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The People's voice. [volume] (Helena, Mont.) 1939-1969, February 06, 1942, Image 1

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Vol. Ill— No. 10
Price Five Cents
Subsidized Sugar Cos. Pay Big Dividends
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
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)
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
dieted are Ralph Townsend of Scrib
ner's Commentator fame; Frederick
Vincent Williams of San Francisco,
and David Warren Ryder, also of San
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
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
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
bucks," and from then on his nazi
literary outpourings found a promi
nent place on all nazi news and book
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
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
^ '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
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
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
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)
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)
Dr. Goldman in Report in
Medical Care" of Health
Plans Serving 170,000
People Finds Good Service
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
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
Republic Steel Increases Dividends On
Common Stock 400% After Paying Divi
dends On Preferred Stock and Setting
Aside Immense Sums for Taxes.
NEW YORK.— (FP) — Little Steel
will be asked to yield some of its
swollen war profits to 176,000 work
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
. 17,997,095
. 12,096,644
Republic ....
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
Inland .
Republic ....
. 8,163,050
. 11,341,265
. 6,281,280
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.
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
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)
♦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.)
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,
"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
of seasonal shutdowns, but are sev
eral hundred higher than in the cor
responding months of the preceding
Mr. Lamport said that the most
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
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)
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.
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%
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 ..
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
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
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
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)
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
There are
1 OK new freight rates that will add
(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
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

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