Indianapolis Times, Volume 45, Number 239, Indianapolis, Marion County, 14 February 1934 — Page 10

PAGE 10

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WBXWMT FTB 14 tin* GUARD AIR COSTS TT aometlmes seems as If Uncle Sam couldn’t A touch airplanes without getting his Angers burned. During the war the old gentleman put a perfectly fabulous sum into construction of airplanes, and announced blandly that the sky of France presently would be darkened by the wings of innumerable American birdmen. The American birdmen did their stuff all right, but not in American planes. About all the country got to show for the expenditure was a headache and a feeling of dazed bewilderment. The story isn’t quite the same today, but once more It looks very much as if some slick city feller had sold Uncle Sam a part interest In the Brooklyn bridge, or something. Were reading about cagy gentlemen who ran investments of a few hundred dollars into many millions, aided bv fat government contracts; about certain companies which enjoyed proffts of 30 and 40 per cent on their sales to the government; about a weird tangle of subsidies and exclusive contracts which seem to have kept at least a favored few from knowing anything at all about the recent depression. It goes without saying, of course, that all this queer business needs to be investigated right up to the hilt. But even more important than Anding out who sold our uncle a gold brick is the job of discovering some way in which he can be sure of getting value received when he spends his money on airplanes. Fbr there is more to ail this than just the possibility of a big scandal to be aired. Directly or indirectly, the money the government spends on aviation is money spent to advance the national defense. If and when we go to war, our air Aeet will be vitally important to us: its size and efficiency well may spell the difference between victory and defeat. The country has been exceedingly liberal Jn providing for Its aerial defense, and the country is entitled to get what It has bargained for. The man who gyps the government on an airplane contract is not simply a swindler. He is undermining the national defense in a vital spot. That is why all this talk about funny business in connection with airplanes must ha\e a complete airing. DOLLARS ARE TALKING AS a rule emphasis is placed on ethical and social questions when labor unions are advocated instead of company unions. Dollars and cents, however, talk louder to most employers, and for that reason it is interesting to And that dollars and cents are talking, just now. on the side of labor unions. The Russell Sage Foundation has just made a studv of collective bargaining in Colorado coal mines. There the Rocky Mountain Fuel Company, owned by Josephine Roche, has one of th“ most liberal collective barge ining agreements ever signed with the United Mine Workers of America. There, also, the Colorado Fuel and Iron Company, owned by the Rockefellers. has fought for years to maintain its company union. Miss Roche's company, which gives miners an actual share in management, actually enlarged its share of the Colorado coal market during the depression. The men. working under agreement with her. brought about extraordinary’ savings, both in increased efficiency and in decreased labor turnover. In an emergency they loaned half their wages to the company. They helped sell the coal they had mined * Though 1932 was the worst year of the depression. the Rocky Mountain Fuel Company made greater mine operating profits that year than in any since the signing of the union agreement in 1928. The report shows that it “was able to keep in advance of competitors —evidence that purchasers approved a price policy which avoided, as far as possible, cuts below cost, while mamtaining a higher wage scale " The Rocky Mountain Fuel Company in 1932 gave its workers an average of 191 days work in the year while other mines in the state gave an average of 127 days, and it kept 63 per cent of its men on the pay roll the entire year. Few industrial leaders nowadays are . willing to adopt liberal and advanced labor policies at a financial loss, but perhaps when they study the Russell Sage report on Miss Roche's experiment they will follow her example for the sake of profit. The world moves forward in just that fashion. Most of our faltering steps toward civilization have been taken when someone found they really paid. YEAR AFTER THE FUNERAL JUST about a year ago. technocracy passed into temporary eclipse. Howard Scott muffed ms chance to snatch the messianic mantle from Father Coughlin at the fatal Hotel Pierre dinner. The bankers finally woke up to the fact that if they walked any farther into the jungle with the technocracy tiger they were likely to come back inside. Eminent journalistic spokesmen for the bankers, such as Simeon Strunskv and Walter Lippmann. penned eloquent and passionate obituarial notices. In spite of all this funeral unction, technocracy is not dead. Defying all the embalming Auid. caskets, death notices and headstones brought forth by plutocratic morticians, the real vital organism of technocracy is just as much alive today as it was at Thanksgiving time. 1932. when even Wall Street looked upon Howard Scott as a possible savior of their lystea of lottery and famine. Technocracy has remained alive, in spite of ail the efforts of the timid to bury it, because the facts which it presents embody the < t

most momentous and cogent considerations of our era. We can go on for a time trying to control a turbine age by tfte politico-economic method* of the ffall and ox-goad vintage. But we can not continue to do so forever. Walter Lippmann may get the plaudits and Scott the raspberrle* today. But Mr. Scott rather than Mr. Lippmann possesses the correct slant and is in search of the relevant facts. The longer we neglect to take .account of them in any new deal, the more certain and the more complete will be our collapse. It is fortunate,therefore, that in the last two r umbers of Common Sense we have two excellent articles on technocracy, one by Howard Scott and the other by Charles E. Calkins. Scott's article on the state of technocracy at the beginning of 1934 is an admirable and restrained summary of the technocratic movement. If he had read this, instead of rambling arogantly at the Pierre dinner, his speech might already rank with Lincoln’s Gettysburg address. Mr. Calkins deals more directly and specifically with the relationship of the facts presented by the technocrats to President Roosevelt's new deal. Mr. Calkins makes It perfectly clear that Mr. Roosevelt and his advisers either must attempt to resist any further inventions and mechanical advances—thus coming out for a static society—or they must reckon with the basic facts brought forth by the technocrats. Even if the new deal proves highly successful, we shall have to figure upon a permanent army of unemployed adults to the number from six to ten millions, assuming nothing more advanced than our present stage of mechanical development. Yet It is obvious to any person even passably informed that we are only in the infancy of the new age of power and automatic machinery. Even if we did no more than to put into immediate operation the technological improvements which already have been provided by the best engineers of the day, the results would be revolutionary. In his recent book on "The Power of Age,” Dr. Walter M. Polakov has estimated that the work now done by 25,000,000 workers in our factories could be done by 625.000 men. This means that approximately a million men, equipped with the latest machinery and power devices, could Carry on all of our manufacturing and mffiing industry in periods of economic prosperity. If so, this w'ould mean approximately 40,000,000 unemployed in our industrial life. One hesitates to contemplate what the facts would be if stated in the light of probable technological advances no more than a decade hence. Mr. Calkins makes clear the futility of any effort to resist mechanical advances and to preserve a static civilization: “It hardly is conceivable that capitalism can block progress any more than the barons of feudalism could halt the invention of machines which hastened their downfall, no matter what course the present government follows. President Roosevelt has no more divine power to forbid this tide of progress than King Canute had to stop the onrush of the ocean's tide. “Our nation is nearing the point where the rule of thumb by which politicians have told us what to do must be replaced by scientific management according to engineering principles. Power age methods of production must be used throughout all industry to insure every one a decent living, enough to eat. adequate housing, sufficient clothing. Trade and commerce, which interfere with this program, h?ve for their justification only the giving of profit to those fortunate enough to participate in it. The welfare of 120.000.000 persons is at stake.” Just how far the administration will come to terms with the facts presented by the technocrats is as yet uncertain. On the one hand, General Johnson seems inclined to resist further mechanical improvements.

ONE YEAR JUST a year ago today, two big Michigan banking groups, the First National and Guardian Detroit, failed to open their doors. Their collapse pulled down others from coast to coast. State after state declared a bank holiday. Some issued scrip. Oklahoma called out troops. It was the worst modern American bank crisis. By that fateful day of March 4 every state from Michigan to Delaware either had closed or restricted its banking facilities. The new President faced his first crisis. He met it by proclaiming a four-day bank moratorium and calling congress to pass emergency bank legislation. Then began the slow task of rebuilding the shaken structure. Today, out of 16,000 state and national banks, excluding mutual savings banks, about 1.600, or 10 per cent, remain closed or restricted. Out of thirty-three billions in deposits less than one billion dollars is tied up. The Reconstruction Finance Corporation has loaned the banks $1,480,000,000, of which $710.000.000 has not been repaid: and has authorized purchase of capital notes and stock for upwards of $1,000,000,000. The banking and investment businesses have been separated. And. for the first time, the savings of small depositors are being insured on a nation-wide scale. The Federal Deposit Insurance Corporation reports that 13,431 banks, including 873 state banks affiliated with the federal reserve system and 7.386 state nonaffiliates, have come under the new fund. This means that 54,000.000 accounts in these banks are insured up to $2,500. Only 141. or 1 per cent, of those applying were refused membership. Next July, unless the law is changed, the guarantee fully will cover deposits up to SIO,OOO. Our banking system's weakness, of course, is still its dual nature. We have two systems, state and national, where one should exist. The deposit insurance law will tend to remedy part of this weakness by providing that all insured banks must come into the federal reserve system by July 1. 1936. Besides insuring deposits, to insure sound and honest banking unification, stricter regulation and better bankers are needed. But tremendous reforms have been made. The fact that we are so much better off today than a year ago best practical reason for continued support of the new deal. The contrast between then and now is the most effective answer to those who now contend that natural causes" would have brought us out of it. Verree Teasdale. famous actress, gave up an attractive London engagement to be near Adolphe Menjou, thus proving he is a successful lover off the screen as well as on. '2*

LEGALIZING SPEAKEASIES ONE of the odd angles of prohibition repeal came to light the other day in Michigan. when It was announced that state licenses to sell liquor by the glass would be given to a number of persons who had operI ated “blind pigs” in the prohibition era. These licenses, it was said, would go to men who had run “clean, orderly places” before re- ! peal and who had not been involved in rackets. In one way, this is fair enough. In another, it is strangely illogical. There were speakeasies and speakeasies in the old days, of course. Some fearful dives and some tried to be more or less respectable. But all of them were units in a great illegal network, and even the best of them had at least a small share in supporting those monster underworld rings that mocked at the law. Trying to figure out now which ones are “deserving cases” is surely about as perplexing and contradictory an assignment as any public official could tackle. A TEST FOR DIRIGIBLES IF the navy department’s assertion that it is prepared to co-operate with private industry in establishing a commercial, transoceanic dirigible line bears fruit, the lighter-than-air craft soon will get anew test of its usefulness and its practicality. There was a time, not man*; years ago, when early establishment of regular service by dirigibles between the United States and Europe seemed certain. Then the Akron crashed, and the dream dissolved. Those giant craft that had looked so safe and powerful took on a fragile and dangerous appearance. Just as the early hopes were too optimistic, so did the reaction go too far. The dirigible isn’t as foolproof as w*e thought a few years ago; but it isn’t as dangerous as the Akron disaster led some of us to think, either. Establishment of a service such as the navy suggests would give us a chance to see just how American-made dirigibles w’ould act on regular schedules—and, for that reason, might be an experiment worth making.

Liberal Viewpoint Bv DR. HARRY ELMER BARNESasssa CONGRESSMAN JAMES W. BECK, the irrepressible Phildelphia publicist, is tearing up and down the country at his old job of saving the Constitution. Speaking at a meeting of the New York State Bar Association, he denounced the doctrine recently set forth by Chief Justice Charles E. Hughes in the Minnesota mortgage case, to the effect that a national emergency can constitute the basis for a modification of conventional judicial rulings. He assailed as a comparable menace Dean Clark’s doctrine of a “paramount social need.” "Paramount social need is but a euphemistic phrasing of the word emergency. The doctrine of emergency as a justification for federal usurpation was once characterized by the supreme court as the most pernicious of constitutional heresies. There is no suggestion in the Constitution of any right to declare a moratorium on constitutional provisions simply because of an emergency.” n tt n AS evidence of the fact that we are a country characterized by wide differences of opinion, I have just received a communication from the Constitutional Convention Club of New York City demanding not merely the stretching of the Constitution to meet an emergency, but the framing of anew Constitution to create anew social order. The club defends its position on the following grounds: “America’s economic system (agriculture, industry, banking) which has grown up under the present Constitution is dislocated and insecurity of livelihood has become a national nightmare. “A great and ever-growing army of workers, now approximately 25,000,000. is unemployed and hundreds of thousands are destitute in the midst of plenty. “Factories are idle while men and. women willing to work are forced to seek charity from agencies unable to meet even their most primitive requirements. "Granaries are filled to overflowing, but farmers suffer bankruptcy and worse while great numbers of industrial workers are hungry. "Tens of thousands of children are undernourished and the future health and stamina of the nation are being irreparably damaged. “Hundreds of thousands of our young men are exiles from homes where unemployment made them a burden, bumming the country, exposed to disease, criminality and irretrievable demoralization. “Armies of young people are graduating from our schools and colleges with no prospect of being absorbed into the economic system—pariahs in their own land and among their own people. “We can produce goods of all kinds in great abundance, but under the present lack of system we can not distribute the goods among the people, due to private ownership and control, competition and production for profit instead of for use. Profiteers are in the saddle; the people are forgotten. a a a “T~\EVELOPMENT of labor-saving machinery for the purpose of profit-making makes certain a permanent army of unemployed so large that no form of dole or insurance will be able to take care of it. “It is now obvious that no solution can be found short of social control of economic factors and this can not be accomplished without a basic change in the Constitution. The nation needs reorganizing in the light of the twentieth century. “A constitutional structure adequate to the America of the last decade of the eighteenth century is not adequate to the America of the fourth decade of the twentieth century. The tremendous social, industrial and scientific developments of the past 150 years put this fact above dispute. The conditions of the two eras are so different that only a psychological connection remains and even this is fast disappearing under the stress of economic depression. "The convention of 1787 was called to overcome chaotic conditions in government, trade and finance that threatened the new nation’s life, and it worked out anew co-ordination of powers and functions. Conditions today demand the same kind of action.” Those who. like Congressman Black are so much alarmed lest the Constitution be temporarily stretched or suspended will do well to realize that the* alternative is not saving the Constitution intact, but losing it altogether. And there are some who even think it more impor:ant to save the country than to save the Constitution. Otto Kahn says there is a potential grand opera star in every home, so now all the young hopefuls probably will insist on singing in the bathtub. When the cockroach tied up traffic in Waukegon. 111., by crawling ! nto a signal box, lots of people might have said it was just another case of a bug gumming up traffic by making the wrong turn. Those air mail lines that got the fat contracts may have been trying to change the old proverb to read, “It takes money to make the mail go.”

THE INDIANAPOLIS TIMES

t r . y ■ • •'*■ •*- •* • • - ** ••*'*** , * V ** % ' ’ i

The Message Center

(Times readers are invited to express their views in these columns. Make pour letters short, so all can have a chance. Limit them to 950 words or les*; a a a EXPRESSES VIEWS ON COMPANY UNIONS. By a Times’ Old Timer Following is an exact copy of my letter to our representatives in Washington, Honorable Louis Ludlow. This letter is an outgrowth of many many greviences due to the activities of company unions in our city. You may do as you please about this letter, but it would do me a lot of good to see it in print. “Dear Mr. Ludlow: “ ‘Company unions’ is the subject of my message to you. "I notice in my local paper that the American Federation of Labor is trying to get legislation through congress designed to eliminate tnis evil. To my mind company unions are the greatest enemies the NRA has to fight in this community and doubtlessly many others. “I believe the NRA is designed to remedy unemployment. Now when company unions permit their workers to work from ten to twelve hours a day, and from sixty to seventy hours a week, you readily can see that this keeps many good family heads out in the cold and without any income. “When company union officials are permitted to work in the employment offices of our large plants it is easy to see the resulting chances for discrimination against those who have no company union connections or those who belong to a good sound union affiliated with our trusted and respected American Federation of Labor. “I hope you will go on record in answer to this letter and in my local paper as having voted for any good legislation designed to condemn and forever eliminate this evil. “Trusting I will hear from you at an early date in one of the above mentioned methods. a a a URGES SINGING OF “STAR-SPANGLED BANNER” Bv Patriot. Asa woman deeply interested in school children and also a member of a patriotic society, I am wondering why our schools don’t oftener sing the national emblem, "StarSpangled Banner?” It took years of work by the D. A. R„ Colonial Dames and other patriotic groups to get congress to declare this song our national emblem and it is surprising that it should be so ignored. It is said that this song is hard to sing, but I was in Paris once on Bastile day when thousands of French men, women and children sang their “Marsellaise,” which is much harder to sing. “America," the song schools often use, is set to the English national song, and I know a wpman who always calls our “America” “God Save the King.” “America" is very beautiful, but it lacks the historic patriotic thrill of the “Star-Spangled Banner.” TAKES OFF*HIS HAT TO THE PRESIDENT Bv Edward Price. I have been a reader of The Times a long time and I am of the opinion and positively know you have as fine a set of editors at heart ! for the interest taken in the laboring class of people show’s for it- j self. There also are some more men in Washington who have the j same kind of thoughts for the la-. boring class of people. Since I was employed one week before last Christmas at the first steady job in three years, why not whoop her up? Hurrah for my sl2 a week. If you care to print this, O. K. If not, it is off my mind and I had to get it - unloaded on someone, why not you? Who possesses these

A. W. O. L.

Dollars, Men and Monkeys

By H. L. Danforth. Once upon a time, a long, long time ago, there lived together in a house a man and a monkey. Now* the nature of this story is that of a riddle, and at its end the question to be answered will be, “Which was the man and which was the monkey?” So we will refer to these parties as No. 1 and No 2 with no reference as to which was man and which was monkey. Now* the nature of No. 1 and No. 2 was such that they both required water to exist. In the backyard was a well and a pump, and it was the custom of No. 1 and No. 2 to pump the water necessary for their daily requirements and carry it to the house in buckets. One day they agreed upon anew scheme of securing water. No. 1 was to live in the basement of the house and No. 2 was to live on the first floor. From the pump in the yard they ran a pipe to an air-pressure tank in the basement, and connected this tank with a faucet on the first floor. No. 2 was to operate the water pump for all their reequirements and No. 1 was to operate the air pump. When No. 2 did not wish to carry water from the pump, he could use water from the faucet provided he paid back to No. 1 in the basement the full amount that he borrowed thus from the faucet

qualities better than our President? in my estimation he is a man w r ho is a good judge of human nature and believes strongly in fair play and wants every one to have an equal chance. With his high degree of intelligence and his kind and generous nature, in all his dealings with the people, he has brought about a deep sincerity and sense of fairness among w’orkingmen. He has show’n he is a natural leader, quick to overlook others’ faults, but as yet has been perfection himself. We realize he is a man of few* words, but his work speaks for itself. We are eager for his success, but realize all things take time. But, with a man at the helm who is a clear thinker and has such unusual and practical ideas, w*e realize our President has come. k a a GIVE THE CWA AND NRA CHANCE By Jack Williams. The Message Center son will be a pond of tears if you people don’t quit crying about your unjust feelings tow*ard the CWA. The people who are taking advantage of the CWA and the NRA

A Woman’s Viewpoint — By MRS. WALTER FFRGT SOV — ;

IT should not surprise us to hear that the Nazi regime in Germany finds the Christian Deity too tame for it and hence is asking the people to return to old gods. Thor and Odin are better suited to Its precent concepts of life than any Gentle Carpenter. When we seet th fact down in plain, blunt words it sounds rather appalling. But the fact itself is not strange because, although we say that God made man His image, the truth includes something more. Man has always and ever made his gods like unto himself. The kind man, you will find, always worships a kind god, w*hile one who is hard and cruel invarabiy bows the knee to a ?e and who is ruthless and merciless a§ he. Our Kingdom of Heaven doe sindeed dwell within us, as the Scriptures tell, and each individual carries the stamp of his god upon him. nan WE should regard as rather admirable, then, the Gerv

[I wholly disapprove of what you say and will 1 defend to the death your right to say it — Voltaire. J

plus an agreed amount for interest. No. 1 w’ould live upon the Interest he thus received. One condition prevailed over which neither had any control, namely, that as fast and as far as No. 2 became dependent upon the use of the faucet, he was cut off to just that extent from use of the pump. Now there came a day when No. 2 was trying to use the faucet for 100 per cent of his water supply. And shortly thereafter a passerby found both the man and the monkey dead in the house for lack of water. Now the question is, “Which was the man, and which was the monkey?” And the answer is that both were monkeys for not seeing through their scheme before they both died trying to make it work. And the moral is that there are lots of monkeys today trying to live under a credit and debt monetary system when the credit dollars of that system already exceed 90 per cent of the total dollars. y Well, that is the end of my story. But just remember that I claim that when 100 per cent of our dollars are credit dollars, not a dollar can move, and further that before this theoretical condition can be obtained the flower of our civilization will be wiped out in war and riot and bloodshed.

eventually will get what they deserve. If I had the space to write I could give you a wonderful story about a man in this city who is very smart, who has for the last few years sponged his good living from the public. He will be found out sometime and the public will see what fools they have been to support him. This man has gone so far as to get the public to erect a building in his name, later he lost or sold it, and then came back and was smart enough to get it again. These things always have and always will happen in life. We, as a public, are to blame partly for this depression by buying cheap merchandise, working overtime, with straight hourly wages. In 1928 I helped redesign some articles which put people out of employment. By redesigning we eliminated a lot of material, yet the finished product had the same appearance. The NRA, I think, is a very good idea toward helping end this depression, but I feel that It should have had some clauses in it requiring industries to use more material in designing articles. Then

manic repudiation of those ideals which have always been associated with the Christian creeds. At least these men do not seek to deceive themselves and the world. Other Christian nations did the same thing, in spirit, when, in 1914, they incited ther clergymen to chant the battle cry and to stir up the multitudes for war and destruction—done, they said, for the cause of God and Rightenousness. We made our plea then in the name of Jesus. The Nazis, being more honest, use Thor the Thunder-Bearer, the ruthless, for their deity. Thus the world knows what to expect. With Hitlerism running wild, Germany is muzzling all individual freedom. She stands before us in her true colors, openly committed to the policies that are the opposite of Christian. Yes, it seems good that men should confess their gods. Where Thor rules, let Thor be acclaimed.

FEB. 14, 1934

they would be creating a demand for more raw products and finished products. By doing this they would be putting probably twice as many people back to work, also doing away with cheap merchandise. People who do not understand design and construction will think it impossible. If you think that impossible, see if you can solve this problem for yourself: I am unemployed. Put an unemployed to work (no money involve) the unemployed makes $1.50 to $2 a day. a a a HERE’S A READER'S ADVICE ON MONEY By T. M. Squawky. Indiana's bad boy, Johnny Dillinger, is very bad, indeed, but, at that, he and his gang seem to be the only ones who have tried to think of any way to make the bankers behave. I think the gangsters' methods of reproving the bankers are crude and ineffective. The best way to make the bankers behave either is to keep your money in your pocket or spend it for a house, a barn, an auto, a trip too the south seas. (Libel deleted ). I say keep your money in your pocket. If someone picks your pocket, just say he needed the money worse than the bankers do, and 111 go ahead and work. (Libel deleted). I mean keep your money in your pocket if you have any money. Those promises to pay gold are net money. They are just pieces of paper, worthless pieces of paper with nothing back of them, if one sued the government, they could get out of it smoothly. Johnny is,pretty bad. but j he hasn’t put out any promises to pay gold and then repudiated the j promises. The people have lots of money, lots of worthless pieces of paper, and a little real silver. Nothing ever will be done with tha ones responsible for printing money, j paper money, more than there was j gold to pay with. Nothing ever will jbe done with the government for ! making the paper worthless. (Libel deleted.) a a a CWA WORKER OWNS GROCERY, IS CHARGE Bv a Timr* Reader and Veteran. I see by The Times that you are making a detailed investigation of the CWA workers. There is one case I think should be investigated. It concerns a grocery store yhich stays open all hours, on Sundays and holidays, and does not display the NRA sign. j * This owner has no family, Just he and his wife. He has work on a CWA project. While he works his wife runs the store and on his day3 off and in evenings he takes charge, I think he should let someone with a family have his place. Stars BY POLLY LOIS NORTON Stars, I know what you are: You are the trappings of that soft-clothed Ethiopian, Noght. Yon are the sin-links of her headdress Holding down her dusky veil; You are the tinkling anklets, The glittering bangles; You are the jeweled girdle from hangs Her gossamer garment; You are the breast-pi at<- th.it presses close Her ebony bosom; You are the golden phial from which she spills The cloying essences of cassia and You are the rings upon her dancing toes: The cymbals on her finegers, clinking In the dance;; You are the gauds that to her many lovers Make her more fair and more derable.