Indianapolis Times, Volume 46, Number 213, Indianapolis, Marion County, 15 January 1935 — Page 2

PAGE 2

U. S. HOLDERS OF GOLD BONDS DEMAND $1.69 Decision of Supreme Court May Affect Almost Every Citizen. Thl. ! thf rond of a wrir. of thro* dUpatcbe* to simplify the issues Involved in the (old clause cases arcued before the Supreme Court last week. The eases. thou(h highly complicated, have an important bearing on the Government's monetary policy and on debtor* and creditors everywhere. BY JOHN A. REICHMAXN Cnited Press Staff Correspondent WASHINGTON. Jan. 15.—The decision of the Supreme Court in the five gold clause cases now under advisement may affect any one who owes a dollar, or who has a dollar coming to him in payment. Therefore the issue becomes one not only between the gold bond holders, and gold bond debtors but between all debtors and all creditors. A third interested party is the Administration which, through its monetary policy, has sought to lighten the burden of debt. Three suits entertained by the court are brought against two railroad companies by gold bond holders who claim they are entitled to $1.69 of currency for every dollar on the face of the bond. Another suitor demands the Government meet Liberty bonds on the same basis and another that gold certificates be so honored. The figure is arrived at on the basis of the present gold content of the dollar, 15 5-21 grains. Gold Favored Medium Gold, according to economists, became the favored medium of currency because of the fact that the available supply was permanent pnough to prevent its value from fluctuating, because it is not subject to corrosion and because a large monetary value of it can be stored in small space and easily transferred from p: int to point. Until the later part of last century, they say, there was not enough to serve this purpose. Large findings in the Klondike and in South Africa remedied this weakness and it tended to become the single standard for the measurement of currencies. Its stable value made it desirable for long-term lenders because of the certainty that, if they were repaid in gold, they would get back the full value of their debt. When the Government inaugurated its monetary policy it that the S 100.000.000,000 of the'e bonds was a menace. They were outlawed. Relied on Constitution Then by devaluing the dollar it was thought to lighten the burden Df those owing debts without seriously hurting the creditors. It also served to start what was considered the most easily controlled method of Inflation or, as some prefer to call It, “reflation.” Some gold bond holders, however, many of whom bought gold bonds during the threat of inflation, did so becau. they felt in that way they were insuring themselves against such an event. They did not take kindly to devaluation if it changed the letter of their contract. They relied on a constitutional provision that the Government shall not take private property without just compensation. “Just compensation,” they say, is ounce for ounce of the gold their contract calls for. The Constitution, though, also says that Congress may regulate the value of the currency. It was under this clause that the gold clause bonds were outlawed and made payable in any legal tender. This conflict, the power of Con-

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. dsM Negara

In a New Deal test of vital importance, Ralph F. Peo, above, vice president and general manager, heads the fight of the Houde Engineering Cos. of Buffalo, N. Y., in Buffalo Federal Court, against a charge of violating NRA section 7-A, in defying an order to deal with the United Automobile Workers’ Federal Union.

NON-PROFIT ACT CHANGE URGED Law Regulating No-Earn-ings Corporations Will Be Given Assembly. An act regulating non-profit corporations will be introduced in the | General Assembly within the next ten days. Joseph O. Hoff nan, deputy Secretary of State, announced j today. Mr. Hoffman pointed out that the need for this new act was very evident, since the present not-for-profit corporation act, adopted in 1889, is so loose and broad that it has been used as a medium for racketeering and blackmailing by “wild cat” promoters. ’ The proposed act,” he said, “will make all non-profit corporations file extensive reports in the Department of State office, so that this department or any other state administrative office can ascertain the source of revenue of these corporations, and can find out if they are really operating on a no-profit basis. He pointed out that this proposed measure will cover the sale of assets of these companies and will i restrict their field of activities. I gress to regulate currency, against the prohibition that forbade it to take property for public use without just compensation, is the conflict which must be decided by the court. This leads to the question of “what is just compensation?” The bondholders say it is $1.69 of currency or 25.8 grains of gold ninetenths fine. Others contend that it may be any figure, noting: that remote factors may enter into this question. For a buyer of gold bonds in 1929 who paid for tl>em in paper dollars will be receiving more, on j the basis of present prices of what j he buys, if he receives just their face I value in currency. These are the questions, the an- | srvers to which will not be known until the court hands down its del cision.

HUSKY THROATS Overtaxed by A speaking,sins- \ ng, smoking \ r

WILL ROGERS IS ROPED AT LAST BY JR. LEAGUE Noted Comedian Heads East for Charity Show in City Friday. Will Rogers, the “sage of Oklahome,” is more adroit at eluding the lasso than one of his quick-footed Oklahoma steers, hut he flies eastward toward this city today, the figurative noose of the Indianapolis Junior League drawn neatly around his neck. The Junior League started three weeks ago twirling a telegraphic and telephonic lariat over a 2000mile area. Wherever the lariat landed—that was where Mr. Rogers wasn’t. The ex-cowboy, who keeps the populace away from home seeing his movies through the week and at home Sunday listening to his radio comments, doesn’t look like Greta Garbo and he wasn’t trying to act

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. THE INDIANAPOLIS TIMES

like her. It Just happened that too many people want him at one time. But. if Mr. Rogers didn’t know' it before, he knows now that there is no escape from an organization that puts on rodeos and horse shows and such things year after year. The Junior League knows it ropes. It called out Gov. Paul V. McNutt, who. like Mr. Rogers, was a Democrat back in the days when it was funny to be a Democrat. It also called out Will Hays, a Republican who got into the movie business before the Democrats, including those in Mr. Hays’ own Hoosier state, demonstrated that they couldn’t be laughed off forever. Booth Tarkmgton, who is also something of a humorist, was sent into action too. The Junior League backed up this team of go-getters with a few reserve experts, such as Dr. William Low% "Bryan,. Indiana University president: Hugh McLandon, president of the James Whitcomb Riley Memorial Association; Mrs. Kin Hubbard, widow of the late humorist; Edwin R. Hisey, Rotary Club president, and Frank V. Hawkins. Kiwanis Club president. Asa pinch hitter, Jess Andrews, Indiana's well known producer of polo ponies, was put into the play. Mr. Andrews has cavorted on the polo field with Mr. Rogers on va-

rious occasions and knows his style of play. Even this impressive lineup had trouble securing the rope around the humorist’s familiar soft collar. He always had Just left his home in Berkeley Hills or his office in Hollywood or he was “on location,” a spot that puts movie stars especially leading boxoffice stars—beyond the reach of man or beast. When his pursuers finally caught up with him he admitted he was caught, but he wouldn't say when. He was flying east, he said, and would stop off. Last Saturday he set the date for Friday night of this week. Thus, with their “catch” thoroughly bound, but not gagged, the Junior League obtained the Afmory to put him on display and incidentally, to raise money to be applied on the budget for operating the occupational therapy department of the James Whitcomb Riley Hospital for Children. The performance will start at 8:15. Relief Aid Promoted Fred E. Crostreet, Governor’s Unemployment Relief Commission field representative, was named today by Wayne Coy, Commission Director, as Marion County relief administrator. Mr. Crostreet will be located in the offices of the Center Township trustee, 214 N. Senate-av.

PURDUE RURAL EXPERT CHEERS STATEMRMERS 1935 Outlook Is Excellent, Prof. Robertson Tells Conference. B\> Z'nifril Prom LAFAYETTE, Ind., Jan. 15. — Farm prospects in Indiana during 1935 are the most favorable in many years, visitors at the annual Indiana Agricultural Conference were told her# last night by Prof. Lynn Robertson of the Purdue University Farm Management Department. “In general, Indiana farmers have prospects of selling a fairly large supply of products at prices which are likely to be higher in comparison to the prices of items for which farmers spend money,” Mr. Robertson said. Highlight of the opening program of the four-day conference

was crowning o? the state’s 1934 corn king and princes. Peter J. Lux. Shelbyville. international com king, was crowned by Dr. E. C. Elliott, Purdue president. Stanley Meal. Manila, international junior corn king, and Harold Psnkop, Decatur, winner of the state Five-Acre Corn Club championship. were crowned as princes. Approximately 2000 Hoosier agriculturists and farm wives were registered. Judging in the state com and small grains show and some livestock divisions was started today.

Gone, but Not Forgotten

Automobiles reported to police as stolen belor.e to: Wallace L. Shilling. 1317 N. JefTersonav, Ford sedan, 29-749. from carase in rear of home. Florence Geisler. 2267 N. Dearborn-ft. Ford V-8 coach. 100-377 <35 >. from 109 E. Ninth-st.

BACK HOME AGAIN

Stolen automobiles recovered by police belons to: C. Cain. 1188 Kentuckv-av. Ford coach found at 612 E. Georzia-st. C M. Kesslinc. 3630 N. Pennsvlvanta-st. Ford coupe, found in front of 3476 Birch-wood-av. R. Woodard. 5104 N. Mcridian-st, Ford stdan. found bv sheri f. J C. Leslie. 1005 N. Pennsrlvanla-st, Plymouth coach, found in front of 1000 N. Pennsylvania-st.

TAN. 15, 1935

DISABLED VETERANS TO ASK CONVENTION AID Seek Same Status as Legion, Bill to Be Offered. Tire Disabled War Veterans of America will attempt to get a bill introduced in this session of the General Assembly which will provide that the state defray a portion of their annual convention expenses.

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