The Dallas Craftsman (Dallas, Tex.), Vol. 25, No. 5, Ed. 1 Friday, February 21, 1936 Page: 2 of 4
four pages : ill. ; page 22 x 16 in. Digitized from 35 mm microfilm.View a full description of this newspaper.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
TEE DALLAS CRAFTSMAN
FHE DALLAS CRAFTSMAN
THE NEW FAEX BILL
JUDaNG OTHEES
lw.U Kvery Fday
Busineas t experlencing what
slight
Entered
VAGARIES OF GENIUS
DALLAS, TEX., FKU FEB. 21. 1936
convict-made goods in the open mar-
Some time ago a man surveyed his
■
hrew
Totalled
casional habit of Cardinal Richelieu
himself to
was check in June, 1935. with the end-
convicct-made
A
$
■
I
I
t)
States
3
attempts to impose them
WINTER AUTO SAFETY
1
AK
-Ce
■
Prepared On the Table!
, Popular New
2
NEW PAIS PREVENTIVE
EVADING GAS TAXES
2 85 | I
ebe
Mid to be made possible
by a pre-
vously unknown
4
62
Orderly Judicial Procedure
s5
A
/
s
if you're not already a table cookery enthusiast,
investigate this quick, convenient and thrifty way
of making breakfast.
to gallop
imagining
ing of NRA, the responsibility for ad-
rance rests with the workers them-
With the new sandwich grill you can do much more
than make sandwiches. Quickly adjustable grill per-
mits you to make toast and fry bacon, ham, sausage or
eggs right at your elbow. Excess grease drains into a
handy cup.
And as for coffee, you get the thrill of seeing the
coffee made in the new-type coffee makers. The water
bubbles—rises to the upper bowl—draws all the rich
oils from the coffee—and filters back in a jiffy, full of
glorious flavor.
be a herse.
economist.
Mrs Edward Jefferson of Danville,
Ill., applying for a 1936 fishing U-
cense, wrote the clerk: “My mother's
maiden name was fish and my fath-
er's name was Herring; I was born at
Fountain Creek In the "Sucker" state
Se
Hi
Li
m-pas
23
ELEC macLEC
a 2
Monthly Survey
Of Business
Of A. F. of L
“In
like a
Congr
dance
they
ham*
scene
string
sereer
tional
talk.
"Th
place
on loans from brokers to customers
from 45 to 55 per cent
Shall idle money, machines and men
be used to produce goods and raise
living standards or will we drift into
one for kecpii
coffee hot.
By 4
T
polil
and
the
ing
acta
Stat
the
nom
mas
T
bina
poin
D. H
beo
Ame
Tt
dese
the
hold
Act
sisti
have
meal
appr
clare
the <
sitio
baist
a co
tutlo
Hi
con*
and
Leag
"I
Top- Holder ■■ holds
upper part when not
OU can properly prepare a complete piping-hot
breakfast—right on your table—without moving
from your chair.
Thrifty ELEC MacELEC
says:
"Let Cutin MacElec do more for
you in your kitchen in 1956. He
does more jobs than ever before
— does them better — and does
them at lower cost.”
You simply plug in your electric waffle baker. In a
moment it heats to the proper temperature. Then drop
on a spoonful of batter — the automatic signal light
tells you when to lift out a golden-brown waffle. Wide
tray base and rims catch any batter overflow.
Conrict Labor Law Before Su-
preme Court
•v MANS INVESTMENT EXPERI-
ENCE .
tion to "open wider, please: this isn't
going to hurt" may in time be accept-
ed with assurance by the patient In
his chair.
Menace of Unregulated
Competition
Fubilened »> ike
KELy punuisuixo coxAxx
Twenty-four states have established I
the state use system and accepted the
THE reactionary interests who are
determined to lower ■ the -living
standards of the masses, by seilinK
The Dallas Craftsman represents the
true trade unlon movement, volcleg
the aspiratiens and aehleyementx et
Che American Federatiom of Labor. It
does not represent the Bolshevik, L
W. W„ Anarchistis, Radical, er any
other movement imjurlous to the peace
and stability of American Institutioms.
It b for America, first and last, and
ter the honest, mioral, upright, cour-
ageous and true trades unions all the
time.
EYES Nor ALONE IN SEEKING
TASK
7
—
gtand by challenging the constitution-
of the Hawes-Cooper Convict L-
bor Aet before the United States Su-
colm at times contemplated suicide. .
Among the ridiculous antics of
great men may be mentioned the oc-
Say
M
li
V*
T
A)
“Th
away
have :
cent :
ment
“Th
that t
get bi
death
wards
a bett
ed lab
the ur
"I h
to say
lature
short
ate, I
inand
those
in Wa
Va
have i
the in
Co
catU ia. eusumez: indusries,.so- that
uhhbplos menr’u ebearrje-Na _
ente of producer ndustries on the
oconomic-systen is out of all propor-
tion to their share in the pation
ONLY
5595
) Breakfast Helps
' WESTINGHOUSE Table Grill
been
do nt
and i
their
ica, t
dead
of thi
"Bu
ed. ar
trying
these
dead,
and tl
the A
right
down
ing
“I 1
ive b
these
at th
cours
Const
who t
band 1
then i
this c
________]
“1 i
Const
Amerl
the l
They
than 1
of it
and t
afraid
ment
stituti
"Oh
old di
who t
were
beater
back i
“W1
ganize
State
at the
Deas
busin
said. '
few m
on thi
out b]
other
back
talk a
DALLAS POWER & LIGHT COMPANY
Downtown and Oak Cliff Stores - ;
CORY Coffee Maker
s-cup capacity; with
a 2-heat base; one
heat for brewing and
. / v.
sg,
eee32
quarter Judex stood at 96.2. The out-,
look for the first half-year is for fr-
preetehs Wuenees Te ‘
expocted to hold a level about 10 pgr ’
last year Th to fact places on work-
ers the obligation to demand higher
wages if the balance between produc-
ing and consuming power is ever to
be restored Since the upward trend
G. E. =”
HOTPOINT Waffle Iron
Bakes full size, 7-inch waffle. Heat in-
dicator tells when to pour batter. Ex*
panding hinges insure even baking.
_.-OI$4.95
4- HHr#
" ylon
. rn
said
ers,
ever
anytl
- them
‛nco
"T
are t
unco
keep
this
forgo
and i
they
stitut
-‘I
Amer
that
and 1
stitut
ers o
“Ti
erty
them
the w
out f
maki
<
um . -eepim , -e-—-
a " ExcT
Adam Smith, the great
THE desirability of orderly judicial
procedure' in considering cases
arising under the Wagner -Connery
Labor Dispute Act is implied in the
deciscn of the United States Circuit
Court of Appeals for the Sixth Circuit
denying the application of the Bemis
Act itset it is hoped the ruling will
be influential in encouraging the ap-
plication of orderly judicial procedure
on the part of Federal district judges
who still may be inclined to ignore the
stipulations of the Act and enjoin the
Labor Board rom holding hearings
charging employers with unfair labor
practices. __
er State to sell its
goods in that State.
• Mm: Ground Floor of Labor Temple
Young and Evergreen Streets
This has been done on a large scale
by means of tank wagons, but through
increased vigilance by state inspectors
a great many such law violators have
been apprehended and made to pay
the tax and a fine besides
In Missouri alone $178,574 in eroded
taxes and fines were collected in four
years, while no one knowphow many
of the “bootleggers" escaped detec-
tion.
The practice will no doubt continue
to a greater or less extent as long as
different gasoline tax rates exist
among the several states.
Nothing is quite ‘so mysterious as
the workings of the human mind. A
study of men classed as geniuses gen-
erally shows them to be a little
"cracked" in certain respects. Some-
times their peculiarities have been
harmless, in others they have led to
positive insanity. A few examples
will illustrate.
Napoleon Was afraid of a cat; Peter
the Great was afraid to cross a,
bridge; Martin. Lher imagined that'
competition with the products of free
labcu have made their last stand by
challenging the constitutionality of
the Hawes-Cooper Convict Labor Act
before the United States Supreme
Court
The passage of the Hawes-Cooper
Act by Congress was the culmination
of many years' effort on the part of
organised labor and other progressive
forces to extend the state use system,
under which all products made in
State prisons and reformatories are
not sold to the public but used by
State institutions.
The Act provides that convict-made
goods shipped from one State into
another shall come under the laws of
the latter State the same as if manu-
Cactured there. This means that if a
State legislature prohibits the sale of I
its own convict-made products on the I
open market, it is illegal for any oth- I
product. Even though
shortage of producers.
for reemployment is by no means
keeping pace with business gains.
THE competitive system of produc- While business activity in December.
I tion must be regulated by effective [ 1935, was Per cent above Decem-
price fixing or pass out of existence » ber, 1934, employment was only 4 per
once walked 13 miles to church, clad
only in his nightshirt. Bentham, the
philosopher, went bareheaded in win-
ter and wore heavy leather gloves in
summer. Many men of genius have
been shockingly lax in morale as
measured by adopted standards.
All this does not mean, however,
(hat being a bit nutty is an infallible
sign of genius.
spending and for such irresponsible
measures as payment of debts by is-
uing greenbacks. This danger is caus-
ing much concern in business circles
both here and abroad; it has even
brought a decline in value of the dol-
lar on foreign markets
A second matter of grave concern
is the large volume of funds accumu-
lating in banks. Bank deposits have
Increased from $38,000,000,000 in June
1933, to 148.000,000,000 at the end of
1935 Those who control these funds
are anxious to make them earn in-
come. If they are not put to produc-
tive use in Industry, they may be
turned to speculation on the stock
market, where prices are already ris-
Perhaps in no other industry is
there such a variety of conditions as
firms the propriety of handling cases
under the Labor Act in accordance of wages which began in July, 1933.
with the provisions set forth in the---herk “m Tune 1025 -ith *he end-
Because of the lack of uniformity
among the states in the matter of
gasohne taxes, a considerable traffic
in "bootleg" gasoline has grown up.
In spite of all efforts of officials to
suppress it
The plan is, of course, to buy gaso-
line in a state with a low tax. trans-
port it across the line and sell it in a
state having a higher tax, without re-
porting the sale to the authorities
*==7
•' -T
preme Court
The passage of the Hawes-Cooper
Act by Congress was the-culmipatio
of many years' effort om the part of
organised labor and other progressive
forces to extend the state use system,
under which all products made in
TERMS OF SUBSCRIFTION
One ................... $2.0
patient need no be aware of its ap-
plication. ~ ;cesees, the Federal Reserve Board has
if the new discovery does what it raised the margin allowance required
elaimed for it, the dentist's admoni-
You might think that in reading this
newspaper, your eyes are the only
organs involved in the task of seeing.
Actually, other organs, as well as the
nervous system, are affected, accord-
ing to recent scientific researches.
Naturally, the easier the seeing task,
the less strain there is upon the eyes,
the nervous system, and the affected
organs.
Seeing is a partnership of lighting
and vision. Without light, even the
best of eyes cannot see Similarly,
without vision, light is useless. To
make certain that you see easily, and
without strain, first look to your eyes,
they look to your lighting. If your
eyesight specialist tells you that you
need glassee, don't let foolish pride
stand in the way of your getting and
wearing them
Then, cto make certain that your
glasses do you the most good. see to
it that you have- an abundance of
clear glareless iMumination by which
to read and work.
Eyesight is our most precious poe-
session. A little attention to the eyes
and lighting will do much to preserve
your vision for the years’ahead.
selves through their collective bar-
gaining agencies.
While industry pursues its gradual
course of recovery, 11,400,000 unem-
ployed stand waiting for a chance to
put idle plant and machinery to work
and produce the goods to give them a
decent living. Last year’s experience
has shown that they cannot count on
business recovery to give them jobs,
--
S
-
What is declared to be a pain dead
ener which will really make painless
dentistry an accomplished fact has
been announced by Columbia Univer-
sity as a discovery by Dr Leroy L.
Hartman of that institution's dental
school.
The new desensitizer, perfected by
Dr Hartman after 20 years ol re-
search and experimentation, is de-
scribed as a solution which when ap-
plied to the surface of a tooth not only
prevents pain but offers possibilities
of saving teeth which would other-
wise have to be extracted.
It becomes effective in less than
two minutes after application and re-
mains effective from 20 minutes to an
hour The new solution’s action is
indiscriminately there are something
over 14.000 newspapers in the United
States, ranging from the smallest
country weekly, which prints only two
pages in its own shop, with additional
pages printed by a syndicate, to the
greatest metropolitan dailies which
employ thousands of persons each.
For the smallest, probably not more
than 25 pounds of paper is required
each week, while the Chicago Tribune
uses for one Sunday edition all the
paper produced from timber grown on
240 acres of land.
According to Grove Patterson, the
well-known writer, the New York
Times employs 3,100 persons, with a
payroll of $25,000,000 a year. Hearst’s
newspapers and magazines use more
than $50,000,000 worth of paper a year
in normal times.
But in spite g the disparity between
the smallest and the largest of Amer-
as an unsuccessfui experiment
This was the conclusion reached in
a brief submitted to the Supreme
Court of the United States by the Cot-
ton Textile Institute, the Window
Glass Manufacturers' Association, the
National Lumbermen Manufacturers'
Association and the Consumers' Goods
Industries Committee in a brief filed
in the Government suit to dissolve the
Sugar Industries of New York, which
has been held by both the Federal
District Court and the Circuit Court
of Appeals to be monopolistic and in
violation of the Sherman anti-trust
amounting to $18,000,000 profits are
nce high enough to tempt production
and 6,000,000 men stand idle. Only
since NRA ws declared unconstitu-
tional has recovery even started in
these industries.
Over a period of years. production
in producer goods industries has been
consistently unstable. Consumer in-
dustries vary much lees During the
7 years from 1922 to 1929 production
of producers* goods increased 70 per
cent. If business firms had so plan-
Ded their purchases of equipment as
to create a steady rise in production
of produces" goods that increase
would have amounted to 6.4 per cent
each year.
Haphazard production of producers’
goods affects the Ives of millions.
Every large increase or decrease
means employment or unemployment
for 500.000 to 1,000,000 and these men
when they have no work and cannot
buy. rut off employment for an equal
number in consumer industries.
As long as the profit motive, un-
controlled. dominates production*, we
must have business booms and de-
Some years ago John Gellatly of
Washington left an art collection
worth about five million dollars to the
Smithsonian Institution, and later his
remaining flortune was lost When he
died at the age of 78. his family had
to borrow money with which to pay
his funeral expenses.
Labor foresaw last
ing To forestall speculative
A new farm relief bill recently pre-
sented to Congress to replace the in-
validated AAA is designed to confer
almost unlimited powers on the See-
retary of Agriculture to pay growers
$440,000,000 from an appropriation
sought to be made in a separate meas-
ure.
According to press dispatches, many
members of Congress, inchuding some
supporters of the bill, are of the opin-
ion that it would be as unconstitu-
tional as the AAA, in the light of the
United States Supreme Court's recent
decision. Among those who have ex-
pressed doubts regarding the new
bill’s constitutionality are Senators
Norris of Nebraska and MeNary of
Oregon, both advocates of farm aid
legislation and reputed authorities on
eonstitutional law.
In a recent radio address, Stanley
F Morse, executive vice-president of
the Farmers* Independence Council of
America, asserted that the new bill is
"a hastily cooked up scheme," whose
real purpose is to pay farmers for their
votes in the election next fall. He also
charges that his organisation was de-
nied the opportunity to express its
views at a meeting of farm leaders
held in Washington to recommend a
new agricultural bill.
There is a wide divergence of
opinion among Rann organisations
concerning the merits of the new law,
and the present bill may be material-
ly changed before enactment All the
old cure-alls, including the equalisa-
tion fee, the export debenture, and
the domestic allotment plan, will be
given an airing again.
It is unlikely that any of these
plans would work to the permanent
advantage of the farmer, but the tink-
erers mst f^y on, and the bill will
be paid by the taxpayers and consum-
ers, as always.
which have accepted the Hawes-Coop-
er Act and barred such products from
their borders.
In pursuit of this commerce in con-
vict-made goods. Asa H. Whitfield, an
Alabama official, shipped work shirts
made in the Wetumpka prison to
Ohio and sold them in that State in
violation of the Ohio statute which
prohibits such sales in compliance
with the terms of the Hawes-Cooper
Act. Mr. Whitfield was convicted of
violating the Ohio statute His appeal
to the Ohio Supreme Court was dis-
missed. This action in effect affirmed
the constitutionality of the Hawes-
Cooper Act
The conviction of My Whitfield
was challenged by the State of Ala-
bama before the United Statas Su-
preme Court on the grounds that the
Hawes-Cooper Act violates the Fed-
eral Constitution. Counsel for Ala-
' bama claimed the Federal Constitution
gives equal righta to all States, pro-
hibits taking property without due
procees of law, and bars legislation
burdening interstate commerce
All of these alleged const itutional
rights of Alabama, it was claimed,
were abolished so far as Ohio was
eoncerned when that State in order
to protect its own citizes put Ala-
bama convict-made goods on the same
footing as the convict-made goods
produced in its own prisons and de-
clared their sale on the open market
in Ohio was illegal
In commenting on the arguments
made. Justice Sutherland said the
question before the court was "wheth-
er Ohio can put convict-made goods in ’
one class and those produced by free
labor in another class.”
The vital issue in the case was
summed up by John W Bricker, At-
torney General of Ohio, who defended
the Hawes-Cooper Act. Pointing out
that the Supreme Court had invariably
uphe’d the validity of the police
powers, of the States and the Nation
in protecting the welfare of citizens,
he said the Act was necessary to pro-
tect both labor and capital from com-
petition by prison-made articles, add
ing
"To set aside the Hawes-Cooper Act ,
as violative of any constitutional pro- .
vision would be to deny to Congress
the power to enable the States to cor-
rect an evil inimical to the welfare of J
around a billiard table.
(that life insurance tops the list for of Illinois; now you know why fish-
I the savings of the average man. I ing is my hobby."
the Postotfiee at Dallas,
____, _ second-elass mail matter
under the Art of Mareh 8, 1879.
Brothers Bag Company of Knoxville,
Tenn., for a temporary restraining or-
dor enjoining the National Labor Re-
lations Board from holding a hearing
on the complaint filed by Local 1838,
United Textile Workers of America,
charging the company with violating
the provisions of the Act
Application flor the injunction was
originally made to Federal Judge
John D. Martin, in the U. S. Court of
the Western District of Tennessee
The company claimed the Act was un-
constitutional. Judge Martin affirmed
the const Ku tional ity of the Act and
denied the injunction. The Cincin-
nati Court of Appeals affirmed Judge
Martin’s action in denying the injunc-
tion. but refrained from passing on
the constitutionality of the Act under
the case as presented. The decision
emphasised the point that the claim of
"irreparable damage," which the com-
pany alleged it would suffer as a re-
sul of the hearing, was not adequate
to warrant the injunction. The court
considered the injunction question
entirely apart from the alleged un-
<x institutional ity of the measure.
The decision of the Cincinnati Court
of Appeals strengthens the judicial
procedure set up in the Act itself. The
measure gives the National Labor Re-
lations Board authority to hold bear-
ings on complaints that an employer
has violated the Act. If the Board
finds the evidence sustains the charges
it is authorized to issue a cease and
desist order requiring the employer to
end the specified illegal practices. If
the employer refuses to obey the cease
and desist order, the Board is author-
ised to petition the Ur S. Circuit Court
of Appeals of the district wherein the
unfair labor practice or practices in
question occurred for the enforcement
of the Board’s ruling. On the other
hd, employers or other persons who
are aggrieved by a final order of the
Board also have the right to take th
matter before the .Circuit Court of
lean newspapers, the publisher of the
small country weekly need not be
overawed by the size of his metro-
politan rival. The local newspaper
has a place in the life of its commun-
ity which the great dailies capnot
usurp it the bocal publisher is alive
to his opportunities and makes the
most of them.
Nog, as always, the home town
newspaper is the best and cleanest
exponent of constructive journalism.
It is trite to say that in judging the
character and motives of another per-
son we should try to imagine our
selves in his place. But how many of
ns do it? How many of us make a
conscious and determined effort to be
fair in our estimate of the other fol-
low?
An unknown author has set forth
some thoughts in this connection
which are worth repeating, as fol-
lows:
"When the other felow acts that
way. he is ugly; when you do it. It is
nerves
"When the other fellow is set in his
wayt he’s obstinate; when you are,
it's firmness.
"When the other fellow treats some-
one especially well, he is toadying;
when you do it, it's tact.
"When the other fellow takes his
time, he is dead slow; wthen you do.
zou are deliberate.
"When the other fellow picks a
flaw, he’s cranky; when you do, you
are discriminating.
"When the other fellow says what
he thinks, he is spiteful; when you do,
you are frank." and so on.
It is really hard to apply to our-
selves the same yardstick which we
use in measuring our neighbors. But
we ought to try to do it
... .uo „ -
His first investment was in real es- Samuel Johnson, Beethoven nd Lin-
tee Hard times came along. taxes-l-i- ‘ ---- -* — - — a-id-
soared, and values, depreciated. He
cent above last year The burlding
industry ie a recovery leader "this
spring, with a $205,000,000 4otal of
dootracts in January, compared to
$100,000,000 last year Home building
is $7 per cent above last .year Re-
covery here lifts the building mate-
rials industries; lumber production is
42 per cent above last year and ce-
ment 35 per cent higher (frst two
months).
In general, profits in the first
quarter will be considerably above
there is a in the newspaper business,
goods today * “ i "......
Wagner-Connery Ac itself,,citing the
U S Cireuit Copvt of Appeals as the
first judicial body to consider cases
arising under the Act. a number of
Federal district idges have assumed
the autbority to intervene, and acting
on petitions trom employers and other
persons have issssued ingunctiens re-
straining the Board from even hold-
ing hearings on complainta charging
unfair labor practices. In the neigh-
bor hood of thirty injunctions of this
character have been issued They
constitute a serious handipap to the
work of the Labor Relations Board in
dministering the Act
The decision of the Cincinnati Cir-
cuit Court of Appeals impliedly af-
dentin of the tooth.
The new discovery is to be patented
and the rights assigned to Columbia
University, which wil control its price
and quality, m u to make it avail,
able to the public and prevent com-
mercial exploitation.
Dr. Hartman says the new desen-
sitizer causes no after-effects, as do
certain other drugs, and that its
method of use is so simple that the
SOLD -P
AT DALLAS DEALERS ' cuux meckue
and
was forced to mortgage it—and eyent-
ually the mortgage was forecloed.
This investment was a total loss.
His next investment was in a small
business. It' did fairly well for a
while—then a better product came on
the market. The business went to the
wall. This investment was a total
loss.
His third investment was in securi-
ties that were regarded as first-class
However, changed conditions proved
otherwise—the securities declined in
value and finally became worthless.
This investment was also a total loss.
During thia time, other savings he
made shrank to about ten cents on
the dollar.
One investment not only held its
value, but appreciated. That invest-
ment was a life insurance policy
For downright safety, it would seem
a
The wisest thing a motorist can do
at this time of year is to discuss with
his service station proprietor the
winter needs of his car, including the
proper winter oil and gasoline for his
particular make and model, the ma-
nipulation of the choke and throttle,
the maximum average speed at which
the car should be run, and other such
matters.
This, In substance, is the advice of
John D. Collins, sales manager of the
Tide Water Oil Company, who insists
that hie dealers be prepared to give
this information to their customers at
all times.
Speaking of speed, Mr Collins
warns that any motorist who tries to
get out of his car all the speed the
manufacturer put into tt is headed
straight for grief, and as a further
contribution to the nation-wide safety
campaign makes these additional sug-
gestions:
"Aside from the danger of excessive
speed in crowded, fast-moving traffic,
the car owner’s pocketbook suffers
when the speed gets beyond 45 miles
an hour, unless the fuel itself con-
tains oil and a carbon solvent to pre-
vent excessive friction at high heat,
and consequent damage to cylinders
and valve mechanisms.
“The average car rwill give fine
service twice as long and at much less
cost if it is habitually driven at less
than 45 miles an hour And the driver
will cover more territory in a day
with less fatigue by maintaining a
steady, moderate pace Chan by a jour-
ney made up of fits and spurts."
Large cooking surface and grids that
adjust to any thickness make this full-
size, modern grill a real table stove for
family breakfasts, etc. e g or
ONLY
provisions of the Hawes-Cooper Act.
Alabama still clings to the anti-so-
ciai system of selling its convict-made
goods on the open market it not on-
ly sells these products in Alabama but
cent higher. According to the An-
nalist index, a further advance of 25
per cent would bring business to the
1929 peak but employment must rise
28 per cent to give work to all who
want it if we make no better prog-
rees than this, in putting the unem-
ployed to work, industry will have to
doble its 1929 volume of production
and service before there will be jobs
for all
The failure of private industry to
put the unemployed to work and pro-
duce the goods necessary for an Am-
erican living standard is now bring-
ing the nation into serious danger In
the past 6 years our national debt has
almost doubled, rising from $16,700,-
000,000 in the fall of 1929 to $30,557-
000,000 at the end of 1935. This is
the highest point ever reached and ex-
ceeds by. nearly $4,000,000 000 the
peak war debt of $26,597,000,000 tn
August, 1919. It is significant that,
in the calendar year 1935. our debt
increase of $2,000,000,000 could have
been entirely avoided if the $2,500,-
900,000 paid to the unemployed in
1935 by the Federal Government for
relief and emergency work had been
paid them inMead by industry for
work on normal jobs producing goods
During depression bank credit,
which normally finances productive
activity, dropped to half its 1929 vol
ume, a decline of $22,000,000 000. Dur-
ipg the same period money borrowed
and spent by the Federal Government
increased by nearly $14,000,000,000.
Money spent by the Government for
emergency relief did not take the
place of bank credit, for it was not
used to produce the food, clothing
and housing needed by the American
people nor to provide the machinery
and equipment needed by industry.
Some of it was used to create public
wealth,. which will be of much serv-
ice, but even this cannot refund the
borrowed money rwthich paid for it. ..
In the last month huge new obliga-
tions have been taken on by the Fed-
eral Government; the $500,069,009 due
to farmers which was to be covered
by processing taxes must, since the
Supreme Court decision, be paid by
the Treasury; the veterans’ bonus will
cost the Government about $2,250,000,-
000. When continuing relle needs are
added to these new obligations, the
national debt will probably reach at
least $36,000 000,000 by June, 1937.
unless heavy taxes are voted Al-
though Federal credit is still strong i
and the Government stands firmly
against inflation, there is growing 1
pressure on Congress for lavish |
substance in the
runaway inflation, ending in a worse
collapse than ever? Tbs answer de-
pends on whether private enterprise
resumes the task of creating wealth
in this country. Thus far industry
has been providing only those goods
and services demanded by consumers
whose income was restored by relief
or reemployment. We have had a
"consumer goods” recovery but very
little revival as yet in producers’
goods." Consumer goods Endustries
are operating at 93 per cent of their
1929 level while the industries which
manufacture machiery, steeb and
other materials and construct indus-
trial buildings And equipment are
running at only 57 per cent of 1929.
This is a vital fast in our present
dilemma. Producer goods industries
normally produce about 25 per cent
of our total nationak output They
euployed in 1929 about 6,500,000 men
Today 3,000,000 are Adie If these 3-
1100,000 were employed, they would
create jobs for 3.000,000 more in the
consumer industries to provide their
food and clothing. Thus revival in
the producer goods industries could
create 6,000,000 jobs. - This is the key
to recovery. yu
What is holding back production in
these industries? Their customers are
business firms and business men are
not yet sure enough of making profit
to invest in new equipment. Al-
though corporation profits have in-
creased greatly since the 1932 low
point, they are still not half-way back
to the 1929 level. Also, suqh factors
as fear of inflation, fear thaX Congress
will pass lasws regulating business or
interring with business, have all
tendd to delay purchases of produc-
ers’ goods. Any action, even when
it is essential to preserve economic
health or give food to the hungry, will
stop ahe wheels of industry and keep
men out of work if* it tends to limit
profits. Lay-offs in producer indus-
trieq cut buying power and cause lay-
check in the progress of recovery As
we noted in our Survey of November.
1935, buying power of workers has.
for some time, been falling behind the
production of American jmdustries.
This unbalance, as noted, could only
have one result, namely, to check the
rate of recovery and. if it remained
uncorrected, to cause a serious set-
back later on (1937 or after). The
check occurred in January and is car-
rying over into February. It was felt
especially in the automobile industry
for buying was not strong enough to
hold the demand for cars at the high
level which opened the 193$ season
and auto production det lined in Janu-
ary and February, carrying down with
it production in steel and other indus-
tries dependent on IL "The Standard
Statistics index of industrial produc-
tion dropped from’ $3.0 in December to
81.0 in January and the forecast for
February indicates a further decline
to 78$. This is the first downturn
since last June.
The slight setback, however, is ex-
pected to be short-lived and to have
no lasting effect on recovery. Already
the steel industry sees increasing ac-
tivity ahead and forecasters gegarally
believe that by March industrygen-
eral will resume its upward swing.
For the first quarter of 193$. Standard
Statistics expects an average produc-
tion level of index 80. This is well
above last year's first quarter, which
averaged 73.3. and compares with $5 6
in 1934 and 51.2 in 1933. It is the
Price fixing is the essental point in-
volved. the Government contending
that the Sugar Institute used this
practice to eliminate the form of com-
petition called '‘individual bargain-
ing" under which all refiners and
ocher sugar sellers are cbosely or-
ganised and cooperate unitedly
The group of manufacturing asso-
ciations submitted their brief as a
"friend of the court " The brief ar-
gued that in its ordinary tunctioning
competition develops - wasteful prae-
tices" which, In the absence of Gov-
ernment regulations, must be mitigat-
ed by “voluntary cooperation" among
the competitors
“It is not ico much to say” the
brief added, "that the development
of methods of securing reasonable
stability and the elimination of de-
structive practices — concurrently
with the continuance of the funda-
mentals of competition—must be ef-
fectively continued if the competitive
system in its present form is to sur-
The Sugar Institute and the manu-
facturers associations want the Su-
preme Court to decide that the price
fixing and other methods of monopo-
Iistie control allegedly practiced by
the Institute do not violate the anti-
trust law
WALLACE C. REILLY, Editer-Manager
MbH Address, Postoffiee Box 897,
Telephone, 2-1205
pressions. For, io a time of high
business activity, when profits are
plentiful, thousands of business firms
invest in equipment, creating a boom,
instead of spreading their orders
evenly over a period of years. The
boom ends when orders drop off and
depression follaws.
We have in America the strange
paradox of an economic system equip-
ped to produce a comfort living stand-
ard for all, but unable to function. To
study the mesne of making it func-
tion is one of Labor’s foremost tasks
today
--
NEWSPKMERS I
their people, and to construe the Con-
stitution so as to accommodate and i
accomplish an end which Its framers
sought to preclude."
The Hawes-Cooper Act is modeled
after the Wilson Act, by which Con-
gress divested intoxicating liquors of
'heir interstate character where
States barred their manufacture and
sale within their own borders The
Wilson Act was held constitt fonal by
the Supreme Court. Observers are of
the opinion that the court will follow
this precedent and hold the Hawes
Cooper Act a valid exercise of the
powers of Congress.
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Newspaper.
Reilly, Wallace. The Dallas Craftsman (Dallas, Tex.), Vol. 25, No. 5, Ed. 1 Friday, February 21, 1936, newspaper, February 21, 1936; Dallas, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1549160/m1/2/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .