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g THE PEOPLE'S VOICE II (VI -,v l\l 7 * & «/ $ » s R \TOÜ_ Vol. Ill— No. 10 HELENA, MONTANA, FEBRUARY 6, 1942 Price Five Cents Subsidized Sugar Cos. Pay Big Dividends N. P. RY. FLOUTS ORDER OF RR. COMMISSION ST0PS| RED LODGE TRAIN SERVICE Violates Without Notice Order of Commis sion Issued Some Years Ago Making It Mandatory on Railroad Company to Main tain Train Service to Red Lodge If They Were to Also Maintain Bus Service. Openly flouting an agreement entered into with the railroad and public service commission about two years ago when it made application for license to operate freight and bus service between Billings and Red Lodge, that it would not discontinue train service which was made a part of the order of the com mission, the Northern Pacific Railroad company without notice to the commission its train service between Bil lings and Red Lodge on Sep tember 13 last year. On September 19, „the Montana rail road commission issued an order re quiring the railroad company to re store train service, and fixed Septem ber 26 as the day of a hearing in Helena for the railroad to show cause why the railroad company should not restore the train service, time, an order was issued by the com mission to the railroad company to restore train service, but in the same order fixed time for a hearing at Red Lodge, requiring the railroad to show cause why the train service should not be permanently restored, though the railroad company had filed no petition asking for the right to aban don train service. The propriety of the commission setting any hearing of the question of abandoning the train service without a petition having been filed and a public hearing then called, was chal lenged by Attorney General Bonner, under the law, attorney for the com mission. sisted that when the order for the re storation of train service had been issued by the commission, the next proper step for the commission to have taken if the order was not obeyed, was to have asked the county attorney of Carbon county or the At torney General to institute action in the district court, as provided in Sec tion 3806 of the Revised Codes of Montana, 1936. This section provides in part: At that The attorney general in "The district court shall have juris diction to enforce, by proper decree, injunction or order, the rates, clas sifications, rulings, orders and regu lations made or established by the (railroad and public service) commis sion. The proceeding therefor shall be by equitable action in the name Pagre Four) (Continued « »' TRESPASSING AT THE CAPITAL By A. I. HARRIS » Japanese Propaganda Follows Nazi Pattern A marked similarity in Japanese and nazi propaganda methods is seen in indictments returned in federal dis trict court here last week against six persons charged with failure to regis ter as agents of a foreign power— three Japanese nationals and three American "fronts." The similarity is noted by Albert Arent, assistant attorney general, who presented the above cases before the grand jury, as well as several nazi propaganda cases, including Trans ocean, before previous grand juries. Japanese nationals indicted are Teutomu Obana, who is being held as an alien enemy; K. Takahasi, and S. Takeuchi, both of whom are now in Japan. dieted are Ralph Townsend of Scrib ner's Commentator fame; Frederick Vincent Williams of San Francisco, and David Warren Ryder, also of San Francisco. The American "fronts" in Two methods were employed to put the propaganda across on the Amer ican people. One was through liter ature issued under the name of such organizations as the Japanese Cham ber of Commerce, the Japanese Com mittee on Trade and Information, and similar organizations. The other was through pamphlets Issued by Amer ican "experts" on Far Eastern affairs and allegedly printed and distributed by them, the intention being to de ceive the American people as to what interests were behind the pamphlets. But behind the scene, pulling all the strings, and furnishing all the cash, was the Japanese consulate. So far as government investigators can ascertain, Townsend severed his Japanese propaganda connections in 1940, when he found the nazi propa ganda field greener pastures to graze in. At that time, he wrote a pam phlet of a nazi propaganda nature en titled "Seeking Foreign Trouble," which the notorious west coast nazi, Ferdinand Hansen, thought enough of discontinued* CROP LOSS STILL HIGH FROM DROUTH Figures Released by AAA Committee Shows That Greatest Amount of Insured Losses in 1940 Chargeable To Drouth; Fire-Hail Next. Drouth was responsible for more than half the wheat crop losses on ■which indemnities were paid by the Federal Crop Insurance corporation in Montana during 1940 despite the fact that average precipitation in the state was only one one-hundredth of one percent below normal, Chairman R. J. McKenna of the Montana Trlple A committee reveals. "This emphasizes the fact that even during a relatively good year for wheat raising, drouth is an ever-pres ent hazard to wheat crops," he stated. "In 1940 precipitation was only slight ly less than normal but the average per acre wheat yield was 13.2 bushels per acre, which is 4.3 bushels more than the average 1931-40 yield and 3 bushels more than the long-time aver age yield, grower who lost his crop during 1940 probably lost a better than normal crop and had no wheat to sell at the average price of nearly 60 cents a bushel, whereas if he had been in sured he would have had at least 75 percent of his normal yield to market." Indemnities paid in the state dur ing 1940 totaled 1,248, according to McKenna. Fifty-five percent, or 683, of these were due to drouth and only 23 percent, 296 losses, were due to fire and hall, considered by many (Coutlnncd on Page Four) The uninsured wheat to purchase several hundred thousand copies. Hansen is a reputed million aire. bucks," and from then on his nazi literary outpourings found a promi nent place on all nazi news and book stands. He started out in the Japanese propaganda field, however, making radio talks for the Japanese Commit tee on Trade and Information and writing and editing pamphlets for the Japanese Chamber o f Commerce. Later, he wrote and distributed pam phlets under his own name, two of his pamphlets each getting a distri bution of more than 60,000 copies. Williams also aided the Japanese committee with their radio programs, but he was on the Jap pa-jfoll largely because he sold the Japs on the idea that he had a great "drag" with a large religious denomination, which, of course, he did not have. He reg istered as a foreign correspondent for Japan Times and Mail (now Japan Times and Advertiser), but this was merely a blind, since he couldn't have purchased peanuts for the news arti cles he wrote for the paper. His $360 weekly salary (no piker, Williams) was for lectures telling the American ' This put Townsend "in the People what fine people the Japanese !are; that China was merely a stooge ! for Soviet Russia ; that the Japs were ] in China to keep Communism out of I thta country, and that it was in the interests of American trade to "play ball" with the Nipponese. Ryder was the editor of a series of pamphlets entitled, "Far Eastern Affairs," which he sold and distri buted for the Japanese committee, but which did not bear the committee's name. Over a two-year period, more than 600,000 of these pamphlets were distributed. Surrendering to Intolerance The War t department announced last week that civilian policemen and one white MP did "unnecessary ( Con tinned on Paare Two) M ^5- A n I Bk m Q 7 fS A NEw'hÎgH By SCOTT NEARING ^ 'ofiteering on World War X pre ad the American people for a re it program during World War II. iue same grab-and-keep methods are practiced in the business world, and there seemed no good reason to ex ■> pect that they would be changed by the outbreak of war. Indeed, after the Great Depression of the thirties business was eagerly looking for any opportunity to turn an honest penny. The surprising thing is not the prof iteering but its extent and bare-faced character. The talk of "reasonable profits" was abandoned months ago. Today big business has both feet in the trough. The tales of gouging and grabbing on defense contracts, particularly those told by workers on the jobs, are almost past belief. But they are mere details of a story that is be ginning to get to the American public. The first chapter of this story dealt with jobbing in defense orders. The second chapter has Just appeared in Washington as the report of the house naval affairs committee, the profits made by some of the com panies providing naval equipment and doing repair work on navy property. The committee checked up on cer tain contracts that had been com pleted and on some others only part ly fulfilled. It reported; 1. The General Motors Corp., Cleve land Diesel Engine Division, has 16 contracts ranging from $1,000,000 to $18,000,000 each. Profits are running from 12% to 27%. 2. Bendix Aviation Corp., Eclipse Aviation Division, on a contract of $1,378,456, Is making a profit of 27%. 3. Maryland Drydock Co., on a $1, 493,286 contract, is making 45%. (Continued on Pagre Two) It details FILM PORTRAYS EMPLOYER'S LAD0R ATTACKS By JAMES PECK Employers have been killing and maiming workers since the beginning of time, but the story of their attacks on labor has been pretty well covered up in the daily press and almost whol ly suppressed by Hollywood. Now, for the first time, comes a full-length film that lays bare every ugly detail. Titled Native Land and produced by Frontier Films under the direction of Leo Hurwitz, the picture will be cheered by millions of work ers for honesty and realism never be fore equaled on the screen. Theme of Native Land is the strug gle for civil rights that marked the great organizing upsurge of the 30s. Employer vigllantism is depicted as subverting the principles of liberty upon which the U. S. was founded. In the opening scenes, a Michigan farmer is killed by thugs for being active in a union, an Ohio unionist is found murdered in his tenement room, a negro and a white southern sharecropper are slain by deputies. After each scene there is a flashback to the streets of the big cities, show ing people walking along calmly. "They have not read about these things, they take the Bill of Rights for granted," says Paul Robeson, the commentator. Then public resentment grows. As pictures of ever-larger union meetings flash across the scene, the commenta tor says: "The idea of unions took hold of (Continued on Page Three) LANDOWNERS GET BREAK IN COURT One of the major problems facing Montana landowners and taxpayers has been settled by the U. S. circuit court of appeals in San Francisco— in favor of the landowner and tax payer, Attorney General John W. Bonner has announced. The bright spot in the tax picture came when the appellate court over ruled a long-standing policy of the U. S. district courts and declared ir rigation district bonds are a direct charge against the land and not a general obligation of the district. The decision in the Montana case means that the state and all land owners who have paid their irrigation district payments cannot be held lia ble if the bonds default because some district members are delinquent in their payments, Bonner explained. The attorney general entered the case as amicus curiae—friend of the court—after the U. S. district court decided In favor of bondbholders who had brought an action against a Toole county irrigation district. "The state of Montana was vitally (Continued on Pmgm Four) INDUSTRIAL HEALTH PLANS EFFECTIVE Dr. Goldman in Report in Medical Care" of Health Plans Serving 170,000 People Finds Good Service Rendered. NEW YORK.— (PP)—Medical car© of the scope and quality enjoyed by families with incomes of $10,000 or more is being provided for thousands of wage earners in some industrial health plans, Dr. Franz Goldmann re ports in the winter issue of Medical Care. Goldmann, who is associate profes sor of public health at the Yale uni versity School of Medicine, investi gated four plans covering a total of 170,000 persons, ranged from about $1,150 to $2,000, although in the smallest group many earned $2,500. "Under these four plans of organ ized service, self-supporting people with incomes below the comfort level have received medical attention by both general practitioners and spe cialists to an extent commonly ex perienced only by people in high in come brackets," Goldmann found. "On the average, every person en titled to service under the four pro grams went to the clinic either for treatment by a physician or for some other form of service about four or five times a year. The findings of the Committee on Costs of Medical Care show a frequency exceeding four (Continued on Page Three) Average Incomes STEEL WORKERS DEMAND SNARE IN DIG PROFITS Republic Steel Increases Dividends On Common Stock 400% After Paying Divi dends On Preferred Stock and Setting Aside Immense Sums for Taxes. By ALEXANDER L. QROSBY NEW YORK.— (FP) — Little Steel will be asked to yield some of its swollen war profits to 176,000 work 1941 I This story can't be found in your daily papers. ers in negotiations now being pressed by the Steel Workers Organizing Committee (CIO). How large an Increase will be de Bethlehem . . 17,997,095 . 12,096,644 . Republic .... Youngstown 12,106,938 19,777,680 10,760,632 9,608,336 9,267,061 6,360,074 TOTALS .$65,339,136 $91,322,769 $48,773,866 In 1941, following the lead of Big Steel, all of these companies raised wages 10c an hour, meant an addition of $36,000,000 to the combined payroll. You might think that the starving stockholders had to pull in their belts and decommission their yachts. But look at the record of 1941 dividends on common stock (dividends for the last quarter, not yet announced, are conservatively estimated at the rate of previous quarters) : Roughly, that 1941 1940 1939 Bethlehem Inland . Republic .... Youngstown $17,909,988 . 8,163,050 . 11,341,265 . 6,281,280 $14,924,970 8,141,686 2,268,261 2,090,763 $4,476,076 6,473,632 0 0 TOTALS $43,696,574 $27,425,559 $10,948,708 Every company boosted common* stock dividends, with Tom Glrdler's Republic Steel leading the procession with a 400% Increase! only part of the story. These dlvi dends were paid after dividends on preferred stock, and after huge allow-1 ances for federal Income and excess profits taxes. But that's Bethlehem, for example, set aside $46,030,000 for taxes in the first nine months of 1941, as against only $23,-1 Another reason for the apparent, de dine in Bethlehem's vast profits is found in some fancy bookkeeping. The company allowed $25,733,743 for de predation and depletion in the first nine months of 1941, as compared with $17,699,921 for the same period That extra $8,033,822 for déprécia tion represents an increase of 45%. Republic used the same device, but hiked its depreciation by only 23%. Youngstown and Inland reported de preciation reserves of 6% and 3%. CIO Pres. Philip Murray, chief of the SWOC negotiators, will toss these figures and many others at the steel company executives. They will point to the alarming increase in living costs, with still higher prices and The union spokesmen will also re-1 call that a dollar spent for wages costs the companies less than 60c, because of tax savings. (Continued on Page Two) 429,170 for the entire year 1940. in 1940. heavier taxes ahead. DECISION ON RATES FAVORS MONT. GROWERS A decision of far reaching benefit to Montana grain producers and mill ers Is contained in an eight to one opinion delivered by Justice Frank furter of the United States supreme court on January 5, 1942. This de cision upheld orders of the Interstate Commerce Commission which pro hibited Kansas City, Missouri and seven other primary grain markets having dual rates on grain and grain products. This subject of many years stand ing Is an attempt of Missouri river millers and grain dealers, Including those at Minneapolis, Minn., to obtain transit privileges on grain and grain products when moving between prim ary markets on proportional rates. The complaints of the Kansas City and Omaha markets were directed against the rule for the application of rate-break combinations on shipments of grain and grain products through the rate-break markets as prescribed by the Interstate Commerce Commis sion. The millers at Minneapolis and dealers in wheat at Missouri river markets have been very persistent in attempts to obtain a privilege that would permit Minneapolis millers to obtain through transit manipulation to mill at Minneapolis wheat produced In Nebraska, Kansas and other states in the southwest at rates applying from Missouri river markets such as Omaha or Kansas City to Chicago In lieu of rates into Minneapolis and pro portional rates from there to Chicago Pajçe Three) (Continued ♦manded has not yet been disclosed. The policy committee has announced only that it will be "substantial" be cause of 1941 reports showing that profits have Increased "immensely." Four companies—Bethlehem, Inland, Republic and Youngstown Sheet & Tube—are Involved in negotiations for the first contract in the history of this ruggedly anti-union section of the steel industry. A few years ago most of these com panies were reporting deficits. How the picture has changed is shown by this table of net profits: (9 mos.) $23,998,064 1940 1939 $48,677,624 $24,638,384 j | STENOGRAPHERS NEEDED IN WASHINGTON During 1941 the offices of the Mon tana division of the United States Em ployment Service found Jobs for 27, 210 Montana workers, according to figures given out by O. C. Lamport, director. "This is an Increase of 6,760 place ments over 1940," Mr. Lamport said, "and to a large extent reflects in creased demand of defense Industry outside the state. As occurs every year, placements during November, December and January are only about half the monthly average, on account urgent labor demand at the moment is for junior stenographers, male or female, to fill positions in Washing ton, D. C. at $1440 per annum. The age limits are 18 to 63 with no pre vious work experience required. Re cruitment of these workers is being handled by the local offices of the Employment Service, where applicants can make arrangements for tests, he said. of seasonal shutdowns, but are sev eral hundred higher than in the cor responding months of the preceding year.". Mr. Lamport said that the most SUGAR COMPANY'S YEARLY PROFITS MORE THAN ITS ORIGINAL INVESTMENT Great Western Sugar Co. Controlling One Third of Nation's Beet Sugar Output Has Averaged 43% Annual Return On Common Stock; Average Beet Field Worker Under Dept. of.Agriculture Rate Makes $216 Year. DENVER.— (FP)—Workers faced with both a shortage of sugar and a stiff price for what they can buy do not realize that every person in the U. S. kicks in with exactly one nickel a week to keep the sugar industry on relief. For a family of four, that adds up to $10.60 a year. The total is $360,000,- 000 a year, representing the difference between the world -»market NEW LOAN PROGRAM IS ANNOUNCED FSA Makes Plans for Rapid Extension of Loans for the Production of Subsistence Foods and Commodities for Expanded Market. Production of vital war foods in which Increases are needed got a boost this month as the Farm Se curity Administration began taking applications for new Food-for-Victory loans, Chairman R. J. McKenna of the Montana USDA War board announces. "In line with the vast new respon sibilities which the Pearl Harbor in cident brought to the nation's food producers, the FSA made plans for a rapid extension of its program to new groups of persons," McKenna said. "Red tape has been cut to the bone, simplified forms worked out and a great deal of effort made to develop a method of making Food-for-Vlctory loans quickly available. Present PSA borrowers who have already made their 1942 operating plans will be asked to expand them and a simple process has been worked out to make this possible." Under the plans, the new loans are available to farm laborers, tenants, low-income owner-operators and part time farmers who cannot finance food production through any other source. Loans are made for the purchase of teed, seed, fertilizer, tools, materials needed for new facilities, poultry and livestock, canning equipment, mate rials and equipment needed for food storage, rental of workstock and pow er equipment and participation in co operative organizations — especially Page Four) (Continued RAILROADS SHOW 157% INCREASE IN PROFITS OVER 1940 EARNINGS By ALEXANDER L. CROSBY NEW YORK. — (FP) — Remember how the railroads and the newspapers cried out in horror against the work ers' demand for a 30% raise last sum mer? And how the railroad unions had to be content with a 10% In crease, not enough to keep up with the cost of living—let alone raise their standards? Any impartial observer would have figured that the workers were trying to force the roads Into bankruptcy and that even the 10% raise would put the stockholders on the breadline. 1940 $11,269,086 6,649,497 125,533 32,452,210 36% 39,944 4,369% 494,833 777% 205,277 1,690% d. 39,130 d. 301,026 11,265,085 134% 3,612,167 268% 31,383,976 —12% 2,064,092 276% 1,261,917 166% 6,077,281 21% 1,663,328 120% 2,100,734 21% 1941 Gain 164% 276% 422% * $28,679,768 21,091,883 663,725 44,419,162 1,739,681 4,336,480 3,671,698 2,013,908 3,256,470 26,375,366 12,688,528 27,194,003 7,767,019 3,235,667 6,147,703 3,646,001 2,554,354 Atchison Topeka & Santa Fe - Baltimore & Ohio . Bangor & Aroostook .. Chesapeake & Ohio . Chicago Great Western . Delaware & Hudson . . . Delaware Lackawanna & Western.... Gulf Mobile & Ohio . Lehigh Valley . New York Central .. New York Chicago & St. Louis _ Norfolk & Western __.... Northern Pacific . Pere Marquette .. Pittsburgh & Lake Erie . Texas & Pacific . Western Maryland .. $199,261,296 $108,364,950 railroads piled up about $297,000,000 more than in 1940, when the combined net Income was $188,000,000. 1 _ wage increase is expected to cost any where from $256,000,000 to $332,000, 000, with the lower figure more likely to be correct. So, having earned enough to pay the new wage scales, the roads are asking—and getting—freight and pas senger increases that will spare them the painful task of paying higher wages out of higher profits. Already the Interstate Commerce Commission has approved a $45,000,000 boost in passenger fares, and It is expected to The price and the actual price to consumers in the U. S. When you buy beet sugar, 72% of your money represents a subsidy to the big producers. Biggest of all is Great Western Sugar Co., which ac counts for one-third of the nation's beet sugar output. Thanks to the powerful sugar lobby maintained at Washington for dec ades, Great Western does pretty well. Since it was organized in 1905 the I I This story can't be found in your daily papers. company has averaged better than a 43% annual return on its common stock. Its total net earnings for 34 years were $188,188,866, while paid in capital amounted to only $25,671,620. Dr. J. Edwin Sharp points out In his pamphlet, Sugar Dollar, that Great Western's annual cut in the sugar jackpot is around $25,700,000, an amount slightly higher than the orig inal investment in the company. The subsidy also tops the whole WPA ex penditure for the state of Colorado In 1938-1939 (a high year), which was $20,889,202. The employes of Great Western and other producers barely manage to live. For five or six months' work in the beet fields, the average worker col lects $69.90. The average annual in come — including a 40% share from public relief agencies—for an entire family is $436, the Colorado Experi ment Station found. Sharp's new pamphlet is attracting attention in labor circles because the organized beet workers are now ask ing for a wage increase. Representa tives of the United Cannery Agricul tural Packing & Allied Workers (CIO) testified at a Department of Agricul ture hearing called under the terms Pagre Three) (Continued Taking a single week's reports for ; 17 of the larger lines, here is the | comparison between 1941 and 1940: Now that the annual reports are com ing in, it seems that things weren't as bad as they seemed. Railroad after railroad is reporting net income topping the 1940 figures— not by any mere 30% but by 100%, 200% and even 4,000%. some exceptions, of course, but the general prosperity is revealed by the prediction of the Assn, of American Railroads that net income of all Class I roads will be 167% over the 1940 total. There are 1 OK new freight rates that will add another $230,000,000 (assuming a boost. Instead of the 10% asked by the railroads). Which means a total revenue in crease of $275,000,000, provided by American consumers so that stock holders will suffer no inconvenience whatsoever. On the contrary, the prospects for stockholders are brighter than ever. Railroad revenue is expected to climb still further in 1942, which is one rea son why rail stocks have been stronger than any other group In the market.