Indianapolis Times, Indianapolis, Marion County, 24 March 1950 — Page 10

« “DEARBOSS...By Dan Kidney

he Indianapolis Times

=e Debate Issues Friday, Mar. 24, 1950 Challenges Capehart Remarks , On Social Security System ~

PAGE 10

EI TL ER SUE

‘cs and Audit Bureau of

though Sen. Homer E. Capehart (R. Ind.) de‘clined a second series of debates with Rep. Andrew Jacobs, Indianapolis Democrat, the latter keeps right on sharpshooting at the senior Senator nevertheless,

in County. § cents a sopy for daily and 100 FE Sah hal sides ed di Hy R A S000 8 a 00 » r ndag ico. dal 5% h. Fog : y : 1,13». antl Sus a7 , ov : When confronted with the second Jacobs’

Felephone BE iny 335} challenge to debate (they had toured the state Bive TArht and The Paosls Will PIA Thm Aww ®- together during the congressional recess) Sen. Ra : : Capehart said he would be glad to accept proGrea SR eat vided that the Marion County Congressman gets ; . the Democratic senatorial nomination st. Loyalty Program Upheld a mien S58, specific law forbids, the President of the United Meanwhile he . giving Sen Capenant Ju 3 x : “ 8 States may remove from : government service any absent peat, ie ent ne oe : This is the two-to-one decision of a Federal Court of still says he Sout Undesstasd why, when Sen. i istri ‘mbi i } hart t uts critica ria Appeals in the District of Columbia, upholding the govern- Lapena slo ho al CE aa ment loyalty program ordered by President Truman. Congressional Record. Rules of both Houses The case, brought up from a lower court, is that of prevent such criticisms from the floor. That Dorothy Bailey, first federal employee to be dismissed Was how Mr. Jacobs was ruled out of order, after exhausting all the administrative appeals procedures New C..allenge provided under that program. Miss Bailey was removed more than a year ago from an $8000-a-year job in the U. 8. Employment Service. She c~ntends that she was falsely accused of being a member of the Communist Party; that she was permitted no trial by jury; that her pleas to know who had accused her were

denied.

~ n » » » “ THE Appellate Court's. opinion concedes that the. loyalty program may impose injustices and. hardships on some individuals. And Judge Edgerton, dissenting, asserts that Miss Bailey's constitutional rights were violated. But Judges Prettyman and Proctor hold that there was - no violation of law and that the dismissal of any employee under the loyalty program involves no constitutional right. Most Americans, we think, regret deeply that it is cumulation of a pension reserve fund invested necessary for the government to have a loyalty program. in United States bonds was purposeless, Mr.

don’t prevent it, Mr. Jacobs returned to the assault. He challenged Sen. Capehart's repeated attempts to try and make out that social security, old-age pension and survivors insurance payments are a swindle, because the funds are Invested in government bonds which must be redeemed by direct federal taxation. ' Using what in logic is called “arguments from authority,” Mr. Jacobs called as his witness the writings of F. A. Korsmeyer in the far from Fair Dealish- “Wall Street Journal." _.._ Mr. Korsmeyer is highly critical of a pamphlet distributed by the Brookings Institution of Washington, D. C,, which took the same tactic as Sen. Capehart does in declaring these social security assessments a double-taxation fraud. In the middle 1930s some life insurance company officials were selling the idea that the ac-

WASHINGTON, Mar. 24—Dear Boss—Al-

IN a recent broadcast, where House rules -

Tain bs

wa. wowthn Spending Money nearly a billion-and-a-half dollars in the federal budget is good as far as it

But economy will have to go nearly $4 billion further if the government's ex--

pénditures are to be cut down to estimated

receipts. ; * Le It is high time that we balance tha It can be dome if we will just stop sn - .

Come a Runnin’ Harry SE |

All Americans should wish that program to be conducted . Korsmeyer pointed out. They were peddling the TT Cail and an : Capehart theory that the reserve was a fiction fairly and with utmost care to protect innocent. persons and that it could actually result in the cost of from the stigma of disloyalty. . pensions being paid twice over. . But, as Judges Prettyman and Proctor say, the pro Realized Their Error gram has been made necessary by a “world situation “THOSE insurance company men have long which they. cannot ignore and which, certainly, they cannot since realized “their error,” the Wall Street require the President and Congress to ignore. If circum- Journal writer continued. “A sort of vicarious stances impose hardships on individuals, “the exigencies

recantation came in 1945 from a committee i : : : representing the three principal associations of of government in the public interest under current condi- : tions must prevail. er

life companies.”

Te EE Ti AER A Sb Ss

ems en

: “The first step In understanding this prob_lem is to agree that payroll taxes are collected so that workers may currently make a contribution to the support of the OASI system from which they hope later.to benefit. . "Furthermore, the apparent double taxation does not involve an avoidable burden if it can be assumed that the excess of income over outgo is used by the government for some essential purpose, and does not by its existence and availability stimulate unnecessary expenditures. The purchasing of bonds of the OASI system means that, later on, when it needs money in excess of payroll tax receipts in order to pay benefits, the interest on the bonds (raised, of course, by general taxation) will be avaliable to meet the additional benefit load. :

‘By General Taxa

“HOWEVER, If 'the bonds had not been bought by the system but were in the hands of the public, then not only would the interest on the bonds have to be raised by general taxation, but additional general taxes would have to be levied to cover the deficit in OASI operations. Current payroll taxation to create a reserve fund, therefore, makes possible the use of interest which the government has ‘to raise by taxation anyway for a purpose which would

Industrial Expansion NDIANAPOLIS' rapidly expanding industrial capacity otherwise require further general taxation, op, “was advanced another step this week when the Marmon. DWH REEL Te ; . Jacobs advises Sen. Capehart to b * Herrington Co. here purchased the motor coach MAnUfac- pimseit up. to date on ea ar 3 Dros turing division of the Ford Motor Co. : . ‘Tecan, : This added industry will provide still another foundation stone in the City's future development of stabilized What Others Say— employment for a sound economy in diversified commerce. : YE are struggling against an adversary that x 3 : ... is deadly serious. e are {i iti here The Marmon-Herrington expansion along with other WE woe Sloe. ay noose! oh here additional industries here recently will add to the incentive a situation where we could lose without ever for new businesses in the future.

Lesson in Lustron : THE troubles of the Lustron Corp., at Columbus, O., seem to us an illustration of what is likely to happen to a government-planned economy. Planners at Washington had a big hand in shaping the efforts of Lustron to turn out prefabricated steel houses on a big-scale production line. Government planners indwced the Reconstruction Finance Corp. to put $37,500,000 of the people’s money into this venture, and suggested many of the steps which now, in the cold light of hindsight, appear to have been impractical and almost absurd. ; ape a If they couldn't plan one house-faétory enterprise, and make it work successfully, how could they plan a whole national economy as vast and complicated as that of the United States? mr : Government planners have tried it in Britain, with results that seem similar to Lustron’s, but on a bigger scale.

firing a shot.—State Secretary Dean Acheson. WOMEN no longer can escape their responsi. bilities. Modern war doesn't differentiate be- - “tween the ®eXed.—Maj.-Gen. Lewis Hershey, director - of Selective Service, on drafting of women, EUROPE must have dollars to buy goods” from us, and if we don't want to give her those dollars, we should let her earn them —ECA Administrator Paul Hoffman.

; ; i Pe WE must remember that, as long as the capThe court order is one way to get thoughtless motorists: italist ‘world exists, there will be a threat of

to give themselves a lesson in the risks of reckless driving. imperialist attack on the USSR.—Vice Premier If every driver in Marion County had been forced to Lazar M. Kaganovich, of the Politburo. write an essay on traffic safety at the beginning of 1950,

20 “Self-Taught Lesson A YOUNG motorist arraigned in Municipal Court yesterday for speeding was “sentenced” by Judge Alex Clark to write a four-page essay on the evils of reckless driving and speeding. ;

hae

‘Here ff what that committee reported.tn -

cut in the budget would be “meat-ax” economy. That's baloney so soft it can be sliced with a dull knife. A few months ago Sen. Byrd proposed a total budget of $36 billion, which he pointed out would be $2 billion more than was spent in the fiscal year 1948. There is no good reason whv the government ”

FEDERAL DEFICIT SPENDING . . .

What Happens If We're Broke?

(Reprinted from the Memphis, Tenn. Commercial Appeal.)

RECENTLY The Commercial Appeal gave

some detail figures on federal handouts to states _

and cities in fiscal 1949. They showed that federai grants to states and local governments for 48 programs

amounted to nearly $2 billion. They showed that -

granting President - Truman's requests of the same sort for the next figure will raise the total by $870 million a year. ; Furthermore, these figures did not include an additional $3,638,921,248 in federal aid payments made to various groups and individuals within the states, Put these grants in and you get a total of ‘$5,493,710,763 in federal funds spent in the name of aid within the states. There are many other expenditures of federal money made inside the states, though not as

direct grants, In any event, however, it is.esti-....

mated that one-fifth of the money being spent by the states is “grant” money from the federal treasury. :

Good in Theory

THERE can be no serious question of the desirability of these manifold programs, especially if you go no further thin their stated purposes. Most of these things are good in theory, and they are good in practice when need is proved and administration -is efficient. There is a question if there is as much “need” as federal bureaucrats claim in a period of high prosperity, In-any event, however; it is suicidal Tolly economically to go on taxing and spending and electing at our present rate, Excluding extraordinary expenditures caused by the war, Harry Truman In less than five years has spent $191 .- 081,394,191. The 32 other presidents in 156 years spent $179,620,113,645. Mr. Truman's budget proposals for the next fiscal year total more than $42 billion. It is estimated the federal deficit for this year will run between $5 billion and $6 billion and more than that for the following year. In spite of

that, he asks for more for his going projects and demands still more billions for vast new, untried schemes. What happens to the individual who spends beyond his income year after year? What happens to the industry or business that goes on without regard for income and outgo? : It makes no difference how desirable things may be in theory if we get hopele involved and lose everything. Use your common sense on whether the federal government és or can - be any different. a

Fourth of Nation's Income

DO you think taxes were high during the war years? They are higher now. In 1945, in the midst of a global war, federal state and local governments collected $52.5 billion. Currently they are taking $55 billion, a full 25 per

cent_of the national income, and more than Ples of helping the needy, . .... ..... .. }

the national income in 1932, 1933 and 1934.

Do you think these taxes are extracted from .

the rich man, the big corporations? Think again. Income taxes do skip lightly over the lowerincome groups and put the bite on those in the upper brackets. But, hidden taxes, secret taxes in everything it buys will strike the average American family, a $700 lick this year. The. present headlong gallop into higher taxes and higher debt imperils the economic stability -of the nation. That in turn endangers every useful and necessary service of government on every level, as well as the solvency of

business and the living of every man, woman -

and child:

Do It Better

WHAT good are rosy dreams and good intentions after we're broke? If federal spending were checked and cut to the bone, the people of the states and cities would have their own money to do what needs to be done. They would do it better on all counts. Federal controls, red tape and interfence go along with federal grants, help, benefits, handouts or whatever you call them. . Lk :

‘Receiver of Capitalism’

“his ears at the cry of the poor, he shall cry hime -

In contrast, Congress now appears to be headed toward a deficit of more than - $4 billion. : 3

will defend fo the death your right fo say i.

Se Hoosier Forum

Sunday Show scented Hauie water. No favorite store. Sp

U5¢ SUNDAY SHO

By H. W. Daacke, Carmel, Ind. ; 4 The proper name of the New Deal is the “receiver general” of capitalism. 4 : Like all good receivers, the New Deal did its * best to liquidate the frozen assets of its clients | in the laudable attempt of putting the fellow on ° his feet once more, It raised wages and farm . income to raise purchasing power, but the economic royalists raised prices in proportion. It

borrowed the surplus dollars of the chosen few, :

which they could neither spend, waste or reinvest, and handed them out among the deserving poor from whom the money had been taken. It bailed out banks, railroads and insurance companies tottering on the brink of the grave, . It fed the hungry, clothed the naked, housed the homeless, gave some work to the workless, . pulled the farmer up by. the forelock just as he '

was going down the third time, and supplied:

industry with life blood it could no longer get: at the bank. : ; In justice to the New Deal, I would say, however, that considering we are living in a world gone completely haywire, it has assembled more . brains, heart and good intentions than have graced Washington since the days of the founding fathers. : : Zig And this is the only reason why the system , of capitalism is still in existence. In spite of the fact that the’ New Deal was a savior, we still have Republicans that would bite the hand that

ble, but not probable, that they may again go.

.-+into governmental power after the long years

that they were kept away from the political feed :

~ trough and its spoils for the victor,

‘We Must Help Chinese’ By Edward F. Maddox, 959 Udell St. I velieve the time is right for a great demon-

stration before the whole world of the true .

Christian spirit in a concerted and organized effort to save the suffering people of China from

and hh

self, but shall not be heard.

To rush to the aid of stricken people in the time of trouble and calamity is the traditional’ ‘record of the United States and the threat of mass starvation in China is for us a golden opportunity to prove to the Chinese people our genuine friendship and concern for their welfare, : The plight of China should immediately be’ brought before the United Nations Council by the United States government with an offer of immediate help in food and medicine,

"An airlift from Formosa, Indo-China and Japan could begin very soon to land some des-

perately needed help to the suffering Chinese.'

The proposal to help should be made at once and other nations should be urged to help according to their ability. The Chinese people should not be made to

"feé] that they have no friends to help them in

“this time of trouble,

- I believe the great mass of Chinese peor'are not our enemies yet, but if we fail to mal... an attempt to share our great surplus of food with them, they will be incited to bitter hatred against us because they will be told we were destroying food while they starved. . To share our surplus food with starving China is not appeasement of comminism, but the carrying into action of the true Christian princi-

‘Helping Our Neighbors’ By Mrs, Mary Harton, 345 E. Minnesota St.

I guess you receive a great many letters in a day's time. Some from cranks and those who are down on everything and everybody. I hope this letter will make you feel as good as I do in" writing it, : - We have watched with great interest the results of the ACTH -treatments on Jerry and Tony and have wondered if they would help my

«cousin. ~We were all quite surprised and over.Joyed upon. reading The. Sunday. Times 10 -see

that he is on his way to New York. My cousin is Dale Roger Back from North Vernon. : Dale is such a brave fellow. Any time that we have seen him he has had a smile for every. one and always tried to play with the boys. When we read the story about Dale we all realized that this isn’t too.bad a world and that there are still those who want to help his neigh bor. I think it is wonderful, i I want to thank you for helping get Dale to New York. That is why I have written you this. letter. : 3

Now is buy for S ery. You wide choici and there i to comple graving.

Payment m at time of

Coll or Wr Hiustrated | and Pr

Jethaek

Branch ot Con

Our Tr Your N

be alive today.

ec ‘Scythe for-Sickle sons

A RECENT report. from India on the work of an Amer- strength in adversity — ican adviser on farming suggests the presence of a the midstof victory. smart man on the job. The man, a former county agent, looked matters over carefully in the province to which he was assigned. :

some of the 17 persons killed here so far this year might

warking. themselves on the islands of Formosa and Hainan —but day-to-day reports re-

- BATTLE OF ASIA . . . By Clyde Farnsworth

“China Reds Slipping

“TTETAIPER, Formosa, Mar, 24— The two most significant trends in the Far East today are the growth of the Chinese Nationalist and the weakening of the Communists in

The balance is stil} far from even—the Reds control most of the China mainland and the Nationalists are stubbornly: bul-

Communist boats in Taichow Bay, north of Sungmen,

SIDE GLANCES

By Galbraith

the House

AID FOR EUROPE . . . By Earl Richert

Surplus Plan

. WASHINGTON, ‘Mar. 24—The farm bloe in Congress and the farm organizations are rallying against the plan to sub stitute $1 billion ‘worth of farm surplus for cash for Marshall Plan countries next year. : This scheme was-pfoposed by Rep. John M. Vorys (R. 0.) as a means of saving $1 billion in cash in Marshall Plan expenditures. It has been approved by Foreign Affairs -

wy Farm

He realized that the people were not ripe for any great - or swift innovations. He understood that the economy of the region would not permit or support power. farming and expensive machines. He did, however, send for some American scythes and persuaded the native farmers to use them instead of the sickles they had been using. . The account goes on to say that the scythes were meeting with much favor and the farmers were inclined to listen - respectfully to further suggestions from the American. If all Americans sent to try to imprave conditions in other lands were willing to make haste so slowly, our reputation abroad would be better and our good intentions more nearly -

_gflect those trends. It is possible that the recent snyishing of the .Russian-con-nected Chinese fifth column in Formosa and Hainan will force further postponement of the Red offensive or increased . Russian intervention. :

= » J IT is reliably reported that a spy ring has been broken by a large number of arrests, both in Formosa and Hainan, and that it was linked directly with Russia, although the details are still kept secret. Officials have denied a weird report that -the spies actually operated a secret transmitter in the defense ministry, Reshaping of the Nationalist government and a stepping up ‘of the war effort under the presidency of Chiang Kai-shek was followed with a token demonstration of counter offensive intentions In the Mar. 15 landing on the Chekiang - province coast at Sungmen.

- . - 4 " WHETHER the landing was a hit-and-run commando maneuver or, as is more likely the beaching of newly trained saboteurs and guerrillas for infiltration of a vital Communist region, it was. a convine-

Prescribed Program Valentin Gubitchev, convicted Russian spy, took +". off for home on the Polish liner Batory, he carted an American television set with him, li Gubitchev insists he'll have plenty of use for the thing, ~ reminding us that the Russians “invented, television.” - But we suspect that he won't hgve much time for the Moscow version of “Kuhla, Fran and Ollie,” if there is one. More likely he'll be listening to Molotov, Malenkov and ~ Stalin, who'll be asking him how come he happened to get

¢ end, Comrade Gubitchev may turn out to be ision- in far-away Siberia. We can

2 lag Aiea LL 0 ta Rim tl AE My SMAI E STV L PLL ap 5 ST Ca raat -

». 3X

Recent arrivals from Shanghai report Communists in the lower Yangtze region are rushIng construction of thousands of 25 and 30-foot wooden boats of Russian design in little shipyards along the Yangtze and Whangpoo rivers. They are of Sea-going design, evidently intended for an invasion of Formosa. ® = .

AIR raids on large British shipyards in Shanghai have driven this construction out into many small yards. Such craft would need protection by sea and air for any move on Formosa, which is 90

- ‘miles from the China coast.

Popular sentiment in Shanghal suggests that the five mil-

. lion Chinese there are fast

ripening for a Nationalist coun-ter-thrust. Their submissive ness toward the Communists is

* vanishing..

. =» » MOVIEGOERS applaud the Nationalists, and. Chiang Kal-

" shek in partitular, at any op-

portunity offered by Red propaganda films, : ;

At the time a navy hip. live on

COPR, 1960 BY NEA SERVICE. WC. T. HL ASG. UL. & PAT. OFF « : "These rides with you are pertecily thing, Gddfrey—I| didn't dream one could get so much healthful exercise sitting down!"

THE Shanghai people down

down from the rafters of farm-

_ houses are each weighed by

local Red officials and the sur-

Committee. Chief objection of the farm bloc is that the Vorys plan would. take ‘$1 billion worth of. products out of governmentowned stores with no repayment to the Commodity Credit Corp., the price-support organization,

» » ~ PRESUMABLY, with Marshall Plan countries doing

little purchasing of farm products on the open market, the CCC would have to buy an extra $1 billion worth of commodities to hold up farm prices. This would greatly increase the costs of the farm price-support program.

“It would certainly make =

the farm program look bad,”

.said Rep. Stephen Pace (D.

Ga.), farm bloc leader. The three major farm organ-

‘izations are expected. fo :op-

pose the Vorys plan on the

Paul Hoffman. head of the Economic Co-operation Administration, should not be -

. said.

A FARM BLOC member said that, if the Vorys plan were passed, Congress prob-

“ably would have to give the -CCC an additional $3 billion -

of borrowing power instead of .

the $2 billion now requested. ‘Rep. Vorys said it was true that $1 billion would not be saved if the expected savings in Marshall Plan expenditures were offset by increased CCC purchases of farm products. He said, however, that the procedure he proposed might force Congress to examine farm price-support costs and perhaps reduce them. : » ” = “HERE we are with a surplus of food of the kind that Marshall Plan countries want

‘and with a shortage of dollars. It is only sense to give them

the food and not dollars,” he

Marshall Plan officials esti~

‘mate that of the $2.9 billion

proposed to be spent in Europe next year, $1,396,000,000 would go for food and agri-

s18

IMME OPEN