Show THE SALT LAKE TRIBUNE SATURDAY Liberals Stir Rumors of Third Party Has Rails Cure Power Firms Must Writer Declares Have-Mone- More Than 3000 Td Madison Sleeting April 22 W)— Gov- ernor Philip P La Follette Friday night Issued a call for a meeting of liberals In' Madison next Thursday night which may be the forerunner of a national third party The governor announced the meeting in the last of four radio speeches In which he called for organized public action to rout the Repression and for the third time rapped the trend -- of the Rmsevelt administration's recovery policies La Follette said he 'had invited between 3000 and 4000 persons with whom he had talked in the last three months At a press conference the governor said he expected the attendance would be mainly from the midwest but there might be others from eastern states including New York He refused to divulge any names Noncommittal on Alms The governor was noncommittal an whether he would seek a fourth term or run for the United States senate Possibility of a third party li) 1940 led observers to speculate whether he might retire from office and devote his time to new party Governor Phil La Follette WisGives answer consin’s chief Organization worjc La Follette praised the ‘brilliant to carriers’ plight leadership” of the Roosevelt administration for showing the necessity for organized teamwork but said: “Instead of organized action to produce more the main line has f v VI ’ US to Cling - ' ' f MADISON been organized action to produce less— on the one hand a policy of restricting production on the farm and in the factory and on the other hand keeping millions of people out of production through relief doles To Neutrality President Refuses By DOROTHY 'The latest proposal that the R F C lend money to the utilities is just another measly dose of aromatic spirits of ammonia to a heart whose illness needs immediate diagnosis and real curative treatment Utilities are a 12 to 13 billion dollar industry In this country They need about two billions of new money One reason they need money is due to past abuses to capital' write-up- s which have however been drained off in the course of the last eight years The other reason Is due to perfectly normal expansion In eight years the industry has been constantly expanding and has 'nevertheless raised practically no new money Now It la ready to absorb a huge amount of fresh capital and trans- -' late it immediately into construction work that would create great activity and equal or exceed in g Its effects-th- e whole " program s Due to the fact that the turn over their money only about once in five years as contrasted with general manufacturing which turns it over more than 'once in 12 months there is many times as much capital behind every gross dollar in utilities as there is in ordinary business and therefore the cost of money becomes the first or second most Important item in the utilities' costs and the price of money is a decisive facpump-primin- utility-industrie- nor-mal- ly tor Cheap Money Inasmuch as worldwide monetary policies plus those of this and made-work- ” administration have created the cheapest money rates in two genSolves’ Rail Problem 22 UP)— erations the last years and the WASHINGTON April He did not disclose full details of moment would seem an Informed officials concluded from present his own plans for “wealth-creatin- g ideal time to finance utilities and work” but asked and answered this President Roosevelt's statements at to raise money both for bonds and a press conference Friday that the preferred stocks and for common question: “Why don’t the railroads mod- United States neutrality policy to- equities ernize themselves? Because they The latter motley money that are plastered from cellar to garret ward the Spanish civil war would will take risks is especially needwith mortgages— with bonds repre- continue in effect ed The utilities don't need to insenting values that have largely Many delegations representing crease their debts They need to disappeared A government that saw of the Barcelona gov- Increase their working capital the problem and had the courage supporters The capital structure ought— so come to Washington ernment have to act could cut through the red I am told by experts— to be built recently seeking a change In the up of about 50 per cent bonds tape in a few months “First require an engineering program so as to permit the ship- 25 per cent of preferred stocks survey (not a banker’s but an en- ment of arms to the government and 25 per cent of common common now is only about gineer's) to determine what is needArms shipments to both 15 But cent in the ed to give our country the most forces per industry as a efficient transportation system in Spanish factions are forbidden un- whole And certainly the governthe world Next order that it be der the present policy ment which has adopted the “prudone Then a judicial proceeding The president in reply to' a ques- dent investment" theory ought permitting the new capital financ- tion as to whether he thought the to be logical and not encourage ing It to step in ahead of the old neutrality policy as applied to Spain the Industry to increase Its debts! bonds The reason why the utility ino said he had been satisfactory “Thus we would put three or four thought It had been so far as was dustry is suffering from capital billion dollars of Idle capital to work possible under the law anemia is not because money is create millions of new jobs and The president said the neutrality scarce It is plentiful Not bewhen done we would have g act had a twofold objective: To cause rates are high They are real to show for our money" keep the United States from be- the lowest in history It is suffering because the incoming involved in a war and to aid to one side against vestor be he a large investor or a avoid giving Union Rejected the other or of penalizing one side small one won't buy utility stocks Why should he? Would you? And BUTLER Pa' April 22 (UP)— as opposed to the other Workers at the Columbia plant of He added the act was difficult to he won’t buy utility stocks because he hasn’t the remotest idea the American Rolling Mill company apply Persons close to the state depart- what the government is going to today voted 1243 to 402 against certification of a Committee for In- ment said that neither the president do next in the power field dustrial Organization union as the nor Secretary Hull was satisfied Need Policy collective bargaining agent for the with the act as Its stood but they All that is necessary to rehabilidid not favor its repeal plant here tate the utility Industry is a government policy Almost any kind of a policy But a policy A clear policy A policy that demarcates the fields of government operation and of private operation and sets definite terms At present if an investor buys utility stocks his chief gamble is not on the efficiency of the company’s management It’s on what may be going on in the mind of the president ' and his advisers The utility problem can be solved expeditiously and easily and Where provided there is a desire to solve it and not to keep alive a “power But At Finnage issue" for the benefit of politicians But one suspectq that the would ydu expect to find sports-clothgovernment prefers a power isthat are right up to the sue to recovery just as French “statesmen”— savs the mark— afminute not only in style 'but In ter the war preferred a reparanew ideas tions issue to recovery The government if it wants r solution and recovery can take one or two courses In areas where We Are Featuring it is operating it can create a power pool on the English pattern those smart new which means simply stated to throw ail power Interests— public Herringbone and private generating plants and transmission lines— together c quasi-publimake a corporation valorize everybody's investment and save the government from running any project like the JT V A at an enormous operating deficit paid for by you and me Or if the administration has decided that government should acquire large areas for public opthey come In tan Shantung eration then define the geas for diminutive color with bright 10 years In advance and establish flecks Long sleeved a policy of buying out the present investors progressively paying Priced At $165 dollar for dollar of invested capital The latter course is absolutely i essential if what wp are interested in is the reinvestment of private Gabardine-Bedfor- d utility capital and not an investment of political demagoguery Other Course The government cam of course compete in certain areas with the private utilities and then buy them out at a third or a fourth of Those popular “Gabs' and Bedford Cords pleated Styles in cost Tans Greens and Browns It can bankrupt them and buy $10 them at a fire sale But this is an Priced At idiotic procedure Because it will simply mean that In areas where the government is not operating where it cannot operate at least for many years where private industry must therefore furnish the services it will be impossible to get money Who is going to invest in an Industry that may be AAIN 171 SO forced next week or next year to its knees? If the investor knows that eved if the company whose To Amend Policy - - some--thin- Spring Time cated I may add that when the British took over certain private utilities In connection with setting up their power pool sor igrid they capitalized earning prospects a much more generous arrangement than is proposed here and the socialist economist Ernest Davies’ In' a pamphlet dealing with the problem of the transfer of Industries from private to public enterprise that compensation recommends ahould be based on a combination of capital valuation plus the potential earning power of the conwants is What the consumer cheap power what the taxpayer wants is public enterprises that pay for themselves without his annual subsidies and what the private Investor wants is a little ecbnomic security But we guarantee bank deposits and1' turn utility Investments into lottery tickets and expect the public 'to exchange their guarahteed money for a sweepstake bet! Define the Plan! If the government would define its power policy: that 19 to say make clear where it intends to operate and under precisely what conditions private enterprises already in the field: lay down rules governing any transfer from private to public ownership which would protect the private Investor and find a way by which reorganization under the holding company act can be affected gradually and cooperatively —if it would do these things there wouldn't be any utility problem and there would be no difficulty whatsoever in raising two billions of utility Investment dollars and putting them to work Were this problem straightened out you eould raise a hundred dollars of private money for every single dollar that the utilities will borrow from the RFC The basis for an increase of public Investment can be 'found It was nearly found in early autumn of 1936 before the power pool committee was suddenly dissolved We respectfully suggest that congress demand that it reconvene Its members were Owen D Young Thomas Lamont Louis Weahle and Alexander B Sachs vis-a-v- is Copyright 1938 for The 1938 Douglas Calls Ruling ‘Astonishing’ in Announcing Battle THOMPSON stock he buys should be socialized his Investment will still be protected then he will invest In other words he will know that he may be compensated but not confis- cern 23 Plane Builder Will Figlit NLRB Order y Dorothy Thompson Suggests Courses by Which Government Can Take Over Utilities Without Shackling Capital Gov La Follette jBids APRIL MORNINQ -- Cal April 22 the national labor relations board has reached some “astonishing conclusions” in ordering reinstatement of employee at the Douglas Aircraft company plant Donald’ Douglas president announced Friday ha would “fight to the end” Recently the company was ordered to abolish at its Northrop plant what the United Automobile Workers terms a “yellow dog” contract which made employes agree to forfeit $15 each if they struck Orders Rehiring The decision protested' by Douglas Friday was one ordering reinstatement of 45 workers at the main plant let out because of the strike last year and finding it fostered a company union Douglas said the order required reinstatement with back pay “of some of the ringleaders who a year ago sought to disrupt pur plant and businessby a needless and vicious sitdown strike” Some of Them Convicted ' “Subsequently" ho said “after felony indictments some of these men were convicted in our courts on testimony that showed brazen disregard for the law and property by the defendants “We are going to fight this to the end “If refusal to bow to the demands of professional agitators and industrial racketeers 'is unfair labor practice then perhaps the ’ board is right If on the other hand justice and democracy still rule in the land and constitutional guarantees are still in force then the national labor relations board has reached some astonishing conclusions in its latest decision Involving the affairs of this company” SANTA MONICA UP) — Declaring -- ziu-dow- Friday’s Unlucky SAN FRANCISCO April 22 (UP) —Fire broke out Friday in the National Broadcasting company offices here in approximately the same place and at about the same time as another fire last Friday In Friday’s fire an explosion of paint caused slight damage The paint was being used in redecorating a room damaged by the fire last week Sat only ! Special! 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