anaheim-gazette 1924-05-15

THE CRIME OF BEING THRIFTY The chief attack upon Secretary Mellon is the charge that he owns stock in corporations which have had some federal taxes refunded or reduced. Upon this fact there is based the innuendo that there is something irregular about the whole proceeding. Corporations have very prominent Democrats in the capacity of stockholders and directors have had their federal taxes reduced or taxes illegally collected refunded without anyone rising to insinuate that there was something crooked about the transaction. There has been nothing brought out to justify in the remotest degree any charge that Secretary Mellon himself, directly or indirectly, used any influence with the income tax bureau to have an adjustment of the federal taxes levied against corporations in which he held stock or that these corrections and refunds would not have been made had Mr. Mellon not held the office of Secretary of the Treasury. In other words, the attack upon Secretary Mellon is the basest kind of demagogy. It is a part of the campaign of abuse which is being waged against any one who has exhibited any evidence of thrift appeared in a recent issue of the New York World. It was an attack upon Senator Gooding, of Idaho, and Senator Stanfield, of Oregon, insinuating that these two United States senators had, by reason of their official position been able to obtain certain favors from the War Finance corporation in the form of loans for over $1,000,000. government in the minds of those in this country who are carrying on a propaganda against men in public life who have by their industry and thrift accumulated something. COOLIDGE APPEALS TO COMMON SENSE If the President's speech before the Associated Press at New York was a "sedative," as some people have described it, it was exactly what the country needs. We have had stimulants and irritants so long and so voluminously that anything in the nature of a sedative cannot be otherwise than beneficial. With public and private scandal manufacturing committees at work and with a dozen or more interlocked organizations of socialistic purpose striving to plunge the Nation into any sort of radical experiment, it is well that some man of sound sense and courage rises to present an example of calm thinking while he teaches the doctrine of individual endeavor and thrift. Sensationalism has held the stage so long that the Nation's nerves are on edge and a sedative is not out of place. Those who criticise the President's address because it manifested studied caution are, perhaps unwittingly, paying it a high tribute. Caution is far too rare in those days of recklessness in public utterance by men some of whom have hitherto been held in high esteem. It takes no small degree of courage to be cautious at a time when most of the aspirants for political favor are vicing with each other in the effort to win support by extremes of extravagant utterance. Once each year the American people like to attend a circus to observe the antics of a whirling dervish, a thrilling trapze performer or a snake-like contortionist, but throughout the remainder have taken practically no from a legal dictiments them for co-refusing to and the other whom Prespected or missed from Mr. Franklin his party nor comparison with publicanism honesty, etcern for the forlorn hope their ability as may be bings of things of the land, if possess gust with writing the Serparison has the Republic Democrats. sent adminisf confident of officers will renew PROCESS State wild Sheik, in w dvents of moni in California An indictment charges of o perity by falli Superior The Indictment an investe Monarch by the State office in Los Able, chief ness before quarry. Another phase of this propaganda of hatred and suspicion directed against any one who has exhibited any evidence of thrift appeared in a recent issue of the New York World. It was an attack upon Senator Gooding, of Idaho, and Senator Stanfield, of Oregon, insinuating that these two United States senators had, by reason of their official position been able to obtain certain favors from the War Finance corporation in the form of loans for over $1,000,000. Live stock corporations in which these two senators were interested negotiated loans from the War Finance corporation. The charge was not directly made, but the insinuation was carefully dropped that these loans were obtained through influence Mr. Gooding and Mr. Stanfield had by reason of their being in the United States Senate. The charge was directly made that they had benefitted from the War Finance corporation at a time when their fellow citizens and neighbors were unable to obtain loans from that corporation. The records of the War Finance corporation show that a livestock company in which Mr. Stanfield is interested obtained a loan of $250,000, and it was all repaid. Three companies in Idaho obtained loans in the aggregate of $129,000. One of these companies in which Mr. Gooding himself is interested, borrowed $34,000. The rest of the loans were made to companies in which relatives of Mr. Gooding were interested. All of these loans were repaid. There was no law violated in making these loans. Quite the contrary. They were made in strict observance of the law creating the War Finance corporation. The proper securities and collateral were put up when the loans were negotiated. The proper interest was paid by the borrowers. In neither case was there any special favor shown the corporations in which the senators or their relatives were interested. The fact that livestock loans in Idaho were in excess of $4,385,000 and in Oregon in excess of $4,750,000 clearly shows that the companies in which Senator Gooding and Senator Stanfield owned stock were not favored above their neighbors and obtained through the senators no preference of any kind. Attacks of this character, coming with increasing frequency, are a part of a well organized campaign that is being carried on from some pulpits, from the platform, and through the public utterance by men some of whom have hitherto been held in high esteem. It takes no small degree of courage to be cautious at a time when most of the aspirants for political favor are vicing with each other in the effort to win support by extremes of extravagant utterance. Once each year the American people like to attend a circus to observe the antics of a whirling dervish, a thrilling trapzee performer or a snake-like contortionist, but throughout the remainder of the year wise men give their attention to the more substantial and essential activities of life. There was no occasion for President Coolidge to endeavor to start something new in his address at New York. Last December he outlined to Congress a very comprehensive constructive program. That list of subjects for the consideration of Congress covered more than could probably be accomplished even if the Legislative Branch of the Government were permitted to work with utmost diligence. Unfortunately, Democratic leaders have seen fit to utilize investigative activities as an excuse for delaying the work of Congress and there is danger that much of the President's program will be neglected. In such a situation as that the President was not only wise but tactful in avoiding in his New York address the presentation of any new issues that might divert attention from the important measures he commended to Congressional consideration when he delivered his regular message on the state of the Union last December. MAKE THE COMPARISON Franklin D. Roosevelt, Assistant Secretary of the Navy under Wilson, wants the people to compare for "efficiency and honesty" the Wilson and Harding-Coolidge Administrations. If there are any citizens not familiar with the facts, they should immediately make the comparison. The evidence is in documentary form and accurate conclusions can be readily drawn therefrom. In making such a comparison the investigator will also be making a comparison between the methods of Republican and Democratic committees of inquiry. Following the end of the Wilson Administration the famous Graham committee of the Republican House looked into the records of the conduct of the war, and uncovered such an amazing amount of graft, inefficiency, and Idaho were in excess of $4,385,000 and in Oregon in excess of $4,750,000 clearly shows that the companies in which Senator Goodling and Senator Stanfield owned stock were not favored above their neighbors and obtained through the senators no preference of any kind. Attacks of this character, coming with increasing frequency, are a part of a well organized campaign that is being carried on from some pulpits, from the platform, and through the columns of many newspapers to arouse the suspicion and hatred of those who have not against those who have. It is a part and parcel of the propaganda that is being conducted in an effort to make the average man believe he is the victim of an "invisible government" in control of rich and corrupt influences. Some of those who engage in this campaign are merely cheap politicians. Some are demagogues, even though they control newspapers and stand in the pulpit. Others are vicious. All are destructive, and if permitted to continue their work unchallenged will succeed in bringing about a state of public mind that will constitute a grave menace to the stability of the American government. This sort of propaganda has flowed and borne fruit in Russia. Under the bolsheviks, Russian communities are ruled by committees composed of "poor peasants." No man who owns property of any kind, even land, no one who conducts any sort of business, is permitted to sit upon these committees, which constitute the local government throughout Russia. On the other hand, the personnel is composed of the shiftless, the worthless, the drunkard, the chronic loafer, the habitual fault finder, the venal and the vicious. Evidently this is the ideal form of Following the end of the Wilson Administration the famous Graham committee of the Republican House looked into the records of the conduct of the war, and uncovered such an amazing amount of graft, inefficiency, and inexcusable extravagance as has astounded all who have read the committee's report. Every charge made by that committee was substantiated by undisputed records of the War Departments and other executive departments as they were conducted by the Wilson regime. The aircraft scandal was made the subject of an exhaustive inquiry directed by Charles E. Hughes, now Secretary of State, in which the court martial of several officers was recommended. They were all whitewashed by Secretary of War Baker with the concurrence of Mr. Wilson. After the Republican Administration came into power more than ninety indictments were returned by grand juries, all of them growing out of war contracts with the former Democratic Government. Contrast the procedure of the Republican committees with the Democratic committees that are now combing the Government for an excuse upon which to hang an indictment. The Republicans assembled facts, figures and documentary evidence which enabled the Department of Justice to convince a grand jury in almost a hundred instances, and secure convictions in most of those that have come to trial. The Democrats have proved nothing except that a former official told a lie which injured nobody but himself. Their committees ANAHEIM GAZETTE of those in carrying on 'a public life and thrift before the New York was people, have what the he had stimulong and so nothing in the not be other public and resturing comma a dozen or situations of so to plunge at radical some manrage rises toalm thinking doctrine of intrift. Sensaage so long are on edge of place. The President's tested studiedittingly, payation is farrecklessness when some of held in high all degree of a time when political favor in the extremes of Once each like to atthe antics hurrying trap-like contorne remainder have taken volumes of testimony, practically all of which is valueless from a legal standpoint. But two indictments have been found—one of them for contempt of the Senate for refusing to answer certain questions, and the other against an individual whom President Harding long ago suspected of graft and summarily dismissed from the public service. Mr. Franklin D. Roosevelt is doing his party no good when he invites a comparison with the record of Republicanism, whether on grounds of honesty, efficiency, or general concern for the public welfare. The forlorn hope of the Democrats lies in their ability to conceal as thoroughly as may be the disgraceful shortcomings of the Wilson Administration, and, if possible, to dissipate the disgust with which the people are observing the Senate investigations. Comparison has always been courted by the Republicans and shunned by the Democrats. The leaders of the present administration are urging it now, confident of the verdict which the voters will render. PROMOTER WANTED State wide search is on for J. A. Shelk, in whose apprehension residents of more than a score of counties in California are interested. An indictment containing eleven charges of obtaining money and property by false protenues is on file in the Superior Court in Los Angeles. The indictment was returned following an investigation of the affairs of the Monarch Rand Mining Company by the State Corporation Department's office in Los Angeles, with Walter D. Able, chief engineer, the chief witness before the grand jury in its inquiry. Barbara, San Joaquin, Stanta Clara, San Benito, San Francisco, Santa Clara, Solano, Sonoma, San Diego, Tulare and Ventura. BOOTLEGGERS UNION ENTERS A PROTEST Repeal of the Volstead Law, They Declare Would Wreck an Infant Industry. Word reached Congress Friday that the Bootleggers' Union, meeting in solemn convention the 1st inst., at New York, unanimously adopted resolutions protesting against modification of the Volstead Act to legalize 2.75 per cent beer. A petition forwarded to Representative Griffin, Democrat, New York, said delegates from locals along the Atlantic Coast attended the meeting and were convinced that "various ill-advised and misguided reformers have initiated a vicious propaganda to break down the drastic and wholesome provisions of the Valstead Act." Declaring the object of bills to legalize beer have the "avowed object of encouraging the consumption of the so-called lighter drinks to the detriment of whisky and other alcoholic beverages" the petition said that enactment of such legislation would "undermine and perhaps utterly destroy an important industry which this union, with its affiliated locals, has palmstakingly built up at great risk of an immense capital, not to speak of the risk of personal liberty, many of our members having incurred jail sentences and the confiscation of their personal property in the pursuit of their chosen calling." It has been the settled policy of the government to encourage and protect infant industries, the petition said, adding that the bootlegging industry An indictment containing eleven charges of obtaining money and property by false pretenses is on file in the Superior Court in Los Angeles. The indictment was returned following an investigation of the affairs of the Monarch Rand Mining Company by the State Corporation Department's office in Los Angeles, with Walter D. Able, chief engineer, the chief witness before the grand jury in its inquiry. While the charge against Sheik involves the taking of money in Los Angeles County, sometimes in amounts much less than called for in the shares of pre-organization stock for which he took subscriptions, the authorities believe he obtained money in this manner in other counties in the state. An examination of the Company's books disclosed that approximately $336,000 had been received by Sheik and others in the pre-organization campaign, that no money is on hand and that the company is in debt. The Monarch Rand's properties are located near Randsber and the company's headquarters are at Bakersfield. Among the mis-representations attributed to Sheik in his campaign for money were that no charge would be made for commissions for the sale of stock; that the sale was under the direction of the Corporation Department; that there would be no bonus stock; that he had paid in $25,000 to carry on the work and that there was $1,000,000 in gold blocked out and ready to ship. The department's inquiry made at the instance of Edwin M. Daugherty, State Corporation Commissioner, and the results of which were given to the grand jury showed these statements were without foundation. The control of the company was recently taken from the men who formed it and placed in the hands of a committee of stockholders who are seeking to place it on its feet. They say they have strong reasons to believe they will be successful. The counties where stock was sold include Alameda, Butte, Contra Costa, Fresno, Kern, Kings, Los Angeles, Marin, Merced, Napa, Orange, San Bernardino, San Louis Obispo, Santa Anaheim, California From Cow to Baby Direct from Sanitary Dairies comes the Milk we sell. When you get our Milk, you are certain to get it in its purest and most healthful form. It all comes from satisfied, contented cows. It's food and drink combined. Babies like it—and adults greet it with equal joy. Use it for every purpose—for nourishment and drink. Let us put you on our list. Aneheim Creamery Company PHONE 666 Anaheim, California How to Avoid Grade Crossing Accidents Automobile drivers, when approaching railroad crossings, should go into second speed. Then look and listen. Absolute control thus is assured. Stop or go ahead, as conditions warrant. During 1923 one hundred and three persons were killed and four hundred seventy-four injured at highway crossings on the Santa Fe Railway. These regrettable accidents might have been avoided if these motorists had been careful. The rapid increase in these grade-crossing accidents is due to the greatly increased and general use of the automobile in the hands of drivers ignorant or willfully disregardful of the perils which attend careless driving. Sometimes it is the careless driver alone who pays the penalty, but usually innocent ones pay it in part or entirely. Automobiles should be safer at railroad crossings than horses, because they do not become frightened and are better controlled; but the opposite seems to be the case. An experienced driver of horses describes the proper method of approaching a railroad crossing as follows: "Gather up the reins tight, take out the whip, and bring the horses to a walk." An experienced automobilist advises: "Always go into second speed." The method is precisely the same in either case. The driver has absolute control, can stop or go ahead as conditions demand, and is alert to the situation. If all drivers would but adopt this simple rule and adhere to it faithfully the problem would be solved. What a saving there would be of priceless human life, of grief untold, ambitions wrecked, and hopes lost forever! You are urged to give this “Safety First” suggestion most earnest consideration. Better be safe than sorry. W. B. STOREY, President The Atchison, Topeka and Santa Fe Railway System carried on at the following points by committees with the chairmen mentioned for each: Fullerton, Waldo O'Kelly; Huntington Park, L. B. Crossman; Torrance, J. W. MacDowell; Glendora, George D. Wimp; Bell, Geo. W. Myers; Santa Monica, Harry M. Gorham; Hollywood, C. E. Toberman; Alhambra, Judge W. M. Northrup; Glendale, Charles B. Guthrie; Redondo Beach, C. T. Funk; Claremont, Frank Wheeler; Watts, J. A. Martin; Norwalk, C. E. Irish; Anaheim, E. E. Smith; Burbank, J. C. Crawford; Whittler, C. A. Carden. Organization of membership committees is under way in more than 40 other communities in the Greater Los Angeles area. The Los Angeles membership drive is being pushed forward steadily while the work of informing the public concerning Southern California's opportunities and its necessities along industrial lines is going forward on an immense scale. Hundreds of thousands of pieces of literature are being put into homes weekly, besides the publicity through other channels. VERY RARE OCCURRENCE Now and then a man is found who is proud of being in a position to pay taxes for the maintenance of the best government on earth. Thrift is not for the "swift." Giveyour children a REAL HOME to remember WHAT are your own happiest memories? Give your children a REAL HOME to remember WHAT are your own happiest memories? The old home—the yard you played in, the trees you climbed. And the quiet, pleasant hallway, with mother waiting for you. You cannot think of a mother without associating her with a home—a house. You can and should have a home that will make you and your family happy. Figure up what you have paid out for rent and for other things that represent no permanent investment—and realize what you could have been doing toward owning your own home. Talk the matter over with your dealer. He knows local conditions; he knows the answers to your building problems; he wants to give you the kind of service that will make you a business friend of his. Gibbs Lumber Co. Fullerton Anaheim Placentia Is Five Cents on the Dollar of Valuation too Much to Earn? If a business worth $10,000 earned $500 net income in a year (or $41 a month), would it be considered an unreasonable profit and proof that its prices were too high? The railroads are in that situation today. The 1923 net return for the whole country was less than 5 per cent. As of December 31, 1919, the Interstate Commerce Commission gave to the railroads a tentative valuation of $18,900,000,000. With actual figures for 1920, 1921, 1922, and with 1923 conservatively estimated as $1,100,000,000, there has been invested in the railways since this tentative valuation a net amount of $2,371,583,000, making the value as of December 31, 1923, $21,271,583,000.. On this amount the Railways in 1923 earned an aggregate net operating income of approximately $997,610,000, or 4.69 per cent. The Government guarantee of earnings expired August 31, 1920. If this guarantee had been continued—as repeatedly but erroneously claimed—the Government would owe the railroads more than a billion dollars. The 1923 net return for the whole country was less than 5 per cent. As of December 31, 1919, the Interstate Commerce Commission gave to the railroads a tentative valuation of $18,900,000,000. With actual figures for 1920, 1921, 1922, and with 1923 conservatively estimated as $1,100,000,000, there has been invested in the railways since this tentative valuation a net amount of $2,371,583,000, making the value as of December 31, 1923, $21,271,583,000. On this amount the Railways in 1923 earned an aggregate net operating income of approximately $997,610,000, or 4.69 per cent. The Government guarantee of earnings expired August 31, 1920. If this guarantee had been continued—as repeatedly but erroneously claimed—the Government would owe the railroads more than a billion dollars. Last year the roads handled a record volume of business but could not earn the fair return of 5% per cent to which the Interstate Commerce Commission, under the Transportation Act, has found they are entitled. If the roads cannot earn 5% per cent in a big year, what will they do in a small year? The Transportation Act provides that if a road in any year earns more than 6 per cent it shall pay one-half of the excess to the Government. The Act is, therefore, a limitation rather than a guarantee. GIVE TRANSPORTATION ACT FAIR TRIAL The Transportation Act should be given a fair test and its merits judged by the results of a normal period of reasonable length. The year 1923 was the first since the war under conditions approaching stabilization. What the railroad situation demands just now is not more law but more confidence. The railroads have emerged from the welter of the war, restored their morale, made enormous investments of new money, and in 1923 handled a peak business with universal satisfaction. The Transportation Act is the only really constructive railroad legislation of a generation. Previous acts were almost solely repressive. In framing the Act the public interest was paramount. The Act directs the Interstate Commerce Commission to "give due consideration to the transportation needs of the country and the necessity of enlarging railway facilities in order to provide the people of the United States with adequate transportation." Give the Act a chance. Don't amend it. If the roads are let alone they should make as good a record for efficiency this year as last. Constructive suggestions are always welcome. C. R. GRAY President. Omaha, Nebraska, April 1, 1924. UNION PACIFIC SYSTEM