The Bismarck Tribune Newspaper, January 8, 1936, Page 7

the actual operation of the act. Threat jand destructive of the power to of loss, not hope of gain, is the es-|propriate for the public welfare, sence of economic coercion. Mem- bers of a long depressed industry pe Fe = rr re medal chasers. Thomas was the J. T. EB. Dinwiddie, member of the | Culture its just share of the American heavyweight. Louis then was a light- | extension division at the state agri-|@0llar. There is still due the some sides a left hook when I last boxed | : |North Dakota to fight for the liquida- . 7 processors to pay farmers for curbing! a substitute bill was advanced at a;,- Pleasing Motorists Who Take with tum. ‘He has everything now.” i Droduction. ‘Three judges, upholding | meeting of the Farmers Union group (tion of this government obligation but Things With Them dent grant of the power of the purse, {936 STUDEBAKERS ; Otis Thomas, who was on a Golden N T 1 N U E cern itself only with domestic con-jforeign markets left for agricultural Wallace Appeals heavyweight. i cultural colleges, Fargo, who has|Seven million dollars on past con- and its very nature, involving in its No fighter ever came to the front! aaa, said congress could tax and| Tuesday in Jamestown. iv is the duty and the interest of every j , Glove amateur team with Joe which. C 0 DB ees and let the world market to; commodities. : Met Polish boxers in Chicago shortly from page one ;care for itself. There would be no| “The Farmers Union of this state before the Detroit youngster quit the | provision for production control. has bent every effort to bring to agri- HAVE BiG CAPACITY For Every One to ; rated phieey 23 oa a | “I can’t begin to'tell you how much | Scan Both Opinions checked compliance with control con-/'racts to North Dakota farmers. It is Louis has improved,” —_ explains tracts under the AAA, said here Wed-| Seems to me that it is not alone the New Models Built With Idea of Thomas. “Joe didn't have much be- under which taxes were levied on/nesday that no recommendation for|Problem of farmer in the state of |quite as rapidly as Louis. [spend to relleve “a nationwide eco-| He said C. C. Talbott, Farmers) Citizen of the state. The Farmers | ETT STs iromic maladjustment.” | union president, had sent a letter to teary dae ape fet only so- C ONTINUE Di members of various county wheat and ce and counsel of other from page one ifst | The Studebakers of 1936 have| caused considerable comment among; local motorists due to the ingenious; manner in which body designers have | provided these automobiles with un- Welfare Board Seeks usually large luggage carrying ca- | Plan U.S. Will Okay pacity. 1 Watch Farm Reaction Eagerly, New Dealers watched the reaction in the farm areas. They found it mixed. For example, Edward A. O'Neal, president of the American Farm Bureau federation, said the de-| cision would plunge agriculture into groups, but we believe that, since we cannot maintain a fighting group in Washington without a considerable gE corn-hog production control associa-’ tions and to Farmers Union locals advising them that he and others} have been called to Washington and! asking their suggestions. The immediate aim, Talbott told! id expenditure of money, all groups should assist in this worth while bat- tle. It would be presumptuous on my baer subject to two guilding princi decision which “ought never to be absent from judicial consciousness One is that courts are concerned only with.the power to enact statutes, not with their Wisdom. ‘The other is that while unconstitutional ex- ercise of power by the executive and legislative branches of the govern- ment is subject to judicial restraint, the only check upon our own e: of power is our own sense of self- restraint. For the removal of unwise Jaws from the statute books appeal lies not to the courts but to the bal- Jot and to the process of democratic government. No Question of Power eee 2. The constitutional power of/|the congress to levy an excise tax upon the processing of agricultural prod- ucts is not questioned. The present Jevy is held invalid, not for any want of power in congress to lay such a tax to defray .public expen- ditures, including those for the gen- eral welfare, but because the use to which proceeds are put is disapproved. 3. As the present depressed state of agriculture is nation-wide in its extent and effects, there is no basis for saying that the expenditure of public money in aid of farmers is not within the specifically granted power of congress to levy taxes to “provide for the . . . general wel- fare.” The opinion of the court does not declare otherwise. 4. No question of a variable tax fixed from time to time by fiat of the secretary of agriculture, or of unauthorized delegation. of legisla- tive power, is now presented. The schedule of rates imposed by the secretary in accordance with the orig- inal command of congress has since been specifically adopted and con- firmed by act of » which has declared that it shall be the lawful tax Act of August 24, 1935. That is the tax which the government now seeks to collect. Any defects there may have been in the manner of laying the tax by the secretary have now been removed by the exercise of the power of congress to pass a cur- ative statute validating an intended, though defective, tax. United State: V. Heintzen & Co., 206 U. 8. 370; Gra- ham & Foster V. Goodcell, 282 U. 8. 409; C. F. Milliken V. United States, 283 U.S, 15. The Agricultural Adjust- ment act as thus amended declares that none of its provisions shall fail because others are, pronounced in- valid. Levy Uses Tax Power It is with these preliminary and hardly controverted matters in mind that we should direct our attention to the pivot on which the decision of the court is made to turn. It is that @ levy unquestionably within the tax- ing power of congress may be treated as invalid because it is a step in plan to regulate agricultural produc- tton and is thus a forbidden infringe- | ment of state power. The levy is not any the less an exercise of taxing power because it is intended to defray an expenditure for the general welfare rather than for some other support of government. Nor is the levy and collection of the tax pointed to as effecting the regulation. federal taxes inevitably have some influence on the internal economy of the states, it is not contended that the levy of a processing tax upon manufacturers using agricultural pro- ducts as raw material has any per- ceptible regulatory effect upon either their production or manufacture. The tax is unlike the penalties which were | held invalid in the child labor tax case, | 259 U. S. 20, in Hill vs. Wallace, 259 U. 8. 44, in Linder vs. United States, 268 N. 8. 5, 17, and in United States vs. Constantine, 11, 1935, because they were themselves the instruments of regulation by virtue of their .coercive effect on matters Jeft to the control of the states. Here regulation, if any there be, is accomplished not by the tax but by the method by which its pro- ceeds are expended, and would equally ; be accomplished by any like use of public funds, regardless of their source. ‘ The method may be simply stated. Out of the available fund payments are made to such farmers as are willing to curtail their productive acreage, who in fact do so and who! in advance have filed their writ- ten undertaking to do so with the secretary of agriculture. In saying that this method of spending public moneys is an invasion of the Teserved powers of the states, the court does not assert that the expenditure of public funds to promote the general } welfare is not a substantive power specifically delegated to the national government, as Hamilton and Story Pronounced it to be. It does not deny ‘that the expenditure of funds for the benefit of farmers and in aid of a Program of Curtailment of production of agricultural products, and thus of | While alt! decided December | cotton production attempted by agricultural adjustment act could not be secured without the coercive pro- visions of the Bankhead act. See hear- ing before committee on agriculture, U. 8. senate, on 8 1974, seventy-third congress, second session: hearing be- fore committee on agriculture, U. 8. house of representatives, on H. R. 8402, seventy-third congress, second session. The senate and house com- mittees so reported, senate report No. 283, seventy-third congress, second session, page 3: house report No. 867, 1934), P. 50, points out that the Bank- head act was passed in response to strong sentiment in favor of manda- tory production control “that would prevent non-cooperating farmers from increasing their own plantings in or- der to capitalize upon the price ad- vances that had resulted from the re- ductions made by the contract sign- ers.” The presumption of constitu- tionality of a statute is not to be over- turned by an assertion of its coercive effect which rests on nothing more substantial than groundless specula- tion. It is upon the contention that state power is infringed by purchased reg- ulation of agricultural production that chief reliance is placed. It is insisted that, while the constitution gives to congress in specific and unambiguous terms, the power to tax and spend, the ipower is subject to limitations which do-not find:their origin.in any express provision of the constitution and to which other expressly delegated pow- ers are not subject. Constitution Cited The constitution requires that pub- lic funds shall be spent for a defined purpose, the promotion of the general |welfare. Theit expenditure usually [involves payment on terms which will |insure use by the selected recipients within the limits of the constitutional purpose. Expenditures would fail of their purpose and thus lose their con- stitutional sanction if the terms of payment were not such that by their influence on the action of the recip- ients the permitted end would be at- jtained. The power of congress to spend is inseparable from persuasion jto action over which congress has no \legislative control. Congress may not {command that the science of agricul- ;ture be taught in state universities. ; But if it would aid the teaching of ;that science by grants to state institu- tions, it is appropriate, if not neces: sary, that the grant be on the condi- tion, incorporated in the Morrill act, 12 stat. 503, 26 stat. 417, that it be used for the intended purpose. Similarly it would seem to be compliance with the constitution, not violation of it, for the government to take and the uni- versity to give a contract that the grant would be so used. If difference that there is a do an act which the condition is culated to induce. promise are alike valid since both in furtherance of the national These effects upon individual action, which are but incidents of the author- | ized expenditure of government money, are pronounced to be. them- selves a limitation upon the granted power, and so the time-honored prin- ciple of constitutional interpretation te, j Which are plainly adapted to that end, | Which are not lbited, but consist of the con- ® supposedly ‘better ordered national | eral economy, is within the specifically | granted power. But it is declared that state power is nevertheless infringed by the expenditure of the proceeds of the tax to compensate farmers for the curtailment of their cotton acreage. | because Although the farmer is placed un-| der no legal compulsion to reduce acreage, it is said that the mere offer of compensation for so doing is a species of economic coercion » tailment were made mandatory by act of congress. In any eyent it is: * insisted. that even though not coercive the expenditure of public funds to; and industries pro- | by raising or lowering tariffs. These results are said to be permissible Reams ier Et tociaate foe those who get it return, or even thelr famili Tt | Model 4s offered in a variety of lug- It may spend its money for the suppression of the boll weevil, but may not compensate the farmers for Suspending the growth of cotton in the infected areas. It may aid state reforestation and forest fire preven- tion agencies, 43 Stat. 653, but may not be permitted to supervise their conduct. It may support rural schools, 39 Stat. 929, 45 Stat. 1151, 48 State. ‘792, but may not condition its grant by the requirement that certain stan- dards be maintained. It may appro- Priate moneys to be expended by the Réconstruction Finance corporation “to aid in financing agriculture, com- merce and industry,” and to facilitate “the exportation of agricultural and other products.” Do all its activities collapse because, in order to effect the permissible purpose, in myriad ways the money is paid out upon terms and conditions which influence action of the recipients within the states, which congress cannot com- mand? The answer would seem plain. If the expenditure is for a national public purpose, that purpose will not be thwarted because payment is on condition ‘on will advance that purpose. ie action which congress induces by payments of money to Promote the general welfare, but which it does not command or coerce, 4s but an incident to a specifically granted power, but a permissable means to a legitimate end. If ap- Propriation in aid of 2 program of curtailment of agricultural production is constitutional, and it is not denied that it is, payment to farmers on Condition that they reduce their crop acreage is constitutional. It is not any the less so because the farmer at his own option promises to fulfill the condition, of Purse’ ‘Power That the governmental power of the purse is a great one is not now for the first time announced. Every student of the history of government and economics is aware of its mag- nitude and of its existence in every civilised government. Both were well understood by the framers of the constitution when they sanctioned the grant of the spending power to the federal government, and both were recognized by Hamilton and Story, whose views of the spending power as standing on a parity with the other Powers specifically granted, have hitherto been generally accepted, The suggestion that it must now be curtailed by judicial fiat because it may be abused by unwise use hard- jy rises to the dignity of argument. So may judicial power be abused. destroy.” but we do not, for that rea- son, doubt its existence, or hold that its efficacy is to be restricted by its incidental or collateral effects upon the states. See Veazie bank v. Fenno. 8 Wall., 553; McCray v. United States, 195; U. 8. v. Hamilton, 292, U. 8. 40. The power to tax and spend is not without con- pga restraints, One restriction the purpose may be truly na- tional. Another is that it may not be used to coerce action left to state control. Another is the consciénce and patriotism of congress and the executive. “It must be remembered that legislators are the ultimate guardians of the liberties and welfare of the people in quite as great a de- gree as the courts.” Justice Holmes in ‘Missouri, stitution is not to be justified by re- course to extreme examples of reck- less congressional spending which might oceur if courts national purpose, would be possible only by action of a legislature lost to all sense of public responsibility. Such suppositions must leave unmoved any but the mind accustomed to believe that it is the business of the courts to sit in judgment on the wisdom of may falter or be mistaken ‘performance of their constitu- utions is the exclusive con- cern of any one of the three branches The longest elephant. tusk on record measured 11 feet 5% inches. “The power to tax is the power to . | like I hunt. .| hit solidly in recent fights. He has A striking example of this is ex-) hibited at’ the showroom of Wilde Motors, Inc., 304 Fourth St.,. local Studebaker dealers, where a new Stu- debaker Dictator St. Regis cruising sedan is displayed. Every model*in each of the new lines of Studebakers, the Dictators and the Presidents, has been built with an idea of pleasing motorists | who like to go places and take things/ with them, whether the loads be per- sonal or “freight,” according to A. C.| Wilde. Not only is that true, but each gage compartment arrangements large enough to cover any whim or desire a motorist may have. For example, the Dictator St. Regis! sedan is offered in what is called the “custom” model, the “crusing” model, or with one or two side mounts for spare tires. The “custom” model has an unusally large trunk built-in, that is, “blended in” with the smart con- tours of the car. And each of these two models may be had with either one or two fender well mountings for the extra tires. Without fender well mountings the spare tires are carried | on the floor of the luggage compart- ment. With fender well mountings the tire space is available for addi- tional luggage. A check of the cubic capacities of the various luggage compartments in- | dicates that Studebaker has provided more abundantly than most competi- | tive cars. In “custom” sedans, the convenient shelf-type trunk gives 10‘ cubic feet of carrying capacity. “Crusing” sedans have 13 cubic feet of capacity. And when the tires are removed from the luggage compart- ment of “cruising” sedans and placed C ONTINUE Promising Retzlaff in fender wells ,there is a capacity of from page one Painless Operation 18% cubic feet. Brown Bomber thumped around a bit is soothing salve for bruises. Both Tried to Box Later, Retzlaff saw Louis knock out Lee Ramage in Los Angeles and Red Barry in San Francisco. Neither Ra- mage nor Barry did any real hitting. Both tried to box Louis. Wiater pitched and landed and at times Louis was not 8 aggressive as he was before or_has been since. And Wiater is not a hard or knockout type of puncher. Retzlaff is a bruising hitter with a cutting right hand. He has been belt- ed out a couple of times, but no one} ever accused him of folding up. Jim- my Braddock will attest to the fact that Retzlaff can punch a bit, for the champion dropped a 10-round decision to Charley in 1932 before going on re- Uef rolls. | Record Impressive Retzlaff's record for the past two years is about as impressive as a big} boy can compile in these times. Charley | went through 1934 and 1935 unbeaten. In 1934, he knocked out Ace Williams, Roy. Ace Clark, Tim Charles, and Frankie Edgren, and won a 10-round eward from Johnny Risko. i Retzlaff opened 1935 by knocking | out Jack Roper in. four rounds and| Leonard Dixon in three. The rustic fighter's dynamite pounded Art Lasky out of the limelight entirely in} nine heats, and Al Ettore back to the | bottom of the ladder in two, Charley | beat Ford Smith in his last start. | Lasky twice failed to go the limit with the Dakotan. Retzlaff knows his way around. He, has benefited by the assistance of | some of the ablest tutors of St. Paul, the city that turned out the Gib- bonses, Billy Miske, Mike O’Dowd,) Jock Malone, Billy DeFoe, and other | fistic greats. \ Boxing Is Suicide Here are the condemned man’s last words: “I am going to fight Louis I am going out and try to bring him down. Boxing him is suicide, Louis can box and hit, but I figure he can be hurt. Backing and covering up and letting Louis set his own pace will not beat him. | “I know the cdds are all against me, but the point is that there are odds. Make it 1000-to-1 if you want |to, Just the same I always have that one—and here it is.” He raised a clenched right fist. 1 “I am hitting fully as hard, if not harder, than ever. Louis has not been had things entirely his own way. I m going to let the old right go, and, |if.{¢ connects, Louls may go down just as did Ettore, Lasky, Tom Heeney, and many more.” ; On Threshold Before | Retzlaff has been in the thick of things since 1929. Jack Hurley, who | managed Billy. Petrolle, brought Charley along easily, and had him in; position to go somewhere when Isa- | dore Gastanaga tagged him in the first round at the old Queensboro Stadium, Long Island City, in the summer of 1932. Hans Birkie beat | him and King Levinsky starched him in a round in 1933. Then the German-American seem- | ed to find himself again. Retzlaff’s return to top form is at-/ tributed to new. interest in his 2000- acre homestead near Leonard, and his family, which now includes a bounc- ing heir. | Right now Retzlaff is talking of- fensively. It remains to be seen if his ideas and plans change between today and along about 10 o'clock on; j the night of Jan. 17. The ideas and plans of most fighters do change when they stand in a corner and eye Louis, the fastest hitting heavyweight of his time—perhaps of all time. Only Worry Is Dentist As for Louis, his only worry right now is a dentist, Dr. John A. Feaman. “He sure gave me blazes for a few | seconds the other day,” says Joe. “Boy, | he had me sweatin’ for a minute. I'd, rathers fight a roomful of Baers and Retzlaffs than sit in that chair for 10 minutes, but I got to get my teeth fixed, so I guess I'll have to take it.” | One of Louis’ sparring partners is | |@ maximum yearly payment of $150 to an allotment to cover half its needs be formed under the 1935 legislative act, creating the welfare board as an agency of the state and federal gov- ernment for handling of funds from both sources for old age assistance, among other duties. The 1935 law did not repeal the 1933 statute. which placed control of | the old age pension fund in the hands | of the commissioner of agriculture! and labor. ! Theodore Martell, present commis- | sioner, has been working with the! welfare board in formation of a| workable, acceptable plan, Willson said. One of the snags struck in formu- lating a pian to tie in with the na- tional program has been the small amount of money made available to old age pension applicants in the state under the 1933 law. That law, still operative, provides for @ one-tenth of a mill levy, as the source of funds for old age pensioners. Las} July payments to approximate- ly 5,000 pensioners certified to the de- partment averaged from $8 to $10 per Person for a six months period. 9,000 Now on Rolls The list now is swelled to approx- imately 9,000 persons, with only $14,000 remaining in the fund, depart- ment attaches said. ! As & consequence, and pending final acceptance of any state plan by the national board, all payments of old age pensions by the department are being held up. Willson said original, tentative plans for raising the individual amount to each pensioner through a scheme of including county poor relief payments to the person as part of his old age assistance had been found “not ac- ceptable.” The pension “will have to be hand- led by the state welfare board strictly as a state pension,” Wilson said. Maximum Never Paid Although the 1933 law provides for pensioners, it has never approached that amount, because of insufficient income from the levy. With approval by the national board of any plan formed by the state welfare board, the state would receive for old age pensions, the remainder to be furnished by the state, Willson said. Tentatively, Willson said it was hoped to be able to work out a pro- gram by which counties would con- tribute monies toward a general state fund, out of which pensions would be paid, although this was still to be de- termined by the state board. “ruinous conditions” unless a quick remedy were found, but Charles W. Burkett, vice president of the Farmers Independence council, a minor organ- ization, hailed the decision as a blow to “bureaucracy and regimentation.” Purther expressions of opinion are awaited at a meeting of 70 farm lead- ers, to be convened here Thursday by Secretary Wallace to discuss new ag- ricultural plans. The whole AAA remained paralyzed. First definite indications of disinte- gration of its personnel machine came Wednésday in guarded hints from some officials that 1,000 to 1,500 em- ployes may be dropped within a few days. The total of AAA workers is approximately 6,500. See Stop-Gap Proposal Observers believed the administra- tion was nearing some decision on at least a stop-gap proposal. AAA offi- cials were reported to be giving in- creased consideration to a domestic allotment plan. Under it quotas would be assigned each farm. The quotas would represent the farm’s pro rata share of the amount of wheat, corn, cotton or other major crop believed necessary for domestic consumption. An excise tax—similar in form and’ rate to the processing tax—then might be enacted as a revenue measure. However, several high officials, in- cluding Secretary Wallace and AAA Administrator Chester C. Davis, have opposed such a plan without produc- tion control. A new proposal was being consider- ed—the organization of Commodity Producers’ Cooperative associations for voluntary: production control. CONTINUED A from page one: Midwest Farmers, them, will be to induce the govern- ment to pay the $7,000,000 still due North Dakotans on existing con- tracts. Agree Control Needed Dinwiddie said everyone present agreed that some form of control or assistance to agriculture is necessary to maintain good farm conditions. W. J. Maddock, one of four North Dakotans called to the Washington conference, left for the national cap- {itol at noon Wednesday. All northwest farm leaders quickly accepted Secretary Wallace's invita- tion to come to Washington for a con- ference. D. L. O'Connor of New Rockford, N. D., and St. Paul, president of the Farmers Union Terminal association, expressed on behalf of the associa- tion’s delegation of six the hope that @ way would be found to meet the situation. : Meanwhile, markets were not great- ly affected by the ruling. Raw cotton and sugar dropped because the gen- eral feeling was that they had lost important supports, according to an Associated Press dispatch. Hogs rose about $1 per 100 pounds as the pack- ers passed back to the farmer a part of the money they have been collect- ing as a processing tax. Other staples were indifferent. Will Affect All N. D. “The loss of $7,000,000 on existing contracts would affect all industry and interests in North Dakota,” said Talbott, at the Jamestown confer- ence. “The Farmers Union expects to maintain a group in Washington un- til agricultural legislation is enacted to remedy this dire situation. We feel that every citizen should be glad to contribute to the maintenance of such a group and such contributions Calm During Crisis, {may be sent to the Farmers Union Seek New Measure the farm population which had op- posed the AAA from the beginning. Their opposition to the AAA began when Milo Reno, chief holiday agi- tator, failed to receive appointment as secretary of agriculture in President Roosevelt's cabinet. Favors Price Fixing One of the cries raised was for a cost-of-production system and price- fixing. Its chief advocate is John Bosch, head of the Minnesota Holi- day association. - He would fix legal rates for farm commodities, just as public utility rates are fixed, on the] without any method of control in this basis of periodic reports of costs at| country would spell ruin to all classes the farm. His program would con-]| of agriculture, because we have no headquarters in Jamestown.” In a formal statement issued Wed- nesday, Talbott said: “The decision of the United States supreme court, handed down on the sixth, declaring the AAA unconstitutional, is a death blow to agriculture unless some other method can be found to make agri- cultural protection practical. Agri- Jculture in smerica cannot maintain an American standard of living in competition with agricultural com- modities from countries that have a lower standard of living and a lower wage scale. Fears Bumper Crop “In my judgment, one bumper crop bart to make any advance statement as to the methods for accomplishing the ends we seek in advance of the conference called by Secretary Wal- (lacs for Friday and Saturday of this \ week.” | i * Alaskan Fliers Hunt | For Missing Aviator |. Fairbanks, Alaska, Jan, 8.—(P)-—- Alaskan fliers dared bitter weather | Wednesday in a hunt for Pilot Jack ;Herman and three passengers, five |days overdue on a flight from Akiak. |Two months ago, Herman and five | passengers were missing for a week jin the rugged country between here and Dawson before searchers found |them at Cassiar roadhouse. Some of |Herman’s segrchers expressed belief jhe again had been forced down, bu: j was safe in an isolated region. | ‘Producer From Now On, Fairbanks Says New York, Jan. 8.—(#)—Douglas Fairbanks, Sr., is through acting and has “nothing to say” about his re- ported romance with Lady Ashley of England. “I’m a producer from now on,” the | former “Don Juan” of the screen ex- ;Plained in announcing he will not act again. Arriving Tuesday night from Europe on the Aquitania, Fairbanks was asked about his marital plans. | “I have nothing to say about that,” he replied. . chest Just gub on “VICKS VapoRus a ACTS TWO WAYS AT ONCE “I put TERRAPLANE first because “Go ahead, kids . . . that car's got BRAKESI” 'O one needs to be reminded that safe driving in winter, more than at any other season, calls for a car that is safe. 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