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Montana farmer-stockman. [volume] (Great Falls, Mont.) 1947-1993, June 01, 1951, Image 9

Image and text provided by Montana Historical Society; Helena, MT

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075096/1951-06-01/ed-1/seq-9/

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Do Folks Come to Your Front Door?
O FTENTIMES it's the little things of life
that rub folks the wrong way. Take the
matter of calling on the neighbors for in
stance. Do you go to the front door, or the
side door, if there is one, or to the back door.
And when people call on you where do you
want them to come?
' We don't know just how the likes and
dislikes bn this subject would shape up per
centage-wise here in Montana, although we
know that the more informal back door still
holds considerable ^avor. But in Iowa, at
least, some facts are available.
The home management department of
Iowa State college recently made a survey
of a sizeable cross-section of farm women.
And here's what they found:
In 65 percent of the farm homes,
callers usually come to the back door.
In 25 percent, callers come to the
front door.
In 10 percent, they come to the . side
Although that's what callers do, most of
the farm women (in Iowa) don't like it. The
* door.
Livestock as Capital Assets
T HERE are still some "ifs" in the bureau
of internal revenue ruling with respect
to classification of income from the sale of
draft or dairy animals, and other breeding
stock, as capital assets. And there will
probably be further test cases in the courts,
and perhaps congressional legislation, be
fore this question is completely settled.
In its recent announcement the bureau
states that if the animal is used for draft
or dairy purposes—or in the case of breed
ing stock, if the practice of the taxpayer is
to hold such animals for substantially their
full period of usefulness—the animals will
be regarded as used in the business of the
taxpayer for the purposes of the tax relief
provided in Section 117J of the revenue act.
In other words, such animals are considéred
as capital assets (if they have been held for
six months or more)' and only 50 percent of
the profits derived from their sale need be
considered as taxable income.
The meaning of this ruling seems quite
clear in the case of draft horses or mules,
and dairy stock. But to benefit from capital
assets treatment owners of beef animals,
brood sows and ewes held for breeding pur
poses must, keep the animals for "substan
tially their full period of usefulness." Pend
Costs of Water Development
OUTLINING the water use program ad
vocated by the national water resources
policy commission of which he is a member,
Dr. R. R. Renne, president of Montana State
college, points out that the federal govern
ment stands to get back much more from
river basin development in the west than
such development costs.
Speaking before the joint session of the
Missouri and Columbia basin interagency
committees at Bozeman last week, Dr.
Renne said he "is convinced that the meas
urement of direct benefits and costs in dol
lars is a basically useful tool in evaluation
and selection of projects, but that it must
returned questionnaires showed that:
Sixty percent wanted callers to
the front door.
• Fifteen percent wanted visitors to
Twenty-five percent wanted them to
use the back door.
use the side door.
If visitors don't come to the door you
want them to there's a subtle and "psycho
logically correct" way to get them to do so.
Arrange the driveway so that it leads natur
ally to the door you want used. And you can
sometimes tactfully "hint" traffic away
from the door you don't want used with a
bit of well-placed lattice fence, or a short
All of which may strike you as "much
ado about nothing." But to a growing num
ber of farm and ranch women this question
of where folks come is getting to be more
and. more important. With its numerous
pieces of modern equipment the kitchen is
getting to be a pretty snug affair. And
what's the use of an attractive well fur
nished living room at the front of the house
if you can't show it off once in a while?
ing further clarification of this formula by
the tax commissioner it would appear that a
beef cattle producer could not take advan
tage of the half-rate tax on profit from the
sale of a bull or cow used for only a year
or two. Or from a sow that was kept for one
litter of* pigs, regardless of the fact that in
the Albright case the court ruled that sows
that had raised one litter should be classed
as capital assets and thus given the benefit
of the half tax rate.
So, until congress enacts legislation which
plearly outlines the rules to be followed
with respect to what livestock can be classed
as capital assets and what cannot, it seems
likely that there will continue to be a
considerable degree of confusion and in
equity in applying the capital assets provi
. / , j. . p p
sion to breeding stock.
It appears to Montana Farmer-Stockman
that whether an animal has been kept for
breeding purposes for one season or for sev
eral years it is "property used in the trade
or business" under the meaning of the in
come tax law and should be classed as "cap
ital assets." Since there is a difference of
official opinion on the subject congress
should settle the question promptly and
be supplemented by other measures if sound
decisions are to be reached in the public in
With reference to hydroelectric power re
sulting- from the development of federal
multi-purpose projects, Dr. Renne explained
that the commission recommends that prices
charged for such power should at least cover
costs, including amortization of the invest
ment with interest and payments in lieu of
state and local taxes. And that the irrigation
farmers who are the primary beneficiaries
of the reclamation development should "re
pay without interest an amount assessed ac
cording to their ability to pay, based upon
annual net income which the farmers derive
from the project under a formula adjusting
repayment to production and marketing
conditions, this amount to include the full
cost of operation and maintenance of *f acil-„
The commission feels that "an agreed
portion of the remaining investment cost
allocated to reclamation should be assumed
by local communities, conservation districts,
or interests receiving, secondary benefits
from the projects under arrangements with
the state or states in which the projects are
Justification for distinguishing between
costs assessable against power sold at a fixed
rate and those assessed against agriculture
lies in the fact that farm products are sold
at prices not fixed by the producer. The con
sensus of opinion was that interest should
be charged on the former, while the latter
should be interest free.
William E. Warne, assistant secretary of
the interior, also addressed the joint session
and conceded that the federal government
may be contributing much too little toward
basic development when the long-range re
turns are taken into consideration. He
agreed that many tangible and intangible
benefits accrue to community, state, region
and nation from federal multi-purpose proj- \
ects. Towns spring up, attracting new busi
ness and industrial enterprises from which
the federal government derives new and
continuing tax revenue.
The sound reasons for a more equitable
distribution of the costs of western project
development cannot be emphasized too often,
There has been too much inclination in the
past to place an unreasonably large propor
tion of such, costs upon the farmers and
other primary beneficiaries of water devel
opment with too little consideration to the
secondary but substantial benefits enjoyed
by the other interests including the federal
"This is a time for action. For some
Americans it is a time that calls for heroic
action. For others of us, it calls for home
ly, less dramatic digging away at the daily
chores. It takes corn as well as cannon. The
denim-clad patriot on the tractor, as well as
* he ^.fa-clothed s f^ er ln the . taI £' serves
his nation and his fellow man in the cause
of peace and freedom."—Charles F. Bran
nan, Secretary of Agriculture,
Meat animals on farms and ranches of
the U. 'S. have increased 9,415,000 since Jan
uary, 1950, according to USD A estimates.
There are 4,127,000 more cattle than a year
ago, 4,526,000 more hogs and 762,000 more
sheep and lambs.
Montana Farmer-Stockman
OFFICE: 184 4th St. N.. Great Fall*. Montana.
• - Editor and Manager
- » - - Assistant Editor
> - - - - Livestock Editor
. - . . . Bovine Reporter
Department Editor*: AMT MAR TIN, Rural Homes De
partment: DR. HOWA RD WEL CH. Veterinary Depart -
partment: RALPH D. MERCER. Soils and Crops: H. E.
CUSHMAN. Poultry: I. W. DICKERSON, Farm Mechanics:
DR. JOHN W. HOLLAND. Thoughts on Life; OH .BERT
GUSLER. Market Analyst; H L. DDSENBERRY. Irriga
tion: P. M. HARRINGTON. Garden and Orchards.
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Tot. n. No. tt
June 1951—9

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