Montana labor news., 1932-05-05
CHALLENGES FIGURES QUOTED BY GOVERNOR ERICKSON IN HIS
ANNOUNCEMENT AND ALLEGES INCONsIDERABLE EXTRAvA-
CANOE. CLAIMS ADMINISTRATION HAS DISsIPATED HIGHWAY
FUNDS IN UNAUTHORIZED MANNER.

According to the state press, Governor Erickson, in announcing his can
didacy, mentions the state debt This is the first public admission by him
that there is a state indebtedness, which he promised to pay off in the
first four years of his administration. The governor states that the debt
is about ss5ooOoo and informs the voters that the debt has been reduced.
This is the first statement given out officially by the governor O. any
person in authority at Helena, as to the financial condition o the state
ask the people of this county and state to compare Governor Eick-
sons figures with the itenized figures given by me in previous letters. My
figures were obtained from records in Helena and can be verified in every
detail l invite the governor o any state employee to write a statement,
over his signature, as l have done, and dispute any item in my previous
statements. will then inform him as to which office he should go to
find the records.
How Figures Are Juggled.
AS to the manner in which accounts are switched in the capitol will give
one illustration out of many Last year the employees in the highway de-
partment issued 100000 in warrants, without any authority that can
discover. Since January they have been taking up these warrants, issued
against the trust fund, with the collections from the gas tax. This cash is
then taken out and used to pay the expenses of state administration and
that is the reason we ire not constructing any new highways this year
There were still s1,lO700O unpaid on April !, but this reduction is called
reducing the state debt" When these warrants are paid, the gas tax will
then have to be used to pay the contractors from last year. This will take
most of it out of the state and cannot be switched around.
A Costly Administration.
The Erickson regime has expended state revenue far in excess of any
previous administration in the history of Montana. Prior to 1921, the mill
levy, for all state purposes, vas 212 mills. In 1921 it wa raised to 4l-S
mills. 1t is o. 13 mills. From 1921 to 1924, inclusive, the sums paid
not the figures available fr 1881 bt IN the previous sH years OF the
Erickson administration the average yearly payment from the above sources
was $l,59lOs1. This does not include the mill levy or the gasoline tax,
but is principally new taxes. AS to how they are getting rid Of some Of
this money, call your attention to the fact that last September, in spite of
conditions in this state, the governor and the board raised the salaries of
many o the employees.
AS to Bankruptcy Charge.
AS to my statement that the state administration has been banlrupted
by mismanagement, which the governor o Indignantly denies, will give
the facts and leave it to the voters to decide who is right. Since last
January, the governor and his employees have been trying to borrow $1,000,
600 m debentures, voted by the people. Some time ago the governor called
the managers of the chain banks and the Federal Reserve Bank at Helena
into a conference and asked them as a special favor to lend this money to
complete the unfinished roads of this state. He did not receive it, This
vas the greatest humiliation that could be offered to a great state. After
three and one-half months of effort, they have not yet obtained it.
In conclusion, would request the voters to refuse to accept either my
selves M find u is correct mere re smn som o1hces IN Helena
where correct information AN be obtained. When you send your inquiry
ask for all the figures o all the debts. When you have this information,
the effort to deceive the people by giving out erroneous figures from state
offices will cease. So Will the present administration.