Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-13
PRODUCTION COST
OF HEL|UM QUER|ED
Head of Private Company
Disputes Figures in Gov
eminent Report.
BY JOHN r. SINCLAIR.

BY JOHN +. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, March 13.-Some time
ago, In this column. / reiterated a
query propounded by Representative
Englebright of California concerning
why the Navy was buying helium gas
from private industry at 534 thousand
cubic feet when it could obtain 1t for
S12 so from the Bureau of Mines.
Nate Lord of the Helium Co., the
largest private corporal on in the field,
disputes the figures of the Representa-
tive, and says the So-called Govern
ment cost lis simply the transfer price
and not the whole Government cost
Mr.. Lord explains the situation in
this way;
This transfer price does not include
interest on invested capital deprecia-
ton on plant and depreciation of the
gas wells and gas pool. 1t does not
even include normal upkeep costs, be-
cause the Amarillo plant Is so new that
no maintenance or replacement has yet
been required The Governments real
= cost today is in excess of SAC per
thousand cubic feet, and If this total
cost is compared with our selling price
to the Navy, $34 per thousand CUBIC
feet. the extravaganza of the Govern
ment operation becomes apparent"
Let Mr. Lord continue: THE Gov
ernment's helium actually cost $46.92
to produce, instead of $l2.50, at which
price It is transferred to the Navy.
Additional congressional appropriations
will make UP the difference in actual
cost and transfer price, as has been the
case in the past"
through the Bureau of Mines. manu-
features helium gas at Amarillo. Tex.
The Helium Co., private company
Is producing helium gas commercial
". with plants in Kansas and Colo
RADIO. The Governments investment so
far is in excess of $4,000 900. The
Helium Co.'S investment is less tnan
$500. 900. Yet the Helium Co. TO-DAY
Challenges the figures of the Govern
Ynent and declares it can produce
heliun1 so essential for balloon actlv-
ity, at much lower cost than the Gov
It should not be difficult for con-
sressional committee to make an au-
thoritative comparison and give the
public the benefit of its findings.
Dig up Chairman Legge's letter to
Gov. Shafer of North Dakota and read
1t. Nothing political about it-Just a
heap of common sense backed up by
world of experience.
The notwithstanding Legge told the
governor that the Federal Farm BOARD
did not intend to make any effort 10
maintain wheat prices at S1.25 a bushel,
Minneapolis, in the face Of another sur
plus this year. Farmers must expect 70
see prices at a lower level should no re-
duction in acreage take place.
"The 10 per cent reduction in acre
age we are now suggesting" said Mr.
Legge, would in our Judgment, put the
trade on a fairly healthy basis.
Mr.. Legge was frank to admit that
the present program of the staPiliz1ng
coruoration would result in having up
ward of 00000, 900 bushels OF wheat
on hand at the close of the season.
Even the business enemies of Chair
man Legge-and there are many-ao-
nit that no man has entered public lie
in recent years who has been more can
did, sincere or frank with the people
than this former big business leader.
n. Parker Willis, New York econo-
mist, first secretary of the Federal Re.
serve Board, has come out in favor Of
branch banking.
"Already we have had a successful
experience with branch banking on the
Pacific Coast, where Statewide brancn
banking NOTABLY in Callfornla) mas
business of the various communities,
says DR.. Willis.
Anti-branch bank leaders fear that
the larger banking units will play into
the hands of Wall Street, drain the local
funds from local communities and limit
still further local development and ex-
pansion.
THAT conclusion does not necessarily
follow, rejoins DR.. Willis.
"In showing the needs of local export
trade. facilitating the movement OF sta
BILE crops. drawing of surplus funds IN
the off season and encouraging funds IN
the active season of the year, the
branch bank supplies an enormous sup
port for the local community" says the
doctor.
1t was Controller Pole who recon-
inended to Congress that branch oanK-
ing be restricted to the Federal Reserve
district lines. except in certain cases
where a single economic area overlaps
the borders of two or more districts.
But Dr. Willis does not believe the
Federal Reserve system has any bearing
one way or the other on the problem
This aggressive editor of the New
York Journal of Commerce thinks the
United States ought to recognize the
basic facts and provide legislation OF q
nature necessary to square the facts
with the conditions. Every months de-
lay in graphing with this problem VIII
make it harder.
Branch banking is as inevitable as
tomorrow's sun.
"The agreement has been preached !;
that's why I asked to be relieved
from it."
In such fashion William Fox de-
r1ands release from the trusteeShip
agreement, which he entered into last
December with H. l.. Stuart OF Halsey,
Stuart g. Co. and John E. Otterson
of the Electrical Research Products,
Inc. his principal creditors, by which
action control of the Fox enterprises
passed out of his hands into the trust.
The stockholders meeting ratifled
the Lehman Bros. Misunderstanding
america-Blair Corporation SOS 100000
fefinancing by vote of 20 TO l.
But Judge Levy declares that the
trusteeship agreement of December 8
Is valid. If this opinion be confirmed
]. E. Otterson and H. L. Stuart, the
two trustees, are expected on April 10
to vote In their own board OF directors
and then declare the so-called Lehman
plan unlawful.
The opposing forces are squaring
away for a battle to the bitter END.
William Fox is a long ways from being
out of the woods.
(CopyriEht, 1880, by North American News
paper Alliance9