The producers news. [volume], January 25, 1929, 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
»fie, far the paapla
Paper of the people, by the
By Peoples Publishing G
CONTINUING—The Outlook Promoter, The Out-
look Optimist, The Dooley Sun, The Antelope In-
dependent, The Sheridan County Nows, The Pio-
neer Press and the Sheridan County Farmer.
CHARLES E. TAYLOR. Editor anM Manager
FRIDAY, JANUARY 26, 1929
HOW ABOUT A RADIO CLUB FOR
PLENTYWOOD?
The radio has become a fixture in many homes of
Plentywood and Sheridan county, and in those homes
where machines are now operating, it has almost be
osme a necessity.
This brings up the question of a radio club, which
will act as an organized body for better radio recep
tion.
Practically all the larger cities of Montana have
Radis Clubs at this time and their work has been very
affective in combatting the influences which effect
radio programs. In Plentywood, there have been many
complaints of undue disturbances which effect the
programs of the air. A radio club would have an or
ganization which would devote its time to ferreting
out the causes of disturbance and correcting them if
possible. In this week's issue the Producers News is
carrying an article from Great Falls which will be in
teresting to all radio fans. Be sure to read it and
then get together and form a Radio Club.
A JOKE CAN BE CARRIED TOO FAR
A few days ago some neighboring boys in the south
Outlook country played a practical joke on one of
the young men of that community by taking his car
and hiding it while he was in Outlook with several oth
ers attending a basketball game. When the young
man returned he noticed that his car was gone and be
lieving it stolen gave a general alarm which brought
out the whole neighborhood late at night to search for
the missing machine. Just as the young man was
starting for Plentywood to notify the sheriff of the
robbery of the car, the headlights of the machine which
he was driving disclosed the auto hidden be
hind a straw stack. With the prevalence of car steal
ing going on, this form of practical joke is very seri
ous and should not be tolerated. There are many ways
of having fun without causing the worry and discom
fort caused by the supposed loss of a machine which
has cost a lot of money and which is the pride of the
owner. Of course, the hoys only meant well, but it is
carrying a joke too far, and while the young man in
the Outlook country was greatly relieved to find his
car, some of the neighbors who had gotten out of bed,
dressed, and went out into the cold to search for the
car were very angry indeed, aqd promised severe meas
ures if such a happening occurred again.
WRITE IN YOUR VIEWS
\
During the winter months to come before spring op
ens is a good time to write your views on questions
and problems of the day. We have a special letter box
devoted to correspondence of this nature, and we wel
come letters of every opinion.
We believe this department should be one of the most
interesting features of a paper owned by the farmers,
as in this way, different opinions may be brought be
fore the public and discussed. Don't be afraid to write
what you think and while, of course, the theme written
about, should not he personal or of a mud-si in ging
character, the article should be actually what is
your mind. Surely in this fast-moving, machinery age,
with its lightning changes in modes of living, dressing,
eating, working, political and county issues, there is
something for every constructive min'd to write about
and tell your views. Do not neglect this important de
partment of this paper and while giving you a chance
to relieve your feelings of what is on your mind, it will
also help to make the Producers News a more interest
ing paper. All articles must be signed, but if you do not
wish to have your signature in print we will sign only
the initials, but we must have the full name on the
article sent in for our own reference, and it will he
personal with us.
Let's have a up-to-the-minute letter box department,
or open forum, and we are sure you will get a great
deal of good out of it, as well as those who read it.
on
YES, WE HAVE NO BANANAS TODAY
The Montana State Highway Commission is
busy showing the members of the State Legislature
how they have spent the gasoline tax money, and they
are being boosted by towns and cities over Montana
who have fine graveled highways leading into and out
of their bailiwicks, but it is terrible for other towns
and cities to protest because they have not
foot of road touched by the highway commission in
the way of graveled highways. We wonder if those
towns would be as enthusiastic for highways if the
branch line from Scobey to Bainville was graded and
graveled while the main line roads say between Poplar
and Glasgow remained in their almost' impassable
dition of a few years ago. It is laughable, to say the
least, to see such newspapers as the Wolf Point Her
ald, knocking those who are asking for the same ad
vantages which they have, and for which they
spending their good money as well as the Wolf Point
ers. Just as if the merchants of Plentywood and the
farmers of Sheridan county are not as much entitled
to these improvements as well as other cities and
towns of the state who are catering to the trade of the
people of their county.
now
seen a
con
are
WHO WILL BEAR THE BURDEN?
(From the Montana Free Press)
The burning question before the Montana legislature
is, Y/ho will bear the burden of increased taxation to
meet the needs of the state government? The Ana-
conda Copper Mining company's administration of the
state government during the last four years finds the
state in pressing need of more revenue, estimated at
from $1,000,000 to $1,500,000. During the four years
of Erickson's administration, in which he had the aid
and comfort of "Governor" Murphy—few states have
-the state re-
the benefit of two governors at one tim»
ceived more than $3,000,000 in excess of the revenue
received by it when Dixon was governor. It spent that
money, and comes up to the present legislature about
$3,000,000 in debt and a million and a half behind its
needs in revenue.
What is to be done?
be prepared to be more heavily taxed. The record made
by Erickson is conclusive proof that economies of ma
terial character cannot be expected from a copper ad
ministratin of the state, but that all new taxes will be
eaten up and demands for more be made. The gov
ernor in his message told the legislature that it must
further tax the people. This part of the message has
been sinking into the legislators' minds and into the
legislators' minds and into those of all of tile people
in the days which have passed since the message was
read.
Apparently, the people must
«
The great question, Who is going to pay the taxes?
The governor did not say in the message who is to
pay. He suggested, however, that everybody else pay
except the copper corporation. He pointed out that the
classification law could be repealed, so that all kinds
of real and personal property might be taxed at 100
per cent of their value instead of in the percentages
named by the classification law. If that was done, it
would not add anything material to the taxés of the
copper corporation, since that concern pays its chief
taxes on net proceeds, and sometimes it doesn't return
any to the assessor. Last year it didn't, and compli
ments were paid to its bookkeepers.
Governor Erickson might have devoted one of his
solemn paragraphs to the promulgation of the equit
able doctrine that all property should share in the in
creased burden of taxation proposed by him. But he
did not do that. There was nothing whatever like it in
his message. If his copper patron was in his mind, he
did not let it be known.
As asked before, Who is to pay? Are the stockmen
of the state to bear the burden? Are the farmers of
Montana to dig deeper into their pockets to pay for
levy to the constitutional levy of two mills, and tax
the merchants to pay a greater share of taxes from
their incomes ? Are the home owners to squeeze a
little closer in their living and pay more taxes? And
is the great copper corporation to escape?
These are interesting questions, and they are deeply
concerning the members of this legislature.. Little com
fort is to be obtained from Governor Erickson's views
on the subject. In his message, he blandly offered the
people the alternative—in case they desired to retain
the classification law—of further taxing themselves by
increasing the state tax levy limit. The legislature,
he said, could submit this proposition to the people for
a vote. In case the people decided to add a special
levy ti the constitutional levy of two mills, and tax
themselves that way, the Anaconda company would
have no objection.
That would not touch the company's net proceeds,
and, w : lh copper at 17 cents a pound, there probably
will hr some net proceeds to report to the assessor in
1929. with all due respect to the cleverness of the book
keepers. The governor was sure then a nice, business
like adnvnistfation could be had, in case the classifi-;
«•«•» ««r the
two mil', for state purposes. Of course, they could
levycthe two mills if they wanted to do so. but they;
wouldn t doit, not so you could notice it, in the govern-1
or s onii -on. _ -
These two methods exhausted the imagination of
Governor Enckson and his advisers in composing the
message. But it cannot be said that they also limit thei
tax f y:s oc of the legislators. The stockmen of eastern
Montana arid other parts of the state, and the far-flung
farmers of the state, represented by members in house
and sena.e are rot quite so sure that there are no
other moans of raising taxes.
Without going into that matter, it should also be
stated that a good many legislators are deeply impress
ed by the principle that, if the state government must
have move revenue, every kind of property should
e in providing it. That the additional taxes
that have to be levied be imposed upon all property on
a just and equitable basis, and that the Anaconda Cop
per Mining company, be required to pay its full part
*
equa.y
of the same, no more, no less.
There is no reason why the company should not do !
this, and that, with copper at 17 cents a pound, and
production being speeded up, it is fully able to do
evident.
_
Furthermore, since it was due to the copper corpora
tion's overwhelming political aid that Governor Erick
son was elected in 1924 and reelected in 1928, and be
cause it has practically ruled the state's government^
since Enckson went into office, some responsibility for
the state's financial condition rests upon its shoulders,
That might be urged as a further reason why it should
pay its proper share of any additional taxes levied.
Regardless of that, however, the sentiment that is
gfrow "g stronger and stronger in the legislature is
congealed
îa
so ja
In 1924 as we recollect, about the timie the
Chile mines were purchased, a statement was issued
by the company shewing that its net earnings for ten
years prior to t >. t : me aggregated, to the be.-t of our
recollection, $164 000 000. It *has been and still is a j
very prsperous industry.
* ♦
in the proposition that, if taxes must be in
crea d to meet the state administration's demands, all
km 1 o r property in the state must share-equitably i
. In demanding that that principle be given
expression, the legislature will stand on solid ground, j
and U it embodies the principle in the laws that it
passes m c<> m otion with tax increases it will receive
the comm v i.on of the people of Montana.
in
the h^Lutn
•>
B f OM», Federated Prams
Packers Slice Big Profits
The annual reports of three big
meat packers show that the industry is
again swinging back into the profi
teering stride which made it notorious
over the greater part of the last half
century. Swft, Armour and Cudahy
took 1928 profits to a combined total
of more than $55,000,000, leaving $28,
706,936 for stockholders after heavy
deductions for depreciation and bond
interest. In the case of each company
this meant a high rate of return on
the money actually invested by the
owners. In each case the bulk of the
present capitalization rests on excess
profits accumulated at the expense of
farmers and consumers.
Swift & Co. reports a 1928 net of
$14,813,182 after deducting deprecia
tion and interest. This is $2,610,689
ahead of the 1927 profit total. It
gives the stockholders a return of
$9.87 on each share now held. But
this understates the actual rate of re
turn on money invested by the owners.
Although the huge concern has assets
totaling $347,696,724 with capital
stock of $150,000,000 par value the
federal trade commission, in a report
published in 1920, shows that the own
ers actually put less than $86,233,000
into the business.
The 1928 profit represents a return
of about 17.2% on the money actually
invested by the owners. Brought
down to date the federal trade com
mission figures show that since 1896
Swift stockholders have taken profits
totaling about $324,000,000 or 375%
on their investment, an average annu
al return of more than 15% on the
average investment during the pen
a
od.
Profits of Armour & Co. are less
striking. Net earnings for 1928 be
fore the deduction of of depreciation
and interest totaled $30,692,730, a gain
of more than $10,000,000 over the pre
vious year. After deducting $8,535,
823 for depreciation and $10,730,482
for bond interest there remained
profit of $11,326,425 for Armour
stockholders. This is quoted as a re
turn of $1.12 a éhare on the 2.000 000
shares of class A common stock after
payment of $9,080,105 in preferred
dividends.
The present capitalization of Ar
mour
chiefly capitalized surplus profits.!
Here again the federal trade commis
Co., however,
represents
Railroads Continue March to
Scrap Heap
The laying off of railroad workers!her
continués to be a large factor i.i
rrpa . , ,,,
wage st>ÜEtics for October, J92S. In'
spile a sim iucMate u , e nam
bei on taiiroad paj rolls over the p le -
Ivious month the report shows 59.112
fewei ; railroad empioves than in Oc
tober, 392 7. Since detober 1923 the
raiJroads haxe ieduced f^ces by 212,
C64
There were 1,724,430 workers on the
payrolls of class 1 railroads in Octo
who
eai,Vt ' $255,656,<0t during the month.
' ' » 1 *• increase in tiie wage total
1 * uC ^ ar - fi >' 1 e *■ that Oclo
1)61 one more "°iking day in 1928
^ an in ,m - a - e
her, 1928, and they earned altogether
$256,359,515.
in Octooer, 1927, there j
raäroad workers
142
were 1
- jn wage lates
it'd on'y about half
e hourly earnings
during the year
a cent to the avt
of-railroad w orkers.
Octohep, 1928, profits amounted to
^ 5 06,010,460 compared with $134.040,
- '3 the p"e
ear, a gain of 24%.
i>es to revenues fell
railroad
u. y larger share
v 6, the num
her of ma'-S ■ 0 0 r way employes
and engine
s- ' e men 6,0 <9 and miscellaneous
transportation < • ■ cent worker
7,189. In 2 years the number of shop
men has been cut by about 60.000
the number of train and
The ratio of ex
Horn 6;
owners a coi
of the railroad dollar.
to 64 9' 1
giv
n o*
' ' o
were fewer wag
Comp
ed with Oc ober, 1927, there
earners in every de
in the
number of
ailment of rai
WO K.
a of 12
nur
hs th
engine ser
vice men by over 20,000 and the num
THE WASHINGTON SCENE
'
By LAWRENCE TODD, Federated Press
.
he is named as attorney general by
Washington.-—Opposition to confir
mation of Wm. J. Donovan, in care
sion uncovered an extraordinary his
tory of profits made on a very small
actual investment by the owners. It
says:
Starting fifty years ago with a
capital of $160,000, the business has
earned $179,270,000 to 1919, of which
$29,866,000 has been paid out to part
ners and stockholders, the balance be
ing invested in the business and con
stituting the preponderating propor
tion of the $173,092,000 of stockhold
ers equity. The actual contributions
of the stockholders were limited to the
original investment of $160,000; the
Kansas City investment of $10,126,000
in 1900 which was largely property
built on some unknown original cash
investment; and $3,726,000 of cash re
ceived from preferred stock in 1918,
Thus the total stockholders' contribu
«
tions in cash or property did not ex
ceed $14,000,000 in 60 years, and prob
ably were less.
Since 1919 there have been various
changes in the capitalization including
the splittng of each share of $100
par common stock into 2 shares of
Class A and two shares of Class B
stock at $25 par. But with all the
changes the money inpestment behind
the common stock, exclusive of rein
vested profits, remains at just over
$10,000,000. The 1928 profit means a
return of at least 22% on this in
vestment.
»
Cudahy profits for 1928 amounted
to $6,112,038 out of which the stock
holders share after depreciation and
interest amounted to $2,567,328. Com
mon stockholders got a return of
$4.68 on each $50 share or 9.36% on
the present par value of the outstand
ing stock. But the federal trade com
mission found that the actual money
investment of the owners in pre
ferred and common stock with a par
value of $29,800,000 amounted to $7,
223,000. The balance was built up
from reinvested surplus profits. The
1928 return on the entire investment
■ of the owners in both the common and
preferred issues figures at about 35V2
per cent .
i
1 ers' products.
ihe gross sales of these throe com)
paries for 1928 totaled over two bil
iion dollars, the totals bein
Swift
These figures
remehdous power lhese-gi
wield over the sale of the farm
■ >
•> ?
i 89 <0.000 000, Armour $900 000,000 and
j Cudahy $251,000,000
! reflect the
an
of clerical workers by
ää
« ion hand m Ti.
ia October 192S ?
' '
over 16,
For wage earners
paid on an hourly basis October wages
averaged $142.70. The average pay
per slra-ght time hour was 60.4c com
pared with 60c in 1927 and 56.5c in
October, 1923.
In 5 years the aver
age hourly earnings of railroad work
ers have advanced a little
than
$271,005,542 in 1923 to $256,359,515 in
11928. Practically all of this reduotio
has been at the expense of the shop
men. In all other departments in
crease in wage rates have been at
more
*7%.
By cutting forces the railroads have
reduced their October payroll from
n
least sufficient to compensate for
iductions in force with the train and
engine service payroll running about
$2,000,000 ahead of October, 1923.
re
sistants accounted for a payroll total
Executives, officials and staff
as
of $7,389,317 in October, 1928, com
pared with $7,05U552 in 1923, an in
crease of 11%. Professional, clerical
and general wmrkers got $40 050,604
compared with $39,429,403, an increase
of 2 6%. Maintenance of way declin
ed 2.8% from $42,864,033 to $41 „725,
293: miscellaneous workers 2.8% from
$26.855 991 to $26,111.289 and yard
forces 5.8% from $4.703,169 in Octo
her, 1923 to $4,429,965 in 1928. The
train and engine service October pay
roll of $71.825.123 in 1928 compared
with $69,700 516 in 1923, a gain of 3%.
Rut the shopmen received only $64,
377.254 in October, 1928, a drop of
20% below their payroll of $80,400,878
in October, 1923.
the fact that Donovan assisted in pre
Hoover, is gaining ground in the
-enate. This opposition is based on
venting an inquiry into the Mellon
aluminum monopoly. Thus far there <
has been no definite demand bx or-1
ganited labor that Donovan be oppos
ed because of his record in prosecut
ing strike leaders in Buffalo.
. _ _ _ ,
of Montana, sought to have the senate
order the federal trade commission to
invetigate the monopoly. Donovan,
In the aluminum matter, Sen. Walsh 1
as assistant attorney general, came
before the senate judiciary committee
and urged that the facts did not war
rant governmental action. Secretary
Mellon himself was at the capitol re
peatedly to line up the administration
senators to kill the resolution. This
they finally accomplished.
! ! ! !
Ambassador Henry P. Fletcher, who
is reported slated for the post of con
fidential adviser to Hoover in the
new administration, has been listed as
the most ardent admirer and helper of
Mussolini in the entire state depart
ment staff. As American envoy to
Rome he has lost no opportunity to
show his approval of the black shirt
He has at all times shown
most orthodox class bitterness to
ward working class radicals in all sec
regime.
the
tions of the world.
Mil
The note from the soviet union gov
ernment criticizing the weakness of
the Kellogg pact, but announcing that
the oviets would adhere to the treaty
without reservations, featured the
senate debate on the pact Jan, 4. Sen.
Reed of Missouri, opposing ratifica
tion, quoted the Moscow opinion of the
multi-lateral agreement to show that
the British reservations were a seri
ous threat to world peace.
!
What the soviet foreign office said,
in its note, was that it could not agree
to the British reservation of right to
in non-British
regions which were not even specified,
This British claim was cited as an in
strument of imperialism.
Borah, replying, said there was no
way in which the nations could be
make "defensive" war
made to agree on what is self defense.
This treaty, he agreed, did not bring
world peace nearer. To bring it near
er a tribunal of some sort would have
to be made available to settle dis
putes. This treaty did not propose
any tribunal. ^
Washington.—"We have been seeing
the wrong people on cruiser policy,
we should have gone to see the steel
trust and the munition manufacturer."
This was the discouraged comment
of one of the hundreds of delegates
j iiom peace societies who spent Jan. 8
at the capitol asking senators to vote
againüt the 15-cruiser bill. Divide*
into parties of ten or a dozen for each
state, they pursued the elusive solon
from hotel to office and from office
to senate chamber, only to find them
hostile or silent.
David Reed o
Pennsylvania, spokesman for the
Pittsburgh aluminum and steel corpoi
alions, told them that he wanted con
gie.-.» to order the immediate construe
tion of 30 cruiseis instead of 15. He
said the United States must outbuild
This naval construction race with
the British.
England was emphasized as the grav
est danger to world peace now in
prospect, by speakers at the confer
ence dinner in the evening following
these interviews.
Dr. Niebuhr of
Union Theological Seminary and Prof
Parker-Thomas Moon of Columbia
University emphasized the fact that
the race is now begun and that unless
it is checked it must lead to war.
cil of Churches, publicly apologized
for the credulity with which he had
accepted atrocity stories during the
world war. He warned the delegates
that the cruiser program would be
useless to the war makers unless there
Bishop McConnell of the Methodist
church, president of the Federal Coun
went with it an effective scheme for!
starting hate propaganda immediately
he invoked
upon any declaration of war. Against
this decivilizing process
the common sense of history, which
teaches that all people really desire
peace and good relations, if the war
makers can be kept from deluding
them.
Only four out of the 96 senators at
♦
tended the conference and dinner,
Brookhart of Iowa presided at the a't-1
ernoon session, Frazier and Nye of
North Dakota and Wheeler of Mon
tana were the others who applauded
the speeches. There are no import
ant steel, munition or ship buildin
plants in Towa, North Dakota or Mon
tana and these special financial groups
have not controlled the elections in
those states.
Washington—Prospects for increas
ing influence for organized labor in
the United States in the year 1929
are not bright. Prospects for increas
ed pow-er for organized business, es
pecially the big business which dom
inates the basic industrie»
bright.
That is the view of the tr
distribution of power, which * **
lifeblood of politics and royerl* ^
taken by the bulk of the —
°9*sie m
_ ^
the capital to complete the final»!*
duck session of the Coolidge reri^T*
» » • ^
thek.
house membership,
Nor does this depletion of
fluence of trade unions stand
There is a distinct depression i
farm politics field, due to
that the American farmer i s ferr, ;
ing less and less important,
ing in general does not pay.
ers and their families are moving t,
town in steadily increasing numhe».
to find jobs in factories, stores^
ra ges—anything that supplies a W
and a regular wage. So the dream
a na tion-wide militant political
: er based on the organiied wage-wort!
erg and the organized farmer» w
been shattered. It's economic W
dations are being sapped and knoA,
^ to bits . Practical politician/^
; over the figures of labor union
be rship and listen to the tone» »1 k
! bor spo keraen today as contrasted
aioi*.
m the
dis«ov«ïy
» »•
b*
me*.
spo today as contrasted *
their tones in 1920, and wonder that
they were frightened in those eaiW
days ^ teT the war. They „amis,
the totals of farm organization
membership and smile.
Need for strong organization
among
wage workers and farmers, and ne«i
for their joint action in politics ».
gainst the forces of big business, it
greater now than in 1920. But that
need is based on the fact of today's
weakness—the fast that
organised
capital has made giant strides to
ward control of
every governmental
and industrial agency that affects
prices. Organized capital determines
what new industries shall be develop
ed, what terms of employment shall
rule, and what favors shall be shown
by the government, through the bank
ing system, to the manufacturing
against the farming industry.
as
* * *
Herbert Hoover represents, at the |
outset of his domination of the execu
tive branch of the governemnt, the
triumph of big business in politics. !
He is the manufacturer's ideal states- I
man—ore who for years will keep or
ganized labor and organized farmers
wondering whether he will not, after
all, do something to restore them to
an influential place in the nation.
Meanwhile the son it of self organi
1 zation and self defense among the
wealth producing classes
down,
will die
Benjamin C. Marsh, who for years
was director of the Farmers' Natios
al Council, says, in a discussion of
the farm problem at the close of the
"Farmers as a class are
old year:
not co-operators but extreme individ
ualists. . . . There are only about 1,*
800,000 farmers out of 6,371,000, in
all the farmers' selling organizations.
'. About one-fifth of the value of
all farm products was sold co-opera
tively last year, . . . Farmers have
lost most of their political prestige
and power,
, With the presen ten
dencies continued, less than one quart
I er of the votes will bo on farms in an
other decade."
These facts point to a growing
wage-working class prob'em, as the
proportion of Americans drawing wa
Trade union
with this
ges is steadily gaining,
j ism is not keeping up
growth. Labor politics i.- al a lower
1 ebb than it has been at any time in
three decades. Republican and demo
cratic political programs are wore
nearly identical than ever before.
The new year may witiv
—industrial and political- -hr the apa
| thetic harmony. But the politicians
! have no idea as to how it will come,
or where it may lead,
an d the farmers do become disrespect
I °nce more, the politicians will not
worr y
s a break
Until labo?
In this situation is the real expla
na ^ on °' r Congress' fai'u
thing in the past two yt
bituminous coal problem
junction evil; it explains, loo, wh)
Fall, Doheny, Sinclair and Daugherty
- to do any
rs with the
and the in
stay out of jail.
COMMISSIONERS ARE
SUED AS RESULi
FLATHEAD ACCIDENT
that
Kalispell, Jan. 12.—Alleging
they had negligently p ermittl
bridge over Ashley ck
southw
ed the
mile 5
.-even
out
■ome
of Kalispell, tar
the
death of George Paul, 1
Bostick has filed suit
again t County Com m
ng
of repair and thereby
cuu
,,t. 9, Grace
'„r $10,000
ers MoA
co ro plaint
vas se 140
ihe highway
8IJ no ex*
cither
the ap
r creek, P®'
foot of water
The
Calbi* k
points out that the b»'< •
jthe east of the center 0
and that the guard iai
tend to
Paul's
proach and un et in As,-; y
ring him under it in a
and crushing his chest.
f/ouden.
and
end
rpproaches
M
on
overturned on
car