' Page Six
LA GRANDE EVENING OBSERVEft, LA GRANDE, ORE.
Wednesday, Juno 22, 1932
FINANCIAL SURVEY
BY NATION AL CITY
BANK, NEW YORK
(
(Continued from Pngo Five)
Looking East on Adams Avenue
In It, but the economic and political
InUtnwUi in. the area diverge and they
have found no basis for tmraement
upon helpful action, tho London con
ference in April hfivliiB adjourned
wUhout u date for ruconvenliiK- Nor
liuvo the many proposals for economic
union made proyriiss uiimjdb tho s La Its
themselves. ,
It will bo recognized that tho
greatest trouble of the succession
states Is the world depression, and
that It) true of the decline In all trade,
but there la a lesson ot the effect
of past and present trade interfer
ence li bringing on and Intensifying
tho depression. It is often said that
tariffs themselves are not objection
able, but only tariff chanxes. since
trado will adjust itself to tariffs and
will o along If not required con
stantly to make fresh adjustments, 1
But this argument overlooks the fact
that where trade obstructions are
employed to seek advantage there
will always be others In reprisal, and
while rivalry between nations is ex-
pressed in tariffs there is no reason
to believe that a stato of rest will
over bo reached. i
, The prospect for sweeping reforms1
ill world tariffs is not a hopeful one, I
but Improvement may bejiln by re
gional agreements and manifestly the
Danublau area is a lot: leal pluco to
begin.
Neci'KKlly Tor 'J'rnde
It ,1s a matter of grave concern
that the tariff situation should have
grown worse In a time when trade Is
so little able to bear tho burden of
tariffs and when the fullest possible
llow of trado was never ho badly
needed. The nations and people of ,
different nations have obligations to
each other which reuutru the trans
fer of goods between them, and when
lim piiototrrapii, taken irom the La Grande hotel, shows the full length of the main business section of Adams Avenue.
mis uiuiuu oi.iiuM i usi. uince, hiiitoiiihicu ny Deautiiui trees, stands in the light lo
street and Adams avenue.
foreground, on the corner of Fourth
i
dlllonfi Klvo evidence that the bene- to sunnlcmcnt nrlvntn rrnrlll. in ....
a iv .luiioici ui BU-.H m oimLrucuru nwt mi tiny one uro illusory to mo ryniK sucn loans, in order Unit prl
10 drain of cold mid the cnnserjiient Imt decree. Blncn to nil tlio otfoce In! viito fulidH mlslit bo left free for uo
currency depreclntlon mid monetary , Imiiovcrlshmont, In tho customary manner. In num-
dlsorder nre correajiondliiBly nioro VUn i(rniiii4 croim Inslnncea the hanks hnve agreed
ncvoro. It would bo to the udvantauo Th0 continued low volume of rail-I " shrc burden by (jrantlug ro
of the creditor nations If they would rolid truffle since tho first of tho ' uowuls to a portion of the loan,
rccomilzo this phase of the situation. y(,r lmH nrinnHiri,.,! the flnanolal ! A number of these loans by the
Cirants of credit from creditor lo pro,lem of tho railroads, cnusliu tt ! n- '' c- were "lo on tlio condition
debtor tuuntrles would go far to decline In revenue that has moro ; tlmt tlley would be repaid by the.
keeping trade In equilibrium, but than offset tlio benefits or the omer-! railroad credit corporation, which
present conditions do not permit this Knncy increase In freight rates cf-! would take over the loans as rapidly
solution. International lending Is fc(!tivo Jan. 1 and the 10 per cent ' 118 funtla were received from the
recognized by all authorities as es- ,, reduction effectlvo Feb. 1. As- I fooling of tho emergency rate ln
sentlal in international trado, and isicm,.0 (n nveellng their ohllgutlons ! .creiiscn. This latter corporation re
It was the opinion of tho eminent n be(m required ,y a nuinbcr of ported that up to April 30, 1032 It
economists who prepared tho Mao- roads, and lias been supplied by tho l,l,tl """' loans of 4,lna,5K! and
M ilan report that "the debtor conn- reconstruction finance corporation 1 authorized further loans of $14,403,
trles probably require amongst them w,eh up ui Miy a7 lute annroved ' T'TI- V,"K " Uitul of $18,081,11,0.
now loans from tho creditor conn- loans aggregating $107,307,043 to 3D?''Oalis maclo by tho railroads to ono
trlen In the aggregate of not less than roads. j another are thus an onset to the
400,000.000 per annum In normal, Hnroads represent tho largest Amer- 'oniw mndo by the B. P. C, and the
circumstances, unless the creditor lean Industry and Investors hold their t1"" uinount of assistance extended
countries Increase tholr Imports rein- obligations more widely than any oth- I government funds Is probably less
tlyoly to their exports as compared r securities except thoso of tho S l,mn oommonly supposed. While the
With what they were before tho com- united stales Kovornmfirfl, There r pooled proceeds from the Increased
nienecincut of tl)o world depression." were over 840,000 shareholders listed 1 nilt'" n Included as Income in the
In brief, creditor countries must on tlio stock registry books of the t '"Ports of tho Individual curriers, they
cither lend or buy. I rullrouds ut tile end of 1020, and since I,re "o uvallablo In the form of cash
With all Klio progress mndo In fa- that tlmo the number Is believed to bo l"'l out In meeting expenses
Cillty of tronsportatlon, communlcu-, to havo been Increased substantially. 1 ' th0 "m1 but are loanctl when
Hon and physical conduct of busl-, of tho $11,040,000,000 bonds und !'ll " the companies not earning
liess. surely the nodes of the na- ..niu .,,..,..., . fixed I'lmrnna "
tlona am rcsoonslblo that the trade "7 .."..""""'" 5 r.. ",""?s""""l
l.twnn thn I..,. ,lr..,l ff l ,.,l...f " " " '.r "" ' V'"" ccnl
... . .... ,8 UWI)eu oy mo banks, insurance
,,l0"y r nr0 ri """J- companies und other institutions and
Those who havo- advocated each thus represenls the savings, lnvcst-
" y "? menis and Insurance ot the Amer -
?,? ., W ! Bh nf' nlt can people. For this : reason, the
JefrS "L",1? ",Cml r";bc "g, """ Wcy ste.s whlclt have been
Clly..' "V'".tf '.'.""T1" lV u'km to' maintain the solvency of
n L.?,r ' " 110 "ull'("',"o', the railroads, und tho further nieas.
' !,, "f, , '"'c tl,at '"vo been proposed to ro-
ti, i0,"001,1 ' 1110 U.mP? 9 storn th0 I'ulustry to a moro pros
thai tho nations shall accept their parous state, are nmttors of tho most
common responslb my for the sltua- vHal public Interest.
Hon. and deal with It In ft spirit ot ,,ws liv , iteeanslriiillon
in h.annih, i, ' " im.wvwn financial
4(ifIucnclnK thctr pollcloH tu a deHroe
nuvor before known, and pieHont con-
burdens when other means of trans
portation arc available. The use of
highwuys for truck transportation lias
IU manifest convenience, but we per
ceive no constitutional ground for
denying to the stnto the right to fos
ter u fair distribution of traffic to
the end that all necessary facilities
should be maintained und that the
public should not be Inconvenienced
by Inordinate uses of Us highwuys
for purposes of guln.
Tlieso two decisions will go for to
clarify tho present confusion now ex
isting among the various state legis
latures and In the stuto courts ns to
tho constitutionality of various laws
now in existence or contemplated,
Hint have us their ulm the regulation
of tho large anvmut of motor truck
ing that base become a problem in
virtually every community.
Truck Operation by the ItallriHids
Homo of tho railroads hnve already
established pickup and delivery serv
ice by trucks, adding the charges
therefor to the station to Btntlon rule,
und operate motor truck lines in
tho case of relatively short hauls und
high priced or perishable commod
Itleri. coordinating this service with
their regular long haul business.
Ir. connection with these services.
the suggestion was made by Mr. F.
Repeal of the "recapture clause"
of the Transportation Act of 1930
so as to permit the railroads to build
tip their surplus and reserves dur
ing years of good earnings.
Substitution for the nnesent nilA
of raljB-maklng, which Is based on
property valuations as Of 1013 with
adjustments for additions and de
preciation and has proven unwork
able, of a "rule of reason" based on
the publlo need of adequate trans
portation service and the need of rev
enue sufficient to enable the carriers,
under honest, economical and effi
cient management, to provide such
service.
A moro liberal attitude on the part
of tho government toward consolida
tion on a broad scale of the largo
numlier of separate railroads into a
smaller number of strong systems.
Relief from the heavy assessments
for non-productive expenditures such
as grade-crossing elimination. These
projects .yield no additional revenue
to the railroads, and U they are con
sidered desirable or necessary for the
public safety their cost moght proper
ly be borne by the states and com
munities which are directly benefited.
Reducing the loss on passenger
servlco by a further reduction In the
number of high-speed luxury trains
by alt of the competing lines.
.,"?u,n.0'Vtal.,r yong with the ran- pany's 1031 annual report that tho I malnlng palsengcr trains and removl
rf....i . .V, primarily to tho . Hallway Express agency, which isiing the excess fares so as to regain
amount nt l A,l.t"f'ufh, ta "ubstuutlul ! owned by the railroads, would be on patronage being lost to buses and
h Kiiu... I i. i .. . ,' - ""- iKi--i;y uj iinnuio an less-man- private automobiles,
w mubui urn imm ireigut lor tne rnllroaas as
trucks nnd buses, tills lias not been n whole, to operate trucks on publlo
tho major factor In tho decline slnco highways where they are more effl
1020. In tlio 1031 annuul report of.clent and economical, and to handle
tho Southern Hallway company, for tho freight transfer and forwarding
cxumplu, It was stated that In an cf-I business In largo cities nnd in term
fort to explain its decline in freight I Inula. A large volume of mlscellnn
revonueH in 11)31 below tho annual ebun freight is now being collected
avorago of tho mlocedlnir elirht veins bv ftiui,,,n,,r. ,, ,,,,.. ,i,,i.
an analysis was (nude by Its traffic sollduto the freight lnto'carload lots
department as to the source of reve-; of tho different classes, und thus
itlrclliig ( IninnliiL' fiiiuliliiiiia
The present low level of traffic nnd' W. Sargent, president of the Chicago
.runups docs not indicate anything Sz Northwestern railway, In that com
The advances of government funds
to tho railroads through the recon
struction linunco corporation nnrfnuo miring tlio jicrlod. This showed secure the benefit of the oarload rotes.
that uppruxliuutclv 70 nor cent of the Thrso nnmiiiiiiinu ,. ,,rii.,. ...
loss could he assigned to reduced nnd nro not undeil regulation by the
a.ltlvity In production ujid trade, ( I. C. C, so thnt they are free to take
with tho remaining 30 per cent due : or reject any kind of freight they
to tlio competition of new ngencles desire, to cut rates, grant rebates
Bilch as trucks, waterways nnd pipe and discriminate between shippers'
lines. , all of which the v,,n,-,,.,,in .en
closing of numerous local stations.
which may have been necessary in
tho days of dirt roads and the horse
or buggy but now cause needless de
lay ana expense in train operation.
Abandonment of unprofitable
branch lines for tho same reason. 1
Where several railroads serve the I
territory, some cooperative arrange-1
ment should bo worked out for aban
doning part of tlio branch mileage.
Scrapping of obsolete rolling stock,
notably locomotives, and its replace- I
ment with up-to-date eaulnment in 1
order to reduce the present heavy
repair and maintenance expenses.
Pooling of ownership of private re-
iiiKirukor cars, lanK cars, etc., and
sometlnteti thought of as representing
subsidies or donations, but such a'
view Is entirely erroneous. livery loan
requires the submission of mi applica
tion Betting forth In great detail tho
llnancliil comlittuii of the company,
tho purpose for which tho loan is
desired, the collateral security offer-1
- ' i.t......u.i ..n w t .j ...,.,oiiuai uuiiiik wiu tiuiircssinii irom uoing. Mir Sargent proposes
ternvi and conditions by tho Inter-. for tho reason that drivers may ho that tlio Railway Express aconcv
I stale commerce commission In nddl- secured at low wages und there nro should be established as n coiisoll-
Hon to tho R. F. C. 81x per cent , no effective regulations as to length dutor nnd forwarder of freight nt the
Interest is charged on these loans, j of tlmo on duty, weight of load car- earliest possible time and cites tho
I which Is n nnich higher rato than ; rled or rates charged. This condition following reasons:
. that which tho government Is paying places tlio railroads at a decided dls- I ( 1 ) Tho Railway Express agency
I fcr Ita own luiids. In the case of a i advantage. Inasmuch as they arc being national In Its oucrulions could
ir.,,;. ' !,,VU.'.B. , ".. "y-1 1 ,LV.lntVl "' "'""Kt'eiy conceivable, ccnipcte mole successfully with the ' thereby reducing bonded Indebted-
ronds upon H,r,r"relurn from fed- ! correct "tills "alulaUon dl. m
oral control to ,rlvate operation, tho , for regulation of trucks so as to rallrou 1. V "K"vmual Lh " hna"i?, ""
, Iannis totaling approximately $351,-
uou.otHl were inade to the railroads,
of which $317,000,000 was repaid on
account of principal and $1111.000.000
In hiliM-est. leaving only $34,000,000
pi'liU'lpul amount still outstanding.
In tho mutter of making loans by
the It. I'. C. to the railroads for tho
puriioHo of mooting maturing bank
loans there has been u certain amount
l needless discussion duo lo n mis-
Truck competition lias been great- mon carriers ore strictly prohibited i possibly of all cars, under a single
wijiuidmiu w oc owned oy cne rail
roads Jointly. Under suoh an ar
rangement, a smaller number of oars
would be required for the railroads
ns a whole.
Repurchasing of outstanding ob
ligations which nre selling In the
ojion market at heavy discounts, 1
der which they compete with tho press agency, competition would not ! Hon of other ni.tf.miinni,iinM.,
being enacted in j only bo less severe, but the expense ' having a prior lien.
railroads Is now
vuiiuus suncs. I ill opcral on Would be much l. ll.n I M'l,,. f.....i., ,
Oil May 23 the United States sn- If tho Individual curriers entered this ore that might be mentioned show
promo cour handed down two In,- j field separately. what the .allrod7aro dolni To .Z2
?. , , WT" , " m u woul" reoov'"' to 1,10 rnll- their ijolicies to the changing eco-I
volvet! the consututlonnllly of ,v law ! road. a good deal of traffic where tho noinlo needs of the counter nnd at !
u.u tuui wi i. uimuiig uio : Kirwaruer m using trucks instead of , tho same tlmje maintain their sol
louds and size ot common-carrier i rail service. . voncv To i Z., IV. in
contnict-carrlcr and private trucks, I 4 The added eS,,o,e l' , b.mJ IZJJ,?, '?.t.'"t.. e..1.lro.tls
the stale of way Express agency with Its nrosont nurd, for than i- .. m.
leugu . organization would naturally ho less except nericiiltiiM. n m.i n.
Lucjtjage and
Leather (Hoods
Well Ihiill and
Stylish
GRAVE
HARNESS SHOP
1405 Adams Ave. Phom 407
UaukH would lx
buslncKH nnd Indwd could not op- ity, of those Htulo laws,
and tho other law of
KaiiHUM lmnusimr a liioKs-tun-mdr
i.iivivirMinmiiir, urn piii:i mi-h ui , urn on an irui'KH, wiin cerium ox- ' than the l'xi)(?msu to lhi rmiinnnv itfn Vr ti Am,.( ,
the roller legislation , of bunking. ! ceptlons: In both cases the supreme : whmo sole S Ssl Siis 1 a f3 X .ti.S?,22'.?..P!!??
of niAinll service to j court unnniiiimisly upheld the valid- ; unci consolidating servlco. : to .rise much ZtiTiI .i. ?!
IM Oil ,w,. r,l ,.f II,,. n.t.l.,l 1 ' ,, - ------ .t-..j v.,. o
r.. .,.tI.M u,i-. Ki-numiiv aourecinieci.
THE NATIONAL CITV BANK,
of New York
lug the long-term borrowings of caul-i Hughes, stated: I utilization of host, loiv.ti.,1 ,.t l
II. Is said thnt tho exception was , economical operating facilities audi Kindlioeit Firit
designed to fayor transportation byiroutou. It would obtain n mnxlimuni KlmlllnBss Is n nopiilnr virtue all
railroad as against tninsportulluu by of net ivvenuo from tho operation. ; neonl... ...7. .,. Vol. . . i' .
motor trucks. If this was the mo- 101 Tho revenues which urn W111 anl nntlons like lo think of
live of the legislation. It docs not 'enjoyed by tho forwarding companies '"O'USolles ns kindly; when a peo-
.nub vut- . iii.-..uu ution nr. iiiiiuu . couiu ue reiurnecl lo the transporlu
lu this ciLse would be invalid. The : lion companies, where they belong.
There Is n vury significant passage 1 111110 of business to tho nuilu-nv ev-
In tlio Texas ease In which Ihc court. : press agency. Its unit cost would de
spouklng through Chief Justice , r reuse, and in addition thereto, bv the
crate If they did not turn over llielr
funds lrequcntly, meeting tlio tern
porary needs of business, but leov
lug the long-term borrowings of cant
inl expenditures to be financed In tlio
public capital market out of Invest
ment funds, otherwise their resources
would become tied up or "frozen."
On a smaller si-ale this occurs when
loans become "slow," and the abil
ity of the banks to meet demands'!
lor iiccommiKlatlon in weakened. The I state bus a vllnl Interest In Ihe mi
railroad loans became slow because. 1)1 ODI late utilization of tho railroads
them was no public market for the1 which serve Its people as well as In edles which cull for ncuon by gov-long-lcrm
olillr.uttons Hint hud beciv,'the proiwr mlilntcuuuco of Ita high-; el nmcntnl nuthorltleB or which tho
7"' """v ""' in. vermin oi i ways us snie und convenient men- railroads themselves may tuko to
tht'se loans were made or renewed by j itlcs. The stale provides Its high-I ward the further reduction of op
tho banks solely lo tide tho rail- j ways and pays for their upkeep. Ita j crating costs nnd fixed charges tu
ple symbolises Itself In a figure.
killilllliesa la enpa a t. n i.a
OI her Iteinedles rroposed I clinrncterlelle.
Some of the other suggested run- cnnrnoteristlcs.
coming on each year, styles for tho
school girl, the younger miss, the
Infant and older women can be had
right here In La Orande. Ono shop
carries a complete line of co-ed cam
Wide Choice Of
Newest Fashions
Offpi'Pfl TiftPflllViPU' styles, featuring the sport models
UllvlvU "w'ay in popular prices. All ore headed by
competent buyers,
With such a Urge number of up- The mmlnery departments are nt
to-date ladies' rery-lo-wear stores !al, UmM Btockt,d Just recently
operating here, tho women of Lo ; the mllery department at Falk's
Orande can purchase tho newest ,t0,e wn6 remodeled, re-decorated and
things of fashion In the home city lB now , cl of Mrs. Ech0 Helms,
and ore sure to be pleated. This ; wh .. w... Maerienced In this line.
Is a proven fact by the large number
ot local women who shop and also,
by the great numbers who come from
out of the county to La Orande to
fill their needs.
Besides tho Cinderella, the Little
Shop and Dora Vl's which specialize
In ladles' ready-to-wear, there are
also several department stores, Falk's,
Montgomery Ward ond Co., Penney's,
Btevens-Van Engelen, New York
Store, Breler's and others. These busi
nesses are all well equipped in their
own lines to please the La Grande
shopper. At all stores the latest
creations may be had.
Tho shops ero well stocked with
wearing apparel for every member of
the family. With the advent of
each soaBon, new styles are added
and a bettor lino cuii not bo had
within many miles of this territory.
A complete line of shoes will always
bo found In the department stores,
styles for men. women and children
being featured in all season's de
mands. Everything from the soft
house shoe to the . sturdy outdoor
shoe is available In the shoe depart
ment and all are attended by com
petent salesmen.
Tho ready-to-wear departments
carry a good line of dresses, coats,
suits, etc. With the new seasons
One of the features of the La
Orande businesses Is that merchan
dise can be received every few days
or In a 24 to 30 hour notice, making
the stock always fresh and new.
The only kiddy shop In La Grande
Is Norton's Kiddy shop, owned and
operated by Mr. nnd Mrs. L. II. Nor
ton. Their store was opened several
years ago and has at all times shown
steady growth and new lines have
been added from time to time.
La Oranie Btores nro all complete
in their linos and are to be found
tho best in the state, drawing con
siderable trade outside of the city
us well ns In La arnnde. ,
Famous Works of Art
The slut ilea tvlilcli decorate the
lllielms cathedral tire generally of
one piece of stone. , Certain of the
angels, carved about 1205, nre sultl
to be equal In point of execution to
Greek statuary.
Valuable Library
Every library should try lo be
complete on something, If It were
only the history of pluhcuds.
Holmes. '.'''-
Diet, Yel Lives
After the butinim plant has borne'
n single crop of fruit, the plnnt slow,
ly dies. A netv plnnt then develops
from a shoot, nt the buss of the
stem of tho old plnnt
He's Elected
A scientist states thnt a red ling
will not madden n bull. He 'win'
cheerfully be permitted to perfunn
UIb own experiments. 1'lltsburgh
Tost-Onzetle.
Not Proud of Novels
For many yours t ho nuthor of tlio
"Wuverly Novels" was unknown. Sir
Wulter Scnlt did not think It quite
decorous "for me us a clerk ot ses
sions to write novels."
Human Nervous System
Tlie number of nerves In the hu
man body Is countless. In general
It tuny be stilted Unit there nre 12
pairs of crnnlnl nerves which, with
their brunches, supply the entire
body.
Unique Codfiih
The ling is the only member of
the cod fumlly found In fresh wa
ter. It Is widely distributed through
out the Great Lukes und is also
found in the other large .hikes of
Canada.
Things to Forget
Draw the curtain of night upon
Injuries; shut them up in the tower
ot oblivion and let them be ns
though they had not been. Bucon.
5j
Drop In
at
THE
NOOK
for the
BIGGEST, COOLEST
DRINKS IN LA GRANDE!
JUMBO ICE
CREAM SODAS
irc
PLATE
LUNCHES
20c - 3!c - 50c
T-BONE
STEAKS
50c
HOME MADE
PIES
" S'
MILKSHAKES
MALTS
15c
SILEX COFFEE
ALWAYS
FRESH
SIRLOIN TIP
STEAKS
35c
HOME MADE
CAKES
Everybody Likes Our Famous '. 1
Barbecue Sandwiches Now 15c
THE NOOK
1122 ADAMS AVE.
PHONE MAIN 888
Shoes Restored
To Color
Slu'iicd Dyod
Rejv'iizr'd Any
Color to Miitdi
Your Hat or Dress
Straw Hula
Re-colored to
Mutch Dress or Shoes
JESTEirS
SHOE SHOP
1212 Admits Ave.
loans over unlit such time as Ihcijieoplo make railroad transportation
H. t:. p. could bo oritanlwd nnd be- i possible bv the puvmcut of ti'um.por
c,ln to function. I'oshiiko of tho re-!tattim charcK.
ronnlnictlou tlnuiu o act roooMiilzMl j It cannot lie said that the alato
this situation as an onii'miency inak-, is poei'Ic,s to protect Its hlKhwuvs
Ini; It dcKlrahlc lor the public credit front bcllur '.injected to excessive
clmlo the following
Reduction of tho excessive railway
laxes. which in 1011 1 amounted to
M07.000.000 und took 37 per cent of
net rulhvuy oiH'ratlui; income before
luxes.
Nit'ii uitvca Annex X. --p Sneeiti
MAIN 577
SIMP
liintf in
KlNtJICU WAVIMJ PEUMANF.NT WAVING
The Dairy Industry
OF THE GRANDE RONDE VALLEY
t
Is Here to Stay!
rpiIE Rliie Mountain Creamery is betting its life on the future of the
A dairying industry of the Grande Ronde valley! We are confident that
this nvost important branch of agriculture is on a sound foundation, and
there is every reason to believe that it will successfully adjust itself to
the present difficult situation and thus win its way back to its former
prosperous condition. ' .,
BLUE MOUNTAIN CREAMERY
1109 WASHINGTON AVE.
MAIN 60