The Bismarck Tribune Newspaper, March 24, 1936, Page 7

aN THREE INQUIRIES INTO U, 8. RELIEF PLANNED Both FERA and WPA Face Probes; Use of Misery Money in Politics Considered Washington, March 24.—(#)—Three separate inquiries into the adminis- tration of the $4,000,000,000 work re- Hef fund were in the making Tuesday on Capitol Hill while a house com- mittee prepared to consider Presi- dent Roosevelt's request for a new ap- Propriation of $1,500,000,000. None of the three had yet been finally -approved, but Democratic leaders indicated no attempt would be made to block them. One would requrie no action by the senate. It was a proposal by Repub- Mean members of the appropriations committee to inquire into the admin- istration of this year’s fund before appropriating the $1,500,000,000 for next year. The broadest proposal was a resolu- tion by Senator Davis (Rep.-Pa.), pending before the audit committee. It would authorize the expenditures committee to make a “full and com- plete investigation” of the works pro- gress administration and its predeces- sor, the federal emergency relief ad- ministration. The third inquiry would be more limited. It would be ‘authorized in a resolution by Senator Robinson of Arkansas, Democratic leader, to create @ special committee to investigate campaign expenditures. The commit- tee’s power would be broad enough to inquire into use of relief funds for political purposes. In this connection, Chairman Glass (Dem.-Va.), of the appropriations committee, said he would appoint a subcommittee to consider a bill by Senator Hatch (Dem.-N.M.) specific- ally outlawing political contributions by WPA workers. Another relief development Tues- day was an announcement by the works progress administration that in December its monthly wage rate aver- aged $50.03. The rates in the south averaged $26.78; in the northeast, the highest, $58.10. MORE MOISTURE FOR MINNESOTA CERTAIN Rivers Still Out of Banks But Level Falls Slowly South of Twin Cities St. Paul, March 24.—(?)—More rain or snow was forecast Tuesday for southern Minnesota where spring thaws have caused several rivers to overflow their banks and inundate lowlands. The Cannon river was out of its banks between Red Wing and Cannon Falls and several thousand acres were flooded-in-that-section.- * ‘The Mississipp! river at Red Wing was within two feet of flood level— eight fee—and dynamite was used to relieve pressure against the highway 46 bridge. Part of North Mankato, on the Min- nesota river, still was covered with from’three to four feet of water as the result of a weakened dike below the town, which permitted an overflow to back in, However, the Minnesota and its main tributaries were reported to be slowly receding. Several highways in southern Min- nesota had from one to two feet of water flowing over them and the Chi- cago Great Western railroad reported about a mile of its tracks between Welch and Red Wing were inundated. A dozen farm families moved to higher ground, Americans Hold 45 Per Cent of ‘Sweep’ Dublin, Irish Free State, March 24 —(?)—American ticketholders in the Irish Free State hospitals sweepstakes had drawn 45 per cent of the chances on horses running in the Grand Na- tional March 27 when the draw in the town hall was adjourned for lunch Tuesday. Every one of these tickets held by Americans was certain to pay at least $3,600, for that is the prize to be given to each ticket drawn against a horse, regardless of whether the horse even runs, Holders of titkets drawn on the horse that wins will get about * $150,000. Nationalists Fighting Communists in China Peiping, March 24.—(?)—Heavy shting was reported from several its in southwestern Shansi prov- ince Tuesday between reinforced Na- tionalist government troops number- ing 38,000 and a communist army campaigning in the north central sec- tor of China. The troops of Generalissimo Chiang Kai-Shek poured new strength into Shansi, and militarists asserted the momentum of the Communist offens- ive was shattered with the recapture of Suitoucheng, Communist capital, and severance of important Commun- ist communications. Workers Give Up Part Of Pay to Aid Concern Bellaire, O., March 24—(?)}—Four hundred employes of the Imperial , Glass corporation decided voluntarily Tuesday to give 10 per cent of their wages for 40 days to aid in financing rehabilitation of the flood-damaged plant. Earl W. Newton, president of the glass corporation, said the em- ployes would be given stock or bonds in the concern in return for the 10 per cent contribution. Mellon Celebrates 81st Birthday on Job Pittsburgh, March 24.—(?)—Andrew ‘William Mellon, one of the world’s wealthiest men and three times secre- tary of the treasury, celebrated his 8ist birthday anniversary Tuesday, apparently as busy as he was the day he first went into business for him- selt 64 years ago. —— |_ loods Leave Thousands in Plight of These Marietta, O., Victims | Mrs. school building came a proces sion of others dis; the rising Driven from her own home, Eloise Allen prepares food for other refugees in a nearby schoolhouse which stood on higher ground than her own. flooded kitchen. To the safety and shelter of the Jack Wade, 68-year-old bache- lor, watched the waters rise about his own house. He gathered up what he could of his possessions and carried them to shelter. Here he sits, with the pitiful pile of bedding - behind him, getting into his first dry shoes and socks in many hours. To the children, saved from danger and made temporafily comfortable, the tragedy could not be as grave as to théir elders. Here are two refugee youngsters sitting on a fat tress laid across the top of desks in a schoolroom. It is all a good deal of a lark to them. the Reduction in Industria Goods Prices Seen As Alternative Is to Increase Farm Income, Brookings Expert, Says in Review By HAROLD G. MOULTON ft President, The Brookings Institution, | Washington, D. C. Much current discussion of eco- nomic problems is focused too intent- ly on the depression to shed real light on our fundamental difficulties, To- day’s troubles obscure our view of what happened yesterday and what is likely to happen tomorrow. Ac: tually our economic structure was ing undermined by grave maladjust- ments long before the depression; in our “prosperity” years, millions of} American families were poor. Farmers and people in the small towns scarcely need to be told this. In 1929 and before, agriculture was not prosperous. Farmers had to pay high prices for the things they bought, but got little for what they sold. They were in a depression even then— caught between what looked like ir- ible forces and an immovable There are about 54 million farmers and aii living in the small towns. In addition, professional men, domes- tic workers, small shopkeepers and others living in the cities were sim- ilarly affected, inasmuch as they could not utilize organized pressure to force upward the return on their services. ‘These with their dependents total about 20 million. While their stan- dards of living perhaps were not ac- tually lowered, most of them realized little gain from the great advance in peaaunslye: efficiency made in that pe- riod. The diminution in purchasing pow- er of these groups, or its failure to rise, in turn, reacted on others. Busi- ness men sold less goods, and workers everywhere found it harder to get jobs. The forces that were retarding the farmer’s prosperity were by no means helping the man in the city. Progress—But Not Enough It is true that our economic system has brought us living standards high- er than those existing anywhere else | in the world. Between 1900 and 1930, as an example, per capita income, in terms of what it would buy, increased about 38 per cent, at the same time, working hours were reduced about 13 per cent. But the fact of idle plant capacity indicated that we could have produced more goods and thus raised living standards. Studies we have made at the Brook- ings Institution, aided by a grant from the Falk Foundation, of Pitts- burgh, throw significant light on this. ‘We made a detailed survey of produc- tive capacity in manufacturing, min- ing, f and all the other major divisions of industry, resulting in the finding that our productive plant could have turned out about 20 per cent more than it did. If nobody had wanted to buy any- thing, the idle plant would have been easily explained. But, millions of Highway to Good Times families were not getting nearly enough income to satisfy their wants. Nearly 6 million farm and city fam- ilies received incomes of less than | $1,000; 16 millions received less than $2,000; and 19 millions, or 71 per cent of the total, less than $2,500. More than 54 per cent of farm families got less than $1,000. Of course, in con- sidering farm income the lower living costs of rural areas should be kept in mind. But, no matter where they lived, families trying to pay for food, | clothing, medical service, education, etc., on $1,000 were not prosperous. The extent of unfilled wants may be judged by the fact that nearly all family income in the $2,000 class or lower is spent for ordinary consump- tion goods—food, shelter, clothes, edu- cation, etc. Fifteen million families got less than this figure. : Power Must Expand Our productive efficiency is in- creasing year by year in normal times. That is, we are learning how to make things more cheaply. But if the people are to buy the added prod- ucts thus made possible, their pur- chasing power must grow with pro- duction. ee ‘4 Fi Expanding purchasing cane not be created simply by printing moré money. That would just raise prices. And we cannot accomplish much by “sharing wealth or income.” Such a program would entail taking income from skilled workers, many farmers, small shopkeepers, govern- ment clerks, etc. It would not merely “soak the rich.” Purchasing power can be increased only as we learn how to produce goods and services more efficiently and pass the benefits of that efficiency on to the masses. If we devise a way to make two articles where we for- merly made one, and we pass on this gain to the people, purchasing power is actually created—the extra article can be sold. Higher Wages and the Farmer Organized labor for many years has tried to obtain the benefits of in- creased efficiency by pressure for higher wages. When improvements in production methods in a given plant made it possible to turn out two articles at what one had previously cost, organized labor sought to direct the savings into higher wages. This gave certain groups of workers more purchasing power, but the effect on farmers has not been favorable. It has forced them to pay higher prices for manufactured goods or has pre- vented them from obtaining lower ones. The same was true in large de- gree of the city dwellers mentioned above who do not work for wages, numbering 20 million. An eco! disparity was created between two great segments of our population, rais- ing-a serious barrier to ‘economic progress. But if we permit the fruits of man’s inventive genius and technological ad- vance to reach the people in the form of price reductions, no such batriers are raised. All classes benefit alike to the extent that they are consumers; the chief gain is in the low income groups where it is most needed. To the farmer, it means better houses, tools, food, clothes, and in gen- eral a steady rise in his standards of living thatshe can get no other way. Price reductions, of course, must not come from wage cuts, if they are to increase purchasing power. But we must reduce prices as we learn to make things more cheaply. This is the way we can expand consumption sol- idly, year after year, which in turn will call forth larger production. It is the way forward envisaged in the theory of our profit and loss system. Increased efficiency makes price re- ductions possible; competition insures that they actually take place. Price Stabilization Tendencies ‘Whereas period of great techno- logical advance between 1870 and 1890 brought notable price reductions, con- tributing much to raising living stand- ards, there was little reduction of prices in the similar perod of 1922-29. Productive efficiency in manufactur- ing in the latter era as measured by output per worker, increased about 25 per cent. But forces of price mainte- nance had become so strong that retail Prices in the aggregate remained prac- ucally stationary. Of course, there was competition in many lines, and prices declined ac- cordingly. But this was not true of all producers. Artificial devices to mair: tain prices dammed up the stream of progress. Producers neglected to face the fact that in the long run they could prosper only as the masses could buy an expanding volume of thelr goods. This fact must be faced. We must remove the obstacles to price reduc- tions which now exist, wherever they are. It is the only way that-people who live in small towns or on farms, or otherwise do not work for wages, can fully participate in our economic progress. And, unless these do par- ticipate, we can have no broad, con- tinued progress. The failure of industrial prices to decline is primarily responsible for the movement in recent years to attempt an improvement in the farm situation by artificial methods of restricting produetion, with a view to restoring “price parity” with industry. However helpful such policies may be tempor- arily, agriculture and industry com- bined obviously cannot expect to ins crease the total production of goods and sérvices for the Amefican people a8 & whole by restricting output and raising prices. National cooperation in the expansion of output, giving to all the people the largest possible con- sumption, is the paramount necessity. In 1812, British warships fired a salute to George Washington as they passed Mount Vernon. Now flags aré lowered to half mast as warships go by, and the ship's bell is tolled. Stop Getting Up Nights Use juniper ofl, buchu leave to flush out excess acids and matter. Get rid of bladder iri tion that causes waking up, frequent desire, scanty flow, burning and he. Get junfper oll, buch . in Tittle green tabi Bukéets, the bladder laxative. In four days if not pleased go back and get your 25e, Get your regular sleep and feel “full of pep.” Sold by Finney's: Drug Store and Hall's Drug Store.—Advertisement. te. Want Greater DEPENDABILITY? XTRA-RANGE 5 CHOOSE THE SPARK PLUGS If another manufacturer of spark plugs ateempted to duplicate a Champion in every detail, he would be Hable to suit on 27 broad basic patents issued CHAMPIONS USE! On the edges of the flood zone, residents the moving line that marked watched anxiously ¢ rise of the water. . Who * would be next to be forced from his home? Hill peers intently from her window at the ominous water- line, and her Chow dog is Here Eleanor equally interested BRAZIL ORDERED UNDER ARMY LAW President Vargas Decrees That Command Will Be Effec- tive 90 Days Rio de Janeir law Tuesday over this nation of 47,- 000,000 people. The exectitive decree, effective for 90 days, was published Monday night, just 51 hours before the expiration of the three-months state of siege, de- clared during the November uprising, characterized by the administration as Communistic. Simultaneously, a number of promi- nent persons, inculding a senator, a radical member of the chamber of de- puties, a leader of the government opposition and an army captain were} — arrested in a swift roundup. 37 of its population. New ITH Ford Dealers, “used car” is gone. offered an exclusive new automotive quality in “R&G” cars, This new term—“R&G”"—stands for Renewed and Guaranteed. each car offered under it rigid set of specifications as to mechani- cal condition and appearance. And the result is a product so fine that it can be sold with a written guarantee of “Satis- faction or Your Money Back!” Under this guarantee, SQUARE DEAL VALUE | CARS AND TRUCKS + ROOSEVELT BOUND FOR FISHING FIELD Train Silent After Two Hour Talk With Chief Miami, Fla., March 24—()—Aboard one of Uncle Sam’s new destroyers, the U. S. S. Monaghan, President Roosevelt cut across the gulf stream Tuesday bound for the far eastern side of the Bahama Islands to begin a two weeks’ fishing cruise. The happy sea-going president shoved off Monday evening from Port Everglades after acting in the unhap- py incident of the disciplining of Maj. Gen. Johnson Hagood. The veteran army officer, who was relieved of command of the eighth corps area by superiors for referring to WPA funds, as “stage money,” left silent from a two-hour interview with the commander-in-chief. Marvin H. McIntyre, a secretary to Mr. Roosevelt, then issued the follow- Gen. Johnson Hagood Leaves; ‘Million Persons | | Hail ‘Queen Mary’ Glasgow, March 24.—(#)—The new British superliner, the Queen Mary, went down to the sea Tues- day to the cheers of a watching crowd estimated at a million per- sons, She arrived at Greenock, at the mouth of the Clyde, after a slow but uneventful trip of 15 miles down the river. As she was tied up to a pier, cheers went up from a huge throng, part of which came from aboard 60 special trains for the occasion. Glistening with fresh paint— the hull black, the superstructure white, the three enormous funnels red—Britain’s rival in speed and size to France's Normandie was backed out of her fitting basin Shortly before noon. RUNYAN HEADS FIELD Pinehurst, N. J., March 24.—(P)— Paul Runyan of White Plains, N. Y., the defending champion, headed a field of 110 for the opening round Tuesday of the $4,000 annual North and South 72-hole open golf tourna- On a wingless autogiro, now being manufactured, the propellers botlt sustain and propel the craft. Before You Buy a Gas Range, Ask Frank G. Grambs Company To Show You The beautiful, high grade Detroit-Jewel Gas Ranges Crown Gas Ranges or Compact, Moderately Priced Premier Gas Ranges A complete variety of styles, March 24.—(P}— President Getulio Vargas, proclaiming the equivalent of a state of war throughout Brazil as a result of “sub- versive activities,” enforced martial England has one motor car to every by Alex Rosen & Bro colors and prices, at big savings. Frank G. Grambs Company Plumbing & Heating Supplies ment over Pinehurst’s new grass greens, MODERN WOMEN Not Sefer monthly pain and delay dus to ing statement: “The President and General Ha- good talked on the train this after- noon, General Hagood will take a three months leave of absence and his future assignment to duty will be de- termined in the meantime.” DOCTOR TO APPEAL COURT'S JUDGMENT Gronna Holds Minot Physician Collected $9,205 Too Much From County colds nervousatrain,e hich ind Brand Pill tive, she Diasnond Beso Pil head and Gas Ranges Sidrugaine for over 45 years. Ask for Rear 112 2nd St. Tel. 561 CHICHESTERS PILLS jeonpochmeaRee °TME DIAMOND VY BRAND” STATE FARM MUTUAL AUTOMOBILE INSURANCE CO. LEGAL RESERVE COMPANY RATED A-PLUS We can save you money. Call us for RATES. More cars insured with us than any company in the United States. Hundreds of satisfied custom- ers in Bismarck and Mandan. Let us figure with you and save you money. Gerald Craig — 207 Bdwy. Phone 820 — H. C. Hanson Minot, N. D., March 24.—()—A $9,205 judgment agaihst Dr. Henry L. Halverson given Ward county as an alleged overcharge while Halver- son was county health officer from 1929 to 1935, will be appealed to the state supreme court, counsel for the defense said Tuesday. District Judge A. J. Gronna held that the county board of health had “acted arbitrarily and had grossly abused its discretionary powers” in allowing bills for Dr. Halverson’s mile- age. During the period involved Dr. Halverson was paid $13,898.80 as his expenses while health officer. The Ward county health board paid Dr. Halverson mileage ranging from 20 to 30 cents a mile for expenses, following a precedent established about 1912. Judge Gronna pointed out in his decision there was no fraud involved. NOTICE No Dumping The ordinances of the City of Bismarck pro- hibit dumping garbage, refuse or rubbish on va- cant lots or alleys. Any person doing this is sub- ject to a fine. Nationally-Known STETSON Board of City Commissioners. HATS for men, sold exclusively Introducing a Used Car Standard of Specified Quality the day of the You are now standard of judge of the car’s quality. After pur- chase, you may drive it two days, and put it to any driving test you please. If it fails to measure up to your expecta- tions in any way, you may return it to your Ford dealer's, and have your money refunded in full~cheerfully, no questions asked. In addition, you will receive a written service warranty as a further protection. This double guarantee removes forever the elements of doubt and uncertainty that have troubled buyers of used cars for years. The R&G emblem is the mark of an exclusive Ford dealer value. Go to your Ford dealer now, and see his R&G dis- play. Your present car will be accepted at its highest cash value—you may not need any money to drive away a car that you can be really proud to own. Easy terms through Universal Credit Cc., Authorized Ford Finance Pian. It means that must meet a you are the BUYERS UNIVERSAL MOTOR COMPANY Authorized Dealer for Ford, Lincoln and Lineoln-Zephyr in Bismarck 122 First Street Telephone 981