Indianapolis Times, Indianapolis, Marion County, 14 June 1939 — Page 20

“PAGE 20

FCC DECLARES BELL SYSTEM'S ~ PROFITS ‘HIGH’

Wider Control Sought From |

Congress Over Huge Telephone Industry.

WASHINGTON, June 14 (U. P). — The Federal Communications Commission asked Congress today for wider control over the multi-billion-dollar Bell telephone system which it charged is making “unusual” profits. The Commission submitted to Congress a long report covering its investigation of the $6,000,000,000 telephone industry, dominated by the American Telephone & Telegraph Co. the operating associates of which make up the Bell system. The investigation found that the Bell system averaged profits of 7 per cent per year on its investment from 1913 to 1935. This, the FCC charged, appears “unusually high for a system engaged in rendering public service.” Other charges cited included expensive cultivation of public good will; “improper influence” on legislative and regulatory bodies; and the withholding of patents capable of improving service and decreasing cost.

Subsidiary Criticized The report criticized the opera-|

tions of the Western Electric Co. |

wholly-owned , manufacturing sub-! sidiary of the A. T. & T. Co., whose net earnings, it said, averaged over 21 per cent annually.

The A. T. & T. Co, management] controls prices of telephone ap-| paratus and equipment purchased by. its operating subsidiaries through | its ownership of Western Electric, | the report said. This control, itl added, “may be repugnant to the| spirit of the antitrust laws of the| United States.” It suggested that competition] would be desirable in the field of} equipment manufactur: and might result in lower prices and higher efficiency for telephone users,

Lists Changes Desired

The Commission that the Communications Act of 1934 be amended to:

basic cost accounting methods to be! followed by manufacturing com-| panies under contract with the Bell! System to permit the Federal] agency to determine if equipment prices are reasonable. | 2. Make applications for consoli-| dations of telephone companies subject to the act mandatory. The law now makes such applications op-| tional. | 3. Require approval by the Com-| mission of acquisitions of the stock] of a company by another company | for purposes of control. 4 Authorize the Commission to order the exchange of patent rights, | upon payment of reasonable com-| pensation when required by public interest. | 5. Require Commission approval of the issuance or refunding of se-| curities of telephone companies. | 6. Prevent the abandonment of interstate lines by telephone com-| panies without authorization from the Commission. |

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Chadwick Home From Hawaii Trip

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LOGAL SCHOOL RIGHTS UPHELD

‘Just Notion,’ Glass Basher Tells Court

— WEDNESDAY, JUNE 14, sents five different states. The boys’ camp will continue seven weeks and will be followed by a “sailor= ette and cowgirl camp.” John D. McLean Jr. is to nave charge of the ranch.

SUMMER SCHOOL AT |ANNOUNGE PROGRAM omer esse we | AT CAMP GRIDLEY

Summer school classes began at 7:30 a. m. today at Butler University. Registration ended yes-| Times Special

Supreme Court Rules State

terday. University offices will be open from 7:30 a. m. until 4:30 p. m.

BASS LAKE, Ind, June 14-—The

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Gridley, Naval Camp and Dude Ranch is to be opened Sunday with

Times Photo.

Stephen Chadwick, American Legion national commanaer, returning to Indianapolis from a 12.000-mile journey to Hawaii, urged that the new naval budget contain funds to improve the dry dock facilities

of Pearl Harbor.

He said the island is practically “impregnable.”

Mr.

Chadwick will speak at the first annual dinner-dance and picnic of the Indianapolis Bar Association tonight at the Indianapolis Country

| Club. His subject will be “The Congress and Our Liberties, Then and

Now.” Several hundred attorneys from all over the state are expected

to attend. Mr. Chadwick also will

speak at the American Bar Asso-

ciation meeting at San Francisco on July 13.

Juvenile Arrests Double; Children Getting Better

Police are arresting nearly twice as many Indianapolis children for

Bureau reveal.

recommended | delinquency now as they were a year ago, records of the Juvenile Aid

Last month, 210 children, 178 boys and 32 girls, were taken to police 1. Authorize the FCC to prescribe headquarters for 18 different offenses. In May, 1938, only 130 children,

reported to the Safety Board. Last month 39 boys and 15 girls were sent to the juvenile home, while in May, last year, 12 boys and 11 girls were sent to the home, or about half as many. Police, however, attribute the increase in arrests to increased efficiency in the Pclice Department, rather than to an increase in the number of children who are “going wrong.”

Children ‘Getting Better’

Patrolman George Stricker, in| charge of the Juvenile Aid Bureau] while Sergt. Weddle is on vacation, | asserted that the children of In-| dianapolis are “getting better,” if}

| anything.

“School teachers, parents and po-! lice officers now know what the Ju-| venile Aid Bureau is for, while in May last year the Bureau was only

two months old,” Patrolman Stricker explained. The bureau was established in March, 1938, and handles boys under 16 and girls under 18. The 210 children were arrested last month for the following offenses: Stealing, 59; burglary, 12; vehicle taking, six; runaway, 30; incorrigible, seven; sex offenses, nine; trespassing, 17; questioning, {15; truancy, 12; vandalism, 11; vio{late probation, five; traffic viola- | tion, two; shooting air rifle, two; | hopping trains, one; injury to per- | son, eight; mischief, three; receiving stolen goods, one.

Many Sent to Home

Sixteen of the children were sent to the juvenile home for running away from home, nine for stealing, seven for burglary, five for vehicle taking, four apiece for being incorrigible and dependents; three for violation of probation; two for questioning, and one each for sex offense, truancy, trespassing and receiving stolen goods. A total of 798 children have been arrested since Jan. 1, 1939, the records showed. Juvenile Court Judge Wilfred J. Bradshaw said that he had not been in his present position long enough to determine if the increase in arrests were due to the children themselves or to different police tactics. He took office Jan. 1.

V. OF F. W. OPENS STATE CONVENTION

Times Special EVANSVILLE, Ind, June 14— War veterans converged on Evansville today for the annual state encampment of the Indiana Department of Veterans of Foreign Wars, Meetings were to open here at noon with a luncheon, to be followed by memorial and business sessions. Tomorrow . members will go for a boat trip. The week's business session will be climaxed on Saturday with the annual election.

HOOSIER GIRL; 16, KILLED BY TRAIN

BRISTOL, Ind, June 14 (U. P) — Funeral services will be held Friday for Bonnie Draime, 16, of near Bristol, who was fatally injured Monday when a car she was driving was struck by a New York Central train. Her sister, Joyce Draime, 14, is in SC igs condition in an Elkhart hospital.

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1101 of them boys and 29 girls, were arrested, Sergt. Charles E. Weddle

ROYAL PAIR MAKES TRIP ON DESTROYER

CHARLOTTETOWN, P. E I, June 14 (U. P).—King George and Queen Elizabeth arrive today aboard a Canadian destroyer to pay their respects to the smallest provirice of Britain’s largest dominion. It was the second to the last day of the royal tour of Canada and the United States.

Germans ‘Learn’ U. S. Had Martial Law

BERLIN, June 14 (U. P).—QGermans have “learned” from their newspapers that during the visit of

the King and Queen of Great Britain to the United States, police precautions verging on a state of mar-

{tial law were necessary to guaran-

tee the royal couple a minimum of safety. Germans also read that Washington’s reception of the King and Queen was almost a “social catastrope” because of the number of Congressmen who absented themselves.

Approval of Teachers’ Contracts Illegal.

The right of self-government by local, county and township uniis

‘was upheld by the Indiana Supreme

Court in a decision handed down today. The high court declared unconstitutional a provision in a 1933 act regulating the Common Schoo! Relief Fund. The provision, declared invalid, provided that teachers’ contracts in State aid schools must have the approval of the State Board of Education. The Supreme Court ruled that the provision was unconstitutional because it was not embraced in the title of the Act and therefore is nul and void. Several months ago a 1939 law providing for a hospttal insurance plan in Indiana was declared unconstitutional for the same reason and was vetoed by Governor Townsend. The provision in the 1933 school act “would indicate that the Legislature intended that control of appointment of teachers be neid by the State department. We think not,” the decision stated. The decision was given in a case of three township school teachers in Pike County who recovered salary damages from a township school corporation which had discharged the teachers in the midis of a term. A lower court awarded the teachers back salary on their contracts. The case was appealed by school officials who contended that the teachers’ contracts were ant approved by the Department of Education as provided in the controversial section of the school fund law. The Supreme Court affirmed the judgment awarded the teachers.

LAWRENCEVILLE, Ill, June 14 (U. P.).—John Gough of Bridgeport, Ill, today started a six-month term at the state penal farm because he hurled two pieces of concrete through a store window Monday. He was unable to explain to the court why he threw the rocks. Police said he was not drunk, and a physician failed to discover any reason for it. “I just took a notion. I don’t know why,” Gough told the court.

DOGS QUARANTINED IN SHELBY COUNTY

SHELBYVILLE, Ind, June 14 (U. P.).—A strict quarantine on all Shelby County dogs was in force today on orders of Verne K. Harvey, Director of the State Division of Public Health. Police were ordered to kill all dogs running loose and legal notices of the quarantine to be effective for six months were posted throughout the county. Dr. Harvey's order followed a quarantine placed on Hanover Township several weeks ago. Six persons are undergoing treatment for rabies.

LEGION CARNIVAL SET

Times Special SHERIDAN, Ind, June 14—The American Legion post here is to sponsor a five-day carnival at Legion Park starting Tuesday and continuing through June 24. The park has been wired for lights so that night activities can be held.

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Italy Hears First Lady Served Buffalo Meat

ROME, June 14 (U. P.) .—Italian newspapers, reporting on the British royal visit to the United States, have featured a dispatch saying that Mrs. Franklin D. Roosevelt, after quarreling with her mother-in-law, served the royal guests sausages made of buffalo meat.

NUTRITION CAMP OPENS TOMORROW

The Julia Jameson Nutrition Camp at Bridgeport will open tomorrow for its 12th season. It will close Aug. 19. The camp will be attended by about 100 undernourished children from Indianapolis and Marion County. The camp is sponsored by th Marion County Tuberculosis Association. It is financed by voluntary contributions and the sale of Christmas Seals. About 800 have been cared for at the camp in 11 years.

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