Indianapolis Times, Indianapolis, Marion County, 13 August 1948 — Page 1

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Farmers, Dairies Split Milk Hike Story Behind Rise

Told First Time

Today's Eeanotny Menu Winner Page 8 By ROBERT BLOEM Here is the answer to Indianapolis’ $64 question—who got the 2 cents recently added to the price of a quart of milk. The farmer who milks the cows got about half of it. The other half went mainly to Indianapolis dairies who, like the farmer, are struggling eonstantly with rising costs of production, To the Indianapolis Women's Council and organizations and individuals who co-operated with them goes the credit for bringing out the facts. Sifts Mass of Figures But the facts. emerged in ia confused mass of figures and trade methods and were largely buried under charges and coun-ter-chdrges . in accounts of the nvestigation. The Times cleared away the the gccusations, do

to terms of the Jousewife’'s 21 iy and. her On that basis, HOPE SEU Sty s ous To iindianapolis dairies!” do not 21 cents for every

quart of niilk they put into bottles. Reliable trade sources insist approximately half is délivered direct to Mrs. Indianlis’ doorstep, at 21 cents a quart, but the other half is sold at wholesale to dealers, at 19 cents a quart.

made it possible for a small

The Act was originated in| the 1935 Legislature when the used car market was a good deal slower than it is now. It was originally designed to cover purchases not exceeding $1500, on the assumption anyone who could afford purchases more

expensive than that would be able to protect himself.

to cover purchases up to $2500. State Department men recall this was fought by the small loan and finance company lobby in the Legislature, Well aware of the $2500 maximum, some dealers mark up the price of a used car to’ exceed $2500. although they have agreed to sell the car for less. They make it “right” with the buyer by inflating his down payment by the same amount, so that the balance remains the same. ? In the case of Mrs. M. for example, the dealer agreed to sel) a 1947 Chevrolet for $2305. Mrs. M.'s down payment was $800, leaving a balance of $1795 to be financed.

12th Payment—§$1268.12 When Mrs. M. received a copy of her conditional sales contract, she saw that the cash selling Price of the car had been boosted to $2695 and her down payment to $900—still leaving $1795 to be financed; At this time she learned she would pay installments of $80 aj month for 11 months. On the 12th month, she would pay $1268.12. : “Mr. L. bought a 1948 Plymouth for $2485. He made a down payment of $600, leaving a balance of $1895 to be financed. The copy of the contract which | he signed a. the used care lot! does not mats the copy in the files of the fing “company

ET Shee, 328 $2850; cash,

of $18 the coples..

“Denies Payment Agreement The incréased down payment conceals the fact that Mr. L.'s finance charges and insurance of $504.76 are just $5.24 less than

The Times he did not agree to payments of $103.74 a month which appeared on the contract. Neither Mrs, M.'s nor Mr. Ls

Average Return 20c Average return, then, cents to the dairies. They run about: three-tenths of a cent! profit. | They figure about 7 and 7-10] cents for their cost of operation which includes processing milk, paying personnel, buying fuel, gasoline, tires, and all the other things necessary to produce from the raw product a quart of safe milk In your refrigerator. About a 20th of a cent goes into a special advertising fund, the Indianapolis Sales Associa. tion gets another 20th of a cent for {ts job of auditing and bargaining on behalf of four cooperatives it represents. The co-ops, themselves, keep about another 10th of a cent. For it they' serve the farmer as a clearing house, eliminating duplication of certain marketing expense. The farmer has deducted the price of hauling his milk to market and while the amount varies! with distance and other factors, it averages about eight tenths of a cent on each guart of milk delivered to the housewife. Battles Feed Cost When he’s all. through, the farmer has about 11 cents left over. With that he begins his own job of tangling with the high cost of feed, high cattle prices. ‘That is the 11 cents which must encourage him either to continue dairy farming or cause him to switch to some more profitable business, perhaps that of producing hogs and beef cattle. Except for the price paid to farmers, and the amount kept

is 20

back by the dairy to pay its over-|th¢ mercury may reach & coo

all expense of operation and make a profit, most of the amounts checked off the price the housewife pays are fixed. - That is, the 10th of a‘“@ent the farmer pays the co-op, for ex hasn’t changed since milk sold at 12 cents a quart. There was a tiny fractional increase in the amount taken: for edch quart for the Sd&les Association, but it is so small that could

(Continued on Page 3—Col 1)

B-29 Superfort Crashes, Burns

ROSWELL, N. M., Aug 13 (UP)—=A B-29 fortress on a routine training flight crashed

and burned three -south of here late last night, Air Force officials announc today. *

*Maj. C. A. Peck, commander of the Walker Air Force base here, said that “some’-of the crew members were killed. He did not

. reveal the exact casualty figure,

The brief announcement said

SAR

hed after a take-o

whey

contract separated insurance costs from finance charges, as

State Law Protects Finance Firm, Dealer Rather Than Buyer

Limitations of Retail Installment Sales Act

Make Fleecing Methods Péssible By RICHARD LEWSS Limitations of the Retail Installment Sales Act have

companies to fleece the used car buyer. 3 The Act—wliich covers only finance companies—makes it difficult for the State Department of Financial Instiutions - opolics the Anancing activities of the used car dealer.

In 1947. the Act was extended|

srector, yesterday.

his'$600 down ‘payment. (Hé told Prison.

group of dealers and finance

Her From Hospital

Soviet Aid Bemoans ‘So Much Trouble’ And Admits Mistakes May Have Been Ma NEW YORK, Aug. 13 (UP)—A Russian school who jumped in fear of her life from the fourth story | Soviet Consulate accused the Russians today of her as a prisoner for six days.

Agree to Swap Used Car Data

State and County Reach Formula

A formula for joint investigation of used car finance fraud complaints has been worked out by ‘the State Department of Financial Institutions and the Marion County Prosecutor's office. |

The State Department agreed to turn over evidence of criminal practices to the prosecutor's office. | through the office of the state #

attorney Beneral. The prosecu- | tor's office will in turn refer in-|} \f : formation on complaints it has a received for investigation by he} ; department, . Chief Deputy Prosecutor nanl : Mr . Kosenk , Funk said this procedure was | Vice 3 mast agreed in conference with Joseph in Tar

McCord, State Department Di-

7] | g

Mr. Funk said & number of cases of apparent fraud are being lfivestigated by by his office.

Reopen Criminal Case ‘Deal’ Probe

Rabb Sets ing On Convict's Petincn,

By NOBLE REED A criminal case in which an] {agreement for a suspended sen-| tence was made between the prosecutor's office and a del §

foe I} Joausing’ wide reps sfdns in law enforcemen rire] here I

EP

! enny Swisher, , 85, a birthday ca y is the 3-yser-old son ‘of Mr,

in ¢ £ Aie¥e

“The new te nvoly the filing of a ‘by Smith, 41, of STEN Capitol Ave for a rehearing of his case, Hé is now serving a two 1o-fiva year sentence in the ‘Indiana Sta

‘Judge Saul Raub postponied decision on the prisoner's petition and set Oct. 15 for testimony on: the Sefally of what happened when Smith was given a sus. pended Sentence on Dec. 1 and |

required by law. It might appear, however, that neither of these contracts are covered hy law. The present law does not pro-|

some states. Main Evil—Blank Signing The main law violation which leads to most of the huyers’ grief on shady used car deals is" the practice of inducing the buyer to sign a contract in blank. The Times last week checked

radius of the downtown area. At seven lots, salesmen said it was customary to sign contracts in blank. The salesmen explained the finance company would fill out details later and

(Continued on Page $—Ool. 7) |

Showers Forecast, Heat to Stay

LOCAL TEMPERATURES

Gam .. 8 10am ..382 Tam..70 1llsm..58 Sam ..7 12 (Noon) 85 Sam .. 7 1pm .. 88

Widely scattered showers were forecast this afternoon, with partly cloudy weather tonight

and tomorrow. No decided change in temperature is ex-! pected.

The thermometer was expected to go above 85 today buf tonight

65, the weatherman said. Tomorrow’s temperature may go as high as 84. .

On Inside

Spy probe . . . ‘Currie an unwitting tool’ ....Page 8

ssssavinsssesires Page?

a un 50,000 to attend ‘Fatima week . . . a picture story viesssavesssovsi Page 15

» » ® Other Inside Features Amusements 10] ¥.C. Othman 15 Ernest Blau. 18] Pattern .... 18 Comics ..... 20; Radio ...... 11 Editorials .. 16] Ruark ..... 15 Forum ..... 18| Scherrer ... 18 Meta Given. 18| Society Hollywood... 10! Sports . Inside Indpls. 15! Teen Talk. . 18

tect the customer from mis-| representation of prices by the scheduled to be tried last Dee, 1 dealer, although this is fraud in|

{jury trial

{

11 used car lots within a mile

{agreed to a suspended sentence

\ the defsndant had a previous po-

4 . y =» New housing law analyzed | Sat ihe , sentence would be

then remanded to prison on a change in the court's ruling six {days later,

Waivies Jury Trial Records show that Smith was

on a burglary charge in connec-| tion wtih an attempted theft of goods from the grocery store owned by Joseph Gidone at 6005 E. 10th St. J However, when the case was | called, Lawrenceé Shaw, attorney for the defenddnt, waived the and withdrew his client's previous plea of not guilty" and entered a plea of guilty before Special Judge Mil ton Siegel. Records of that procedure show that Deputy Prosecutor Charles M. Clark, handling the case for thé state, informed the judge in open court that the state had

"WHAT'S THE FUSS?" —That's tiny Catherine Breech's question on her 2d birthday today. Miss Breech, of 4565 Park Ave., can't see anything unlucky about a new doll. al

NOT SUPERSTITIOUS—BUT—Barbora | Hibner of 607 Hanna Ave. is 13 years old today on Friday ‘the |3th. That jinx alone wouldn't worry her but since she has 13 letters in her name-and her address adds up to unlucky 13 she's kdeping her fingers crossed—iust for luck. She and Miss Joann Meyer, 30-5. Mount St, 13 today, will celebrate with a A3 quest party today.

For Leap of

M OW, Aug. P (UP) that t were placing full Partment of State for the “kidnaping” of two Soviet ew York. “The. official Soviet position was that an organized with | official connivance, produecd the incident, quarters saw a { bility of Smell réprisals at New York police | Americans here if the case ia not/Bureay of In seitied amicably. Already it wis| Mr. Molotov serving to inflame public opinion the U, 8 against American authorities. volved The Soviet press gave prom- cluding |Inent display to Foreign Minister Iv, M. Molotov's protest to Am‘bassador W. Bedell Smith. Te | {press and radio stepped up {intense campaign of Tonuniotation gangsters not dare te [Again Amerieas authorities, theizens of the grat

for ‘the defendant, Later, Prosecutor’ Judson L.| Stark, after learning that Smith| had a long police record, Including & murder conviction in St.| Louis, petitioned the court to reconsider the suspended sentence. Orders Re-Arrest Subsequently, Special Judge wiegel ordered Smith re-arrested and brought into court. After a heated debate between Prosecutor Stark and Attorney Shaw, Judge Siegel revoked the ! suspended sentence on * the | {ground, he explained, that the state at the original heading had failed to inform the court that

i i $ i { |

Phyllis Bissell Marguerite Sheats Donald Condit Suzette Conkle Joann Meyer

FRIDAY THE 13TH=PHOOEY — The fun of having a birthday overshadows | the Friday the 13th superstition for these young Indianapolisites today. Left to right | are Phyllis Ann Bissell, 13, of 1515 E. Michigan St.; Marguerite Sheats, 11, of 417 Parkway Ave.: Donald Condit, 10,<of 1313 E. New York St.; Suzette Conkle, 8, of | 721 Medford Ave., and Miss Joann Meyer, 30S. Mount. SE. protested American authorities in the case

State Legion to Urge UMT Hit fst Homer, Despite C Current Draft Law ™ fans Beg Ruth Eh Sn LE oF

5 Ww Vv - Q , 0 wn i le Oo = om Hot = wn 3

lice record. The petition for a trial of the {burglary charge against Smith was filed in Criminal Court today by Herbert J-BacRer, newlyemployed defense counsel, Issues Subpena The petition charged that the defendant was “induced to plead guilty to the charge because of the agreement of the state's attorney and the defense counsel

WASHINGTON, Augal3 3 (UP) Waiter Anbassador to Russia, int this-government was Tiyotved in the attempts of two | 0 teachers to remain in the United States. A State Department spokesman faid Mr, Smith's given orally to Soviet Foreign ree V. M. Molotov It was made after Mr. Molotov, = = oo the “connivance” of

“Editorial, , Page 18 NEW YORK, Aug. 13 (UP)— 8 Kosenki

By SHERLEY UHL . State ine. tment Press Officer The petition charged that as a Despite the new draft law, the Indiana American Legion will {Babe Ruth's condition was re- Michael J. McDermott Jater: de-li

“« by matter of fact the defendant is redouble” its demands for universal military training at its 30th ported “still critical” today seri Molotov's al tions not guilty of the or and ja and largest annual convention opening here today. authorities at Memorial Hospital|, ibed,. Mr, lega entitled to an opportunity to| So declared State Commander Harold E. Morris of Gary, Whol, «.; cer and Allied Diseases. “Mr. Smith Sa drcany denied plead not guilty to the charge described the present Selective Service Act as a “Btopgap to fool; Physicians issued another pesand have a trial. the public.” The State Legion also will “take a slap” at the NE simistie report on the condition Judge Raab tional * administration's practice; — and there w for " Shaw fated 8 HPs | of releasing World War II con-|Was “engineered by minority of the Babe today anetall ors ences

| influenced by Commu- indications that the as a witness at the hearing. |clentious objectors, he added. rrp Bueno # Commy- Indjeations 1 thal ae son Several thousand Hoosier vet-/ com round fight

’ ried. PROBE $2500 SHORTAGE lerans arrived for the conclave, “we're against all this pussys, A ATTICA, Ind, Aug. 13 (UP) today, but the city’s flag-fes- footing and appeasement,” he noted yesterday in the Bookkeeper Joe Knight was in tooned streets were relatively said He expressed belief the Le-0f the home run king. #

jail today while the sheriff in-/unruffied. By late tomorrow gion had a better chance than! throughout the night the word vestigated a reported $2500 short- merry-making Legionnaires are ever” to adoption of uni- was that he is that he ‘was at the same. f

ial from

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age in his accounts at an Attica expected to enliven the downtown versal military TRIE, in which | business. firm. Knight was held district with assorted hijinks. all able-bodied youths—not fust iat the ] in County jail in’ The see 4 draft law i wv percentage would receive Army Ruth's . . quotas and various restrictions or Kary experience,

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