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Publish 'd By the Silver Bow Trades and Labor Council—Weekly —In the Interests of Organized Labor Hi ls toH icai Montana Labor News vvy vvy The American standard of living must be maintained in order that American in stitutions may not be sub ject to perils of discontent. There can be no prosperity without justly high wages. Earnings of working people are the basis and index of progress in any community. i OFFICIAL ORGAN OF THE MONTANA STATE FEDERATION OF LABOR vvy vvy BUTTE, MONTANA, THURSDAY, SEPTEMBER 8, 1932. Vol. VIII. No. 26 CONTRACTORS NOW OCCUPY FEDERAL OFFICES 3-CENT ELECTRIC TAX INSIST TAX SHOULD BE PAID BY rnwciiMCDC r n d dew * one tONoUMERS; G. 0 . P. REWARDS THE SOVEREIGN POWER TRUST The United States senate passed a tax bill some time ago, and as it passed the senate an amendment was introduced by Senator Howell, Nebraska, levying a very light tax upon the public utility corporations which are generating electricity. It was the belief, no doubt, of the in troducer, it was the theory of the senate when it adopted the amend ment, that the amount was so small that as a practical proposition it would be impossible for the power company to pass on the cost to the consumer. The bill went to conference com mittee, and when it came hack from the committee that provision was stricken out, and in lieu of it was language providing for a direct tax upon the consumer of electricity. On the face of the conference committee change it was a tax upon every home in the United States which used electricity: it was a tax upon the owner of every retail store which uses electricity, a direct tax. Not Defended. There was quite a contest over it. It never has been defended any where. Although it was assailed on the floor of the senate viciously, it never was defended by Senator Smoot and the other conferees. In the course of the debate, when Senator Norris, Nebraska, had the floor of the senate, he was inter rupted by Senator Robinson, In diana, who said: "I want to observe, if the senator from Nebraska will permit me, in connection with his suggestion as to the efficiency of the conferees on the part of the senate, that I noted this morning in the press a state ment from Congressman Crisp, to whom was attributed the responsi bility for placing the burden of the power tax on the consumers, would like to read it for the ben efit of the senate, assuming, of course, that he is correctly reported." Then he read; "When the conferees reached the tax on the electricity item Senator Smoot stated that it was confiscatory and that it would bankrupt certain public utility companies in Utah. A majority of the senate conferees said the item was impossible. After discussion and in the nature of a compromise, I suggested a retail tax on electric energy." I That is the end of the newspaper vhieh the senator from Then he said; quotation Indiana read. "The interesting part of that state ment, if the senator from Nebraska will permit the further observation, is this line, and it comes from Mr. Crisp, according to the paper: "A majority of the senate con ferees"— That would be three— "A majority of the senate con ferees said the item was impos sible." "That was after a majority in TIMELY AND UNTIMELY OBSERVATIONS (By ADAM COALDIGGER.) SERIOUS WORDS ON LABOR. "I am," writes an enquiring soul from Buffalo, N. Y., "not a laboring man. My sympathies, however, have always been with labor. At the same time, the American labor move ment seems to be so reactionary, judging from the utterances of some of its spokesmen, and so full of racketeering, if judged from news paper items and other revelations, that I hardly know any more whether I am for or against unions. Under the circumstances, would it not be advisable for radicals and progres sives to aid in building new unions, or at least do whatever may be done of purging existing unions of their reactionism and racketeering procliv ities. And please, while I greatly enjoy your humor, I hope you will give me a serious explanation." » this body had said that it was not only not impossible but that it was correctly and properly to be levied against the vendor. But a majority of the senate conferees, three out of five, decided that a majority of the senate was all wrong in the matter, and therefore they would just switch it around completely and add the burden of this tax to the already overburdened back of the taxpaying consumers of the country." Senator Norris of Nebraska on the floor of the United States senate said: "Now let us review what hap pened with these companies which cannot afford to pay a tax to the Federal government. "At the end of financing the Utah Securities Corporation control of the properties! a)id securities originally controlled by the syndicate had been transferred to Utah Securities Cor poration, the first transfer of these properties and securities to Utah Power & Light Co. occurred. The properties of the Telluride Power Co., acquired by Utah Securities Corporation at receivership sale at a cost of $6,480,708.32, were transferred to the Utah Power & Light Co., which wrote then on its fixed prop erty amount at $22,100,000. V'That ii pumped into this concern over night. "They bought the property for $6,480,708.32, and the next day it was worth $22,100,000; and that is one of the power companies that cannot afford to pay the tax the senate proposed to levy upon it. "This represented a write-up cans water of $15,619, a nice bit of w,ui which 291.68. "More than fifteen and one-half million dollars of water pumped into that capitalization overnight; and the poor people of Utah, Colorado, and other states that are paying the bill have to stand it all. "The corporations are convert ing water into gold by this pro cess; and yet we are told that we must not tax them, because they cannot stand it; and therefore we must levy the tax upon the poor vho is now paying the consumer revenue on all this water." in the other case mentioned in the Utah Labor News last week there was 27 million dollars of water, now nearly 16 million dollars is added to it in Utah. Senator Norris said; "Subsequent acquisitions, including both proper ties acquired by purchase and prop erties constructed by Phoenix Utility Cc. or its predecessor, the Phoenix Construction Co., which was the in corporated construction department of the Electric Bond & Share Co., were similarly written up on the fixed capital account of the Utah Power & Light Co. at prices $9,610-, (Continued on Page Four) All right, here So serious, is it? it goes, seriously: Labor is commodity, bought and sold on the market at prevailing market prices. Its price depends on supply and demand. If demand goes up, the price of labor goes up. If supply of labor goes down the price of labor goes down. When supply goes down and demand goes up at the same time, as happens during war time when millions of workers arc drawn out of industry and the fruits of labor are destroyed by the billions, labor is high cockalorum. Just now, labor is in the dumps, a drug on the market. In the long run, and regardless of fluctuations of the labor mar ket. labor receives enough to pro duce its labor power; that is suf (Continued on Page Four) It is MERCHANT'S DO MUCH TO MAKE DAY A SUCCESS Generous Donations Are Offered as Prizes for Sporting Events. The Butte merchants again con tributed generously toward making Labor's celebration at Columbia Gardens a huge success. They fur nished refreshments for the hard working committee who labored for weeks to arrange the splendid La bor Day program. The committee as well as Labor as a whole wish to thank the following places of business for thinking of them in donating these refreshments; Han sen Packing Company, Price Coffee Co., Standard Brands, Home Bak ery, Eddy's Bakery and the Federal Bakery. No Labor Day picnic would be a success without sports events, and no sports events would be complete without appropriate prizes, the committee been forced to raise cash prizes we fear there would have been no sports events. The merchants of Butte again came to the rescue and donated prizes for these events. After looking at the prizes the editor's only regret is that he does not have the shoulders of Tunney, the speed of Tollan and the stamina of Nurmi. Had We thank the following merchants for their generosity in donating these J. C. Penney Co., Stratford prizes; Clothing Co., S. & S. Jewelry, Green's Cafe, Woolworth Co., F. W. Grand Silver Store, Colbert Drug Co., Gor don Jewelry, Klem's Shoe Store, La Mode Hat Shop, Montana Hardware, Gamer's Shoe Store, 4 North Main, Clinton Drug, Shirley's Clothing, Montgomery Ward Co., Wein's Clo thing, Chappelle Cleaners, Keene Shoe Store, Pipestone Springs, Louis S. Cohn Co., Hoskins Drug, Shiner Furniture Co., Henry Hirsh, Flor shein Shoe Co. P. J. Brophy Co., Parkway Gas Station, Bouchers Inc., M. L. Y. Gro cery, Rialto Theater, Chequamegon Cafe, Price Coffee, Standard Brands Inc., Mutual Creamery, Fuller Paint, National Trunk, Craven Garage, Sy mons Store, Larry Weir, Al's Photo Shop, P. J. Boyle, Albert Zucally at Standard Oil and Gas Station, Park and Excelsior Gas Station, Metro politan Market, Hansen Packing Co., Walker's Cafe, Safeway Stores, Pax & Rockefeller, Palace Clothing. son U. C. L. Feeds 140 Jobless Families PHILADELPHIA — (F.P.) —The Unemployed Citizens' League of Phil adelphia is aiding 140 families daily with food and supplies. It has served notice on constables that evictions of unemployed fam ilies will not be permitted, and of ficers entering workers' homes with out search warrants will be treated as trespassers. Produce and supplies are donated by league sympathizers, and nego tiations are under way with the American Red Cross to obtain flour to be baked into bread by Bakers' Union, Local 201. The only ex pense encountered so far is gas and oil for the trucks which pick up donated supplies. League officials proudly point to the efficiency of the league's 4,000 investigations of applicants without cost ' id without specially trained workers. NON-UNION SHOPS HOLD UP EMPLOYES' WAGES PATERSON, N. J.—(F.P.)—A group of non-union shops in northern New Jersey have not paid wages to their employes for several weeks, charges Pres. Emil Rieve of the American Federation of Full Fash ioned Hosiery Workers, who is mak ing an investigation of the situation on behalf of union members work ing in these shops. The Arrow Silk Hosiery Co. of Irvington, N, J., has failed to pay for seven or eight weeks, he says. The union will in stitute legal measures in an effort to collect. -<$> m JAMES HUDSON MAURER. LABOR SPEAKER IS WRITER ON LABOR TOPICS IS PRESIDENT OF BROOKWOOD COLLEGE AND HAS BEEN A MEMBER OF ORGANIZED LA BOR FOR OVER 52 YEARS. James Hudson Maurer, the So cialist vice-presidential nominee, who is affectionately known to a wide circle of comrades and friends as Jim Maurer, was born in Reading, Pa., 68 years ago. His forebears were sturdy German folk who came to Pennsylvania in early colonial times. He was the eldest of a large family of children, and as his father died before Jim's seventh birthday, he was forced to go to work in order to assist his mother in keeping the family together. At the age of six he was a newsboy, at eight he lived on a farm, at ten he became a fac tory worker and at fifteen a ma chinist's apprentice. Altogether he was permitted to attend school less than three months. He early saw the necessity of the workers organizing for their own protection and advancement, and at the age of sixteen joined the Knights of Labor and for more than fifty years has held continuous member ship in the ranks of organized labor. Despite his very limited schooling and extreme poverty he learned a trade and managed to educate him self particularly along economic lines so that for a generation he has been recognized as one of the ablest leaders of the American movement. For over thirty years he has been a member of Local No. 42, United Plumbers and Steamfitters, etc., of the United States and Canada. In 1912 he was elected president of the Pennsylvania Federation of Labor, a position to which he was re-elected every year following, until 1928, when he retired after his election to the city council of Reading, Pa. About 36 years ago Jim found out that the republican and democratic parties both served the interest of the owning class and did nothing for the workers except when compelled to do so. He joined the Social Dem ocratic party and went from it into the Socialist party when the latter was organized in 1901. He has been a candidate of his party almost every year. In 1906 and 1930 he was its nominee for governor, and in 1928 and again this year for vice presi dent. He was elected a member of the Pennsylvania house of represen tatives in 1910 and again in 1914 and 1916. terms he was the leader of the la bor forces and was largely respon sible for the passage of the Penn sylvania Workmen's Compensation Law, being the first in his state to introduce a bill to establish such a Throughout his three system. In 1917 Governor Brumbaugh ap pointed an official state commission to study the matter of old age as sistance and made Mr. Maurer its chairman. Although this position was purely honorary and carried no salary, some of its expenses were paid by the state, and Jim jumped at the opportunity to expose the evils of the poor houses and to show the people that there was a much better way of caring for indigent old workers. He filled the position so capably that he was reappointed by Governor Sproul in 1920, again by Governor Pinehot in 1923 and 1926, (Continued on Page Four) RENT-DODGERS REPLACE RENT PAYING FEDERAL EMPLOYEES The Chamber of Commerce made plea after plea to the Federal government to have the Department of Justice Headquarters maintained in Butte, but to no avail. It was stated that there was no room for an office here while the Federal Building was being remodeled. A number of families, connected with this department were transferred to points in Washington. Butte decreased in population, landlords are losing the rents paid by these employees, merchants are losing business transacted by these families and the city, county and state loses taxes paid by these residents. All of this was a loss to Butte. Communist Candidate For Vice-President Will Speak in Butte Sept. 9 James W. Ford, {vice-presidential candidate, will speak in Butte, Sept. 29, at Main and Mercury streets. The meeting will start at 7:80 p. m. The Negro candidate will speak on the bankruptcy of the capitalist system. Ford is an outstanding fighter of the working class. During the recent bonus march in Washington, Ford, who is a member of the Ex-Service men's League, was in the forefront of the struggle. He was jailed by the Hoover government because of the militant fight he carried on for the vets. Ford is a fighter on all fronts. At the twelfth annual Teachers' and Stu dents' Education Conference, held in New York City, Ford atacked the ed ucational system in the following words: "Let us examine the state of educa tion at the present time. The de cline, the moral and spiritual decay which characterizes capitalism as a whole, is also reflected in the sphere of education. In fact, education re produces in miniature all the general features of the crisis and in turn sup plies a penetrating measure of the decay of a system which blocks and retards all the forces of progress at a time when it is materially best able to advance them. Overproduction, unemployment, wage cuts, lower liv ing standards, and the reduction of educational expenditures have char acterized the educational situation during the last three years, resulting in a worsening of the conditions of instruction and impairing the quality of the teaching." Candidate for Congress to Speak. On the platform with Ford, the Communist candidate for congress, Roger S. Murray, will also appear. Murray will speak on state and local He will speak on the role issues. of the Democrat, the Republican and the Independent parties in this dis trict. THE WASHINGTON SCENE By LAWRENCE TODD coming of the Communist hunger marchers to Washington last De WASHINGTON—(F.P.)—After year of best-selling throughout the nation, the three newspaper cor respondents who last summer launched the "Washington Merry Go-Round" have published a second and bigger volume—"More Merry Go-Round." It opens with a chapter on "Dance of the Depression," which describes the contrast between the a cember, and the elaborate Hoover dinners and parties of that same month. It lists some of the social extravagances of the year, produces a come-on letter to a rich debutante by young Baron Wrangel, broker in titled alliances, and moves logically along to a candid recital of the facts of the stamping out of the Bonus Expeditionary Forces by Hoover, Secretary Hurley, General MacAr thur and the army bayonets, gas bombs, sabres, machine guns and tanks. Much of the grim story of Bloody Thursday is presented in this book—to the discomfiture of Candi date Herbert Hoover and his friends who have outrageously lied about what occurred. In the chapter, "Nine Old Men," is told a great deal about the Su preme Court, which Andrew Furuseth of the Seamen's Union long ago dc scribed as "God, in this country." The authors say; "The economic, so cial and political dictum of the land is what they say it is, or rather, Though there was no room for office of these employees there seems to be plenty of room for apartments for the contractors engaged in re modeling and enlarging the Federal Building. These Contractors pay no rent nor do they pay taxes. Their salaries are stuck in their pockets to be spent elsewhere. We in Butte pay the bill. But has the Chamber of Commerce protested this matter to the authorities in Washington? If they have no word has been given out to that effect and the Chamber is always sure to publicize its acts to the utmost. From this we infer that no protest has been made. The only organization to make a protest has been the Veterans of For eign Wars. What is wrong with the Legion? Two veterans were killed, a baby was gassed to death and an other veteran lost an ear for doing the very thing that these contractors are doing, when the veterans oc cupied vacant buildings in Washing ton. Men who risked their lives for $30.00 per month in order to save invested capital cannot occupy vacant Federal Buildings, now that they are unemployed and facing starvation, un less they are gassed and sabred by the army, while contractors, drawing nice, fat salaries can do it in Butte with perfest impunity. We would like to see every veteran, unemployed in Butte, move into the Federal Build ing and establish his family there. It would be interesting to see what the results would be. We would have word from Washington in no time at all and our bet is that they would be evicted. These contractors are not only us ing the space in the building but re ports have come in from good auth ority that they are using the rugs from the various offices and have made changes for their comfort and convenience. If the Chamber of Commerce is more than an eaClo for the A. C. M. Co., and is really interested in the welfare of Butte, let it take this matter up with Washington and get action. Make these contractors pay rent and taxes. what five of them, a bare majority of one, may dictate. Decades of la borious effort and millions of dol lars may be expended to enact a statute sweeping aside a barbarism, but if the innovation runs counter to the hardened prejudices and ob solete theories of a mapority of these nine then the taboo of "con stitutionalism" is invoked and the statute is outlawed. . . . Only a re vision of the Constitution, a super human task, can overcome the dead hand of their disapproval." The in come tax case of a generation ago, the minimum wage case in the Dis trict of Columbia, in 1912, and the recent Oklahoma ice case, in which the Court forbade a state to regulate that utility, are cited as proof of the effectiveness of this dead hand against human progress and security. These anonymous writers proceed to disrobe Justices MeReynolds, Butler and others of the feudal-minded group, and to show the contrast be tween them and Brandeis, Cardozo and Stone. Chapter Nine deals with "Muscle Men," who are the defenders of the established economic order who sit in the senate and serve the actual empire—the capitalist oligarchy. "These men may oppose one an other on the World Court or pro hibition," it relates. "They may tussle and joust as to whether a Republican or a Democrat shall sit (Continued on Page Four)