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The Omaha Guide
Published every Saturday at 2418-20 Grant St., j
Omaha, Neb.
Phone WEbsrer 1750
Entered as Second Class Matter March 15, 1927
at the Post Office at Omaha, Neb., under the Act
of 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.
Omaha, Nebraska. Saturday, JUNE 8, 1935
Things One Remembers.
By R. M. Hofer.
■\\riIILE driving east of San Diego recently. I over-1
hauled and passed what seemed to be an old-time j
prospector in a small wagon drawn by two burros, j
I stopped just ahead to buy some grape juice j
from a farm lady at her roadside stand.
I was ready to leave when the "prospector i
drew up and stopped. On closer observation, he j
looked more like a dime novel hero or bad man, j
with all the traditional trappings, including a 45
calibre revolver hanging with the approved sag on
his left hip.
This style of dress has not been the fashion for j
either “cowboys’’ or “prospectors” in the West for
manv years, so I concluded he was advertising a:
patent medicine snow.
Imagine my surprise when he said to the lady,
“I’m a Federal man, a. Federal prospector. I want
to buy a jar of honey. ’ She handed it to him and
said, “Twenty-five cents, please, and one cent state
sales tax.’’
“Oh, no,” he said, “I don’t pay that tax. I’m
a Federal man. “I’m tax-exempt.' With that, he
swaggered out, leaving the hard-working rancher s
wife to pay the penny tax.
This was such a glaring case of the use of of
ficial power and privilege to escape the obligation
of citizenship, that I was astounded. If this public
servant’s salary; which is paid in part by the taxes
of the hard-working woman to whom he refused to
* pay the penny tax is exempt from taxes, it is bad
enough if he uses his official position to bluff his
wav out of paying taxes, it is that much worse.
The moral of this incident is simple. In these
days of exorbitant taxation, it is unjust, unfair and
undemocratic that any government office holder be
granted any exemption from taxation not granted
to a private citizen who pays the wages or salary
of the office holder. It is no harder for a public
servant to pay taxes out of his income, Than it is
for a private citizen to pay it out of his own
earnings.
Special privileges for officialism, at public ex
pense, must be curbed or the common citizen will
become nothing but a tax slave to dig up money
for the tax-exempt bureaucrats.
Preparing For the Next
Depression
'pHE recent observance of Life Insurance Week
has focused public attention on an industry
which has been of invaluable sendee to the nation
during depression; and which promises to be of
still greater service in the future.
Life insurance has paid out hundreds of mil
lions of dollars in the past five years, through ma
tured policies, loans on policies and surrender
values. A very large percentage of that money
has gone to people who had little else in the way
of financial resource. It has prevented untold
untold misery and want. It has stood between
thousands of people and utter despair and break
down of morale. Thus, it has been as splendid and
as great a social as well as an economic influence.
It is a noteworthy fact that life insurance sales
have been steadily increasing for the last year or
two; even during, periods when business was stag
nant or retrogressing. That can mean but one
thing; more of the family budget is today being
devoted to life insurance in one or another of its
forms than in the past. It is being purchased by
the foresighted both as an investment and a pro
eetion; and as an assurance that the next depres
sion, if it comes, will not find them without a safe
and secure financial rock on which to lean.
The Real Causes of Railroad
Depression
<<FpHE two real causes of the present poor showing
of the railroads,’’ according to John J. Pelley,
President of the Association of American Railroads,
“are the general business depression and the com
petition of other transportation which are heavily
subsidized and not effectively regulated.’’
The depression may pass, but the railroad prob
lem will remain until our existing transportation
policy; which is no policy at all, realistically
speaking, but a hodge-podge of conflicting regula
tions and warring viewpoints is overhauled.
From 1906 to 1933, the federal government spent
on inland waterways, outside the Great Lakes,
m $785,000,000; none of which has been returned to
the government.
On top of this, the government itself went into
the transport business in 1919, through the Inland
A aterways Corporation. This endeavor has con
stantly distinguished itself by losing money: and is
subsidized to the extent of $2.30 for each ton of
k freight transported.
A Between 1921 and 1932, finally, the government
spent more than seven billion dollars on highways;
B in addition to all money received from gasoline and
------
license taxes, paid by the actual users of the roads.
Thus commercial highway carriers have been pro
vided with magnificient rights-of-way-at the ex
pense of all the taxpayers.
The result of all this has been to deprive the
railroads of a vast amount of business that, under
equitable competitive conditions, they could have
held. They are the only carrier which pays its own
way in every particular. They are the only car
rier which is stringently and completely regulated.
And, for all the talk of their usefulness' diminish
ing, they are the only carrier whidh can be counted
upon to haul, quickly, certainly and cheaply, the
great bulk of the nation’s freight.
The solution to the problem lies in extending
regulation so as to embrace all carriers, and in eli
minating subsidies. A bill to achieve the first is
pending in Congress and a bill to achieve the second
should follow on its heels.
The Price of Haste.
“JJASTE, ” accordng to the Travelers Insurance
Comany, "causes nine out of ten automobile ac
cident deaths.’’
There are various forms of hasty driving; all of
them reprehensible, all generally unnecessary. Ex
ceeding the speed limit is the most eommon form
and is the most important single cause of
fatal accidents. Reckless driving, such as cutting
in and out of traffic, passing on hills and curves,
etc. is another form. So is driving on the wrong
side of the road. So is usurping the right of way,
which is an especially prolific source of accidents,
serious and minor, in towns and cities.
Last year haste in its many forms was the direct
cause of about 30,000 deaths, to say nothing of
hundreds of thousands of injuries and property
damage running into the millions. At best, those
hasty drivers might have saved a few seconds or a
few minutes by being reckless: they might have
reached some distant objective half an hour sooner
than if they had driven carefully. "What a price they
and their innocent victims paid for that potential
saving in time.
For every driver who is hasty because of a genu
ine need to get somewhere in a hurry, a hundred
drivers are hasty for no unsound reason at all; be
cause they are congenitally careless, irresponsible
or incompetent. How long are we going to permit
these drivers to sacrifice thousands of lives a year
on the altar of recklessness?
Indians Before Miners
'J’HE Mining and Contracting Review of Salt Lake
City recently published a cartoon exemplifying
the fact that the federal government has appro
priated more than $17,000,000 for carrying on the
work of its Indian bureau; while it has appropriat
ed less than $1,200,006 for the Bureau of Mines.
The Review’s sole comment it: “Why add words
to this?”
The welfare of the Indian is important; but it
would certainly seem that the welfare of mining,
one of the few basic industries, is at least equally
important. In these days of vast government spend
ing for any and all purposes, a bureau as valuable
as that of the mines should certainly receive a
reasonable budget
“The gas and electric expenditures by the aver
age family aggregate 1.67 per cent of the family
budget, and that, subdivided between gas and
electricity, is about one per cent for electricity and
two thirds of one per cent for gas. Food takes 30
per cent and clothing 12 per cent of the family
budget.’’ Public Utilities Fortnightly.
Sixty-four out of One-Hundred
Left Nothing
Even in normal times, 98 percent of the Ameri
can people are poor investors. A survey made of
20.000 persons, before the current depression, shows
that only one out of one hundred accumulated as
much at $100,000. Only one out of eleven left an
estate which, if invested at the rate of 6 per cent,
would produce an income of $50 a month or over,
and nearly two-thirds of the men studied, 64 out of
each 100 left nothing..
This was in good times. In the words of Henry
Behner of the New England Mutual Life Insurance
Company, “What a similar study wrould reveal to
day is unpleasant to contemplate.”
More and more of us are starting investment
programs in comparative youth, which will provide
at least a competence in the future.
Life insurance, trust funds and similar invest
ment plans, which place safeguards in the future
are growing and are more favored.
Copper is Firm
'PHERE is one encouraging phase to the copper
situation; stability seems to have been obtained
both in Amercan and foreign markets. Buying is
holding to a moderately good volume, and prices
are firm. Blue Eagle electrolytic copper for do
mestic delivery is holding steadily to the 9 cent
level.
The mining industry is not going to prosper
heavily under these conditions, but, if they con
tinue, it is going to make progress. It is said that
the average mine can operate profitably at the
current level of prices, if it is able to keep its
operating costs from rising. There is a warning
in that for legislators who might think this a good
time to plaster the mine with new taxes, new costs,
and new and unfriendly legislation.
* * *
“When the municipally owned utilities do not
pay taxes it means that the consumers living in
those cities are not paying their fair share of the
state and county taxes.”—Herman Trachsel.
ECONOMIC
HIGHLIGHTS
Happenings That Affect the Din
ner Pails, Dividend Checks and
Tax Bills of Every Individual.
NationaJ. and.. International
Problems Inseparable from Lo
cal Welfare.
—0O0—
For all that is written and said
to the contrary, business today is
as much: and perhaps more;
afraid of inflation than it was
two years ago when the clouds of
currency manipulation filled the
financial sky. One indication of
business attitude is the fact that
the Administration has twice
within a late week attempted to
assure industrialists that inflation
is not anticipated, that a sound
I currency will be maintained.
Secretary Morgenthaus recent
! speech was designed to quell in
; temal fears as to the stability of
the dollar, and to point out that
I the Treasury was ready and will
ing to cooperate with other na
tions in achievnig monetary
stabilization. That represents a
rather decisive change from the
Administration’s past stand; it
will be remembered that the
President “wrecked” the World
Economic Conference by flatly re
fusing to consider stabilization.
Second event was the Presi
dent’s own speech before Con
gress in vetoing the bonus; it
represented the first time that a
Chief Executive has appeared be
fore the legislative branch to ex
plain a veto, ask that it be upheld.
The President covered much larg
er issues than the bonus in his
talk which was extremely well
received, was praised by con
servative newspapers which dis
like most of his speeches1 and
pledged the Administration to op
pose the promiscuous issuing of
greenbacks. Keynote of all he
said was monetary stability.
Even so, business is not con
vinced ; and a good many level
headed observers can still see the
ominous spectre of inflation on
the horizon. Main reason is the
so-called * * Omnibus Banking bill ’
which has passed the House, is
now pending in the Senate.
Proponents and opponents of
the bill agree on one thing: If it
passes, the banking set-up of the
nation will be almost entirely
revolutionized. At the present
time, the power to control the
flow of the country's credit and
currency resis largely in the
hands of the governors and di
rect of the 12 Federal Reserve
Banks. The bill provides that
this power shall be taken from
these governors, given to a Fed
eral Reserve Board whose mem
bers shall be appointed by the
President. The issue .then, in the
words of Newts-Week, is this:
“Should power over the control
ling mechanisms be placed with a
Federal Reserve Board subject to
political domination? Or should
this power go to an independent
committee; a Supreme Court of
Banking?”
That issue is arousing one of
ihe bitterests verbal battles of
years among experts Adminis
tration men, such as Federal Re
serve Governor Eccles, who in
troduced the bill, feel that the
political domination phase of the
matter is less important than it
seems, that the creaion of a Fed
eral Reserve Board is highly de
sirable. Opponents of the bill
bill agree with Winthrop Aldrich,
head of Chase National Bank,
largest commercial institution in
the country, who recently said:
“This is not liberalizing the Fed
eral Reserve. It is making it into
an instrument of despotic author
ITT.
Now for the inflation possibili
ties of the bill. According to Mr.
| Aldrich, it grants the power to
the proposed Federal Reserve
Board to force on the Federal
Reserve System an indefinite
I amount of any kind of govern
ment securities; to fix rates of
discount and interest charged by
the Reserve Banks; to lower the
standards fixed in the law de
scribing the quality of ‘"paper”
the Reserve Banks may buy or
accept as collateral: to dilute
currency; to force the banks to
engage in any open market se
curity operations it deems ad
visable.
Under the last provision the
Board could force the banks to
purchase government ■obligations
in unlimited amounts directly
from the Treasury.
It is obvious then that passage
of the act would give an Admini
stration controlled Board unquali
fied power to force credit expan
sion; which is nothing more or
less than inflation. Under the
terms of the act, the Treasury
could sell new securities to the
banks whenever it became pres
sed for funds, whether or not in
come and the state of the cur
rency justified their being pur
chased. Old-time bankers and fi
nancial commentators literally
shudder when they think of the
possibilities inherent in that.
It is diffcult to forecast wheth
er or not the Act will pass with
ihe features conservatives think
are objectionable still in it. It
seems certain, however, that the
bill will be modified to some de
gree in the Senate, due principal
ly to Senator Glass, who is a hard
money man from way back’ hates
and fears any and all kinds of
inflation, distrusts Mr. Eccle’s
economic views.
—0O0—
Last year, new residential hous
ing construction totaled $108,000
000. This year it is expected to
reach $25,000,000.
Forty per cent of the “housing
market” is in five states; New
| York. Pennsylvania. Illinois, Ohio,
and Caliomia, and more than 75 j
per cent of prospective business is
: in one-third of the slates.
FHA estimates that a back-up
need now exists for 1,000,000 to
1,500,000 new homes.
National Health Week
and Insurance Week
to Be Objectives
Insurance Men to Give Both
Celebrations Vigorous Support;
Believe Better Business Ahead.
Durham, N. C., June 7.—ANP,
—The National Negro Insurance
Association which concluded a
most sussessful meeting here last
week decided on a definite pro
gram of activity for the follow
ing year
The Association went on record
as favoring a very substantial in
crease in the budget so as to more
effectively carry out National In
surance Week and National
Health Week, the latter event one
of those in which the Association
is the co-sponsor.
The Statistician’s report reveal
ed that the combined amount of
insurance in force in all of the
member companies of the Associa
tion amounted to approximately
2 hundred million, -while the com
bined assets of these companies
was 18 million.
There was a general atmosphere
of optimism shown because of the
results of the activities of the
companies during the past year.
Many expressed the belief that
better days are ahead. It was also
reported that as a result of the
combined efforts shown in the
actiivties of National Negro In
surance week that more than
| 5 million worth of business was
! written during that week.
The sessions were held in the
Auditorium of the North Caro
lma College for Negroes, of which
Dr. James E. Shepard is Presi
dent.
The public meeting, held on the
evening of the first day at the
White Rock Baptist Church was
largely attended and was honor
ed by the presence of the Mayor,
Honorable W. F. Carr, who made
an excellent speech of welcome.
The Insurance Commissioner of
the State of North Carolina sent a
representative in the person of
Mr. J. D. Reeder, Actuary of the
Insurance Department, who, in
his speech paid high compliments
to the North Carolina Mutual
Life Insurance Company domicil
ed and under the supervision of
this state. The high light of the
public meeting was the speech of
Mr. Harry H. Pace, who reviewed
the progress of the Negro Insur
ance Companies from their early
inception to the present date.
Excellent music was rendered by
the Glee Club of North Carolina
College for Negroes.
The excellent entertainment ar
ranged by the hosts included, a
smoker at the home office of the
North Carolina Mutual; a recep
tion at the Algonquin Tennis club
and a very beautiful dance given
at the Raleigh Memorial Audi
torium in Raleigh, North Carolina
under the auspices of the Omega
Psi Phi Fraternity.
N. A. A. C. P. Drive
Membership Nets
SI200 at Pittsburgh
Pittsburgh, Pa., June 6.—The
Pittsburgh Branch of the National
Association for the Advancement
of Colored People closed its an
nual memberships drive here with
1000 new members and a net total
of $1200. The drive was enthusi
astically supported, captains and
team members working in friend
ly competition. Mrs. Daisy E.
Lampkin^ Regional Field Secre
tary had general supervision of
the drive.
Aged Couple Seek
to Save Home With
Labor of 40 Years
Edenton, N- C., June 7—(ANP)—
One of those heart-breaking, tragic
situations so common to the South,
has been brought to a head in the Su
perior court of this (Tyrrell) county
through a change of venue from Cho
wan county, involving the effort of
Mr. and A Vs. Charles W Hill, 75
year-old farm couple, to save their
480-acre farm, valued at $8,000, which
they purchased with the ‘labor of
forty years.”
By virtue of the inexorable work
ing out of one of those “paper trans
actions” with “white folks,” the Hills
have lost their farm temporarily, and
are now seeking to recover it through
a civil suit.
Five years ago, Mr. Hill purchased
$1,600 worth of fertilizer from the
Albermarle Fertilizer company. That
was just before the depression. The
Hills had trouble in paying the entire
debt, but did pay $600. They signed
notes for the balance, secured by a
$1,600 mortgage on the farm, to the
fertilizer company. When the far
mer failed to pay the balance of $1,000
the notes were not extended. tlnstead,
the mortgage was foreclosed, and the
property was sold, in lieu of the bal
ance of the debt, to the fertilizer com
pany. The company in turn sold the
farm privately to one of its agents,
W. S. Carrawan who later secured a
•loan of $8,000 on the farm from the
Federal Land Bank of Columbia, S. C.
Thus the farm was taken from them
for an unpaid debt of $1,000, and it
now is clouded by an $8,000 mortgage
to the Federal Land bank. The Hills
have gone to court, prepared to pay
the $1,000 which they owed, and thus
recover, through an action to redeem,
the property into which is the results
of all their life work had gone
Art Exhibit Moved
to North Carolina
New \ ork, June 6—Lynching
will be exhibited on canvass,
drawing board and in sculpture
until June 1st. at the Universal y
of North Carolina at Chapel Hill
where the Art Commentary on
Lynching arranged by the Nation
al Association for the Advance
ment of Colored People was open
ed to the Tarheel public yester
day.
From North Carolina the much
discussed art exhibit of the inter
nationally-known American folk
way will move to St. Louis where
several educational institutions
have asked for it, according to
I Mildred Cohen, Secretary of the
I Traveling Exhibition of 'the Col
| lege Art Association.
Legal Notices
Attorney W. B. Bryant No. 2722
Binney Street.
PROBATE NOTICE
In the matter of the estate of
Eler White, deceased.
Notice is hereby given: That
the creditors of said deceased
will meet the administrator of
said estate, before me, County
Judge of Douglas County, Ne
braska, at the County Court
Room, in said County, on the 24th,
day of July 1935, and on the 24th,
day of September 1935 at 9
o’clock, A. M. each day, for the
purpose of presenting their claims
for examination, adjustments
and allowances. Three months
are allowed for the creditors to
present their claims, from the
24th, day of June 1935.
Bryce Crawford, County Judge.
Begins, June 1-3-5.
Ends June 21-35.
Attorney Ray L. Williams,
PROTECT YOUR SKIN
FROM THE SUN
Don’t let San and Wind coarsen, dark?n
and roughen it . , . spread on a thin,
protective covering of Black and White
Peroxide Cream before you go out and
keep your skin smooth and attractive.
Also lightens and refines your skin. Ideal
powder base. Large jar 25c, trial size 10c.
* YOUR SKIN NEEDS
CORRECT NOURISHMENT
Just as your body needs food,
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J**r£e_Jar_25cJ_trial size 10c.
Room 200 Tuehman Bldg., 24th,
and Lake Streets.
PROBATE NOTICE
In the Matter of the Estate of
Hattie Williams Johnson, Deceas
ed.
Notice is hereby given: That
the creditors of said deceased will
meet the Adminis.rator of said
esta;e, before me, County Judge
of Douglas County, Nebraska, at
the County Cour. Room, in said
County, on the 17th day of July
1935, and on the 17th, day of
September 1935, at 9 o’clock A.
M., each day, for he purpose of
presenting their claims for exami
nation, adjustment and allowance.
Three months are allowed for the
creditors to presen. their claims,
from the 17th, day of June 1935.
Begin 5-25-35 Bryce Crawford.
Ends 6-8-35 County Judge
Attorney Ray L. Williams,
Room 200 Tuehman Bldg., 24th,
and Lake Streels.
PROBATE NOTICE
In the matter of the Estate of
John White, Deceased.
Notice is hereby given: That
the creditors of said deceased will
meet the administrator of said
Estate, before me, County Judge
of Douglas County, Nebraska, at
the County Court Room, in said
County, on the 17th, day of Ju’y
1935 and on the 17th, day of
September 1935, at 9 o’clock, A.
M., each day, for the purpose of
presenting their claims for exami
nation, adjustment and allowance.
Three months are allowed for the
creditors to present their claims,
from the 17th, day of June 1935.
Begin 5-25-35. Brvce Crawford
Ends 6-8-35 County Judge.
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TEST ^et Nadinola today at any toi
let counter or by mail postpaid,
AT OUR 50c. If not delighted, money
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