Newspaper Page Text
hJmhingtrm
Mojrt-gdround
JV j & drew Pearson
l»i ll*i A AAA *’i lilHJUlllilul
WASHINGTON. - Some people
are wondering whether the fact
finding board for the meat packing
industry took the trouble to read the
newspapers. If so, they might not
have recommended that the house
wife bear the main burden of the
cost of increased wages in the meat
packing industry.
The fact-finding board, which in
cluded Dr. Edwin E. Witte of Wis
consin university, Chief Justice
Raymond W, Starr of the Michigan
Supreme court, and Clark Kerr,
former chairman of the meat pack
ing branch of the war labor board
—three able men—decided that a
16-cent pay increase was fair and
equitable for meat packing work
ers. But they added that only five
cents of this was "absorbable by
the meat industry without price or
subsidy relief.”
In other words, the fact finders
recommended that the big meat
packers could pay only 5 cents of
the 16-cent wage increase out of
their own pockets. The rest would
have to be passed on to the consum
er or the government. Their report
was filed February 7.
However, early in December,
long before the fact-finding
board was appointed, a number
of smaller meat packing plants
had already signed contracts
with the CIO and AFL for 15
cents an hour pay increase with
out any strings attached re
garding increased meat prices.
The small packers who signed
such agreements included Hygrade
Food Products of New York,
George A. Hormel of Austin, Minn.,
and others in the Chicago area.
Apparently, the fact finders
did not take this into considera
tion. Apparently also, they ig
nored the fact that Swift and
company previously had agreed
to a pay boost of 10 cents an
hour without any strings at
tached regarding increased
meat prices to the housewife.
For, despite Swift’s offer of 10
cents an hour and the smaller com
panies’ increase of 15 cents, the fact
finders recommended that only
5 cents of the 16-cent increase could
be paid for by meat packers. The
remaining 11 cents will be passed
on to the housewife—unless the gov
ernment votes a subsidy.
BREAD WASTE SCANDAL.
Department of agriculture sleuths
have been doing some quiet check
ing of unscrupulous bakeries which
violate bread sales regulations in
order to kill off competition.
Despite the fact that the nation
has been forced on a “dark bread”
diet to help feed war-starved peo
ples of the world, thousands of
loaves of good bread are still go
ing to waste, or being fed to hogs
and chickens.
It works like this:
If a big bakery is trying to grab
business away from a competing
bakery, it will begin supplying gro
cery stores on a “consignment
basis,” which means that grocers’
shelves are loaded up with supplies
of bread in excess of what they can
sell.
The following day—sometimes the
same day—drivers pick up the un
sold loaves and replace them with
fresh stock, charging the grocer
only for the bread actually sold.
Idea is to promote sales of a particu
lar brand of bread because of its
“freshness.”
Tins is a violation of war food
order No. 1, but it hasn’t stopped
certain bakeries in Houston, Texas,
Richmond, Va., San Francisco,
Cleveland, Kansas City and St.
Louis from carrying on the prac
tice on a huge scale.
Instead of making their re
turned stocks of one-day-old
bread available at a reduced
price to poor families, the
loaves frequently wind up in
garbage bins. One Texas farm
er who tipped off the depart
ment of agriculture about condi
tions in Houston said he had
been buying wagon-loads of
bread “fresh enough to eat” to
feed his hogs and chickens.
ATOM VS. BATTLESHIP
Unless President Truman does
something drastic about it very
soon, the forthcoming atomic tests
in the Pacific, scientists say, may
turn out to be a study in water
spouts instead of atomic energy.
On-tbe-surface atomic-bomb
explosions, the scientists claim,
will add nothing to the knowl
edge already accumulated from
previous explosions at New
Mexico, Hiroshima and Naga
saki, except that we may learn
the size and damage of the
world’s largest water spout.
Administration lobbying to con
firm Ed Pauley has reached white
hot pitch. Gov. Mon Wallgren of
Washington was brought east to put
the heat on Senators Magnuson and
Hugh Mitchell, the latter having
been Wallgren’s secretary. Both
will now vote for Pauley. . . In
some states, where the November
race will be close, a vote for Pauley
may mean defeat for a Democrat.
. . , The Pauley-Allen-Vardaman
Merry-Go-Rounds have evolved the
latest Washington wisecrack; “Tru
man is suffering from Pendergastric
Ulcers'”
WEEKLY NEWS ANALYSIS
Rip Franco Rule; U. S. Stiffens
Foreign Policy; Readjust Crop
Goals to Meet Emergency Needs
.... Relenupd by Wntfm Nfwipapfr Union ___________
(EDITOR’S NOTE: When opinion! »r« expressed In those columns, they ore those of
Western Newspaper Union's news analysts and not necessarily of this newspaper.)
!/" e u
Kanagawa-Ken.
SPAIN:
Hot Spot
With leftist elements in France
pressing the issue, a new govern
ment loomed in Franco Spain, long
under fire for Fascist connections
but reportedly countenanced by
Britain because of its neutrality dur
ing World War 11, which diverted
direct attack on Gibraltar.
The Allies’ first major step in
seeking to supplant Franco came
with France’s closure of its border
against Spain. Prodded by French
proposals to take up the matter with
the United Nations organization, the
U. S. and Britain then reportedly
agreed to form a common front to
apply pressure for Franco’s re
moval.
While renouncing intentions to
meddle with Spain’s internal af
fairs, the U. S. and Britain moved
to denounce the continued existence
of Franco’s regime and proclaim
their willingness to recognize an in
terim representative government if
he were ousted. Awaiting resolution
of the situation, the U. S. and Brit
ain would not break off economic
tics or diplomatic relations, leaving
the road open for negotiations for
creation of a democratic govern
ment.
FOREIGN POLICY:
U. S. Stiffens
Answering demands of Sen. Ar
thur Vandenberg (Rep., Mich.) for
a firmer foreign
Byrnes declared
ture aggressors and
tions settlements
tably to permit the
economic revival of Vandenberg
the world.
Byrnes’ enunciation of the admin
istration's foreign policy followed
Vandenberg's charge upon return
ing from the United Nations Organ
ization sessions in London that the
American representatives sat back
with compromising attitudes while
Russia and Britain pressed their po
litical ambitions. Unless the U. S.
pushes its ideals, Vandenberg said,
Russia will continue to press ahead
in the Far East, eastern Europe,
North Africa and Asia Minor where
continued aggressiveness may set
oil a powder keg.
In reaffirming U. S. determination
to check future aggression. Byrnes
declared that the present arrange
ment of the three great powers
precluded world domination by any
one of them, but that efforts to upset
the balance would imperil peace. In
calling for early peace treaties, he
asked for an ending of the drain
ing of occupied countries. Demand
ing equitable reparations agree
ments, Byrnes said the U. S. would
not tolerate any power deciding
for itself what to take.
STRIKES:
Costly Walkout
The General Motors and CIO-
United Automobile Workers pitched
battle over wages ranks as one of
the costliest industrial disputes in
U. S. history, with financial losses
of over 800 million dollars to com
pany, union, dealers and other pro
ducers dependent on G. M. for
parts.
With its plants closed as tight as
a drum throughout the country,
G. M. was estimated to have lost
500 million dollars in unfilled orders
NATIONAL INCOME:
With the national income in each
month of 1945 running below the
1944 level, the year’s total dropped
to 145,594 million dollars in 1945
from the record high of 160,695 mil
lion dollars in 1944. National in
come, however, was practically as
large as in 1943 when it was the
second largest on record. Further
more, the fact should not be over
looked that the 1945 figure is pre
liminary and actually may be larger.
THE HOUSTON HOME JOURNAL, PERRY, GEORGIA
while 175,000 production employees
missed 113 million dollars in wages.
Dealers and salesmen were said to
have lost another 100 million dol
lars in commissions.
Because of G. M.’s production
of parts, other manufacturers have
been forced to curtail assemblies,
increasing profit and wage losses.
At the Packard Motor Car company,
8.000 production workers have been
off more than a month because of
the shortage of G. M. supplies.
Of 50,000 G. M. employees in Flint,
Mich., over 2,000 strike-bound work
ers are receiving welfare relief at
a rate of $38.06 weekly.
GERMANY:
Ration Cut
Reduction of the food ration to
1.000 calories daily in the British
occupation zone in Germany, and
need for substantial imports into
the American-held sector if the
present level of 1,500 calories is to
be maintained, pointed up the criti
cal situation in the fallen Reich.
Seeking to alleviate the now hard
ship imposed by the ration slash
and head off possible rioting, Field
Marshal Montgomery flew to Lon
don to discuss ways of providing
additional food for the 20 million
German residents in the highly in
dustrialized northwestern region
held by the British. Because a di
vision of British food supplies would
not furnish substantial relief, how
ever, authorities appealed to the
U. S. and Russia for food shipments.
While Germans in the U. S. occu
pation zone are receiving a subsist
ence ration of 1,500 calories daily,
two-thirds of the food eaten is com
ing from local stocks. If the present
allotment is to be maintained, im
ports soon will have to be upped
and a total of 700,000 tons shipped
in during the first nine months of
1946. Because of scarcities of fer
tilizer, seeds, tools and farm ma
chinery, fall crops may be appre
ciably curtailed.
FOOD:
Crop Readjustments
In readjusting 1946 crop goals, the
department of agriculture sought to
assure a greater supply of edible
grain, nutritious relief fare, fats and
oils and animal feed to meet not
only U. S. needs but growing Euro
pean emergency requirements.
Because winter wheat already has
been planted, the additional 1,000,-
000 acres asked will have to be
seeded in the spring wheat area,
the department declared. While
North and South Dakota, Montana
and Minnesota are expected to plant
the bulk of the extra acreage,
other spring wheat areas were called
upon to increase their crop.
Since smooth dry edible peas con
stitute a good protein relief food and
ship well, the department planned
for a 100,000-acre boost in plantings,
principally in Colorado, Idaho, Mon
tana, North Dakota, Oregon ana
Washington.
With small world supplies of fats
and oils in the face of the slow
movement of shipments from the
Pacific and heavy overseas relief
needs, soybean goals were boosted
by 1,100,000 acres. lowa, Ohio, Illi
nois, Indiana, Minnesota and Mis
souri were asked for the greatest
increase.
Faced with the need for high meat
and dairy output with feed stocks
dwindling, farmers were asked to
increase corn production over 1,000,-
000 acres and also step up roughage
cultivation. At the same time, pro
ducers were told to maintain the
flow of cattle to market, ship hogs
at lighter weights and cull poul
try flocks.
K or Id Supplies
Supplies of all grains in the prin
cipal exporting countries in Janu
ary were about 15 per cent smaller
than at the beginning of 1945, with
wheat stocks about 25 per cent less,
according to the department of agri
culture.
Total wheat supplies in U. S., Can
ada, Argentina and Australia were
placed at 1,392 million bushels com
pared with 1,868 million bushels on
January 1, 1945. The exportable
surplus of 475 to 500 million bushel*
is below world needs.
STATE BANKS:
Ship-Shape
With government bond holdings,
loans and discounts and other as
sets showing substantial increases,
the nation’s 9,538 state banks boost
ed their total resources to almost
87*6 billion dollars in 1945.
A breakdown of assets showed
government bonds, totaling 50 bil
lion dollars, made up 57.4 per cent
of resources at the year end, with
loans and discounts, approximating
16Vi billion dollars, next at 18.8 per
cent. Cash and balances with other
banks amounted to over 15 billion
dollars to constitute 17.6 per cent of
assets while state, municipal and
private securities and other re
sources approximating 5 billion dol
lars rounded out the holdings.
The 9,538 state banks had capital
stock totaling IM> billion dollars, sur
plus of 3 billion dollars, undivided
profits of 1 billion dollars and re
serves of 365 million dollars.
Ready Credit
Alive to the growing volume of
installment financing, over 12,000
state and national banks will extend
consumer credit in the postwar
years, greatly expanding their pre
war operations when they supplied
46 per cent of such loans in the
country.
While not all of the banks intend
to extend all types of consumer
credit, 10,500 plan to make personal
loans. By buying dealer paper or ad
vancing money directly to con
sumers, 9,400 banks will finance
sales of automobiles and 8,000 will
back purchases of such goods as
home appliances, farm equipment
and airplanes.
Over 5,000 banks will make 'FHA
loans covering home repairs while
7,900 will extend credit for modern
ization plans of small businesses or
residential owners.
Fritz Finds Heavy Going
w- •
Ir-awt irgfß
Deported in September of 1945 as
dangerous alien after he had been
deprived of U. S. citizenship, for
mer Bund Chieftain Fritz Kuhn is
now baggage smasher in Hohenas
berg castle in Stuttgart, Ger
many.
BIG MAN:
Grows Rigger
One of the biggest of the wartime
entrepreneurs, Henry J. Kaiser con
tinued his postwar growth with the
leasing of two huge government
aluminum mills at Spokane, Wash.,
with options to buy.
In granting Kaiser companies use
of the plants, the government an
nounced that it sought to increase
competition in the industry present
ly dominated by two companies.
Because Kaiser plans to extensively
employ the metal in his automo
biles, the government also said, he
might open a new field for use of
the material and thus open a mar
ket for other U. S.-owned aluminum
plants.
In leasing the $47,630,000 Trent
wood aluminum rolling mill, Kaiser-
Frazier agreed to pay a yearly rent
al amounting to 5 per cent of gross
sales or fixed sums, running up to
$2,667,000 in 1951. In obtaining the
$22,270,000 Mead aluminum reduc
tion plant, Kaiser Cargo, Inc., will
pay annual charges up to $1,248,000
in the fifth year.
MEAT:
Consumer Costs
Though consumers will have to
pay the full cost of the packing com
panies’ 16 cent an hour wage boost
to employees, the actual outlay will
approximate only 81 cents a year
per person on the basis of record
consumption, the department of
agriculture reported.
In arriving at the figure, depart
ment economists divided the 1% per
cent price increase allowed pack
ers into anticipated consumption of
155 pounds of meat per person in
1946 at an average of 35 cents a
pound. However, the actual cost
might be less since the estimated
consumption of 155 pounds per per
son reflects a peak and is far above
the average prewar level.
Despite the per cent price
boost granted packers to offset the
wage increase, the American Meat
institute termed OPA’s relief entire
ly inadequate if livestock is to flow
to legitimate channels. Even with
the new price increase, the institute
said, legal operators would be
pressed to compete with black mar
keteers in bidding for cattle.
TIRE OUTPUT:
The tire manufacturing industry
produced approximately one tire
for every automobile on the road
in 1945, casings totalling 28,147,538
units. While this exceeded the war
restricted quotas established early
in 1945, output fell far short of meet
ing long pent-up civilian demand.
Rapidly accelerating production
in the closing months of 1945 and
steadily increasing production since
the first of the year had carried
current weekly output to an all-time
record high by mid-February.
Washington Digest/
Rediscovers America - EOt]
Under New Sponsors
Co-Operative Backing of Programs Affords
Wider National Contacts; Brings Radio flflNflSr- 1
Close to Local Communities.
By BAUKHAGE
News Analyst and Commentator.
WNU Service, 1616 Eye Street, N. W.
Washington, D. C.
In these days when there is so
much talk about co-operatives, I
would like to take this opportunity
to say something about co-operative
sponsorship of radio. It is a differ
ent kind of co-op, of course, but it
has done a lot for broadcasting. It
simply means that instead of hav
ing one big company sponsor a
program over a whole network, a
local concern in each town “hires”
us. That is why I say the name of
my boss is legion.
There are many advantages in
this plan from a purely material
standpoint. But to me, the greatest,
from the broadcaster’s point of view
is the fact that co-op sponsorship
provides a tremendous psychologi
cal tonic. It gives me what I call
an e-pluribus-unum boost, because
I have a feeling that a lot of peo
ple have elected me to my
job instead of one man hiring me.
I feel that I have become a citizen
in a sort of new-found economic
democracy.
Now from the listener’s stand
point: When a program is sponsored
locally, the townsfolk are bound to
look on it with a lot more intimacy.
Hi. .
'■ I f l ' * I ■.
Baukhage (center) interviews the Oesers in Washington, D. C.
The people of X-ville, listening to
me as they have for the last three
years, feel, I am sure, that they
know me better because they know
my sponsor, Joe Doe—a lot of them
personally, a lot more because they
have almost daily personal contact
with the clerks in his big depart
ment store. And that goes for the
flour mill, the bank, the bakery, the
dairy, the hotel, the electric power
company, the finance company, the
flour and feed store, and what have
you (and what haven’t you in the
co-op dish?).
Like writing for a weekly news
paper, there is a hometown intimacy
about this arrangement. This inti
macy, vicarious though it may be,
goes a long way toward breaking
down the barrier of invisibility be
tween the unseen broadcaster and
his audience.
Highly important too, is the total
goodwill engendered by the co-oper
ative sponsorship system. It means
a lot to the sponsor to have the lis
tener realize that a hometown
supported institution is paying for
the program he listens to.
Before I accept a sponsor I have
to know something about him. When
we get together I have a chance to
learn a lot more about him and he
about me. Thus, my 130 bosses have
helped me, in a sense, to re-discover
America, and it doesn’t do a bit of
harm to those of us who spend so
much time on Pennsylvania avenue
to have a daily reminder of Main
street which is the real America.
So much for direct benefits to sta
tion - sponsor - listener - broadcaster.
But there is something which is
eve:i more important to radio as a
whole. I believe the co-op system
will go a long way toward dissolv
ing an unfounded suspicion held by
some of the general public; name
ly that a commentator reflects his
sponsor’s opinions. Personally, I
have never known such a case, but
the myth is widespread. Well, it is
obvious that even 30 sponsors
couldn’t agree to disagree with
their commentator on any one thing
and when the number passes the
hundred mark, a neutralizing effect
results which produces a cross-sec
tion view that could reflect only an
average of American tolerances.
BARBS • • . by Baukhage
Before the war, says the 20th Cen
tury Fund, around four million
Americans paid an income tax.
After the war began, the number
rose to above 40 million, or over 10
times as many headaches on March
15.
* * •
The clerks and salespeople are
new demanding “Doncher know
there’s a peace on?"
We are all proud of the fact that
radio has brought the world right
into the listener’s home. We can be
equally proud of the fact that the
co-operative sponsorship system
has brought thousands of American
communities into the broadcaster’s
heart and mind. The co-operative
sponsorship system exemplifies the
good, democratic principles of de
centralization.
I think it’s a great invention.
* • *
Chosen by Station WNAX, Yank
ton, S. D., as “typical mid-west
farmers,” Mr. and Mrs. John Oeser
won a trip to Washington, a new
tractor and money for a new ward
robe. Immediately after being re
ceived by the President, they were
interviewed on our program.
They were chosen by WNAX be
cause, while running up a remark
able production record on their farm
in Westside, lowa, they also played
a leading part in the war activities
of the community.
Mr. Oeser is 58 years old and is
still cultivating the land his father
pioneered. He and Mrs. Oeser have
eight children—the one of military
age is a marine—two daughters are
graduate nurses. Since the eldest
boy joined the marines, Mr. Oeser
has been doing all the work on his
160-acre farm with the help of his
wife and the 10 and 14-year-olds.
They have a lot of livestock and
raise enough grain on their farm
to feed the cattle.
Mr. and Mrs. Oeser were widely
entertained while in Washington and
enjoyed every minute of it. How
ever, Mrs. Oeser was shocked at
the prices of food and didn’t “see
how a family the size of hers could
possibly afford to live in a city.”
• • •
While congress recently rewrote
the tax law to fit peacetime govern
ment expenditures—and the people’s
earnings—they had in their posses
sion the suggestion for a new type
of tax program. I say “new type”
because it is sponsored by small
businesses employing approximate
ly 6,500,000 workers.
The sponsors are convinced that
their comprehensive program will
do a number of worthy things in ad
dition to speeding reconversion and
giving tax relief to individuals and
business. They say it will also pro
vide a favorable tax climate for
small business, encourage venture
capital, provide high employment at
well-paid jobs, stimulate consump
tion, increase the national income,
balance the budget at high employ
ment levels, reduce federal expen
ditures and retire the national debt.
Aside from immediate reductions
for individuals and corporations, the
long-range program calls for the fol
lowing: For the individual, an ini
tial tax of 16 per cent and reduction
of surtaxes, the rates on long-term
capital gains, estate and gift taxes.
Existing exemptions and credits
would be retained, deductions of
capital losses would be allowed on
the same basis as capital gains
are taxed, double taxation of div>
dends would be alleviated. The state
chambers of commerce would con
tinue the principle of the withhold
ing tax while at the same time try
ing to improve it.
In the long term picture for busi
ness, the group would have corpora
tion taxes reduced and the continu
ation of a favorable tax climate
for small business.
Rubble plus rabble makes a revo
lution—but a bowl of American soup
goes a long way to convince even
a hungry communist democracy
isn’t so bad.
• • •
What does the American soldier
in Europe (and officer) want most?
Sorry, cynics, it’s (J) to get home
and if not (2) the wife and kiddie*
over there.