The producers news. [volume], July 20, 1928, Page PAGE TWO, Image 2

About The producers news. [volume] (Plentywood, Mont.) 1918-1937

Image provided by: Montana Historical Society; Helena, MT

                
THE PRODUCERS NEWS
Paper of the people, By the People, For the People
By the Peoples Publishing Company, Publishers.
CONTINUING—The Outlook Promoter, The Outlook
Optomist, The Dooley Sun, the Antelope Independent,
The Sheridan County News, The Pioneer Press and the
Sheridan County Farmer.
CHARLES E. TAYLOR, Manager
P. J. WALLACE, Editor
FRIDAY, JULY 20, 1928
PRODUCERS NEWS IS CORRECT
The primaries just closed affords the Producers
News the most rare opportunity of telling its readers,
"we told you so."
For instance, in the issue of July 6th, P. J. Wallace,
in a special article prepared for the farmers'
said:
paper
"At last the smouldering fire of the
between William A. Clark, Jr., and the Ana
conda Company have burst into flames,
and a war which promises to rival the Clark,
Daly or Hinze Amalgamated battle of the past
is on.''
This story was a scoop—the news appeared in the
Producers News before it appeared in any other paper
in the state—a remarkable achievement for a country
weekly, and is just one instance of the many things
that has made the Producers News the foremost
try weekly newspaper, not only in Montana but the
entire northwest. The truth of this story is
known to all.
Further the article said:
"As a matter of fact since John and Con
book up their residence in New York the ef
ficiency of the Company 'crowd' is being bad
ly impaired"
The results of Tuesday's primaries proves just how
true this statement is—Anaconda never met with such
defeat before in the history of the Treasure State.
Another political article appearing in these columns
»aid:
war
* *
coun
now
"Ayers and Erickson are in death
Judge Ayres is giving the present governor
the battle of his life."
Gov. Erickson is reported to be leading Ayers by
almost a thousand votes, after being led by Ayres for
the first day after primaries—this in spite of the fact
that the Anaconda millions and all of their
pers and political resources were behind Erickson,
Another conclusion published three weexs before
election:
gripes;
newspa
Wise prognosticators are of the
opinion
that, due to the fact that Anaconda must
throw most of its support to its candidates
in the democratic primaries, that Rankin' will
be the republican nominee. Dixon and Rankin
at the head of the Republican ticket! What
an exodus of the labor and progressive vote
there will be from the Democratic party!"
The Producers News said that Rankin and Dennis
would lead the republican ticket, but Rankin would be
nominated as the company vote was divided. It pre
dicted the nomination of Joe Dixon for Senator on the
republican ticket and of Wheeler on the democratic
slate for the same office. It predicted nomination of
George Bourquin for Attorney General on the demo
cratic ticket, and Miss Ireland on the republican tic
ket for Superintendent of Public Instructions.
Producers News said that Judge Paul would carry all
three counties for renomination—and he did: it pre
dicted the nomination of Hans Madsen for sheriff
the republican ticket and told the voters of the
The
on
way
the opposition was kidding "Bob" Robke—it all proved
true.
Yet in spite of all of these things there are those
wh© say that the Producers News cannot be relied
upon—that it has no prestige, etc. etc.
As a matter of fact the Producers News can be re
lied upon—and it has prestige, lots of it, not only in
Sheridan county but throughout the State of Montana
and even in the capital at Washington itself—such as
no other country weekly in the nation possesses.
The people of Sheridan county appreciate the Pro
ducers News and are proud of its
success, and the
name it has made for itself.
This paper will continue to keep its readers informed
of the news as it occurs and the political developments
as they unfold. It will do it carefully, and conscien
tiously, knowing that when people read what appears
in its columns they believe it is true—a reputation
which we intend to maintain at all costs.
CORPORATION STOCKHOLDERS
Every now and then you see a nice advertisement in
the newspapers telling about the 40,000 stockholders
of the Great Northern. The Montana Power also
boastfully tells about its stockholders in the state. This
is done to gain favor with the public and intimidate
public men who are inclined to get such corporations
to pay their fair share of taxes to the state and charge
fair rates for the things they have to sell.
The New \ork Times has kind of blown up the fic
tion that there is widespread public ownership
stocks in great industrial enterprises.
"There are," says the Times, "
whose common and preferred shares
the New York exchange. A total of 529
plied to a questionnaire sent out by the New York
Times. These reports disclose that these 529
porations now have a total of 2,799,438 stockhold
ers on their books. This compares with 2,072,135
at the end of 1923, an increase of 35.09%. It is
estimated that the increase in common stockhold
ers from the 568 corporations listed on the stock
exchange, whose figures are not available, brings
the round total of the expansion in this class of
holders to well over the million mark in the last
5 years."
Employe and customer stockowning campaigns are
noted as important explanations of the increase in
stockholders particularly in the utility industry. Bank
ers and industrial leaders expect decentralization of
securities to continue.
of
1097 corporations
are listel
on
re
cor
The weak point in this argument is the fact that
the millionaire owners of American corporations
^ ^m own
the common stocks of a large number of concerns and
that the recent tendency has been for these wealthy
men still further to diversify their holdings,
the estate of Anna Harkness, widow of
Standard Oil partner, revealed blocks of stock i
Thus
an original
more
than 30 corporations. She would have been reckoned
more than 30 times over in the Times compilation. The
Rockefellers, the Bakers, the Mellons, the big found?
tions, universities, and so on all the way down to the
more modest members of the owning class, all would
similarly be counted over and over again.
If the 30,000 persons wfth incomes of more than
$60,000 averaged holdings in only 10 corporations each
-ney would be counted as 300,000 stockholders; if the
329,916 with incomes of more than $10,000 averaged
only 5 different blocks of stock they would count as
more than 1,500,000 separate stockholders on the basis
chosen for this propaganda.
Well Bob Robke can now settle down to his work
after his little experience as a candidats. Bob knows
now that all is not gold that glitters. He can be
thankful that his campaign ended July 17th instead
of next November: he will save that much time and
money—and in the future we suggest that he take his
political advice from his friends instead of spoofers
like Jack Bennett and Oscar Collins.
We hate to kick a man when he is down, but George
7udhie was unfortunate in his selection of a publicity
man and campaign manager, and the line of "crap
he used in the last week of the campaign—for Cudhie
is not such a bad sort though he does not seem to be
able to get many votes.
T r.in « • r -
The Story of the Promotion of ::
Brotherhood Banking ||
•••
❖
?
❖
o
*
i*
I By John Gabriel Soltis
» » * » » » * » * » * » * * *
(Continued from last week)
THE BREACHES IN THE LEGAL WALL
On the face of them, the articles of incorporation
reveal nothing unusual or extraordinary. They read
very harmoniously in their wrapping of legal phrase
ology. Their face is very innocent, indeed, to the
casua Ireader. Such is the aspect of all dangerous
legal documents. That is why lawyers are trained; vo
put things over legally within the limits of the law.
This document is a classic example of the dubious art
of the lawyer.
The Pacific Brotherhood Investment Co. of Seattle,
Washington, is a sub-sidiary of the Brotherhood In
vestment Company of Cleveland, Ohio. Its control is
provided for by ownership of fifty-one per cent of the
common stock. Webb and Paddock can assign the
proxy to Cass and Merrick. They ostensibly guard
and protest the interest of the Brotherhood Invest
hood Investment Company. THAT IS TO SAY THAT
ment Company of Cleveland, in the Pacific Brother
THEIR POWER IS SUPREME IN THE AFFAIRS
OF THE PACIFIC BROTHERHOOD INVESTMENT
COMPANY. They are the real bosses, whose authori
ty is based upon their voting the majority stock by
proxy. Behind them, it must be always remembered,
stand the two giants at Cleveland, Webb and Pad
dock
l.
Under the first title is set out the name of the
poration, "The Pacific Brotherhood Investment Compa
cor
ny
II.
Under the second title is set out that its principal
office in the state of Delaware is located at No. 7
West Tenth Street, in the city of Wilmington, and in
harmony with this the "By-Laws of this corporation
under the title "officers", provided Jhat the principal
office shall be in the City of Wilmington, County of
Newcastle, Stäte of Delaware.
in.
Article three of these articles of incorporation sets
"nature of the business, or objects or pui
poses", or scope of the business.
forth the
And a few of these
objects and purposes are as follows, to-wit: i
on a general investment, mortgage, loan, bean, com
mission, insurance business, borrow-money, issue notes
or bonds, buy and sell stocks, buy and sell timber
io carry
pro
ducts, to operate farms, purchase and sell live stock,
buy and deal in merchandise of all kinds, construct
stores, dwelling houses, to manufacture deal in and
with goods, wares and merchandise "of every class and
description", to acquire letters patent of the U. S. or
any foreign country.
Then, "in general, to carry on any other business in
connection w th the foregoing, whether manufacturing
or otherwise, as atural persons might or could do."
Then there follows a final clause which in effect
says, that if there is any line of business which wc
may have forgotten to mention and in which this cor
poration might care to engage, the power to do that is
also granted, whatever that may be.
IV.
Section four of these articles sets
out that:
The
are or may become the hold
ers of the preferred stock of this issue by the accent
ance of their respective certificat©* fnr , •
the right to vot© ,L It . certltlc ates for stock waive
^ . , P r in respect of any increase or
or change in the capital stock of the com
pany and irrevocably appoint the secretary of the com
pany their proxy and attorney in fact and „»a
empower him to vot© all of tV V and authorize and
issu© nnoo T, l ? he preferred st ock of this
• » SUCa ques t lori m the same manner as the
majority of the common stock of the company is vot
ed. 'Full voting power and control of the corpora
tion shall be vested in the common stock". The peo
ple who put the money into the enterprise have P
voice whatsoever.
total authorized capital stock of this
... . _ corporation is
thirty thousand (30,000) shares of preferred stock of
the par value of one hundred dollars ($100.00) per
share, amounting in the aggregate to thirty million
dollars, ($30,000,000.00), and thirty thousand
shares of
value.
(30,000)
or par
common stock without nominal
An interesting and unusual clause of Section 4 is the
following: "Persons who
no
V.
The fifth article provides that: "The number of
shares with which this corporation will commence
business is ten (10) shares of common stock without
nominal or par value. "Not a thin dime put into the
leTtoTh by th I lncorporators * This is a deadly parai
elsewkere Pr0C Ure " wreckin * employed
VI.
The sixth article
provides,
have perpetual existence".
'this corporation is to
vn.
maWe »"kHTd " to"",« * St ° Ckh ° ,der
si: Âîïàff-s r? Ä
ho might JSXlZTZ?Z st 0 T ,d :' that
under the ground, January thetnth lZi ^ ^
to, and the stockholder would U °' " Tlmbuc '
in law or in equity. This board of1"° ™ dress ' eitheI
section may ho.d^thefr ^gs thiS
this earth. They may hold thefr me::w s a : t y r h h " e
Pole or in Bombay, Cork or at Spokanf Wo.v T' h
Under this same section it is provMed thkAf lhfT'
laws so provide (and the bylaws under th!V., S by '
tive Committee, Section !B, do pro^d© to
two or more of its members to constitute an d gn ® te
committee, which shall for the time hebt eC "* 1Ve
in said resolution or in the by-laws of rhtl
have and exercised any or all of tb© cor P°r a tion,
board of directors in J*
and affairs of this corporation, ? and fa™ the " e "
authorize the seal of this ne
all papers which
also provides that
un
as provided
power to
corporation to be affixed to
may require it." Thi., section
<rS Ka JT the affi ™>aHve vote of
(Contmued next week)
*
Economic Articles
By Leland Olds, Federated Press
Machinery Puts Steel Worker on
Scrap Pile Though Output Grows
Machinery is rapidly displacing la
bor in the blast furances of the coun
try, as shown by U. g. Commissioner
of labor statistics Stewart. He shows
that the average blast furnace em
ployee in 1925 was producing 50 times
as much pig iron as he could have
produced with the machinery avail
able in 1850 and nearly four times
- h m - h tu -
was in the of for
In 1925, 29,188 blast furnace work
ers produced 36,700,566 tons of pig
iron, an average of 1257 tons per man.
In 1914 the number of blast furnace
workers was almost exactly the same
as in 1925 but they produced only
23,332,244 tons of pig iron or 795 tons
per worker. In 1919, 43,296 blast fur
nace workers or 48% more than the
number on the payrolls in 1925, pro
duced 31,015,364 tons or y6% less
than the 1925 production.
The epoch-making fact in Stewart's
figures is that an increase in pig iron
production from 504,245 tons in 1850
to 36,700,566 tons in 19225 added less
than 9,000 jobs to the 20,298 which
blast furnaces afforded in the earlier
year. At the close of the 19th century
the blast furnaces were employing
39,241 workers at least 10,000 more
than in 1925, yet were producing only
13,620,703 tons of pig iron.
British Labor to Try Harmony Idea
Capitalist-labor cooperation in Eng- J
land on a larger scale than ever is
proposed by the Mond-Turner
committee. This committee, repre
sentative of the most important Brit
ish employers and of the British
trades union congress, proposes a per
manent national industrial council of
en 2m!°^ ers ar î d employes.
The committee originally called to
gether by Alfred Mond, the leading
spirit in the great British chemical
combine, has been considering some
peaceful modification of capitalism,
The national industrial council would
consist on the employers side of vnem
bers nominated by the natioanl con
federation of employer organizations
and the Federation of British Indus
tries, and on the worker side of the
full membership of the trades union
congress general council.
The Chicago Journal of Commerce,
which appears to be the only Ameri
can capitalist sheet recognizing the
significance of this report, says: "In
the first place it carries full recogni
tion by empolyers of the rights of the
trades union council to speak for
unionized British labor, but
second—which is more important—it
puts the governing body of British
labor on record as desiring to work
in harmony with the employers."
One of the functions of the
posed national industrial
would be to settle industrial disputes
and prevent strikes and lockouts. But
the joint meetings so far have taken
in a much wider range of discussion
than mere conciliation and arbitra
tion, including recommendations deal
ing with a flexible credit structure,
victimization of employes for trade
union membership, union recognition
in the
pro
council
Sharks Again Rip Dodge Bros.
Dillon Read & Co. are again re- (
vealed as little more than a gang of
freebooters in C. H. Goddard's fruit
less attempt to secure an injunction
against the merger of Dodge Bros,
and the Chrysler corporation. God
dard's complaint calls attention to the
ruthless treatment accorded him and
other holders of Dodge preferred stock
who put up the real money with which
Dillon purchased and reorganized the
corporation, in 1925. .
Study of the merger terms together
with details of the financial juggling
in the 1925 reorganization show that
Billon Read profits on the whole
transact ion will amount to tbout 40
million dollars although they actually
put n0 money into the deal. In sharp
contrast the preferred stockholders
will come out with a loss of at least
$ 15 > 000 >°00 - even if Chrysler stock
maintains its peak market value,
what's more , they w m receive a stock
with a book value of about $20 and
an annual dividend of $3 in exchange
for a stock for which they paid $100
and ° n which the divideTld was $7 a
year.
In the original Dodge reorganiza«
tion in 1925 Dillon Read & Co. made
an immediate cash gain of $27,250,
000. With each share of Dodge pre
ferred stock went a bonus share of
no-par class A common stock. Dillon
Read & Co. also issued an additional
650,000 shares of this class A stock
to themselves and retained the entire
500,000 shares of no-par class B com
mon stock which represented the en
tire voting control. When they put
over this deal Dillon Read kidded the
purchasers of preferred shares with a
clause entitling them to $105 a share
on dissolution of the company. But
this stock was given a book value of
$1 a share.
The merger terms recently worked
out between Dillon and Chrysler allow
the holders of Dodge preferred 1
share of Chrysler common with a
market value of $68.50 for each Dodge
share and 1 share of Chrysler com
mon for each 5 shares of Dodge class
A common. This means Chrysler
stock of a total market value of $82.
50 and a book value of $24 for each
$100 which they invested in Dodge,
They have little choice but to accept
this offer for without Chrysler, Dodge
is likely to head for bankruptcy in
which event the assetfe available for
division would give far less. _
Meanwhile Dillon Bead interests
are also exchanging the 650,000 shares
of class A Dodge common lor which
they paid nothing for 130^000^jdiares
the 600,000
of Chrysler .common,
they are exchanging
shares of class B Dodge common for
which they paid nothing for 50,000
shares of Chrysler common, these
170,000 shares of Chrysler common
have a market value
be added to the $ 2
these freebooters grabbed out of the
original reorganization.
The real theft from
vestors occurred threee y ears o a ?°
Dillon by the present deal is simply
the small in
To secure the 1926 production on
the 1899 basis would have afforded
employment to more than 105,000
workers instead of the 29,188 actual
ly employed. The difference indi
cates the number of workers displac
ed by machinery in a quarter of a
century.
Commenting on the'trend Stewart
says: "In other words the manufac
turing industries, particularly as rep
resented by the blast furnaces, are
not going to take care of the increase
in the working population. It must
be apparent that the attitude which
one will take toward these figures
will depend upon whether one is in
terested in the prosperity that comes
from enormous production and almost
startling output per employe or
whether one is looking for a job. The
problem today is to reconcile these
two points of view,"
In the age of iron and steel, with
the population of the country in
creased from 23,000,000 to 115,000,000
the workers required for production
of pig iron increased only 44%. The
vast expansion was secured through
substituting machinery for men.
Census of manufactures figures
show that in the last 25 years the
proportion of blast furnace wages to
the total value of pig iron produced
has fallen from 9% to 6%.
and reorganization of industry along
mass production lies with modern ma
The general council of the trades
union congress accepted the report by
18 to 4. The matter will be present
ed to the annual meeting of the con
gress in eptember. The council re
jected by 15 to 6 a motion bv George
Hicks "that the conversations with
what is known as the Mond group,
having in our opinion reached the [
limit of their usefulness, be forthwith l
discontinued and the Mond group be
so informed."
The shift toward cooperation be-1
tween labor and capital is also reflect
ed in the policy of the British Labor
Party. It has aroused considerable
opposition, particularly in the more
radical wing of the movement led by
Secy. A. J. Cook of the miners. The
South Wales Miners Federation de
dares:
"While not rejecting the principle
of negotiating with the employers
definite questions of wages and hours,
this conference emphatically declares
that the business of trade union lead
ers, when British capitalism is in dif
ficulties, is not to assist the capital
ists to bolster it up but to rally the
workers to wider and wider attacks
leading to its complete overthrow."
At present Cook and his followers
appear in the minority and it is like
ly that England will follow Italy, al
though in less spectacular fashion,
along the line of class collaboration
on a national scale. Considerable op
position to the Mond plan comes from
the smaller industrial capitalists who
do not favor centralization
hands either of the trades union con
gress or the big capitalist combines.
on
in the
washing his hands of responsibility.
As usual "it's the rich that get the
gravy" and this time the gravy is
worth 40 million dollars.
THE WORLD HAS A MW AND FINER MOTOR EAR
«/ on j
esigns
The new Salon Body design for the
new "400" series was developed
after extended personal study by
Mr. Nash himself of the latest
tions by European body artists of
International fame.
Original ideas in body artistry
co-ordinated with the most mod
em developments revealed in for
eign and American Salons.
And the Salon Nash design is the
perfected result—a new body type
of the most modern beauty.
It could fittingly adorn a chassis
priced at many thousands of dollars.
Nash invested a fortune in dies and
machinery to create it.
crea
But you may avail yourself of it on
a line of cars notably moderate in
wore
price.
In body design» as in other impor
tant features» Nash has apa ; n out
stripped all competition.
The World has a new and finer
motor car—with a radically new
and finer type of body.
N
4 oé
m
n
Serin
The Farmer's Garage
M. E. HILL, Prop.
192g
Raskob Revealed as Labor's
Inveterate Foe
By Harvey O'Connor, Fed. Press
New York—John J. Raskob, head of
General Motors finance committee
and powerful in allied duPont inter
ests, new Democratic national com
mittee chairman and intimate friend
of A1 Smith, is revealed by labor of
ficials and labor research experts as
perhaps the most dangerous and pow
erful enemy of the organized labor
movement in America.
Raskob, head of America's most
vigorous financial and industrial cor
poration, boss of 300,000 workers, ac
claimed successor to labor-hating
Judge Elbert Gary of U. S. Steel, and
the acknowledged spokesman for Big
Business, has just been made demo
cratic national chairman at A1
Smith's direct request. Owen D.
Young, head of General Electric, and
with Raskob, leader in American fi
nance and industry, had also been
mentioned for the job. Raskob lists
himself in Who's Who as a Republi
can and a 'capitalist.'
Raskob's company union for 75,000
General Motors workers at Flint was
denounced in a memorable speech
from the floor of the Detroit conven
tion of the A. F. of I. in 1926 by
John P. Frey, then editor of the Meld
ers Journal, now secretary of the A.
F. of L. metal trades department.
Frey now finds Raskob at the head
of anti-union forces blocking the pro
jected A. F. of L. drive to organize
the auto industry.
Raskob's edict breaking the United
Mine Workers was revealed to the
senate committee investigating the
coal industry last spring by one of
the biggest operators in the Pitts
burgh field. His ruthless wage cut
ting in General Motors and Fisher
body plants has been the subject of
repeated protests in the labor press.
He has been the foe of every kind
of unionism—save company unionism
—for his 300,000 workers.
company union at Flint as an outrage
and an effort to shackle his workers
in chains of industrial feudali&m.
"This company union" asserted Frey,
"collecting $1,755,000 a year from its
employees, is only interested in them
while there is work. They make no
provision for idle days, for layoffs."
The checkoff, Frey remarked was
"not bad financiering, considering
that during the last six years they
have increased production of their
employees 100 per cent."
Part of the Raskob policy, Frey as
serted, was to swamp Flint with hosts
of jobless workers to beat down stan
dards of those already on the job.
The poor commissioners of Flint were
obliged to condemn the Raskob policy
as loading the city with heavy tax
burdens,
Raskob was one of the American
dictators of industry and jobs who
decreed that the United Mine Work
ers must be smashed, John H. Jones,
head of Bertha Consumers Co., a
large coal corporation operating in
western Pennsylvania and West Vir
ginia told the senate coal commission
how he was clubbed into non-union
production.
For 37 years Bertha Consumers
employed union miners under con
tract with the United Mine Workers.
Jones' company produced 3,500,000
tons a year of which General Motors
bought 600,000. Jones told miners of
ficials in June 1927 that he was pre
pared to sign the Jacksonville agree
ment. "But yesterday" he confided
to them, "I was told by the purchas
ing agent of General Motors that I
cannot sign the Jacksonville agree
ment at all and that I must conform
myself to the policy of the Pittsburgh
Coal Co., or they propose to ruin me."
Pittsburgh Coal is the most militant
of all anti-union coal corporations.
Joseph Brown, in an article entitled
Body by Fisher, explains in a forth
coming issue of Labor Age how a
Raskob General Motors concern cuts
wages. Eighteen dollars a dav
the wage for skilled l *as
fore Raskob took over'ph* 1 "'* be -
"What happened to tL hfe,®^
Brown* 6 " FiSh " "W?*
"Thousands were displaced hv
chinery. They now work
faster and the harder they w „rV
faster their wages seem to'droS Vl*
er workers are now engaged£ F h *
otonously repeating a smallJH "l 0 "'
u-st like the Forderte?" "&'?
longer receive time and a W?/
overtime. Their places can \£ lm
ed m a short time by inexnerilJ
men, and even women mexpenen <*d
Paid
askg
ma
and
WOLF POINT MAN USES
PLANE TO SELL CAR
„ Wolf , « int *~ Ed Camrud, owner
Camrud Motors, and also a stodlhol?
in the Wolf Point Air Ways (5*
has made a record for quick sal
a car by making use of the pla„
ceived last Monday within
hours after it reached the
field in charge of pilots Cook
er
re
a few
landing
and Wi
ley.
Mr. Camrud has a prospect for
car south of the river and engaged
the plane to take him there. This
to Fred Ahrens, the well known farm
er 22 miles southeast. When a .air
man flies out to your farm and you
know he has something good and de
sirable to offer you, you simply can't
refuse. Mr. Ahrens bought the Olds
and came back in the plane to Wolf
Point to get it. The return trip took
only 14 minutes. The beautiful
car was taken to the field and
beside the air craft and both
snapped, also some of the
ficials and pilots.
a
new
ranged
were
owners, of
Great Falls—Right of way secured
for federal aid Sunshine Trail,
it
//
m
;
(SZSEZSD^
WHOLESOME
MEATS
FOR
BETTER MEALS!
Good meat is the foundation of
every meal. Every housewive
knows how impossible it is to
plan a meal without it. At
Forman's Meat Market you re
ceive only the finest cuts-nd
the most economical prices.
Our meats are received fresb
daily—and kept in modern re
frigerators — thereby assuring
you the best at all times.
Try us once and be convinced.
Forman's
FRED FORMAN, Prop.
Phone 17
Plentywooé