined ghost with a dismal baritone voice disappointed Sheriff Oliver Flint and sevent-y-five possemen who waited in a convict graveyard Tuesday night. And Sheriff Flint, sleepy from his long vigil, was more than ever convinced that the neighbors’ stories about a white-shrouded figure that wanders among the graves singing "Rock of Ages” are a lot of “silly notions.” Folks that live near the old burying ground of prisoners from Illinois state penitentiary were not so sure it was silly. “It's just the wind moaning through the trees on the hilltop,” said Sheriff Flint, “the wind and the shadow's.” But Anthony Grohar and George Perlnar who live nCafßv felt' .differently.. “I’ve heard the ghost,” said Grohar, “I heard it singing “Rock of Ages” and “Onward Christian Soldiers.” Perinar agreed.

HATS * Cleaned and Rebloeked A LADIES’ felts a a SPECIALTY W Hoosier Hatter* f 34 Kentucky ATenue

Very Low Round-Trip Fares CHICAGO Every Friday and Saturday Good returning until Monday night. SCOO Good in A rr J Coaches Only $""730 Good in § ’ Pullman Cars Next Sunday ST. LOUIS .... $4.00 Learp 12:35 a. m. 2:45 a. m. or 8:10 a. m. Return on anv train same day. TERRE HAUTE . . . $1.50 Leave 8:10 a. m. Return on any train same day. ____________ Ask About Low Round-Trip Week-End Fares Good in Pullman cars and coaches. BIG FOUR ROUTE Looks and Feels 100% Bettei

Mrs. William Skean, 739 Burns St., Cincinnati, 0., asked her advice on how to reduce. He recommended the French Lick method. “I now' look and feel 100 per cent better,” writes Mrs. Skean. Let the French £,ick plan of food selection and moderate exercise help you to win back slender beauty and health. Avoid sluggishness. Fight fatty tissues caused by a sluggish system. Take a little French Lick Salts each morning before

breakfast. It flushes away the stagnant body wastes. French Lick Salts is a blend of the same restorative salines found in the renowned waters of French Lick Springs. It is more than a laxative. It’s a systemic regulator that benefits young and old. Its restorative salines stimulate liver and gall bladder activities. Keep “regular"— take French Lfck Salts at east once each Aek. A* pleasant-tasting i* a fountain beverage. Today, at year irugjUt'*, a generous bottle. Me, .

I v'-V 1 1 \

making a distance record, if she has good luCk. ' ' There are no fast planes for women to experiment with in Europe, which is why she has been doing her speed flying in this country. She is familiar with her WrightBellanca plane now, and is waiting only for proper weather in August to test her ability with it. Miss Kalep is a very feminine young petson, with a flair for smart clothes. She jumbles anedotes of childish escapades, autogiro excursions, visits to Antoine's atelier in Paris, and extremely amiable comments on other fliers’ feats with naive con-

% THE OTHER THREE LEADING BRANDS TO THIS SCIENTIFIC TEST OF CIGARETTE QUALITY very proud of your cigarettes. You have a right to he. T our c gar t '< sjdafl Each of you, quite naturally, thinks his t ; " cigarette is best. You say: “MY cigarette And so on. . jflY, I ; Mi, ' ' But don’t you think you might give Mr. and Mrs. John K. Smoker a little proof? any of the great technical universities test f Jpßlpr ~ J|jKS" heat content . . . using the Calorimeter W 9^ method approved by scientists throughout the world. % Coolness, as you veterans know, is a clue to WW cigarette quality. It indicates the choicest, W W&gM &WM purest tobacco. So how about a little wjßjßßi %$ . . Maybe you suspect that we know OLD _~ T r, Ml • Xtr J >* J *4. TU' . 'Wsmsiamk: ■&£&&*** This is to certify that in 75 repeated cool tests made of the 4 GOLD vull Win. TV e don t den) it. This leading cigarette brands ... measuring the heat content of “cool” test* of 4 leading brands has already each cigarette in B.T. U./lb. with the Oxygen Bomb CaloriI , ~ r JAIn rm n meter, it was shown that: been made /5 times . . . and OLD GOLD won consistently. • Old Gold averages 112 B.T .U’s. Cooler than Brand X Old Man Science plays no favorites. It’s * Old Gold averages 156 &T.U’s. Cooler than Brand Z merit that counts With him. He has found Tests of the heat of the smoke Showed OM Gold smoke definitely cooler OLD GOLD just as he tells the purity of (Signets) new york testing laboratories NOTE: These tests were checked and verified hy the scientists of two leading universities. Their signed reports will be sent on application to P. Loriilard NOT A COUGH IN A CARLOAD Company. Inc., 119 WMt 44th Street. New York Uty. e

jHHgf .St. ’< sjjj ■ * J

The ’'French Llcfc •aits Girl”

THE INDIANAPOLIS TIMES

Elvy Kalep

fidence about the feats she plans for herself. tt n u BETWEEN flying hours at Floyd Benqett field she gets a kick out of egging taxicab drivers to take chances in traffic, with a particular taste for weaving in and out through the elevated pillars, she admitted. She rather would do the driving herself, however, and intends to do it in her own family, whether she is in the air or on the earth. Miss Kajep has been married since July 5 to William Miller, a broker. Being a bride will not interfere at all with her plans for the trans-Atlantic flight, she said.

CANADA STEPS IN TO SMOOTH IRISH DISPUTE Premier Bennett Offers to Make Peace for England; Rivals Accept. BY CHARLES M’CANN , United Press Staff Correspondent OTTAWA, Ontario, July 27. Prime Minister R. B. Bennett of Canada, official hast to the British empire economic conference, has offered his good offices in the solution of the latest British-Irish dispute, andthev have been accepted, it was learned today. A minister of the Canadian government. acting under Bennett's secret instructions, has been selected as intermediary. The negotiators are J. H. Thomas. Dominion minister in the coalition Labor-Con-servative British cabinet, and Sean T. O’Kelley, chief 1 delegate of the Irish Free State. Bennett, a hard-boiled Canadian, whd is holding out for empire preferential treatment on wheal, when his own wheat men say they do not want it: who, in his late fifties, is a brilliant lawyer, portly like President Hoover, graying and virile, has stepped into an obvious breach. The British-Irish “crisis,” a symptom rather than a cause in the centuries of dispute between southern Ireland and England, arose just before the conference. It concerns the payment by Ireland to Britain after the post-war guerilla fighting of the so-called war, of $15,000,000 a year in installments for land acquired by the government in providing small farmers with allotments. The Irish government refused to pay, asserting that the land was Irish anyway and that the treaty had not been approved by the Irish people as opposed to the original free state government, with which Eamon de Valera now prime 'minister, refused to co-operate. Britain imposed special tariff | duties on Ireland in retaliations j Ireland responded with special * duties. They affect 92 per cent of !

I | Ireland's exports, which are to the | United Kingdom, and many British exports to Ireland. Argentina to Remain Neutral jßy l hi ted /’ref* BUENOS AIRES, July 27—Re- | ports that Argentina planned to

OPEN DAY AND NIGHT rsssr'cft I I With Every M B Cr Grease* WJ | . ;i Eqa'P" 1 nt Leave Your Car Here £or Service When Going to the Theater CONSUMERS TIRE and SERVICE CO., Inc. 314 N. DELAWARE WE NEVER CLOSE ■il IUWHHIMPWBMBB—BW——M—me

.JULY 27. 1932

r ] form an alienee with Brazil and , Chile to prevent the threat of war i between Bolivia and Paraguay were ! denied officially today. It was said | officially that Argentina would ob- | serve strict neutrality.