The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-13
RED CROSS is
CHARGED WITH
DODGING CRISIS
Accused of 'Hoarding Relief
Funds in Face of
Human Misery

BV ScriDps- Hoicarc NewsDaDer Alliance
WASHINGTON, Jan. 13.-Charg-
ing that the National Red Cross
holds back $38 ZOO, 600 now available
for disaster relief while it disclaims
responsibility for feeding Americas
100000 iobless and helps block di-
rect congressional relief, Mercer G..
Johnston, director of the Peoples
Legislative Service, today assailed
the organization and its, chairman,
John Barton Payne.
rs the Red Cross boarding relief
funds in the face of human misery
almost impossible to picture'?"
Johnston asked in his statement.
Out Of $44,000,000 held in reserves
as Of last July, $38,0O0,O00 is down
as available for expenditure" This,
Johnston says, has been collected in
highly organized, dramatic appeals
to the American heart" On his re-
turn from Europe, Judge Payne, &C
cording to Johnston, mentioned the
drought and unemployment situa-
lion as one calling for attention Of
the Red Cross.
THE money is not for far-off
people" another Red Gross spokes-
man is quoted as saying on the eve
OF the last roll call. 1T is needed
for our own"
Tragedy Becomes Worse
Since then, Johnston says, the
tragedy has become worse steadily.
Since last August when Chair
man Payne confessed that very
serious situation existed the hui
man tragedy has grown worse
steadily" the statement says, land
today the cry of bread, breadP is
heard throughout the land.
THE situation is intolerable,
says the chairman of the Presi-
dents empty handed emergency
committee. Conditions are almost
impossible to picture, say even Red
Cross field workers.
'The Hoover Payne policy Oh sup
preston merely serves to discredit
confidence in its sponsors"
Reserves Not to Be Tapped
Called to give an account of his
stewardship" says Johnston, Chair
man Payne, first washing his hands
of all responsibility for the suffer-
ings of the $5,000,O0O jobless of the
cities, reports that all is we'll in the
rural districts.
LESS than one of its $4,000 900
has been stretched out over six
months, nearly half Of it for seed.
He throws the weight of his in
fiuence against congressional funds
for food and clothing
1.-THE Red Cross is willing, if alb
solutely necessary, to spend a
maximum of $5,50O,OO0 on the farm
ers. He regards that as quite
enough for them. If not he will
yell for a public collection. Red
Cross reserves are not to be tapped"
Risks Loss of Confidence
Johnston says that although these
great reserves are for major disas-
tiers none of the great disasters of
the past decade has been relieved
from these funds. A special appeal
for funds is resorted to. Outside
sof special emergency funds the Red
Gross, he says, has spent in relief
IAN average Of less than $4,000 a
year for the past decade, and this
swas one-twelfth of the institutions
stotal expenditures.
IF ever" Johnston concludes,
"the Red Cross intends to meet
great disaster out of its general or
sordinary funds or large reserves
now is the time to do so. From its
own house organ comes the I'M
@guarded confession: The magnitude
and severity of the present situation
ARE alone sufficient to justify de-
parture from normal policy
Its chairman has joined with it's
president in blocking direct federal
relief. Human misery is at the doors
of its marble palaces. 1t has $44,-
100000 of mercy money within. If
1t keeps the money it will risk the
loss Of public confidence to a degree
that will greatly impair its useful
ness"