Indianapolis Times, Indianapolis, Marion County, 4 January 1938 — Page 3

TILITY VIEWS

eversal of Position Seen Further Evidence of _ Compromise Trend.

By HERBERT LITTLE

~ WASHINGTON, Jan. 4. — The|

. turnabout of one Supreme Court justice and the bold insurgence of another served today/to dramatize

‘the Court’s two latest rulings on|

utility rate-fixing. : In the 6-2 decision of the Pacific - Gas & Electric case, it was apparent ‘that either Chief Justice Hughes or Justice Roberts reversed himself. For last June 1, in this same case, a 4-4 ruling by the Court repudiated the original-cost theory df rate-making. Yesterday's decision, written by the Chief Justice, in effect authorizes the California Commission to use its: own judgment in basing gas rates on original cost, rather than on reproduction of the company’s plant. While the roll call on’ last June’s vote was kept secret, as is customary in tie votes, it was apparent that the four of the winning side were ~ Justices Bufler, McReynolds, Van ‘Devanter (since retired), and either - Hughes or Roberts. Yesterday only Justices Butler and McReynolds dissented. (Justice Sutherland did not "take part in either case). Thus either ‘the Chief Justice or Justice Roberts © changed his mind. . ~ In yesterday's other decision, in- : wyolving Indianapolis water rates, the Court ordered a U. S. District Court “to conduct a new trial and admit ~ evidence of price changes from 1933 to 1935. To this decision Justice Black dissented, thereby taking a position to the left even of the Court’s tradi- : tionally “liberal” trio, Justices Brandeis, Cardozo and Stone,

‘Some, mindful of reputed com- _ promises within the Court in the past, speculated that the “liberals” ~ might have yielded in this case in "order to clinch the co-operation of Justices Hughes and Roberts in the _ California case. * In any event, the orders for retrials in both cases defer for a long time the final showdown on reproduction cost vs. original cost.

61 Power Projects Get Ickes “Go Ahead’

BULLETIN WASHINGTON, Jan. 4 (U. P.)—~—Attorney General Cummings announced today the Government will seek im- _ mediate dissolution of injunctions blocking Public Works Administration to give industry a $146,917,808 “shot in the arm” through construction of 61 public power proj-

WASHINGTON, J: Jan. 4 (U. P).— ~ Public Works Administrator Harold “I. Ickes gave a “go ahead” signal ~ to 61 public power projects today as & result of a Supreme Coudt decision upholding the validity of municipal power plants constructed with PWA funds. ‘The projects will provide a 100 million man-hour “shot in the arm” for, industry and will have a conn cost of $146,917,808. They are located in 23 states. ‘Secretary Ickes promised the con‘struction work would be speeded so t the projects could exert a imum of influence on unemployt. “The Wlanimous court decision in the PWA case was delivered. yesterday by Justice George Sutherland. t rejected. two attacks on the validity of PWA. loans and grants to municipalities for construction of power systems. All the justices ‘agreed that public utilities were ‘barred from challenging the PWA ‘program because municipal power ‘systems constituted fully authorized

ARS BL AR So

Black Sces Rise

President Roosevelt is shown on the vostram in | the House of Representatives as he delivered his annual message to Congress. Behind him are Vice

in Water Rates

For City in High Court's Action

(Continued from Page One)

“reproduction cost” theory and involved the same company, Justice Black produced figures to show what had been invested in the property. “The record in ‘tae McCardle case,” he wrote, “showed that the property was bought at a judicial sale in 1881 ‘by the present company at a cost of not more than $535,000, the purchase being financed by. a sale of bonds. “That apparently no cash wag paid for the $500,000 face value of stock issued at that time. “That the maximum book value of the company’s assets on Dec. 31, 1923, was $9,195908, but a witness called by the commission testified that the ' company’s records disclosed the actual book value of the property used for the - public ' convenience to be only $7,967,649.

“That from 1881 to Dec. 31, 1923, stockholders’ average annual profits were $189,255. “That practically all of the added book value was the result of additional investments financed by borrowing and not by investment of stockholders. “That no other investment was made by the stockholders in the company since 1881, but in 1909 a writeup of $5,556,071.85 was made on the books by virtue of which a common stock dividend of $4,500,000 was declared in 1910, making the total common stock $5,000,000. “That the $5,000,000 stock was thereafter carried in the books of the company. “That the stockholders not only paid no additional money. for stock, but that the profits made by the company between 1881 and 1932 were not reinvested in the company but were substantially all drawn out in dividends.” 19 Million Value Set In the McCardle case, a $19,000,000 value for rate making was set, but the Seventh District Court of Appeals reversed the District Court's

392,821 and suggested a 25 per cent increase because of “price trends” between 1933 and 1935, Justice Black pointed out. “The District Court is now reversed, however, because the Court of Appeals found that rates based on an obviously inflated value of $21,392,821 fixed by the District Court would confiscate the property of the company’s stockholders,” he wrote. The opinion then comments upon the marked disparity ‘between actual cost of the company’s property snd “it’s imaginary reproduction value.”

and legal Sompetition.

finding in the present case of $21,-

White River, ‘estimated from nothing to $2,000,000’ are ridiculed and testimony cited to show they may possibly be based on providing navigation for ‘imaginary sailors.’ “It is difficult to believe that such concepts of property can establish clear proof that the Constitution of the United States has been violated. “Nor do I believe that, even if the people of Indianapolis and the surrounding community have permitted the Water Co. to use this stream for a public service, there has been a grant of a prescriptive property right which can be capitalized by the company, in order to exact higher water rates from the very people who granted the privilege. “If the company had made actual investment in its property between 1933 and 1935, resort to illusory property concepts would not be necessary. Clearly, it would be entitled to a reasonable return upon such actual investment. Such is not the case. The order for a new trial is not based on a claim that the company has invested even one additional dollar. It is not claimed that the company bought additional land; added an inch to any of its dams; extended its distribution pipes, improved its filtration system, or purchased one: additional piece of property. Therefore no judge should be held to the fluctuating price trends and expected to anticipate the future, Justice Elack holds. “I believe the record affirmatively shows that the consumers of water in Indianapolis are already compelled to pay an unjustifiable price for their water on account of previ ous judicial overvaiuation of this property,’ the opinion concludes.

“I ‘belive the State of Indiana:

has the right to regulate the price ao" water in Indianapolis free from interefereénce by Federal courts. “The courts did not deny this right to the states for the first 100 years after the adoption of the Constitution.”

SHOOTING OF LOCAL . MAN INVESTIGATED

EVANSVILLE, Jan. 4 (U. P)— Police tcday investigated the mysterious saooting of Clarence Leach, 21, soldier on leave from Ft. Benjamin Harrison, who was wounded severely by a bullet fired in a tavern last night. He had been visiting his parents in Garden City. From a dozen witnesses police were unable to obtain an accurate

“So-called water rights, Involving

version of the affair or locate anyone in possession of a gun.

"IN INDIANA POL. IS

Here's County Traffic Record

Deaths (To Date) 1938 ......... Deaths in ony 1938 wa Teer ere 1937 . Seen en :

Accidents Jan. 8) Accidents ..,, 3 Injured ...... Dead sessgee? :

MEETINGS TODAY Club, luncheon, Claypool Hotel, au Omega, luncheon, Board of

te Association of County and Fairs, state meeting, Claypool

Si a Alpha Epsil of gma Al pha Epsilon, luncheon, Board |

oon. wy Rdianapolis Diomiom ate, Board, Pro 4 v s ’ Washington, noon. on ungheon oe

Beverage Credit Group, luncheon, Fox's Restaurant, noon

MARRIAGE LICENSES (These lists are from official records in the County Court House. The Times, therefore, is not responsible for errors in names or addresses.)

Walter Oliver, 21, of 31 St.; Nadine Bennett, 21, § 30 Asrineum

of 436 A Howard E. Lytle, 22." of 2324 *Eiliord Mary | ‘Marcella Wagner, 23, of 2

Ave. Guliford J. Berr 23. of of 1119 W. 34th St.; Mary Wilma Crider, 18, of 1123 W. 30th St. Ora Lee Grim 51, Kokomo; Marie Brown, 42, of 408 °E. 24th’ St. Gedi R 21 of 1031 N. Haugh St.; Lucille Le 18, of 031 Haugh St. Wilmer McF arland, 21, of 1614 Sheldon Sts. Carmae Parker, 19, of 1712 Arsenal

Paul [Danis Ai Aird, navolls, +o Hazel

M. ola arles A. Baia 23, of

jie Si.i fone Ben Breedlove, 21,

Paul lla Mar, Castle, 22, of 201 S. Thelma Katherine Kiinechtist 25.

Togianapolie Pau! White Jr., 32, of 4224 Washing.

ton Rive. Harriet’ Dam. 28, of

Park Av of 1968 Hillside

Paul Rotipda Madi Lillian Péarl Decker, 22, of 1441'%

Madison

“BIRTHS

Girls

Howard, Ruth Pettit, Byn : at 1636 Ingram.

um, ea in Thelma Smith, at 1210 N. Cen-

Lioyd, Permelia Bennet, at 23 S. Rich-

wein. Mons Fold, at 165¢ N. New Jerse athryn y:

am, Ki a em Tt % at Col an.

Jon. erence May, at Soleman. Micha, & Ethel Lm at Coleman, Ralph. Adelaide Walton. o Coleman, John, Lillian Oakley, at Community. Boys 3 Cecil, Mamie Glaze at 1917 W. Ve: t. Edw ward, Della Cornelius, at 371 Vermont.

Lif, Olive Linder, at 423 8. rris,

Har A Sonn ohn and Marion Forman, at 3251 N.

Paul. Martha Johnson, at Coleman. tin

DEATHS 40, prank Close, 4 102% JeEIAnE,, carcinoma,

E. D. Jac " ; Jackson, § 53, at Central State Hos-

ocarditis,

lors, 90, 5 1327 Central,

ine. Booker, 63 63, at 1213 EB. 234,

% pi ! Aiton Moe ¢ 5285 iN. sas 7% | nots, cerebral er ok [BE

on, aia in Wischmeler. 54, at 701 E.

412 N. New of |

Caleb Jackson Strickland, 85, at 3602 Guilford, lobar pneumonia. LS Griice Caforus, 4, at City, diphnna Henryman, 45, at Central, tal. toxic thyro Sunders, 53, at 439 W. Michi-' HA cardiac dilatation. George W. Butler. 79, at ‘23 Carpbell, coronary occlusio neonry ry L! Young, ‘36, at City, lobar pneuMary Ela aesing, 24, at Methodist, Johar Delmon ! Conley, 62, at City, acute myoPho

Hugh. Jicob. Hayes. 15, at 1554 N. Arsenal, lobar pneumonia. -

Louise Ind. hos; Henry gan,

POA WEATHER

Onit:d States Weather Bureau

INDIANAPOLIS FORECAST: .Fair 'tonight with lowest temperature about 22; tomorrow fair and somewhat colder.

praca 9:07 | Sunset ......4:33 TEMPERATURE

Sunrise

Preci cipitation 24 hrs. ending 7 a.m. gotal precipitation

Indiana —Generall morrow, xcept tonight; cept.

fair tonight and

DP! somewhat colder its sue southwest. Illinois- -Generall aE ‘tonight and toHOrrow, ¥ xcept light snow extreme northeast tonight; Fomewhat colder entra) and north .tolaorrow.

tomorrow ex-

Lower Michiga neSpew, somewhat colder exireme north’ I portion tonight erally fair and Solder, aries extreme northeas ad solder, with

. Ohio—1fostly clou snow flurries in no and central pars generally ir

“tions tonight; tomorrow ‘and coldr, Fair an sips ee ad, slightly colder to-

Far oRRRR Go TAK |

‘Station eather Bar. Temp. Amarillo, Tex. ......Cloudy 30 Bismarek N. D. seus Ho : 3014

and to- |. t Soow north portion

5 Jomortaw .

President Garner (left), and Speaker William B. Bankhead. At the right is his son and assistant, James Roosevelt,

JAPS ADVANGE, BOMB HANKOW

Spaniards Deadlocked on lcy Battlefield in Fight for Teruel.

(Continued from Page One)

the city of Hangchow, south of Shanghai, had been captured. The spokesman explained that the Japanese took over the Chinese Government radio service in order to prevent removal of apparatus.

In the first air raid on Hankow |:

in the last two months nearly 20 Japanese planes dropped approximately 200 bombs, most of them on the ‘military air field. Several missed the field and set residences afire. The next large city in the path of the Japanese drive in Shantung was Yenchow, although the real objective was Suchow. - Japanese authorities in Shanghai demanded controlling positions in the municipal government council of the International Settlement today because of repeated anti-Japa-nese terrorism. : Four Japanese officials made a strong protest ,to the council, attributing new attacks on Japanese soldiers by Chinese ‘red terrorists” to inefficiency of Settlement police.

Rebels and Loyalists

Deadlocked at Teruel

HENDAYE, French - Spanish Frontier, Jan. 4 (U. P.).—The grim

battle between Spanish Rebels and} Loyalists for, the town of Teruel.

reached a momentary stalemate today. Dispatches indicated that the Rebel offensive, one into which the insurgents had put everything they could muster, had stopped. For six days the pick of the Rebel and Loyalist armies had fought. in snow and ice, ill-fed, ill-clad, under a day and night rain of death from artillery, machine guns and - airplanes. It was indicated that the point of absolute exhaustion was reached yesterday that fresh troops must be sent into the lines to carry on.

Arabs Tune Out

British for Italian

LONDON, Jan. 4 (U. P.).—British officials waited eagerly today for reaction from Palestine on the first of their special Arab broadcasts, intended as a counter-measure to Italian broadcasts which are held here to be anti-British. _ Arabs after listening to the pro-

: gram last night began to tune it out

in favor of one from Italy which included songs by Abdul Wahab, favorite crooner of the Near East

Mexico to Further

Business Co-operation MEXICO CITY, Jan. 4 (U. P.) — A drastic reorganization of the Mexican Cabinet became effective today as President Lazaro Cardenas strengthened his new conciliatory attitude toward business. As outlined in his'New Year's Day message to the nation, President

Cardenas recalled that Government |.

policies during the first half of his Administration had been directed largely toward improvement of farm conditions, but that the next three years would be devoted to stressing the need of industrialization in Mexico.

~

(Eiberal

| differ

Attacked for Evasiveniess on One Hand, Lauded for

Good Sense on Other.

.. By United Press Reaction to President Roosevelt's message to Congress became quickly artieaate today, in which opinions were fairly divided. Following is a cross-section of editorial comment from some of the nation’s largest

| newspapers:

, WASHINGTON POST—Yesterday he (Mr. Roosevelt) sought to muffle the reverberations of the: onslaughts against “big business” indulged in last week by Secretary Ickes and Assistant Attorney General Jackson.

BALTIMORE SUN—Whether the President. is able to adjust himself to a definitely formulated program in support of the system of competitive capitalism (with eradication of the evils of monopolism to which he and his Republican predecessors alike contributed heavily) is a’‘question that remains to be answered. NEW YORK NEWS—On March 4, 1933, the people listened to Roosevelt as a Messiah. Now, we believe, most of them listen to him as to a man of vast experience and much common sense. The rest hate his guts. NEW YORK HERALD-TRIBUNE —The President is hardly at his best in discussing basic economic problems. In this field the superficiality of his knowledge is matched by the evasiveness of his thinking.

NEW YORK TIMES — By and large, the message is reasonable in its’ objectives, praiseworthy in its tone and fair in its treatment of those who disagree with specific points in the Administration’s program. CLEVELAND PLAIN DEALER— Apparently, it is the considered policy of the Administration to leave the flinging of hard words to such franc tireurs as Secretary Ickes and Assistant Attorney General Jackson. « « This may be sound Political strategy, or it may not.

CINCINNATI ENQUIRER — The sober listener could not fail to realize that the Administration still is pointed toward a repetition of the Sisastrons experiment of 1933 and

OHIO STATE JOURNAL—In essence, it was just another political

.| speech.

Comment in Leading

European Capitals

Comment in principal European capitals included: * LONDON TIMES (priricipal Conservative organ)—Mr. Roosevelt did not develop his theme as he did in his Chicago speech. .The whole passage (regarding foreign afairs) was cast in.a notably lower key and appeared to have been intended chiefly to, fortify his plea for nationtes unity in meeting internal difficul-

LONDON NEWS CHRONICLE Party organ)—Mr. Roosevelt has the moral leadership of the world for his asking. The New Deal marches on. Its methods are not always perfect, but its aims at home and abroad are magnificently right. LONDON DAILY HERALD (Labor Party organ) “The President is trying to undermine isolation and leave the road clear so that he may lead the American people out to a new position where they will be willing to use their great power positively in the struggle for world peace. BERLIN DEUTSCHE ALLGEMEINE ZEITUNG—“The speech appears rather arrogant. It is a criticism of political systems whice from the United States democratic system,

BERLIN TAGEBLATT—The most

Jan. 4—Tm ' to find out that workin’

in pictures is jest another job, You

F.D.R, MESSAGE ==

haven't got up at seven o'clock in the morning in order to. be on the set in your “war paint” by nine _oclock. Then you work all day long in the heat. > The reason people think it is romantic “is be- . cause they only. see the romantic side of it. It's ‘like . the city man : that came down and stayed all night at Uncle Hod’s house. The next morning he looked out the window and he said to Uncle Hod, “my goodness, 1 envy you having such a beautiful view to look at.” Uncle Hod says “Well, maybe it is, but if you had’ta plow that view, harrow it, hoe it, mow

it, fence it and pay taxes on it—

then you wouldn't .think it was so darn pretty.” Sy (Copyright, 1938) x surprising thing in the speech is that it is not new. For that part of the world which expected so much —in vain—of the Chicago speech, the President’s message must be disappointing. In Paris the consensus of morning newspaper opinion seemed to be that the President had seen and understood the perils Fascism held for Democracies but that there was no certainty that the isolationist United States would. take its stand with European democracies. In Rome political quarters expressed disappointment at the message. The morning newspapers gave a bare 250 words to the message. It was notable that this summary omitted the President’s remarks on democracy and dictatorship.

Hoosiers in Congress Divide on Message

| Times Special

WASHINGTON, - Jan. 4.— The Hoosier delegation in Congress today ‘was divided in its reaction to the President’s message, with the Republican Rep. Charles A. Halleck attacking, but most of the Democrats applauding. Rep. Halleck—“After five years of muddling the President tells us that we still are going to be required to muddle. The date of balancing the budget is further postponed by the same man who in 1932 said that no government can go un year after year increasing deficits.” Democratic comment follows: SENATOR MINTON—“He still is a New Dealer and that is what the people wanted when they re-elected him. His message was good tempered and its tone indicated that no honest citizen need be afraid.” SENATOR VANNUYS—“I{ was a fine message and very well delivered. REP. GREENWOOD expressed delight with the message and predicted passage of a new wages and hours hill. REP. GRISWOLD saw in the President’s insistence upon a “floor for wages and ceiling for hours” support for his 40-cent minimum wage, 44-hour maximum week bill. REP. LARRABEE—Noncommital. REP. CROWE—“The speech was ‘pretty good and I am for it.” REP. JENCKES also praised it and predicted the Presideny’s program will be passed this session. REP. GRAY has his own plan and expects’ to make a speech on “the money problem” shortly, he said. REP. PETTENGILL—“I am going to make a speech showing how little prosperity | we have brought back in five years.”

Local Leaders Express

Varied Reactions

Local political leaders greeted President Roosevelt’s message to Congress with varied opinions today. Governor Townsend said he was impressed again “with the Presi-

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A owen pricelist ig hid vey major walt ‘» + » motor, on ser Im brakes, frame,

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= ASF.LL'SHOPE

White House: Aids Reveal Favorable Response to Message.

(Continued from Page One)

gation plans appeared certain to arouse wide opposition in Congress. The extent to which they would be carried was uncertain. But developments left no doubt as to the emphasis the Administration is placing on that phase of the business problem. Even hefore the President’s appeal for co-operation of business and Government was delivered, it was reported Vice, K President Garner informed Senator Borah (R. Ida.) that the Administration was friendly toward the bill for Federal Licenses for corporations, sponsored by Senators’ Borah and O'Mahoney (D. Wyo.). Mr. Garner was understood to have asked Senator Borah’s support in the antitrust drive. The Idaho Senator made clear he would support any legislation toward the antimonopoly objective, but he vigorously opposes a prolonged investi-

gation. Urges Quick Action

Senator O’Mahoney, too, urged quick action instead of “more talk.” The © Congressional attack on problems of business while awaiting completion of. a tax revision bill included three immediate developments: 1. Disclosure by an. Admihistration source that the President is being urged to. have one branch of Congress—probably the House—carry on the antimonopoly battle’ by an inquiry. 2. Opening of an inquiry headed by Senator: Byrnes (D. 8. C.) into the extent and causes of unemployment which the Pederal ‘Unemployment Census Commission reported at possibly 11 million. 3. Preliminary planning for further banking legislation—a problem the President said in his message must be completed. It was learned. that sharp difference of opinior. developed at a meeting of the heads of various fiscal agencies. Regular Congressional activity will be resumed tomorrow when PresiSa Roosevelt delivers his budget

he to

ill

"Folle oe the budget estage House and Senate will get dow work on their programs. . The first item for the Senate ‘be debate on the Wagner-Van s Antilynching Bill, which faces a(filibuster of uncertain duration.

dent’s sincere devotion to the velfare of the people.” “His message showed a sympathetic understanding of the problems of al classes society,” he said. Frederick E. _Schortemeier, Republicen caunty chairman, said the President “failed to inspire any confidence in business circles.” “There will be no recovery until Government and business work together.” he said. = “There

to indicate he realizes the seriousness of the unemployment problem.

Co-Operation Needed

“It appears the .President is disposed to comtinue his differences | with business. There was no promise of co-operation and there will be no progress until business and Government have confidence in each other. Until this is accomplished there will be no jobs for the unemployed.” i William E. Clauer, Democratic County chairman, said he had heard the part of the message that had reference to the Administration policy toward business, and believed the speech was temperate.

was’ nothing in the President’s message

build the country a torium, i3ikorski, who said he has: In exile in 15 “European ‘¢ from American in he will return to. unless his lawyer succeeds. in vineing the French Governm ought to permit’ him to Andorra. If his lawyer fails, the only © European country which “th may visit is Liechtenstein. Village ‘reports said that Si was awaiting the arrival of ; year-old girl whom he loves ¢

6.0. P. ND HITS RELIEF SETU

Ruckelshaus Says Dead ind On Borrowing to Come In Three Years.

COT

(Continued from Page One)

that group believing that phases of New Deal legis! which have ruled out certain: practices of private bv are, on the whole, justifiable even necessary.” he said. “But it does seem that in governmental gestures as the ment of the undistributed tax, the belligerent uncompre Om ing attitude of some few men public office, like Secretary of terior Ickes, we have at least a tial explanation for the fact & we have today some 1) million ple unemployed with relief rising, notwithstanding. a gov mental relief expenditure since of about 14 billions of dollars. Bill Paid by Bonds © Returning to the administration of local relief, Mr. Ruckels ; said: “The whole bill was paid by issues; a loan that some d rave to be paid, together with i terest by the taxpayers of this col raunity. © “It is important to note that v this county enjoys a fine ¢ rating, nevertheless, in about years, on the present basis, M jounty will have reached the stitutional limit of its -boi power. It is well to bear in mi that relief in Indiana cost 300 § cent more in July, 1937, than July, 1933, when unemployment greatest.” Sr Mr. Ruckelshgus charged cluring the last election the in power did take advantage © relief situation to convince a many voters, who were recipien governmental relief, that they vote for certain candidates or governmental relief would not by forthcoming.” 155 To eliminate this, he recomm ed that the law, passed by the legislature which prevents ployers from coercing their ployees in voting, be extend “any one connected with the | ng chinery of relief, or to the pre sentative of a political party that individual should endeave coerce a voter who happened to on Governmental relief.” ; Mr. Ruckelshaus suggested th the Government “assist the peo on relief to find ‘jobs and use every means to enco vate industry to hire these g oy training more unskilled v to fill in the shortage in the workers’ ranks. He was to speak at noon te pefore the Indianapolis Coun}

‘Women at the Ayres’ auditoriu

: The dress

brief, L ‘braid

] ‘Brief Bolero

~ _done in the ‘best Seaiaparelli Manner

one piece navy ‘shoat) fits like a dream and

ls distinctly slenderizing.: The "white pique collar and the

brief bolefo (with white scroll pattern) tell a new

‘spring, fashion i