The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1937-03-25
VOLUME SEVENTY-NUMBER FORTY-THREE
KmMts0m Asks: "Where Is
Money Coming From?
Minnesota Delegation Pleads
For Federal Aid In
State Crisis

Last week the Minnesota delega-
ton met with a group from Mime
sofa, headed by State Senators
Henry Steining, of Moorhead, and
Gerald Mullin, of Minneapolis, who
were accompanied by the mayors
Of Minneapolis and st. Paul and
Representatives Carl J. Eastwood,
Ortonville, and A. d. Crissey, Nor
ris.
They told us about relief cris-
is in Minnesota and of another
dangerous situation taxation.
They estimated $17,OOOOOO would
be needed for the next two years
for relief and stated they can
find no way to raise the money.
The state legislature now has
various tax bills before 1t that pro-
badly will raise $15,OO0,O0 but all
that money will be needed for gov
ernmental expenses, we were in
formed.
This amount will be raised, they
expect, by increasing the money
and credits tax from three to five
mills; imposing higher income, in
heritance and chain store taxes;
levying a tax on sleeping cars,
higher rates on royalty and occu-
pational taxes for iron ore; tax
on all public utilities; increasing
the telephone and telegraph gross
earnings tax from to per cent
and proposing a constitutional
amendment that would boost the
railroad gross earnings tax. In adj
dition, there Is plan to levy a tax
on gifts.
AN these taxes, in addition to
the real estate taxes and all the
federal taxes, will take Ninety
Per Cent of a corporations income
each year in some cases, the state
legislators told us. If that Is true
how long will we have any bust
ness companies left in Minnesota?
II they move to other states will we
not have more unemployed people
looking for work and won't we
have to take care Of them on re-
lief2
It seems to me that bad as our
relief situation is now 1t would be
considerably worse if excessive
taxation drives industry and bus
mess out of the state. Needy per-
sons must be taken care of but
Minnesota already has pledged its
income for the next four or five
years and the state debt is now
about $150,O00,O00! Instead Of get
ting smaller it steadily grows larg-
err.
We were told that the legislature
can't touch the money it receives
from the state income or liquor
taxes. The income tax money Is all
tied to the schools. The liquor tax
es are pledged for past relief bills.
We in Congress are asked to get
other Congressman to join with us
in appropriating enough money so
the WPA can continue to function
but on a larger scale. If this Is
done, it would allow more persons
to be put on WPA thus reducing
the relief expense Of Minnesota.
Unless the federal government
comes to Minnesota's aid the state,
the visitors told us, is facing
"bust-up." The legislature will not
increase the real estate taxes to
pay relief bills, we are told.
The drought in Minnesota and
surrounding states is partly the
cause of our big relief problem.
Twenty thousand farm families are
in dire need for help. All tod, there
is in Minnesota, L. p. zimmerman,
state relief head said, 1854 per-
sons now on relief who could work
if there were jobs for them. Right
now there are $4,000 persons on re-
lief in the state and Mr.. thinner
man says there probably will be
1900 next month. 1t is costing
about 81, 1856 900 each month for re-
lief right now.
Mr.. Zimmerman estimates Min
nesota will need $44,O00OOO for re-
lief and social security old age as
sistance.
I am wondering where all this is
going to end. The load that we are
carrying is steadily becoming
heavier and sometimes think that
the only practical way out is to
wipe the entire slate clean and be-
gin all over again. That would be
drastic, I admit, but what is the
use Of running the lives Of several
generations of our people by COM
polling them to carry a load that
fear will ultimately break their
backs.