Douglas daily dispatch., 1927-05-18
Red Cross Is Over
Top for Second Quota
Continued from Page one)

The local chapter OF the Red Cross
is just in receipt of a letter from ma
tional headquarters of the organiza-
tion relative to reports that a large
reserve fund held by the Red Cross
could be- used for the Mississippi
flood relief work. These reports, the
letter states, are unfounded.
Following are parts of the letter:
Some of our chapters are encoun-
tering opposition to their relief cam
paign on the grounds that the Red
Cross has a large reserve fund which
could be used for this disaster and
that there is no necessity for the
public to contribute to this appalling
emergency.
cit is unfortunate that whenever The
Red Cross makes public appeal for
disaster funds, some niSinformed per-
sons circulate statements like the
above and it becomes necessary for
the Red Cross to contradict them. In
order that your chapter may be pre-
pared to combat any such false
propaganda, we are stating you the
following facts to which you may
give as wide publicity as you wish:
81. 1t is perfectly true that the
Red Cross has a reserve fund. There
is not and never has been the slight
est mystery about this. Red Cross
accounts, down to the slightest item
of receipt or expenditure, are audited
regularly by the war department each
year, the exact facts are published IN
it's annual report which is submitted
to congress and is available to any
one who may desire accurate infor-
nation.
"2. 1t is an absolute necessity that
the Red Cross maintain substantial
reserve. Although public appeals for
disaster funds have been made in
this Mississippi flood and were made
last fall at the time of the Florida
hurricane, the Red Cross, quite apart
from these outstanding cataStrophes,
had been expending an average of
$3,00O00O yearly on disasters for
which the public had been asked to
contribute nothing. Moreover, in both
the Mississippi and Florida disasters,
the Red Cross, besides contributing
hundreds of thousands outright for
relief, bears the entire cost of over
head expense, thus making it possible
for every cent 1contributd by the pub
lie to go direct to the sufferers.
Disasters of which the public hears
nothing are occurring practically all
the time The Red Cross must have
money on hand to meet these. If it
did not, it would have to appeal to
the public as many as 60 times a
year. (There were 81 disasters in
the United States in 1920.
'3. A very large part of the Red
Cross reserves are restricted funds,
contributed for specific purposes The
organization must continue its obli-
cations to disabled ex-service men
and women, still a large and eXpen-
sive task Other moneys are needed
for public health nursing, first aid
and life saving, which are services
indispensable to the well being of the
people of our country. Moreover, a
large sum of the Red Cross reserve
is in an endoWnlent4 fund of which
only the income can be spent.
"The national Red Cross expended
more than $7OO0,0OO in service to the
people of the United States last year,
exclusive of the Florida disaster, re-
C61V11lS III AHc1lDeAoA14p ACCos O4AAy
million and half. Without reserves,
how could this work be done?
81 The American Red Cross en-
joys the advice in its operations of
the best financial brains of the
country. When men like Judge John
Barton Payne, Secretary Mellon and
Secretary Hoover are it's executives
and advisors, the public may rest
assured that it's funds are being wise
ly and efficiently administered on
the soundeSt business principles.
"It would seem needless, in view of
the foregoing, to point out that de-
pletion of Red Cross reserves at this
or any other time would be a ruin1
Gus short-sighted and indefensible
move"
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