Indianapolis Times, Indianapolis, Marion County, 15 May 1949 — Page 43

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SUNDAY, MAY, 15, 1049

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. CED Sees Higher Taxes ‘As Spending Grows

~ Drift Toward Authoritarian State Feared Unless Expenses Are Cut

_. By HAROLD HARTLEY, Timos Business Editor

ES

votes are buttered, talk govern-

ment thrift before elections to get the votes, then spend the treasury dry to keep the votes. Yesterday the sensible and highly respected Committee for Economic Development, worried over the trend, ran a calculating finger over Government expenses and let out another wail, but not without suggesting a remedy. The CED reported that the

See The Bills

to pay, due to payroll deductions, when March 15 rolls around. The CED wants to cut expenses, raise taxes and lower the principal of the debt. And as the debt goes down the interest begins to decline. That's progress which we haven't known for almost 20 years. The Government now spends almost one-fifth of the national income. If as the ratio goes up, business finds it harder and harder to produce goods and wages at a profit, its prime incentive. Industrialists see the handwrit-

Break-even Points

points of average businesses.

portion.

Today the direction is reversed. The trend is down. But how

to get costs down, too, is the big problem. Hotels which once turned pleading patrons away, today find their break-even point is well over 80 per cent. This means that a fall of 20 per cent in receipts would start them on the road to bankruptcy. As production moves along and continues to deluge the markets, a good many employers will call in their employees, or their union leaders, for heart-to-heart talks. ; The businessman will put his story in this light: “Boys,” he will say, “I'm losing money, and I am getting old. I have enough to feed me and my family the rest of my days and

Jobs Wante

Last week the United Pr the nation. Thirty-four reportd

in job offers from business and indus

of jobs’ offered measured up to last year. : As expected, most of the job opportunities lie in the sales field. At Northwestern University, Dr. Frank 8. Endicott, director of placement, said,

their sales forces to get business.” Next in line of job opportuni-

Wealthy U. S. Women

because their husbands work themselves to death

Greatly increased

dends on veterans’ life insurance million in farm supports and you

of Uncle Sam's ledger.

Businessmen know that only taxes can pay the accumulating deficit. And they pay the taxes. More than that, they see their tax bills more often than the wage earner on March 15. The businessman mails big checks to the Department of Internal Revenue, but the little fellow, who is collectively a pretty big taxpayer himself, usually has little

ing on the wall. If taxes become so large business cannot function, there is only one alternative, the authoritarian state, very evil against. Almost any businessman will tell you the country is side-slip-ping toward the socialized viewpoint, which means simply that the Government someday will

than we take in.

When post-war expenses crept

up, they raised the break-even

Wages and the cost of materials, the cost of distribution and almost every other cost rose in pro-

maybe leave a little for the children. “The only reason I have to continue to run this business is to enable you to feed your families. Now I don’t want to go on at a loss. Either I close shop, or we both take a cut. I'd rather g0 on, but I am not willing to pay for the privilege.” In instances where the employees are of many years service, they will vote to take a pay cut * until business and prices show signs of leveling off, Men do not like to take new jobs and go to the bottom of the seniority list when they are past 50.

As the economic indicator drifts to lower - levels, it touches conditions all along business line, even the college graduate looking for his first job. made a survey of 43 schools over

slightly fewer to a sharp

physics and chemistry.

‘Starting salaries for those for“Companies are tunate enough to get jobs are infinding it necessary ‘to increase| variably higher 25 jot a the

(war. But, as the near-graduates i pointed out, so is everything else. The ladies who control

the weal thering dollars

they can never spend are getting a course on investments from Merrill Lynch, Pierce, Fenner & Beane.

In the investment world this cent years. Not that the women heritances, but they do get themselves talked into an investment “flier” now and then, and sometimes, for sentimental reasons, they buy pretty-looking stock and suffer ugly losses. If the investment firm saves only the insurance of some widow, the effort will have been

is one of the finest gestures in rewealth holders squander their in-

worth while. Incidentally, MLPF&B recommends an ade-

quate insurance program. And before any investments are made, the household should have a balanced budget. And that alone, in these days, will rule out a lot of security buyers.

Buying of Selected Stocks Marked by Cautiousness

Volume Light During

Week; Bright Spots

Shown in Business News; Construction Gains By ELMER C. WALZER, United Press Financial Editor —

NEW YORK, May 14—Cautious buying of selected issues gave

the stock market a steady appearance during the past week. But volume remained light. Sales for the full sessions averaged 738,000 shares, against 782,000 shares daily last week. A year ago, in marked contrast with these markets, the sales for the week ended May 15, 1948, averaged 2,195,700 shares daily.

The week started on a decline that affected all major groups. On Tuesday, the dip was extended, and then came a slow recovery. The moderate buying that was done was selective. And so was the selling. Individual issues and groups followed closely the news of their particular situations, and the market as a whole ignored or paid only passing attention to national and international events, Business News Bright Business news had a few. bright spots, but industrial production on the whole slipped back slightly, and many industries were below the levels of a year ago. Examples of the selectivity included buying in American ice fssues on a company plan to retire preferred stock, a rise in copper shares on hopes for large government stockpiling of the metal, improvement in steels on Iron Age statement that steel mills are comfortably fixed through July, and selling in Armour issues on omission of the preferred dividend. : Rall List Active For the week as a whole, the railroad {issues made the best showing in the major groups. They helped offset small declines in the Industrial and utility sections. Utilities are unique in be-

tiles, and farm issues firmed. Steel and electricity production declined to new lows for the year, but each showed a gain over the corresponding week of last year. Construction Gains Construction was up slightly on the week. Declines for the

output, coal, crude oil, fuel oil, gasoline, kerosene and lumber production, and car loadings. Meat output held unchanged. Bituminous coal output and car loadings showed the widest declines on a year to year basis— 12 per cent and 13 per cent respectively, Meat output was 11 per cent over a year ago, and’ auto output, up 40 per cent from the 1948 level. Small gains over a year ago were noted in gasoline and kerosene production. Automobile production totaled 116,563 units, against 130,113 in the previous week and 83275 a year ago. Steel production at 96.2 per cent of capacity was down about 1 per cent from a week ago. Production of steel ingots amounted to 1,773,500 tons. Construction at $130,991,000 compared with $129,226,00 a year ago. sae

INSURED SAVINGS

Current Dividend Rote 2% %

SUBURBAN FEDERAL

SAVINGS & LOAN ASSOCIATION

TWO LOCATIONS Madison & Main © 709 Main SL. Greenwood Beach rove (Main Office

programs. Add to this the proposed payment of $2 billion of accumulated divi-

and an increase of about $750 have a good line on the debit side

we have been fighting

take over unless we do a better job of keeping our arithmetic straight and begin spending less

the

decrease try. Only six said the number

ties, and in this erder, are primary grade teaching, electrical, civil and mechanical engineering,

of the country|“It’s too late to build bins for

ee cts pe te—————————————— ing issues, foods, some. mercan-

week were noted in automobile]

A double header starts its of freight and express. The drivers work in teams on long hauls and when their day is up, and they

have no relief, Federal law makes them pull over to the side of the road and go to sleep.

On the Farm—

Farmers Jumping Gun on Planting

Farmers in Indiana were not losing much time last week with their corn planting. Remembering last year’s rain delay, many were jumping the gun, planting ahead of the Purdue-recommend-ed date of May 20. The Purdue date is urged to combat the corn borer. Entomologists have warned that to early

to lay eggs. But Wayne Wilson, farmer west of Kokomo, said he wouldn't worry about the borer. “If they're too bad, we’ll spray 'em again.” “Time To Be Careful” Ira E. Bell, New Castle farmer and livestock man, was more cautious. “The corn borer is undoubtedly working on us,” he said. “It's time to be careful.” There are others who cannot wait. Sweet corn men, for instance. They have to plant to meet the early market, and hybrid planters also have to get their seed in early. Purdue has been experimenting with the female moth of the borer which like the bright lights. She is trapped into long ultraviolet lighted tubes and is electrocuted. . Federal Controls Faimers also were keeping a suspicious eye on the Brannan farm proposal. Corn belt publications (Prairie Farmer, etc) warned farmers against further federal controls. With a whopping wheat crop in prospect, farmers believe Agriculture Secretary Brannan would use control powers to limit wheat acreage next year. Farmers don't want that at any price. : One government move pleased Indiana farmers. Congress was moving closer toward authorization of government-built storage bins. But, said C. L. Aukerman, Amboy grain elevator operator,

this year’s crop.”

Hoosiers to Hear Talk By NAM President

Wallace F. Bennett, president of Bennett's, Inc., Salt Lake City, and National Association of Manufacturers president, will speak at an industrial conference before more than 500 Hoosier manufacturers at a luncheon tomorrow in the Claypool Hotel. Mr. Bennett will speak on “A Vital Program for Industry” at the conference, sponsored by the Indiana Manufacturers Association, the NAM and the Indianapolis Chamber of Commerce. C. E. Hamilton, president of the Automotive Gear Works, Inc., Richmond, Ind., is chairman,

Firm Named Dealer For Chrysler-Plymouth

Lafayettte Motors, Inc., 1639 Lafayette Road, has been appointed Chrysler-Plymouth dealer and will handle sales, parts and service for the two lines. Officers are J. ¥'. Boyer, president and general manager, and B. T. Gates, vice president. Mr. Boyer was regional manager for the De Soto Division of Chrysler

ing has been remodeled and reequipped for sales and service. George Gunning will be in charge of sales, Paul Clark and Miss Mildred Gibbons in charge of accounting, and parts will be managed by Emery Hebert.

Purchasing Agents’ President to Speak

Ralph O. Keefer, president of the National Purchasing Agents| Association, will speak at the past presidents’ dinner meeting of the Purchasing Agents Association of Indianapolis Tuesday in the Athletic Club. Mr. Keefer is purchasing agent of the Aluminum Co, of America, Pittsburgh, Executive personnel of the Lafayette plant of the aluminum company expected to be present Include W. C. Winter, A. J, Stewart, A. L. Miller, J. B. Marstellar, W. A. Benz and F. E. Tyrrell.

planting gives the borer a place 5

Corp. In Cincinnati. Mr. Gates}: is a 25-year automobile wv: oa The 33,000 square foot build-

and express business.

and all types of movable goods. The only requirement, other than weight, is that it must be small enough to put into a truck. Eighty-seven per cent of Indiana's trucks are privately owned and 13.3 per cent are for hire. These trucks pound over the roads to the tune of nearly 2 billion miles a year, based on an average of 10,000 miles per truck. The heaviest traveled routes in order of their use are US 40, 31, 52, 24, 20, 12, 33, 30, 6, 27, 50, 150, 41, 36, 29 and Ind. 37, 67 and

Average $92.25 a Weel Truck drivers on the road get an average of $92.25 a week. The city driver takes home an average weekly pay of $70.60. The truck owners have their troubles, enough to make them organize and stalk the legislature for tax snipers. They have united their interests in the Indiana Motor Truck Association, which points out quickly that the truck owners of the state pay $30,852,384 a year in taxes. The railroads, burdened by a property tax, rising wages and shrinking passenger and freight business, insist privately that the trucks do not pay a fair share of the upkeep of the roads. Examples of trucking growth

RA A NG ng rg

THE INDIANAPOLIS TIMES

Trucks Nibble Away RR Profits, Highways

McClarney’s Res-

journey across the nation, through Indiana, with a diesel-pulled cargo

- " # " » =" War-Nourished Industry Cutting Deeply Into Vast Freight and Express Business The truck lines of Indiana are cutting deep into the freight The war-nourished trucking industry now has more than 209,000 trucks of all kinds rolling over the roads of Indiana. This does not

take into account the other coast-to-coast lines which roll from border to border, day and night, carrying food, small machinery,

now has 267 tractors and 277 trailers. : Ellis Trucking Co., Indianapolis, also is typical. In 1843 the Ellis Co. had 47 tractors and 45 trailers. Today the fleet has 132 tractors and 185 trailers. Others show similar growth as the number of trucks on the highways increases, and the z00ming monsters of overnight city-to-city hauling continue to nibble away at railroad income with door-to-door service.

Metals Society Lists Speaker

Orville E. Cullen, chief metallurgist in' Surface Combustion Corp, Toledo, O., will speak on “Prepared At- ie " mospheres” at the . Indianapolis chapter meeting of the American Society for Metals tomorrow evening in

taurant. : Mr. Cullen, a native of Michigan, is a graduate of the Uni-

are shown by the Aero Mayflower

press, Inc., of Terre Haute, which was not in business until 1946 and

»

By the end of July

shortage will assume

this year.

vide adequate medical

nation’s defense.

«a

mot provide sufficient

will have lost almost one-third of the physicians and dentists now serving with our Armed Forces. Without an increased in-flow of such personnel, the

gerous proportions by December of

These losses are due to normal expiration of terms of service. The professional men who are leaving the Armed Forces during this critical period are doing so because they have fulfilled their duty-obligations and have earned the right to return to civilian practice.

Without sufficient replacements for these losses, we cannot continue to pro-

, for the almost 1,700,000 service men and women who are the backbone of our

Normal procurement chanmels will

To alleviate this critical, impending shortage of professional manpower in the three services, I am urging all physicians and dentists whe were trained

Mr. Cullen

versity of De-

Transit Co. which had 250 “trac-itroit. ‘He has been associated tors and trailers in 1948 bat did|with Surface Combustion Corp. not operate more than 50° Then {since 1936. He has completed there is the Eastern Motor Ex- research and development in all

‘|Advisers has

taxes, already a dead duck in

Congress, is now looked upon by persons associated with the White House as something Set Would be better had Xt never

According to the Associated Press, the Council of Economic suggested to the President that he pare down his request for a four-billion-dollar tax boost. Freshman Sen. Paul H. Douglas (D. Ill), a former president of the American Economic Association has indicated that he feels a tax rise, in the face of increased unemployment,

is unwise. Yet, lesa than Departure wv; ‘months ago Sen. Douglas signed the report of the Democratic members of the Joint Committee on the Economic Report which fully endorsed the President's program and specifically demanded higher taxes. The Federal Reserve Board has departed most strikingly from the Presidential party line. It has relaxed instalment credit terms twice, reduced margin requirements on stock market collateral from 75% to 50%, and cut back reserve requirements of member banks, which makes it easier for banks to make loans if they are s0 inclined. And Chairman Thomas B. McCabe has indicated that another cut in reserve requirements is in the offing "if present trends continue.” - The trends are these:

For 16 consecutive weeks, business loans of weekly reporting Federal Reserve Banks have been declining. At $14 billion, they're off $1,650,000,000 from the December high and $300 million from last year. For six consecutive weeks, steel production has been slipping. Steel mills are operating at 96.2% of capacity as against a high of

1102% in the week of March 19.

Nonferrous metal prices continue to

Layoffs

. |hunt for a bottom. Copper has

been quoted at 18 cents per pound

lh |as against a high of 23% cents.

Yet buyers are far from avid. Zinc, at 12 cents, is off 6 cents, and lead, at 14 cents, is down from 213 cents. Layoffs persist in various fields. For instance, Pepperell dropped 300 workers at Lewiston, Me, when it decided to stop making narrow sheetiiig. National Cash Register let 1500, or 15% of its

workers, go at Dayton to “bring

phases of heat-treatment of|production into balance with cur-

| metals,

of this year we

even more dan-

and dental care

We have written personally to more than 10,000 of you in the past weeks urging such action. The response to this appeal has not been encouraging, and our Armed Forces move rapidly toward a professional manpower crisis!

replacements

rent sales,” Proctor Electric, in

*

WY URE APPEAL T0 YOUNG DOCTORS!

Your personal help is needed to avert a serious threat to our national security!

under wartime AS. T.P. and V-12 programs under government auspices or who were deferred in order to complete their training at personal expense, and who saw no active service, to volunteer for a two-year tour of active duty, at once!

Many responses have been negative, but worse—a great number of doctors

Outlook in the rT SEER Truman Anti-Inflation Proposal © § Viewed As Misguided Child ~~

J. A, IN THE RAT-A-TAT-TAT of events is beginning to force President Truman's high economic command from intrenched positions. The anti-inflation program, calling for standby price controls and a four-billion-dollar boost in

Philadelphia, laid off 800 because of changeover difficulties in a redesigned toaster. And International Harvester's small tractor plant at Louisville had to close down temporarily because of manufacturing problems.

Down 3% Livefsin the

automobile in~ dustry have mounted because of labor disputes. Ford was struck over assembly-line work loads. Chrysler had to lay off 22,000 for lack of parts. And, in many plants throughout the country, especially in textile and clothing centers—there have been partial layoffs: Hours of work have been reduced. This shows up in personal income in March. It ran at an annual rate of $214.3 billions, off 3% from the December high of $220.8 billions. And, as an indication that the recession has become fairly general, wages in durable goods industries are below the year before—this for the first time since i946. 8o far, readjustments, industry-by-industry, have not been bunched. As long ago as January 1948, agricultural prices began to drop. Ever since the end of 1946, we've had periodic slumps in jewelry, furs, cosmetics, women's dresses. Now that the durable goods industries and construction, notably residential building, are sliding off, the question is this: Will the industries which have gone through an economic squeeze, both price and production-wise, turn up when, say, automobiles and steel really start going down? Will building go into a big slump just when auto and steel production drop?

Those questions are, Hope unfortunately, unanswerable, But there's hope. The mere fact that the country went through a long period of underinvestment—not only during the war years but during the depression—is a salvation today. In the case of passenger cars, for ex-

Local Realtors Plan A Tour of Lynnwood

A tour of Lynnwood, a Purdueoperated farm owned by Charles J. Lynn, will be given to local realtors tomorrow by the farm committee of the Indianapolis Real Estate Board. Warren W. McVey, farm director at Purdue University, and Charles Nichols, manager of Lynnwood, will conduct the tour. The farm is located three miles

PAGE 43

scrappage is only half the customary fate {sce Share). Cary

plying early replacement. Here's the story: Per Cent of Passenger Cars 1941 1946 1948 Under 65 Yrs... 70% 35% 26% 6.5 to 12.5 Yrs...26 53 57 Over 125 Yrs... 4 12 17 What is true of autos is mors or less true of hospitals, roads, machinery, railroad equipment, housing, household appliances, etc.—in spite of the sharp crease in production since the war, ‘And that is a fundamental underpinning of the economy. But at the moment, the important fact {s that the administration is just beginning to see the economy and {tself as others see it. We'll begin to get some economic realism here in Washington.

Cattle, Sheep, Hogs Higher

CHICAGO, May 14 (UP)—Aild» ed by generally moderate receipts, cattle, sheep and hog prices wers mostly 25 to 50 cents higher on the livestock market this week. Receipts were estimated at 35,700 cattle, 1000 calves, 2800 sheep and 35,500 hogs. Compared with Friday of last week, steers and yearlings scaling 1050 pounds or less were strong to 50 cents higher. Most of the advance showed on the light yearlings. : Heifers were 25 to mostly 50 cents higher and cows were up by the same margin except for light canners, which remained steady. Stockers and feeders were strong to 50 cents higher, Sheep Receipts Drop A top of $28 was paid for two loads of choice 1211 to 1305pound Colorado fed steers and scattered loads of choice. steers weighing up to 1380 brought $26.75 to $27.75. Most vealers were $1 higher. ; Receipts of sheep were only a third of last week's total. S8laughter lambs were generally steady to strong and in instances 25 cents higher on choice shorn pte ferings. - 8 Spring lambs were very scarce, but the bulk of the supply includ. ed good to choice shorn offerings which sold for $30 at the week's top. The next highest price was $20.75.

Named Distributor

The Avels Sales and Engineer ing Co,, 1737 N, Meridian St, has been appointed central Indiana distributor for the Blackmer Pump Co., B. L. Gordon, Blacke

east of Carmel. committee chairman,

have not replied.

obligation in the

and dentist,

life !

C. F. Balley is

hear, from you immediately!

We feel certain that yom recognize an obligation to yowr fellow men as well as to your profession in this matter. We are confident that you will fulfill that

mer president, announced yester«

4

It is urgent that we a

spirit of public service

that is a tradition with the physician

There is much to be said for a tour of duty with any of the Armed Forces. You will work and train with leading men of your professions. You will have access to abundant clinical material; have the best medical and dental facili ties in which to practice. You will expand your whole concept of life through travel and practice in foreign lands, In many ways, a tour of service will be invaluable to you in later professional

Volunteer now for active duty. You

tary of Defense

are urged to contact the Office of Secre-

by collect wire imme-

diately, signifying your acceptance and date of availability. Your services are badly needed. Will you offer them}

£. TPs 4