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About The Omaha morning bee. (Omaha [Neb.]) 1922-1927 | View Entire Issue (Oct. 27, 1923)
The Morning Bee M O R N I N G—E V E N I N G—S U N D A Y THE BEE PUBLISHING CO.. Publisher. MEMBER OF THE ASSOCIATED PRESS The Associated Press, of which The Bee is a member. Is , exclusively entitled to the use for republication of all news dispatches credited to it or not otherwise credited in this paper, and also the local news published herein. All rights of republication of our special dispatches are also reserved. BEE TELEPHONES Private Branch Exchange. Ask for the Department lantls or Person Wanted. For Night Calls After 10 P. M.: AAA Editorial Department. AT lantic 1021 or AT. 1042. OFFICES Main Office—17th and Farnam Council Bluffs—15 Scott St. S. Side, N. W. Cor. 24th and N. New York—World Bldg. Detroit—Ford Bldg. Chicago—Tribune Bldg. Kansas City—Bryant Bldg. St. Louie—Syndi. Trust Bldg, jos Angeles—Higgins Bldg. San Francisco—Hollrook Bldg. Atlanta—Atlanta Trust Bldg. BACK TOWARD SANITY. Consent is reluctantly given by France to a reparations inquiry by a group of experts to de termine Germany’s ability to pay, although with a proviso that may not measure entirely up to the Hughes plan. This is, however, a detail; the im portant fact is that what is regarded at Washington as a definite opening has been presented. Secretary Hughes says that America will sit in a conference, but not one at which there will be empty seats. This means that if the gathering is held to consult on German affairs, all interested parties will be there if the United States is in attendance. England, France, Italy and Belgium have agreed, according to reports from London and Paris, to the appointment of a commission of experts, under con trol of the allied commission, to make the examina tion, and determine not only what is due from Ger many, but what Germany can pay. On this commis sion they ask the United States to take a place. The conditions very nearly meet the requirements of the Hughes proposal for a full inquiry, and probably will lead to the matter being taken up for-final adjust ment. One point made by Secretary Hughes is appar ently accepted by France after much deliberation. It is that there will be no talk of cutting down indebt edness until the reparations matters is out of the way. The two can not, from the American point of view, be considered together or as related one to the other. Payment of indemnity is one thing; and pay ment of debts is quite another. Poincare has been brought to realize what was plain to all long ago, that his policy holds as much danger to France as it does to Germany, and is a menace to the peace of the world as well. An in dustrially crippled Germany not only could not pay France and Belgium any sum demanded, but could r.ot sustain itself, and consequently the breakdown that followed on the occupation of the Ruhr has been reflected in the industrial situation in all countries. France has expended a huge sum in a vain effort, thinly veiling behind a demand for reparation pay ments a determination to break Germany into frag ments. The chaos that resulted was inevitable, and now the powers face the job of putting the German people on their feet once more. Agreement as to the proper method for proceed ing is about to be reached. America will be present only on the definite basis laid down in the Hughes proposal, made in April last, and which has for its purpose reaching an understanding as to fundamen tals, without which there can be no settlement on anything. Poincare rejected the offer then, for he was determined to try his own plan first. He could oppress, and did oppress the German people, and with no advantage to France. Instead of improving the defenses of his country, he has only emphasized her weakness. A world has waited, somewhat im patiently, for the premier of France, almost a dicta tor, to reach a conclusion that has been forced on him, yet was foreseen by all other statesmen. Now that he has come to that conclusion, it is to be hoped that he will not allow petty considerations to turn him away again. 1' ranee has quite as much at stake as has Ger many, and the world is deeply interested in both. Un less they are restored to order, with the menace of militarism removed, and industry set moving along right lines the whole scheme of things will be de ranged. The United States is ready to help in this; so are other nations, and France must not delay the settlement any longer. GOOD GOVERNMENT WILL WIN. Governor Walton’s plea for order in Oklahoma comes a little belated. Conditions that have de veloped in his state are the very negation of con stitutional government and established authority. Inquiry as- to the parties or causes responsible for the situation may well be set aside for the mo ment, but can not be wholly neglected. Plenty of blame may be put on the governor, and as much on those who are opposed to him. It will not do entirely to ascribe the trouble to the presence of the klan in Oklahoma, although this had much to do with the troubles that beset the state. Mob demonstrations disturbed the peace and spread terror, and the governor undertook to check these by a series of spectacular counter-demonstra tions. Behind that is a far graver rause for the uneasiness that is finding expression in the session of the legislature which has returned a steadily Trowing list of indictments against the executive in proceedings to impeach and remove him from Wflcc. Oklahoma politics have had a decidedly hectic >ue for many years. Under Governor Robertson, ►ho preceded Walton, several unsavory scanduls de veloped in connection with the management of the state funds, and one of these led to an ussuult on the governor by a district attorney. The personal probity of the executive was assailed, and his ad ministration ended in a cloud. Walton fell heir to this, and to other sources of difficulty and perplex ity. Almost immediately after his election he was accused of having repudiated pre-election pledges and taking up with a faction that was opposed to what he had originally promised. Good citizens outnumber the bad in Oklahoma, just as they do everywhere, and it is reasonable to expect that they will come to the front and rescue their state from the clutches of those who have brought it into such unpleasant notoriety. The governor's case is now going before the courts of his state, and its outcome will depend on judicial determination. In the end right will prevail, as it always has, and the good people of Oklahoma will enjoy the full benefits of self-government, from a pervpriien of which they now seem to be suffer ing. Drawing apart from all argument*, one way or thi other, “100 per cent Americanism” does not hide under a nijehttfown and hood, but stand* out in .he open. Moreover, it realize* that neither race nor creed has any monopoly on patriotism N BRING THE CULPRIT TO LIGHT. | Further disclosures at the muddy water inquiry are of great interest, especially that which Engineer Prince made regarding the need of greater storage of water. This is not a novelty, but the public will read with concern that efforts made by General Manager Howell to secure a site for an additional reservoir had been blocked in at least three in stances. Along with this M/. Prince made the poiqt that is not to be minimized, that the pump al leged to be worn out and useless performed very well in the emergency. These two salients in the testimony of the con sulting engineer can not fail to strike home in the minds of the citizens. Placed alongside; the stories told by other witnesses, they make up a most strik ing story, the sequel to which is not in sight. No amount of evasive testimony can overcome the un escapable conclusion that a colossal blunder was made by some one in authority at the pumping plant. Failure to wash the big settling basins, a vital process in the furnishing of water, has its bearing on the events that led up to the catastro phe. Neglect of a huge pumpage loss, which must have shown on the daily records at the station, is another, and other things that should have warned a trained and capable engineer are disclosed in the general story of what went on during June, July and August, preceding the mud bath the city got. On top of this is the culminating incident of the open mud valve, and a decrepit and worn out pump set to fill a great basin against the onrushing stream of waste 'water that “sounded like a young Niagara.” Everybody agrees that valve did not just pop open; it was not in any way automatic, and it was so situated that somebody had a lot of trouble in getting it open. But it was open at a most critical time, when the welfare and comfort of all the citi zens of Omaha were in danger because of a defi cient and polluted water supply. Who opened that valve? Until this question is answered the inquiry will not have been complete. It now seems as if it were a question for the courts to settle, through the extraordinary powers of a grand jury. If to threat en an individual with a deadly weapon is a crime, surely to threaten 200,000 people through a scanty and diseased water supply ought to be considered an act worthy of punishment. Some one is just now worrying in fear of being discovered. He should be brought out into the open, that he may face his crime, and receive a punishment that meets the serious nature of his action. IT’S A LONG TIME TILL JUNE. Eastern Ragamores now accept the candidacy of Gifford Pinchot as a factor to be reckoned with. This rests on the precedent set in Pennylvania of allowing the governor to dispose of the state’s vote in the national convention, more as a mark of local confidence in the governor than an expression of determination to secure his nomination. Whether or not the Pinchot aspirations will go further must be developed by the passage of time. The presence pf the energetic governor, who is an open champion of progressive policies, will be interesting to all. This is particularly true because of Hiram John son’s avowed purpose of running. Johnson was the second name on the ticket when the bull moose move ment split the republican party in 1912. Pinchot was then a most enthusiastic follower of Roosevelt, and naturally gave his support to Johnson as well. Nothing in this can be construed to debar him from entering the lists as a candidate for first place, but from the standpoint of expediency, it would seem unwise to divide the strength of the progressives be tween two such champions. Neither JohnsWi nor Pinchot yields easily, having once made up his mind, and if a contest does come up between them, it prob ably will be to the finish. So far as that will affect the chances of Coolidge, little can now be actually said. A natural conclusion is that Mr. Coolidge will he a strong candidate, his entire prospect resting largely on what may happen between now and June. His course with congress may turn the entire situation, and either make him so popular as to do away with all other candidates, or it may have the opposite effect and eliminate him. What is especially noteworthy just now is that most folks seem to be keeping their minds open, and their eyes and ears as well. Voters are from Mis souri, and require to be shown. Jan Smuts is giving Lurope good advice when he tells the statesmen ov.r there to quit their foolish ness and get down to business. His invitation to Americans to horn in, however, falls on deaf ears. He is not talking to us. Henry Ford’s supporters do not seem to be dis couraged by the indifference of their champion, probably because they realize what it may mean to •them if they only can get him interested. Seems that the contractors for government hos pital buildings took a long time to find out that the war was over. Colonel Harvey’s first speech in England got a great deal more of attention than will be paid to his swan song. Iowa’s decision on the buR question will be worth watching, for Nebraska has some interest in the situation. Governor Walton got away to a good start, but he is making a mighty lame finish. Provisions of the treaty of Versailles bbther nobody. Homespun Verse —By Omaha’s Own I’oet— Robert Worthington Davit THE BEGINNING. You'll fiml the beginning a etruggle, you’ll shiver and vision our gloom, You'll think you are lost and you’ll shudder to meet the extent of your gloom, You'll long for a lift from another and pray to be freed of your strife, And faring the gruesome of faijure, you sigh In the morning of life. When youth, idle youth, tins receded and Into the regions rou m. You'll meet with despair and dissension and yearn for the pleasures of home; You'll pause as the burdens grow stronger, you'll crave adolescence again. And seek to dispense with the problems that call for the courage of men. But this is the test of your manhood. Grope onward and keep In Ihe right The sun of Incessant endeavor will shine with the pass ing of night, Anil well on your way to achievement, you'll amlle as you vaguely behold in dreams the engrossing distraction ami shadowing failure of old “The People’s Voice” Editorial! from roodora at Tka Moral*! Boa. Rtidor* of Th* Moralaa Boa ara l*vitod to uia thli oolama frotli fat a**rotoloa on mrttrri of nubilo lotorcit. Explains Red Cross. Omaha.—To the Editor of The Omaha Dee: In answer to the article appearing in One of the Omaha pa pers concerning the resolution pre sented by several members of the Saunders County chapter of the Am erican Ked Cross, in which certain statements were made concerning ited Cross activities in Nebraska, I feel that It is very unfortunate that pub licity should have been given to the resolution introduced by these mem bers. first, because the resolution in itself was not passed and it was not gven seriously considered by any of the delegates in attendance at the regional conference. Some indirect charges were made of overlapping of Red Ciosb with gov ernmental activities. Investigation will show that such a charge is abso lutely unfounded and unwarranted, as the work carried on by the Red Cross is in co-operution with, rather than acting in place of, the government. Furthermore, I believe that if investi gation is made by the introducers of this resolution, it will be found that the report which they referred to was a combined report of all the chapters of the entire United States and repre sented the activities of all chapters in all their various branches of activity. This resolution which was Intro duced also took exception to the peace time program of the Red Cross, the contention being that the activities, w-hile of value to the community, should not be taken up with the Red Cross but should be handled by local taxation. In this respect th# Red Cross Is merel»acting as an additional agency to bring to the attention of the people of the community the ne cessity of such a program and continu ing with the program until such time as it is proven to the people of the community that it is a valuable asset and then assumed by the community or county by means of local taxation. It should also 1« noted that no chap ter organization of Red Cross is com pelled to undertake any of the activi ties unless they so desire, It being en tirely optional with the officials and members of the local chapter as to what activities. If any, shall be under taken, I feel that the claims set forth in the resolution are entirely unwar ranted and entirely uncalled for, as any reasonable investigation will prove. It should be born In mind that the Red Cross is a semi-governmental agency, chartered l>y congress, direct ly responsible to the government and the members of the organization, and furthermore, that all accounts of the American Red Cross are audited by the War department. L. W. TRESTER. State Director. What's the Matter? Omaha.—To the Editor of The Omaha Bee: Presume you notice the raging controversy between Omaha anil Lincoln editors, together with an other prominent citizen, on the ques tion. "What is the Matter With Ne braska?" The Omaha contingent find many things, foremost "foreign mar kets" being the reason for calamity. As a common citizen 1 would ask the Omaha contingent, without thought of reply from them: What was the matter with "foreign markets" In 1920-21? Why was the whole country thrown into disaster, agriculture ruined, sui cides. bankruptcy, unemployment vis ited on an unsuspecting people? Was not Mr. Wilson and his favorite tariff, his "credit liberator," his "elastic cur rency," his panic-proof guaranteed money system, all on the job? Did not Mr. Wilson and his pirates fairly sneer at the wrecked victims. Wilson ian accomplishment, his personal gift to a people who would have no more of Wilsonian dictatorship, Internation alism and European trash. Including foreign wars for "democracy." T. 8. FEN LON. The Twelve-Hour Hay. Omaha.—To th* Editor of The Omaha Bee: I have noticed In your paper several articles the last few weeks in regard to some corporations here In Omaha working some of its men In 12-hour shifts. I wonder If tile corporation referred to is the one I have in mind with headquarters here in Omaha. Home of the he.ad officials of this company which I have in mind are supposed to be very good Christians and seem to like to have their donations to the relief of for eign sufferers paraded before the pub lic, and have wondered whether they thought they were following in the footsteps of Christ when they took the eight hours away from the men and made them work 12 hours, there by denying them the right to attend church to worship and also depriving them the privilege of being at home with their families. T. A. JOHNSTON. The Soldier Bonus. Indianapolis. Jnd.—To the Editor of The Omaha Bee: Thank you very much for the editorial In The Omaha Bee I agree with you that our bonus tight would be much simplified If more editors shared a like opinion. H. O. TRAFB. Editorial Secretary, The American Legion Weekly. Where the KuaUe Beals (he Auto. Venomous snakes and mamhafiW? animals still nutshadnw motor trans portatlon In awelllng casualty Beta In Rrltlah India. The mortality from snake bile for the past year la record ed at 20.090 aa against 19,000 the previous 12 months—Toledo Blade. 1 Daily Prayer | And milk* conf**ilnti unto Him.—Jo»h 7:11. Our Heavenly Father, we thank The© for keeping guard over ua dur ing the night. We laid ua down and slept; we awakened because Thou didst austain us. Thou hast opened to us the gateway of tills new day and set before ns open doors of fresh op portunity and privilege. As we go forth to new duties and responaiblll ties, we pray for Thy presence to go with us Strengthen us In our weak ness. guide ua In our Ignorance, and Inspire ua both to will and to do no cording to Thy good pleasure Kn able ua to present our bodies a living sacrifice, wholly acceptable unf * Thee, which Is our reasonable service. We commit to.The© all our loved ones, and beaeerh Thee that Thv Spirit max so control their hearts and guide their lives ne to sax© them from forgetful ness of Thee, and front neglect of Thy claims. Remember those In authority over ua. Put Thy fear In their hearts, that they may faithfully discharge their responsible duties. May Thy Spirit rest on nil our people, causing ua to lead peaceable, quiet and order ly lives. Hasten tho triumphs of Thy Kingdom, until nil hearts shall he brought under the ride of Christ, and the whole family of man shall con mIituto a brotherhood hound together l»y the bond of Christian love These blessings wo ask, with the forgiveness of our sins, in the n mo of Jesus ( briit. Amen. □ n <• nr:Ki» t* i> Columbia. 8 C. What have you seen? Are you ever attracted by the voice of the world of nature which surrounds you? The Omaha lire welcomes letters from readers on observa tions of natiue. A TitflTSTORY. JIMMIE, THE T( I ATX Jimmie was a wise little toad. Every evening during the summer after din ner the family, consisting of three members, would sit out of doors on n bench. Presently Jimmie, a fat little toad, would come hopping along. It was the season for lightning bugs and they were plentiful in this section of the country. Ab soon as Jimmie got near to the bench he would open wide liis mouth ready for his treat, which was nothing more or less than lightning bugs. And he was insatia ble in his demands. After he had swallowed several»alive, you could nee 'them light up in his stomach through the thin walls of his skin on either side of his body. Jimmie appeared every night for six weeks, and then no more. Per haps his death was caused by eating too many lightning bugs. A. E. H. I Abe Martin lobe* f J To A l Z^A iL C J ^ Ike Moots, brown as a berry, re turned t’ work t'day after a most enjoyable strike. Ever’ dog has his day, but th’ feller that’s known as good pay is alius welcome any where’s. (Copyright. 1923.) “From State and Nation” —Editorials from Other Newspapers— .Saving the Suckers. From The Louisville Courier Journal. In the proceedings now under way in Fort Worth, Tex., against alleged oil stock frauds, two notable figures are to be seen: Frederick A. Cook, Arctic explorer, as defendant and Jo seph W. Bailey, former senator, his chief counsel. Both reached points of considerable eminence in Ihe pub lic eye. Both fell and have more or less remained under a cloud for years. Armed with gum drops. Cook sailed for Ktah. With brilliance and oratory, Bally rose to be reckoned a force in the senate. In spite of the kiss of the king of Denmark as a mark of ap preciation of Cook, Admiral Peary delivered the coupe de grace to the vociferous "discoverer of the North Pole." In the height of his career in the senate, Bailey's stock tumbled to zero when lie was accused of ac cepting money from the Standard Oil company. But the government in its zeal to put a stop to swindling is taking no thought of what either man was or is. Oil in Texas has furnished a fruit ful field for the Get-Rich-Quick Wal lingfords. and the hardest and most dramatic battle is bow on against al leged bogus stock schemes. Cook i* only one of those who have been caught in the net. Twenty others are charged with similar offenses. These 20 are said to have been his associates in the companies whose "literature.” It Is charged, warned the prospective buyers to be on their guard against the swindler and his wiles. The government is trying to cut down the enormous bill that Is being paid by the public to various kinds of frauds. Two hundred million dollars was last year's contribution to this form of business. Kvery effort is be lng put forth to protect the public generally from ihe get rich quick schemes. Hrison sentences are being sought for the defendants in the present case, which is conspicuous by the promi nence of its principal defendant and Ills attorney. It is hoped thut severe penalties may restrain the activities of sharpers. However, the government has made It plain thnt the open sea son for "Huckers" will be limited as much as is in its power. liaising Children. From Tho Sprlnxfield Rfpubllcan, President Coolidge's request that the schoolboy sons be allowed to pursue their education without so much of the disturbing glare of publicity, com mands respect for Its common sense. Hut it does not make less interesting as an example to other parents the manner in which the president and his wife have met what Is the chief problem of all parents. When it was reported a few days after Mr. Cool idge's accession to the presidency, that one of the Coolidge boys was working In a Connectlcpt valley to bacco field, the other being at Camp Devons, a shrewd observer remarked: "Most men will say that Coolidge is going at it the right way; but how many of them have got the nerve to do It themselves?" The real happiness of a large portion of the next genera tion depends precisely on the ques tion whether parents "have the nerve" to deal with a problem which is as old as the race, but which has boon Intensified and complicated by the automobile, the movies nnd a hundred other facts of these changed times. It does take nerve for parents in comfortable circumstances —the more comfortable the more "nerve"—to Insist tipon the perform ance by their children of daily tasks which might more easily he done for them: It takes "nerve" to see that a boy tastes the pride of having shared in the home manufacture of a plaything or useful Implement as Well fashioned ns that which might he bought downtown. It takes “nerve" to curb the soft abuse of modern lux urles. while at the same time ikeeplng a sympathetic, understanding heart to fellowship with childhood nnd its natural, healthy desires for enjoy ment and adventure. Upon the ques tlon "How many parents have gut the nerve?" depends more than is easily expressed. Following Prmtdent Wilvui From the New York World. President Wilson refused to enforce that provision of the Jones merchant marina act which tails for the abro gation of 30 odd commercial treaties In order that tariff taxes might tie re tim ed 10 per cent on imports * arried In American vessels, lie refused he cause he knew that retalkttory meas ures by foreign nations would 1»« pro voked. to the incalculable Injury of American industry and commerce, ami he was roundly denounced by repub lican lenders for setting himself above the law Now President Poolldgr also refuses stul sets himself above the law. lie follows President Harding;, who ns i candidate said he would obey this cutler «»f congress and ns president found It Inexpedient to do so. Repub lican talk about usurpation of power ceased when Mr Harding stepped into the same boat with Mr Wilson, ami It will not he heard from now that Mr. t'oolldgn is found there ton If this provision of the Jones set hail been clearly dictated by the ma jority sentiment of the country’s com menial and other Interests, President Wilson would not have passed It by. nor would President Harding or Pres Ident Poolidice have followed the - inn4 coins* Hut !( was not ho dlci'ited It wns passe*! by congress In response to the pressure of the shipping lobby. Legislation by and for special inter ests which will obviously be disastrous to all other interests cannot expect the backing of public sentiment or ready enforcement, and congress will have to take notice of the fact. Armless South America. From the Miami Herald. In the midst of the loud alarms which are being constantly sounded over the probability of new wars, and the necessity of preparing against them, it is interesting to be reminded that there is a whole continent all the nations of which together do not possess battleships enough to carry on ordinary battle manoeuvers. and whose armies are almost negligible. The continent is South America, which has several large and im portant republics, with long seai-oasts, and which might l^e considered as subject to the usual perils of war. Agustin Kdwards of Chile calls at tention to this situation in an arti cle published in Our World.. There is more accessible sea coast In South America than upon any other con tinent. There are great sen coast cities which could easily be destroyed by a few battleships. If any nations really need warships it would seem that Brazil and Chile and Argentine do. And yet these three great re publics have between them only five battleships of the prewar type. There is little reason to believe that this condition constitutes a menace to the safety of these countries. They do not interfere with the concerns of any other people. They have not as sumed to lie world powers and have confined themselves to working out their own Interests, in harmony with the interests of their sister republics. These republics are not. of course, as defenseless as the bare statement of their military and nival posses sions would seem to indicate, for they are in a measure under the guardianship of the Cnited States. The Monroe doctrine gives them a measure of protection. It remains true, however, that their chief de fence is in the fact that they do not assume that there is any necessity fur defense. They mind their own con cerns and do not think in terms of war and Imperialism. Ite<| Million and a Half. From iho Aberdeen News. The committee on citizenship of ] (he American liar association esti mates that there are in our country 1,500.000 reds. One and a half million radicals, all the way from red mouthed ai irchists to parlor bolshevists and socialistic college professors. These figures' are based on detailed returns from the secret service de partment and Include the I. \V. W. and all constitution overthrowers. It is estimated that $3,000,000 was spent last year on radical propagan da, and that 5,000,000 read radical newspapers and magazines. There can be no doubt that the world war stimulated the develop ment of lawlessness, and the millions who disregard the Volstead act and 15th amendment swell the armies of discontent. The radical movement In our coun try will have to be checked by the common sense and patriotism of the masses of the people snd by better enforcement of all Irws. Speaking of Waste. From ths !.owe!l Courler-Cttlsen The millions which Henry Ford ap pears to believe are "wasted" an nually In tobacco smoke are prob ably Inconsiderable beside the amount that poor people, who can 111 afford the outlay, waste in gasoline to projiel the country's flivvers so enthusiastically crowded on the mul tltuile by Henry Ford—whose ”$5 down and $5 a week” proposal has to us the lorfk of alsrut anything but the assistance of wise domestic economy among the comparatively poor. If any other man 1ms done more to In vite a reckless extravagance in America than Henry Ford we await suggestions as to ids identity. Something to I'omler Over. From iho Pittsburgh Unveils Time*. Hither we will maintain a govern ment of law or we will have no gov ernment worthy of tliu name if the latter state of affairs were brought about there would be happiness for none. There would be no property right In anything, not in “booze" even. This for prohibition law deflers to ponder. Nor would there be free dom of ally kind. This for tile “reds" to reflect upon. The constitution must be preserved through respect for and obedience (o its every pro vision NET AVERAGE CIRCULATION for September, 1923, of THE OMAHA BEE Daily.72,518 Sunday.75,942 Dots not Include return*, left overs, sample* or paper* spoiled ir printing and include* no *pecia tales. B. BREWER, Gen. Mgr. V. A. BRIDGE, Cir. Mgr. Subscribed and sworn to baler* me this Sth day of Octohei. 192,1. W H QUIVCY. (Seal) Notary Public ' Where Prohibition Pay*. ohln* prohibition director r>'.«ert» prohibition Is a paying proportion, as the bootleggers produce much rev enue for the State The same argu ment for the old fashioned saloons used to be frowned upon severely.— t’ineinnall Enquirer.___ Yelps Aren't Vote*. Thom- light wine and beer fellowj who any a majority of voters want to loosen up the Volatead law would be aurprlse<l If it i-ame to a vote. The yelping of one coyote can sound like a herd—Portland <tregonian. Vice President Baldwin, Burlington Railroad, Replies to Senator Noras I have just read the lengthy article of Senator Norris In your issue of Friday 19th Inst., written as a reply to my article in your of 11th Inst., in answer to his original article of date September J.'ld. Many of the statements of Senator Norris in his reply are extremely vague and general in their character, such as the experiences of a supposed hay farmer in northern Nebraska, without giving name or rates or dates, or even the shipping point; and supposed fruit shipments from Florida to New York without names or dates or amounts or rates; and two carloads of lambs from some unnamed western point with no date or rates, and coal shipments without places or dates or rates or anything upon which io base an Inquiry, is that a fair way to present facts? If the senator would give names and rates, and dates and amounts, so that there was an opportunity to make inquiry I feel willing to express an opinion that the facts woul^l disclose tnat excessive freight rates were not, in any instance, the cause of the losses. To illustrate how completely the senator has been Imposed upon, take the specific case of his unnamed "man in northern Nebraska,” with a hay ranch. Omitting name and date and point of shipment, the story is that "Two years ago (October, 19211, he cut bis hay and stacked It and it remained in stack until it rotted.” He adds; "If the freight had teen the same as the year before he would have been able to have shipped "he hay and made a little money. Freight, alone stood between him and success. Freight alone was the cause of a tctal loss of Ids labor and the income from his ranch.” Now. what are facts? O'Neill, In northern Nebraska. Is 239 miles from Omaha. In October, 1921, when he says the hay was cut and stacked, the freight rate on prairie hay from O’Neill to Omaha was 25% cents per hundred, or $5.10 per ton, and in October, 1922, a year later, when it had rotted, it was 22% cents per hundred, or $4.50 per ton, a reduction of 60 cents per ton, so that the statement that he allowed his hay to rot in the stack because of increase in freight rates is without foundation. What was the real trouble with this hayman In northern Nebraska? It was the fall in the price of hay. In May, 1919, hay sold in the Kansas c ity market ror *58.91 per ton. and by October 1, 1921, the price had fallen to $12.40 a ton, a drop of $26.01 per ton. which on 1,500 tons amounted to $39,760 in money. What caused this tremendous fall in price? It fell simply because the war was over. During the war and im mediately following the governments of England, France, Belgium, Italy and the I nited States were all In the market bidding furiously for forage for the great armies. It was an ab normal price, a profiteering price, and men overreached themselves to cut and stack quantities of hay. expecting to get war prices, and rather than accept lower prices let the hay rot In the stack. The freight rates were a drop in the bucket compared with the fall in price, and had no more to do with that man losing money than his local taxes, which were insignificant. Why havt some Nebraska farmers not been prosperous since 1920? Why have some farmers suffered losses since 1920? It all depends upon the man and his location. One broafl universal reason is that luslness the world over suffered losses from the great fall in prices in 1220. it started in Japan and spread everywhere. The packers of Chicago I lost over $60,000,000. Every man with a large stock of boots and shoes saw It shrink to half Its market value, and many were ruined Freight rates had nothing to do with it. It was the reaction from the war and from inflated war prices. It happened after our civil war; it happens after all wars. Many farmers had bought livestock and land at the Inflated war prices, and borrowed money to make partial payments, and suffered from the drop in price the same as the packer and shoe dealer, but suffered more if his bank pressed him for payment. Other small farmers bought auto mobiles on the Installment plan be yond their means and were pinched on that account. Take wheat prices. In September, 1923. our exports of grain were only $33,000,000 in \alue. a drop of $30,000, 000 from September. 1922. For nine months of 1923 such exports were only $256 <100.000, a sheer decline of $160,000,000 compared with the same period of 1922 Any farmer knows that such a falling off in demand affects the price many times as much ns the freight rates, and that no re duction in freight rates would stimu late the foreign demand for his wheat, and the foreign demand makes his price. To say that freight rates have caused the troubles of the war or the troubles of the western farmer Is to state an absurdity. It is a pure as sumption for use in politics, and in politics only, and to divert the farm era' attention from the facts. Not one farmer in a thousand would at tribute his losses to excessive freight i hnnges if some politician did not suggest it to him. He knows that the freight' rates are made by the Interstate Commerce commission, which represents him honestly and faithfully. He knows that good serv ice is thjo all Important thine to him so far ns the railroad is concerned, and that he cannot expect good serv ice unless the rates fixed by the commission permit the company to pay operating exi>en«es and some re turn upon the investment, and the commission is the best judge of that. No more misleading idea was ever spread Hmong western farmers than the idea that their losses are due to excessive freight rates. The senator is hadlv mistaken ns to freight rates, hut that is imtnate rial comiuiied with his lack of correct Information about Burlington dlvi dends. What he says about the money distributed by the Burlington com pan' to Its stoi kholders Is this • j'or the three years before the war the Burlington company made an av erage dividend of over 22 per cent on its mock." The war began In 1914 and the dividend dr- Inred in 1912 was S per cent: In 1913 it whs s per cent, and in 1914 it was s per cent. But he may say that he means that for tile three years before the t’nited Slates entered the war the average dividend was 22 |>er rent. As a mat ter of fart, the dividend in 1916 was s per cent; in 1915 it was s per cent, and In 1914 it was $ per cent. Why dues Senator Nov .* -ay it w as 2 2 per cent when it was Ji per cent * lie further says; “For the time that the government had this great railroad it paid to the stockholders annually 22 per cent on their stock holdings.** The government took possession Jan uary l 191$. and relinquished pos session Mat ch 1 r* 0. .» i>et io*| of 26 months The dividend in 1*1$ was $ per cent; in 1919 it was $ per cent, and in 1920 it was .$ per cent. Why does Senator Norris say it was 22 per cent? He wrote his article away from home, which may account for some Inaccuracy on his part In the year 191? the company declared itv extra dividend of 10 per cent, and in the veal* 1921 there was n dividend of 2? per cent declared out of income and surplus, so that for the 10 years from 1912 to 1921 the averagt was bo tween 10 and 11 per rent, and not 22 per cent. These djvldends were made upon rat°s fixed by the commission, and the wages are fixed by the labor board. During the war, when hogs sold up to 23 cents a pound, many a farmer made annual dividends of 50 or UO per icnt upon his investment. Why does not. Senator Norris say something about the dividends on the Missouri I'arific, or the Chicago & flreat Western, or the Alton, or the St. Paul? He knows that they pay no dividends, and^’et they charge the same rates as the Burlington. Sen ator Cummins has published a list of companies with 75,000 miles f>( railroad (nearly one-third of the whole mileage! that pay no dividends on their stock, and many of them do net pay operating expenses, so that Sen ator Cummins' great anxiety is lest these roads may is- abandoned by the owners and the rails taken up. Tbe C. B. (J. gets no higher rates than they do. It in a well known fact that the capitalization of the Burlington com pane is about the lowest of any large railroad system In the world, and that Is exactly why the aveiage rate of dividends is relatively higher than if its capitalization was twice as large. One would think that the senior senator from Nebraska would be proud to have a railroad in his state with an extremely low capitali zation, with good credit and econom ical management rather than seek to drag it down to the level of roads that are on the verge of bankruptcy. BiA these mistakes are slight in comparison with the admission as to the legal effect of a stock divhb-nd and apparent failure to understand the basis upon which railroad rates are made. I would not willingly mis state his views and wish to express proper respect for the high office he holds, and for the senator personally'.. He says, in effedt, that he thinks that the declaration of a stock divi dend is the same thing as the dis tribution of money to stockholders. It is nothing of the kind. He says that railroad rates are based upon the capital stock and that rates rise and fall with the amount of capital stock, so that "watered stock" deter mines rates. There is no legal triulv in that position. To show that I ^5*%* right as to his understanding, I quote his exact words, as follows: "Where did the Burlington company get the 660,000,000 that it presented to its stockholders?" "Is it not true that they received it from freight and pas senger rates paid by the public?” The answer is that the Burlington company did not have 160,000,000 in money, and that It did not "present' $60,000,000; they did not receive it In 1921 from freight and passenge: rates, and they did not pay it in money to their stockholders. They executed some pieces of paper which are not money but are certificates in dicating an additional number of aliquot pans of shares into which the property is divided. Every stock dividend, every distribution of shares as a dividend in any corporation is precisely that. The senator asks la apparent sin cerity: "Let me repeat my Question that I propounded in my original article: To whom did this 160,000,00(1 honestly and rightfully belong? Ought It not in some way have been return ed to those who contributed it in th« way of freight and passenger rates? But instead of thus returning it il was given as a bonus to the stock holders. Afterwards, for all time, those who are patronizing the Bur lington road must pay additional freight and additional passenger rates in order to bring an income upon this $60,000,000 that, as a matter of ooin mon honesty, waa their own erty.’” The answer is, senator, that there is nothing to return. Nobody, "for all time” nor for any time, will pay one penny more in fares or freight than he would have paid if this ad ditional splitup In shares had not been executed. , ;* This brings me to the most Impor tant feature of this correspondence, and one which really interests N« hraska, which is that the rates which the people pay have nothing to flto with the number of shares issued u> represent the ownership, so that all this talk and theory about "wa'ore.1 stock,” and about rates being higher because the stock is watered, is in comprehensible to any man who has read the Transportation Act of IS?11 and who knows anything at all shoot the proceedings of the commission under that act. The senator says "The commission, under the law. was directed to fix rates, after the expira tion of this guarantee provision, that would bring in a reasonable income.' What he means by "income" Is a re turn or dividend upon the capital stock—that is, upon watered stock— so that the more water there is in the stock the greater the Income and the higher the rates necessary U> provide that income. That is not true; it i.« not even half true. The return allowed Is not based upon the stock and Is not affected in any de gree whatever by any water there may be in the stock. It is based upon a value of the company's property which the commission has been seven years in making under a law pro posed by Senator I-aKVUette and sup ported by Senator Norris, and there is positively no excuse for any mte^a un-lersianding of its language or *r. effect. S* <tor Norris, along the same line, entirely misrepresents the govern ment guarantee to the railroads Hero ts what he says: “After the railroads were turned ba* k to the stookho'.ders by the e vernment the government guaranteed an income on the stock of this railroad, as it did upon nil other railroads.” There was no ovntinued guarantee: it was only to 1-c for six months from March i. 19i0. in order that the roads might get on their feet again, ami the exact language of the law ts that "the ra.lwav operating income as «. whole shall not ive less than the amount named in the original con tract with the roads as just compen sation.'' and the language of the origi nal Control Ac’, passed in August, link. rends as follows “Kaoti v'om pany during the perk'd of such fed eral control shall receive a Just corn pensatlon. not exceeding a sum equivalent to its average annual op erating Income for the threa > ears ended June 30. 1IU7." With this-right I'efore him Senator Norris -ivs that the government guaranteed an income on the stock tyf this railroad " Tlvat was not a .slip of the s. natorial pen It was said no bolster up and confinft the senator's main contention, that rates are baaed upon capital stock water and all—a statement for which there is no justi flcation whatever. I am hound to say with regret that In mj opinion the w hv>le effect of tips statements to the people of N< braska by their senattir is to give them not only .-mi entirely erroneous view of the cause of their difficultSo* aid of the rente.lies that at-o f c.isihL to overcome their difficulties, but ■ > misrepresent the whole basis ai^t theot) for rate making by the com v mission tinder the Tr -insp.-v itkm Act and worst of all. to put Into the minds of tlie people of the state seitit nienis of 111 will against their rati ro ads w hen there, should be friend)' ness anal a spirit of cooperation. W \N HAl.mvtJf. Burlington, la , tvtober l«. 1*2* —sAdv. <>