davidaulloa/AmericanStories huggingface dataset:
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
BY JEROME G. LOCKE


]. ]. Mcclure, president of the
Workers Protective Union OF
Montana, and l have just re-
turned from the national con-
ference on Farm Labor party
organization held in Chicago,
Nav 80 and 81. It was an sex
plOratOry" conference, called by
the Farm-LabOr party of Mime
sofa, to determine whether a ma
tiOnal Farm-LabOr party should
be launched and, if so, when.
This conference, or convention,
was remarkable, not only be-
cause the action initiated by it
NAV ultimately have great his
tOricaI Importance, but, also, for
the quality of its membership
and the air of seriousness under
which it proceeded. had never
before sat in a public gathering
that manifested a similar psy-
chOlOgy.
Dozens of the great liberal
thinkers and leaders were there;
men and women whose names
are generally known and whose
deeds and actions mould public
opinion. Not a soul in the hall
but what knew that Roosevelt
has failed. The prosperity that
is being cried for political eff
feet is false; a prosperity for
the upper One-third Of the eco
nOmic pyramid only. Basically,
the country is now worse off
than it has ever been. With IL
million unemployed, debts that
can never be paid and tax bur-
den that cannot be met, we are
headed for another crisis, the
worst we have ever experienced.
AS an economic system, capital
ism, under a democracy, is about
through.
The great money powers of
the country know these cOndi-
tiOns a hundred times better
than the liberals. They are de-
liberately preparing for war.
Under the patriotism that can be
stirred up by war it will be
easy to clamp down with mill
tary dictatorship. Then we are
in Fascism and mass slavery for
years to come. This lineup to
such an end is growing clearer
every day. Likewise the tension
between reaction and liberalism
is tightening up almost hourly.
Yet ninety-five per cent of the
people who sat in the convention
will vote for Roosevelt. They
dare not do otherwise. There is
the chance-slim, but still a
chance-that he will turn left
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12

!. The House of ReD,...
did not want debate representa- a
luton Ut to cite Dr. TO On the Rs
alleged contempt, 11OottnseNd b
set forth the facts. HT NJ, Us bd6|
was not for the purp Wy D. R
latlng, but rather d Esfy Of
possible, the Townsend ', !.
Alb initiO the committee w ~ov' g
In its concept. The sct was i.
committee &C was inquis Sfilon 81 4
than Legislative. '''i'e ats
!. The implied power # NV.
ton arises out of the G q mteaap
al provision that Congress- Hyr,S','O9 \
have the right to make S,V 81
necessary for carrying int ~l !. a
ton the powers expressly j,'V oS clsa
in the Constitution. ''' gram
The first case in point !, 4
OF o. KlIbourn V. Thompson lt0 n y,
1857 where it was held. ' az Y.
ness rightfully may refn a
answer where the bounds S[ ~ 4
power are exceeded m a.
tons are not pertinent "a Il. w
ter under inquiry" e.g,. 4 ~
poena issued on Nav il . ~, \
Come and bring exact cODig
your income tax returns W
in the name Of creation can inm-
tax returns have to do with IN A
old age pension legislation? All
in Seymour V. the U. S. IN h
58O) the court said: "The limb
ton Of power of investigator
that it must be germane to gr
matter concerning which the hon
conducting the investigation N
power to act whether such sd
be enactment of statutes Or SOM
thing else), and not a mere
QUESTION into the private aitii
Of the citizen" !. In MacCracksr
Jurney (72 Fed. 56O) this SAN
doctrine was expOunded and vii
the court held that the COng
had the power to cite MacOrat
for contempt it did SO upon
theory of self-preservatiOn Of Y
powers of Congress; that is q
power of Congress to legislsh
In all cases where the power
Congress to cite for contempt y
upheld, the decision rested a
on whether or not the action Of
witness was obstructing legislaHa
Weight Of legal authority, ths
fore, holsters DR.. Townsend ID
refusal to testify before a CONN.,
tee patiently waging an inqulaa
against him and his old age ?
sion movement.
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
CONGRESSMAN LUNDEEN
ADDRESSES CONFAB

Besides Minnesota with it's ma
ture Farmer-Labor organization
there were representatives of
growing but not yet arrived move
Ihents, like Illinois, Indiana, Mich
igan, Montana, California, Con-
necticut, Ohio, and of recently de-
veloping groups in New York, New
Jersey, Pennsylvania, Colorado,
Arkansas, Alabama, Kansas, Mis-
souri,, Massachusetts,, South Da-
kota and Washington state. Wis
consin was not represented so far
as OBSERVATION-DISCLOSURES
Federation was concerned, though
Tom Duncan, secretary to Gov.
LaFollette, and a writer for the
taFollette daily, tn e Madison
Capital Times, sat through the
sessions. Congressman Marcan-
tonic and Lundeen addressed the
conference.
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
RAPE OF NIAGARA
Continued from page two)

The value of the headworks and
residences built near the works by
the Rocky Mountain company has
deprecated so that it is apparent
the company is bankrupt. It's resi-
dent agent as is required by law
(upon. whom service of summons
must be made on all suits against
the company in Montana is Dan
Kelly, the manager of the Ana
conda Copper Mining Co.. If suit
is filed by the creditors of the
Rocky Mountain, Kelly's agency
can be withdrawn as was done
when the Hauser Lake Dam went
out, and in such case any laborer
with wages unpaid or person in
jured can have no redress in the
courts of the state of Montana.
The interest on the two million
dollars Indebtedness probably also
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
Final Date for Filing
Work Sheet, June

June 20 designated as the \
date for filling out work Sh 8 !,
All farmers who intend " y Y .
servation program must !, have have 4
work sheets in the :. AilO! !. N
flee by June 20. This IN II NJ u
nal closing date and Will D"
extended.
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
ADVISORY COMMITTEE
OF TWENTY-FIVE

Greetings from Meta Berger of
Milwaukee and other Socialists re-
garded as left were read. George
Nelson, Wisconsin farmer who is
vice presidential candidate on the
Socialist Ticket with Norman
Thomas, was put on the Farmer
Labor advisory committee of %.
Others on this committee are:
George Meade locomotive fire
MANI, secretary Cook county (Chi-
cago- Farmers Labor Party; John
Bartee, auto worker), head of the
South Bend and Indiana Farmer
Labor committee; John Bosch,
(farmer), head of the Natl. Farm
Holiday Assn. (Minneapolis); J. G..
Locke, Billings, Mont; Edw. Nc
Larty, ST., (EPIC) of Los Angeles;
Milton E. Scherer, Mich. Farmer
Labor Party, of Muskegon; Geo.
Buresh, Cedar Rapids, Ia; How
ard Y. Williams, organizer, Amer
lean Commonwealth Federation, st.
Paul; A. Philip Randolph, presi-
dent. init. Union Of Sleeping Car
Porters a Maids, NEW York;,
With John B. DavlS Of Washington
The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
UNION REPRESENTATION
OLSON'S MESSAGE

AS for trade union representa-
tion it was noteworthy that the
newer unions were we'll in evil
dence, including the auto workers,
rubber workers, Kenosha Simmons
bed federal union, progressive
wing of the steel workers and the
progressive AFL central bodies
like Hartford, Conn. President J.
L. Lewis of the miners sent a
cheer for Pres. Roosevelt, as did
Gov. Olson, neither of which was
we'll received. Both talked of the
Farmer-Labor national action in
1910 in their letters, Olson said:
'While it is not advisable to
place a third-party presidential
ticket in the field because such
a ticket may defeat our liberal
president (ROOsevelt) and elect
a fascist Republican it could aid
greatly in helping to elect lib
erals to congress and in cam
paigning at the same time for
state tickets"
COMMUNIST SECTION
FOR FL PARTY
Secy. Earl Browder of the Com
munist Party, whose invitation to
the conference resulted in keeping
away the chief engineers of the
conference of a year ago, said:
Gall the most reactiOnary
forces are now gathering around
the Republican Party, determ-
ined to fully impose their power
on the country. 1t is impossible
for us to believe that Roosevelt
will halt this trend toward re-
action and fascism i'm America.
Only a Farmer-LabOr Party can
rally the progressive forces of
the country, halt the trends to-
ward facsism and preserve the
American democratic liberties. [
speak for the Communists and
their associates in pledging full
and loyal support to this effort.
Even if we grow much stronger
we will not want or seek con-
troll"
J. B. S. Hardman, editor of the
Amalgamated Clothing Workers
Journal took a leading part in
shaping the organizational struc-
ture: He seemed cynical about
what he called the Roosevelt in
fatuation" but said it had to be
reckoned with.
ADVISORY COMMITTEE
The Washington times., 1936-08-27
Job Chances Slim

One practical effect of this tax
law is to prevent a corporation
from using its earnings in the
business. 1t must pay them out in
dividends. In consequence, earn
ings no longer provide funds for
making needed improvements, for
replacing out-of-date equipment,
and for additions to the plant.
Now, what does this mean to a
man looking for a job? 1t means
less chance of finding work. There
will not be those jobs that come
from the gradual growth of our
small businesses, from the replace
ment of equipment and from plant
expansion.
For those workers who already
have jobs the effect of this tax
law is just as bad. Because of this
legislation, it is no longer possible
for a business, except at unbear-
able cost, to build up a reserve for
meeting future losses. In other
words, a business organization,
unless it already has reserves, is
put on hand-tomouth basis. This
means that it can exist only so
long as it can make q profit. Once
trade slackens to the point where
The Washington times., 1936-08-27

Roosevelt Spending
Is FOOI'S Paradise

Nof income. Fundamentally this is
a question of the fairness of the
kind Of taxes that are levied. Are
they direct taxes levied without
regard to our ability to contribute
to the support Of the Government?
1t has always been my belief
that the Government should raise
the major portion of it's revenue
from direct taxes levied on the
net incomes of individuals and cor
porationS. When this is done, every
one pays his fair share and knows
just how much the Government is
costing him. I have constantly
worked for legislation in Kansas
to prevent concealment of the cost
of government. On the other hand,
If the major portion of the Govern
ment'S income is obtained from in
direct and hidden taxeS-taxes
upon such things as food, clothing,
gasoline and cigarettes-then the
main burden falls upon those of
small income and the cost of gov.
ernment is hidden. In this case, it
is the wage Garner, the Salaried
worker, the farmer. and the small
business man, who have to pay
most of the bill.
Now, let us turn to the record
and see just who is paying the
cost of our government.
What do the figures of the
Treasury Department show? They
show that in the year 1892 SO
cents out of every dollar collected
by our Federal Government, was
secured from direct taxes, the
other Al cents was collected from
indirect and hidden taxes, paid,
for the most part, by people with
incomes of $25 a week or less.
That was for 1882. Four years
later what do we find? We find
that 81 cents out of every dollar
collected by the Federal Govern
ment came from hidden taxes. In
other words, the share of the cost
of government falling mainly on
those with incomes of $25 a week
or less has increased Is per cent
during the three years of the pres
ent Administration. They are pay
ing far more than their rightful
share of the cost of government.
Any housewife can tell you this,
because the housewife knows, bet
ter than anybody else, how the
mounting cost of living is curtail-
ing the comforts of the home. And
you cannot long fool her with the
pretense that only the rich will
pay.
The Washington times., 1936-08-27
End Spending NOU

1t has acted as if it we're willing
to give the whole Treasury away,
trying to enrich everybody by inn
poveriShing everybody else.
The time has come to put an
end to these policies. We must
establish syst m of simple,
honest bookkeeping. We must re-
turn to the principles which we
follow in the handling of our own
finances.
This will give us government
able to meet every reasonable de-
mand made upon it; a government
fully prepared to assume its in.
creasing financial responsibilities;
government able to meet the
needs that arise from any emer-
gency; a government that will
leave our children a fair chance
to solve the problems that arise
in their time.
That is the kind of government
we must have if we are to get rid
of unemployment by giving our
workers real jobs at good pay. I
know that accomplishing all this
is not a task that can be COM
pleted overnight, and I make no
such promise. We have huge re.
sponsibilities that we must con-
tinue to meet. But with the help
of a courageous country it is a
task that can and will be done.
That is my pledge to the Ameri-
can people.
The Washington times., 1936-08-27
Children Must Pay

So, If we are to be realistic in
our thinking about government
finance, we must think of the Gov
ernment as almost a member of
our family-a member to whom
day by day, week by week, year by
year, we must give part of what
we receive in our pay envelope or
part of the crops we raise. We must
remember that every time the
Government spends a dollar, that
dollar will have to be paid by us
or we must pass the debt on, to be
paid by our children. No parents
like to leave their children a heri-
tage of debts and mortgages. But
the creation of a staggering public
debt closes the door Of opportunity
to the youth of America, just as
certainly as a staggering private
debt. We must face the issue
squarely. The present Administra-
tion's daily mounting deficits are
closing the door of opportunity to
your children and to my children.
We must not lose sight of the
fact that a public debt is just as
much a liability to each and every
individual as a private debt. The
fundamental principles of govern
ment finance are exactly the same
common sense principles that we
follow in the handling of our own
family finances. So long as our
Government follows these prin-
ciples our people will prosper.
They will be able to weather de-
preston, drouth and other dis
asters. But if our Government dis
regards these principles. it squan-
derS our resources and destroys
the public credit.
Now, what are these principles?
In broadcast terms there are four
of them.
The Government must guard
and preserve its source of income.
The Government must make
sure that it gets a dollars worth
for every dollar it spends.
The Government must not get
in the habit of spending more
than it receives.
Finally, the Government must
prepare for the rainy day.
The Washington times., 1936-08-27
Times Dali y Pattern
PATTERN 4161

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The Washington times., 1936-08-27
Hits Little FeLLOU

There is one other point in this
Connection would like to mention:
During the depression, private in
dustry paid out over twenty billion
dollars more than it took in
twenty billion dollars that helped
to cushion the depression and keep
employees working. This expendi-
ture was possible only because of
reserves created during the pros
porous years.
Yet by careless, ill-advised tax
legislation this present Admins
tration is, in effect, forbidding a
restoration of the reserves ex-
hausted by the depression. The
sponsors of this tax law may have
thought that it was a smart way
to appear to soak the rich .
Actually it has no relation to
soaking the rich" What it does
is protect the big fellow who still
has a reserve, and ties a milestone
around the neck of the little fellow.
This legislation prevents the small
business man from expanding by
the usual method of plowing earn
ingS back into his organization. 1t
is making harder and harder the
unemployment of many of those
at present out of work. And it is
jeopardizing the job of every man
and woman who today is working
for a business corporation. This is
the most cockeyed piece of tax
legislation ever imposed in a mod
ern country and if I am elected I
shall recommend the immediate
repeal of this vicious method Of
taxation.
Let me add, the revision of this
bill is only one of the changes
needed in our tax system. Our
whole tax structure, Federal and
State, needs overhauling.
This leads us to the second prin-
ciple which I have listed-that we
must make sure that our Govern
ment gets a dollars worth for
every dollar it spends. BY that I
mean that we must get our
moneys worth for the taxes we
pay. We must not lose sight of
the fact that is our money that
the Administration is wasting.
There are many cases in which
it is quite obvious that the coun-
try, as a whole, gets more for the
dollars spent by the Government
than it would if we kept the money
and spent it ourselves. I refer to
such expenditures as are neceS-
sary to provide adequate protec-
ton, to maintain our courts, and
to enforce our laws.
These expenditures are essential
if we are to live in an orderly
society. They help us to maintain
our political and economic liberties
The Washington times., 1936-08-27
Taxes Are Concealed

This increase has come despite
the fact that the tax rates on in
comes of individuals and corpora
tionS have been raised. 1t has
come despite the fact that they
are paying far more actual money
into the Treasury than they did
in 1882. In other words, the larger
payments by well-to-do individuals
and corporations have not been
enough to cover the waste and ex-
travagance of this Administration
What is the result? Those of our
citizens with small incomes have
had to pay an increased proper
ton of the cost of the Federal
Government.
And just how have those with
small incomes paid more? When
we consider the Government as a
whole-Federal, State and local
we find that they have paid in a.
thousand different ways. Take
bread for example. When we buy a
loaf OF bread for 10 cents, We pay
about eight cents for the bread.
The other two cents goes for taxes.
II we smoke package of cigarettes
a day, we pay $22 a year in taxes.
So it is in all our spending. We
cannot buy a stitch of clothing
without the Governments taking
IN taxes a part of the money we
pay out. We cannot buy an ounce
OF food at our grocery store with
out being taxed to support the
Government. We cannot go to a
movie, or to a baseball game, or
ride in an automobile without this
The Washington times., 1936-08-27
Small Business Man
Hard Hit BY Taxes /

january, 1885, and in January,
1936-what has happened? The
Administration has continued to
increase expenditures, even for the
regular departments, and carry us
deeper and deeper into debt.
The latest assurance, volun-
teered only 13 days ago, repeats
the old story: Business is improv-
ing, revenue increasing, no new
taxes will be necessary to balance
the budget" How can anyone
really believe this, in the face of
the record of the present Admins
tration?
1t has piled deficit upon deficit.
1t has increased our public debt
until today the total is equal to
two-thirds of the annual income
of every man, woman and child in
the United States.
It has created an atmosphere
of spendthrift generosity that has
made it impossible for it to restore
economy in government expendi.
tI1rnC
The Washington times., 1936-08-27
Guard Our Income

These, in brief. are the four
great principles which a prudent,
foresighted head of a family fol-
lows in the handling of his own
finances. They are the same four
great principles which a prudent,
foreSighted government must fol-
low if it is to meet the financial
demands made upon it by an in
Creasingly complex civilization.
Now let us examine each of the
four principles in turn:
The first is the question of
guarding and preserving the source
The Washington times., 1936-08-27
Burden on Children

Whenever a government con-
tinues to live beyond its income it
will suffer the same fate. For a
while there will seem to be no end
to the money which the govern
ment can spend. But, in due time,
the day of reckoning must come.
Someone, some time, will have to
pay the bill.
How is it that the Government
has been able to follow such a
will-o'-the-wisp financial policy? 1t
is because the public has not been
properly informed.
We have been told that all this
extravaganza will be paid for by
soaking the rich" This is not
possible. The figures of our Treas
ury Department show that if we
confiscated all incomes in excess
of $4,000 a year, it would not be
enough to pay for the cost OF our
Federal Government!
Do not think that we have been
getting something for nothing as
the result of the huge Government
The Washington times., 1936-08-27
Use Common Sense

1t watches every dollar it spends
to be sure that it is used in the
way which will do the most good.
It borrows no more than is abso-
lutely necessary, for it knows that
if we exhaust our borrowing ca
pacity today, our children will be
helpless should they be called on
to face an emergency.
In my judgment these are the
common sense principles that our
Federal Government should fol
low. Unfortunately they are not
the principles which have been
followed by the present Admins
tration.
In spite of repeated assurance
about a balanced budget-in Oc-
tober, 1882; after the banking holi-
day in 1888; in January, 1894; in
The Washington times., 1936-08-27

invisible tax arm of government
reaching out and taking a part of
the money we spend. This has
been a growing tendency of gov
ernment in recent years.
Most of these taxes. it is true,
are hidden so deeply that we can
not see them, but the taxes are
there just as truly as they are in
the sales tax on gasoline. They
cost just as much, and are just as
real, as they would be if they were
taken right out of our pay envel-
opeS. These hidden taXes-Fed-
eral, State and local-amount to
about 20 cents out of every dollar
we spend. In the case of the Fed
eral cover 1T alone they
amount to over IS month for
every family.
1t is in this way that the Gov
ernment's financial policies affect
us as individuals. The more the
Government wastes, the more
money it has to take from us. The
more it takes from us the less food
and clothing we can buy for our
selves, the less we have for the
education of our children and the
less we have left to set aside for
m ting emergencies the
building of homes, for improve
ment of farms, for the construc.
ton of factories. In short, every
dollar that the Government takes
from us in taxes means just one
dollar less for uS-a dollar that
we might use to buy things, the
production of which would create
jobs.
There Is no better illustration
of all this than the so-called sur
plus tax bill jammed through Con-
greSS this spring.