Indianapolis Times, Indianapolis, Marion County, 4 January 1938 — Page 4
E ALTERS |
JTILITY VIEWS
" 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 bf 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 A Justices Butler, McReynolds, Van { Devanter (since retired), and either i Hughes or Roberts. Yesterday only : Justices Butler and McReynolds dis‘sented. (Justice Sutherland did not | take part in either case). Thus either ~ the Chief Justice or Justice Roberts : dehanged his mind. : In yesterday's other decision, involving 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 traditionally “liberal” trio, Justices Brandeis, Cardozo and Stone. Some, mindful of reputed compromises 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 poth cases defer for a long time the al showdown on repro“duction cost vs. original cost.
61 Power Projects Get fokes “Go Ahead’
BULLETIN WASHINGTON, Jan. 4 (YU. P.).—Attorney General announced today the Government will seek immediate dissolution of injunctions blocking Public yo Administration plans to gi ‘industry a $146,917,808 «shot in the arm” through ‘construcion 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 ~ 8 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” i for industry and will have a conon cost of $146,917,808. They | are located in 23 states. Secretary Ickes promised the construction work would be speeded so t the projects could exert :a 1 in um of influence on unemploy-
e wWhanimous court decision in the PWA case was delivered yesterday by Justice George Sutherland. It rejected two attacks on the
“agreed that public utilities were barred from challenging the PWA program because municipal power
Black ‘Sees Rise
President Roosevelt is shown on the rostrum 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 the 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 $9,195,908, 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 sef, but the Seventh District Court of Appeals reversed the District Court’s finding in the present case of $21,392,821 and suggested a 25 per cent increase because of “price trends” between 1933 and 1935, Justice Black pointed out. “The District Court is now re-
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 and “it’s imaginary reproduction
. systems constituted fully authorized i am legal Sompesition.
value.” - “So-called water rights, valving
versed, however, because the Cort’
White River, ‘estimated from nothing to $2,000,000’ are ridiculed and testimony cited to show they may possibly be based on providing navigatioh 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 dc I believe that, even if the people of Indianapolis and the surrounding community have permitted the Wate: 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 rot 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 Black 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 previous judicial overvaiuation of this property,’ the opinion concludes. “I "believe the State of Indiana has the right to regulate the price or’ water in Indianapolis free from interefercnce 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. Jan. 4 (U. P.).— Police today investigated the mysterious shooting 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 version of the affair or locate anyone in ‘possession of a gun.
“IN INDIANA POL IS
Here's County Traffic Record |,
Deaths (To Date)
Deaths, in -City 1938 ./........ 2 1937 ...cova 0 Accidents Jan. 8) Accidents .... Injured Dead
MEETINGS TODAY
Club, luncheon, Claypool Hotel, |
: don fine rai Stats Association at County and
tail Shoe Men’s Associa:
er. Hotel tums. Tischeon. kn 0 ? naan.
Club, luncheon, Columbia Club, Club, luncheon, Columbia Club, of Michigan Club, Iuncheon, Delta, “dinner, Athenaeum,
; GF TOMORROW
31a
ys a Alpha Epsilon, luncheon, Board | rade, noon. i Real Estate Board, Probests Management Division, luncheon, otel Washington, noon 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.) at lter Oliver, 21, of 31 : “Nad dine Bennett, ah of 4 % g aSinen St owas E. Lytle, 22. of 2324 gitferd Mary Ma a Wagner, 23, of 2 ord Ave.
ph J. Berry. 23. ot 1119 W. 3 : Ne Ss, s yy mo; OEM aun ss + au day. 1 1031 Haugh St. M Pin hr! of 1614 Sheldon Sts Carmae Parker, 19, of 1712 Arsenal
Paul Danis Indiana 41, Indianapolis; Hazel
te, 23 of 412 N. N But Ione en Breedlove, 21, ot
aul La Mar Castle, 22, of 20 TR lena Katherine Kiineshrist Coe:
wl °E White Jr., 32, of 4 - Blvd; Harriet’ Denny, 22. Vorhing:
25, of 1968 Hillside
Lilian a Decker, 22, of 1441%
Ave: , Madison
BIRTHS
Girls : Howard, Bun Pettit, at do38, Ls ram. t Bynu um, Th elma Smith, at . Cen-
wapoyd. Permelia Bennet, at 23 8. Rich-
Carl, Mona Fold, at 1654 N. New J Wiliam m, Kathryh hryn Fogarty, at Coleman.
rion,’ Floren ence 5 fed” Te May, a Sojeman
Colem oniell. Oblema Coleman.
jd Si Shee! Saint. Adsiaide Walton, AT. Oakley, at Sma nity,
Boys Cecil, Mamie Glaze, at 1917 Edward, Della Cornelius, LW, Vermont.
pect. Louie, Olive Lizider, at 423 8. A Sony, and Marion Forman, at aan N. Paul, Martha Johnson, at Coleman,
+ DEATHS es
40. Vete hi Eitsk Chose, 49. 5t $58 Whine rinoma. E. D. Jackson, 53, at - pital. chromic. tay n, 3, ot, Central State Hos. Seller eliers, 90, at 1327 Central,
gi Myeis, i ] ol 88, at 5255 (N. Illi : EA) nrom 63, at 1213 E. 23d, cH 54, at 701 E. Mc- |: s » 16, at 1220 W, 30th, |
Mars lobar pneumon
Caleb ackSon Strickland, $5, at 3602 Guilford, lobar pneumonia. Has Grace Caforus, 4, “at City. diphLouise Anna Henryman, 45, at Central, Ind., hosgital, toxic thyro! Henry 1. Sanders, 53, acute cardiac "dilatation eorge W. Butler, 79, at 33 Campbell, coronary occlusion Henry I. Young, "36, at City, lobar pneu-
24, at Methodist,
cease B. Contes, 62, at City, acute myoHugh Jacob. Hayes. 35 at 1554 N. Arsenal RL pneumon -
monia ry Ella Jhiesing,
FECAL WEATHER
Uniied States Weather Bureau
INDIANAPOLIS FORECAST: . Fair 'tonight wilh lowest temperature about 22; tomorrow fair and somewhat colder.
Snonrise ...... 7:07 | Sunset ...... 4:33 TEMPERATURE
ita ion 24 Br. ending 1 a. m..
Total’ pricipitation
MIDWEST WEATHER
Indians—General fair tonight and tomorrow, ept lig t snow north “portion tonight, Somewha Eger tomorrow except . extieme southw inois —~Generall See “tonight and tomorrow, except light snow extreme northeast tonizht; Somewhat colder Tara] and
north to norr hat colder
Low Haan mew, extreme north po tonight; tomor:
gan—snow rtion TOW y generally, fair re colder, except snow * with :
urries ¢xtreme northeast
. Ohio— ost] cloud and Solde snow flu erm al
os ‘tions Jenights tomorrow Generay Tair
and co
Kentucky—Falr and night nck slightly colder to-
WEATHIE IN OTHER CITIES AT 7 A. M.|
g a» 8
23
RRRNENe
hs o
SESS LSE uLLy Z8288225R585S 5 ai o
President Garner (left), and Speaker William B. Bankhead. At the right is his son and assistant, James Roosevelt,
rat ‘439° W. Michi--
JAPS ADVANCE, 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 fo carry on.
vow. ve
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 in-
“|eluded songs by Abdul Wahab, fav-
orite 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.
~
'F.D.R, MESSAGE
Attacked for Evasieniss on One Hand, Lauded for Good Sense on Other.
.. By United Press Reaction to President Roosevelt's message to Congress became quickly articulate 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 disastrous experiment of 1933 and 1934. 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. in meeting internal difficulLONDON NEWS CHRONICLE (Liberal ‘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 differ from the United States democratic system.
BERLIN TAGEBLATT—The most
NATION SPLIT ON
Jan. 4—T'm region to find out that workin’ in pictures is’ jest another job. You haven’t got up at seven o'clock in
| the morning in order to be on the
set. in your “war paint” by nine o'clock. Then you work all day long in the heat. * The reason people think it is romantic ‘is’ because 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, I 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.” wi » (Copyright, 1038) 3 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 Deniocracies but that there was no certainty that the isolationist United States would take its stand with European demacracies. 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 Deniocrats applauding. Reap. Halleck—“After five years of mucldling 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 on year after year increasing deficits.” Democratic comment follows: SENATOR MINTON—“He still is a New Dealer and that is what the peonle wanted when they re-elected him. His message was good tempered and its tone indicated that no honest citizen need be afraid.” SENATOR VANNUYS—“It was a fine message and very well delivered. REP. GREENWOOD expressed delight with the message and predicted passage of a new wages and hours bill, 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 President’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.”
i!
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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Favorable Response to Message.
(Continued from Page One) ’ gation plans appeared certain to
gress. 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 before the President’s appeal for co-operation of business and Government was delivered, it was reported Vice President Garner informed Senator Borah (R. Ida) that the Administration was friend-
ses for corporations, sponsored by
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 invest gation. Urges Quick Action Senator O'Mahoney, too, urged quick action instead of “more talk.”
ASE.D.AS HOPE,
White House: Aids Reveals
arouse wide opposition in Con- |
Senators’ Borah and O'Mahoney (D. i
The © Congressional attack on
cluded ments: : 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 Inguizy. 2. Opening of an inquiry } headed by "Senator Byrnes (D. S.C.) into the extent and causes of unemploymen: which the Federal ‘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 opinion developed at a meeting of the heads of various fiscal agencies. Regular Congressional activity will be resumed tomorrow when President Roosevelt delivers his budget message. Following the budget message, the House and Senate will get down to work on_their programs. The t item for the Senate will be debate on the Wagner-VanNuys Antilynching Bill, which faces a filibuster of uncertain duration.
three immediate develop-
dent’s sincere devotion to the welfare of the people.” “His message showed a sympathetic understanding of the problems of all classes society,” he said. Frederick E. Schortemeier, Republican county chairman, said the President “failed to inspire any con. fidence 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. continue his differences with business. There was no promise of co-operation and there will be no progress until business .anci Government have confidence in each other. Until this is accomplished there will be no jobs for Pe unemployed.” TR William E. Clauer, Democratic County chairman, said he had heard the part of the message thai had reference to the Administration policy toward business, ancl believed the speech was temperate.
was” nothing in the President's message
¢avot : i enter the rik oro of . today, though he had off build the country a mod !
ought’ 10 permit ‘him to ; Andorra
If his Tawyer fails, the only 5 n country which “the. nay visit is Liechtenstein. Village reports said that
‘was awaiting the arrival of an year-old girl whom he loves de
6.0.0. ADH RELIEF SET
Ruckelshaus Says Dea li On Borrowing to Come In Three Years. ;
(Continued from Page One) that group Deneving thet Deal
problems of business while awaiting | phases. of ‘New completion of. a {ax revision bill in-'| which have ruled out I legis
practices of private Die] nes are, on the whole, justifial
{even necessary.” he said.
“But it does seem that in governmental gestures as the ment. of the undistributed tax, the belligerent ~uncomp: ing attitude of some few —. public office, like Secretary of ‘1 terior ‘Ickes, we have at least ap tial explanation for the fact we have today some 1) million ple unemployed with relief rising, notwithstanding a gover mental relief expenditure since 19: of about 14 billions of dollars.” Bill Paid by Bonds Returning to the administrati of local relief, Mr. Ruckels said: “The whole bill was paid by issues; a loan that some day have to be paid, together with terest by the taxpayers of this co! munity. “It is important to note that v this county enjoys a fine ¢ rating, nevertheless, in about | years, on the present basis, M County will have reached the stitutional limit of its bo power. It is well to bear in
cent more in July, 1937, than July, 1933, when unemployment : greatest.” Ble Mr. Ruckelshgus charged during the last election the . in power did take advantage of relief situation to convince a many voters, who were recipie: governmental relief, that they vote for certain candidates or governmental relief would nok forthcoming.” : To eliminate this, he reco ed that the law, passed by the Legislature which prevents ployers from coercing their ployees in voting, be extend “any one connected with the chinery of. relief, or to the sentative of a political party that individual should endeave coerce a voter who happened to on Governmental relief.” = . Mr. Ruckelshaus suggested the Government “assist the on relief to find ‘jobs and. use every means to encourage vate industry to hire these pe by training more unskilled w to fill in the shortage in the workers’ ranks. He was to speak at noon before the Indianapolis’ Counc
Women at the Ayres’ auditorit
] | _ brief, braid
Brief Bolero
\widone in the best Schiaparelli Manner
“The dress is distinctly slenderizing. The white pique collar and the
one piece navy sheer fits like a dream and
brief bolefo (with white scroll pattern) tell a
1 spiing fashion n Sor
that relief in Indiana cost 300 pe)