THE OMAHA GUIDE Published Every Saturday at 2418-20 Grant 9t. Omaha, Nebraska Phone WEbster 1517 Entered as Second Class Matter March 15, 1927, at the Post Office at Omaha, Nebr., under Act of Cotigress of March 3, 1879. TERMS OF SUBSCRIPTION $2.00 PERYKAR All News Copy of Chrurches and add Organi zations must be in our oSfice not later than 5:00 p. m. Monday for curren issue. All Adver tising Copy or Paid Articles not later than Wednesday noon, proceeding date of issue, to insure publication. _ Race prejudice must go. The Fatherhood of God and the Brotherhood of Man must prevail. These are the only principles whil will stand the acid test of good. EDITORIALS FOUND ATIQN STONE OF CREDIT Today we heax much of credit extension as vital in the economic ^cheme of things, in te light of that some statistics found in a re cent address by l’aul B. Sommers, retiring president of the iNiational Board of Fire Under writers are of exceptional interest. Tho stock fire insurance industry carries $174,558,886 of its aspe.s in cash most of wliich is on deposit in bands. It has been conserva tivey estimated that each dollar on deposit which is reasonably certain to remain there for a year or more, is the foundation of $10 in credit. On this basis, ahe cast, holdings of the fire insurance companies make possible credit to the tune of $1 >755,588,860—credit, which is constantly available to the productive industries of the nation and which creates wealth* opportunities, purchasing power and employment. So much for that phase of the industry's direct contribution of the credit facilities of the nation. Of still greater importance is the fact that without fire insurance, credit as we know could not exist. A\ hat bank or indi\ idu_ al would carry a mortgage on a home, if there wTero no insurance policy to indemnify him in case of its destruction by fire? What manu facturer could extend credit to a merchant if tftiie stock of goods was not indemnified against loss? Who could rifjk an investment in ships, trucks, or any other form of trans portation wLhout a fire insurance policy to stand between him and ruin? Fire insurance is the very foundation stone of credit’. It performs a national eco nomic service whose value cannot bp exag gerated. To this extent, the great institu tion of fire insurance makes all industry and all investment possible. _nftn NO INDUSTRY HAS DONE MORE Most of the talk about the “high cost of electricity” comes from political sources. And it would seem reasonable to suggest to politi cians that they take a look at the cost of their own ‘ ‘ business ’ ’—government. During 1937 according to Frank E. Fowle past president; ol the Western Society of En gineers, the. nation’s total bill for electric pow er service was $2,200000,000. But that isn’t a drop in the bucket to wlhjat the federal govern ment alone, aside from Other units of govern ment, collects annually. W hat taxes consumed about 17 per cent more than the combined cost of rail power and telephone service for the nation. Where the average total taxes per fa mily run to about $380 a year, the average domestic power bill copies to around $36. in cluding exorbitant taxea. Furthermore, while the cost of govern ment; has soared toward the financial strata sphere in late years, the cost of electricity in spite of a general upward trend in price levels' and in spite of materially increased la bor, tax and material costs—has gone steadily downward. In 1937 large industrial power and light users paid 22 pe,r cent less for a, given amount of electricity than in 1936 small indus trial power and light paid 24 per cent less and. the housiehohlers, benefiting from the largest, reductions of all, paid 37 percent less. Pages of smilar statitics could he cited. And they all lead to hut one conclusion: that no industry cheap political claptrap to the contrary, has done more to improve i1^ standards of service and reduce its cost ,o the consumer than tjhe electric industry. -oOo THE HEART OF THE RAILROAD PROBLEM The Rutland, Vermont, Herald goes right straight to the heart of the railroad problems when it says: “If the government would sim plify its contracts witlb the railroads, relax the rigors and constriction of regulation, equalize or reduce taxation, permit reasonable rates for first class service, and, so far a possible, bring all transportation under the same rules and standards, it would have done all that any public agency coull do toward amending a very difficult situation.” The railroads ask no favors, no special privileges. They simply ask that they be treat, ed exactly as are other agencies of transpor tation—and they be permittd to operate on a sound business basis So far tikis year railroad mcome has been about eighty per cent under 1937. The rate of return, figured on an annual basis, has been approximately one half of one per cent of the industry’s gigantic investment. In other words the railroads as a whole are earning next to nothin.. Some lines are not even making e_ nough to pay their taxes much less their bond interest. And a great many are experiencing serious operating losses which, unless checked must soon result in additional receiverships. There is the usual camouflage talk about scaling down the industry's capital structure, consolidating lines, and similar palliatives. But facts show the fallacy of sudh proposals in the present cris’s. First and foremost, the indus try must be given an adequate rate structure. Second, it must be permitted to further reduce operating costs where possible. Third, it must bo given equality of legislative treatment with its competitors. Tlrnn, and only then, can a real start be made toward solving the problem —and toward an industry which is responsL blc, direct or indirectly for millions of jobs, for billions in purchasing power, for hundred of millions of taxes, and for the existence of scores of other industries which supply it with services and materials. _nHn_ v ^ V DON’T TAKE IT FOR GRANTED The average person takes railroad service for granted because he Ivis always been able to get it when lie wanted it. He cain’t con ceive that anything could happen to the rail roads that would interfere with the service he is used to. He will use motor transportation over pub licly bulit highways; he will use boat trans portation favored with publicly buitt and maintained facilities; he will use airplane transportatoin that depends for terminal faci lities upon publicly built airports, and he will enjoy the public highways in his private auto mobile—bue, when storms block the roads; when fogs stop the airplanes, and when inland waterways and s.eamship lines are tjed up, he turns to the railroads for transportation as naturally as he puts his window up at night for ventilation. The fact that the railroad' existence is threatened by tvery known form of subsidized and unregulated transportation never enters his head. He overlooks the fact that, unlike their competitors, the railroads are so string ently regulated in every phase of their activ ity, even to the management of their propert ies, that the only thing they are left free to do without restriction, is to pay their enormous tax bills to ei.y, county, state and federal gov ernments. The average citizen who runs a meat mar ket, clothing store, sawmill or farm, would throw up his handls in horror if it were sug gested that 48 state legislatures, our national House of Representative^ atxd United States Senate, the Interstate Commerce Commission and upwards of 48 Estate railroad or similar regulatory bodies, were to take over the func tions of management of his business, as they have the railroads—set the prices he could charge for lidf{ wares; limit his profit, if he was able to make any, to a starvation figure, and prevent him from discontinuing unprof itable oprations if he saw fit. The average citizen would kick like u steer at such on arrangement, hut lie calmly watches merchants, lawyers, doctors and what not who are elected to public office, proceed to take over the management of the railroads without a dollar of investment on their part, without, in most cases, the slightest know ledge of railroad operations, and without the public and the investment^ of millions of cit izens in railroad property. The net result to day, after a generation of su,dh. political man agement of Ijie railroads, is that they face bankruptcy. The average citizen does not realize this. Ilia railroad service ,is still uninterrupted. The railroad worker won’t believe that such a catastrophe could happen. But unless our political appointiees in regulatory positions, are allowed more liberty in running the rail roads, we will find ourselves without railroad transportation such we have been used to, or with some form of government ownership that will waddle us with debt* that will make the present federal dificit look like chicken feed. Railroad employes will find themselves working for the government and, instead of dealing wit)h railroad managements ,they will have to deal with congress! and »ta,te legisla tures, thus hamstringing their freedom to strike or negotiate regarding grievances— they will find th ran selves on a par with sailors soldiers, and postdl employes in .securing con« sidcra.ion—Their hands will, be tied—you don’t strike against the government. It’s high time the average citizen and worker not only thought about the railroads situation, but demanded that practical relief be given them, and that the destructive type of one sided regulation to which they have been subjected, be dhanged to more honest and fair methods. _n THE “UNOUJNbClOUb” AESONIST -OUO The crime of arson is universally condem ned. The deliberate setting of lire can have no justification in any ease, and the person committing it is properly given severe punish, incut when apprehended It would be a fine tiling for the country if some of that condemnation were extended to the man who causes fire because of his own ignorance, carelessness or stupidity. For the grim harvest reaped by the “unconscious ar sonist” is definitely] greater and more a frail excuse indeed when lives and property are de. stroyed. Certainly the man who carelessly discards smoking materials in dry woods that are ready to explode into flame ;U the touch of a spark is deserving of little public sympathy. Neither is the man who want only permits hazards to exist on Ins property and endangers the pro perty of everyone else in the community. In some European countries, notably France, the law provide* that if a fire starts on anyone’s property through the fault or negligence of the owner, lit? is financially re sponsible for the damage to other property. There’s small chance of passing such a law here—but the principle it represents is worth thinking about. Most of tlhe hazards that cause firo can be easily eliminated. And the argu ment. that many of us don 't recognize hazards when we see them, isn’t valid, ignorance of firo dangers, lige ignorance of the law, should not constitute an excuse. Are you an “unconscious arsonist?” Its easy to say “no”—but can you be certain that's the right answer? _nHn_ TAX NIGHTMARE COMING .._Thirteen months from now, according to slide rule cacu'lations of a government econo, mist, the national debt of the federal govern ment will l>e in, excess of 43 billion dollars— double what it waq five years ago. For the fiscal year, 1939 beginning July 1, next con. gress has authorized the expenditure of 12.5 billions, 6 billion of which will be “deficit fi nanced. ” , Breaking this vast sum, it is, found that during fiscal 1939 the federal government will spend $1,027,397,250 a month ;4 $34,246 575 every da pavings of mass dis tribution are responsible for raising the av erage standard of living. It is, incredible that there are men Tiohling responsible positions in government who would destroy this industry at an unknagined cost to workers, consu mers, and to producer^ of all kinds. -oOo COMMON SENSE -0O0 A good substiitude for the term “agricul tural markerting cooperation” would lie ‘‘com mon sense cooperation.” Cooperation is simply sound business prac tice on the part of the farmer. The growth and progress of American industry was largely tiho result ol tjhe application of the cooperative principle. 1 lie growth of American agricul ture will be largely the result of the same fac tor tine farmer, standing alone can have m> voice in determining markets, prices agricul tural policies or other vital -matters. Ten thou sand farmers, represented by an aggressive, responsible organization, can stand on their own feet and fight tJaeir own battles. That’s *,common sense operation.” -oOo ARE YOU A LAMB? The argument that government-owned bu siness and privately owned business can exist together in harmony may sound well—but in this practical world, it won't stand analysis, when highly taxed private business is forced to feed tax_exeinpt government business. Every time govrnment goes into one busi ness it means that tomorrow govenment will go into another business. The racapacity of politicians is notorious. Give them inch and they take a mile, until private property is eliminated. . In stoty, the lion and the lamb should lie side by side. In practice, the lion eats the lamb. And that’s exatly what government business does to private business. We can have a socialistic naton, or we can have a nation based on free enterprise. We can’t have both.