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MONDAY, MARCH 1J, 193S. Â·PHB DAILY COURIER, CONNELLSVELLE, PA. PAGE SEVEN. BABSON SAYS SMALL BUSINESS NEEDS HELP IN ITS FINANCING BABSON PARK, Fla., Mur. 14.-One of the big reasons why the Ifl37 prosperity did not "catch" was the dearth of new expansion and new enterprise. Building new factories, installing more efficient equipment, introducing novel products, and the like, should offset the losses from decaying industries. Before these ' v . things happen, however, people with money must be willing to risk it by financing such new industries. They must not pcrfcr just to "salt" it away in government bonds. What the United States needs today is not that kind ol salt, but the right kind of pep. The necessary confidence to take risks was lacking in 1937. It has been lacking ever since 1D29,--and it ." ' is still absent today. There are many reasons why, but the principal one is the money and bookkeeping policy of the Federal Government. New capital financing is practically nil at the moment. Underwriting profits arc so small and the liabilities, under the Secruities Exchange Act so severe, that it takes a brave "house" to tackle a piece of new financing. So there are very few new loans being floated now. Hard to Get Capital. Most of the big companies do not want new capital at present anyway. Like the people who have the money to invest, they are afraid to make new commitments right now. They are "sitting tight" until Congress repeals or greatly modifies the Undistributed Profits Tax. On the other hand, there arc a number of small business concerns who say they need "new money." These little fellows aired their troubles at Washington last month. They listed the difficulty to get new capital as one of their major problems. They feel that if no one else will, the Government should help them in getting their needed capital. These small businessmen want J varying sums--between $10,000 and Â· " $250,000--but they cannot get money cither from commercial banks or from investment bankers. Commercial banks nowadays prefer to .make loans of only 30, CO, or 90 days. They do not want to lend substantial amounts for four or five years. The depression taught them that commercial banks should make only short-term temporary loans. Many , of these small businessmen do not Â»i realize it, but what they really need is more permanent money rather than temporary borrowing. This additional capital should bo secured by issuing and selling more stock in their concerns. Cannot Sell New Securities. In the money market, however, the small corporation finds such financing almost impossible. Under the Securities Exchange Act most new securities cannot be issued without filing a great mass o! detailed data with the Commission. Furthermore, the issue has to be okayed by the Blue Sky authorities of each individual state in which the securities arc to bo sold. Hence, legal and accounting fees wipe out the meagre investment banking profits on small issues. Furthermore, underwriters in New York City or Chicago arc not crazy to sell a new security issue of a pants company in Okolona, Miss, or a mining outfit in Eureka, Cal. With the closing of these two major avenues for new capital--commercial banks and capital markets--small business has only two alternatives left. One is the loan shark, who , specializes in loans to little compan- _Â· ics and who charges a tremendous rate of interest. The other is the time-honored and most sensible approach--by selling bonds or stock to local businessmen and investors who know the company's management history, and character. Local people however, arc so frightened by President Roosevelt's attack on business that they will not now invest a penny in now enterprises or expansion. f t Little Help From RFC. Hence .local financing is not feasible now, particularly when the loan is between $100,000 and $250,000 This is a sizeable fund to be pickec up locally even in normal times and outside aid must be sought. It was situations ol this type that the Administration had in mind when i: recently threw open the $1,500,00,000 assets of the Reconstruction Finance Corporation to small business. The regulations concerning both Federal Bank and R. F. C. loans, however, arc restrictive. The former, for instance arc limited to flvc years for "working Greece Mourns Him Greece mourns tho passing ot Prince Nicholas, 66, uncle of the present King George II of Greece and lather of tho Duchesj of Kent of the British royal family. Cavaicante Says He Will Publish Sworn Testimony UNIONTOWN, Mar. H.--Decision of Governor George H. Earle that there was no "unfairness or fraud" in the civil service examinations for Social Security jobs in Fayetto county was assailed by State Senator Anthony Cavaicante as "being contrary to the sworn testimony in affidavits." The charges brought by Senator Cavaicante will be made known to the public, he added. "The investigation has failed to disclose any evidence ot unfairness or fraud in the conduct and the services ot the examinations or in the subsequent appointments," Earle said in Harrisburg. Cavaicante claimed that Democratic Chairman Jacob H. Echard of Fayette county "had n list of the applicants for unemployment compensation jobs and their examination numbers." He demanded the investigation. Motor Police investigation, Earle said, showed "that the examinations had been conducted in the proper form." ' "The Governor has disregarded the fact that the testimony of the witnesses was given before a competent notary public and that the subject matter was made on onth in the affidavits," Cavalcanto answered. "I will make public in the near future the charges made in the affidavits, in accordance with jny promise to the Governor that I would withhold this information until after he had given his decision," the Fayette senator stated. "Earlc's findings are absolutely contrary to this sworn testimony,' he added. Earle declared yesterday that his findings "closed the incident." capital" rather than fixed capita purposes. Hence, a big portion of the applications for loans by smal businesses must be rejected. The latest proposal is for Investment Trusts to fill this financing void They do so in England. The plan would be for the Investment Trusts to divide themselves into two classes One group would confine its investments to "conservative" seasonec securities. The other group--frankly termed "speculative trusts"-would act as a pool of "new money'" for little corporations who canno now finance through other channels Financing Traat Idea Sensible. This sounds like a sensible schenu. to me. It offers a more practical solution than having Uncle Sam through the R. F. C., become a partner in, or creditor of, thousands o small concerns. These trusts woult do for little businesses what S. 2 Mitchell did for the little utilities when he organized Electric Bond Share over 80 years ago. The onl: better solution would be the passage of needed recovery measures by Congress and the speaking of a few friendly words to business by the President. The resultant return of confidence would then break the dam holding back new capital so tha small businesses could get thcii needed funds from local sources. Holiday Ordered To Swell Crowds; ontrol Complete Continued from Page One. Czcchosloviikla. key posls, received their dismissals--George Frfinkcn- stcin, London: Alois Vollgrubcr, 'aris, and Dr. Ferdinand,/Mnrck, Prague. I 'Dollfuss" square, renamed after lie murder of Chancellor Engelbert Dollfuss in the Nazi putsch!of 1934, was renamed nguin--this time to rlitler square. Authorities at Linz announced that n number of members of the Youth Patriotic Front had been arrested at undesignated places, charged with spreading false information about the iouth Tyrol, "likely to create difficulties between Germany and Italy." Reports, vigorously denied, had been that the German speaking pco- Dle of the South Tyrol, incorporated into Italy at the end of the World War, might receive Hitler's attention when he got around to it. Alfred Tyrnauer, correspondent ot the International News Service, an Austrian citizen, was held for several lours yesterday at police hcadquar- icrs while his apartment was raided, was released when the American legation Intervened but his passport was held. President Miklas resigned yesterday, at the demand ot Scyss-Inquart. Miklns had stoutly refused demands that he wear the Nazi emblem, and it would have been his duty to greet Hitler. It was snid that one reason for Hitler's long delayed triumphal entry was that Miklas refused to join in the triumph and so it was necessary to get him out. Hitler arrived at Linz Saturday and had planned to come here yesterday. Soon after the resignation of the president, at 7:50 o'clock last night, the official text ot the new "ansch- luss" (union) law was promulgated effective nt once: "1--Austria is land (a state) of the German Reich. "2--Sunday, April 10, a free secret plebiscite of all Austrians above 20 years of age shall take place regarding Austria's reunion with the German Reich. "3--The majority of votes cost shall decide. "4--This law is effective on the day ot its promulgation. The fedora government is instructed to carry out this law." This decree had the effect of Â« constitutional amendment. Next came the decree by Hitler: "The fuehrer as supreme commander in chief, of. the armed forces decrees: "The Austrian government has jusl promulgated a law uniting Austria and Germany. The German government under a law enacted today recognizes this resolution. "I decree accordingly: "The Austrian army Is today placed under my command as part of the German armed forces. I entrust the command of the Austrian army within the Austrian frontiers to General (Fedor) von Bock, commander of the (German) eighth army. "All members ot the Austrian federal army shall take the oath of allegiance to me. "General von Bock will lake the necessary measures immediately.' 1 Colonel Maxmillan Angelis, ot the German general staff, leader of the Nazi soldiers' union, was named secretary of war. It was estimated that there were about 30,000 German troops in Austria, including 2,700, in addition to 800 police, at Innsbruck, 20 miles from the Italian frontier, and abou' J.200 at other places in the Tyrol adjoining Italy. Ten thousand German troops arrived here last night. About 5,000 of them came in 500 heavy armored cars and tanks, 2,000 on motorcycles, and 3,000 infantrymen by train. They paraded through the streets and were reviewed by high ofllcials while scores of German army airplanes flew overhead. A detachment of Hitler's own regiment, gray uniformed, arrived early last evening. German army officers were quartered at three big hotels. BARCLAY ON BRIDGE . WETTTEN FOB CENTRAL PRESS B y S h e p a r d B a r c l a y "Ibe Authority en Authority- i COOJVT YOUK TRICKS i NEGLECT TO count tho number tit tricks in sight I* the worst sin of e. declarer at no trumps. Many nn otherwise x aafc contract la thrown away merely because he failed to add up the tricks available n the various suits by the several methods at hand. If one way of counting docs not make nine, another may produce that magic Bgure, evon though It necessitates overtaking one trick winner with mother one along the way. A A 8 4 Q J 10 9 Â» K J 10 7 * Q J 10 6 Â· + A K 8 3 2 (Dealer: South. East-West v nerable.). Playing at Â» contract of 3-No Trumps, various declarers in thÂ« Â·South position, tried different method* to reach their goal. In all cases, the opening lead by fWcst was the spade Q, which was won in declarer'* hand -with the K. Â·Some cashed the diamond K and aj the spade A was the only entry to attempt to set up the diamond suit, fared badly a the A did not drop the Q, which ot course could hardly have been expected. Those who succeeded in making tho contract, realized that their success depended on the diamond suit, and with only one loser In It, decided to give up a trick In It while retaining tho entry. They led the damond K, overtook it with the A, and then gave up a trick to East's Diamond Q. No matter what East decided to return. It was Impossible for him to keep the declarer from cashing nine tricks. Â· Â· * Tomorrow's Problem 6 8 6 4 Â» Q Â» . 4 7 4 3 + Q J 1 0 7 2 *A*72 9 A. K J 10 8 (Dealer: East. Neither aide vulnerable.) What is' thÂ« correct defenso against South'* contract of 4-Hearts7 SCOTT'S SCRAP BOOK. By R.J.SCOTT oF CA.X1FOR.MIA., PA.IHT'" PlCrfURES *HD DE.Sl^H'S oH CREEKS AMD HOSES Ko ONE KNOWS Sow X.AR.CIE. SQUIDS BEE.M KMoWK-ro VVHA1-ES- SOMHSQU1DS SEEK SE.E.K -frlKV Â«At TENTXC1.ES 70 Ff. POSSIBLE. -Tb-lM-K AMD XISE-N A-f-fltt SAME.-rfME-,AS' VrflE. RANSMrf=riL*. WAS A-f-fActtaD Q ONE. EJ*D op THE.. j WIRE, AXD -TttE. RECEIVER, tofa.CrT^E-R EKD - V/EAO^fllEP- PEOPi-E. HAD -t\vo -JEI.-E.PHOHES -sNE-fo rtEAR.-rtiRcu^H AND OHE.. Â·TO 'fXl-K, HROU5K COPYKICHT. 1938. KING FEATURES SYNDICATE. Inc.. LEAF CA.KCE.U^ffoXS\ USED oH EAR1V UMrTE.D Richard H. Krissinger Somerset DPA Director Confluence SOMERSET, Mar. H.--Richard H. Krissinger, provisional director of the Somerset County Division of the Department of Public Assistance, has been named executive director. He had been Somerset county treasurer, serving the unfinished term of George L,. Longridge who died, and being defeated in the election by Mrs. Neva Longridge, the former treasurer's widow. Use Our Classified Ads. They bring results. Cost is small. CONFLUENCE, Mar. 14 John Augustine of Addison was a business visitor in town Friday. Mrs. Howard Banner continues to Improve from a severe illness. Miss Myrtle Hopwood of Hoovcrs- ville spent the week-end with her parents, Dr. and Mrs. G. B. Hopwood. Mrs. Joseph Hyatt of Fair Oaks was a visitor in town Friday. Charles B. Humbert and Howard Sanncr were recent business-visitors to Pittsburgh. Rev. J. O. Martin, pastor of the Methodist Episcopal Church, has announced evangelistic meetings will open in the church Sunday evening, April 3, and continue until Easter. Mr. and Mrs. J. P. McDowell left Friday for a few days' visit with relo.lives at Woodland. Many Former Teachers Drawing Big Pensions HARRISBURG, Mar. 14.--More than 4,800 former teachers are drawing pensions averaging $62.50 a month from the State School Employ-is Retirement Fund, State Treasurer F. Clair Ross reported. Owners Seek Cut in Wages For Rail Men By United Press. WASHINGTON, Mar. M.--The Association oÂ£ American Railroads will recommend wage cuts for approximately 1,000,000 workers at a meeting to be held in Chicago March 18. The association said the approximately five per cent fireight rate increase by the Interstate Commerce Commission "is entirely Inadequate to meet the critical situation which faces the railroads." 'The decision is depressing not only to the railroads but to indus- Â·y as a whole and to general employment," the association declared in a statement. f "The decision makes it impossible for railroads to make desirable expenditures in the interest of improved service to the public at reduced opeating costs, or to increase railroad purchases and employment, as was anticipated. "It is necessary for the railroads further to reduce operating expenses," the statement, authorized by J. J. Policy, president of the association, said. The statement added that the March 18 meeting was.for consideration of "decreases in wage rates and such other action as may be required." A spokesman for the association said submission of the wage problem to its 142 member railroads was, in its practical effect a recommendation for a wage cut. , Looking for Bargains? If so, read the advertising columns ARE YOU WORRIEDV.:- Â·bout cÂ«r IniulmÂ«niÂ«--or other d*bu? Biing your problem! lo "PersoDal".. lhÂ« rÂ«l I* ilmpla. BÂ»IincncÂ« -- cut BIG pormonJ* down. No ondorwrs rÂ«qutr*d. Qu!ck-Loiniupto$JOO-Privo!Â«" PERSONAL FINANCE CO. 376 O//TcÂ«Â« Ninth Year In connellsvlUe. Over McCroy's. W. Crawford Avenue. Phone 34. D A Y A T C A P I T A L A S I N T E R P R E T E D BY DAVID LAWRENCE Continued from Page Four, dent of tho United States is an example of courage of a public official who really has nothing to hide and nothing to fear because he is convinced he is doing his duty in demanding what democratic government has always thrived on, namely pitiless publicity by legislative committees. Curiosity is growing more and more every day as to just why President Roosevelt is struggling so hard lo squelch a congressional investigation which involves the integrity of some of his appointees nnd also money-making claims of a member of the Senate of the United States. It has been alleged oy Senator Bridges of New Hampshire that a TVA scandal worse than Teapot Dome is being hushed up. In the face of such charges, it is being asked why should the Administration be fighting so strenuously ngainst a comprehensive inquiry. 1'inno 1'lrm ViII Sacrifice Small-Size For very small balance. Responsible party may tAKe over for terms low as II u'ci'kly. piano Is almost new and fully tuarantced. After steins it, we will tune and drllver to your horn*. For appointment and Information, write--Also Betsy Rosx Spinets at attr.icUve prices. K. A. SOUTH P I A N O CO. Inc. 1533 Chestnut St. Phlla. This Label 15 you* PROTECTION i Merchandise on our floors bearing this label has been checked and double checked for style, quality and value. After all, it is not what you pay, but -what you get for what you pay t h a t means Value! Look for this tag and get the utmost for your money! Merchandise that has been scientifically tested! The important thing is not so much what it appears to be, but what kind of inner construction it has! Inner quality is often more important than outward appearance. We protect you on those hidden inner features of construction that mean real service and lasting satisfaction. It's an exclusive feature at this store, and is just one more reason why you should make this your store! Buy With Confidence! A line tested and approved Duncavt Ph^jfc Dining" Suite OT nine pieces in Bu-H Walnut Veneers You will enjoy pardonable pride when you entertain friends at dinner in a dining room furnished with furniture of this fine character. Approved Duncan Phyfe design. Fine cabinet work. Rich, enduring finish! We include the extension table, buffet, china cabinet, liost chair, and five side chairs, ull at this low price! Other Splendid Value Dining Suites as low as $89.50 See our comprehensive showing of new diningroom furniture!