davidaulloa/AmericanStories huggingface dataset:
The producers news., 1927-10-28
L. MN. ?. Merger Hearing on AT MINNEAPOLIS

ing, should be confined initiallv to tbe
consideration of such matters univ ~
ja!pp!ertaln to public welfare and pub
Ilc interests. With public interests
properly guarded the quarrel among
the interested railroads, as parties dis
putant could be heard at hearings of
IKE kind, and with a clear field to
themselves.
Confusion on Transportation Act
After fourteen years of experience
with the sO-called Transportation Act
ana also, the data supplied bv the Ru-
reau Of Valuation, the views of the
members of the l. C. C. are materially
at variance on matters of very great
Importance, and particularly as to the
proper method of computing values
Tor the ascertainment of rate bases
And court opinions seem to he definite
only TO the extent of holding that the
earnings Of railroads should be "iustO
ana Tar" and reasonable" and
which may ultimately be interpreted
10 mean that the rate base and the
rates OF return as provided for in the
transportation Act are interdepend-
ent. ~ 0ii''-
Ihls aspect of the situation presents
a DeWlldering perspective, and sug-
geSts with some force that care he
exercised to the end that the effect
OF sensible economic reasoning. on
the part of the l. C. c., NAV not he
destroyed by irreconcilable legal in
terpretations. 9"i -
l. c. c. Should Draw Lines Ratwao,,
Private and Public Corporations
In advance of the consideration of
any proposal to consolidate the rail
systems by lease, "unification" or
otherwise, and to further complicafe
existing situations, there should he
procedure and action designed to de-
tlnitely establish, from legal and econ
omlc viewpoints, all basal princinles
That may be developed as controlIin0
factors. To simplify such procedure
Ine interstate Commerce Commission
should flrst distinguish a public SER
vice corporation from a private cor
poratIon by pointing to the material
lCy OF the restrictions and limitations
applicable to railroad corporations
characterized as government co,,
trol), and showing by way of COM
Patlson, wherein private corporation
enjoys greater privileges.
A railroad corporation in operation
IS not only a public functionarv but
also monopolistic and being given nro-
lection and encouragement as sucb is
IN theory, subject to public regulation
II railroad corporation is pernoitted
70 earn fair return on its investment
ana, IN addition, is permitted to earn
such as excess as will provide for !
surplus and, in addition is permitted
10 enjoy accretions of an intanoibIe
nature, it will be difficult indeed for
the l. 9. G. or the courts to point fo
any private corporation or anv nrivafe
Individual that ever enioved greater
privileges, or asked for greater CON
cessions. se'''0h 0oii-
Ihe Power Of the r. R. MonOpolv
To perfect rail monopoly. the nnblic
ROADS constructed and maintained at
PUBIC expense, and largely through 4
special gasoline tax, cannot be used bv
private corporation or a private in,
ulViaual, for transportation purposes
excepting under such regulatory rules
as were designed to give to railroads
not only a rail monopoly but also con-
tr9i OF the public highways.
II the Transportation Act should
The producers news., 1927-10-28
NO JOB HUNTING
FOR THESE FOLKS

Before Lydia Poykko even fiD;,,
ed her course at Dakota Bn,in. ,;,al,
College, Fargo, she was emn'o"ss i,,''S
by the First National Bank C.oig S.o,''
John Harold began as Asst ('a,S'. C.,S;'..
of the State Bank of GsrdDer c-''I', u
very day he graduated from D BC C'
Doors closed to beginner,o =,
wide open to ''Dakotans'' Bs,.'., ','
OF their ACTUAL BUSINFS5;-
training(c ACCOMPLISHMENTS h
elsewhere) they make goo5 fron
the start. Some 230 banko,r.r.r,ssa.., ~.
y. B. G. graduates. Watcbre~
Follow the Successful 5g;,.,.
term Nov. H. Write FL VA. !.
klns, Pres. 800 Front St., .yo
The producers news., 1927-10-28
CContinued next week.

Oh the Corporation never lose sigbt
OF the fact that the first object
u any corporation is to make
money for its stockholders"
1t follows, therefore, that railroads
WIZ give their consent to the most
uIasIlc restrictions, should regulatory
commissions confine their THOUGHT to
Ihose matters only that are not re-
iaCed TO excessive earnings. However
Che origin OF regulatory commissions
was The result Of public issues. based
on tne assumption that railroads. in
ADDITION to being quasi-public. were
inonopolles or of mOnopolistic ten-
qehcles, and should be subject to such
iaWIul regulation as would minimize
Iile degree Of monOpOlistic abuse and
greed to be suffered by the public.
Going Concern" Value Theory
should be entitled to earnings on
greater valuations than represented bv
actual investment in cash and eouiva-
ileents, as contemplated by constitu-
IlohaI provisions, such additional rev
enue should be provided by some form
Oh concession other than the recogni-
tlon OF the "going concern" value tbe-
ory as a basis for the computation Of
rail earnings. -''' -
The theory of "going concern" value
as stressed by representatives of rail
roads, and to a large degree success
Iully, has not been resisted as to its
lack Of merit warrants. The "ooino
concern" value of railroads comprises
Che physical properties, both actual
ana exaggerated, surplus-actual and
appropriated, intangibles and the earn
lngs.. The bonds of railroads are Sc
cured oy the physical properties, as
the small market fluctuations indi-
caCe; The stock of railroads is de-
pendent, for value, upon the earnings.
d ana tne earnings are dependent upon
tne schedules of rates. 1t follows,
therefore, that recognition of the
gong, concern" value theory, wholly
or partially, of establishing a rate
oaSe' requires that the rate schedules
pfecede the computation base. Too.
Cne recognition Of inter-dependency
Oh the physical property value, repre- |
sented by bonds, and the speculative
property value, represented by stock, |
- CAlC pOSSlUlllIN VI ouBSldIl- /
tlal regulation in the interest of the
public.
The Effects of Leniency
1t may appear to analysts, there
lore, that the leniency displayed by
regulatory commissions, court opin-
ions and interpretations thereof, are
the parents of that thought that rip
ened into proposal to create the /
greatest combination in rail history.
In its application to the Interstate
commerce Commission for permission I
to lease the properties of the North
ern Pacific and the Great Northern /
Railways, the lessee applicant, the
Great Northern Pacific Railway Com
pany, makes no disclosure of its fin
7ncial responsibility, except that ten
shares of its "no-par" stock have been
subscribed for.
A Delaware Corporation
This lessee company is Incorporated
under the laws of Delaware, state
that now specializes in the enactment
Of statutory laws which designedly,
remove corporate liability, and the
liability of promoters and
stockholders. This Delaware lessee,
The Great Northern Pacific Railway
Company has, seemingly, a go-as-you-
The producers news., 1927-10-28

The North China Daily News rabidly pro-
British, and as rabid in its red batting
campaign, has taken the mart of tho new
government III no uncertain terms, refer
ring IN friendly words to the leaders and
10 thelr program There could be no sur
Ell. Ct InusAt 49, Vi me ,. weakness of the govern
sil Iilen' 1an lioan d Ohlhese point of view. The
favor OF the imperialists-of with its
head is the thought that manv Chinese
are yoIcIng' Business is still behind the
new government. As for labor. it has no
representation worth speaking of.
,S nS' VIZ lhe new government do with
answer.
The old unions of Shanghai. for example
have been dissolved, and new union
nave Deeh aIsSOived, and a new union has
Deen ORGANIZED under the chairmanship of
Nanking political leader. ANY trade
uni1h iiG tnat Is so inclined may affiliate
Win TINS ne" organization but the Off
of the KuOmintang
the Italians. They have no cau to do sO.
but they nave swept the militant unions
Oi 1879 and 1926 into the discard In their
places are organizations controlled by a
pOLiticai party that is dominated by the
business and landlord interests of China.
ms Is NOT the end. of course. The present
government at Marking DrObabIv will he
shOrt-lived. While if exists however Il
represents the efforts of the Chinese pro
pertled interests to maintain themselves in
power economically as well as politically.
against any militant movement of the
workers. 1t is the Chinese brand of bust
m, ness class direction of the labor movement.
ms report on Chinese affairs by the fame
neflcan economist are very interesting at t
ne IN view of the fact that Sen. Wheeler, rece
returned from travels in the Eastern hemisphe
his wife are covering Montana discussing tn
pression of China.
The producers news., 1927-10-28

not be tested as to its legality tbe
rall monopoly, not only legalized hui
champloned and encouraged by regu-
IaCofy commissioners, must be recog-
nlzed as having outstanding advant-
ages over private corporations. Be
cause OF the Sherman Antitrust Act
private corporations cannot pool their
interests and thereby lawfully create q
monopoly. This outstanding advant-
age IN favor of the rails cannot do
otherwise than manifest itself among
operators on the Stock Exchange.
While the magnitude of the opera
Ulons OF private corporations in this
country offer unlimited opportunity
Tor both investment and speculation.
the comparative stock-exchange ono
tatlons indicate that investors and
SPECTATORS in rail securities are quite
favorable to that which is commonly
termed government control"
Railroads Rob Farmer of One-Third
of His Produce
In distinguishing private CORPORA
tions from public utilities CORPORA
Clons, IN their respective communities.
everywhere, cooperate with Individual
effort, and with their active support
and financial aid, lend encouragement
10 development and enterprise DESIGN
ca TO promote general welfare. On the
other hand the public utilities cor
poratlons, In its display of public spir-
II, IS the exact opposite. The railroad
is only ready to accept business after
having been created through the en-
terprlse and investment of its patrons
The railroad because of its existence
encourages or discourages enterprise
on the part of others, but of itself
produces nothing. The Northern Pa
CHIC IS land grant road. Of it's six
" million acres of MONUMENTAL
lands, this Company the mineral and
OIL The Northern Pacific does not
dig for goldd nor drill for oil. but its
greed requires, without risk or in
vestment, that it share the profits
from these hazardous industries. in
addition to its enjoyment of a trans
portatlon monopoly as suffered bv the
real tonnage producers. Another haz-
adrous industry is that of farming
inquiry will disclose that, during the
past forty years, the railroads. for
their grain haul from Montana points
TO Minneapolis, exacted toll equal TO
one-third of all the wheat produced
and shipped by Montana farmers. Tn
substance, home industry and enter
prise furnish the cows and the rail
roads do the milking.
Corporation Greed
These comparisons are worthy of
serious thought in the consideration
OF methods designed to provide far an
equitable distribution of benefite de-
rly,ed from the thought, energy. effort
adventure, investment and enternrise
OF the many, rather than among tbo
lew who are, directly or Indirectly
as associated with entrenched mononoIy
lhese references are made becay5o of
the fallacy of encouraging mononoly,
and the necessity of creatin@ peI$, Fly.
measure Of equality among those is'll an
gagged IN all fields of endeavor r. tbo
end that the Northwest NAV e,ro1D ~ org 'rlS
prosper in manner cono,ee,, e19r s',,.ata s.llo
with her natural resources. = - ~
Il IS conceded fact that the n,;r,
aFy object of all corporations i ti,i, +bn+
~ - aIlII1g IIlIakl9g money. In its report to
OK for the year 1925 fbe IT -
. steel Corporation said. 'ii0 =
The men who direct +bo Iii.
The producers news., 1927-10-28
Continued from Page One)
Re: PROPOSED MERGER OF
NORTHERN PACIFIC AND CREAT
NORTHERN RAILWAYS
HIrnnr,nr q. L u

a Y -
Finance Docket No. 641O
Protest and Inquiries by Frank J..
Edwards.
Helena, Montana, Oct. 21. 1927
10 the Interstate Commerce Commits
sion,
Washington, D. C.
On July IA, 1927, l forwarded NV
written objections to the plan of mer-
ger desired by the Great Northern Pa
ciflc' the Northern Pacific and the
Great Northern Companies.
Since the receipt of your acknow-
ledgment OF my protest, under date of
July l9, 1927, l have endeavored to
analyze the salient feature involved
That L may arrive at some satisfac-
tory conclusion as to the nature of
the hearing that is to be held at Min
neapolls on October "a, 1927. and the
character of procedure that will be
adopted then. This thought. on NV
part, was with view to filing a ne
Cltlon for leave to intervene.
1t occurred to me also, that because
OF the material, far-reaching essen
tlals involved, that other hearings
might be had, or at least one hearing
at some point west Of Mandan or Mi
not, N. d., and east of Spokane.
Washington, that convenience of the
northwestern public may be provided
Tor. The City of Billings, Montana.
would serve as a place for a hearing
That IS central geographically; not far
from the center of northwestern nonn-
Iatlon, and point where are operat
fhFQn 81
Volyed, namely, the N. P, the G. N.
and the c., B. and @. This reference
is made because, it is quite clear, Min
neapolls IS point where only the con-
Venlences of railway representatives
are served.
In a large measure the apathy dis
played by the public is due to lack
OF information. The Press carries onlv
Such Items as are supplied by the
Railroads, and this accounts for the
apparent public indifference.
All those who oppose intellec-
tual truths merely stir up the fire;
the cinders fly about and set fire
to that which else they had not
touched. Goethe.
kaps "Flathead john and R. r.
Commission
1t Is observed that in granting per-
mission to prospective intervenors 10
participate at the Minneapolis hear
ing, it was directed that notice there
of be forwarded to the Governors. and
to the Railroad Commissions of tbe
northwestern states. However. iudg-
ing from public utterances, statements
and newspaper quotations, Montana's
Governor has not yet heard of the
proposed merger, and should Montana
be represented by her Railroad Com
mission, it would be by way of proxy
IN the hands of the Northern Pacific
II other northwestern states are
equally unfortunate there will be no
independent official expression that
would be helpful to the /. C. C. in its
consideration Of the public interests
involved.
If the public were advised of the
purpose contemplated by the merger
scheme, and the probable results to !
follow, it would, doubtless, be justified
IN harboring the opinion that all hear
mgs' including the Minneapolis hear
The producers news., 1927-10-28
ELEMENTS OF POLITICAL EDIL
CATION
NOOHCInued from last week)
~ ~ WHAT DOES THE IMPERIALIST COM
PETITION BETWEEN THE BIG COUN
TRIES LFAD9
CONTINUED from last wneLl


The continually growing competition between the
5lg capitalist countries leads first of all to the
growth of ornaments, to the considerably greater
expenditures than before the war on military aims
Despite the League Of Nations, the League of
Peace, the Washington Conference, the forcibe
disarmament Of Germany, the world bourgeoisie,
and IN particular the bourgeoisie Of America Eng
land Japan and France, are carrying on the work
OF armament at a much more rapid pace, and the
peace-time armies are now much greater in num-
bers than before the war.
Foreign wars are always an essential appurten-
ance Of every class society. These wars become
particularly acute in the period of decline and on
the eve of the death Of the given class society This
law cannot be avoided by the four imperiaist pow
ers who are now ruling the world They rush on
mpetuously towards new world war. And #
only the proletarian revolution does not conquer
sooner future war, devoting humanity to the
most cruel sacrifices and deprivations will bury
capitalism and mark the beginning of the classIess
society
Continued next week.
The producers news., 1927-10-28
Senator Walsh Writes
To The Producers News
Thomas j. Walsh, Montana,
Chairman
Miles Taylor Clerk
UNITED STATES SENATE,
\ I'd = T 4 10 DL n n u,
Committee on

Disposition of Useless Papers the Executive Departments
Helena, Montana
October IA, 1927
The producers news., 1927-10-28
NEARING SEES FASCIST DRIFT IN
NATIONALIST CHINA

Prot Scott Nearing is travelling in China
Orient. He is writing special articles for
'derated Press and this week he writes a IN
ucle plcturing the trend of events in China
Us: ''''"'
Six months ago there was a yigorous
driving, revolutionary movement in China
masses were behind it. 1t spoke in the
name OF Chinese farmers and workers as
wen as In the interest of those Chinese
business groups that are demanding
free China.
Then, in April, trouble came.
Chang Kai-shek entered SHANGHAI; in
March. He did not have to take fbe c;tv
me armed workers, backed by the General
Labor Union, had already done that. The
NaIlOnalslts were no sooner in mower
however, Than they began a clean up. in
the course of which Chiangs men cut off
the heads of as many of the leading radi-
odIs DIS tney could lay their hands on
What had happened?
FIRST, there were the strikes directed
not only against the foreigner but against
the chinese eXplOiters as well. Now a
strike against foreign manufacturer NAV
easily De regarded by a Chinese manufac-
turer as a patriotic act whereas a strike
against the Chinese employer can be- con-
siGered treason. That was one reason why
the employing class of Shanghai hacked
ChIang In his "war on the reds"
Seconds, and from the Chinese point of
view, even more important, was the seiz-
ure, by some of the peasants Organiza-
tons of Central China, of the land: the
execution of landlords, and the division of
the land among the workers
Strikes effect only small part of Chi
na-the commercial centers. But attacks
on landlords send a shiver of dread I'm
tno spine Of the whole Chinese ruIinp
Grass. 1t all owns land.
SO it was that commercial interests of
Shanghai, and the landed interests ali over
Chlna got behind the move to "oust tho
reds. The Chinese revolution really
threatened to make basic changes in the
property relations of China.
What was to be done?
IL was one thing to execute few load
ers. 1t was quite another thing to Iioui-
date the mass movement of the workers
ana poor farmers of China. Yet II is this
last task that the new Government ~
NaRking has shOuIdered. In its statement
TO The public this new government does
not mention militarism and lets imperiaI-
ISM severely alone. It's one taslT i to
eliminate the Communists.
ne result is to say the least, peculiar
The producers news., 1927-10-28
Friday. October 2s l,,,

Sa:, St, Paul to the n. P. ana : ~
reclprocally, when mo,,; rGa y. n.
posite direction. AD% AiOying IN tbs
ness ness originating on t tbs al ral NJ K
system, west of Cbicssnlee sle Butlhso,N.'
north of the Gulf portss sO and Al
Louis, Kansas CitT OtSs, ~, mcludrs
Pad;e?I and elsewhere, and d9f6a, destiaa., OSa1ss
Pacific Coast and e9S,l9ed s n
IS transferred by tbe n 4pediate 0o..
tae. ta9 n. .,I5 +; and G. N. at BiIilao BBTTllagto
the opposite direction "Dgn moyhS
nection the same NAV ' IN this : :.
Colorado & Southern one, pe said Of r h.
trackage rights, fra oVpefatng u M
northerly through Dem = N GaIyes,.
connection 4l 4 with the BurIiD.a.nd II and to 4
= The Burlington and tba lnggton
Southern are, tberefoI,ne H Ine Colors1
feeders feeders to the n. P. 'arS and g ci@goars
perhaps very necessar,,' ~,'u y, n N
their present rate base. Feeders, Il.
pensated. '"SeS may be ~ ~
What "Unification" Pl., y,
Inns proposed "unific@altt; @lt would D.
will give the Delawarlto' 'IIa'lon' Ialon scbsr.
troll of the Burlington : Jesse ,essee the N.
Colorado & Southern oH5 1S5'em en- and 4.
purpose, permanently anu or 70 Serve b
the rail business of tbo- VI Vemporahl,
be transferred at ne, 6sTSe roads n,,
Denver & Rio Grande TEef W to 4.
the Western Pacific. and d%eS'en al
when 1GI moving in the OPPOSITE tieCiiafocall 1i
Ihls new business wonlJ ,S uifectio1
the earnings of the D. & P q InSreaa n.
the Western Pacific, and On y. :, W an,
ing concern" value theory vi u,1 .ne 20
ate for them higher vain.su i, would ge
"'e "iakIng tc purposes, besides s.,.S i
Continued on page g. ''s'
The producers news., 1927-10-28

Helena, Montana,
October IA, 1927
Pentywood, Montana
Gentlemen
took pains your office year two ago to apprs
you of the interest of the Standard Oil lease in
atons having journal
investigation which had of
ara oIH not insigated by ,looking suppression of
formidable rival " ="
1t that of the
vi Company and the Sinclair Company YOU as
truthful or accurate number of the to which
attention has been called carrying nnuation as that
first above to - ~ % '""'
mat you know the facts authoritative
you herewith of the decision of the Court
that indicate the
erred to IN the transaction. The story told in
i SINCLAIR obligated by his pine
the Mldconnent field
Ofeek Held The Standard Oil contract with him bv
ch agreed to bear onhalf
m me IN the pipe line and in the Teapot Dome It is matter
pubic record IN Washington that the
clair CG C IRON leases in the Salt Greek field jointly Sin
and to the Standard
ms letter not written you change yonr eitriai
1t with full knowledge of the facts 10y ~ ' may pursue
Very truly yours
T. J. WALSH.
The Spokane woman. [volume] (Spokane, Wash.) 1921-1935, 1927-08-18
Thursday, August is, 1927

I exclaimed, pushing aside the long
black hair.
"'Ell no." denied the man; that
ears buried in the tomb with the I'M
known soljer-losht that ear in Flan-
ners fell"
ATS too bad" | cOnsOled: "me, |
never lost ear-'stOo bad"
AT amt bad" insisted Ferde Il
gets me a job by that ear. I'm
great actor-yesshir, IN a great actor"
what kind of Il iob?" l wanted to
know.
witch job
Continued on Page 13l
The Spokane woman. [volume] (Spokane, Wash.) 1921-1935, 1927-08-18

luck, pushed the few remaining chips
of my pile to the center of the table.
| shuffled aimlessly to the bar, and
another lounger Immediately filled my
place at the table.
Wanna see how me pals getting
along" | muttered unsteadily to the
barkeeper, as jerked a smudgy thumb
in the direction of the room at tSe
rear. NASTY jolt Bill give 'im--his
own fault, though
The bartender spat in disgust.
Il get yuh," he sneered; you want
to roll him vile he's stewed. Well,
yuh got another guess. He only had
enough on him to pay for his bed"
The bartender laughed mt his own eff
fort at humor and granted permission
with wave of his hand.
The Spokane woman. [volume] (Spokane, Wash.) 1921-1935, 1927-08-18
THE SPOKANE WOMAN

The bed" on which l found the
man in the room mt the rear was the
hard board floor of an unventlated
hole under the sidewalk lie was sit
ting on the rough boards, nursing IA
bleeding. swollen mouth.
"Ain't you me old pal Ferdie"
began sympathetically.
call me Ferdie if you must" the
man muttered; "a sweet by any other
name is just as rosy"
/ simulated delight at the fellows
attempt to quote Shakespeare, and
dropped into Il position beside him.
"Mean smash that Soapy handed
yuh-plum' knocked an ear off, eh?"