The Oregon statesman., April 13, 1933, Page 4, Image 4

The OREGON STATESMAN. Satem. Oregon, Thursday Morning, April 13, 1933
1 - .
' PAGE FOUR
i
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i foumar tan .
'Aro Faror Sways ff; iVo Fear Slutll Awe"
From First Statesman, March 28, 1851
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Per
Planned Economy
THE new deal which is being unfolded proposes "planned
economy" with the government doing the planning,
the regulating, and to a considerable extent the financing.
The system of competitive individualism is condemned ana
the socialized or socialistic state acclaimed. The one is said
"tb have broken down by its own excesses and the other is
hailed as a bridge across the cKasm to solid ground of
prosperity, " . '
One may confess the bill of particulars against competi
tive individualism, but how positive may we be of the virtues
nf Mn1annAd economy?" In these days of dissolution and of
i nw approach one dare not be too categorical in his declara
tion of principles; but it is at least well to examine some
of the propositions which are now advanced. And the first
observation one might make is that in precisely those fields
where government control has operated for the longest peri
od of time and with the greatest degree of completeness that
the breakdown is most disastrous.
Consider first the railroads. Government regulation
began in 1887 with the passage of the interstate commerce
law. Since 1907 the government through a commission has
had full authority over rates ; and not a single issue of stocks,
bonds or notes could be made without approval of the com
mission. The Adamson act passed by congress fixed hours
of employment of railway labor, and since the transportation
act of 1920 government boards have fixed wage rates for
railroads. Thus the eovernment had control over rates which
heln larcelv to determine revenues: and wages which
is the largest item of expense. The government too by its
. ... . i i inftn ?
control oi securities nas prevented since xsv any mimuou
of caDitalizations which is the bane of utilities now.
Yet, in spite of this "planned economy" what do we see
In the railroad field? Great systems are prostrate; their
stocks and bonds rapidly approaching zero values, save with
a very few unusually strong railroads. Many roads are not
. . j. l-i. i ...... i-
now earning operating expenses, icv, tuuue piuuuius ujr in
terest on outstanding bonds or dividends on stock. How does
this stand as a testimonial for "planned economy"?
To cite a specific instance. The St. Louis-San Francisco
railroad is in receivership because the interstate commerce
commission refused to recommend it for additional loans
from the R. F. C, stating:
"Wo do not believe this carrier can operate successfully la
tha future without a redaction ot its fixed, charges".
But four years previous the same commission approved
a financing plan of the road which retired two large issues
of preferred stock and created a new bond issue of $110,
000.000 and a preferred stock issue of $49,000,000. The
bonds, drawing 4 interest, were made 'legal for savings
banks", and found a ready sale, netting the company not less
than 94. Now these bonds are selling at 10, interest is in
default; and the preferred stock is virtually worthless. Does
this prove wisdom of government planning?
Or take the field of banks which are creations of the
federal and state governments. For decades they have oper
ated under strict laws and been subject to careful and con
tinuous supervision by agents of government Heavy penal
ties are a constant threat against wrong-doing, and frequent
examination is designed to keep institutions solvent and
honest. In addition we have had for nearly twenty years the
' federal reserve banks, virtually an arm of the government,
miding in the conduct of the nation's banking system.
Here is planned economy again. But what is the record:
nearly half of the banks of the United States have passed
into liquidation in the last 13 years!
Is the eovernment's record any better in farm relief,
where $350,000,000 of the public's money has been lost? Or
in farm mortgages where federal landbanks are sustained
only by government support, and joint stock landbanks, also
under government supervision, are now to be liquidated at
substantial loss?
We go farther and say that the two specific things which
have magnified the extent and duration of this depression
i were both acts of government. First, was the imposition of
very high post-war tariffs in defiance of the clear reading
of economic law, due to our change in status from a debtor
to a creditor nation. Second, the deliberate Jow-discoun
policy of the federal reserve banks in 1927 and 1928, agains
repeated warnings of competent authority, which permitted
the speculative excesses in securities and led to the crasn o:
1929.
"Rugged individualism" may be broken down and dis
. credited. Yet is there no significance in this, that there have
been very few failures in the field of unregulated business
among the larger concerns? Not a single large steel company
has failed although operations have been at a rate of only
12 to 19 of capacity for many months. Not a single large
mining company is insolvent: only one large oil company,
p.nd-that due to dishonesty of officers ; only two major motor
manufacturers; not a single large electric manufacturer or
maker of railroad equipment. A few merchandise chains have
been unable to weather the storm, and a few department
stores, but very few compared to the large numbers oper
ating. There have been failures in theatre companies, and
in coal and lumber industries; but on the whole the unregu
lated industries have survived better than those under "plan
ned economy .
We are quite sympathetic with a reasonable decree o:
government regulation to prevent public exploitation. But
we "view with alarm" government attempts at price-fixing,
emissions of government debt to sustain insolvent businesses,
na government guarantees or employment, of bank deposits
of farm profits and mortgage interest
A political appointee possesses nn bettor
mentthan any one else; and he has no responsibility for loss
in case his judgment turns out ilL When vnn aa Kn,n.
cratte inefficiency and political interference to private man-
wucui. jruu complicate ana siow down the operations of
business. Planned economv bv orivfrnrrtrtf kto v.
sterilization of enterprise, and the freezing of the adventur
ous instinct wmcn nas developed in the country, Put the dead
nana oi remote control in Washington on industry and agri
, culture and you lay a palsy on the very mainspring of econ
omic activity. -
i: The trouble with the "new deal" is that we are legislating
for cataclysms. We are trying to write our laws in terms of
eannquaKe ana cyclones Instead of for the longer term o
.? ' wa AHU UUL1V1LV. A. XlP.i H nlAv nA ASVOainn fAi- AVYia.
it
MARY
FAITH
" R BEATRICE
By BURTON
SYNOPSIS
Mary Faith and Ximberky Far-
rell hare been engaged for some
time. Uarr Faith, beautiful yotmg
orphan, gives up her position at sec
retary to Uark Nesbit when Kim
sets their wedding date. His atti
tude changes brusquely when Us
mother objects. The latter treats
Mary Faith coldly. Heartbroken.
Mary Faith returns to her office and
breaks the news to her co-workers.
Mark, taken ilL has Mary Faith
driven to bis country home, daily, for
two weeks. He tells her of his lore
for her. She halts him saying she
wiu never lore anyone as she did
Kim. While in a Jewelry store with
Mark, selecting a Christmas ring for
his sister, Mary Faith meets Kim
with a girL Next morning Kim calls
at Mary Faith's boarding house. He
assures her of his lore and proposes
immediate marriage. Mary Faith
melts in his arms.
CHAPTER XIV
111 telephone Dr. Pome r or to
night and ask him if he'll meet m
in the chapel at eleven o'clock," his
roice ran on. "And I'll ask the
Maldons to come down. We're sup
posed to hare a couple of witnesses,
aren't we?"
Dr. Pomeroy was the rector of
the Church of the Heavenly Rest
where she and Kim had always
planned to be married. But who
were the Maldons? She never had
heard Kim mention them.
"Who are the Maldons, KlmT she
asked.
He thought for a minute or two.
"Why, 1 guess yon haven't met
them," he said at last. "I haven't
known them so very long, myself,
but they're pals of mine. Jack works
down at our place. He and Claire
hare been married only two or three
months. You'll like Claire, Mary
Faith. She's a grand person."
Mary Faith stirred in his arms.
"I'd like to ask Jean Bartlett to
the wedding. She's my best friend"
she was beginning when he
stopped her.
"No. We're not going to have any
of Your friend Nesbit's office help
around." he said firmly. "You're
through with all that crowd, so forget
them. I'm not going to tell even my
mother about the wedding until h's
all over. ... Now, let me ten yon
where I thought we'd spend our
two weeks." '
She settled back to listen.
"Yon remember that aunt of mine
who lives down in Garrettsville,
Mary Faith r
"Aunt Ella Goad, you mean?"
Mary Faith remembered Aunt Ellen
Goad very welL Having once seen
Aunt Ella, yon could never forget
her.
She was a plump and pleasant per
son with a passion for moving pic
tures, library books, armchairs, and
soffee and cake between meals.
Mary Faith had always liked her.
and she said so now.
"Well, she's come up to town to
stay with my mother over the holi
days," said Kim, "and I'm going to
ask her to lend as her house down
in Garrettsville for the next two
weeks."
"Kim! Do you think she'll let us
have it?" Mary Faith's eyes shone
in the darkness. "Won't it be lovely
if she does! I can cook aU the
things you like to eat, and get your
bath ready in the mornings and put
the collar buttons in your ihirtl
And yon can build the fires and
shovel the snow off the walks so
that I can get out of the yard when
I want to go to market
"IH drive you there in the car so
that you won't get your cute feet
aU cold and wet." Kim said. "I'm go
ing to take doggone good care of
my wife."
"AH right, yon take care of me
then.
"I'm going to," Kim said, and he
said h gravely as if he were making
himself a solemn promise.
Tm leaving," said Mary Faith.
Mr. McClintock was playing'
checkers with Allie Brock when
Mary Faith went back into the
house an hour later. He sat facing
the haU door and he saw her as she
started op the stairs.
She turned her head and smiled
at him. And he looked at her, blink
ing a little, as if he were looking at
a sunrise.
Before she went to bed that night
Mary Faith washed her hair and
"did" her nails. Then she packed
two suitcases with things for her
honeymoon and laid oat her clothes
for the next day. A hunter's-green
suit trimmed with gray fox; a little
green hat; pale gray stockings and
slippers and handbag; a gray chiffon
blouse.
It was one o'clock in the morning
when she went to bed and she was
awake again at half past six. It was
still dark but the dawn wind blew
in through the open windows and
there was a line of silver in the sky
above the housetops on the other
side of River Street.
"My wedding day," she thought,
taking a long deep breath of it be
fore she put down her windows.
"This is the last time II ever get
up in this room."
But there was no regret, no sad
ness, in the thought She looked
forward to her life with Kim with
nothing but happiness in her heart.
The old house was like a tomb, as
it always was on winter mornings,
and she shivered as she ran down
to the bathroom on the second floor.
You had to get up at the crack of
dawn if you wanted to take a morn
ing bath at Mrs. Puckett's, for the
"paying guests" til got trp around
seven and fairly fought for the bath
room. When Mary Faith, fresh as a
Sower, came out into the hal a half
hour later, Mrs. Puckett, with her
bath towel and a cake of pink soap
in her hand, was waiting just outside
the door.
"I hope you didn't use all the hot
water. Mary Faith," she said. "What
you up so early for?"
"I'm going down to the office to
get aU my things and I want to
get away from it before everybody
arrives," Mary Faith answered.
"Mrs. Puckett, I'm going to marry
Kim Farren this morning.
Mrs. Puckett stared at her from
under her wrinkled eyelidsXpr a long
moment Then she shook her head.
"I haven't a word to say, Mary
Faith," she announced. "I haven't a
word to say P
Bat when Mary Faith was half
way np the stairs she said some
thing else.
"I hope yonll be happy," was
what she said. "I hope youll be
happy. I pray for k, Mary Faith.
. . . I certainly do."
The clock in Mark Nesbit's empty
office was striking eight when Mary
Faith walked into her own little
room that morning.
She had brought her hat box a
round leather affair with her and
into it she packed the contents of
her desk drawers. An oil-silk bag in .
which she kept her soap and nail,
brush and tooth brush. Two dean
face towels that belonged to Mrs.
Puckett A Hbrary book. A bank
book and a check book. A dime
savings bank. A pair of rubbers and
a folding umbrella. A pasteboard
box filled with old letters and re
ceipts. A box of writing paper and
correspondence cards.
She had them all in the hatbox and
was dosing it when she heard the
door open behind her. She swung
around. Mark Nesbit was standing
in the doorway.
He looked first at the open draw
ers of the desk and then at the hat
box. "What do yon think you're doing,
Mary Faith r His eyes seemed to
take her in, point by point The
green hat, the expensive fur-trimmed
suit, the gray slippers whh theh
cut-steel bnckks.
"I'm leaving," said Mary Faith.
CTe B Continue)
CrTif ht, ISO. r SwtoiM BvrW
IHatrikaU by
KiS Ftataraa 8ricat, lac
But the hysteria of the moment is calling for legislation to
create a new heavens and a new earth, and doing it in the
bitterness and emotionalism of the greatest economic catas
trophe in history. We have In America 120,000,000 people.
iney cannot be regimented, they cannot be fed by govern
ment doles interminably. There must be preserved freedom
of enterprise and responsibility for enterprise if we are to
restore balanced prosperity in this country. Not ignoring the
aidswhich political action may give to quicken business res
piration, recovery must come primarily through the opera
tion of economic forces, the adjustment of supply to de
mand, the release of credit, and the quickening of that potent
but elusive factor, popular confidence.
HS DOT
E
MOSCOW, AprU 12 (AP)
W. H. MacDonald, one of the six
British engineers who went on
trial today on charges of sabot
age, bribery and espionage, made
a donblo admission that he was
guilty.
He entered a plea ot guilty
when the session opened. The first
witness recited a detailed story
that MacDonald had bribed him
to act as a spy, and the young
Englishman confirmed almost all
of this testimony.
The other Englishmen on trial
Allan Monkhouse, Charles Nord
well, L. C. Thornton, A. W. Greg
ory and John Cushny all plead
ed not guilty. Eleven Russian
employes ot the Metropolltan
Vlckers Electrical company, for
which all of the Englishmen
worked, pleaded guilty.
A $2.00 Show at Our
LOW PRICES!
'42nd Street'
sS ELS1N0RE
TODAY AND
TOMORROW
They told Him He Was Tonh...
jind ne Believed it!
TO PLAY HAYES VlIiLH
HAZBL ORE EN, AprU II
The baseball team wlU play Its
first game of the season Friday
atternoon with HayesvIUe. The
line-up la captain, Marvin Van
Cleave, Donald Dannigan, Clinton
Wampler, Waldo Gilbert. Mel
vin Lehrman, Merle Smith, Alex
ander Sharp, Orvllle Dannigan,
Edward Yada, manager.
0
OT
Election Call Contains no
Authority for Initiative
Measures, is Ruling
(Conthra4 from pasw 1)
la charge of this particular legis
lation, may have changed their
minds after writing the title and
decided not to Include all of the
subject matter In the body of the
act which was enamerated In the
title, or. It may never hare been
the Intention ot the legislature to
laclado all of the sublecta men
tioned la the title, and the addi
tional item of initiative meaanrea
may have been erroneously In-
eluded la the title by the scrivener
who prepared that particular part
of the act"
Fl
PHI IS FJ
(Ontino4 tram pax t)
unemployment emergency relief
MIL but because it was a matter
ot either taking It or leaving It
just as the president had It draft
ed. . . It was better to rote even
for a bad bill which has that (re
lief) for Its object rather than
rote against It and get no emer
gency relief at all.
"If this law seriously Injures
our federal aid project the re-
sponsibiUty must be placed on the
people themselves, who, through
hysterias and propaganda have
been led since March 4 to believe
that anything which the president
demands is right and that It is the
duty of their representatives In
congress to give it to him without
question. I hope that between now
and the beginning of the next reg
ular session the attitude of the
people in this regard wiU have re-
turnea to normal so tnat con
gress may again be permitted to
function as a constitutional legis
lative body."
SHY PROBE FOB
The Call
Board V
By OLIVE M. DOAfi
CAPTTOIj
Today Stuart Krwla In Zane
Grey's "Under the Tonto 9
Rlra."
ELSXNORB
Today Warren William In
"The Mind Reader."
Friday Sylvia Sidney .In
-Pick-Up."
Saturday Mickey Moose,
"Riders ot Parple Sage;"
adult feature. Sylvia Sid
ney In "Pick-Up."
ORAM)
Today "Sins of Love."
Saturday , Tim McCoy
"The Western Code."
in
HOLLYWOOD
Today Carole Lombard in
"No More Orchids."
rriday Mr. and Mra. Martin
Johnson's "Congorllla."
Every actor. Including stars.
lea cored or bit players aa well as
a chorua of ISO, who appears in
the Warner Bros, production of
"4Jnd Street, which opens at
the Elslnore theatre Sunday, was
selected fir his or her role. In part
selected ror nia or her role. In part
experience.
For the picture is a ahow within
a show. It carries a well defined
dramatic plot, which Involves the
life behind the wings of a musical
comedy company rehearsing for
Its opening performance. Conse
quently the entire revue Is pre
sented at tne various stages of Us
progress of rehearsal and on its
opening night.
New Viewi
"What Is your attitude on fur
ther retrenchments In teachers'
salaries for the year 1933-34 In
Salem schools?" Answers to this
question put by Statesman report
ers yesterday were as follows:
HI GRANTED
(Continue froot pa 11
Is unbalanced mentally, she auto
matically will be committed to the
state- hospttsl In Phoenix, there to
remain for the rest of her life, or
until eueh time as she may again
be adjudged sane.
The request for the sanity hear
ing was made by Warden A. O.
Walker of the state prison the
only person In Arizona possessing
power to make It. Granting the
request under Arizona law, was
mandatory.
At her trial for murder of Mrs.
LeRol In Jannary and February
1982. Mrs. Judd'a defense was in
sanity, The jury fonnd her sane,
and thereby guilty of murder in
the first degree.
Women at Auburn
Will Hold Club'
Session Thursday
AUBURN, AprU 11. The Au
burn Woman's club will meet on
Thursday at the home of Mrs.
Carl Krehblel. The community
club will meet at the school Fri
day night. April 21. when the high
school students will have charge
of the program.
The place occupied by the Ar
thur Messing family has been
traded for other property and win
be occupied by the new owner, a
Mr. MUburn and family of Salem.
Lewis Brown, clerk: "As far
rm concerned let the teacher
have what she Is getting now.
That's a hard Job. and nlentv con
fining, whether yon want to be
lieve It or not".
Red Brown, writer: "Oh. I sup
pose they eaa stand a little eat
along with everyone else; but the
trouble Is If they are put low, it
win taae ages to get them back
np, it ever."
Calls on Relief
Oiiice Diminish
As Men Get Jobs
Diminishing need and more ef-
Tlcent methods have brought
about a decided decrease In the
number of persons calling at the
Red Cross-Community Service re
lief office over Fry's drug store
on North Commercial street, ac
cording to Miss Maria Wilson. Red
Cross executive secretary. DaUy
ciils now number around SO In
stead of lis as la March.
Start of spring employment has
taken at least 60 men from the
relief list. Miss Wilson said. Over
09 men are still being employed
on tne count's relief.
YOU'LL BE TALKING
ABOUT IT FOB MONTHS
42nd Street'
elsinore
II
01 'HI 01M
CICE'COniD
(Continued from pace 1)
roagh of Nebraska, to bo jadge
of tha eighth circuit court of ap-
peals. !
Mr. Roosevelt sent tha nomin
ation of Mrs. Owen, former mem
ber ot the house from Florida
and tha daughter of William
Jennings Bryan, to tha senate
together with that ot Mayor
James M. Curler of Boston as
ambassador to Poland. ;
Tha president also turned to
day to the selection of ' a suc
cessor to Eugene Meyer, Jr., who
has submitted his resignation as
governor ot the federal reserve
board. He is continuing in office
until a man to take his place
Is fonnd.
The names of Walter W. Stew
art, chairman of the board of
Case, Pomeroy and company.
New York Investment firm, and
of Angns McLean, former gov
ernor of North Carolina, have
been mentioned in the specula
tion over this Job. Tha former
has been mentioned for under
secretary of the treasury as well.
Mr. Roosevelt also selected to
day, Frank T. Bell, of Washing
ton state, as commissioner of
fisheries, succeeding Henry
O'Malley, the republican Incum
bent. Bell Is secretary to Senator
Dill (D-, Wash.)
Young Men Flock
To Register for
Forest Projects
Streaming into the U. S.-Y. M.
C. A. Employment office here
dally, over 500 men had yester
day filed preliminary applications
for Jobs in the forest camps to
be established under President
Roosevelt's relief program. The
majority of the applicants are
young men coming from all parts
ot the Willamette valley. It is
expected the office here wfll re
ceive official advice soon as to
handling these registrations.
General labor and farm jobs
are scarce at the employment
office. This week four men have
been plsced at common labor ond
one on a farm.
Good News
TONITE IS DIME NITE
AH
Seats
"No More Orchids"
Carole Lombard, Lyle Talbot
and Louise Cloaser Hale
Also Pitts and Todd In
"ALUM AXP EVE"
Coming Friday - Satsutlay
Two Big Features
Mr. Mrs. Martin Jotuuea's
"CONGORILLA"
AVD
fAKD ADVENTURE IN
AND ON TOE RANG
"lIIDjinrVAUEYi
DALE BLAIR WEDS
SILVERTON, April II. Mr.
and Mrs. C. A. Barber and Mr.
and Mrs. Cal Schlador motored
to Battleground, Wash., Sunday
to attend tha wedding of Dale
Blair to Miss Dorothy Cook. Carl
Mick of Silverton was best man.
Young Blair Is a former Silver
ton boy and will be remembered
by many here. The Blalrs at one
time owned and operated the
delicatessen at Silverton.
'BLgiKi(m6(
ENDS
TODAY
EXPOSING THE MAN WHO
EXPOSES THE FUTURE
I i v h m
with
Constanea Cwmmiugs
PLUS
Voiea of tha Vatican i
POPE PIUS XI
Scenes of Vatican City
ROOSEVELT THE
MAN OF THE HOUR
TOMORROW AND SATURDAY
GREATER THAN 11 BAD GIRL!
Visa De!mara Tefepe
t0B,IIat Dleodea
Rosxsae . . iVSk Cm
Screea't CreatestTeaa!
Gee?. Mpa
SYIVTASIMEY
TODAY and TOMORROW
ONLY
LAST 2 DAYS THEN GONE FOREVER
vjfV; ... '-'V ..
V
.:
The Picture All Salem
Is Talking About
OF
MOST AMAZING PICTURE OF
THE ENTIRE YEAR Capacity
houses and every house record brok
en a true story of women's joys and
women's sorrows. True and authentic.
A Picture That Causes Big
Strong Men to Faint
LADIES ONLY MEN ONLY
ato4p.ni. 7 to 11 p. m.
BIrs. Jardine McCree Prof. Howard Goldin
Noted Authority on Sex Noted, sex philosopher.
She will tell you what will tell you nature's lawg
causes divorce; how to and other delicate secrets
hold your ' husband and of life .remember know-
I other astonishing facta. ledge Is priceless.
ASK ANY WOMAN IN SALEM
Extra Special show for business women
and working girls Friday night only.
Doors Open at 6:30 P. M Show Starts at 7 o'clock
Promptly with an especial lecture on Birth Con
trol by Mrs. McCree.
ALL
THE For
9? IKL&InD
- m - : WeSW VAAAV I
tency-legisiaupnOffie-topf