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Show UTAH STATESMAN SAYS OUR MELLON ADMITS BUSINESS MASSES ARE NOT CONDITIONS ARE SPOTTY PROSPEROUS WITH SOME LINES WEAK TALKED OF REPUBLICAN PROSPERITY DOESNT MEASURE UP TO REQUIRED STANDARDS. MUCH WASHINGTON, D. C. In a statement which he gave to the adpress of the country recently, Secretary of the Treasury Mellon mitted that business conditions are what might be termed spotty," that while some lines of business are rather weak," some others .were going full tilt." Not long ago, President Coolidge, in discussing business conditions, was quoted by White House correspondents as admitting that there had been some depression and uncertainty, but the danger was past and, in effect, that prosperity was again widespread. - Secretary Mellons admission that presiprosperity Is spotty" and the dential confession that there had been a period of depression are at variance with the lavish claims of universal prosperity which have been emanating from administration quarters for so long. Others have been contending for a long Ume that the prosperity was Just what Secretary Mellon now admits it is, spotty", that Is that certain .special interests, like the steel trust!1 Mr. Mellons aluminum trusts and the DuPont Interests were coining large dividends, but that farmers, workers and the smaller class of merchants and manufacturers were not realising large profits, and that many of them were actually going Into bankruptcy. At the recent convention of the National Manufacturers association, held in Chattanooga, Tenn.. there was skepticism over the administration claims of large turnovers and big profits, even among the manfacturing class. The term preAtless prosperity" was coined tariff-favore- d at that convention, suggestion that while the wheels of industry were turning, most of the producers are not risking substantial profits. Most of the blame is placed on the high cost of production, and the chief factor in that is the enormous tariff duties imact. posed far the Pordney-McCumbe- r XT, There are ether slgne of a lack of confidence of a golden prosperous era ahead under the high tariff and some of the other policies of the Coolidge administration, which showers favors on a few special interests while others are engaged in a sink or swim 1928, when 707. they aggregated $210,928,- - The report shows that a major part of the increase in Insolvencies this year has been among manufacturers. They were of the smaller class, vindicating the claim often made that the high tariff policy of the Coolidge administration is a boon to the trusts and monopolies as the steel and aluminum trusts that thrive under prohibitive tariffs. Further indication that the administration leaders are not confident the next year or so are going to be a golden period may be found in the opposition of President Coolidge and Sec retary Mellon to a tax reduction has more than 9225,900,000. With any such degree of proeperlty as the president has prophesied, the treasury surplus next year should exceed a half billion dollars, and Democrats in congress wish to give the benefit of this sur plus to the overburedened taxpayers. insistence that The Coolldge-Mello- n the tax reduction be held to $225,000,-00- 0 does not fit into the picture the president has painted of a golden era Just ahead. Prof. Irving Fithtr Qivoa Flguros to Show 93,000,000 Mako Little Mora Than Expanses. . NEW HAVEN, Conn. In a copyrighted article released for publication Irving Fisher, professor of economics at Yale university, says that while there la cause for national thanksgiving, the beet available statistics show that the American people are sot yet prosperous in any absolute sense." In fact, .of them, or more than 90,000,000," be asserted, aeem to be making only a little over their expenses. They can lay up, little,' If anything, for a rainy day. To this great majority President statement that the teat which now confronts the nation is proeperlty can have little meaning." Doubtless the whole nation," says Professor Fisher, bas reason to be thankful that it baa so fully recovered from the bltter want of 1921, when the standard of living of the greet majority was far below a reasonable standard of health and efficiency. So great baa been the gala in recent years, both as compared with the depression six years ago and with the .present state of the poverty-strickpeople qf Europe, that the president and employers generally aeem to forget that wa are only relatives well off, Thus President Edgertou of the four-fift- hs Cool-ldge- a en National. Association of Manufactur- ers, at Its annual convention in Chattanooga, was moved to apeak of the abnormally high wages and lower living coats' of the totalled working classes. These and similar utterances state explicitly or implicitly that prosperity has become so great and the incomes of the workers have become so large aa to constitute a very real menace to our minds and morals. Before beginning to worry about this new threat to our national let us examine the statistics of distriwell-bein- g bution. ANALYZES THE FIGURES. The estimate published by the National Bureau of Economic Research that American income In 1928, almost ninety billions of dollars, had broken all records, was followed this mouth by confirming statist lea from the Bureau of Internal Revenue at Washshow that the New York Continuing copyrighted ington. Tbsae statistics income per person annual average Mexican official publication of alleged employed Is now more than struggle. documents, the Hearst newspapers gainfully more than or For example, there has been a will 92.000, nearly one-thir- d say that President Calles ordered heavy slump in building activities. fl.215,000 to be paid to four United the average Income during the depression year 1921. This la a gratifyBuilding permits in the principal cit States senators. lea of the country during October ing recovery, but does not indicate The sum of 91.200,000 was ordered unhealthy prosperity." amounting to 91SS.94S.600 as compared with 9281, 244,390 during October. 1928. paid to three of the four senators, the Pointing out that other estimates dewill a of because article and say, a decrease of nearly 9100,000,000. But of national Income are lower. Professor Fisher goes on; It is in the record of Insolvencies lay in the transfer of funds Calles order on August 5, 1928, But, accepting the higher estimate among the traders and small manufac. turers that basis Is found for Secre- in response to urging from Arturo M. of ninety billion Income for 1926, ao Mexican financial agent in New as to make the as favorable tary Mellons admission that prosperi- Ellas, York. Calles directed that the sum aa possible, the figures available figures or ty is spotty" and extremely so. For the first ten months of 1927, as be charged to secret expenditures for Income distribution Indicate that propaganda," the article more than 93.000,000 peaple out of shown by reports to R. O. Dun A Co., will say. as defaults a were of 19,120 total 117.000.- 000 living the United States there The fourth senator was ordered giv- In 1928 had about 85.00 of Income compared with a total of 17.974 during the first ten months of 1928 and of en 813,090, the article will say, Calles apiece. million peaple 17,664 during the first ten months of issuing the order for the proposed par These ninety-od- d 1925. The number during the first ten ment May 12, 1928, when he ordered comprise the combined poorest and months of this year is the greatest i the Mexican financial agent in New lower middle classes among Professor Wllford I. King's four population during any like period in the countrys .York to deliver 915,000 to Senator history, likewise the liabilities involv- as a gift which the government of groups; they ado 65 per cent and 15 . ed in these bankruptcies. The liabili- Mexico makes to him for the services per cent, respectively, of the ties inovlved in the failures during the he has rendered in favor 'of the proleProfessor King found that first ten months of 1927 reached the tariat of the world " in 1918 these poorest and lower midenormous total of 9432,895,442, an inFacsimllles of the alleged orders, dle classes received a. combined increase of more than 9100,000,090 over with the names of the senators delet- come of 52.8 per cent of the nations those for the corresponding period of ed, will accompany the article. whole Income. I understand that esto timates baaed on later figures, soon rebe published by one of the most sponsible research bodies in the United States will not materially change Professor Kings earlier estimates. If this la tbe case, on tbe Income calcuof 1926. our most prosperous lations i year, the members of tbe two loweat Income groups would receive 47J billion dollars out of ninety billion income for the nation. That is about I Hearst Papers Say Mexicans Pay U. S. Senators - n whole-population- LONG DISTANCE TELEPHONE RATES s ' Effective December 1, 1927 on all call from point in the territory of The Mountain State Telephone and Telegraph Company to point in the territory of any other awodated Bell Company. ' Reductions in Rates to Distant Points ' The gmter the diannee, the greater the reduction. For example, - i rate for three from Phoenix to Boitaa the basic from Denver to Boa-tominutes is reduced from 910.00 to to $&25; horn $7.75 to 6.50; from Boise to Miami, 910-1Helena to New York, to $7.00; from El Paso to New York, 9&40 to $7.00; from Santa Fe to Boston, 98.15 to $&75; from from Cheyenne to Boo-toSab Lake Cty to Boston, 99 JO to 97 J3 to $6J5. surion-tosutioi- 98-0- 0 98-6- . , 0 0; t Many Evening Rates Reduced 1 . The evening ratea (applying from 7 p. m. to 8:10 p. m.) between the pointa affected trill be reduced to a leyrl about half way bo tween the night rate and the new day rates. In order to mini-miie congestion during the night hours the night rates now in um after 6:10 p. m. wiU be held at approximately their pretax levda. j Service Features Retained - . The improvements in service features made last year longer evening and night discount periods, reversal privilege on nabon-toetario- n call, air, irtnrin in effect , . Thor new reduction an additional will tsvc the telephone users of da UM Stmsa 91,500,000 annually. tm-- M M mum dm fm Off Stw as mS $mmm The Mountain States Telephone and Telegraph Co. 3510. 'The poorest class alone, comprisof ing 76.000,000 people (65 per centcent the total) receive about 28 6 per of the national Income, or 834.740,000,. This 000, leas than 8460 per person. clsss Includes not only manual and office workers, but the small business men, many managers and most engineers. rn well. INCOME OF A STANDARD FAMILY. DEMOCRATS - USED TO PAY NATIONAL DEBT HAVE COME MOSTLY FROM ASSETS OF WILSON REGIME MELLON AND MILLS LET SOME OF THE FACTS OUT. SURPLUSES SEEN FOR A L SMITH (Continued from Pago L) Tho three border state of Kentucky 13.. Missouri 18, and Oklahoma 10, have a combined total of 41 electoral votes. The Atlantic Coast states of Now York 46, New Jersey 14, Rhode Island 6, Connecticut 7, Delaware S, Maryland 8, and Massachusetta 18, have a combined total of 109 electoral votes. No Democrat can bo elected preel-den- t of the United Btatea in 1038 without the 45 electoral votes of tho state of Now York, and there lshut one living Democrat who can carry this state, and ia addition thereto combine and win the 136 electoral votea of tho eleven old southern states, the 41 elec, toral votes of tho three border states, and New Jersey's 14, Rhode Island 5 Connecticut's 7, Delaware 8, Mary-lan- ds 8, and Massachusetta IS. WHY FOOL OURSELVES. Bo why continue to fool ourselves and allow the Republican party aid ita board of atrategy, together with tho Republican party press of the United Btates, to name the Democratic candidate? At the recent New York atato Republican party convention. Colonel Theodore Roosevelt, chairman thereof, and selected key-not- e r" so called of the proposed attitude of tho national Republican party In the presidential campaign now rapidly approaching, sounded the plan of battle. Realising that tho heretofore attempt to befuddle and belittle the great economic issues and problems now confronting the Republican party in this approaching campaign and side so-call- Gradually from unexpected sources and in unintended ways, the truth ia coming out that wise and g financial legislation of the Wilson administration and the capital assets turned over account for the major part of national debt reduction brought about by ita successors and, at the same time, account in considerable measure for such tax reductions as have been made. ' far-seein- In arguing for ' tax reduction the incoming congress of about 8225,000,000, Instead, for example, of $400,000,000, aa recommended by tbe United Btates chamber of commerce, Andrew W. Mellon, secretary of tho Treasury, in a statement before tho house ways and means committee: aad Ogden L Mills, undersecretary of the treasury, In an address before tho stockholders of tho Federal Reserve bank of Boston and tho Economic Club of Worcester, both directed attention to revenue of a typo" that had caused tho Mg surpluses applied on the national debt' Nearly all of. that revenue has came from, assets Inherited from tho Wilson regime. The facts leak out when tho present administration wishes to argue against a tax reduction greater than it has recommended. President Coolidge, as well as Mr. Mellon and Mr. Mlllls, has adverted to the big revenue of a char actor that will not recur that Is to sar, revenue derived largely from capital assets handed over at the end of tho WUaon administration. Although they all admit Incidentally that surpluses applied .on the national debt have come from capital assets and back taxes largely from the Wilson regime they go on trying to make political capital by asserting wonders of economy, tax reduction and debt reduction. As to sources of the surplus for 1937, Mr. Mellon told the ways and means committee tho following: If the Items going to mako up tho surplus be analysed It will bo found that 65 par cent of the surplus of is due to receipts on account of the disposal of capital assets, hack Income tax collections in excess of In terual revenue refunds and other Items of a fast disappearing or nonrecurring character. Without theee items, which special and aggregated $414,000,000, the surplus would have been $221,000,000." by tional debt had already been reduced about All right Tho matter may be more clearly presented by the following: Debt peak Aug. SI. Debt Feb., 28, 1931 23420,000,000 one-thir- d. mouths redaction before Wilson's term expired Total red action in about 8 years Reduction before Wll-- , son's term ended 12 2,776,701,641 8,064,704,717 2,776,701,648 Leaving as reduction for about yrs. since..! 5,308, Oil, 069 Now let us see what were the sources of moat of tho five billions plus paid on the national debt: World war capital assets and back taxea..$ 1,700,600,000 Mandatory payments under sinking fund law enacted by Wilson administration 2,074,080,950 Interest and principal on war loans to for850,000,000 eign countries Decrease of war time net balance in general fund 427,000,000 . track them with a wet", or a dry" issue, or a religious" or Issue htd totally tailed to strike fire In the south and western states, and faded with the inevitable fact that the nomination of Governor Alfred E. Smith of the state of Now York by $ 5,051,080,950 the Democratic party this coming 80 all but about $260,000,000 of debt" June, meant tho loss of 100 electoral reduction in the last six yean is ac- votes of the Atlantic coast states as counted for by the foregoing items: ' represented by tho heretofore RepubThe quotation from Mr. Mills throws lican states of Now York, New Jersey, light on the lint Item which he gives Rhode Island, Connecticut, Deleware, as no less than $1,700,000,000. hut Maryland, and Massachusetts, and which la computed by another authoriGovernor Smltha Inevitable election d ty as almaot $2,000,000,000. The on November 6th, every effort within item of over two bllllona resulta the power of tho political strategists from a law of the Wilaon regime. Aa of tho Republican party la being put to the third Item of $850, 000,000 If, to work, and the word has gone out, aa a Republican national committee that Governor Smith must bo defeated for tho Democratic nomination, if such BURPLUSES FROM RECEIPTS 0?" bulletin assumes, the Wilaon administration la to bo criticised for world be humsnly possible. TYPE." war expenditures and loans to associSo In line with' this strategy, the A Mr. Mellon offered a table showing ates In the war, then the Wilson reegotistical eon of one of Americas former presidents, was selected for principal revenue receipts of a non- gime should share largely in any crefor application to the national debt this Job, and he, running true to form, recurring typo Increasing the surplus dit and of payments of principal and interest. attempts to lay the ground work for a in fiscal years 1920, 1927, 1928 estiThe $427,000,000 item is another windThe last two yean were and futile attack upon 1920 New York's brilliant, capable, and pop- mated. His table showed such re- fall. In war time a very Mg net cash ceipts for 1926 to be $215,090,000; for balance waa required. The reduction ular governor under tho 1927, $414,000,000; for 1928, $319,000,-000- ; of that balance account! for a good of Tammany Hall." and for 1920, $75,000,000. Or a deal of the total national debt reducThla secretary of the and surely such a source of debt Navy under Denby, and official mem- total for the four yean of about one tion, ber of President Hardings Jack pot" billion dollan from back Income tax reduction cannot fairly bo credited and cabinet, and collections less refunds; railroad se- wholly to aa administration that lnher. philanthropic whose brother Archie was found to curities ; fedenl farm loan bonds and lted a Mg net balance, less and less bo on tho pay roll of Tea Pot Dome other minor securities: war finance of which was needed as World War Sinclair at a salary of $15,000 per corporation assets; capital stock tax; activities grew fewer. And of course with the end of the year, when the lid blew off on this sale of surplus war supplies, and naval World War and decrease of activities governmental second story artist work, oil Judgment had tho following to say In this key Now turn to Undersecretary Mills caused by It there was need of leas nanote" speech of his. speech which Included the following: tional revenue. Thus were tax reductions made possible while the national "Just a word about these "A man must bo Judged by the company he keeps, and though we do not excessive surpluses of the last few debt waa at the same time being requestion tho personal Integrity of Gov- yean. It is interesting to note that if duced. The tact la, the return to a ernor Smith, ho la sponsored and we exclude back tax collections, less peace time basis has been alow very backed by Tammany Hall. Next to bo. internal revenue refunds, and the re- alow, If measured by the coat of tho tag corrupt yourself. Is to tolerate It ceipts from the disposal of such capi- federal government which continues tal assets as railroad securities, farm to hover around four billions a year la your supporters." loan bonds, assets of the war finance or more than four times the coat of REPUBLICAN SCHEME. and surplus war material, 1916 and even with big Items caused If this kind of political driving was corporation, 1923 there would not. have by the World War taken out, the coat simply confined to the eastern states, in the ayear of the federal government la about hut a deficit of it would be totally unnecessary to give been surplus la the year 1924 a surplus of twice what It was In 1916. It a thought, for In tho language of a Slowly, hut aurely, tacts about Governor Smith after a similar utter- hut $169,000,000; la tho year 1925 1926 sources of tho the la of deficit $93,000,000; year ance by thla gentleman, that the surpluses and other and la 1927 young fellow Just ain't there," la thor-- , aof surplus of $162,000,000; of $635,000,-00- items that furnish the basis for big $221,000,000 Instead talk about "constructive economy" are oughly recognised and appreciated In while the surpluses of 1928 and coming out from Republican administbe territory eat of the Ohio river, from tration sources such as Mr. Mellon and but press dispatches disclose the fact, 1929, exclusive of special receipts estimatare named above sources, the Mr. Mills. ne Is to that this political clap trap ed at $187,000,000 and $199,000,000, replaced in printed pamphlet form by apthenational Republican campaign spectively. Of the $2,000,000,000 Timber Is an agricultural crop-gr- own retired from surof committee, and the western and south, proximately the debt from the soil, any tore stem of endfive fiscal yean era states flooded with It, In an endea- plus during the U. S. department of agriculture. vor to stem the , tide of Governor ing June 30, 1937, no less than $1,700,-00- Timber growing la usually not a mala accounted for by these special Smith's inevitable nominations by the no jor project on tbe farm hut timber and which) Items, (of temporary Democratic party, and his subsequent less than $900,000,000 from the reali- products often bring in a substantial election on November 6. part of the Income. Timber It a farm of capital assets " If the delegates.to the Democratic sation Mills Mr. thus admits that there savings bank to he drawn upon In national convention of thla coming would have been large deficits In 1023 times of extra need. Thrifty growing June, prefer tbe pleasurable .pastime and 1925 had the Republicans not In- timber rightly protected and cut often of paying hotel bills for a couple of more profit than money at 6 herited great as seta from' the Wllaoh yields weeks and 'engage In the enlightened Interest. cent billions the of pe two and that qf occupation of cutting each others regime, retired from surpluses In throats and wringing each others national debt the last few years, nearly all came MAKE $40.00 to 860.00 WEEKLY necks, while the Republican party In- from ltema of revenue. directly nominate a candidate for Let us aee what bearing then facta An old established Company seeks a them, then the Democratic electors of as by Mr. Mellon and Mr. capable Dealer for the entire County the United States, who support the Millspresented have on debt reduction and tax of Salt Lake. We manufacture 100 Democratic ticket, might aa well reM. Lord useful every-danecessities, extracts, main at home and play with the dog reduction questions. Herbert few weeks ago that the national apices, medicines, etc. On the mara said for their election upon any good day 1919 SO, debt reached Ita peak August ket 25 yeara. Easy to build permanent vote will do them. and that it stood big paying business. No experl eace, $26,596,701,648 On tho other hand. If they would rea practically no capital needed. Write like to see another Democratic presi- Juno SO, 1927, at $18.511,906.031 duction of $8,034,794,717 In a little less today for full particulars. G. C dent of the United States, represent- than CO. Sept 1625, Bloomingyears. President Coolidge ing their political faith, and looking In an eight before the Union league ton, UL" address economic and after their political or Philadelphia a few evenings ago (Nov. 19.) rights taking the oath of that office evidently took pride in saying the na on tlie 4th day of March, 1029, then those of us residing in tho western states must snap out of our Rip Van Winkle attitude, register as DemoHOMER crats, and sea to It with our voice and vote that tho delegates that leave the ' western states to represent the Democratic electors thereof at the national convention of the Democratic party in CO. 1929, are real honest to. God Democrats. Waa. 5092 IM South State St Wo must see to It with our voice "Tho OKy and County Building ii Still Opposite" and vote, that these men and women who will represent the western states la a national selection of Democratic candidate for president and vice president of tho United States, leave HERE IS MY SUBSCRIPTION their several elates with but one desire end intention, and that tho noml. nation of Governor Alfred E. Smith of tho state of Now York to lead the forces of their party la 1928, and who 111 ATLAS BLOCK, Salt Lake CSty, Utah. ' will not represent a spare tiro, and a fifth wheel for the Republican party Inclosed find cheek fer which, pleaae Bend me The Utah at tho following November election. mnntlia. Statesman fer years Buttermilk has about the same value si skim milk. Its food value may SUBSCRIPTION FRICES-- 41 Year; Me 6 months. e be increased by adding cream. By this plan It will contain all the origi... Street Name nal constituents of whole milk. Tho more orten Is buttermilk of casein State easily digested than that of sweet - 8635,-000,0- aee-on- non-recurri- smoke-scree- n 0; 0; - For the standard family of five out of this group of 76.000.000 poorest people there would be $2,300 income little during 1926. This would be but minimore than enough to buy the mum requirements of an average family of five among industrial or office workers In New York City, as estimated dnrin 1926 by the National Inre dustrial Conference board. The board's budgets allow nothing for emergencies for a vacation, for unemployment, for old age, for savings Even with these essenof any kind. tials omitted, the budget for the worker's family la $1,880, or only $420 less than the average per capita income of the poorest class majority during 1926, while the office workers family budret la $2119, or only $181 less. The budget prepared by the Federal Bureau of Labor Statistics, which represents a 'minimum of health and decency, approximates very closely to the average Income for the poorest class. The rverage cost in several cities of this minimum budget aa calculated by the Bureau of Labor. Inc . In 1926, waa found to be $2432.39. This la $133 higher than the estimated average Income of $2300 for tbe average family of five among the 78.000.- 000 poorest people during that year, if we use the apportionment of national Income for this population group made by Dr. King in bis book on Wealth and Income. And for the poorest 93.000.- 000 of the combined classes, there and lower middle would be about $117 per family left over to provide for all omitted items above- the 'minimum of health and decency below which a family cannot go without danger of physical and moral deterioration, to quote the words of the Bureau oif Labor Statistic!. With only an estimated 3117 of income per family above the minimum of comforts and necessities during a year that Is often called the most prosperous ever known, this majority of the American people cannot yet be said to be In danger of having too much Income. Those In tbe lower income groups must surely be bard put milk. to It to make ends meet. con-feren- 07 WEST 0 y THOMAS ' Abstracter HOMER REALTY . THE UTAH STATESMAN Fy - |