The Omaha guide. (Omaha, Neb.) 1927-19??, October 05, 1935, Page TWO, Image 2

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    ECONOMIC
HIGHLIGHTS
By E. Hofer
IS THE PUBLIC UTILITY ACT
UNCONSTITUTIONAL?
According to an article in the
Wall Street Journal, the recently
passed Public Utility Act of 1935,
which was forced through Congress
in its closing hours, is just as un
constitutional, in the view of re
sponsible attorneys, as was the
earlier version of the bill over which
House and Senate committees
wrangled for weeks without reach
ing a basis of agreement.
The bill, as passed, delegates
sweeping powers to the Securities
and Exchange Commission and the
Federal Power Commission to regu
late, and in some cases to arbitrarily
force dissolution of utility holding
companies. Jn addition, the bill
gives these bureaus unprecedented
regulatory authority over operating
companies as well. This will result
in substantial increases in the oper
ating cost of utility companies, inas
much as clerical and legal staffs will
have to be greatly increased as the
myriad provisions of the act go in
to effect.
Under the terms of the act, the Se
curities and Exchange Commission
is given full power to determine
whether or not any dividends shall
be paid by utility. Another section
gives it authority to determine the
depreciation of a utility. Still an
other section will allow it to pre
scribe utility accounting practices,
and to demand any type or report it
may wish. In brief, as the Journal
says, “The act makes the Securities
and Exchange Commission and the
Federal Power Commission a board
of directors over the entire public
utility industry.”
Thus, the so-called compromise
bill which finally passed, is not only
a regulatory measure—it is a meas
ure whereby utility management
may actually be transferred from the
owners to the properties to political
appointees. As the lawr now stands
it is undoubtedly a measure whereby
a handful of men with no invest
ment in a company they regulate,
can force it out of business, at great
loss to investors. Those who hon
estly think that the act is designed
purely in the public interest and is
not damaging to utility stockhold
ers, may be sadly surprised, because
objectionable provisions of the orig
inal bill, which was at first voted
down by the House, are still in it.
Constitutionality of the bill is the
burning issue—and it should be de
sided as soon as possible. The Ameri
can people have had a taste of un
constitutional laws, and they don’t
want any more if they can help it.
0O0
NEGRO EDITOR HAILS SOVIETS
— .— \
By Wiliam N. Jones
This report is written from Mos
cow, the fastest moving city in the
world. Living here one week gives
me the impression of having droped
on another planet.
Before commenting on Moscow,
however, I want to call your atten
tion to an analysis of the Ethiopian
Italian matter which should be of
concern to readers of the AFRO
ALERICAN not only in. America,
but throughout the world.
After talking to many men and
women, including representatives of
the Ethiopian Government, news
paper editors and well-informed
leaders in England, France, Geneva,
Poland and Russia, it seems quite
clear to me that Ethiopia is likely to
furnish the spark which may set off
a world-wide conflagration which
will make the last war seem a minor
skirmish.
Ethiopia Has Even Chance.
Although from the very beginning
Ethiopia has had the diplomatic
cards stacked against her, she has
played the game so skillfully that
sho is coming out of ths phase of the
struggle a victor. When I left Ameri
ca, Ethiopia’s situation looked
gloomy to me.
It still looks grave, but with more
facts upon which to base conclu
sions, I feel now that whether or not
that country is driven to war to de
fend herself from Italian aggression,
she has a fifty-fifty chance to win.
Secondary Skirmish.
I do not base this conclusion on
the secondary skirmish which has de
veloped between England and France
• on the one hand and Italy on the
other. Both England and France are
opposing Italy over but not against
tho proposed division of that coun
try. Both are committed to a policy
of reducing Ethiopia to some kind of
a protectorate until certain serious
factors, which I shall mention later,
arose. France was frankly commot
ted to allowing Mussolini to go as
far as he wishtd in exploiting and
subjugating the kingdom.
Germany, the other European dog
of war, engaged in a program of
plunder and racial proscription, will
grab any parcel of Africa that comes
handy, but has her eyes turned to
wards the provinces of Austria and
Soviet Russia.
Notice, Subscribers: If yon don’t
get your paper by Saturday, 2 p. m.,
call Webster 1750. No reduction in
subscriptions unless request is com
plied with.
WHERE PROGRESS NEVER ENDS
During the past few years, un
paralleled progress has been made
in improving the standards of ser
! vice offered by the American rail
roads. This progress has extended
to both freight and passenger trans
portation.
In the freight branch, car short
ages have been virtually eliminated—
the railroads are able to meet even
unexpected peaks of demand quickly
and efficiently. Freight train speeds
are considerably greater. Refriger
ator cars have been bettered, thus
cutting down spoilage of vegetables.'
Railroad detective departments have
been extremely successful in appre
hending and punishing freight,
thieves and, as a result, this type of
crime is well under the levels of a
decade ago.
The passenger In the modern rail
way car receives service which,
from the standpoints of cost, com
fort, celerity and convenience, is
virtually unknown in any other
country—percisely as it was un
known in this country even a few
years ago. Stream-lined trains and
locomotives have made deep cuts in
the time required for going between
the country’s principal terminals—
records believed unattainable have
been established, only to be broken
a week or two later. Air-condition
ing, the greatest health and comfort
achievement of a generation, has
made the interior of cars comfort
able even in the worst extremes of
climate. Insulation against wheel,
locomotive and other external noises
has materially reduced disturbing
sounds. And the success of the rail
roads in advancing the safety of
transport is well known—you are
much safer on a modern railroad
train than at home.
In addition, fares have been
greatly reduced, and many “flyers”
that formerly commanded “extra
fare,” now charge no more than or
dinary trains.
This is a fine testimonial to the
leadership' of the railroads—to their
deeply-ingrained spirit of public
service. Rail progress never ends—
and the public benefits.
BARRIERS TO MINING
On September 23, the American
Mining Congress, metal mines divi
sion, will meet in Chicago. Two of
the most important matters for dis
cussion are those old questions of
mine taxation and labor legilation.
Nothing can do more to hold min
ing back than erroneous, mstaken,
and disgrutled tax and labor policies
on the part of the states and the fed
eral government. Even in the pros
perous days, mining was continually
in hot water over taxation. Legis
lation was often proposed and some
times passed, that practically took
the profit out of mining operations.
In these days, with the price of
the base metals at extremely low
levels, unfair taxation and legisla
tion tending to create labor disturb
ances, could rob mining of whatetver
chance it has to win recovery.
,
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age of Black and
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Large bar Black
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51,200 CORPSES
In the 18 months that ended
June 20, 1935, 51,200 persons met
death in motor crashes in this
country. More than 1,300,000 were
injured.
The bare statistics, though pro
voking as they are, cannot give an
adequate picture of the horror of
major automobile accidents. Figures
cannot express broken bones—
mangled bodies—crushed skulls—
obliterated feature s—decapitated
bodies—and all the rest of t h e re
sults of fatal motor crashes. Nor
can figures picture the tragedy of
parentless children and broken
hearted dependents of the victims of
recklessly driven cars.
In a recent article in Readers’
Digest, F. C. Furness wrote: “A
first-class massacre is only a ques
tion of scale and numbers—seven
corpses are no deader than one.
Each shattered man, woman or
child who went to make up the 36,
000 corpses checked up last year had
to die a personal death.”
That is worth thinking about next
time you take the wheel of your car.
Driving at excessive speeds may, if
you get away with it, save you 10
minutes in a 50-mile run. If you
don’t get away with it, it may mean
your death, or the death of an inno
cent party. Passing on, hills and
curves, weaving through thick traf
fic and taking other chances may
save you a minute or two more—or
it may mean a crushed body on the
pavement, its bones twisted and
broken, its eyes staring and sight
less.
It’s up to you—to everyone who
drives a car. Is recklessness worth
its horrible cost?
OUTSTANDING AMERICAN
DEMOCRACY
The life insurance industry pro
vides the most vivid possible illustra
tion of the thrift and foresight of
the American people.
Every dollar of the billions in
vested in life insurance policies
means that someone has saved, has
wowrked, and has done what he
could to set up a defense against the
exigencies of the future. Every
time a premium is paid, or a new
policy sold, it means that depend
ents are being protected against the
unexpected death of the wwage-tam
v, or that th wwage-eamer himself
is setting in motion machinery
whereby he will be assured of an in
dependent, comfortable old age.
This is a typically American
achievement. It is not by an acci
dent that the average American pos
sesses many times as much life in
surance as the citizens of other
countries. American individualism,
our heritage, creates an instinctive
desre to provide for one’s own fi
nancial future through one’s own ef
forts. Few of our citizens wish to
be wards of charity or government
—they want to attan old age, com
_____
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0O0
By E. Hofer
REGIMENTING THE SPUD
The humble spud has become the
latest target for the bureaucrat.
Under a law passed by the last
Congress, the Irish potato is to have
its turn in so-called crop control.
Growers w'ho produce more than five
bushels a year must submit to a
stringent licensing system—and if
they produce more than their quota,
a heavy fine may be levied against
them. Opposition arguments, based
on the fact that the spud is an ec
centric sort of animal, whose pro
ductivity is almost impossible to
control, have had no avail.
The new law did not have Admin
istration support, and seems to be
regarded coldly by Secretary Wal
lac. It was put through by zealots
WHITEN SKIN
while you
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Now—almost over
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Tonight at bedtime spread Nadinola
Bleaching Cream on face, neck and arms.
While you sleep it gently dissolves dark
pigment. Remember—Nadinola is double
acting. It gives results you have never
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Toy Get Nadinola today at any toi
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who feel that nature should be regi
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However, it is encouraging to re
port that various groups, led by well
known men, have announced defiance
to such a liberty-destroying law—
and have challenged its enforce
ment. The pioneer spirit, which de
tests any kind of dictatorship, is not
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0O0
Mothers—Let your boys be Guide
newsboys. Send them to the Omaha
Guide Office, 2418-20 Grant Street.
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