Indianapolis Times, Indianapolis, Marion County, 25 November 1938 — Page 18

The Indianap olis ‘Times

ROY W. HOWARD

President

. Owned and published - daily (except Sunday) by The Indianapolis’ Times Publishing Co, 214 W. - Maryland St.

~ Member of United Press, Scripps - Howard Newspaper Alliance, NEA

(A Ianan NEWSPAPER)

LUDWELL DENNY MARK FERREE Business Manager

Price in Marion County, 3 cents a copy. delivered by carrier, 12 cents a week.

Mail subscription rates in Indiana, $3 a year; outside of Indiana, 65 cents a month.

Service, and Audit Bu-

.reau of Circulations.

Rlley 5551

+

Give I4ght and the People Will Find Their own Way

FRIDAY, NOVEMBER 2, 1938

ROBERT MALOTT FLETCHER HE death of Robert Malott Fletcher brings to a close a fine and distinguished career in Indianapolis banking

history.

Descended from a line of bankers on both sides of his

family, Mr. Fletcher probably found it only natural to follow a career that was traditional in the family. With the exception of one break in service—a year spent in the Spanish- ~ American War—he served the Indiana National Bank continuously for 42 years. He was vice president and cashier

‘when he died.

Modest, friendly and unselfish, his human assets were no less variable to the Indiana National Bank than the material assets which he succeeded in doubling under his regime as cashier. Humble and wealthy alike will miss his friendly interest and his willingness to be of personal

assistance.

DEBTS AND TAXES

HE Twentieth Century Fund's staff of economists and ‘experts has concluded an ambitious study of the country’s debt structure, which is published under the title,

; “Debts and Recovery.” As was to be expected, the principal finding is that we all—as individuals, business concerns and Government ‘bodies—owe each other a lot of money, and that in times of depression the fixed interest charges are more than we can bear and the practice of paying off old debts by new ‘borrowings breaks down. Many of the study’s recommendations are worth discussing, but we comment on only two. They relate to how our present tax laws encourage both businesses and governments to go into debt. The Federal Income Tax Law, for instance, permits a corporation to deduct interest it pays to bondholders from taxable income, but it can’t deduct the dividends—if any— it pays to stockholders. The bondholder may get a 5 per cent return on his investment—and he is paid first—but that income is taxed only once, as personal income of the

-bondholder. But income left for distribution to stockholders

(it may be only a fraction of 1 per cent of investment) is . taxed first as corporate income (running as high as 19 per

cent) and then taxed again as the personal income of the ‘stockholder.

This, of course, encourages corporations to borrow from “Paul and then borrow from Peter to pay Paul, and avoid the

tax collector.

Witness the never diminished debt of our

railroads. And it encourages people with capital to become

lenders of money- rather than investors in enterprise.

All

of which doesn’t quite make sense in an economic system whose continued ticking depends upon the continued taking

of risks.

Recommendation: 3

Place enterprise income on a better

basis of tax equality with money lending income. Another slant on that same tendency of our laws to discourage risk taking is.found ‘in what the Twentieth Century Fund experts say about the practice of granting tax exemptions of governmental securities: “Tax exemption for Government securities has two un-

desirable effects on the financial structure.

In the first

. place, by reducing the nominal interest burden, it makes it “unhealthily easy for Government bodies to go into debt. In ‘the second place, it makes debt investment especially attractive to just those, investors who could best afford to - invest in equities. Persons whose property is large enough to give protection against equity risks through diversifica- ~ tion are also persons whose incomes are large enough to be

subject to high surtax rates.

Accordingly, they cannot

afford to invest too much in equities so long as tax-exempt “bonds can be bought.”

8 Recommendation: to prohibit future issues of tax-exempt securities.

Support President Roosevelt's plan

“THE WHOLE THING IS AHEAD”

(CHARLES F. KETTERIN G, to whose scientific researches American industry owes an incalculable debt, made a radio talk the other day that struck us as one of the most “truly optimistic utterances in a long time. : His theme was that all the advances of scientists and .industrialists to date, great as they have been, are barely “a step toward what can be accomplished. He was answering ‘—though he didn’t say so—the people who moan that every-

oo ;thing has been invented, that our natural resources are running out, and that we face a future of drab stagnation

: without fine new opportunities or even work ehough to keep _everybody busy. He told ef a conversation with engineer_ing friends who wondered what would be done when the sources of gasoline are exhausted. 2 “What is gasoline?’ Mr.- Kettering athed them, The “reply was, “Petroleum.” : : “Well, what is petroleum?” “The product of decaying vegetable matter.”

“How was the vegetable matter produced?”

“By the

growth of plants.” ; “What made the plants grow?” “The rays of the sun.” “And there,” said the scientist, “you have it. We run our automobiles now by the stored up radiant heat of the sun. All we need is to take out a few steps here and there to run them by ray-transmitted power direct. “If we scientists and industrialists could get out of “our minds the idea that we know very much about anything, ‘and realize that the whole thing is ahead of us, then I think we would have a shortage of labor in a brief time.”

FOR THE BETTER, TOO

F you aren't convinced that times are changing in this country, consider the “elections” just held by the 3t. Louis Society for Preservation of Barbershop Harmony. The members balloted on the 20 songs which they 0! sider most suitable for vocal harmonising. And there

Aviation By Maj. Al Williams America. Needs to Spend More on Research or Our Own Airlines

Soon Will Be Using Foreign Planes. | |

(Batting for Westbrook Pegler)

EW YORK, Nov. 25—“If the present rate of progress in agronautical research continues

abroad and if we do not speed up our studies, I pre- |

dict that five years from now our airlines will be buys ing foreign airplanes.”. That startling statement way made by one of the

foremost authorities on. aeronautical research in this | ¢

country. Coming from him, it froze me for a moment. 0 : My informant, whose name I withhold to preclude unjust attacks on his patriotism by those who ignore all foreign developments returned recently from a tour of Europe. * My own recent tour concentrated on the finished

products. of aircraft factories and the men who fly

them, but he spent all his time in: the research laboratories. At first glance, one might think his statement a bitter indictment of our own aeronautical research work, but on a moment's reflection it is easy to understand why a country that is and has been in international, economic, and racial turmoil for the past few years is so far ahead. The choice constantly before Europeans is: “Succeed or perish.” 8s 8 8 ’ ENCE there's no fooling on this aeronautical ‘Tesearch matter. And, further, there's no fooling about using the products of research as fast as they are turned out over there.

We have an excellent research laboratory at Lang1 ley Field, Va., operated by the National Advisory

Committee for Aeronautics, the Government’s independent scientific body Sgvoled to the problems of flight.

still land at 70 miles an hour, have bad stalling and spinning characteristics, and are powered with gaso-

line engines that are being pushed to the limit, No law or policy requires an aircraft or engine manufacturer to use the findings of these research engineers; no immediate necessity to apply them; no justification for the cost of junking the jigs and jdies and manufacturing procedure we now have when we know that our aircraft, operated intelligently, are as safe as any in the world.

UT on the other side, where the tempo is faster |

.and the outlook more menacing, progress in research and the immediate application of this research

to practical aircraft is going ahead by leaps. We've | got to concentrate more on our research, not treat it

as something to cut out when funds become short. Our research people have made good use of every dollar appropriated." But there must be no more haggling over budget limitations. Give the N. A. C. A. boys some money, and in the meantime let’s hope that the new Civil Aeronautics Authority people will appreciate what is being done at Langley Field and make it mandatory for manufacturers to use the results of research the moment they have proved practical. This must be done fqr greater safety and efficiency; otherwise, we shall find ourselves flying in foreignbuilt airliners, just as we now sail the seas in foreignbuilt ships.

Business By John T. Flynn

U. S. Should Cut Old-Age Pension Tax ‘and End "Phantom" Reserve.

EW YORK, Nov. 25 ~A report from Washington is that the Social Security Advisory Council is going to recommend that the United States share in the old-age pension tax. At present the employer pays 1 per cent, the employee 1 per cent. - The plan is to have the employer, the employee and fhe United States Government each pay one-third of the tax, the tax, however, to remain at the same level as now. . This sounds like a great concession—a liberalization of the old-age tax system. But like all the proposals as well as arrangements of the Federal Government with reference to .old-age pension finance this has all the earmarks of a tricky plan. On its face it sounds quite generous. In fact it is a plan to divert attention from a most vicious tax. Every authority on old-age pensions is agreed that the tax imposed by the Government should be large enough to pay the cost of old-age pensions and no larger. A tax of % per cent on worker and % per cent -on employer would produce far more than enough for many years. If such a tax were levied for five years and then raised to 1 per cent each for five years more, this would soon run info quite a few billions more than necessary to pay all the old-age benefits for the next 10 years and leave a big reserve.

Subject of Criticism

The tax now is 1 per cent each and it will be at this rate during 1939 when it will rise to 1% per cent each. Under this plan the Government has collected more than 700 million dollars more than it has spent. By the end of 1939 it will have collected more than a billion and a half more than it will have spent. By the end.of 1942 it will have collected nearly four billion more than it will have spent. These four billions are supposed to be part of a “reserve.” But this is a Pickwickian reserve composed of phantom dollars, since the Government is spending this money as fast as it is collected. ° There has been grave criticism of a this and a demand for the abolition of this fake reserve account. To meet that now the so-calld Advisory Council is going to recommend that the Government share in one-third the tax. That, of course, is ridiculous. What the Government should do is to put an end to the present oppressive tax on payrolls and employers-and adopt a tax which will be sufficient to meet the costs

_of old-age pensions.

A Woman's Viewpoint BY Mrs. Walter Ferguson:

OMEN have entered ‘the. business ‘world Yor}

"The laboratory's work is ‘Productive. Yet airplanes

The Hoosier Forum

“1 wholly disagree with what you say, but will “defend to the death your right to say it.—Voltaire.

TRADE TREATIES BRING CONFLICT OF OPINION By A Reader The U. . .S.-British-Canadian treaty has been received in:many ways by the U. S. citizenry. Many people believe with Secretary Hull that the trade agreement presages a new era of international amity

and understanding and a great boom in trade. . ; Contrasted with this approval is the sentiment of such opponents as

Governor Aiken of Vermont, who:

said the treaty appears to be a ian “to turn New England solely in recreational area.” Trade experts disagree as to what the result may be. The nations involved will have to wait and see. It strikes us though that the palm for adverse comment must go to some unnamed historian who has observed: - “Leave it to the United States to do things in a big way. Chamberlain lost the World War at Munich, but Hull has gone further back with his trade treaties and lost the Revolution.”

8 8 OUTLINES PROGRAM FOR LEGISLATURE By A Voter

Almost every edition of newspapers these days announces the preparation of bills for the Legislature to enact at its 1939 session. Inasmuch as the legislation is intended for us it seems to me quite proper for a citizen to say what he expects of the Legislature. I look forward to seeing the following legislation enacted: 1. More stringent marriage laws. (I wish a sterilization law were passed, too, so that the hopelessly unfit would not continue to propagate and fill our institutions and drain the public purse, but Dr. Thurman Rice says that the public is not yet ready to accept such legislation.) 2. A food and drug law in conformity with the Federal law. This|:

bill ought to include a clause em-|

powering the State Chemist to publish the results of his findings after analyzing a product, possibly modeled on the act of North Dakota which has proved successful in preventing the manufacture of fraudulent foods, drugs, and cosmetics, (H. V. Darnell, chief of the Food and Drug Bureau, says a model law is being prepared but evidently with-

out the act I have stipulated, for|'

he says it would need a much larger field personnel and staff. I still think we ought to have it though; a State that ean pile up such .enormous surpluses from its gross income tax can surely appropriate a few thousand more to the Health Board. The surplus went to the

(Times readers are invited to express their views in these columns, religious controversies excluded. Make your letter short, so all can ‘have a chance. Letters must be signed, but names will be ‘withheld on request.)

us around by the nose and leaving us without power to say “boo.” . If the Republicans consider themselves to have been given a “mandate” to get these reforms enacted they will be doing the State a definite service. (I was afraid they hadn't been doing anything about that because they expect to inherit the system and use it to their own advantage.) » * =

teachers to see that the children got something in their heads. I hold it just as important that we protect what goes into their 2 | stomachs.) 3. Consolidating overlapping township and county offices. A-little more streamlining there would reduce our taxes and lessen the opportunity for dishonesty in office by that much. 4, Elimination of the port-of-en-try beer importing system. 5. Installation of a complete merit system covering every State employee. Only 10 per cent are now under this plan. 6. Accounting of 2 per cent club funds. 7. Return to the direct primary for nominating State officials and U. S. Senator. These last four items form the

‘foundation of the State House ma-

chine which is to catapult Paul V. McNutt into the White House. Personally I say more power to him in gaining his objective, but I nominate myself a committee of one to see that he does not do so at- the expense: of the citizens of Indiana. These four acts permit the State House organization to pull all of

FALLEN LEAVES

By RUBY STAINBROOK BUTLER

Leaves, crisp and veined and crumpled, stormtossed, brown; So sunburned, dry and seasoned, on the ground O’er nature’s sleeping bosom gently span, Like old and gnarled and useful hu- © man hands.

This tribute, with their passing, can be said: That they have served mankind, though they are dead; . ‘Have sheltered him in sunshine and in rain Can we who tread them, blithely, say the same?

DAILY THOUGHT

The ungodly shall not stand in the judgment, nor sinners: in the Sonfregeiion of the righteous.— Psalms 1:5

NE ungrateful man does an injury to all who stand in need of aid.—Publius Syrus.

State’s boss Tiere.

THINKS DOUG'S MOVIE CAREER IN DANGER By B. C. It may have been mentioned before, but it will do no harm to repeat. Douglas Corrigan has the makings of a great citizen, if he isn’t already one. His movie career may be short, it must be added. For he shows a magnificent inde-

pendence of Hollywood {roth coupled with amazing sense about a lot of things, including money. Corrigan had occasion recently to explain about his salary, simply that

\

which the studio said it' was paying him. “Of course,” he added, “I'm not kicking. It's still a lot of money.” It seems Ww be little short of felonious in Hollywood to admit you're making less money than the studio advertises you are. The immediate result should be greatly improved public relations out of Hollywood and a new crop of press agents whose hair turned white overnight.

s ” s BLAMES ‘HIGHERUPS FOR DEMOCRATIC DEFEAT By Citizen I see by the papers that the Democratic bosses are asking “Who is to blame for the Democratic losses in the last election?” If they'll take a look at their mirrors, theyll see who's to blame. They have. beep given inklings time

and again that'what was wrong with the Democratic party in Indiana was

not flattering information, so dhey’ll have none of it. The public is a good deal like the horse that can be led to water but can’t be made to drink. A great part of the public has lost confidence in the Democratic party of Indiana to be fair and considerate

Federal handouts can elogk the greed and selfishness with which they manipulate the political machine. Their policy has been to mow down opposition instead of making the adjustments demanded. Evidently it hasn’t occurred to them that the public objects to the political streamlining of the McNutt Juggernaut to the detriment of the

stay,” says Miss-Earlhe ‘White, national presi | ’ ER dent of the Federation: of Business and Professional |

Women.

Only the uninformed-or stubborn will disagree with

this ultimatum, and in spite of much talk to the contrary I doubt ‘whether American men really ‘want us to get out. A pretty deflated world it would be if we did, with little business going on. To

Trade reports show ‘that the feminine puyer 3 fur.

nishes the very life blood of industry. Imagine th

all working. women packing up their compacts to 5% Es

home and turn as domestic as their grandmothers— what would be the result? The collapse of thousands of manufacturing concerns, of course, and goodness knows how the office would suffer. It's the person with a steady earning capacity whom every merchant welcomes most warmly, When you add an earning capacity to the usual feminine inclination for gadgets, feathers and a change of fashion every two weeks, you have somebody who is a godsend to wholesaler, retailer, jobber and moneychanger.

Yes, indeed, I know all the arguments on the other

side. Homes are falling to pieces, we hear; children are neglected; romance: and marriage are being destroyed; men are frustrated and le.

miserab, : Frankly, I don’t believe a word .of -it. To be sure,

everybody is somewhat confused, but isn’t that really

because no nation has ever gone through such a period |

of -quick industrial expansion ‘as we have e enced in the last quarter of a century? Epes! That's why, as Miss White

LET'S EXPLORE YOUR MIND

.By DR. ALBERT EDWARD wigGAM

-|things than for little men to do

‘|be staggering to ordinary men but

he is getting half of the $100,000 |

the higherups themselves but it’s|

of the people at large where nol

the floor after him, as his robes

ditions of the partnership. 8 » ” ) EMERSON said, “It is easier - for great men to do great

little things.” Great military commanders have problems that would

they seem to sleep well and eat three square meals a day, whereas the corporal is often worried to the point of nervous breakdown. Great mint hardly seem to have any worries or problems. What makes a thing a “problem” js the feeling of inability to solve it and the more intelligence one has the more he feels he can solve it—provided.he is not an “adult child” emotionally. p 2 8 2 IT IS always justified when ‘done in the search for scientific truth. Many antivi are now alive—and kicking—solely because of vivisection. Most of them are doubtless alive: because of the medicines, antitoxiiis, - pro=

foods, dietetic measures, publie|

did, is a violation of the basic con-|

‘new interests in physical exercise, and

_ FRIDAY, NOV. 2, 1938

Gen. Johnson

Says ~~ ‘Senator O'Mahoney Says Monopoly

Probe Is to Be Objective and Fair And if So Can Serve Useful Purpose,

ASHINGTON, Nov. 25.—More than once this column has spoken of the jitters in several important industries aroused by Senator O’Mahoney’s monopoly investigation. The jitters are real enough, They grow out of Washington gossip and such oute bursts as that of Thurman Arnold, a member of the Senator's committee, threatening to restrict adver= tising by successful companies. : : Recently I had a good talk with the Senator about

this subject. I think I am reasonably skeptical when= ever any politico is speaking, but the Senator sold me completely that his is to be a judicial, impartial, fact finding inquiry. The executive departments are going to be given

an opportunity to make whatever case they have about

bad practices in business. I don’t know anything much the matter with that. The real case for the prosecution is slight and is good against only the 10 per cent chiseling fringe. Ninety per cent of every industry is all right. The Senator says that every industry, under investigation, is to have its day in court and its chance to set forth the truth about every out right charge or subtle insinuation. If that principle is adhered to—and I now believe it is—it seems to me to be a blessing to business rather than a curse. It is a fair chance to clear the record of all hints and whispers. . 2 = J

NE thing to be remembered is that the Congrese sional members of that committee are really in control of its proceedings and thdt they happen to be composed almost entirely of men who stood up for our traditional economic and political system when standing up was as difficult as it ever has been. They are men who made the successful fight against the plan to pack the Supreme Court. It was Senator O’Mahoney who drafted one of the greatest of American state papers—the Senate report against the court-packing plan. This column said at the time, and still thinks, that it was unnecessarily harsh to-

| ward the President, but that does not change the

high character of its statesmanship. Furthermore, I know Mr. O'Mahoney’ personally and well. When he tells me that this investigation‘is not going to degenerate into a prejudiced stpediuon to discredit the American economic system, I know that, so far as he can control it, exactly such will be the case. » tJ ” USINESS should take comfort in the thought that if this were really intended as a sort of a Hugo Black political tom-tom beating, it would have gotten into. action before the elections, It should be assured from the whole history of this movement. It started out to be a purely executive inquisition in an obviously hostile and political atmosphere. Senator O’Mahoney got parliamentary control of it. He tempered its political and menacing aspect by maneuvering it into control of conservative Congressmen rather than of business-baiting executives, He deferred its operation until after the elections and he now has obtained from his committee ,an unanimous resolution that the inquiry be objective and fair. I don’t like to appear too gullible, but I believe that I can confidently assure any industry whose skirts are clean that they have nothing to fear from any unfairness in the O'Mahoney committee, 9

It Seems to Me

By Heywood Broun

Good Example Set by Announcer; Questions Facts After Broadcast.

EW YORK, Nov. 25—In my opinion Donald Flamm and Station WMCA have established an interesting and useful radio precedent in questioning a speaker’s facts after his broadcast, rather than before. Free speech must include the right of any individual to statements of doubtful validity} but it most certainly ought not to offer him protection against challenge. Both halves of this assertion may seem like a reiteration of the obvious, and yet both have frequently been called into question of late. Radio will perform a great deal less than its potential function if it eschews all controversial utterances. The drift is in that direction, and there are several factors which make for the glorification of nambipambiness upon the air. When a speech is made which gets printed in the papers it stands there in type as a target for attack or a rallying point for affirmation. Radio addresses are on record, but, with certain exceptions, they are not easily accessible to the public. Like a wild goose on the wing, a misstatement flies by before even the

keenest hunter can take a shot at it. And, in pass-

ing, the dubious remark stirs currents which may reach to the end of the earth without correction. In the case of sponsored programs the advertiser, almost - inevitably, prefers the commentator on his program to avoid any attitude which may step upon the toes of a possible customer. I am quite willing to admit that there: are several very honorable exceptions, But only the other day a radio executive was telling me mournfully that the life of every forthright commentator is short and not particularly merry along the airways.

It’s All in the Matchmaking

“If he’s any good at all,” he explained, “he’s almost certain to offend somebody, and then nobody wants him.” It was my suggestion that it might be a good idea to throw two gladiators into the ring instead of one. “Why don’t you get a little conservative and a little ‘liberal to split the time and fight it out?” I

inquired.

+ The expert looked at me pityingly and answered? “Of course, we've. thought of that. It's even been tried out upon occasions. ‘So far it hasn't worked too we “You mean they get too bitter in the brawls?® “No,” said the gloomy radio executive. “The trouble is that sometimes the conservative and the liberal agree with each other 100 per cent, and all the listene os yell, ‘Fake fight! Throw those loafers out of the I? ” But that isn’t a good enough objection. Fiascos of such a sort are merely the result of bad matchmake ing.

Watching Your Health

By Dr. Morris Fishbein

FF some years it has been apparent | that & tuberculosis still continues to. be & serious problem among. young women; their death rates from this disease are considerably ‘higher # those. for: young men of the same ages. Many: views have been expressed as to the causes of this apparent increase in tuberculosis among young women. ne It has been presumed, for example, that it was associated with the stringent dieting in which women have indulged in recent yéars. It has ‘been ‘credited to the changes in habits of young women, such as

of industrial occupations, and similar changes. i However, the latest figures assembled by the National Tuberculosis Association indicate that tubercu losis among young women did not increase at the same time as the coming of ‘the so-called “flapp era” but that what has actually happened fs t tuberculosis has been steadily decreasing in all age groups but not decreasing among young women. The authorities of the National Tuberculosis Assoclatiorf are inclined to credit some of the difficulty to the entrance of women into ig They are not inclined to believe that the - ‘has had much to do with it. :

many to be responsible, yet the figures. 1820 a prominent physician blamed tu these causes and certainly the women in 1820 would not be consi scan! ‘these modern times. ee . Thus 3he discarding