f editorials I
C THE OMAHA GUIDE X
X All News Copy of Churches and Organiz- Q
X ations must be in our office not later than X
U 6:00 p. m. Monday for current issue. All U
A Advertising Copy or paid articles not later M
X than W-ednesday noon, preceeding date of A
U issue, to insure publication. X
x Race prejudice must go. The Fatherhood A
y of God and the Brotherhood of Man must pre- U
Q vail. These are the only principles which will J
X stand the acid test of time. Q
A James H. Williams, James E Seay, Linotype Q
A Operators and Pressmen A
y Paul Barnett, Foreman _ V
X Published every Saturday at 2418-20 Grant A
y Street, Omaha, Nebraska— Phone WE. i51> V
{)Entered a- 2nd Class Matter March 15, 1927 N
A at the Post Office at Omaha, Nebr., under Q
V Act of Congress of March 3, 1879. X
APPLES TO THE FORE
An apple a day may not always
keep the doctor away—but it is a
certainty that apples are among the
most delectable and healthful of
fruits. And this year, due to the or
ganized efforts of growers and mass
distributors, the consuming public is
going to be treated to high quality
apples at very reasonable prices.
The National Apple Institute,
meeting last August, approved a plan
whereby low-grade fruit will be held
off the market so far as possible; the
choicest fruit will be moved into con
sumption at the beginning of the
season; plenty of first-class fruit will
be always available information con
cerning the various varieties of ap-|
pies and their best uses will be widely
disseminated.
However, as any producer knows,
just putting a good product on the
market in the normal way of business
doesn’t necessarily assure satisfactory
sales. And the apple producers today
face a very serious problem. The 1939
commercial crop will reach some 103,
000,000 bushels, as against a 1928-37
average of 96,000,000. Increased for
eign production, plus the chaotic
conditions created' in Europe by war,
have complicated the export situation.
As a result, the producers realized
that extraordinary sales stimulus was
necessary if they were to move the
crop.
As in past apple crises, they con
«lted with the organized chain stores
the nation. Upshot is a nationwide
apple sale, which took place during—
Oct. 26 to Nov. 4. And December 7th
to 16th and February 1th to 10th.
During thc^e periods the thousands
of cooperating stores will feature ap
ples, advertising apples, talk apples.—
and, going by past precedent, sell ap
ples on a tremendous scale.
What this means to the producers
of a major farm crop is obvious. They
are scattered throughout the country,
and the welfare of many communities
depends upon their finding a good
markt for their fine crops. And it
means much to the consuming public
as well, which gets the best of fruit at
reasonable prices. A producer consu
mer campaign such as this marks one
of those happy events from which all
concerned benefit.
-oOo
SAVE DEMOCRACY—AT HOME
Apparently a great many people
never become alarmed about Demo
cracy until they hear the crack of
rifles. During the last decade there
has been a studied, deliberate attempt
to socialize the electric light industry
in the U. S. Government ownership is
a definite Federal policy. Every pos
sible effort has been made to extend
this policy. Publicly subsidized electric
plants dot the country from coast to
coast, for which the government (the
people) has obligated itself for nearly
$2,000,000,000 of borrowed money to
date. Each plant is a threat to free
•nterprise, and undermines demo
» •
cracy—yet public opposition has been
dormant.
If government would take over the
electric utility industry and then stop,
the average citizen might not have
undue cause to worry. Unfortunately
such would n:t be the case. Expanding
bureaucracy never ha!;ts of its own
will. If given the opportunity it will
gradually extinguish the institution of
private ownership, and when that
has been accomplished, individual li
berty and’ repress ivo government
will follow. GoverniiH *t ownership
and free enterprise cannot live peace
ably side by side.
During the past decade in the
United States, the public ownership
versus free enterprise battle has rag
ed with ever increasing intensity.
There has been no gunfire, but carry
ing out the principle involved, namely
government domination of the indivi
dual, has strewn fields of battle with
dead the world over.
-oOo
BUSINESS CAN HELP ITSELF
Business men have a vital, interest
in rehabilitation of tha railroads, for
wholly selfish reasons, if no other. The
railroad industry is mainstay of the
durable gojuls industries which are
the backbone of a stable economy in
this country.
According to tlie Association oi
American Railroads: “In the eight
year period from 1923 through 1930
for instance, the total purchases by
the railroads of materials used in im
proving plant and equipment amount
ed to six and three quarter billion
dollars. This is apart frPm $11,000,
000,000 paid out in the same period for
expendable supplies, including every
thing from coal to paper clips.” But
from the years 1931 through 1938,
plant and equipment spending totaled
only $2,000,000,000 and purchases of
expendable supplies but $5,000,000,
000. In other words, total railroad ex
penditures in the latter periods were
nearly $11,000,000,000 less than during
the former period.
The loss of this $11,000,000,000
meant industrial retrenchment, unem
ployment and reduced payrolls from
-—--— . .4 — ———---— ... ....
Maine to California. It adversely af
fected the cash drawers of every en
terprise in the country. It wasn’t spent
because railroad earnings have been
so low that it wasn’t there 15 spend—
due largely—to subsidized railroad
competition, and the existence of
chaotic transportation regulation
which is inequitable and out of date.
In the past few waeks the railroads
have vividly demonstrated their desire
t)o go ahead. In order to make certain
that there shall be no failure of trans
portation in these days of world crises
thoy are putting tremendous quani
ties of additional equipment into ser
vice. They are spending money for
this purpose that they have not yet
earned, because of their strong reali
zati 'n of their obligation to the in
dustries, people of the nation. But pro
gress of this kind cannot be carried
on indefinitely under an unsound
transportation policy. It is high time
for business men in all fields to think
about their own stake in a prosperous
railroad industry.
-0O0
DISHONEST “YARDSTICK”
Up in the Pacific Northwest there
is a growing note of caution in news
paper comment concerning the forma
tion of public utility districts to use
the tax subsidized power from Bonne
ville and Grand Coulee dams.
The editors, along with the public
are realizing the dishonesty of power
“yardsticks” which take no notice of
cost accounting methods forced by
law on the private utilities. And closer
to home still, they are thinking hard
about what is going to happen to all
other taxpayers of the gigantic taxes
the private companies pay are largely
lost to counties, cities and state, by
tax and capital subsidies given to
public plants.
The Federal plants such as Bon
neville and Grand Coulee pay no state
or local taxes and are exempt from
Federal taxation. How can they fur
nish any kind of a fair “yardstick?”
_ _nOn ...
CAPITOL IN THE STORM CELLAR
Some forty years ago Senator
Burton wrote a little book entitled
“Crises and Depressions.” In that
DARK LAUGHTER 01’ Harrington
Now B.otsie, when you took that telephone message for me a while ago, did
that Chick say fer me to come over ’cause her old man wuz out
or not to come over ’cause he wuzn’t out!
book he said: “The central fact in all
depressions, as well as in those crises
are due to derangements in its condi
tion which, for the m:st part assume
the form of waste or excessive loss
of capital, or its absorption to an ex
ceptional degree, in enterprises not
immediately remunerative*.”
That is as sound as on the day it
was written. And, if anything, is of
more vital significance to us now than
it was two generations ago. The con
dition of capital affects every business
ties. We can damn capital all we like—
every man’s livelihood and opportuni
we can harass and chain it. But it is
capital which makes our factories
hum and builds our homes and pr?
vides the wages which pay butcher,
baker and candlestick maker. And it
is lack of active capital which makes
and prolongs depression.
We talk about capital being on a
strike in this nation today. No des
cription could be less exact. What has
happened is that capital has been
forced into channels “not immediately
remunerative.” Government policy
has required billions of bank deposits
—the normal source of capital for in
dustry and commerce—t)o be tied up
in government securities, ar.U to b *
used for non-productive purposes.
“Risk capital” has been made practi
cally extinct by suicidal tax and regu
latory laws which take most of the
profit incentive out of legitimate spec
ulation. And don’t forget that all en
terprises in their early stages are
speculations of the past came the
great employing “conservative” in
dustries of t:day.
Until artificial and dangerous
restraints on capital are removed and
a man who risks his money is allowed
to earn a good profit if he can, capital
is going to stay in the storm cellar.
-0O0—
THE FIRE INSURANCE DOLLAR
Many a fire insurance policyhold
ers who has never sustained a loss
must have Wondered what happened
to his premium dollars. In a recent
talk, W. E. Mallalieu, General Mana
ger of the National Board of Fire
Underwriters, tells the story.
Taking the records of 332 large
fire companies for 1938, it is found
that a little more than 43 cents out of
each premium dollar earned went to
pay losses. Three cents was consumed
by the expense of adjustment.
About 20 cents out of this aver
age dollar was needed to pay manage
ment expenses. Of this 20 cents, seven
cents went for salaries, about 5 cents
for miscellaneous items, one cent for
rent, and 7 cents for field supervision
The tax collector doesn’t over
look fire insurance any more than he
does another business. Taxes of vari
ous sorts five cents of the premium
dollar.
I
lhis accounts tor about 71 cents.
A quarter went to the agent who sold
the insurance—and any policyholder
who has had need of agency hire. The
remainder, loss than 5 per cent
represents the modest profits earned
by the companies.
Few businesses spend their revenue
in a more beneficial manner than fire
insurance. Take that item of five cents
for miscellaneous costs, for instance.
This pays for all the oxpenee of of
maintaining inspection, rating
bureaus and other organizations, and
for printing, advertising, postage,
maps, surveys, etc. It pays for J'
industry’s continuous wa>*
arson, for surveying m*
supplies, for insnr
Thte fire precaui
largely responsk
average fire insu.
$1.17 in 1907 to 67
there’s your insurant