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Ni -l'Ö 1 -'., .1 S ■ hnii ! fi. n f ! HRfm II 1 ■ [iMil '' Jn-i&SA 1 *■ r • , I : r r r I 'rvr/i-î MONTANÄS ONLY STATEWIDE INDEPENDENT NEWSPAPER HELENA, MONTANA, DECEMBER 20, 1957 Vol, XIX—No. 3 $3.00 Per Year Hearing In Missoula Reveals . . at Timber Access Roar Could Bring 6,000 New J its To State Shoulder to shoulder Montana labor, business, and government, state and national, appeared before the Senator from Tennessee, Albert Gore, Saturday, December 14, in the Music Hall on the State University campus at Missoula and testified in favor of S. 1136, the timber access road bill and S. J. 88 pertaining to the Lewis and Clark Highway on which Gore was holding hearings. Montana's Western District Congressman, Lee Metcalf, appeared with Senator Gore at the counsel table, S. 1136 will enable the Forest Serv ice, a bureau of the Department of Agriculture, to construct and main tain access roads in the national for est, to permit "maximum economy in harvesting national forest timber". S. J. 88 authorizes completion of the Lewis and Clark National Tour way in Idaho, Montana, North Da kota, South Dakota and Washington. Among labor representatives testi fying were Robert C. Weller, execu tive secretary of the Montana Dis trict Council, Lumber and Sawmill workers and Joe Crosswhite, business representative, Local 371, of the Op erating Engineers. Statements were filed from other labor representa tives, as time limitations imposed by Senator Gore did not permit direct testimony. S. 1136 BEST SERVES INDUSTRY AND EMPLOYEES Weller said, building forest roads with federal funds better serves con servation and utilization of forest re sources and the best interests of the lumber industry and its employes. He said, "The present and past prac tice of roads being built by the tim ber purchaser and only into the tim ber to be utilized has led in many cases to no access road at all—leav ing the remainder of the forest with no access road for logging activity, fire control, pest and disease control or general utilization by the public that owns the land and pays for the road through a slash in the price the AFL-CiO Hears About Butte Teachers' Fight One of the important policy decisions of last week's AFL CIO convention in Atlantic City, which, according to Mon tana State AFL-CIO President James S. Umber has received scant public notice, was the branding of the National Education Association as a "company union by the delegates representing more than 13% million organized workers. The decision to consider the NEA and its state affiliates as "company unions" came by convention amend ment to a committee resolution urg ing greater assistance to the Ameri can Federation of Teachers in or ganizing the nation's teachers. As one of the proponents of the amendment, Umber reviewed the long fight the Butte Teachers Un ion has carried on to improve con ditions of the profession in the USDA Urges Chicken Packers To Ask For Inspection WASHINGTON, D. C.— (CNS) — Agriculture Department officials are urging poultry plant owners to apply for inspection service, although USDA doesn't intend to begin inspections before May 1. The new poultry inspection law calls for voluntary inspection begin ning January 1 and makes it manda tory by 1959, USDA says it needs four months to get equipped to do the inspecting and to train qualified personnel. Of ficials believe plant owners who com ply voluntarily will find mandatory inspection easy. public's timber brings." He added, "It has led also to a lack of compe tition in bidding on public timber, and consequent lower prices for pub lic timber, because many logging and lumbering concerns, though qualified and property equipped for logging, are not equipped or financed for the building of heavy duty access roads. Crosswhite believes the purpose of forest road building could better be served through use of qualified and properly equipped and trained road builders. He said loggers only build roads as fast as they need them, necessitating a waste of time and money maintaining survey crews in an area, waiting for road building to progress. 25 MILLION ACRES NEED PROTECTION AND CARE Regional Forester Charles L. Tebbe, Missoula, said there was an "urgent" need for roads for development and protection of the 25 million acres of national forest in the 16 national for ests in Region 1, located in Montana, North Idaho and northeastern Wash ington. Without access to the forest, said Tebbe, "the resources of the land cannot be made available to the people, nor can the land managers do an adequate job of protection and care." He said current losses from tree-killing insects and disease are "truly distressing", and result in the loss of "valuable old-growth timber." (Continued On Page Four) >» Mining City, and how NEA and the Montana Education Associa tion went to court to nullify a col lective bargaining agreement be tween the Butte School Board and the Teachers Union. "If you have any doubt in your mind that the National Education Association or the Montana Educa tion Association in our state is any friend of the Teachers Union," Um ber told the convention, "let me tell you that right now in Montana we are fighting in Butte against a cam paign of the free riders in an attempt to establish a local right-to-work law, if you please. It is an attempt by the company union to break a contract between the Teachers Union and the local school board, an attempt to de stroy union security. "This is the same company union, he continued, "that fought us in the 1955 State Legislature when we sought and won social security cov erage for teachers and all employes of state government in its various subdivisions. This same outfit at tempted to discourage teachers against joining a Teachers Union by saying that it is disgraceful to belong to a trade union and only detracts from the dignity of the teacher. I beg for the support of the labor movement for the bonafide Teachers Union . . , and a strong fight against the labor-baiting tactics of the teach ers' company union, the NEA, the state associations and local associa tions which are administrator-domi nated and in no sense are friends of the classroom teacher or the trade union movement . . (Continued On Page Four) ' • U >» MSU Christmas Radio Broadcast Tuesday MISSOULA—The time of the MSU Christmas broadcast has been changed from December 21 (as previously announced) to Decem ber 24, according to word just re ceived from CBS. The program will be heard over Montana affili ates of CBS on Tuesday, December 24, at 8:05 p.m., MST. The pro gram will be broadcast in the East on December 21, as originally scheduled. Local stations should be queried on exact time they will carry the program, however. In November . . Unemployment Up Some More Last Month Montana employers had 3,000 few er workers on payroll this November than last, and 5,700 less than were employed in October of this year, ac cording to figures released by the unemployment compensation commis Compilations show, Chadwick H. Smith of the commission says, "164,900 wage earners in non farm employment last month, against 167,900 in November of 1956. At the same time offices of the com mission's employment service in the state had 12,564 active job appli cants in their files, an increase of 6,111 from a year before, and of 4,523 from the October count. The number of job seekers will increase monthly through March when the seasonal peak is normally reached. This is the fourth successive month, according to Smith, showing an em ployment decline from the same month of last year. The trend first appeared with cutbacks in July in metal mining employment, which now shows 2,900 fewer wage earners than during last November. Lumber and logging are experiencing similar re duction in force, 200 below the em ployment of November 1956 and 1,100 below the figure for August, when 1957 seasonal employment peak in that industry was reached. Market conditions, national in scope, are a factor in the cutbacks in both industries. Other copper producing areas as well as other timber regions, are cut back in similar manner. Economic effects of idleness for these groups of workers spreads to other fields of employment. Jobs in trade, trans portation, and construction are di rectly and indirectly affected. The report shows a 600 reauction in November manufacturing employ ment from a year ago, in addition to the 200 lumber decline. Smelter (Continued on Page Four) Chairman . • * • Polio Down 80% -The U. S. WASHINGTON, D. C. Welfare Department has reported a dramatic 80 per cent reduction in paralytic polio in this country over the last two yeai-s. A sharp drop was also noted in less severe non-paralytic cases. 'Î3TQRICAL SOCIETY OF MONTANA H t L E M A Tax-Education Commission Learns . . National Banks Highly Favored, Tax-Wise Continuing- its methodical process of g-athering- information on Montana's problems of taxation and education, the Tax and Education Commission headed by Sen. Dave Manning (D Treasure) Monday .and Tuesday of this week heard testimony on bank taxation by representatives of that field, discussed curriculum and other higher education problems with the State Board of Education, and lined several major tax fields to be studied in the period immediately ahead. One of the more important disclos ures that came as a result of discuss ing bank taxation with Wesley W. Wertz, Helena, attorney for the Mon tana Bankers Association, and R. C. Wallace, also of Helena, MBA secre tary, is that nationally-chartered banks, unlike state banks, are not sub ject to state corporation license taxes. Neither can the dividends paid stock holders of national banks be taxed under the state income tax law. This favored position accorded the national banks is something the state can do little about; that revision can only be done in Washington, through Congressional amendment of the Na tional Banking Act, Because state banks do pay cor poration license taxes and state chartered bank dividends are sub ject to Montana income tax, con sensus of opinion of the commission seemed to indicate that the State of Montana and all subdivisions should show preference to the state banks in placing public funds on deposit. Whatever benefit accruing from having such short-term de posits on hand, several commission members opined, ought to accrue to the banks which are subject to Montana state tax laws. Discussion of the controversial "bankers' relief act" passed by the 1957 Legislature brought out that, in spite of assurances given the Legis lature, only a scattered handful of small banks have raised their capitali zations and thus made up in part or in the entirety county taxes which | would have otherwise been lost be State legislative Coundl Adopts Six-Point Agenda The Montana Legislative Council, the interim legislative group set up at the 1957 session, meeting in council rooms in the Capitol, December 16 and 17, approved projects for action in the following 12 months before December 31, 1958, mid night, when the council table turns to a pumpkin, the mantle of interim legislative authority disappears and the silver that runs their coaches becomes depleted. +-. runs their coaches becomes depleted. They heard requests for funds from other committees, decided to record their deliberations for posterity and tentatively adopted the rules under which they will operate. Their agenda includes: 1. The state prison—a mandate from the legislature that created them; 2. Co-operation with two education groups already in operation; 3. Setting up a legislative service to draft bills for legislators and pro vide research material; Senator Murray about proposed legislation before the U. S. Congress, on Indians; and 5. A study of state budgeting and appropi'iations procedure and audit. 4. Contacting The problem of State personnel as an agenda item was suggested but was dropped. PRESSURES TO "MAKE GOOD" The Council is working under pres sures arising out of the controversy surrounding their establishment, first in the Legislature and later in the courts. They feel a responsibility and necessity to gain the confidence of the general public as well as other fellow legislators in the type of work assigned them. They are faced with multiple problems of state govern ment and the obvious fact they can not tackle all of them, but must con centrate only on what they can hope to carry to a successful conclusion. With full knowledge that two of the most important problems fac ing a legislature are taxes and education, and recognizing the folly and expense of duplication of effort, they voted to co-operate with two other groups already op erating in the taxation and educa out-^-. cause of the tax classification of bank "surplus" funds up to the amount of capitalization having been reduced from 30 to seven per cent. In this connection, J. F. Reid, chairman of the State Board of Equalization, told the committee, "the bankers made a very firm commitment on increasing their capitalization. Either they do something about it, or they're going to be in trouble" in saving that law when the next legislature meets. (The relief act, SB 15, as pointed out in the VOICE on numerous occa sions, is costing the counties of Mon tana in excess of $300,000 annually, and will continue to do so unless; 1. the banks do raise their capitaliza tions very substantially and thus pro vide more taxes on bank capital, or 2. the law is repealed at a subsequent legislature. To date, our information indicates only five small banks have increased capitalizations. Not a single one of the 18 out-of-state controlled chain banks—who stand to profit by more than $150,000 in reduced taxes —have increased their bank capital. —EDITOR). Commission member, Sen. Charles Mahoney, in reviewing the way SB 15 was lobbied through the 1957 Legislature, said in effect that the legislators were hood winked into supporting the meas ure. IS THERE NEEDLESS OVERLAPPING? Garfield education with the state board,, ques tions were raised by commission mem bers regarding the possibility that there is needless over-lapping of cur Taking up the problems of higher (Continued on Page Four) +-. tion field. It was expressed that in another year "we will do away with other committees and everything will be channeled through this (legislative) committee". The two groups presently operat ing in the field of taxes and education are the Taxation and Education Com mission appointed by the Governor but created by the 1957 Legislature and given $35,000 with which to op erate, and the Committee for Educa tion Beyond High School, appointed by the Governor and operating with out any funds from the state treasury. DOUBLE ENDOWMENT KEY TO GOLDEN DOOR The Montana Legislative Council, endowed with all the legislative pow (Continuea on Page Three) Machinery Makers Try 'New' Cures for Slump CHICAGO—(CNS)—As the na tion's economic climate chills, the WALL STREET JOURNAL suggests industrialists take a look at how farm machinery makers have met a 6-year sales decline of 26%. The industry has managed to pay dividends to stockholders, and this is the way they've done it, the JOURN AL says. (1) They've cut production by laying off workers. (2) They've closed factories. (3) They've bought up firms that make other products —baby buggies, fertilizers, and boat motors. One thing they're doing that's dif ferent from what businessmen have always done in hard times is to pro mote their products better. None of them tried cutting prices.