The Omaha Sunday Bee
PROSPERITY
PROSPERITY
VOL. 52 NO. 3.
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Bankers Say Prosperity
at Hand for Industrious
Opportunities Ripe for Those Who Go After Them,
Says John L. Kennedy Demand Must Equal
Production Men Must Be
Employed.
'Presidents of three of Omaha's'
largest financial institutions have
been prevailed upon to write articles
on prosperity for readers of The Bee.
Each has made a serious effort to
define prosperity, to trace factors
which result in prosperity, and to
some extent foretell what the eco--nomic
future holds.
Here is what John L. Kennedy,
president of the United States Na
tional bank, has to say on prosperity:
"Provincial prosperity is no longer
permanent. Local conditions may
for a tiime stimulate trade and com
merce in particular sections, but they
are not controlling factors through
out the country as a whole.
Demand Must Equal Supply.
"In a national sense, prosperity
must be founded upon favorable con
ditions which are fundamentally
sound, otherwise they cannot long
continiue. It is not sufficient that
production be at the peak. The de-
mand must equal or exceed the sup
ply. Good crops' alone will not
bring prosperity. They must be mar
keted at a profit Money may be
forthcoming for the marketing, and
interest rales may be abnormally
low, but that alone will not bring
DrosDeritv.
"Business must be active along
other lines. Men must be employed.
The furnaces and the factories must
be in operation. Mine conditions
must be improved and made more
satisfactory. Railroad facilities must
be extended and made adequate for
public requirements. The railroads
and the waterways of the country
should constitute one great trans
portation system and thus make pos
sible the more rapid movement of
freight. Unemployed labor should be
utilized in the building of public
highways, and idle money could not
be more profitably employed.
Opportunities Ripe.
"Ve should expend less energy in
criticism and more in construction
along all lines of legitimate effort.
In other words, if we want prosperi
ty we should get out and work for
it and not sit on the side lines wait
ing for it to come. Opportunities
are rioe rieht now. if we have the
nerve to Krasp them. Courage and
mnfiMif -were never more reces
flian thev are today. Ambition
and enterprise may easily reap rich
rewards.
Prosperity does not mean merely
the making of money , for the few.
It means improved conditions lor
the many. We should have no idle
rich end no needy rr- N pros
perity tan long endure which is
built upon 'injustice to any class.
There are and always will be inequal
ities in life, but there should be no
inequality of opportunity.
Prosperity in the larger sense can
not come to the United States until
conditions in other countries are im
proved. Our own interests will
force us to assist directly or indi
rectly in their rehabilitation. The
trade of Europe is within our grasp
and our young men may easily be
come trie merchant princes of the
world."
Conditions Improved.
F. H.- Davis, president of the First
National bank, writes on prosperity
as follows:
"There is a wide spread belief that
we are entering into an era of pros
perity, that will continue for some
Business Booming in Nebraska
. ,
time to come, and there !s lonsldcr
abel evidence at hand to justify such
a belief. Conditions' compared with
those of six months ago have very
materially improved. The agricul
tural situation, due in part to the
work of the War Finance corpora
tion and of the various agricultural
loan societies that vere formed to
co-operate with the War Finance,
is such that the farmers have been
enabled to hold their farm products
until the market has become stabil
ized, land values are slowly read
justing themselves, and within a year
we may expect to see prices of land
again reach a stable basis. This will
mean that farms will again move at
a considerably lower price than the
boom prices, it is true, but they will
nevertheless move, and this will be
a good thing for agriculture in gen
eral. Increased Demand.
"Mills and factories are reporting
increased demand for their goods
and in many cases are getting back
to somewhere near normal produc
tion. Many wage differences will be
thrashed out and adjusted .no doubt
before the end of the summer, so
that on the whole the outlook is
more encouraging than it has been
for some time. It is not reason
able to suppose that we will emerge
suddenly from the conditions of the
past year into unusually prosperous
times, but bj hard work, constant
attention to business and avoidance
of overspeculation, we may expect
that the next few years will show a
gradually improved condition, which
will apply to all classes of indus
try. In some cases we have not
had entire deflation of prices, .and
we may expect to reach a somewhat
lower level on certain commodities
within the next year or two.
"In my opinion the present grow
ing crop, when harvested and sold at
prices that now prevail, will go a
long way toward restoring normal
and stable conditions generally."
Satisfactory Wages.
Here is what Walter W. Head,
president of the Omaha National,
bank, has to sav on "Normal Pros
perity:"
"Without attempting to scientifi
cally define prosperity, I feel sure
we may properly say that peoplo
are fundamentally prosperous when
the product of their labor enables
them to obtain the necessities of life
in addition to setting aside from
their earnings a reserve for old age,
and to make possible the necessary
accumulation of capital for our fu
ture development. This situation
exists only when there is a ready
and effective means for exchanging
the products of labor. Therefore, we
cannot be prosperous unless labor
is employed at satisfactory wages,
and our agricultural products can be
exchanged on a comparative value
basis for the commodities which we
find it necessary to purchase.
"In 1917, 1918 and 1'19 there was
employment for everyone who de
sired to work at top wages. During
the same years we were emminently
successful in exchanging our surplus
products livestock and grain at an
exceptionally good price for the
commodities which we found it
necessary to purchase during that
period. The comparative value of
(CoatiniKd Tac Two.)
PART FIVK
Prosperity is at hand.
Evidences of return to normal conditions and comfort
able living are to be seen on every side.
Omaha and Nebraska have come through the period
of po,st-war business depression with colors flying.
Omaha continues to hold a leading position among the
cities of the United States in bank deposits.
The live stock market is booming again and top prices
for cattle and hogs once more are rivaling those of the days
before the world conflict.
Receipts and disposition of live stock, too, are back to
a stable basis and motor trucks laden with stock, bound for
the market, dot the highways into the city from north, south,
east and west.
Fruit Undamaged.
No frost came this spring to damage the local fruit or
berry crops. The wheat stand is reported to hold banner
prospects.
Early hot nights gave the corn an impetus which will
carry that crop on through the season, according to, if not
ahead of, schedules based on previous years.
There have been several "million-dollar" rains, wel
comed with joy by the farmer, as well as words of thankful
ness from the city folk sweltering in their offices and fac
tories without complaint because of the knowledge that a
hot sun makes the corn grow.
In the cities, too, the wheels of commerce and manu
facturing again are grinding full force, without halt or delay,
on full time.
Unemployment Dwindles.
Unemployment has dwindled. Men still loiter somewhat
in the lower Douglas street neighborhood, but a careful ex
amination of them reveals a different expression and dif
ferent faces.
They are not loitering because there is no work. They
are loitering there between jobs, waiting to be sent out to
their work by the employment agencies, which again are all
abustle.
And panhandling on the main business streets of Omaha
has fallen to practically nothing.
Rapid Strides
Made by Omaha
Stock Market
Cattle Receipts Grow From
88,603 in 1881 to 1,340,492
in 1921 Stockyards
Area Expanded.
Since the South Omaha livestock
market was established in 1884,
Omaha has gradually worked into the
first division of the world's livestock
and packing house centers. The
most convincing evidence of the
wonderful growth of this market is
offered by statistics for the last 38
years.
During 1884, cattle receipts were
88,603; last year. 1,340.492. Hogs
received during 1884. 3,686: 1921: 2.
665.276: sheep, 1884, 5,593; 1921,
2,752.962.
Since its organization, the Union
Stock Yards companv has cared few
more than 173,000.000 head of cat
tie, hogs, sheep, horses and mules.
During a year. 50.000 farmers and
shippers of Nebraska and 21 other
central and western states, are rep
resented on the market through live
stock they have raised or fed.
Area Exceeds 210 Acres.
With an investment of more than
$10,000,000 this larpe corporation hat
developed and expanded until its
area now exceeds 210 acres, of which
140 arrp ari devoted to stockvard
0,.rn0SP m0rp than 2.000 cat-
tie pens, all of which are paved with
, brick and concrete and eauipred with
modern watering and feeding fa
cilities.
A nrivate water plant recently was
installed at a cost of $350,000. This
OMAHA, SUNDAY MORNING. JULY 2, 1922.
provides an ample supply of fresh
water. Chute equipment to the ca
pacity of 260 cars permit this com
pany to give expedited service. Fifty
six livestock commission firms,
with the best talent they can obtain,
handle livestock to the best possible
advantage to the shipper. More than
75 feeder and order buyers operate
on this market, creating a large and
well sustained demand for all grades
of livestock.
Seventeen Packing Houses.
Seventeen packing houses are lo
cated in Omaha, all doing a steadily
increasing business and to that ex
tent increasing the demand for live
stock at this point. Approximately
12,500 persons' are emploved by the
packing houses and stockyards, the
annual pavroll being more than
$13,000,000."
The Omaha livestock market has
grown and developed during the last
38 years in response to the needs' of
the livestock industry and the steady
growth and development of the trib
utary territory.
During 1921. 427.822 head of stock
er and feeder cattle were sold at
Omaha and shipped to farms in 15
states. Thousands of farmers in the
cornbelt depend entirely on the
Omaha market for cattle for their
feed lots and pastures.
Left-Handed High School
Pitcher Joins Cardinals
Waltham, Mass., July 1. Jim
Hanney. left-handed pitcher, a gradu
ate of the Waltham High school,
may wear a St. Louis Cardinal uni
form this summer.
Manager Branch Rickey while at
Braves field sent him a contract and
terms and it is likelv he will sign it
and join the Cardinals on the road.
Hannev has pitched some fine
games while at Waltham under the
coaching of Jack Learv. former big
league catcher. Hanney weichs about
170 and is 5 feet 10.
Street cars are loaded again morning and evening with
happy toilers, who buy their necessities in Omaha.
Retail, wholesale and jobbing businesses, as well as
manufacturing, are booming again. Traveling salesmen are
covering their trade territories without curtailment. Orders
are coming in with old-time regularity.
Department stores, whose aisles were affected by the
recent slump, are filled again with buying crowds, not just
bent on looking, but on purchasing.
Advertising, too, reflects the return of prosperity, not
only in volume, but in the message it carries. Real bargain
sales are being held for the benefit of the customer. The
merchandise turns over faster, new merchandise takes its
place and the buying public profits thereby in price and
quality.
Another pulse of business by which can be felt the throb
of returned prosperity is the automoblie trade, which prob
ably was hit as hard as any by the slump.
Autos Line Roads.
Automobiles line the highways and byways. Street car
men, policemen, city firemen, packing house employes, office
workers, professional men, attorneys, bankers, business men
and preachers are driving their own cars, and many of
them are new models of the latest types and styles.
This gives impetus to business, too, for automobiles must
have accessories, tires, gasoline and oil. The money paid
for these attributes of motoring leaps into circulation and
makes the big cycle by which the wheels of commerce are
acce'erated.
Building, another artery of good times, is going full
swing again, too. Homes, garages, barns, store buildings,
office buildings are being erected.
The city is building a $3,000,000 high school.
City council has authorized a number of paving, curbing
and sewer projects, as well as the county opening bids for
long stretches of paving of highways of Douglas county, with
state and federal aid.
AHd, 0naha wil1 benefit by these payrolls, not only
through her banks, businesses, factories, stores and profes
sions, but in the pockets and savings accounts of her working
men, the backbone of the community.
Facts Point to
Business Life
Stability Here
No Cause for Complaint if
Conditions Compared With
Those of Normal Years
Before War.
By LEO B. BOZELL,
Snrretory Oniuha Krai Entate Hoard.
The present condition of business
industry and investment is now such
that there would probably be no
thought of depression or bard times
had it not been for the abnormal ac
tivity in all lines of business enter
prise in 1918, 1919 and 1920.
Of course, conditions are not what
they were in those three years. No
conservative man or woman who has
the welfare of the country at heart
w.'ints to see those conditions re
turned. If the present situation is com
pared to normal years that preceded
the abnormal period through which
the country passed at the close of the
period just following the war,
few people would have any com
plaint. At least no claim could be
made that business is at a low ebb in
general.
Facts Reflect Strength.
In Omaha there are at least three
outstanding facts which reflect
strength and stability in Omaha's
business ilfe.
The first of these is the exception
ally large amount of money now held
by Omaha citizens in savings ac-
counts.
particularly in the building
and loan associations.
These savings
accounts,
both in number and vol-
j ume, are an indication in themselves
1 E
that a very large number of Omaha
citizens are in comfortable circum
stances, or the direct opposite of
being "hard up."
Secondly, there is a large number
of new homes being built in Omaha
at present, practically all of them by,
and for, families of moderate means.
The rate at which homes are being
erected in Omaha this year shows
first that a large number of O.maha
citizens are financially able to "build
a home, and, secondly, that Omaha is
still maintaining its position of lead
ing all other American cities in home
ownership gains.
The third condtition, which reflects
remarkable credit on the business
stability of Omaha, is the strong and
growing values of business property,
both in downtown sections and in
the outlying districts.
These values are not being main
tained artificially. Outside investors
of long experience, such as Boston
Ground Rent Trust and othersare
putting their money in Omaha busi
ness property in price that equals
or surpasses those of a few years
ago.
Fourth, there was a compliment
paid to Omaha a few days ago by
Hugh Barton, loan inspector for the
Prudential Insurance company, one
of the largest investment houses in
the world. Mr. Barton said he
found the loans which his company
held in Omaha to be in' better con
dition than the loans in practically
any other city. "I did not rind a sin
gle loan," he said, "which needed
closing out."
Mr. Barton also said that Omaha's
residence land values are very much
lower than values on residence land
in other cities of Omaha's size and
larger. Mr. Barton said this indi
cated unusual conservatism.
These are facts that cannot be
denied, and they will controvert
most any claim on the part of the
pessimist.
$4,500,000 Improvements
Planned Here This Year
Addition and Repairs to Paving, Sewers and Side
Walks, as Contemplated by Commissioner
Koutsky, to Surpass Program of
Any Previous Year.
A public improvement program of
$4,500,000 for paving, sewers and
sidewalks is the mark that City Com
missioner Joseph Koutsky has set
for this season. If this can .be
accomplished it will be much in ex
cess of any previous year in the his
tory of the city.
Contractors and city construction
crews are; working in many parts of
the city and already have accom
plished much, with much more in
prospect. Public improvements have
resumed normal conditions. For
several years public work was im
peded by high prices and other war
conditions. Mr. Koutsky is confi
dent that this will be the banner
year of the public improvements de
partment. Keen Compethion.
One of the outstanding features
of the situation is the keen competi
tion among contractors in bidding
for work. Outside contractors have
been attracted. A Council Bluffs
paving firm entered this field during
the spring and caused a surprise by
being low on a lot of bids amount
ing to nearly $500,000.
Paving bids run about $1 a yard
less than a year ago and sewer bids
are lower this year. Commissioner
Koutsky says he did not press the
paving situation hard last year be
cause he was confident that prices
would- be stabilized this season.
The city already this season has
sold $1,200,000 bonds to finance pav
ing, will be in the market soon for
another issue of $600,000 and Mr.
Koutsky believes that still another
issue of $500,000 will be sold before
this season is over. He believes he
is conservative in stating that the'
paving program will approximate
$2,300,000.
New System.
LTnder the new plan, bonds are sold
and contractors are paid forthwith
from the proceeds. The money
comes back when property owners
pay their special taxes assessed
against the property in the various
paving districts. Mr. Koutsky esti
mates the sewer program at $1,500.
000, of which $500,000 will be paid
by the city at large tor main sew
er?, and prooertv owners will be as
sessed $1,000,000 for service sewers.
The grading work is estimated at
$250 000 and sidiwalk construction
at $50,000.
One of the first large paving proj
ects under way this season was South
Thirteenth street from Missouri av
enue to city limits, one and one-half
miles. The curbing of this district
was laid several years ago. The
base ha? been laid this season and
the thoroughfare now is ready for
asphaltic concrete topping. This
work will cost $65,000.
Another Large Project.
Another large project covers Six
teenth street, Douglas street to the
terminus of the pavement in North
Omaha. Four districts have been
cre?.t;d, the first being from Doug
las street to Victor avenue; another
from Victor aventte to Wirt street;
the next from Virt to the Dictz
club boulevard, and the fourth, north
of the boulevard. A contract has
been awarded for resurfacing from
Douglas street to Victor avenue and
resurfacing also will be done from
Victor avenue to Wirt, The street
railway company will go into the
FIVK CKNTS
street within the next 10 days to
extend its lines continuously from
Cuming to Clark streets and elimi
nate th Seventeenth street link from
Cass to Crjrk streets. This work
will be completed b-efore the next
Ak-Sar-Ben carnival seasCr..
Another paving district of inVJT"
tance embraces Pierce street, Sixrn
to Tenth; Sixth from Pierce to Hict
ory and Seventh from Pacific to
Pierce, the material to be brick
block and the cost estimated at
$55,000.
Lake to Be Paved.
Lake street, Thirtieth to Forty
first streets, will be paved with brick
block. The curbing will be started
this month. This improvement will
cost about $39,000. Water and gas
mains are being laid in this district
to obviate disturbance of the pave
ment. This paving contract has been
let.
Records of the pulflic improve
ments department show that 175 pav
ing contracts have been let this sea
son or are ready for signatures.
These contracts range from small al
ley districts to large contracts lika
the ones already referred to.
Four large sewer contracts now
are under way. One extends- along
Sixteenth street, Grace to Laird
streets, ranging in size from four
feet to eight inches and to cost $62..
000. The Spring Lake district sew
er will cost $45,000. A large sewer
in Fifty-fifth street. Center to Leav
enworth streets, will cost $40,000, and
another between P and Y and Thir-ty-eighth
to Forty-eighth, will cost
$45,000.
Several Street Projects.
Sewers wil! be started soon in
Minne Lusa district and along Red
man avenue, the combined cost to be
$75,000. The sewer program this
year includes addition to the Grac
street sewer at an exnenditure of
$75,000.
Several street widening and open
ing projects are on the calendar. The
first will be the work of widenintr
of Twenty-fourth street, Leavenworth
street to St. Marvs avenue, this be
ing deemed advisable on account of
the St. Marys avenue improvement
completed last year. This line of
Twenty-fourth street will be widen
ed 40 feet, bringing the street on a
line with the present northeast cor
ner of Twenty-fourth street and St.
Marys avenue. The work will be
started within a few days.
Harney to Be Widened.
Harney street will be widened
from Twentieth to Twenty-fourth
and from Twenty-sixth to Twenty
eighth, property already having been
acquired Dy we city along the south
side of the street for this improve
ment. Douglas street will be widened
from Twentieth to Twenty-fourth
and opened west of Twenty-fourth
street.
Commissioner Koutskv stated that
permits already have been issued
this year for the construction of six
miles of permanent sidewalks.
"I don't believe that I overstated
it when I announced early in the
season that we would put through
an improvementprogram of $4.500,.
000," said Commissioner Koutsky.
"I believe it will be nearer $5,000,
000 if -rathcr conditions are favorable.