Indianapolis Times, Indianapolis, Marion County, 29 April 1938 — Page 1

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‘The Indianapolis Times

| SCRIPPS —~ HOWARD |

ANGLOFRENCH WAR ALLIANCE IS ANNOUNCED

General Staff Talks to Map Co-operation of Democracies.

GEORGE VI TO VISIT PARIS

Agreement Reached on All Points, Including Aid To Czechs.

(Other Foreign News, Page Six)

By WEBB MILLER (Copyright, 1938, by United Press) LONDON, April 29. — Talks between the general staffs of the air, land and sea forces of Britain and France will begin immediately, Premier Edouard Daladier of France announced today at the conclusion of conversations designed to align the two countries in the strongest military alliance since [the World War. Georges Bonnet, French Foreign Minister, confirmed that the decisions reached at the meeting of the Prime Ministers and Foreign Ministers of the two countries here amounted to a military alliance, to be worked out in the staff talks. The result of the conference was a common front by the two great European democratic powers to offer peace to the dictatorial nations but with a warning that force would be met with even stronger force.

‘Ideals Unite Nations’

'M. Daladier issued a statement which said: “We have reached an accord on all points. The community of interests—and more than that, the common ideals which unite Britain and France — has received from these conversations a new confirmation. This is not an excessive interpretation of the results, but to the con-

A French communique revealed that the two powers were in agreement on joint action to be taken if Germany invades Czechoslovakia, although there was no indication that Britain wascommitted irrevocably to military aid regardless’ of circumstances. The French communique declared that the two'governments had decided “to continue and develop a policy of ‘consultation and collaboration for defense, not only in their common interests but also in the interests of the ideals of national and international life which unite the two’ countries.” > The communique reviewed the main points discussed, including the British-Italian accord, the French-Italian accord, and the withdrawal of volunteers from Spain. , “Certain problems” connected with the coming League council meeting, presumably including recognition of Italy's conquest of Ethiopia both by Britain and France, also were discussed. They had agreed on united preparation for war and, in principle, on complete unity of command and execution in war. In six short hours they had done what British and French statesmen had failed to do in nearly 20 years. Their conversations, for their effect on the question of peace ‘lor eventual war, constituted one of the most significant movements in European diplomacy since the signing of the Versailles peace treaty. Visit Windsor Castle

Europe , today, as one authority put it, was presented with an olive branch covering a mailed fist—the first representing the united strength of the two most powerful nations in Europe. Premier Edouard Daladier and Foreign Minister Georges Bonnet of France had spent last night at Windsor Castle, the honored guests of King George VI and Queen Elizabeth. J There they had discussed the visit which the King and Queen are to pay to France next month. Side by side with the agreement on military action, Britain took independent measures to build up a food reserve against war. A plan was published today which showed that arrangements for the Government to take over the task of feeding the population within a few hours of the outbreak of a war had reached an advanced stage, and it was known that already the Gavernment controlled tremendous stores of whedt, sugar and oil. The military agreements were a victory for France, so great a victory that the French here were jubjlant and one remarked jokingly: «At this pace we shall very soon have full dominion status.”

BULLETINS

Informed there is a “good possibility” that Federal funds may be available ‘for South Side railroad track elevation if Congress authorizes renewed PWA spending, Mayor Boetcher today ordered plans - for the project brought up to

date. Mr. Boeicher said he was dvised of the situation by Rep. Louis Ludlow, in reply to - an inquiry as to whether money would be available for the project.

HANKOW, April 29 (U. P.). —Hundreds of persons were puried alive when 40 Japanese - air raiders bombed parts of . Hankow and clashed with more than 100 Chinese de-

| Robb, league chairman,

| him.

~}labor’s ranks on Mr. Wolff and

VOLUME 50—NUMBER 42

Roosevelt Asks Thorough

Study of U. Better An

FORECAST: Fair and slightly cooler tonight; tomorrow, fair and warmer.

S. Monopoly, titrust Laws

Declares Little Businessman Is Being Squeezed by Concentration of Economic Power and

Fixing of Prices.

WASHINGTON, April 29 (U.

P.) —Roosevelt today called upon

Congress to authorize a sweeping study of concentration of indus-. trial economic power and revision of the nation’s antimonopoly laws.

Mr. Roosevelt asked appropriation of $500,000 for a comprehensive study of antitrust problems by the Federal Trade Commission, the Justice Department, the Securities and Exchange Commission and other

Government agencies. He said he would submit a special $200,000 appropriation request for expanded enforcement on present trust laws by the Justice Department.

were directed primarily at study of existing conditions rather than immediate legislation. He listed seven specific problems as requiring Congressional attention. ; : They were: 1. Improvement of present antitrust procedure. 2. Scrutiny of mergers and interlocking relationship. 3. SEC. 3. Scrutiny of financial controls involving investment trusts and bank holding companies. 4. Trade - associations. 5. Patent laws. 6. Tax correctives. 9. Creation of a Bureau of Industrial Economics. Mr. Roosevelt declared attention fo antitrust questions was necessary because of a growing ‘“concentration of private power without equal in history.” x He declared this concentration was seriously impairing the economic

The President's recommendations | lif

as a way of assuring employment for labor and capital and assuring equitable distribution of income. The small business man, he said, was being d¥iven into a less and less independent position in ' American e.

Mr. Roosevelt said that managed industrial prices eliminated jobs. He said existing antitrust laws were inadequate. In the field of antitrust procedure, Mr. Roosevelt suggested consideration of: 1. Placing the burden of proof that a violation has not occurred upon the antitrust defendant. 2. Acceptance as prima facie evidence of violation proofs of identical bids, uniform price increases, price leadership, higher domestic than export prices or other specified price rigidities. 3. Wider invesYtigatory powers for Justice Department and Federal Trade Commission. 4. Provision that Courts could— in enjoining law violators—enjoin corporations from employing for specified periods of time any officer employe found to be responsible for the violation. 5. Provision for withholding Government contracts from firms vio-

affectiveness of private enterprise

Twelve Republican's Given] Approval; Wischmeyer Indorses Wolff.

“My first official act, if elected Mayor, will be to fire Mike Morrissey as Chief of Police,” George A. Henry, Republican mayoralty candidate, announced today. Mr. Henry said the Police Department is “virtually disintegrated.”

Other Republican political developments included:

1. The Marion County Chapter, Republican Veterans of Indiana, Inc., announced indorsement of 12 Republican candidates, including both Mr. Henry and Herman C. Wolff for Mayor. The group will not issue a slate. Consents from each candidate backed have been filed with the Election Board by William E. Reiley, chairman; Herman C. Higgs, vice chairman, and Ferdinand Montani, secretary. 2. Earl .B. Teckemeyer, mayoralty candidate, declared in a statement that organized, or machine, effort of workers to win is not wrong in itself—“it is the misuse of power built up by such machines that is wrongful and oppressive.” 3. Mr. Wolff's candidacy was indorsed by E. H. Wischmeyer, chairman of the South Side Civic Clubs’ track elevation committee, in an address at Wolff-for-Mayor Clubs headquarters. y In commenting on the police situation, Mr. Henry said: “Crime in our city is rampant, the police pay no attention to the sale of liquor to minors, gambling devices flourish in proximity to schools where children daily lose money given them by their parents to buy lunches, and .burglaries are on the increase. “Gambling houses openly flourish in the downtown district. Young boys and girls frequent taverns. Mere slips of girls are dispensing liquor in questionable places. “Chief Morrissey has made a dis: mal failure of his job and my first official act, if elected Mayor, will be to fire him. “Morrissey’s treatment of efficient officers, and the showing of par(Turn to Page Three)

AF.L, G.I. 0.UNITS ISSUE TWO SLATES

Labor’s Nonpartisan League Backs Democrats.

Slates indorsing primary candidates were issued today by two labor groups—the Workers’ Nonpartisan Political Action League, an A. F. of L. group, and Labor’s Nonpartisan League, the C. I. O. political organization. : The C. I. O. group’s slate contains indorsements for Democrats only, listing no Republicans. No candidate is listed for Mayor, but James said the league went on record as “vigorously opposing the nomination of Reginald H. Sullivan.” : Sheriff, Otto Ray, also a Democratic mayoralty candidate, an-. nounced recently he had refused to permit any organization to slate

The A. F. ofiL. group indorsed Mr. Sullivan for the Democratic mayoralty nomination and Herman C. Wolff for the G. O. P. nomination. Martin H. Miller, chairman of the A. FP. of L. League, said there seemed to be some difference .of opinion in

\ .

lating the antitrust laws.-

Henry Attacks Morrissey; Ray to Address Rally

b ; Democratic Veterans Back Sullivan; Snethen Favors Manager Plan.

Sheriff Otto Ray, Democratic mayoralty candidate, will talk on “The Evils of Machine Rule” at an old fashioned campaign meeting at 8 o'clock tonight at Cadle

Tabernacle. The meeting is sponsored by Machine Busters Inc. : Other Democratic political developments include: 1. Reginald H. Sullivan’s mayoralty candidacy was indorsed by the Democratic Veterans of Marion County in a meeting at Democratic County headquarters. A resolution adopted by the group also was adopted by the Democratic Veteran Ward Chairmen. 2. Support of the City Manager plan: was reiterated by Edward O. Snethen, mayoralty candidate, in an address last night before the Toastmasters’ Club. 3. Municipal Court Judge Wilfred Bradshaw, candidate for judge of Juvenile Court, addressing five North Side meetings last night, said “modern, rather than medieval methods” are needed in Juvenile Court. 4. Labor's support of Dewey E. Myers for judge of Criminal Court was urged by Carl Vestal, business agent for the Structural Iron Workers’ Union, in an address last night. 5. Candidacy of Criminal Court Judge Frank P. Baker for renomination was backed by Harold K. Basicider, attorney, in a campaign alk.

Bradshaw Charges Failure

Describing the Juvenile Court, Judge Bradshav said:

“Marion County is spending $45,000 a year to subsidize what some welfare workers regard as a tragic burlesque in the court which holds above all others a sacred duty to society. :

“Throughout the criticism of public spending, there is one field that has escaped the fire of criticism: That is the one which has as iis objectives the rehabilitation of underprivileged youth. “The $45,000 spent annually would not be excessive if the objectives were being attained. Compare it with the frightening cost of penal institutions packed with inmates, iaany of whom could have been saved from their conflict with society if their early offenses had been studied and treated and corrected by modern, rather than medieval methods. Mr. Vestal, speaking at a meeting at the Myers-for-Criminal-Court-Judge headquarters, 46 N. Pennsylvania St., as “an attorney and a citizen who has kept abreast of the times,” said: “Labor believes in the principles of a judicial system. It has everything to gain and nothing to lose from a judge who is impartial. Labor never has quarreled with the (Turn to Page Three)

TIMES FEATURES | ON INSIDE PAGES

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Commission the order was written in this man-

driving

FRIDAY, APRIL 29, 1938

POWER RATES ~ BY $460,000

Users of 75 and More K. W. H. Per Month to Save 15 and More Cents.

EFFECTIVE ON MAY 15

Charges Are Retained for Two Lowest Consumption Brackets by P. S. C.

Light bills for residential users of 75 and more kilowatt hours are to be reduced 15 and more cents a month it was announced today under terms of an Indiana Public Service Commission order which finally disposed of the five-year-old Indianapolis Power & Light Co. rate case. : : The new rate schedules, which are to apply to both residential and commercial users, were ordered effective on bills issued by the company beginning May 15. It is estimated that the total annual rate reduction to be received by consumers under the order will be approximately $460,000. This is the third time since 1934 that the Commission has ordered light rate reductions.

Low Bracket Rates Kept

Since the order retains the present rate for the two lowest consumption brackets, the residential reductions affect only patrons consuming only 60 or more kilowatt hours a month. ‘Largest reductions are in the higher consumption brackets, and members explained

ner to encourage greater use of electric energy. A comparative table prepared today by Commission accountants shows the savings to both residential and commercial consumers at various consumption levels as follows:

RESIDENTIAL Con wl tion New Charge 3 é $3.00

Old Charge oe 3.38

3.53 4.40 . 5.85

15 11:50 16.90 COMMERCIAL hr 13.75

21.35 40.35

70.35 .50 160.35 142.50 The Commission also fixed ‘the ntility’s property valuation, including both tangibles and intangibles, at $50,000,000 and decided the fair, rate of return on this property was 6 per cent per annum. , It was explained that the new net residential service rates applies to. private residences and single apartments in Beech Grove, Speedway and Woodruff Place, as well as Indianapolis. .

hour for any part of the first 30 kilowatt hours consumed a month and 4.5 cents a kilowatt hour for any part of the next 30 hours remained unchanged in the residential rate. Above that consumption, the order fixes the rate at 2.5 cents.a kilowatt hour for any part of the next 60 hours consumed in a month, and 2 cents a kilowatt hour for all in excess of 120 hours. The minimum charge a meter was kept at 75 cents net a month. The old schedule which contained the same charges for the first two brackets was 3.5 cents an hour for the next 40 kilowatt hours and 2.5 an how for all in excess of 100 kilowatt hours used in a month.

New Commercial Rates

New rates for commercial consumers follow: First 30 k. w. h. per month, 5.5 cents each; next 70 k. w. h, 45 cents each; next 100 k. w. h, 4 cents each; next 300,

each, and all over 3000 at 2.5 cents each. Minimum charges were not revised. Foe The former commercial rate was: First 50 k. w. h. per month, 5.5 cents each; next 50 k. w. h., 5 cents each; next 100 k. w. h, 4.7 cents each; next 800 k. w. h., 3.8 cents each, and all in excess of 1000 k. w. h., 3 cents each. . Commission members fixed th new suburban and rural residential rate to conform with the Indianapolis residential rate except for the first bracket. For any part of the first 30 k. w. h. a month, suburban users are to pay 6 cents each hour, instead of 5.5 cents, the Indianapolis figure. The industrial rate was not revised. Commission members in addition to Mr. McCart are Moie Cook and Fred Bays. All three participated in drafting the final order.

FIVE KILLED IN CRASH

SAGINAW, Mich. April 29. (U. P.) —Five persons were killed today and three others critically injured when two automobiles crashed headon eight miles south of here on the Dixie Highway. : The dead were J. B. Hammond and George Ravelock, Flint; Theo- | dore Napieralski, Bay City; Helen Napp, Detroit; Walter or Tony Poczentek, address unfnown.

Mrs. Ralph Cooper, wife of a Hendricks County farmer, was killed this afternoon when the car she was was struck by a westbound Pennsylvania passenger train at

HERE ARE CUT |

The rates of 5.5 cents a kilowatt |

3.5 cents each; next 2500, 3 cents}

Leads 3d Party

fo Times-Acme “Telephoto. Governor Philip La Follette

CRUSADING ZEAL GUIDES BACKERS

Dream Turns to Reality for ‘Two Fiery Sons of Old Bob La Follette.

By THOMAS L. STOKES Times Special Writer MADISON, Wis.,, April 29.—The day is here! * That event to which the La Follette brothers, Bob and Phil, have looked for years has become a reality—the launching of a new political movement such as their father undertook in 1924. It is being born in in a manger, after a manner of speaking, for here in this stock pavilion of the University of Wisconsin, where 4000 sol-emn-visaged citizens gather to celebrate the occasion, prize cattle from the state’s rich dairy farms are wont to parade with their blue ribbons. < The feet of the assemblage scrape against earth sprinkled with sawdust, and there is a smell of the earth. Religion and patriotism blend as a new crusade sets out. = .° “Glory, - glory hallelujah!" the crowd sings as it awaits its champion a Ty an : ’ ' .,.. Hero Appears Suddenly the mammoth pavilion is filled with thunder. From the rear it comes. A drum-and-bugle corps of the American Legion swings smartly down the aisle, tin hats gleaming. The ‘sound is deaf-

g. : 5 Religion and patriotism—and a symbol. For hanging high over the speakers’ platform is the symbol of the National Progressives of America— a huge circle with a cross mark, the circle ‘red, ' the cross mark blue against a white background. Members: of the new party are already wearing the symbol on their lapels. About the base of the high platform, in red sweaters with white “W’s,” sits the University of Wisconsin football team. There is a noise about the entrance to the right and a ripple of applause. The hero is here. There is: a scattered handclapping as he walks swiftly up the platform steps, waving his hand. He is a slightly built. electric gentleman, this man of 41. His graying pompadour recalls the father who also led a third party. : Not Always Roosevelt The audience. is. restless through the introductory speech by Judge Alvin C.:Reis of Dane County. He links the careers of the La Follettes, father and son. The father started his career as Prosecutor for Dane County. The son followed his footsteps. 4 Judge Reis praises Franklin D. Roosevelt as a man who rescued the country from chaos, and the crowd cheers. But Mr. Roosevelt can't always be President, he says, and now the National Progressives of America have organized to carry on the liberal tradition. He finishes, and introduces: “Phil La Follette.” Without waiting for the applause (Turn to Page Seven) ;

BULLETIN

William O. Lynch, Indiana University, was scheduled to be elected president of the Mississippi Valley Historical Association this afternoon.

(Editorial, Page 18) ‘By JOE COLLIEER

Spinach really got its AB degree as an American health ‘food

from Oberlin College, and it is only fair, Robert S. Fletcher, of Oberlin, told the Mississippi Valley Historical Association this afternoon, for the nation to know the circumstances. - Bathtubs and outdoor exercise were classmates of spinach and

orange juice was an undergraduate

which was to make its mark on the health consciousness of the nation later, Dr. Fletcher said. All of them were the teacher’s pets of Dr. Sylvester Graham, Oberlin president, who launched a reform known as Grahamism which was intended to do away with all habits and practices harmful to bodily health. TE ~ He appealed to his students and

other people to avoid a meat diet and eat vegetables exclusively, to

Clayton. The car was grassed wave/

avoid rich pastries and all spices to

Matter

Entered as Second-Class Ind.

at Postoffice, Indianapolis,

Brotherhood Chief Declares Move Unjustified.

TALKS WITHF.D.R.

Opposition Here Is Shaping; 3500 Affected.

WASHINGTON, April 29 (U. P)). —President George Harrison of the Railway Labor Executives Association today condemned the railroad move for a rail wage reduction after a White House conference with President Roosevelt. ; Mr. Harrison told the President flatly that the railroad workers will not accept pay cuts. “I told Mr. Roosevelt that we will resist the carriers’ efforts,” he said. He pointed out -that no strike crisis could arise for several months because of the procedure of negotiation and mediation required by the Railway Labor Act. Notice Must Be Served Here's the procedure which must pe followed under the Railway Lapor Act to put into effect wage cut: Each line shall serve notice upon each class of employees not later than May 14. Representatives of individual railroads and employees will meet to discuss the cut. If they do not agree, the employees may take the question to the National Mediation

Board. If mediation fails, either side may ask for appointment of an arbi-

trator. ‘ If the arbitrator fails to effect a settlement, the matter then will go to the President's fact-finding board; which must make a report within 30 days. If no report is made within that period, a 30-day grace period shall ensue. After that the brotherhoods would be free to strike if they wished to continue to oppose the wage reduction. ; Mr. Harrison said: * «I am disappointed. that the railroads would undertake to launch a move to cut wages and dry up purchasing power in view of the President’s efforts to increage purchasing power. ¢ “The railroad probiem is not as acute as many of their-representa-tives are endeavoring to make the public believe.

Fight on Reduction Held Certain Here

Martin Miller, representative of the Indiana Brotherhood of Railway Trainmen, said today that any attempt of railroad management to reduce wages will be fought by labor organizations and predicted failure for the move. The American Association of Railroads, meeting in Chicago, today voted to ask a reduction of 15 per cent in wages effective July 1. Mr. Miller said contracts between railroads and labor all contain provision for opening negotiations for a change in the contracts. “The vote for a reduction in wages is a move on the part of the carriers to influence Congress, now ‘considering the railroad problem with a view to financial aid,” Mr. Miller said. “All railroad labor organizations, almost to a man, will oppose it because the cost of living has not decreased any, and I predict there will be no reduction. “It is also an attempt on the part of the roads to cover some of their financial blunders in the last 12 years during which they have spent $180,000,000 for lobbying.” Mr. Martin said there are from 3500 to 5000 railroads workers in Marion County. Management esti-

HOME |

FINAL |

hak

PRICE THREE CENTS |

NATIONAL AFFAIRS

RAIL EXECUTIVES demand wage cuts July 1.

LABOR LEADERS say reductions will be fought.

MINTON bill treated as joke by President.

ANTITRUST policy of New Deal outlined.

ROOSEVELT demands more battleships.

WPA must stay out of politics, Hopkins orders.

BONDS oversubscribed.

SOCIAL SECURITY payments before 1942 asked.

two

(Editorial, Page 18)

MINTON PRESS CHARGE FOUGHT

Former Hoosier Chosen to Co-ordinate Spending Program.

BULLETIN

WASHINGTON, April 29 (U. P.). — The House Rules Committee today disregarded a virtual mandate from President Roosevelt and voted to bottle the new wage-hour bill in committee for the remainder of the session. The vote was 8 to 6. Rep. Arthur Greenwood (D. Ind.) voted with the minority.

WASHINGTON, April 29 (U. P). —Senator Burke (D. Neb.) defended the press today against the charge of Senator Minton (D. Ind.) that it sought to “throttle and strangle” free speech. “Whenever I find anyone who besaid; “I can put my finger-on someone who, it ‘he had his way, would limit the expression of anyoné who takes a different view from his. “The overwhelming majority of the people have no sympathy for or approval of these attacks upon the press cf the country. “Everyone, even those who are leading the hounds against the

| press, will have to admit that with-

out an untrammeled press this country could not go the way we want it to go.” Senator Burke’s defense was made after Senator Minton, late yesterday afternoon from the Senale floor, attacked several metropolitan newspapers and the American Newspaper Publishers’ Association, which had received from its radio committee a report asserting that the press must “guard against any encroachment upon American democracy by the Federal Government with radio as an instrument of political power.” Asked about the Minton bill at his press conference today, the President jokingly replied that he was trying to cut down the cost of Government and did not want to build more prisons. A New Deal Senator and Senate Lobby Committee chairman, Senator Minton described this attitude as “unmitigated gall.” He .intro(Turn to Page Seven)

FAIR, WARMER DUE IN CITY TOMOROW

TEMPERATURES

53 10 a. m.... 53 1ll a.m... 8a. m... 52 12 (Noon). 61 9a m... 54 1p m... 64

The Weather Bureau today predicted fair and warmer weather for Saturday shoppers, after fair, but

56 59

6a m... Ta m...

mates run from 2500 to 3500.

sleep long enough and exercise in

the open air. From 1840 to 1841 there was no ‘meat diet available at Oberlin. Then ‘the townspeople objected and the thing was abandoned. That, and the fact that John W. Kern Sr. was sent to the Senate from Indiana in 1911 on an erroneously counted ballot were the highlights of the 31st annual meeting of the Association which began yesterday and will end tomorrow. ) The Kern story was revealed b Charles M. Thomas, Ohio State

time to his knowledge the circumstances have been known. 2 ' “Governor Marsimll,” Dr. Thomas reported, “proposed that the delegates at. the Democratic State Convention in 1910 formally express & choice for some one Democrat for U. S. Senator, and commit the party to choose him if the party won a majority vote in the November eiection. er ; “The people of the state voting the Democratic ticket then would know whom they were supporting for senator, and the decision would not have to have to be made in a closed caucus.

University, who said it is the first |posed

“The plan encountered much op- | af

position. Senator Shively was

slightly cooler weather here tonight.

Spinach ‘Graduated’ at Oberlin as Health Food, Historians Are Told

to get Governor Marshall to withdraw his proposition. Taggart again was seeking the senatorship and newspapers reported that if adopted the plan would eliminate him &s a candidate. “Governor Marshall refused to withdraw the plan and the fight ‘went on as the people selected their delegates to the convention. The convention met and the sides were so evenly matched that no one could tell where the plan stood. After much bickering Taggart prothe convention vote on the plan itself as the first , order of

| business and the vote was so close

that the result was not known until the last county was counted.

“Then it was announced that the plan had won by a margin of 15

votes in a total of over 1700. Tag- |! ‘gart withdrew his own candidacy in

favor of Kern who was named on the fourth ballot. ; ; “It is believed it is the first time this fact has been published. The vote of one county was incorrectly tabulated during the balloting in reversing the re-

rates the press,” Senator Burke

5 PER CENT CUT IN PAY IS VOTED BY RAIL HEADS; WELL FIGHT, LABOR

SAYS

Reduction Ordered - Into Effect on ‘ July 1.

142 ROADS ACT

Financial Condition Is Critical, Say Carriers.

CHICAGO, April 29 (U. P) ~The American Association of Railroads today voted to notify the railroad

brotherhoods of 15 per cent wage cut effective July 1. a John J. Pelley, chairman of the

Association which represents 142 Class 1 roads, estimated the cub would effect a saving of $250,000,000 annually. The cut was agreed upon yester= day by the board of directors of the Association and accepted by the general membership today. - Notice of the resolution will be served upon the brotherhoods with. whom the roads have contracts. : The reduction will apply to all classes of railroad labor. “Because of the critical financial condition of the railroads at the beginning of 1932 (a situation less desperate than at present) the employees agreed in January -of that year to a wage tieduction of 10 per cent,” the Association spokesman said. Wage Index Cut in 1932

“In other words the index of hourly wage payments, effective Feb. 1, 1932, was reduced from 100 to 90. Through the gradual restora ton of the deduction, this index was

wage increases granted in fr dn Sh 3. ins So per cent higher thon in tion ~ riod.” . : - Explaining the reduction voted today, the spokesman added: “Present conditions in the raile way industry are matters of come mon knowledge and great national concern. A reduction in railway

Nase rates: is necessary on account

1. Loss of revenue; (A) decline in traffic; (B) diversion of traffic to competing forms of transportation, bus. truck, waterway, and airlines; (C) inadequacy of recent freight decisions of the Interstate Commerce. Commission.

Operating Costs Up

2. Increases “in operating costs (a) pay roll expenses on account of the 1937 wage increases and adjuste ments; costly and restrictive: interpretations placed upon working rules by adjustment. boards, pare

portation group; (b) legislative exe penses on account of State full crew, train limit bills; the cost of continually opposing State and Federal limitation, viz.; the train limit, full crew, six hour day, etc.: (¢) tax exe penses on account of increases in municipal, County and Federal taxes; Railroad Retirement : Act.; Social Security Act; State uneme ployment taxes; (d) materials and supplies on account of the general upward. swing in manufacturers’ ‘prices. : : : “In the determination of the amount of wage reduction to be sought, serious consideration was given to the present financial cone dition of the carriers. While such consideration may be primarily directed to current figures of net earnings, attention ‘should also be directed to the constituents ele= ments. : : “These in effect determine the level of these net earnings—the elee ments of traffic volume, of rate levels, of labor costs, of material and supply prices, and of taxes.

SCHOOL SALARIES INCREASED $35,000

The School Board today granted 1938-39 salary increases totaling $35,000 annually to 365 of Indians apolis’ 2000 teachers, but again suse pended automatic increases for all teachers. Sixty-three teachers affected are those whose salaries have been be. low the minimums required by the Indiana Minimum Salary Law. The rest will receive increases of varying amounts “whose salaries over a period of years have not been on a level with salaries paid to-their associates of equal training and record of service to the Indianapolis schol) ae Board said. of the salary increases will be absorbed by economies which will be effected in other budget items, it was announced. i A salary schedule adopted in 1927 provided for automatic increases, bug it was suspended in 1931 and every year since. : rt The schedule adopted today

imum es ranging $1475 to $1650 depending on the len haing ength of

effect during the complete deduce * ||

ticularly for employees in the transe =