. EDITORIALS . . . ^■■■■HntaHmMMnpmniniinninniPinnniniriiniitmiP THE OMAHA GUIDE Pabliahed every Saturday at SH618-W 9mA Streak, Omaha, Nebraska Phone Wlbater 17Sf__ Entered as Seooad dam Matter March IS, 1W7, at the Pest Of fice at Omaha, Nah., uadertheActof Oonyrem ef Mareh I, ISTt. TERMS OF SURSORIPTION $8 00 ~P IB TEAM Raoe prejudice must go. The Patharhesd ef 9td ml the Brotherhood ef Mao most prevail These are the enly priciples which will stead the aatd teal ef gmmi GOVERNMENT WITHOUT RED INK In a recent address, Governor Frnnk D. Fitzgerald of Mich igan told about “Govenunlent Without Red Ink”—using his own state as an example of how that happy condition of affairs jcaji be reached. And in his talk, he made some points that, simple and even obvious os they are, seem to havte been forgot ten by a good many high officials. “I have not come here,” the governor said, “posing as the originator of some magic formula that will cure the country of its ailments, economic and otherwise. There is nothing of the miraculous in what we have done in Michigan. We are as plain as an old boot. We’vuj just gone on ... . following certain rules of simple arithmetic and fundamental •economies—rules that you and I learned in our grammar school days; rules so plain it would seem almost ridiculous that an occasion would arise for anyone to get up in public and ex pound them. “I{y keeping the operating expenses of the state govern ment within its income, by refusing to create new taxes or ad ditional debts, by actually cutting down taxes in some instances, by trying to find new ways to save money instead of spending, we’ve managed to balance our budget. “We’ve thrown away the red ink bottle, forever, I hope.” Just simple horse-senseT Certainly! Rut in these days of soaring taxes and public debts, and of prodigal yvaste of the taxpayer's hard-earned dollars, it would be a great thing if more of the men (entrusted with government affairs sought “to find new ways to save money instead of spending it.” Michigan, like Kansas, is fortunate in having officials who realize that every bill contracted must eventually he paid, ami that the money with which to pay must be taken from the pock ets of the people. May their tribe increase! BOOSTING “SURPLUS” INCOME What does the thrifty family do that wants to get to get ahead in the world! It studies how to save by eliminating waste. If it spends fifty dollars a month for food, a ten percent saving on price would mean an increase of $5.00 per month in the family purchasing power. The great bulk of the average family's income must be closely budgeted—so much for food, so much for rent, so much for clothing, and so on. It is reliably estimated that not over ten percent of that income is “surplus" that can be used for amusement, savings and similar things beyond mere existenoe. Take a family with an income of $150 per month. If it now has a surplus of $15.00 per month, that is 10 percent of its income. If its food bill is $50.00, a 10 percent reduction would add $5.00 to its surplus, an increase of 33 1-3 percent. Thus, a mere ten percent saving in the monthly food bill would increase our average family’s “surplus" by one-third —-more money for everything that make life pleasurable anil secure. And when millions of families have such an increase in their surplus, the total runs far into the billions each year —purchasing power released for other uses. In this simple illustration is proof of the soundness of mer chandising methods that cut food costs by eliminating over head and middleman waste. PEOPLE AGAINST FRANKENSTEIN Observers of press common and public opinion throughout the nation are forcibly impressed with two facts: First, the desire of the people to maintain the neutrality of this nation and avoid war and foreign entanglements, and, second, the growing demand for balanced budgets and reduced taxation. Congressmen who have just returned to Washington after some months at home among their constituents, have felt this sentiment. They know that nothing causes greater worry to millions of citizens—Republicans and Democrats alike—than the soaring national debt and the Frankenstein menace of new and higher taxes. They know that the general thinking public is begining to understand that eventual tax reduction is es sential to permanent prosperity. It’s a rare Congressman who doesn’t keep his oar to the ground, and it’s also a rare Congressman who hasn’t heard from his constitutents that an economy program in Federal government is now desired, and is indispensable to increased employment, industrial expansion, building activity and relief for the land owner. The trend of public opinion was well demonstrated by the general approval of the President’s recent statement on neu trality and his expressed belief that new or higher taxes were neither necessary nor desirable. SAFETY FIRST.PROFIT SECOND Much has been heard about the safety of life insurance. 'The question is repeatedly asked, “Why is it safe!" A true answer would run somewhat as follows: “life in • surance is safe because its assets represent practically every thing that is sound, productive anl essential in American eco nomic life.” The investment portfolio of a respreeentative life insurance company contains the most varied array of securities it is pos sible to conceive. First of all, there are government bonds. Next there are bonds and stocks—usually preferred—issued by basic industries, industries supplying commodities and services that are in permanent demand. Then there are mortgages on farm and urban property, and large real estate holdings. And, finally, loans on policies, and a geat cash reserve maintained for the purpose of fulfilling insurance contracts in spite of market conditions that may make it inadvisable to dispose of securities. Diversity of risk is the very essence of life insurance’s in vestment program, that demands safety first, profit second. It is a statisical fact that, during years in which failure after failure has occured within almost every industry, large and small, practically every life insurance company has come through with flying colors. MINING PROGRESS GOES ON The mining industry had some tough going even before de pression, labor difficulties, discouraging tax laws- and unfavor able legislation hampered it. Yet mining progress never ends. A glance at the program for the forthcoming convention of the American Institute of Mining and Metallurgical Engineers proves that. New techique, new processes, new inventions, make it pos sible to recover higher grade metals, at lower cost. Much pro gress in this direction has already been achieved—more pro gress is just over the horizon. Ores that were considered worth less a few years ago are now being successfully developed. America is fortunate to possess a progressive mining in dutry—an industry which is as essential to our life in times of peace as in times of war. FIREMEN FACE DANGER OF DUST EXPLOSIONS In the past 19 years there weriei at least 386 dust explisions in connection with the milling, processing and handling of pro ducts of agricultural origin. At least 311 persons were killed, 693 injured and property damaged to the extent of $35,000,0001 —an average of about $90,000 for each exploson. There are 28,000 industrial plants in the United States in which dust explosions are possible. Thlese factories normally employ 1.325,000 persons and manufacture products having an annual value of 10 billion dollars. A number of disastrous explosions have occured during fire-fighting operations. Sometimes these have taken place when firemen attempted to remove contents of bins or other enclosures that contained materials in powdered form. In other eases, the falling of a floor or the dropping of the bottom of storagfl bins forced a dust cloud on the fire. Again, a heavy pressure stream of water striking a pile of powdered material has been known to throw the dust into the flames and bring about an explosion. Another possibility is the chemical reaction between the water and certain types of metallic dust. David J. Price, engineer of the U. S. Bureau of Chemistry and Soils, recommends that the contents of bins in w'hich a fire has occured be thoroughly drenched before removal is attempt ed; that firemen systematically inspect factories to inform themselves on the dust explosion hazard, in order to avoid unnec essary exposure to danger; that a spray is preferable to the heavy pressure of a hose in wetting explosive dusts ston'd in piles; that firemen make a study of dust explosions that have occured during fire-fighting operations; that linemen in indus trial centers acquaint themselves with the dust 'explosion pre vention work of the U. S. Bureau of Chemistry and Soils, mak ing use of the Runeau's publications. In view of the present upward trend in fire losses, as re ported by the National Board of Fire Underwriters, these pre cautions and all others tending to bring about greater fire safe ty aro of the utmost importance. To firemen they may mean life or death. THE UTILITY MESS “The present relations between the government and the utilities are little short, of being a disgrace to the country," wrote Walter Lippman recently, in a syndicated article entitled “The Utility Mess”. Continuing, Mr. Lippman pointed out. that the utilities have made by public officials to f omul ate a policy which would cor rect abuses, fairly regulate the industry in the interest of con sumer and investor, and permit it to develop normally. The new utility policy said, in effect, Utility A must be eliminated, seeks to penali*e and destroy the best-managed companies be cause of the shortcomings of the few. Little or no effort was made by public officials to formulate a policy which would cor rect abuses, fairly regulate the industry in the interest of con sumer and inTaftor, and permit it to develop normally. The new utility policy said, in effect, Utility A must be eliminated. Therefore let us destroy Utilities B, C, I), E, and so on, in order to get rid of A. “A statesman-like and workable! utility policy,"' to quote Mr. Lippman again, “would have been based on the principle of an nlliance with the enlightened members of the industry against the unenlightened members.’' It will be remembered that responsible utility execuiives have been among the first in pointing to the need for regulation to restrain the wild-catters within thjeir industry. And if federal officials showed a will ingness to proceed along reasonable lines, these executives would work wdth them to the ultimate of their energies and abilities. Mr. Lippman is known as a liberal. He is without political connections. He is not a tool of the power-trust., that stock phrase applied to hrow commentators who have the courage of the well-known mien, in all fields, who are. sickened and dis gusted by political hypocrisy as expressed in utility legislation. ALTAVESTA ▲ antLl PHOBLBM* (By Vktetti Iih) Dear Daddy:—It seems so strange that I’ve always got some new thing to bother you about. Do you get tired of read ing about these things that bother me and sometimes worry me! Must I stop asking you about them! If I must, I don’t know what I’ll do. I won't know what to do and how to act, if I can’t ask you. Now. Daddy, this is about shows. A man lectured at our school. He was a very serious looking man and I wonder if he was a preacher because preach ers are so serious that I’m afraid of them. Well, this man said some pictures are good and we can learn from them and some are so bad the companies ought not ba allowed to show them. I' never thought a picture could be bad and could hurt anybody. He said we mustn’t go to see ^he bad pictures, and he con demned the ones we like, detec tive and shooting. They are so funny and so exciting, too. I What do you think about this jDaddy t I wonder if this man is right. Sometimes I think he is, but I like the very pictures he doesn’t want us to go to see. Well, this letter is long enough, now, so I’ll just stop writing. Lovingly—Alta Vesta. SERMONETTE By Artfaar B. KMnov A severe cold has gripped city and country. The frozen snow defies the sun, and the wind is disporting itself in icy blasts. As I look out upon the wintry scene, I am deeply thankful for God’s in-doors. God’s out-of-doors has been extolled in prose and poetry, and justly so but God may be in-doors as well as out-of-doors. True, the shelters of tent and wall are man-made, but the urge to build and furnish them is as truly divine as the creative j force expressed in field and I woods. It would be difficult to iconceive of a home that is not in-doors. Even prehistoric man chose beautified a caves where his wife could nurse her child ren in safety, and where he i could better concentrate as he I began to ponder the meaning |of things and cultivate his inner life. And certainly in modern times there is hardly a home .without God’s in-doors. Nor a church. It is not as easy to worship out-of-doors as in-doors, even though enthus iasts speak rapturously of the temples of nature. To be sure, he burning bush has never ceas h! to be afire with God, and the still small voice is really never still, but few are attuned to the divine as Moses and Elijah were to most of us nature is too distracting to help us think of God. Therefore, man, even in the early periods of his existence, built himself temples, their architecture emblematic of wistful longings and precious traditions, in order to help him concentrate upon the divine. Cherish God’s in-doors. Without it we shall never be able to ap preciate God’s out-of-doors. WHAT MAKES A MAH It is not what a man may own, To what extent he may be known Whither arrear or in the van, Tis character that makes the man! it matters not what one may know How glamorous may be his show, How long or short the human span Tis character that makes the man! It matters not what one may boast Or what obsession claims him most. Nor what his life’s ambitious plan, ’Tis character that makes the man! One ned not yield to circumstance, Opposing, if he’s made advance, If he would conquer these, he can— Tis character that makes the man! ECONOMIC HIGHLIGHTS Happenings That Affect the Din ner Pails, Dividend Checks and ....Tax Bills of Every 'individual Now that stock has finally been taken of industry’s experience in 1935, the business experts are at work forecasting what will happen in 1936 On one point, most experts agree- They forecast that business will be better this year. Famed prognosticator Roger Babson re cently said that, on the average, business will be ten per cent bet ter this year than in 1936 A well-rounded forecast recent ly appeared in Business Week, which has had a good record in peering into the future. Here are some of its predictions, hased on exhaustive surveys and analyses by its experienced staff: Farm Implements—Manufactur ers in the field expect the best year in their history. Agriculture—B o t h production and income will be larger than in 1935, despite the death of the A. A-A. at the hands of the Supreme Court Construction—Last year resi dential construction about doubled 1934 total. It is doubtful if such improvement will occur this year, though it seems inevitable that a gain wil be made. The construc tion business in general was hard est hit of any industry during the depresion, and practically reached the vanishing point. It is slowly recovering. UJectnc Power—This industry reached a new all-time record for power output last year. New rec ords will be established this year, and will be reflected in wide-spread building and expansion. The indus try’s building budget for the year will involve the spending of more than $300,000,000, and some think this figure must be raised. Before 1929, the industry was spending around $1,000,000,000 annually, say this figure would again be and spokesmen for the utilities say this figure would again be reached or passed if it were free from “political attack,” Motors—This industry was the bellweather of the recovery move ment during 1934-1935. It will con tinue to go places this year—mak ers are already laying ambitious plans for the introduction of 1937 model cars. Machine tool makers wil prosper as a consequence, all j car manufacturers will have to I spend heavily for retooling pro grams. Steel—Will be heavy spender during the year, as it modernizes and extends plant capacity. Railroads—'Here is another in dustry which has started an impor tant modernization program, plans to continue it into 1936. Air-con ditioning of passenger trains is a big item, and will account for a substantial percentage of railroad expansion budgets. And the trend toward strean>lining trains, elec tric, diesel and steam, is signifi cant. Textiles—Forecast is that there will be a greater consumption of cotton, rayon and silk than there was in 1935, with a decline in wool consumption. Aviation—Has big plans for 1936. Planes will be bigger fast er safer. International air service will be extended and improved. The industry hopes to get a steadily in creasing share of the nation’s pas senger traffic. Finance—E x p e r ts anticipate more new security issues in 1936 than in 1935, with refunding issues dominating the capital markets. In general, the outlook for industrial profit is said to be steadily im proving despite new and higher taxes. Prices—General wholesale level for 1936 is forecast at about ten per cent over 1935, declines will probably be registered in food prices. There you have 1936 in a nut shell, as the best guessers see it. They make nvany errors—but they are more often right than wrong. Every indication is that the year will be the best since 1929, in spite of the old bogey of a general elec tion year. CONSTRUCTION OR DESTRUCTION As these terms are antithetic al in definition, so are they in influence. The progress of con struction is slow and its pro gress laborious and tedious. Great projects, often require years for completion. Construc tive progress challanges the best in us and requires the most artful anl the most persistent efforts. This truth applies to governmental development, to economic evolution, and to PROVERBS AND PARABLES by A- B. ICANN for The Literary Service Bureau Many people, especially many colored people are afraid of the night air. They imagine it ia more dangerous than the day air. A very thoughful Negro minister gave us the epigram, “It is not the night air, but the night." | The superstitution is foolish. How could night air be more hurtful than day airt If any think the night air would be less dangerous, for there is lesa of dangerous germ-laden dust in the air at night. But it is the night that is so seriously deterimental. This in cludes lateness with of nec essary sleep; abusing the stom ach by eating foods difficult of digestion effect of drinking, smoking and excessive dancing that usually are connected with night parties; for the poor, ex posure to cold waiting for street cars; and there are oth er things which enter into the menace of the night. Giving the matter due consideration and viewing it with unbiased mind, doubtless thousands will accept as true the aphorism, “It is not the night air, but the night.” MAXIE MILLER WRITES 1 (For tfco LttoM