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; i THE PRODUCERS NEWS Paper of the People, By the People, For the People By the Peoples Publishing Company, Publishers. . CONTINUING:—The Outlook Promoter, The Out look Optomist, The Dooley Sun, the Antelope Inde pendent. The SherttJan County News, The Pioneer Press and the Sheridan County Farmer. CHARLES E. TAYLOR, Manager. P. J. WALLACE, Editor. FRIDAY, MARCH 2, 1928 EDUÔRJaL •jfl By CHARLES E. TAYLOR IS DIXON'S HAT IN THE RING? Joe Dixon going to run for something this Is fall? That is the great question agitating the political waters of the Treasure state. Some say he is and others say he isn't. Then those who say he is are asked, "for what" ? Thm there is again great speculation. Some won der whether he is going to run for the United States Senate, go out after Wheeler's toga—Dixon has been in the senate and knows what it is like; some wonder if he is going out gunning for the governorship again, he has been in the governor's chair and knows how that feels, while others, if he is going to start at the bottom in another po litical career and run for the legislature over in Missoula county. Everyone is entitled to a guess—Joe isn't talk He is let He just "dont' choose" to talk. ing. ting the other fellows do that and they are doing a heap of it. In this way Joe gets his political advertising, like Henry Ford, free, as a thing of Dixon and Fords are always a public interest, subject of interest in Montana. One of Joe's bitter end enemies over in Helena, says, "Joe will be a candidate for governor or the United States senate or anything else, alright, that is not beneath his dignity or incompatable with his disposition, providing somebody furnishes the buss and the gasoline for the, race, and gravels the road for him: in such a condition he will run, but Joe never runs at his own expense''. So if that gentleman's contentions are correct, in order to determine what Joe will do is to find out if there are any who is willing to furnish the buss and the gasoline. It looks as if there is just such a person in this state, so we believe it is a very safe bet that Joe Dixon will be a candidate for the republican nomination for governor in the July primaries, and of course if he is, he will be nominated. Then in November he must defeat the tall Swede from Flathead county, which we opine will not be difficult this year. The governor has not made good on any of his economy promises and the people are tired of his bovine disposition and his ox-like servility to the interests of the state who bagged him and copper dragged him from the serenity of the Flathead country to minister unto them at the state house. John don't seem to fit the chair anyway and is al together too slow for Montana. The people are going to send him back to the tall timber come autumn where he will be much more at home. Say what one likes about Joe Dixon—he is al ways busy, and while the Montana Power and the Anaconda Copper Mines may have their way in the The Devil's to Pay By Leland Olds, Federated Press A European crisis, sure to broaden into a world crisis, in the spring of 1929, is the prediction of the British economist, George Paish. His analy sis of the situation is worth studying now that economic activity in the United States appears to be on a footing which grows constantly more precarious. If Paish is correct, a lit tle more than a year hence will see America deprived of Europe as an outstanding market for its surplus goods and surplus capital. Paish points out that prior to the war European investments in Russia totaled about $5,000,000,000. This en titled Europe to receive each year a tribute of nearly $300,000,000 in Rus sian products, chiefly wheat, rye, flax, hemp. A similar $300,000,000 flowed into Europe annually from America, paid in raw cotton, food stuffs, met als, etc. Europe balanced its budget and re mained solvent largely because it re ceived this huge tribute in goods with out being forced to give its own pro drets in exchange. The Bolshevik revolution and the fact that America has become a creditor nation instead of a debtor killed this income. Now, on account of war and postwar debts to America, Europe must send the What Ails Great Britain By Leland Olds, Federated Press i Tlie boycott on British goods, ( threatened by Indian nationalists against the latest coercive measure of the imperial government, shows that the cornerstone of the British nonic empire is getting loose. As the provinces undermine the economic bonds of the empire the vigor of Eng lish capitalism will be slowly sapped. Unemployment, wage reductions, more unemployment, a population increas ing .y supported on unearned income distributed in dividends or doles,—so the story of decaying empire will re peat itself. es The report on the British cotton in The slow decay which the boycott by the Indian nationalists will hasten is reflected in 2 articles in the weekly Conmerce Reports of the U. S. de pai Æaent of commerce. One deals with the decline in British trade with India, the other with the cotton indus try's difficulties in England. The report on British trade with Incia shows that the English share in total imports into India fell from an average of 63% in the last 5 pre war years to 48% in the fiscal year 3926-27. In recent years the British decline has been steady, the English share being 68% in 1^23-24, 64% in 3924-25 aH 51% in 1325-26. In the Indian market England is faced not only with the growing com petition of other capitalist nations, particularly the United States and Japan, but also with Indian -réduc tion. United States annually a tribute of more than $800,000,000. To meet interest obligations and pay for imports, according to Paish Europe should export annually manu factured goods nearly $1,500,000,000 in excess of prewar. This is impos sible, if only because the world's man ufacturing equipment, especially In America but also in Japan, India and China, has vastly increased. The bankers, both in Europe and America, has postponed the crisis by piling loans on loans. The new loans to Europe by America in 1927 are es timated at close to $1,000,000,000. Paish asks how long Europe can go on borrowing from America and an swers, "Less than 2 years. The cri tical time will come in the spring of 1920." Europe will then, in Paish's opin ion, face bankruptcy. What will this mean to labor in the United States? For one thing, out of U. S. exports totaling $4,865,000, 000 in 1927 Europe took $2,314,000, 000. In spite of this factory produc . — t . • , tion and employment m the United States declined while farmers suffer ed for want of profitable markets. If Paish's analysis is anywhere nearly correct labor should beware the ides of March in 1929. dustry, the original foundation of British capitalism, shows it almost mortally hurt. The demand for wa^e cuts and longer hours in a last effort to hold foreign markets is signifi cant. But more significant is the cot ton industry's necessity of writing dowm its capitalization. Where capi talism is healthy it is constantly writing up capitalization in anticipa tion of larger profits. Indian purchases of English-made cotton goods increased slightly from 1926 to 1927 but the value fell off sharply. The shipments to India in 1927 totaled 1,652,514,600 yards but this compares with 3,057, 351,000 yards in the last prewar year. The demand for English cotton goods in other fields of the empire shows a similar decline from prewar. In 1927 China took only 103,195,000 square yards compared with 716,533, 000 yards in 1913, Egypt 159,884,000 compared with 266,623,000 and Tur key and Syria 91,655,000 yards com pared with 360,742,000 in 1913. Eng lish exports of cotton goods in 1927 totaled 4,117,683,000 square yards compared with 7,075,262,000 in 1913. In the last 9 months of 1927 the English cotton spinning industry av eraged about 65% of capacity opera tion. In 1924, tre last year for which census figures are available, the Eng llish cotton industry showed 10% few er workers than in 1907 and produc tion down 23%. The cotton spinning companies have reduced outstanding capital by about a third since 1920. square end, after some worry and commotion, yet they always know that Joe is in the chair and that in their plans he is a factor they must consider, and that is something. . People do not die of dry rot wTien Joe is in the chair. With Dixon a candidate for governor, it just naturally comes about that Wellington Rankin will be the man who will be the republican candidate for United States senator against Burton Wheeler, and will succeed that gentleman if young George Bourquin does not nose him out of the democratic nomination—which if he does of course will alter the situation considerably. Last week Joe delivered a Washington's Birth day talk over in Butte which was followed by a republican love feast at Helena at which all of the old war horses gathered, Things are shaping. The following editorial under the above caption appeared in the Butte Sunday Miner. It pertains to a subject, the proper solution of which, is great importance to the farmers of the west as well as to the entire industrial structure of the na tion : the solution of which concerns the economic and political history of this nation as no other problem has ever affected the career of any coun try in the range of history. It should be carefully read and studied by every one. We quote: THE WORLD'S LARGEST LAW SUIT j "It appears rather odd that no greater public attention has been attracted to a lit le lawsuit involving the interstate com merce commission hat has been called the biggest law suit in the world. Upon the result of this suit hangs the disposal of a sum of money staggering beyond belief and which will have vital bearing upon -the future prosperity of the American peo ple. "Under the transportation act of 1920, the law governing the proceedings of the interstate commerce commission it is pro vided that any railroad that earns more than 6 per cent annually net, on its "fair value" must pay half the excess to the ^ United States government. To illustrate, say that the value of the road is $1,000, 000, and that it has earned 7 per cent or $70,000 in a single year. The first $60,000 would go to the stockholders along with one-half the remaining or $65,000 in all. The remaining one half of the excess or $5,000 would go to the government of the United States. "Now as to the law suit. The St. Louis & O'Fallon railroad is a little coal line nine miles long and running out of East St. Louis. It is owned by the Busch fami ly of St. Louis. The law suit is the result of an attempt on the part of the inter state commerce commission to collect $226,000 from this road alleged to be The case has some clue to the government, been won for the government in a lower court and it is to be appealed to the United States supreme court. "The entire case with its stupendous possibilities hinges upon the definition of the word "value" in the transportation act. The interstate commerce commission that the value of the St. Louis & says O'Fallon road is $900,000 and that the government is entitled to everything above a 6 per cent return on that sum. The road claims a valuation of $1,300,000. Some es timates are far higher. Anyhow, the road contends that the value is so high that under the law it has no excess over 6 per cent to divide with the government. "The interstate commerce commission hold that a railroad is worth in substance what it costs. The railroads claim that a road is worth what it costs to reproduce it in these times and that it may even be worth much more. This is known as the reproduction valuation: "Now let us consider the possibilities of this suit in billions. The interstate com merce commission has fixed a tentative What's the Matter With Agriculture By Leland Olds, Federated Press Drastic reorganization of agricul ture on a national basis appears in evitable to the big business interests but they don't want the lines of this reorganization laid down by the farm er. They want to make sure that the solution of the farm problem enmesh es the farmer more securely into the fabric of capitalist industrialism. However radical the big business pro posals, one plank is sure to be found in their platform, rejection of the McNary-Haugen type of legislation as setting a dangerous precedent. The viewpoint of big business is most thoroughly expressed in the recommendations of the business men's commission on agriculture, cre ated about a year ago by the nation al industrial conference board and the chamber of commerce of the United States. The membership of the com mission included the chairman of the i board of the St . Louis-San Francisco railway> the president of Westing house Electric, the president of the National Bank of Commerce of St. j Louis, the president of Quaker Oats, If /J pH Ji IN 9 2* H IÄUTDCA3TER1 %27 SEA FOOD for the Lenten Season This is the season of the year when fresh are at their best, and during Lenten Season it will be a specialty at our shop. We receive fresh shipments daily—and keep them in per fect condition in our great refrigerators. fish The New Meat Market Fred Forman, Prop. Plentywood, Mont. Phone 17 \ value of all railroads in the United States at $23,000,000,000. Leading financial au thorities have estimated that the railr ofds cannot be reproduced for less than $55, 000,000,000. Here, then, is a difference of $32,000,000,000. The principle that governs the valuation of the O'Fallon road must prevail with all other roads totaling 250,000 miles. That principle is to be de termined by a decision of the supreme court of the United States. Truly, the stake is almost beyond comprehension. "The vital interest of the public is found in a law 7 which requires the inter state commerce commission to fix freight rates which will yield a fair return upon the aggregate value of the roads. If the reproduction cost theory of the roads is accepted by the supreme court freight rates calculated upon that basis will be nearly doubled. "It would seem that the interstate com merce commission is fighting for the peo ple in a battle involving the hugest stake ever known in a law suit." If the United States Supreme Court holds that the valuation of the railroads for rate purposes are tb e cost va i ue> namely what it cost to build them, only entitled to six per cent dividends on that valuation, it will mean the squeezing out of the water in railroad valuation— the stock will fall to where the earnings allowed for dividends will pay six per cent on the cost of this stock, and, providing the railroads are pro perly managed, will mean a reduction of freight rates—if the Interstate Commerce Commission and the Courts would only hold that the cost of build ing the railroads determined upon for dividend purposes must be reduced by the amounts of bonuses received from the Federal and State gov ernments and from municipal sources, as they should, then the fright ,rptes would come down some more. The reduction of freight rates would benefit every farmer, every industry in the pation and would stimulate activities in every line. Many business activities today are prohibited by exces sive freight rates—every farmer, every consumer, pays tribute to the Gods of railroad over-valuation. and that the railroads are On the other hand, if the Supreme Court of the I nation holds that the replacement costs of the railroads are the true valuation thereof, and that, the stockholders in these railroads are entitled to six per cent on that valuation, under the law, then the nation by fiat, will have written a par value into the water that is in the railroad capitaliza tion, and means that the freight rates must be in creased about three folds in order to pay it, which in turn will be more than the traffic will bear and will mean that all short haul freight will be hauled by truck and that the railroads will go absolutely into bankruptcy; that the government must sooner)** or later take them over. And if again, the courts hold to the original cost theory, the stockholders will want to get rid of their half or third value railroad stock with its small and precarious dividends and away from the agitation for lower freight rates and the repeal of the Esch-Cummins law, and the industrialists into whose production costs must go freight costs, j w ith its attendant handicap in world competition, j wBl insist on lower rates along with the farmer and the consumer, then will come a nation wide propaganda for the government ownership of rail roads from the very sources that have always heretofore opposed it. Both riads lead throttgl-. different fields to the same pièce —govemment^pwnership of the rail I roads and their operation* at cost for the benefit 1 of all of the people. The railroad stockholders and bondholders would today gladly exchange their stocks and bonds United States bonds with their tax exempt fea tures and their sure interest, uninvolved with ministration troubles in any way. So the nationalization of the railroads is only question of time—there are two horns to the lemma and both have the same name. a vice-president of General Motors and the chairman of the Int. Accept ance Corporation. This commission admits that the agricultural industry is getting worse rather than better. It says: "There is evidence* that real, as well as money, costs in the industry are ris ing; that we are not keping our old superiority over competitors; that the fertility of the land is being impaired; that many if not most farmers are year after,year failing to secure a return equivalent to that which can be obtained in the city by workers of no greater* ability; that the compara tive advantage of other industries is rapidly increasing; that the obstacles to the extension of markets for farm products aVe growing more effective; that the difficulties of improving the organization and methods of agricul ture are increasing; that the year by year fluctuations in the price of farm commodities are growing ever more severe and are increasing the haz ard under which the farmer carried on his occupation; that tenancy is increasing; and that the quality of farnf population is undergoing a progressive deterioration. The commission finds this bad sit uation the result of many ' some of them "fundamental and con nected with the gradual change of Uie country from an agricultural to a pre vailing industrial nation. It sug gests that while farm prices and land values were harder hit in the posi deflation than prices in other in dustries, certain major elements in agricultural costs have continued at uneconomically high levels. These in clude state and local taxation, in ^ r ' est rates, transportation costs, which have increased following the restora tion of the railroads to private man agement and the genreal cost of dis tribution. The commission makes the interest ing admission that the shifting of the United States from a debtor to a cred itor nation, extension of tariff pro tection to manufacturing and the in crease in the tariff level in postwar have further increased the dif war years ficulties of American agriculture, both in the foreign market for its products and in cost of production. It says: "The enormous increase in gov ernmental and private foreign in debtedness to the United States has compelled the debtor nations to reduce their imports, and become more self-sufficient in re The spect to agricultural products, full effect of this change has been de- 1 ferred by continual foreign loans and is likely to be more apparent in the future." « The commission recommends gradu ally diminishing trade restrictions and tariffs on manufactured articles which tend to increase agricultural costs or to reduce the foreign market for ag^ ricultural products. It recommends the organization of farm stabilization corporations through the cooperation of farm organizations, private busi ness organizations and a federal farm board, each supplying part of the cap ital. It recommends the development of a national policy of land utilization by an endowed national agricultural ! I ; | j J i j ^ ** * i ' ' | * * I if O ❖ I ❖ ❖ ? ? s, ? if t i'f t ♦ i> 4 • • i T Fresh bread makes any meal more appetizing and in this age i* it may be had daily without ex % tra trouble and expense of home % 4 baking. V ** Bread fresh from our oven daily *, You can get it at our bakery, or 3 * f if you give us your order it will j be delivered to your home. j U J i f Try our appetizing and tempt- 4 • * ing line of bakery gqods. Cakes j ÎÎ of all kinds, pies too, dough- *1 o nuts, cookies, pastries, and right now those good HOT BUNS for ad a di I O Plentywood Bakery *'f MARTIN TOFTNESS, Prop. Plentywood Phone 14 Reduce PRIM . ^ /a ^factory Now buys aNaà .Na.hUth««*' FEBRUARY I, Nath announced v/ reduced price*. Motor Show of the year with the Nash 7-bearing motor for smoothness and greater power Now, you can buy a full 5-passenger Nash Six Sedan for only $845 f. o. b. factory. Prices on other models accordingly low. Throughout the length and breadth of the motor car industry, you* ll find no value to compare with Nash! And, Nash is the car lor trussed frame, for extra 8 ^ —2~toay, 4-wheel brakes, ^ safety— alloy steel spring!* p ^ absorbers, front and rear, or riding eomfort—and a i transmission, for super are heavy -durabitt^' rtta eta> new car» thb' For Nash is the car with exterior and interior style * and beauty which made it the center of interest at every m When you buy your ber S55i* dixplaf buy• NASH it on LEADS THfc WORLD IN MOTOR CAR VALUE The Farmer's Garage M. E. HILL, Prop. foundation. It also recommends cer-1 tain changes in taxation, agricultural * credit and railroad rates to favor ag riculture. The proposal of a national policy for land utilization is the most revo lutionary in the program. This would involve curtailment of private proper ty rights on a huge scale. The farm may well ask: Why not apply the policy to all natural resources order that they may be most ef fectively used in the interest of the nation ? « ► * ers same in RUSSIAN OIL PRODUC TION GOES WAY UP New York—FP—Soviet Oil pro Auction for 1927 was the highest annual output for 25 years, offi- i cial figures received by Amtorg Trading Corp., New York, show, Amtorg represents in the United States the Soviet Naptha Syndicate. Production for the year was 10, 413,000 metric tons. Modernization of the oil indus- ! try has been pushed in the last j year Amtorg reports. More rotary | drilling was dohe and new refiner ies were erected. AUCTION SALE Have Leased My Farm and Will Sell at Public Sale on Sec i tion 11, Twp. 36, of Range 53, which is one-half j Mile South and One Mile Eact of OUTLOOK, MONTANA Monday, March 5 SALE STARTS 12:30 P. ML SHARP HOUSEHOLD GOODS FARM MACHINERY 1 U-so-Na Iron Range. 1 spr J cot, 1 Singer Sewing Ma bine j mattresses, 4 beds with >pring-' i dining room table, 1 chiifioner l wash stand, 1 long flower table, 1 kitchen table, 1 8-day dock, i big stone jars, 1 ice cream free»] new, 1 organ, 1 lot of fruit jar<j: 15-gallon churn, dishes, and' other articles too mention. I 1 3'/2 Stoughton wagon II 1 3*4 Studehaker wagon 1 Webber truck wagon, with stone rack 1 triple wagon box 1 McCormick mower 1 8-ft Tandem disc 2 hay racks I .,4it 1 Deering Hay Rake, 12 ft. 1 12-ft. spring tooth harrow, good as new numerous li i 20-ft. iron drag 1 26-ft. Boss harrow 1 16-in. Emerson Sulky plow, with stubble and breaker bottoms 1 14-in. Emerson gang plow ana eveners, nearly new HORSES I 1 black gelding, 9 yrs. weight itttI 1 black gelding, Ray, 9, wt. 1* 1 black gelding, Frank, 13,wUW 1 gray gelding, Prince, 12, wt 1M 1 gray mare, Katha, 12, wt. 1450 1 black gelding, Thom, 11, wt 1401 1 black mare, Beauty, 18, wt. 1250 1 14-in. walking plow Il 1 10-ft. Monitor disc drill I 1 John Deere manure spreader 1 Deering binder, 8 feet, in good condition 1 Rocklsland side spring buggy 1 Drag Cart 1 l x /2 h. p. Economy engine 1 pump jack 1 tank heater MISCELLANEOUS pole and fills 1 lot of potatoes 1 Stack of hay 1 bundle hog netting, 13 rods 1 bunch of wood 1 galvanized water tank l Gummer smut machine 2barreU 1 DeLaval Cream Separator,So. 12 1 grindstone 1 blacksmith outfit 1 small tent 1 brass cylinder, ne» Some galvanized pipe and cistw 1 riding cultivator 1 log ta HARNESS 5 sets of double harness 1 set single harness pump TERMS OF THIS SALE STRICTLY CASH 0.1. GALLAND, Owner : x Frank Koester, Clfli R. W. Ruegsegger, Auctioneer : ■^K~r ■! jusar.TTirrr 'f************^ fob ; Protect^ AGAINST ! GET a Policy IN THE Northwestern - Na tio nal FORPiriT §EE "JERRY" AGEIST L 'TtU or Addri* ~" POWELL t I • Can 1 G. G. ♦ \\ Plentywood