Indianapolis Times, Indianapolis, Marion County, 22 January 1950 — Page 26

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Where Our Money Goes STATES citizens are paying $38 billion a year to finance what appears to be a runaway federal budget. . The government is spending five billion dollars more "than it collects this year. And the outlook for next year is no better, In addition to taxes, we'll pay for that deficit, too— in inflation, higher prices and debt. Why do we spend so much? Where does it go? Why can't our government do as prudent individuals do, by paring expenses to fit income? , _ The budget-makers point to what they call fixed obligations, necessary programs and uncontrollable expenses. : s =» . = YOU don't hear much about subsidies in the official budget talk. Yet, at the same time Uncle Sam is squeezing the taxpayer for money to finance his huge necessary programs; he's also spreading around billions of dollars in largess to individuals, business groups, industries and farmers. Earl Richert, Scripps-Howard staff writer, has rounded up some of the ways in which Uncle Sam uses taxpayers’ money to benefit special interests. His stories have been running in The Times. They are of interest to every taxpa Tr. : The cost of the subsidies described by Mr. Richert runs {nto billions of dollars. They go to farmers, ship owners, airline operators, publishers, businessmen, silver miners, oil and gas producers, veterans and occupants of low-rent public housing. One subsidy program alone, the farm price support program, requires three billion dollars in public funds. That's equal to the total income tax paid by 14,700,000 married men with two children each, earning $4000 a year.

. ® . . » . THE most startling facts in Mr, Richert's stories, however, is not the cost. Most of us have suspected that for some time. It's the millions and millions who receive Uncle Sam's bounty, in greater or less degree. We all get a little bit of the subsidy. When we mail a ‘penny postcard or buy an airline ticket or subscribe by mail to a newspaper or magazine, Uncle Sam pays part of the cost. Six million farmers benefit directly from the biggest give-away program. Fourteen million veterans get, or are __eligible to get, benefits that fall in the class of subsidies. One way or another, one in every six persons is on the government's gravy train,

POLITICAL pressures being what they are, some of these subsidies are so well entrenched that they become an accepted part of our governmental system. Sam now is in the position of guaranteeing the allure of millions of citizens. The ofthe expands bis giveawiy program the more we all tend to become his wards, paying in our earnings and getting back what he gives us.

Careful, Fellows

B© BUSINESS is so big, little business hasn't as much chance as a falsie salesman in Bali. Science is so big, old-fashioned Yankee gadgeteers are as outmoded as whiffletrees on streetcars. Everything's so complicated and technical and organ{zed that only a long-hair with a slide rule can hope to cope with the irritating wonders and dubious conveniences of our bright new world. Yes? » r »

r NEXT time you hear someone play variations on that theme, tell him how Forest Killy, a 27-year-old electrician in Roselle, N. J., built his own color adapter for his television set for 30 cents, . “We almost dropped dead,” said Columbia Broadcasting System's engineer, s

LJ [ » ¥ - MR. KILLY just took an old phonograph motor, cut some pie-shaped pieces of colored celophane, and spun them around in front of his set tuned to CBS's color broadcast. Result: Full color for the Killy family. Mr. Killy thought everybody was doing it, it was so easy. But there is dubious comfort even in this continuing evidence of dauntiess American ingenuity.

. . ~ . . » SOME talented guy named Doakes in Altoona, Pa. is going to get curious about this new-fangled atom power, and whip up a small homemade reactor in his cellar, out of a couple of mason jars; an old tooth paste tube, some quickrising biscuit dough, and a coil from a Model A Ford.

Result: A catastrophe ranging between the formation

of & large hole where Altoona used to be, or a bright new star where planet earth used to be, It will be small comfort when Mr. Doakes tells St. Peter he thought everybody was doing it, it was that easy. . . .

Probe All Lobbies

VWWHEN Congress opens its investigation into lobbying, the lawmakers should give immediate assurance that they intend to look into all kinds of pressure groups—not just the ones who are thorns in the administration's side. We are not here holding a brief for or against any particular lobby. But some reports coming out of Washington suggest that through their control of the investigating committee the Democrats plan to cast the spotlight largely on representatives of a few groups. . » . . . . EVERYONE in this country is aware that influence is used to steer legislators in one direction or another. No inquiry is needed to establish that. So presumably the investi. gation is to concern itself with the techniques and mechanics of the lobbying process. . ‘What the committee should try to learn is whether any of these pressure practices are damaging to the public inter- " est—as conceived broadly and not in partisan terms. We ht to know exactly what lobbyists do at every stage of work, what funds they get, how effective they are as be incomplete and open to charges of parti-

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. sources Commission.

Hoosier's Letter Assails

Federal Valley Projects ~~

WASHINGTON, Jan, 21—Dear Boss—A fiscal assault on President Truman's river valley development proposals, using TVA as the “horrible example,” was inserted into the Congressional Record by Rep. Ralph Harvey, New Castle Republican, It is in the form of a lengthy letter from John C. Melieti, Indianapolis, ! vice president of the Public. Service Company of Indiana and a member of the Indiana Flood Control and Water Re-

. Baluting “Dear Ralph” as an old friend who sponsored the state law for conservation of ground or well water and one of the legislators responsible for the commission on which he serves, Mr. Mellett wrote that he has been “exam- agy Mellott ining the idea of regional de- . velopment as a federal function not as a man in the electro-power business, nor as a member of the Flood Control Commission, nor as a member of the Indiana Economic Council, but as a private taxpaying citizen.” In this latter role, he comes to the conclusion that the TV A-type of development, which President Truman asks for the other great river valleys, is no good. To prove it he inserts charts showing that fncome In Indiana was $1403 per capita in 1048, property value $684.56 and income taxes $258.30, while in Tennessee the respective figures were $055, $539.50 and $111.

Questions U. S. Aid FIGURES also are given for Kentucky, Oregon and Washington. He then questions the wisdom of giving federal aid for regional river developments in these states and taxing Hooslers to pay for it. “Indiana people are probably about as liberal as the next fellow who earned what he got,” Mr. Mellett continues. “Too, we are doing fairly well on our own, without federal largess.” (The secretary of Mr. Mellett’'s commission was here last week pleading for federal ald along the Wabash.) There follow more charts showing that farm income in Indiana was $275.60 in 1947 and Tennessee $153.10 per capita, without federal payments, and income from manufactured goods $760 in Indiana and $300 in Tennessee. “This table makes us wonder again whether the billion we gave Tennessee has accomplished anything. Tennessee farm production is down because, perhaps, the TVA has flooded much of the best bottom land—more than was ever flooded temporarily, and her manufactures are not especially impressive,

Indiana Not Asking Much “INDIANA, in the light of these two tables, would need a lot of crust to ask much in the way of federal aid. And Indiana is not asking much, except for flood control in legitimate projects that are part of the Mississippi Valley program, started 21 years ago under President Hoover. ! “Strictly flood control, too, with no hydro, irrigation or waterway transportation or other phonies as benefits in the picture. ; “One of these days we may need to add water supply to. flood control, but I. wonder whether the present beggar states will agree to let us insert it in the program . .. “Actually, if the people of Kentucky, Oregon and Washington really knew what we've done to Tennessee, wouldn't they lock the doors when we heave in sight with grants, appropriations, regional improvements, and what-not. “Much of this regionil development is tied up. with electrip ¢r development, or public ownership. Abani of Tennessee's billion dollar grant is clearly and indisputably in eleetric power—— and only half of Tennessee's farms have electric service. “But Indiana farms, about 50-50 supplied by companies, and public projects with borrowed-and-being-repaid federal loans, are past 85 per cent supplied. And Oregon and Washington farms, like Indiana's, are right at the saturation point on electric supply.

‘Horrible Example’ “IF INDUSTRIAL power supply is what is needed, via hydro, at dams demanded first and loudest for flood control and irrigation, in the Northwest, look again at the horriblé example of Tennessee, Oak Ridge had to have dependable power for atomic development, so built its own steam-generating station, instead of relying on TVA. And now TVA is building steam plants itself —with taxpayers money, of course.” There is much, much more and then Mr, Mellett closes with the advice that economy now is the best politics. Mr, Harvey agrees with that. But the bad plight of Tennessee because of TVA must have come as quite a shock to that state's Senators and Congressmen all of whom support it 100 per cent whether they are Republicans or Democrats,

NEWS NOTEBOOK . . . By Peter Edson

Behind the Scenes

WASHINGTON, Jan. 21—Defense Secretary Lewis Johnson fs being given credit for a remarkably fast job in getting approval of North Atlantic Pact mutual defense plans at recent meeting of NAP country war ministers in Paris. The conference was expected to take a week. Mr. Johnson, presiding, got all plans approved in five hours. President Truman's announcement of

signing bilateral agreements with the NAP countries and

relatively low per capita con-

FOREIGN AFFAIRS . . . By Parker La Moore =

WASHINGTON, Jan. 21--The most vital problem confronting the English people isn't likely to be given much consideration during the current British elections campaign because neither the Laborttes nor the Tories have an adequate answer to it. That is the matter of Britain's solvency.

Nonpolitical Britons, however, are not disposed to minimize the problem. And it is one of grave concern to the United States, because

Britain is the most dependable partner we have

in our international relationships. Reviewing a recent government report on Britain's financial plight, prepared in connection with discussions of the European Recovery program, the Manchester Guardian has remarked that it forecast “nothing but catastrophe for 1052” —the end of Marshall aid. And it added that the catastrophe could easily come before 1052. 4

“Britain's present and dollar reserves

total $1,888;000,000—which is half a billion dol-

jars jess than the total at the beginning of the Marshall program in March, 1948, and the same amount below what the British treasury has regarded as the minimum safety level.

Serious Problem

THE fact that British industrial production has risen 30 per cent above above the prewar level without closing the gap between imports and exports emphasizes the gravity of the problem. » The American loan of $3,750,000,000 in 1945 did nothing more than postpone a day of reckoning, and Marshall Plan aid hasn't proved to be more than a partial stop-gap. Yet while loans have not answered Britain's problem, the application for another loan, this year or next, is

regarded as a virtual certainty.

This loan proposal may be advanced as a means of relieving the British of their war debts to such countries as India, Pakistan and Egypt. Totaling something less than $9 billion, the servicing of this debt has been a serious drain on the English treasury. These so-called “sterling balances” have been

A HOPE

The sun is down and from the tower A light proclaims the evening hour. Unlike the sun's far glancing ray, It only shines a little way. Yet any ship in dark of night May feel the need of that small light. I will not pine—for all I know, Some need my pale but steady glow. , —Myra Ahler

CARNIVAL

approval of the defense strategy will officially put MDAP-= Mutual Defense Assistance Pro-gram-——in operation under Ambassador James Bruce, First shipments of U. 8. arms to Europe are expected to start rolling within a month, - » .

7 WHEN Tennessee Valley Ad-

ministrator Gordon Clapp went to the Middle East as head of a United Nations economy sur vey mission, a Nashville newspaperman went with him to cover the story. While there, the newspaperman hired an Arab newspaper photographer to take a few pictures, But they didn’t turn out very well, and payment was refused. After the mission had moved on, this Arab photographer's paper printed an “interview” with the Ametican journalist. It quoted him as saying that the only solution for the Pal estine problem was to have the Arabs surround the borders of Israel and shoot every Israel who stuck his head up, The whole interview had been faked to get revenge for nonpayment of those pictures. When a translation "of the story was shown to Mr. Clapp. he sent it to the Nashville re. porter with this note: “I've always found that you have to be very careful In talking to newspapermen.”

sumption of free boost by this statement: “They'd probably drink more, but the bars at parties are usually so crowded that a lot of time is wasted just “getting through the jam for the next drink.”

. - » BUT a high light at the recent Senate hearings on the Langer bill, which seeks to ban all liquor advertising, came when one prohibitionist witness read a statement with this warning: “Keep your children off the streets. The ‘man of distinction’ is at large.” « a INCIDENTALLY, temper ance forces claim they have won 15,000 out of the 20,000 local option contests that have come to a vote in the last 12 years, since repeal, Though prohibition was overturned in Kansas in 1948, it was retained in Oklahoma in 1948. Coming to a head are campaigns for state prohibition in Alabama, Georgia, North Carolina, Tennessee, Texas and Arkansas.

. » » BEST explanation offered on John L, Lewis’ strategy in ordering three-day work weeks in coal mines is that he had to do this to avoid another in junction under Taft-Hartle law, ‘

to have quistly polied operators on how many days they would keep mines open if contract g on was signed. Answers averaged = PRESIDENT TR days a week. 3

WR 10 BY SOA SENGE. BT. 0 0 PAT, SOF.

schedule and ordered it into effect, But it has not brought settlement of ‘wage tions that began last summer and miners are sore. They be lHeve wildeat strikes will force quicker settlement. If strikes on another injunction,

ho , it will only prove Mr. Levi origin analysis. cor.

new Water Resources Policy under Chairman

No British Crisis Solution Seen

the subject of British-Canadian<American discussions for some months, but if any decisions have been reached they have not been announced. Some of these obligations, if not all of them, should have been canceled at the end of the war, in the opinion of some American financial experts, at the same time our government canceled Britain's lend-lease account. They belonged in much the same category. But the time when that could have been done without serious repercussions probably has passed.

Major Assets

The new governments of India, Pakistan and Ceylon, as well as that of Egypt, have come to regard these balances as major financial assets and the goods they have been receiving in leu of interest on the debts have become important factors in their economies. Britain, for her part, is reluctant to default on these obligations not only because of British pride in their financial integrity but because it would entail the loss of a great deal of cash trade which Britain could {ll afford to lose. During the years when Britain was carrying the major burden of the war against Hitler Germany, most of the nation's overseas investments were liquidated and spent. These investments were the accumulation of generations of effort #nd an equal period may be required to repiace them, if indeed under present world conditions that would be possible. Britons stress this factor in explaining their net loss of income. It may be less easy for them to justify their use of Marshall Plan money, however, at least from the American viewpoint. That is where British Socialism comes in.

Welfare State

IT HAS been denied that American funds are used to support the British welfare state, Well, this is how it works: Goods Britain obtains under Marshall Plan dollars are sold to the British consumer for sterling. This money goes into what is known as the counterpart fund. Most of the ECA nations reinvest counterpart funds in recovery measures, thus keeping the original dollar at work on the original program. But in Britain counterpart funds amounting to $577 million have been used to pay the debts of government. This policy is certain to cause political repercussions in this country when the next Marshall Plan appropriation is submitted. Critics are certain to say that the United States has been going into debt to raise money which Britain in turn is using for debt retirement.

By Dick Turner

solvent,

ects, too?”

the line. .

built.

too, 80 be it.

Morris L. Cooke is being .

looked to hopefully for a possible solution of long-standing fight between California and Arizona, over division of Colo rado River waters, Two key members of the committee who will be pressured into working for settle-

, pair of other thoroughfares is

When a newspaper makes a bold statement about cutting expenses and whacking a budget, somebody in Washing- =» =» ton invariably asks the embarrassing question: “Are. you willing to apply the cut to your own pet proj-

” . LJ WELL, Mr. President, I am going .to surprise you this time, and the strong affirmative. * Yes, I am willing. This newspaper is willing. We urge that the cuts be made all down .and that none of our own pet projects be spared

floods on the Trinity River and in the construction of dams, already authorised and being 8

These dams will be of un"w wd ‘ . told, lasting value to this state. So who cares what it's for? You run. a contest for housewives # But if appropriations are figure out uses for it and we make a fortune," going to be cut, these dams will have to take a reduction,

WE are deeply interested here in: airport construction, with our Greater International Airport on the way to completion, If we have to sacrifice there, too, we can take it. Whack a

faker sanate Shnk o

cism, socialism and the so-called “Industrial Re-

. public of Labor” are all based on the theories

of Marx and Engel, And things equal to the same thing are equal to each other, in spite of

Mr, Ginsberg's hair-splitting. In other words,

irrespective of what alibis they use to dress up the details, the end result cannot be changed.

dergone many changes during their short lives. ‘This points up two facts. First and most important is that no splinter parties are needed in this country to obtain prog-. ress, Splinter parties have been the downfall of most of the constitutional governments of the world, opening the floodgates for Marxism--no matter what other tail is tied to it. The, second important fact is that thé only reason 'for any splinter party is political opportunism and lust for power, It is the urge for pygmy politicians to try to prove themselves giants, using silly unthinking people for pawns. If they were truly giants, they would push their theories up to the top in the established parties, Just another little factor which Mr. Ginsberg and his Marxist pals fail to take into con sideration, is human nature. Of course, the political opportunists fostering the splinter. party which Mr. Ginsberg advocates would not dare to make public the fact that their sole purpose is

to capture our form of government and enslave .

the people. But whether they admit it or not, human nature is so construéted that with su comes .the lust for more power. Witness the petty bureaucrats of the New Deal-Fair Deal misdeal. I doubt of any Marxian theory is potent enough

“to pour people back into the mold and make

them over again. Then, and only then, can any Marxian theory be successful without force and a police state, which spells dictatorship. When the Socialist or the Social Labor Party or any other splinter party succeeds in changing these facts, there might be hope for their imported ideas which have ruined all other nations which have tried them.

WHAT DO WE NEED IN 19507?

8-Point Program

By K. F. Valentine, President, Pitman-Moore Co,

These are my random thoughts concerning suitable objectives for Indianapolis for the new year: > City government, like any business, is faced with the problem of conducting its business and making certain improvements, even though the cost of these items continue to increase. ONE: - Continuation of efforts in the improvement of the traffic situation. The creation of one-way thoroughfares, widening of streets and the re-

a good beginning. In my opin. fon, more one-way arterials are indicated. TWO: Extension and improvement of recreational fa- ind cilities for our youth. Money’ ; expended in this direction will Mr Valentine reduce costs of excessive juvenile delinquency. THREE: Launching of a study and program of action toward consolidating our municipal and township governments in respect to eliminating the duplication of services and overlapping jurisdictions. The Hoover report on the reorganization of the federal government has implications in this regard. FOUR: A civic auditorium. This is one of

: Indianapolis’ greatest cultural deficiencies at the

present time. FIVE: Flood control in areas which have been consistently hit by high waters in the past five years. SIX: Increased downtown parking facilities. SEVEN: An accelerated program for slum clearance. EIGHT: Greater efficiency in city and county government through the utilization of sound business practices so that better returns may be received from our tax dollar.

What Others Say

We should make some changes in our tax system which will reduce present inequities,

stimulate business activity and yield a moder--

ate amount of additional income.—Presidenf * Truman.

LETTER TO THE PRESIDENT . X .

‘We'll Take Cuts’

(Reprinted from Ft. Worth Press, a Séripps-Howard Newspaper)

DEAR Mr. President: Our newspaper is alarmed at your budget. We have urged strongly that Congress cut it and cut it deeply. As a citizen I am alarmed personally, I'm scared at the ime © plications of our fabulous spending program. I don’t see how we can do it and survive, much less be

places where money can be spared better, we're ‘willing for you to slice there also.

YES, we like our expressways and our federal aid high Way program. We want our proportionate cut there, too. If we haven't enough matching funds to bulld the roads we need, we can build them ourselves. Give the subsidiey a good trimming, all of them. 80 far as the many government services we get are concerned, we can take our whittiing off their budget, too. . . even the ones which have state

answer is a

in the paring! : and regio We are deeply interested in oun Mal ‘offices in . our Ft. Worth in the control of The cutback has got to

come and we're as ready for it as we'll ever be,

OUR appeal, Mr. President, isn't a selfish one. In demanding that govern« ment expenditures be cut we're not going to be selfish this time. . Economy can't be practiced for the other fellow and not for ourselves,

» r ~ ~ IT'S up to Congress, I know, Mr. President. Just wanted you to know that down here we think there ought to be some cutting done, and that we're ready to take

Worth

ment are Samuel B. Morris of our part of it wherever the ax Los Angeles water department =~ We are deeply interested in may fall. . . and and Paul 8. Burgess, dean of the great program of soll con- deep it may cut. Universit of Arizona college servation. And, although we - Walter R. Hi .

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