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The Omaha Guide
Published every Saturday at 2418-20 Grant St.,
Omaha, Neb.
Phone WEbster 1750
Entered as Second Class Matter March 15, 19271
at the Post Office at Omaha, Neb., under thfe Act;
ef Congress of March 3, 1879.
Terms of Subscription $2.00 per year. ;
Race prejudice must go. The Fatherhood of
God and the Brotherhood of Man must pre
vail. These are the only principles which will
stand the acid test of good citizenship in time
of peace, war and death.
- ■ ■ ■ ■ ■ —— - ■ - rr.
Omaha, Nebraska, Saturday, January 12, 1935
municipal insurance fund fallacy
some community considers es
tablishing a municipal insurance fund, on the
•grounds that the money now paid in insurance
premiums would be “sa\ed.
That sounds well in theory-but practice
paints a sorry picture. Towns, laree am
small, that have made tho venture hate learnte
the bitter lesson that municipal insurance fund,
instead of saving the taxpayers’ money, can
pave the way to immcipal bankruptcy.
Montreal is an example of a city that created
such a fund. Over a period of time, it reach
ed the eomingly imposing total of $200,000.
Montreal’s public buildings were well separ
ated, as are those of many cities, and a ease
of a fire attacking more than one of them at
a time was apparently remote. Yet he city
was suddenly faced with the loss of the. city
hall, worth $1.-500,000; the municipal inciner
ator plant, worth $130,000; and a public mark
et valued at $30,000. This totals $1,660,$$$—
and the difference between it and the $200,000
in the municipal insurance fund had to be made
up by assessing the taxpayers.
At the average existing premium rate charg
ed by American stock fire insurance companies,
it would take the owner of a $10,000 building
more han 114 years to establish a fund out of
the premiums saved, sufficient to replace it.
Economy that Leaves valuable property uu'
linprotected or inufficiently protected is expen
sive indeed—whether the property belongs to
to one man or to a community. Towns which
are considering funds would do well to look
at tho record of municipal insnitinee fund
failures before risking the taxpayers’ property !
in a gamble with the law of fire loss averages j
which sooner or later collects its toll.
WHERE DOES YOUR GAS TAX MONEY GO?
No group bears so heavy a burden of class
taxation as do motorists.
In 1933, for example, refineries produced
gasoline valued at $759,000,00. The federal
government taxed this gas $181,000,000. The
states taxed it $519,000,000 or a total of $754,
000,000. As a result, the gasoline taxaetually
amounts to almost 100 per cent of the value
of the product.
This situation, as the San Antonio Express
aid, would be had enough if all gas-tax money
• were spent for building and maintaining roads.
The motorist would be at least getting for his
money. But a constantly rising number of
states are coming to regard the gas tax as an
inexhaustible source of revenue for all govern*
mental purposes. They divert eras tax funds
to pay for schools, for unemployment relief,
for harbor-maintenance, for oyster propagation
and for a long list of similar undertakings,
none of which directly benefit the average
motorist. It it ems perfectly obvious that
such undertakngs should be paid for out of
the general taxes, provided by all the taxpay
ers, and not by added taxes on that group of
citizens which owns and operates motor cars.
It is an encouraging sign that aggressive op*
position is developing in all parts of the coun
try against the diversion af gas tax money
from use on roads. Road work was the rea
son the for tax being inaugurated in the first
place and motorists accepted it without objec
tion. But now every motorist has a thorough
justifed complaint neainst his gas tax money
being used for projects unrelated to road de
velopment—and every motorist should enthu*
siastieally join in the movement to bring gas
tax diversion to a halt.
WAIT A MINUTE
-
The new year has come and we are off again
for another annual journey. Before limber
ing up for the stretch ahead it may not be out
of place to pause a minute for reflection. Sev
eral things could come up for serious consider
ation as we indulge some recollections of the
recent past—recent enough to include the year
just closing. There has been a definite re
volt against much that has been going on in
the world, and build a different world. The
idea of change has been the vogue. Things
new have been stressed, often without any re
gard to their value. Even the “New Deal”
has, for a great many, been attractive more be
cause it is thought to be new than for its qual
ity. The revolt has had justification; but
has the going the other way had the right
direction? Have all aspects of the program
had adequate scrutiny? Is it not time to
cheek up on some of the trendsf Think of
these things.
In a moment of reflection some things are
quite obvious. In the mad rush which began
a few years ago to build a new world some of
the leaders were wise in their own conceit and
many had begun to find themelves in a world in
which they felt no need of God, no need of
faith, no need of prayer. Man had made such
wonderful progress “ that he had begun to
regard himself as the boss of the whole thing,
he could turn to psychology and explain belief
in God a mere figment of the imagination: We
could explain it in philosophy as “subjectiv
ism.” All the while he was apparently un
conscious of the fact—made plain each day
with baffling realism—that wh thie abandon
ment of the sense of God w*xuld go also the
high sense of the value of man. There was
the awful spectacle of man forget ing himself
in his average scramble for mere thing-;. Chief
empahsis was placed upon materialism in phil
osophy, go as you please in morals, grabbing
of wealth in the world of affairs. Beauty and
culture, noble aspirations and even freedom
■itself were almost lost sight of. And all of
thus in the name of ‘‘building a new world”—
and what a world it is. The rising tide of
crime, the throwing off restraints and all au
thority in morals and ethics—not to ay reli
gion, the intensifying of suspicious, fear, bitter
ness and all the evils and havoc that lie in
their trail. What of the multiplied manifes
tations of injustice? What of the devastat
ing effects, upon millions, of unemployment,
want and starvation in the midst of plenty?
Why go on. can’t we see what is being contract
ed? s
Now is the time to stop and shift gear—at
the beginning of the new year. Letusexamine
again the foundations of our efforts and see
what it is we are tryng to build upon. No
need to go any further without fresh and vivid
sense of God as the maker and keeper of things
wor.h while. Man—no matter how wise and
alert—cannot manage this world, he cannot
manage himself—somebody to look up to and
say, ‘‘help, help,” for all the world knows that
help is needed and that right onw. Not only
should the foundations be roexamned. there is
need for careful scrutiny of the materials that
ro into the supers' ructure. No need to put
up the new building if the same things are
there that destroyed the old and made it so
insecure. Nor would it be a bad thing to re
examine the workmanship that is rounding the
new building into form and thinking and then
planning, planning1, then working, working,
in the right way and for noble ends. This
new year offers a new opportunity for many
things. New resolutions are not enough—hut
make them. Then follow them with a new
sense of the solidarity of mankind. Follow *
them with new appraisal of present methods
and policies, new attitudes and loftier purposes.
Let us go forward into the new year with a
program ofr the uplife, the material and spirit
ual improvement of all the people.
—The Plaindealer
“YOUR sms WILL FIND YOU OUT"
—The world pays off in percentage on the
basis of production honesty, efficiency and in
tentions of motives and actions fcr the welfare
of society— The man that never does any
thing never gets pay except in carity dona
tions,—and who wants to be an object of char
ity?.The man, that wraps himself up in sheep
clothing, putting someone else on the spot in
front for him, gets his pay check, but he meets
his sins coming back.Sometimes a commun
ity is focled for many years by men wrapped
in sheep’s clothing. ,_._They honor them,
they respect them, they look to them for ad
vice and leadership. But when their sins
meet them the community begins to squawk—
and it is just too bad then, because brother you
are through.
Beware of men wrapped in sheep’s clothing,
they are dangerous, they will get you in trouble
and leave you holding the bag. Beware of
the sneaking political henchmen, who dart in
and out cf their bosses ’ office to meet you and
find out what is on your mind. Beware of
the Uncle Tom who lies every time he opens
his mouth. Beware of the “South Before the
War’’' Negro who betrays the race before the
dawn of morning. Let them have full sway.
The world pays off in percentage and their
sins are ot in any way indispensable. Let
them have full sway, but BEWARE, they will
meet their sins coming back.
A picture of
Color rarely j
seen- Imitation
of Life’ at Ritz
Feb.- 5, 6, 7
U. S. MENTIONS FIR IE
INCREASE ACTIVITIES
Last month three large muni-1
tions corporations in the United'
States declared extra dividends.
E. I. du Pont de Nemours and Co
announced the payment of an ex-i
tra dividend of 15 cents a share
on common stock. The disburse
ment will involve a total of $1,*
658,581. This extra is in addition
to a regular quarterly dividends of
65 cents a share. Three months
ago th company paid an extra
dividend of 50 cents a share.
The directors of Colt’s Patent
Firearms Co. foted a special divi
dend of 50 cents a1, share on com
mon stoek in addition to the re
gular quarterly dividend of 25
cents a share. Last year this com
pany’s net profit was $675,132 in
comparion with $20,795 in 1932.
The Arms Manufae uring Co. vot
ed an extra dividend of 50 cents
a share.
COUGHLIN—ANTI-LABOR
Father Charles E. Coughlin,
radio priest and organizer of the
National Union for Soeial Justice,
with the support o fsome large -
financial interests and the Ilearst}
Press, has repeatedly declared his
opposition to strikes and unem-'
ployment and social insurance. He'
refused to employ union labor for
the construction otf his huge
church at Royal Oak. Michigan. I
He has all his material printed in
a non'union shop.
The National Union for Social
Justice, which is reputed to have
enrolled 200.000 members among
whom ar many prominent politi-j
eians and industrialists, is Cough
lin’s bid for the 1936 elections
Not satisfied with hitting union
labor, he declared that the for
eign-born could bevome only hon
orary nmbers of his organization.
(Coughlin was bom at Ottaw-a,
Canada.), that the people he want
ed in his organization must be
voters and 19-year old citizens
who would be able to vote in two
years.
Coughlin contradicts his own
tnstements from one day to the
next. On December 5. he said
•“hat the NR A had helped ■ work
ing man, but net as much as it!
should. The following day, at a
press conference, he characteriz
ed the NBA as “a lot of hooev”
and declared also “the state has
proved under democracy in Amer
ica to be a hi-jaeker.”
Aside from the financial backing
Coughlin receives from Harry
Jump, known Fascist, and George
T eBlanc, the broker, as well as
the general support ho receives
from committee of the Nation com
posed of 2.000 industrial leaders.
Coughlin receives thousands of
dollars from his radio listeners.
Tie reeieved enough in 1933 to pav
his 390.000 dollar radio bill and
a sufficient sum to start construc
tion on his new church.
U. S. ARMS CHINESE
NATIONIST GOVERNMENT
While the United States govem
j men.t nominally declared an em
j bargo on munitions shipments to
i fhe Chaco belligerents, no suee pol
icy has been thought of with re
spect to the Chinese Nationalist
I government. Actually as far
j back as 1929 the U. S. State De*
i partment approved and eneour
i aged an agreement between the
Nanking government and Ameri
can aviation companies whereby
the latter would supply Chinese
I Nationalists wtih war planes.
Tn the spring of 1933 Colonel
Jonett, an experienced American
officer directed a staff of twelve
American instructors in the train
ing of 60 Chinese w~ho compose
the first group of aviators deve*
loped in China. In the fall of the
same year, a month after Chiang
Kai-shek ordered the construction
of airdromes with accomodations
for 300 planes for use in the war I
against the Chinese Soviets, an a-:
greement was reached with the
Curtis Airesft Corporation to!
erect atHangehow a 5,000,000 air-1
plane factory. A dispatch to th**
“New York Times, the eleventh
day of September 19:33 reported'
that the Nanking government had
obligated itself to buy a total of
60 planes a year.
Lieutenant Commander Frank
M. Hawks, IT. S. Naval Reserve
was sent to Chiba in February
1934 to demonstrate a 170-mile an
hour Curtis-Wright Condor plane,
which carried 3 machine guns and
2.500 pounds, of bombs, for the'
Chinese Nationalists. The far
eastern correspondent of the N. Y.
Hearld'Tribune, commenting on
Hawk’s trip pointed out that it
would lie similar to the one made
the previous summer by Maior
"Doolittle. as a result of which
Chiang Kai-shek placed a $1,000,
000 order for Curtis-Wright fight*
ing planes.
In April or 19b4, the Chinese
Nationalist government bought 32
training planes from the Consol
idated Aircraft Co. of Buffalo, a
fleet o 42-plaee Nought Corairs.
and another fleet of Douglas ob
servation planes and light bomb
ers. An order for fighting plan
es. actual number was not dis'
closed, was also placed with Air
craft Exports. Tnc.
The open support of the Chin
ese Nationalist government’s' mil*
itnry aviation program by the U
r>:ted States government was in
dicated in an article in the Octo
ber fith issue of the “Chinese
TYeeklv Review,” published in
Shanghai, which said, “The plane
. manufactured by the Boeing Air
plane Co. of Seattle, is to be dem
onstrated to the high officials of
the Chinese government by Mr.
Beall and a special pursuit pilot.
Edward Dorsey, who has been
"iven short leave firm the United
States Air Corns to demonstrate
in China the new type of milBarv
tactics which the plane is capable.
The latest shipment of planes to
China for nse in the present cam*
paign against the Chinese Soviets
was made at the end of September
when the Northrop Corporation
of Inglewood. California, complet
ed an order for 22 ultra modern
attack planes.
PROVERBS AND PARABLES
By A. B- Maim
(For Th-* Literary Service Bureau)
(“HITCH YOUR WAGON TO A
STAR”)
This is wise advice- It is to the
effect that one should aim hgh; as
pirs to the highest and the best at
tainable. This beeing done, though he
may faII short of his goal, still he
would reach a higher plane than
would be possible should his ambitions
be easily satisfied. There is great
help and encouragement in Longfel
! low’s declaration:
“Heights by great men reached and
kpt.
Were not attained by sudden flight.
But they, while their companions
slept.
Were toiling upward in the night.”
The thought also is consonant with
the verse which runs:
“H aven is not reached by a sudden
bound;
We build the ladder by which we
rise.
From the lowly earth to the vaulted
skies.
And we mount to its summit, round
by round.”
But. clirpbing, ascending and attain
ing, are impossible if one’s aspirations
grovel inst ad of reaching- upward.
FACTS and FIGURES
ON WAR and FACISM
Ohio Work Relief Factory; A
Strike-Breaking- Ag-ency
—
.Abolition cf direct cash relief
in favor of the so-called ‘ work
relief” plan is the basis for the
reorganization of unemployment
relief on a nation-wide scale pro*
posed by the Federal Emergency
Relief Administrator Harry L.
Hopkins, and now being concrete
ly worked out by President Roose
velt and his advisors.
The plan which calls for the
placement of all unemployed on;
. subsistence farms and in “product
tion-for-use” factories, unknown
to the general public has been in
operation for some time. The Ohio
Production Units, a forced labor
system for the unemployed of that
state, has been in operation as
one of Hopkins experiments for
his new plan. If this plan is a
'dopted, only those who will work
in the ‘‘production-for-use” fac
tories or on subsistence farms
will be eligible for government
relief.
Ohio Production Units, a work,
relief project, operates factories^
with unemployed labor, paying1
wages corresponding to their;
‘‘bngetary needs”—on home re-1
bef—averaging $18 a month fori -
a family of four in Ohio. While |
workers are permitted to work <
overtime, they are paid for this
time in bookkeeping credits, scrip,
or are allowed to apply their over
time on purchases of products
produced in other government
“production-for~use” factories.
The Ohio Plan, as the system is
currently known, taken over idle
factories, abates the taxes of the
owners and pays the owners rent
on a contractual basis, that nets
him a greater profit than he would
be likely to get if he were running
the factory on a commercial basis
and paying his workers a living
wage, which permits the owner
to take back his factory in good
running order as soon as he thinks
he can produce profitably for the
commercial market.
Such a system constitutes a dir
ect strike-breaking agency be
cause whenver a manufacturer
finds his plant so well organized
that he is forced to pay decent
wages, he can simply turn over
the plant to Ohio Production Units
Theoretically the unemployed
workers in these “ production-for
ise factories are allowed to organ
ize. But this is not an actuality
‘or organized workers wonld im
nediately demand a living wage
which is incompatible, in the eyes
>f the gowemment, with this
scheme that calls for the utiliza*
ion of the unemployed at sub
sistence wage.
EDITORIAL OF THE WEEK
(From the Cape Charles, Virginia,
Times. November 29, 1934)
About Time for a Federal Anti-Lynch
ing Law.
As another congress approaches
there is a decided revival of discus
sion concerning the introduction of an
anti.lynching bill and we are free to
admit that -;f the states persist in re
fusing to punish this form of mob
violence. Congress owes it to the self
r specting and law abiding element of
the country to save us from the fur
ther humiliation of this remnant of
barbarism.
I.ynching is. the meeanest form in
which it is possible for cowardice 'to
express itself; th^re is seldom if ev r
a member of a 1; itching party, who if
left to himself would have the nerve
to storm a jail, or openly comm.it mur
der. Such savagery com s of over
crowding foul conditions, and morall
ly imperfect ventilation; in other
words, lynching parties usually con
sist of an improvised gang artificially
■■thused. who discountenance and re
ject every breath of wholesom coun
sel; ears have they, but they hear
not. neither have they the respect for
law, or r gard for society to refrain
from ai|/ excess their frenzy may
suggest
out wnai snail dc said of those who
are entrusted with the peace and well
being of the communities in which
thesi outrages are perpetrated?
They “probe” but find nothing, eyes
have they but they see not. and if
perchance somebody is indicted, juries
acquit them, and the same crowd is
turn d loose with official blessing to
perpetrate other crimes of the same
or smilar kind.
Prison authorities are often as cul
pable as the mob; they oftimes make
a gesture of resistance but not fre
quently are easily “overcome.” They
never recognize anybody and are like
fools in a fog when called to give ac
count of th.ir p-art in the affair.
And so we say, if these travesties
are to continue, and states wrill not
uphold their own dignity by dealing
out punishment to lynchers, the Fed
eral authorities should be enabl d by
congressional enactment to do so for
them. In other words, the law, tho’
often hindered because of. our faulty
procedure, must be r.spected, and
men must be taught the virtue of pa
tience. in this as well as other cases
where the wheels of justice turn
sluggishly.
ECONOMIC^
HIGHLIGHTS
During 1934 retail business was
I substantially better than 1933
accord to leading commentators.
Most surveys place improvement
at 20 to 25 percent.
However, industry showed little
or no improvement .
The explanation of that seem
ing anomaly is that department
store cash registered tinkled often*
er than at any time since the be
ginning of depression. But bas
ic indusrites, such as steel. lunr
ber and ruining, fund purchasers
for their products few and far be
tween. Fleople bonhgt perishabl
es—shoes, food fuel, clothes—but
they did not buy cement, shingles
and similar non*parishable goods
Increased retail trade was un
doubtedly due largely to heavy
relief expenditures.
i no disparity oorween business
and industry was especially mark
ed during the Christmas buying
season. Heavy employing indus
tries were at an extremely low
level—while scores were jammed
with purchasers who bought not
only necessities and staple goods,
but more luxury items than in
several years.
The burning question now is,
when will industry come hack and
give regular employment ? And
here’s a ease where the commenta
tors are a long way from seeing
eye to eye. For example, a short
time ago, General Charles Gates
Dawes, ex-Vice President, ex* Am
bassor to Great Britain. and ex
ehairman cff the Reconstruction
Finance Corporation, spoke before
the Chicago Association of Conr
merce. Armed with an imposing
array of charts and graphs, Mr.
Dawes observed that during any
depression, the demand for dur
able goods rises last—but rise
fastest once it starts. Then he
made the unequivocal foremast tha
June or July of the preceding year
will mark the commencement of
a period of full business prosper
ity. Basis for this forecast was
the experience of past depres
sions, notable those of 1873 and
1893. In each case, according to
Mr. Dawes, demand for heavy
goods appeared preeiselv five
years and six months following
the stock: market collapse.
Not so sanguine, hewever. is onp
of the country’s most famed busi
ness prognostocators. Gnlonel Den
nard P. [AytaIs.o vice nreciden4
end economist of the GWnlnnd
Trust Company. Mr. Avres can
*»V«. UU ittv» Ul 2>A^lit-8iiiu l licit
vUi* CVOUvaiiv iuuCiUiiti W(UI CUul*
paraoie to a stain u aiuuuioime
with a dead startt-r. \v e tunc, he
observed, been been u*«inu*g tne
machine go by pushing l#;Wi pu
blic expenditures for more .nan a
year without and indication that
it will soon become sen.-jvupei"
ling.
One concrete sign that the.
break in the clouds for heavy iu
dustry may be not far off came*
from Federal Housing Administra-.
tor Janies A. Moffett. He US-'
! notmced that his remodeling
drive had rolled up a total of $t#v
1 000,000 worth of durable gi» <!■».
business in three months, were
ereafing indusrial activity value<f
a* ore than $2,000,000 per day. '
Thus, you can find about what
ever von want to find in the way
''f business forecasts. But the
hen forecasts have gone awry in
an unearmv manner d urine the .
present depression. One Fine
is sure—conservative or radical
action of the Congress will have
a strong effect, eiher favorable or
unfavorable , on the business fu*
‘ure. Most qualified lookers-on
believe that Mr. Roosevelt wants
legislation to he comparaivelv
conervastive. but the question is,
can he control the more radical
members of his party!
When it comes to crime, the
Tubed States has the unenviable
distinction of leading tvP world
i by. a wide mnr<?;n. Each vea**
erime accounts foe the de»th of
ton neoplc ovt rf each 100.000
dies because of enninal underiak*
ings.
The greatest light on crime ever
attempted in this nation is now
being carried on by the iederal
government—and that is one of
the new Federal activities, per
haps the only one, which meets
wiih the unqualifiesd support of
all the people. So far, the gov
ernment hsa been extremely suc
cessful. Its agents ave eliminat
ed a number of underworld kings
—have frightened others into hid
ing. Where, in many cases, local
police are corrupted, Federal men
are moved continually about from
place to place to insure that they
will make no -undesirable connec
tions: will not be known to the
criminal clement. Where local
police are often stupid and inef"
fieient. Federal men are college
** •
trained, are instructed in ehemis*
try, ballistics, all the subjects
that make successful erime fieht
ers. Where a small force of loeal
officials could sometimes be in
timidated, that is impossible with
Federal men because their num
ber is not limited, and the er'min
al who does “hump off” a Feder
al spent. can look forward to two
more taking his place. The who1"
power of the Federal envomm1'”4
with its onlimited resnirrees l*>
monev. men and rcnmmmt. ?<*
triT-ip^ loose to effect his capture
ati<1 eveeution.
Tt is pleasant to he able to r*<
nr'*4 that all the olorifT ■noipt ♦
main*- prime being “on the run”
*n this country.
TT <3 4>m TTm ur* »
’* * /
=7— 4
The United .States decided to
accept the role of ” peacemaker”
m the Chaco dispute on December
7. This would seem to be in ac
cordance with the policy enuncia
| ted by the government when it
placed an embargo on all munition
1 shipuiens to Paraguay and Bolr
, via—but:
! On November 6, it was revealed
| th*t arms shipments to the Chaco
i belligerent have continued despite
j the embargo and thus far the U. S.
: government has done nothing a
| bo”t it. “The West Coast Lead
er” of Lima Peru, reports that
j the Paraguayan minister in Wash
ington requested the State De
pannent to investigate the ship
| ment of 184 cases of machine guns
] femn Norfolk, Va., to Bolivia via
j ^jbca during the week previous.
The embargo was supposed to go
; into effect in May 1934. The
i Paraguayan minister pointed out
i that it was entirely improbable
that this consignment formed a
I Part of the munitions hiprnents
permitted on the ground that the
contract had been signed prior to
the embargo.
It has been estimated that over
W.OOO men have been killed and a
other 40.000 disabled bv jumde
diseases in the present ' dipsute
over the rich Chaco oil deposits
and grazing lands. Standard Oil
■°” t.Y* an<i Bolivian Conses
s.ons Limited. Brhian, have been
the most interested in, the oil des
pite Standard Oil’s denials. Of
the three largest Estancias, self
siif lment communities where
stoek grazing and production of
tanning are the most important
activities, one belongs to the 4r
eontme Cattle Co.. n Bri/ish Co'
w,fh a ^Pital of 2.000.000 „nTd
I>^os and 7.000 inhabitants „nd
tion?rpt0tth° Ameriean Intema
■onal Products, which has an in
vested capital of 4 000.000 "ofd
pesos and employs 2.300 workers.
