Indianapolis Times, Volume 47, Number 2, Indianapolis, Marion County, 13 March 1935 — Page 12

PAGE 12

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WEDNESDAY. MARCH 13. 1935. THF. HOLDING COMPANY MESSAGE PRESIDENT ROOSEVELT rang the bell In h‘- nr.*'? age to Congress on utility holding coir.pa. j. The utility business happens to be one with which the President 1* familiar. As Governor of New York he learned that it is practically Impossible for state and local governments to regulate intricate corporate devices to insure fair treatment either to investors or utility customers. In his message, the President conceded every virtue to which a utility holding company has anv claim. He outlined a reform prog* mto r m such benefits and to abolish the many evils of the y.-.tem He would not and y utility holding company s which are in fact investment trusts, r the purpose of diversifying investments and protecting investors. But he would destroy those that confuse management with investment, to the detriment of both. He would make it impossible for a little ring of greedy men to rob investors with one hand and rate payers with the other. He would not destroy holding companies which caii prove an economic or business reason for their existence, which perform demonstrably useful functions in operating geographically integrated utility systems. But he would destroy those that serve "simply as a means of financial control.” He would not destroy management companies which give genuine and useful services to operating companies at reasonable fees. But he would return self-control to the operating companies, and prevent financial promoters in distant cities from milking them through exorbitant fees and one-sided contracts with subsidiaries. Such a program will strengthen rather than interfere with legitimate business. The interests of the real investor—-as of the rate payer—lie in the direction the President has outlined. LONG-WINDED LONG \ COMPILATION of the Congressional *- Record in the present session shows that Huev Long has filled 89 of the Record's 747 pages given o\er to Senate debates. Although he is only about 1 per cent of the Senate, he has used up 12 per cent of its time and space. Talk sometimes is cheap for the talker, but Huey's chatter is proving costly for the j country. THE NO MAN IN the fateful issue raised by the quarrel **• between Navy Secretary Swanson and Comptroller General McCarl, ordinary mortals may hazard no opinion. The courts, or perhaps higher powers, may decree whether the government shall shell out return fi r e and freight for the families and chattels of retiring naval officers as Mr. Swanson argues, or not as Mr. McCarl insists. The thing most Americans will find gratifying is that in Mr. McCarl they have an official with not only courage but congressional mandate to say. No. Mr. McCarl’s lot, like the policeman's, is not a happy one. He was appointed 14 years ago for a 15-year term, with instructions to guard the Federal expenditures without let or hindrance from politicians or bureaucrats. While his office was created by Congress he wears the collar of neither the White House nor Capitol Hill. Only his conscience and the law are his guides. He is the government's official No Man. Often wails have gone up over this lowa lawyer's rulings. He has angered lesser hirelings by clipping pennies from their expense accounts, outraged gold braids by telling them what trains or boats they should have taken, defied Cabinet officers, and even presidents. When they challenge his findings as tyrannical or pettifocgmg. he tells them to have Congress change the law. Senator Vandenberg has proposed to amend the law to permit this man's reappointment next year for another 15-year term. The Michigan Senator is right when he says: “Mr. McCarl has demonstrated a fidelity to trust unexcelled in the history of our government.” Unless a better No Man can be found he should be reappointed. In stopping the leaks he has saved the taxpayers millions. It does not appear that the services of such a man can be dispensed with. TAXES AND THE BONUS PRESIDENT ROOSEVELT repeatedly has warned Congress that it must levy taxes to pay for any unbudgeted appropriations which it votes. Having a justified concern for the* govern- j men; s credit, the President could not do ! otherwise. The Admaustration's own plan to •pend more than four billions in excess of anticipated tax collections next year makes any additional operations m red ink extremely hazardous. This much, at least, can be said for the Presidents financial program: It provides taxes to meet all of the ordinary expenses of , the government, and resorts to borrowing only | to meet expenditures to relieve the general distress of the people. Congress r.ow threatens to vote, possibly over a Presidential veto, for premature pay- \ mrnt of the soldiers' bonus—premature be- ! cause, under the law which the veterans' lobby itself forced through Congress, the bonus certificates do not mature unti! 1945. If Congress votes two billions to pay the certificates 10 years in advance of maturity and an additional 200 millions to cancel in- , terest on money borrowed, a day of reckoning may come all too abruptly. The Patman bonus bill would have the government print the money. The Vinson bill, which the House Ways and Means Committee supports, maxes no provision for raising the i

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money. Presumably, the government would have to try to raise it by selling more bonds. These two bills differ somewhat in method, but not much in their probable effect. Both endanger the government's credit, at a time when that credit is so essential to the welfare of both veterans and non-veterans. What credit the government has should be saved to provide relief and Jobs for the needy, both those who have and these who have not worn the uniform. INCOME NEEDS REDISTRIBUTION ■EETHEN Gov. Marriner S. Eccles of the ’ Y Federal Reserve Board told the House Banking Committee that a redistribution of income is in order in the United States, he helped to clarify a situation which has grown pretty confused. Gov. Eccles was careful to point out that it is income, and not capital, which needs redeaiing. It is a point which ought to be kept in mind by all people who are casting wistful giances at any of the current share-the-wealth movements. • At the height of the post-war boom, Gov. Eccles says, one-tenth of 1 per cent of the families at the top of the income list got as much money as 42 per cent of the families at the bottom. They couldn't possibly spend all their money. Most of it had to be invested. But investing it simply meant that the money was used to stimulate production. The country's capacity to produce was pushed ahead of its capacity to buy. Eventually we found ourselves floundering about in a depression featured by that astounding contradiction, want in the midst of plenty. Gov. Eccles sees the remedy as a more equitable distribution of incomes. This, he says, can be accomplished most effectively through income taxes. Now contrast this view with the rising demand for a redistribution of capital wealth. Capital wealth consists largely of intangibles—stocks, bonds and the like. Suppose, for the sake of argument, that the claims of the mast vocal Share-the-wealth group are true, and that this wealth if divided would give each family SSOOO. What would happen then? The family would not get SSOOO of income. It would get a SSOOO stake in the country's mass of securities. If these gave an average return of 4 per cent, the family would draw exactly S2OO a year—which is a long way from being enough to support a family in this day and age. In other words, we are asked to put through a scheme which would rock capitalism to its foundations to give each family an income far below' even the subsistence wage in the' pending public works bill. Mr. Eccles’ plan would create infinitely less disturbance in the world of business and finance—and. at the same time, it would be far more lucrative for the people who need increased incomes. ATTEMPTED SCUTTLING THE shipping interests are present in forbidding power at the meetings of the House of Representatives Committee on Merchant Marine, now considering the proposed new sea safety laws. Certain Commerce Department officials. It is rumored, are uniting with shipping interests to defeat the Sirovich bill. This excellent bill erases the 84-year-old immunity of shipowners to damages for life loss unless explicit owner knowledge of conditions producing a disaster is proved—an extremely difficult thing under present circumstances. The shipping interests, aided, according to the report, by the Commerce Department officials. are out to replace this bill with another calling for blanket passenger insurance, payable not by the company, but by the passengers. Passengers can now buy insurance before going on voyages. The special viciousness of the ancient immunity law is that but for it shipowners and masters, facing huge money damages, would be under great financial pressure to prevent disaster and life loss in disasters. The present law' permits the travesty of a V.'ard Line seeking to limit all damages for the 134 lives lost on the Morro Castle and 45 lost on the Mohawk to $20,000 and SIO,OOO, respectively. The Sirovich bill provides that knowledge of the captain, superintendent or owner's managing agent shall be presumed to be knowledge of the owner in case of conditions contributing to disaster. It permiie recovery which would run more than SIOOO 000. instead of a mere $20,000, for those lost on the Morro Castle. The Sirovich bill is solidly modeled after English law on the same subject, just as the present ancient law* was in its time modeled after an English law now’ long since repealed in justice to sea travelers and as an indispensable means of promoting owmer and master caution. It is to be hoped that the Roosevelt Administration will champion the Sirovich bill as the keystone of a new’ piogram to put human life above dollars at sea. It is hoped It will repudiate at once the reported Commerce Department alliance with the shipowners to scuttle real sea safety reform by a passenger insurance bill. POOR CHANCE FOR NOTORIETY 'T'HE young woman in Missouri who asked -*■ a county sheriff to let her spring the trap at the hanging of a condemned murderer, on the ground that she wanted to know what it felt like to hang a man, has given the nation just about the most unpleasant little morsel for contemplation 'hat any one could imagine. Offhand, one suspects that what she really wanted was a bit of notoriety rather than the thnll of taking a human life. Volunteering to perform an execution is one way of getting your name in the paper; no injustice can be done by supposing that was her real aim. But it is very hard to think of any other way of doing it which would have been quite as repugnant to the instincts of decent people. Mayor La Guardia of New York defied a judge to send him to jail for contempt of court, although he still has a long time to think about his re-election. A Yugoslavian peasant sold his wife and six children for S4O and some wheat. That’s about how glad the wife and chfidren must be to get nd of him.

Liberal Viewpoint BY DR. HARRY ELMER BARNES

ON my way back from the West I spent two pleasant evenings with the grand old man of American dissent, Clarence S. Darrow, who on April 13 next will celebrate his 78th birthday. had just returned from an extensive lecture trip in the Southwest, and all of his old interests still claim his active attention. I found him as skeptical of President Roosevelt and the New Deal as he was when he submitted his memorable report on the monopolistic tendencies of the NRA last May. More than ever he is inclined to regard President Roosevelt as a barrier to progress in the United States, glossing over his essential reaction with progressive rhetoric and making it palatable by his unfailing smile. But it would be a great mistake to regard Mr. Darrow as an unthinking critic of the President. He hailed Mr. Roosevelt’s initial pronouncements in 1933 with enthusiasm, and criticises him today only because he believes that the President has definitely walked out on the “forgotten man.” Some hold that Mr. Darrow opposes the NRA because of an old-fashioned extreme individualism, but this is certainly far wide of the truth. Mr. Darrow has become convinced that we shall never attain social justice without a thoroughgoing planned economy. But it must be one which is planned in the interests of the masses and not in the interests of big business. # m * AS a life-long protagonist of the use of sense and science in treating criminals, Mr. Darrow is vastly incensed by the current philosophy and methods of the Department of Justice in advocating the shooting down of criminals and trying them afterward. He regards this as nothing short of a reversion to lynch law—now made respectable, and exultingly applied to whites as well as blacks. Ho thinks this is a very bad precedent to set up, since the conception of who constitutes a “public enemy” is necessarily a very flexible one. It would be easy' to start shooting down Reds and then, later, conservatives on the basis of this philosophy. Mr. Darrow' also believes that the current hysteria about the crime menace is greatly overworked. He contends that the depredations of the ordinary criminals are relatively unimportant when compared to the organized and legalized looting of the country by the predatory moguls of finance capitalism. And he is especially concerned lest the savagery w’hich is now in evidence shall undermine his life’s work in bringing about a more rational approach to the whole crime problem. Mr. Darrow’s crusade for sanity In the crime problem has in late years been somew’hat obscured by his efforts to discredit the drys and end the dominion of prohibition. I asked him how he viewed the trends in American control of the liquor problem since repeal. tt tt u HE expressed himself as deeply concerned with respect to the absurd extremes to which the wets have gone where they now have had a free hand. He pointed to the fact which I could confirm from my own travels, namely, that in all too many states the bars are almost completely down in the sale of not only beer and wine, but even the stronger spirits. In many cities, whisky and other strong drink may be freely purchased by an adult, not only in recognized liquor stores, but also in drug stores, cigar stores and other emporia. And it is not too difficult even for a minor to get some obliging adult to go in and buy him a pint of raw whisky for 75 cents. Mr. Darrow is worried lest such absurdities, quite comparable to the antics of the bone dry fanatics 10 years ago, may produce a revulsion of feeling and throw us back into another orgy of dry fanaticism. In his opinion the sensible procedure would be relative freedom in dispensing beer and light wines, coupled with rigorous supervision of the sale of spirits in restricted stores and to responsible adults only. In short, he is, as his friends alway knew, a protagonist of civilized drinking rather than of unrestricted guzzling. I found Mr. Darrow least concerned of all about the future of orthodox religion. He feels that the battle has been won along this front. All that is needed is the passage of time so that the relatively indifferent younger generation may come into its own. But he warns us that we must be vigilant lest religious fanaticism be enlisted in the meantime in the cause of promiscuous and diversified drives against civilization and liberalism in other fields. Friends of liberal America can but regret Mr. Darrow’s advancing years. There is quite literally no one else who can wholly fill his shoes.

Capital Capers BY GEORGE ABELL

LENT is here—but it hasn't made a dent in the entertaining that goes on ceaselessly this season. At least, you can't notice any slowing up in the parties given last week and the ones scheduled this week. For one thing, kings, emperors and presidents continue to have birthdays, no matter when Lent comes. Last week. President Masaryk of Czechoslovakia celebrated his 85th birthday and the Czecho-Slovak Legation gave a big reception in his honor. This Friday will be the birthday of His Imperial Majesty, the Shah of Persia, and Minister and Mine. Djalal will be hosts at a reception and dance. In addition, there will be another birthday party on March 26, when Khalil Bey, Charge j ri'Affaires of Egypt, will entertain in honor of His Majesty, King Fuad I. Sandwiched between these formal events are parties of all kinds—dinners, teas, “at homes,” cocktail parties, buffet suppers, hunt breakfasts, midnight cinema parties, dances, soirees, entertainments of all kinds. a an SOME things diplomats and officials might give up for Lent: Minister Michael Mac White of the Irish Free State—that nip of Irish whisky before going to bed. Minister Bordenave of Paraguay—drinking a third cup of mate (Paraguayan tea) at breakfast. Rep. Sol Bloom of New York —caviar. German Ambassador Hans Luther —a second helping of Schweinsbratten mit apfel tunke. Minister Charles Davila of Rumania —another jaunt to Palm Beach. Polish Ambassador Patek—one of his busts of Marshal Pilsudski. Signor Augusto Rosso, the Italian Ambassador—his whirlwind tours through the Midwest i '■u.'h as recently disconcerted Springfield, 111., when they couldn't find a rock sent to Abraham Lincoln from Italy in 1861), Senator Miilard Tydmgs of Maryland his forebodings about the next senatorial election. Minister Prochnik of Austria—singing “Who's Afrait uff der Beeg, Bed Vulff?” in the bath tub. an n THE royal Egyptian Legation is again untenanted by a resident Minister after the brief and meteoric career of Ibrahim Ratib Bey,: who arrived several months ago and has just : been recalled. Minister Batib's sudden return to Cairo (the result of political enmities at home) has deprived the Capital of a cultured, widely educated and interesting personality. King Faud has sent a number of strange envoys to Washington. One of them was reputedly wealthier than the King himself, wore a ruby as large as a pigeon egg on his little ' finger, talked of yachts with staircases of solid silver, and snubbed the British Ambassador. j Then Minister Ratib arrived and the legation t began to function normally. Scandals ceased and a brief interlude of peace ensued. Suddenly,; Minister Ratib received a cable calling him home. He will not return. The irony of the situation lies in the fact that the Foreign Min- J ister responsible for Ratib's loss of his post here has himself been demoted. Such are Egyptian politics. _ J

THE INDIANAPOLIS TIMES

EVERY DAY IS FRIDAY IN THE SENATE!

The Message Center

(Times readers are invited to express their views in these columns. Make your letters short, so alt can have a chance. Limit them to 250 words or less, your letter must be sinned, but names will be withheld at request oj the letter icriter.) a tt tt HUEY LONG CLASSED AS “SINGULAR MAN.” By Jimmy Cafouros. Let us forget that there are political parties. And let us forget our likes and dislikes for a moment and do a bit of considering. In short, let us assume that we have no interest in this'affair. Assume that we are a generation now dead and are looking at contemporary affairs with that wise eye of the dead — cold and unbiased. There is that singular man, Senator Huey .Long. Descriptions of him and attacks upon him, and the treatment he gets lead one to conclude that he is a crank, or a crying hyena. But listen to the man over the radio and your heart goes out to him—you have impressions of his hymanness. You wonder if he is all they say he is. You wonder if you haven't been listening to one side too long. Now we all love President Roosevelt and trust him. It is only too evident that he is trying hard and that he has aged considerably. One knows by experience that there are periods of doubt and fear followed by periods of confidence and hope—periods when the stoutest of hearts doubt and diametrically opposed periods when the frailest and the weakest and most cowardly find hope. So let us not be stricken with panic—the patient does not usually die when he gets a fall, painful though it is. m tt m COMMENT ON THE STATE LEGISLATIVE SESSION By Uncle Hiram. Well, since my Senator was so kind to take me in, I been havin’ lots of fun, kinda gettin’ acquainted with the boys and hearin’ all kinds of talk, specially bout the beer bill. Never seen so many fellers interested in one bill in all my life; the bottle fellers, wholesalers and even a feller who sells these little aluminum caps for bottles. By golly, it’s lots of fun. Seems to me though that some feller sort of got ambitious cause when Drs. McHale and O’Mara spent months writin’ somethin’ fur a bill it don’t hardly seem like its fair to have other fellers tear it all to pieces with these papers they call amendments, but as I said before, boys is boys. Mr. McHale had his boy friend over a few times this week. You know him, Bo Elder. He’s more positive than the rest of ’em. Bo says it must be, if the administrashun wants if—don’t see much of Skitz Simmons since the streams have been polluted, guess he’s worked so hard he’s all worn out. Herald Feightner, who is a code man fur beer, ain’t been home for weeks, so he says, it’s jist too bad I think fur all these boys to have to work day and nite like they do. Looks like the Senators and House members would be more considerate and not have nieht sessions. The boys celebrated in fine shape the last night, as I remember long ago some of the newspaper boys cut up a little, usually on that night. I would think everybody should celebrate, but you know my senator says he’s just beginning to learn the ropes and would like to stay down a while longer, and he don’t sleep so good fur wonderin'when the Special Session will start. It does beat all how different people is but I guess we got to have em. I underswuitL Lieut. Gov. Town-

Another Depression Cure

By Harry Kent, Connersville. The economic situation facing this country today is plainly the result of the greedy, grasping habits of the aristocracy, together with the tradition that has been handed down from father to son from ages past that profit must be made in any form of business, and the more profit that is taken, the more successful is the merchant or manufacturer. This is true, for personifying the capitalistic class and the laboring class a> two persons alone in the United States and as an example, let the laborer work for the capitalist, using his machines to make two articles. Now supposing the laborer wishes to purchase one of the things that he has made. If the capitalist charges him all of his wages that he has earned in making the things, then adds 10 per cent profit to the purchase price where, in God's name, will the laborer get the added 10 per cent when he only has his wages? In years past, it was passible for a person to ‘‘go West” and without much money, recuperate, or gain an added fortune, either in land or gold or in some of the other natural resources at that time unclaimed. With the decrease in the available free public resources, the

send says he’s going to quit if they don’t pay his salary. He’s done a lot of work, maybe fur nothin’. Well, since my senator is lettin me have his pass to a picture show I will close for now. tt tt tt TIMES PRAISED FOR SCHOOL ON SHOOTING By R. A. Ferguson. I am a member of your shooting school that is being held at the Indianapolis Gun Club. I would like to take this opportunity of telling you the great work I think is being done. Since attending this school I have learned a great many safety features that the average hunter would not pick up in years. You are to be congratulated on your excellent support of this worthy cause. n h a JUSTICE, COMMON SENSE OVERSHADOW ALL LAWS Br H. D. Robinson. I see in the Supreme Court ruling on the gold case, wherein they made the remark, that we have no Constitution. I think they are mistaken as the people who form this government have not repudiated, or changed it, and their officials who are appointed to represent them are sworn to uphold the Constitution which is the supreme law as agreed upon by the people, and can not be changed by their hired hands, whose failure to uphold the Constitution would make them subject to action by the people. The representative part of the Constitution is being misrepresented by a certain class of people who claim the systems formed by the Legislature are law, and must be complied with whether right or wrong. The writers of the Constitution brought up the question as to whether the people could be controlled better if they thought the Legislature made law. John Quincy Adams said that with honest men it would be all right, but with the other class, very dangerous. The legislators are elected by the people to represent them and are

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

economic structure began to pile up debt upon debt until now we are unable to meet those debts as they come due, without making other new debts, with interest (or profit) added, to take their place. Thus a gradual change has taken place and nothing has been done about it. A vicious, spiraling circle has been created unknowingly that will continue to mount higher and higher until there is a great financial collapse and everybody loses, such as in the present depression. Let the government set a deadline date for every concern in the country, regardless of its size, to start working with a full capacity of workmen and hours, with a government-controlled production; make them all sell direct to the people at cost (allowing all investors, officials, etc., of the companies a fair and just wage, for which they should be forced to work like any other workman). In any event that any of the concerns failed to heed the edict, let the government take over the business and operate it for the good of the ..üblic, allowing the', stubborn officials and other stubborn parties concerned, to subsist upon charity. Then, possibly, they may make good American citizens with a genuine sympathy for their fellowhuman beings.

sent to the Legislature to form systems for law the base of which is supposed to be justice. But the people we send to represent us do not have a knowledge of all the different phases of life and can not always form a system that would be adequate for the purpose. It is therefore left to the people to accept and make the system form, a law by custom, or by a majority vote of the people. The word justice encompasses all phases of law that are required to protect individuals and correct the wrongs that are being done. Justice and good common sense is all the law we are in need of if properly enforced. a a tt COMMUNISM WILL NOT HINDER UNITED STATES Bv James H. Job. Please allow me space for a brief reply to some of the statements made jy H. L. Chailleux, Americanization director, in his speech at the Chamber of Commerce dinner at Brazil recently. In his words of warning of the danger of the “red” terror, he denounced the Roosevelt Administration for having recognized the Soviet government of Russia on the grounds that it gives them the opportunity to open embassies throughout the country from which to direct their campaign to overthrow the United States government. He seems very much frightened to know that 247.000 Com nunist votes were cast last Fall. The gentleman forgets that there are two kinds of Communism. One

Daily Thought

That which is born of the flesh is flesh, and that which is born of the Spirit is spirit.— St. John 3:6. Knowledge of the world is dearly bought if at the price of moral purity.—Edward Wigglesworth.

.MARCH 13. l<m

| contemplates a social order which would provide work for all able- ! bodied persons who would get the full price for their labor without having to divide up with such men as Andy Mellon. Under such a regime the workers could produce an abundance of the necessaries of life, and have that abundance. Then the problem of distribution would be solved. The other kind of Communism would provide that one portion of our people would labor to support the unemployed, idle portion. That is the kind of Communism we now have. I suppose that is what Mr. Chailleux stands for, the gentleman is so scared lest our government be overthrown. Communists are not trying to hinder our government in solving the unemployment problem. But if this government doesn’t do it, nor can’t do it, I, for one, am in favor of establishing a government that will. SEEKS NEW LOCATION FOR “CURIOUS WORLD” Br a Reader. Each day I clip the drawings about “This Curious World” from The Times. I think they are interesting and educational: I would be pleased, though, if you would put it at the bottom of the page again, where it used to be. Since it has been placed in the center of the page, it has been torn quite often, caused from the way the paper is folded and rolled. I will appreciate seeing this change very much.

So They Say

Federal control is the most logical, efficient and satisfactory method of supervising the soft coal industry.—A. K. Renwick, Pittsburgh mine operator. The only disparity between Italy anu Abyssinia is in the air. Once that is removed, Abyssinia has nothing to fear.—Col. Hubert Julian, Harlem’s “Flying Phantom.” Organize and demand equitable distribution of the earnings of the automobile industry, which made millionaires of owners through exploitation of workers.—William Green, A. F. of L. president, to St. Louis workers. If the government doesn’t care about the value of the dollar, it should repeal its counterfeiting laws. —Roger Babson, noted economist. A second-best navy is exactly like a second-best poker hand.— Homer L. Ferguson, Newport News shipbuilder.

HUMBLED

BY DAISY MOORE BYNUM I walked the path that leads out to the hills; My feet were shod to scale ths greatest height, My eyes were wide to discern all things, My heart, exultant as an April night. When I had come upon the highest peak Where all the stars leaned low to pray My heart grew humble, and I bent my will; I am just a servant, and my leet ax clay.