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About The Plattsmouth journal. (Plattsmouth, Nebraska) 1901-current | View Entire Issue (March 11, 1935)
MONDAY, MARCH 11, 1935. PLATTSMOUTH SEMI - WEEKLY JOURNAL PAGE FIVE Federal Home Loan Plan is One Long in Practice Loan & Building Associations Country Had Plan Adopted by the Government Agency. Recent governmental and public recognition of the superiority of long-, term amortized loans tor financing j homes is the culmination of mcre than a century cf development by local building and loan associations, according to an article in the current issue of the Federal Home Lean Bank Review. The soundness of the basic prin ciple behind these thrift institutions brought them to a position v. here; they carried in 1930 over $7,000.-! 000,000 in heme mortgages, or one third of the urban home mortgage debt of the United States, a far high er proportion than is held in any other single form cf lending institu tion. The best practices of building and J loan associations have been embodied In the plan of operation cf federal j savings and loan associations, v. hich retain tho characteristics of local, j private, mutual thrift and hcn.e-ll-j nanring institutions, with the eddi-j tional advantages of gavcrnment j supervision and investment. There I are now more than 700 of these as-j Bociations in 43 states, consisting; both of new institutions and old-established associations formerly un der state charter. The pioneer building and loan as sociations of the early nineteenth century began as neighborhood clubs with the purpose of enabling one or more members to build a horns. Mem bers joined at the same time and paid equal sums per share until their pay ments and profits amounted to the nominal value of the shares sub scribed. Priority in securing a loan was then determined by auctioning off the association's funds to the highest bidder, and the entire fund was thus distributed. This 'terminating" plan had ser ious defects, the worst of which was that, since an association "termin ated" upon the maturity of its single series cf shares, the good will and experience acquired by years of effort were thrown away. . ........ . &.. The "serial plan," Involving a new series of shares at regular intervals, and making the association perpetual, was developed to avoid these disad vantages. The weakness of this plan was the necessity of finding large Bums at recurring intervals for pay ing off maturing shares. Then followed wide adoption of the "permanent plan" which consists of the public issuance of series of stock at irregular intervals as required to increase resources for new loans. The inflow of new investing members is j comparatively regular and since noj great number of shares mature atj any one time, maturities can be metj out of income. I A further development in some lo calities, departing from the original co-operative principle, was the "guar antee plan" by which a certain class of shares is made non-withdrawable and its earnings used to guarantee to other investors' shares of a defin ite rate of dividend or maturity date. After careful sifting cf these plans and their variations and details in different parts of the country among some 11,000 building and loan asso ciations, the federal savings and loan associations were established on the basis of the "permanent plan." Ob solete and unsound practices were dropped, abuses guarded against, and operations simplified so as to be readily understandable by both in vestor and borrower. The object was to provide additional home financing facilities in areas where such funds were inadequate, by attracting local investors on the basis of safety of their funds, a reasonable income and the assurance of management along tested and approved lines. A hundred years of history tad made it clear that the only effective way to obtain uniformity and ade quate control in public interest was through federal legislation. In the establihsment of federals there was full realization that the business of a thrift and home-fianc ing Institution 13 essentially local, re quiring local management, a large proportion of local resources and per sonal knowledge of the prospective borrowed by the lending institution "The business has profound social significance and affects the entire community," says the Review, "there lore the entire community should participate, lenefits should be mu tual and undue profit through ex ploitation should be Impossible." Your homo town merchant will do more to accommodate you than any big city store, mail order bouse or radio station peddler. Isn't he entitled to your trade? tot WAITC "What other cities have done, your city can capacity. do In proportion to its hustles The man who gets the business. In these days there Is little room , for sentimental slogans in" order to j gain foreign trade. The fact is that our export trade has never been a chadoow, and we don't want to be come one. To place any obstacle in the way of this trade would be tanta mount to community commercial sui cide. When citizens of a community get together, stay together and pull to gether, they accomplish great things. ' The famous Peabody Hotel at Memphis. Tennessee, Is running ad vertisements in many newspapers in the Routh. inviting tho3e who can to Epcnd a veek-end at the Peabody. The ads tell cf their superbly ap pointed rooms and their five famous restaurants. This plan should be car ried cut by hotels in all large cities. Thry would draw much business by advertising In the newspapers in smaller cities and towns. Everyone 13 interested in good roadd. They should never let up keep hammering away until they get to ride over good roads In every di rection. Any city that can truthfully ad vertise itself as a good city in which to live and make a living should loudly proclaim that fact to the world. Our politicians would learn much if they would listen to what is said about them and read what people think of them. They don't seem to learn much by experience. TO REBEL IF PEICES RISE Chicago. Right now American housewives ' are changing their buy ing policies to meet the problem of rising food costs. But if prices keep going up, "women will rebel!" Thus Mrs. Wilbur Fribley, president of the Housewife's League of America, de tailed the tactics adopted by the na tion'? largest purchasing power. " This was the burden cf her opin ion: "We stretched our budgets as much as we could. Now we are do ing some deep thinking, rearrang ing our menus, buying cheaper foods and substituting staples for many luxuries. We are using more lowly vegetables, such as parsnips and car rots, instead of expensive green groc eries. More people who relished brus sells sprouts are eating cammage now. More fish is finding its way to the table. It's cheaper than meat and people don't eat as much. We have gone back to the old method of buying by price instead of by qual ity." Mrs. Fribley recalled statistics placing food costs at a level 15 per cent higher than a year ago and an agricultural department estimate that they might ascend another 11 percent in 1935. She epitomized the reaction of the ladies of the land in this statement: "We wouldn't mind higher prices if our husbands in comes were boosted, too." D0TJETS RURAL POWER PLAIT Washington. The advisability of spending work-relier funds for rural electrification was questioned by the American Liberty league thru its president, Jouett Shouse. "Is it proposed to duplicate util ity facilities at the expense of In vestors in existing plants?" he ask ed. "Is it the purpose of the admin istration to expend this money of the taxpayers for furthering competi tion by government with industry? Does the president propose establish ment cf other projects similar to the Tennessee valley authority? "Into this congress should inquire carefully and if there are to be pow er projects created whether along the Missouri river, the Arkansas river or any other river, the authorization must be granted specifically by con gress and not assumed under a gen eral appropriation bill for purposes of relief and employment." Shouse reviewed the 'history of the league and its objectives, emphas izing the non-partisanship of the or ganization and pointing out that "in frequent instances it has been able to endorse the position of the adminis tration and that it has been glad to giv3 such endorsement whenever the opportunity offered." Great. American Foflunes;Threarened by Taes. t - - ' -MS ' qv y : i . i , f I - ' 'A ins n J. P. Morrn ' f 1 J. P. Morrn P t, ,-? i .Multi-millionaire ia By GAYLORD REAGAN International Illustrated News Feature Writer Washington, March 7. Large for tunes are the target for legislation urged by two of the outstanding sen ate leaders, George W. Norris, of Ne braska, and Huey Long, of Louisiana. Both agree on the principle that the vast wealth concentrated in the hands of a few American families should be redistributed, but they dif fer cn method and extent. There is little chance that the pro posals will be adopted by the senate as at present constituted. Senator Long wculd institute a "sharc-our-wealth" program which he claims would give every deserving family not less than one-third of the average wealth per family in the U. S., or not less than $5,000 free of debt. In accomplishing this, the "Kingfish" would limit fortunes to a few million dollars. 80 Per Cent Tax Norris has a different idea about the matter. He has no complaint against the taxation schedule on es tates up to $10,000,000, but would levy 90 per cent 90 per cent instead of the present CO per cent on the balance of fortunes above that sum. The Nebraska senator would not use money derived from inheritance Wabash News William Reuter and wife were vis iting and looking after some business matters In Lincoln on Tuesday cf last week. William Win get, who has been farming on the Hill place near South Bend, has moved away and will en gage in other occupation. Charles Schaeffer, cf Murdoch, a representative of the Trunkenbolz Oil company, was a visiter in Wabash on last Tuesday, bringing with him a load of gasoline and kerosene as well as some lubricating oils for the peo ple cf Wabash. Warren T. Richards was over to Murdoch last Saturday, where he was renting the farm at South Bend to Will Deickmann, who will cultivate the tillable ground thereon, while the pasture will be used by Clifford Jones, who heretofore has been employed by Robert Long on a farm near South Bend. Fred Towle has disposed of the trusty gray horse he ha3 owned for a considerable time and which he con sidered he could not get along with out. He sold the animal to an east ern horse buyer and the horse, which has been a part and parcel of the farm will be engaged in some other line cf business in New York, for that is where he has gone. Will Farm at South Eend Clarence Ohms will farm near South Bend the comng summer. On last Wednesday he moved to the place he will occupy and was assisted 'in getting his cattle over by Fred Towle. Mr. Ohms will farm what i3 known as the Hill place a short distance southwest of South Bend. Sse the goods you Buy. Catalog descriptions are flowery enough, cti how about the coods when yo get them? K:-:- W - john D- Rockefeller i r Y 1 1 'llzi " '; tz.. "'A United, State who fortune' are threatened by taxation. taxes to put through any share-the-wealth program. Ncrris aims rather to curb the power which great wealth endows and avoid the potential dan gers of such power. Apparently, he would go no further with distribution of the de3th-tax revenue than its ex penditure on government services. Long has carried his "share-our-vealth" campaign to many parts of the United States .and has built up considerable sentiment in support of the plsn. He claims a membership of nearly 4,000,000 in Lis society pledg ed to fight for rcdi?tribution of the wealth of the nation. "Share-the-Wealth" Plan In promising each deserving family cne-third the average wealth per family in the rr.Jted States, Long apparently include all property val ues, such-as the appraisal value of Tactoric-s and railroads. Such wealth could not be redistributed, however, unless all property were nationalized. Ilis scheme is phrased in generalities and can hardly be"subjected to crit ical analysis. But with Norris it is different. Not even hi3 enemies have charged him with being a demagog. His proposals are worthy of serious consideration and are niOFt certainly within the realm of possibility. There is indisputable sentiment in Engineers Call for Halt on U. S. Power Projects Deny Water Generator Is Cheaper Than Steam in Generating Electricity. The government's plans to pour millions of dollars of easy money in to "highly speculative" hydro-electric projects were attached recently by speakers at a joint meeting of Chi cago engineering organizations. The federal administration's theory that cheaper electricity can be supplied by water power was denied by steam power engineers and hydro-electric engineers conceded the difficulties of transmitting power generated by wa ter. It was repeatedly pointed out that recognized grour-s of engineers had not been consulted by the government in planning its huge public works ad ministration projects and that even protagonists of water power develop ment seriously question the value cf building many more power plants un til markets have been cultivated. Claims Steam Power Cheaper. Citing production cost figures for hydro-electric and steam generating electric plants, W. L. Abbott, con sulting engineer for the Common wealth Edison company, led the as sault upon the government's "yard stick" program under the Tennessee Valley authority. Abbott's figures showed that steam generated power costs less than the current supplied by hydro-electric plants. "Of course these costs of water power can be cut down by the gov ernment's method," Abbott said. "Production costs certainly can be trimmed if capital expense is charged off to soil erosion, navigation, social , " 1 favor of preventing progressive ac cumulation cf great wealth during succeeding generations. The liberal i;thocling congress has received under the New Deal makes it possible that such social legislation, which once would have been thrown out as too radical, would find considerable favor now among our national legislators. Multi-Millionaires Hit What reaction would be produced among multi-millionaires of the U. S. by legislation cf confiscatory death tares is problemrtical. It might drive some of the great American fortunes abroad, although taxes in England are far higher than in the United Gtates. The recent action of J. Pier pont Mcrgan, multi-millionaire bank er, in disposing of many cf his hold ings in the United States has arous ed speculation. Others rated as multi-millionaires, whose weaith would be drastically cut by the proposals of Norris and Long, include Andrew W. Mellon, of Pittsburgh, former secretary of the treasury; enry Ford, automobile mag nate; John D. Rockefeller, oil baron, nnd the du Pont family, whose for tunes were made in munitions, but now are in many other ventures, the chief cf which is General Motors cor poration. Their combined fortunes are rated in the billions. uplift or 'a more abundant life.' "Hydro-electric development de pends solely upon the development of markets. There are numerous power sites available but until markets are created the expenditures of vast sums in hydro-electric plants are useless. But the government is saying, 'Damn the .narkets go ahead with the pow er plants. " Views Projects with Dismay. "Ii is only with dismay that we hear cf the government's PWA plans Tor spending billions of dollars," said Frank D. Chase, past president of the Western Society of Engineers. "Five billions are to be spent, but little has been said of engineering. Thank goodness, the depression will probably be over before the plans for some of these projects can be com pleted and their economic feasibility proved." An eleventh post in the cab inet, that of "secretary of engineer ing," was suggested by Mr. Chase ' in the eTEnt the government is to maintain its program of easy money spending. Frank S. Clark of Boston, discuss ing steam power, said vast strides In the development of high pressure steam boilers, mercury-vapor gener ators, and Diesel engines have placed the fuel power industry in an ad vantageous position in the last de cade. BAIATA TAKEN TO PRISON Chicago. Joseph Baiata, who pleaded guilty to an alleged plot to swindle the Abraham Lincoln Life Insurance company, and an Indian apolis Vank with funds embezzled from a Chicago bank, wa3; taken to Joliet prison to start his one to ten year term. .Baiata admitted the em bezzlements of "about, f54,000; from the Amalgamated ; Trust and Savings bank in .which the . gang supposedly duped a youthful clerk, Otto Van Derek, into "pulling" checks.' MANLEY NEWS Mr. and Mrs. John C. Rauth were transacting business In Louisville on Saturday. Mr. and Mrs. William Rau and George Rau drove to Omaha Sunday to spend the day. Mrs. C. E. Mockenhaupt was quiet ly passing her 70th birthday anniver sary and was receiving the congratu lations and well wishes of her many .nends. Mr. and Mrs. Fred Lawrenscn were in Weeping Water list Wednesday, where they papered a number of the rooms at the home of Mr. Lawrensen's mother. FOR SALE at Manley Garage, corn shredder in excellent condition. Can deliver any time. See me or my father, Aug Krecklow. Lawrence Krecklow, Manley, Nebr. Mrs. Henry Uohrann and Mrs. John Carper were the hostesses rt a social mcctir.g in the hall Tuesday. Prizes were won fcy Mrs. John Shcehau and Miss Su3 Mockenhaupt. David Erann and Harold Krecklow were in Omaha 2nd Council Bluffs last Saturday, where tley Lad some mat ters to look after, a3 well as visiting with friends while there. Mr. and Mrs. John Bergman spent Sunday at the home of Mrs. Bergman's mother, leaving their son there whilo the painting and paperhanging If in progress at the Jchn Bergman heme. Mr. and Mrs. Theodore Harm3 en tertained at a pinochle party Sunday night. There were seven tables of plaj'ers and prizes were won by Mra. Ralph Keckler, Mrs. John C. Rauth, Ralph Keckler and Hugh O'Brien. De licious refreshments were eerved. Jame3 West and wife moved a few daj's ago to a farm between Avoca and Otoe, where they will farm the coming summer. They were farming the Frank Johnson place during the past year. Robert Wiles immediately moved onto the Johnson farm which was vacated by Mr. West and wife, and will farm there the coming sum mer. Met with Bad Weather Fred Stohlman living north of Manley began shelling corn last Wed nesday morning, but was forced to postpone the job later in the day, when the heavy snow and blizzard halted the work. The Storm Last Week The snow storm last Wednesday, which developed into considerable of a blizzard before the close cf the day, caught many on the road and com pelled ethers to abandon proposed trips. Among those who were stalled was the writer. After floundering in a snow drift beside the road, we were aided in getting out by Grover Law rensen, this being at the crossing of the highway and the Missouri Pacific track. After proceeding about a quar ter of a mile we found ourselves in a like predicament and were assisted in getting out by John C. Rauth, who also kept us over night. To both these gentlemen, we wish to express our sincere thanks. Manufactures Corn Shredder Lawrence Krecklow, during his spare time, converted an old separator which had outlived its usefulness as an efficient thresher, into a corn shredder, which he has used for some time and says it works to perfection. He nowTias his corn fodder all work ed up and has acquired some very good feed as a result of his resource fulness. He has no use for it longer and has an ad elsewhere in this de partment offering the same for sale. Mrs. Charles Gade Poorly Mrs. Charles Gade, who has been making her home in Ashland for some time, has not been in the best of health, having a severe attack of rheumatism. Her sister, Mrs. Harold Cochran, also of that place, has been assisting in her care. Last Sunday the parents, Mr. and Mrs. Fred Fleischman, were over to Ashland ior a visit at the home of Mr. and Mrs. Gade and also with Mr. and Mrs. Cochran. Moved His Cafe Oscar E. McDonald, who recently purchased the business of William Casey when that gentleman departed for McCook, has moved the business from the hotel building to the former location of the cream station. Oscar says he expects to put in ice cream service when the weather gets warm. He ha3 been assisted by his son, Robert McDonald, during the past week. Enjoyed Trip to Shenandoah Roy Steinkamp and his father, Adolph Steinkmap, were in Shenan doah last Saturday, where they were visiting and looking after some busi ness matters. While it made him somewhat tired making the long trip, the elder Mr. Steinkamp enjoyed the ride very much and stood it pretty ana eft r5 fi There is ro rat"c?3ctciy c::u:,ti trtc icr Gcoi Insure.: cc and Bands! Wc Give Service We cfTcr y:u t'jc facilities of the lrrgcrt rr.d oldest Insurance Companies in America! ISUANC Phone- is PLATTS MOUTH well. Thi3 is the first long trip he ha. i taken since his prolonged illness., but he was at Elmwocd during the forepart of the week and Is glad to be able to get about again. Many Attend Dance at Elmwood Those attending the pro-Lenten dance rt Elmwood lar;t Monday night were Mr. and Mrs. William Rau, Mr. and Mrs. Hugh O'Brien, Mr. and Mrs. Harry O'Brien, Mr. and Mrs. Walter Mockenhaupt, Mr. and Mra. Walter O'Brien, Mr. and Mrs. Andrew Stan der, Mr. and Mrs. Herman Rauth, Misses Sue Mockenhaupt, Norma Wil te, Sheehan and Ellen Kelly and the Messrs. Jchn Kelly, Joe Murphy, Taul Murphy and George Rau. HOPES FOR FORT PROGRAM Washington. New hope for a ? 600. COO improvement pre Tram at Fort Omaha was expressed by Rep. McLaughlin (d., Neb.). "The whole mattsr apparently will depend on the attitude cf the war department," McLaughlin said, "and we cannot tell what that will be. But passage of the works bill would provide the needed funds." Ladies Toggery MlsSimpIicitM our Figure Xo Young LlneJ The diagonal pull of the crossed back straps flatten the dia phragm and abdomen, raises th bust and smoothes away all waisdine flesh thus avoiding that tell-tale look of maturity. The model sketched is of peach rayon figured batiste and elastic with an uplift bust of tricot mcsh- 550 Model 2405 J Rmg. o.xrM. OJ. P. A WiM GOSSAR.D i it; t z L i I .a iff M