The Bismarck Tribune Newspaper, January 17, 1936, Page 8

« ~ PORMER PRESIDENT : | ae | processing tax levied to support this # ; Program bore most heavily upon the : Tt wi | 15,000,000 workers’ TO GUT PRODUCTION Prefers Direct Subsidy to Pro-) tect Soil Resources, Stim- ulate New Crops ' SCORES ‘PLAN OF SCARCITY’ ome patent, seeaicmner nce, eon Asserts Open Mind Necessary to Find Solution of Agricul- tural Problem Lincoin, Neb., Jan. 17.—The text of ‘the address delivered by Former Presi- | dent Herbert Hoover here Thursday night follows: I have recently debated various realities of the New Deal at Oakland, New York, and St. Louis. I propose lore it further, particularly its agricultural policies and their ef-| fect on the whole people. The New Deal has developed a new ‘technique in debate. They set up a! glorious ideal to which we all agree ‘unanimously. Then they drive some- where else or into the ditch, When we protest they bl guard us for opposing the glorious ideal. And they announce that all protestors are the tools of Satan or Wall Street. ‘When we summon common sense and facts they weep aloud over their | martyrdom for ihe ideal. The New Deal explanations on! their agricultural policies exceed thirty million words. You will not expect; me to turn the light into every | dark corner in thirty minutes. Some } of the rugged prima donnas who have directed these policies have resigned | and said worse things than I would say. One quality of the old | gulated Individualists was team} IW Right at the outset let us get some | things perfectly clear. There is an| agricultural problem. It concerns the entire nation. It concerns the happiness of 7,000,000 hqmes. Our country will not have reached either full moral or economic stature until confidence and hope shine in these | homes. The problem is still unsolved. Aside from its flagrant flouting of the constitution the New Deal farm method had within it destruc- tion both to the farmers and to the nation. A new program is necessary. it is now in the making. The nation has a right to insist that it must be effective and it must be based upon sound principles, I shall debate the subject in five directions, Part One will be the reasons why the farm question is of national inter- est. I hope this part will be emphatic. Part Two is a few words upon the cause of the farmers’ troubles. I hope this part will not wholly spoil the stock in trade of many politicians, for they have to live also, Part Three is what the New Deal is doing to the farmer as a citizen, along with all other citizens. These are , the things to avoid in the future. J hope this part will not be too sad. Part Four is what the New Deal ~ has done to the farmer in his farming . This is also sad. Part Five consists of some discus- sion of a new program, It may shock those who believe in doing nothing Zor human ills. It may shock those ‘who believe that all healing medicine * comes off the collectivist brew. In all parts there are remarks on ‘what the New Deal has been doing to the whole structure of human jiberty and American institutions in the guise of farm relief. Each part has unpleasant features to somebody. However, my position as such that approval by politicians and many others who live by the sweat of the farmers’ brows is im- material. If this country is to be Baved as @ decent place for the farm- ers’ children and all our children ‘to live in ordered liberty and faith of + the future, we have a lot of unpleasant ‘truth to face. In the long war for “vight thinking falsehood often wins the first battle. But truth always ‘wins the last—if the nation survives in the meantime. PART I * — President Roosevelt on December Bth at Chicago, properly stated one ; weason why the plight of the farmer fs an issue which concerns all of the American people. He said, “Farm “prosperity cannot exist without city ‘prosperity, and city prosperity can- ~ Mot exist without farm prosperit; « Every President since George Wash- Angton, every public man, every ecdnomist and every school-teacher thas said the same thing. It is vitally - true, even if it is not news. But the President omitted to state other rea- sons why his farm policies are an fissue vital to the whole American people. ‘The first is that the urgent need of / @arm relief has been used as a cover to impose the New Deal Philosophy ‘upon the American people. That is comprised of government by indi- viduals in place of a government of Jaws. It comprises goosestepping the people under this pinkish banner of Planned Economy. That was tried “under the NRA but the Supreme Court halted it early. It has had a Jonger march under the AAA. Step by step the New Deal agricultural Policies advanced from cajolery with @ gentle rain of checks to open coercion. Men who planted on their 5 own farms and sold in their own (2 way the product which God and © ‘their own labor gave them could have been sent to jail for doing just that. ‘That is not liberty. That is collec- tivism, The second reason the President did not state was that those ideas of production ‘ control revolve upon ‘Planned scarcity instead of the plenty ‘upon which America alone has made Progress. To stop the production of 50,000,000 fertile acres is not prog- fess. That also concerns the whole oti Civilization has made prog- solely through producing more ‘nd more of varied things. The whole | Mistory of humanity has been a strug- z ‘against famine and want. Within 1 by the croation of a system at least can produce a plenty .for & reasonable living, for all of us. lis longer drawn out. THE BISMARCK TRIBUNE. FRIDAY, JANUARY 17, 1986 : |We have not solved the problem of j its distribution, but in this plan of scarcity we are surrendering the very foundations of human hope. The third reason was that the hom« an undeserved burden es, to those women struggling to free their men and their children. But the worst of that scheme was that it set boiling the witches’ cauldron of class conflict of town against the farmers. This tax should never be revived. PART II The causes of the farmer’s troubles must be honestly faced if we are to no diagnosis except decision that the | Patient is in pain, The difficulties of our agriculture came mainly from the war ‘and its jhectic aftermaths. Wars always do |that to the farmer, Demoralization lasted 20 years after the Napoleonic ; Wars and a dozen years after our own Civil War. I am glad that the president at last admits that the war had something to do with the farm depression. At Chi- cago, on December 9, 1935, he says, in referring to farm prosperity in the period before the war: “They were the last years before the world-wide dis- turbance, caused by the World War. took place in our economic life.” I had been told so often by the New Deal that I did it that I had given up hope of salvation. I feel better. The dislocation of wars and slumps hits the farmer harder than any other group. Farm prices are more sensitive to these shocks than wages and in- dustrial prices, All parts of the econ- omic system inevitably come back into balance with time. But farm recovery That is the higher economics of it. The painful symptom of it appears in the farmer's pocket in the slump of purchasing power of his dollar. Many farmers cannot hold on against these delays in readjustment. I have held that we cannot see the capable and industrious driven from their homes during these periods if they want to make a fight for them. That is the humanity of it. There is at least one hopeful aspect allowed by the New Deal to come. When the world depression was turned, in June and July, 1932, agri- cultural prices rose in a start toward equality with industrial prices. The farmer’s dollar improved more than 20 per cent. Prices were moving into a natural relation again. Then came the era of the Great Fear. Fright over the coming of the New Deal skidded the country into the money and bank panic. The president said “the me- chanics of civilization have come to a dead stop.” Many a driver who has had a bad skid thinks that. Then be- gan the magic of the New Deal. And they repeated each mistake of the Farm Board and added a big idea. That big idea is that you can catch an economic force with a policeman, Incidentally the culmination of that era of Great Fear is the convenient starting point for all of the presi- dent's comparative statistics. He chooses the low point of quotation in- duced by their own actions, If he would go back a few months into 1932, before the Great Fear started, he would find the prices were 80 to 100 per cent higher than those he quotes. And even then they were only at the turning of the greatest de- pression in history. His quotations look like an effort to warm the na- tion over cold glass chunks in an il- luminated grate. PART III Things have been done to the farmer by the New Deal which do not relate alone to agriculture, Firstly, this torrent of wasteful Spending, unbalanced budget and debt will be paid by the farmer as well as all others. It will blight all his days with anxiety. The farmer pays for it not alone in direct taxes, but hidden taxes are wrapped in everything he buys. The farmer in fact pays in larger measure than any other group because he buys not alone for his family but also for his farm and is Jess able than any other production group to mark up the prices of his products and pass these taxes on to the consumer. Moreover, about one- quarter of the $14,000,000,000 of prob- able increased New Deal debt will rest on the farm as a super-mortgage. Blessed are the young, for they shall inherit the national debt. Secondly, the present policies of paying for the New Deal by credit in- flation produce stock booms that are @ great dole for the “money changers.” President Roosevelt, on July 24, 1933, stated that we cannot attain prosper- ity “in @ nation half-boom and half- broke.” The New Deal has attained just that. The half-boom is on in the Stock Exchange, the farmers are half broke—and the 20,000,000 on relief are fully broke. These credit booms add lit- tle to farm prices. When they crack they throw the farmer in the ditch. There is a thirdly, on currency pol- icies. There is a fourthly, on making the farmers pay for a large part of the Social Security Act and receiv- ing little benefits. There is a fifthly, on relief policies which make it im- Possible for farmers to get labor in the midst of unemployment. There-is @ sixthly and a seventhly, on some other white rabbits. All of them make farm thinking difficult and in- tense. I do not have the time to dis- cuss them all now. PART IV If we are now to deal competently with farm relief we must examine the experience with the New Deal farm measures. There are proved dangers which must be avoided. I jother words, what haye th 5 Deal principles done to the fa President Roosevelt on one occ: 1 sion said: “I like to think of the AAA ]not as a temporary means . . . put as an expression of principle.” From their practical works, irrespective of their words, the main principle is the economy of scarcity based on control of production enforced by telling the farmer what he can plant. The largest justification has been that it has raised prices. Prices have improved, I leave you four thoughts on that subject: First: The inflae tion of the dollar, the drought, and world recovery would have made hig! \* prices in any event. Second: The fas|that “if we abandon crop control Chicago Tribune is authority for the statement that the farmer's income from many uncontrolled commodities has been greater in proportion than from those which have had the at- tention of the New Deal. President Roosevelt on May 30, 1935, prophesied wheat will immediately drop to 36 cents a bushel and cotton to five cents @ pound.” He felt the same about there is in “immediately.” It is more ; than a week, Fourth: At the same {time another principle of the New Deal was to lift wages and industrial prices, The sum of these two prin- i ciples is that the farmer has less to sell and pays more for what he buys. Labor pays for it in increased cost of living. By this device we have got the Economic Dog running around in circles chasing his tail. ‘We may explore the effect of the Processing tax in case some one might suggest we try it again. In early 1933 President-elect Roosevelt expressed himself as horrified and directed the defeat of my proposal to the Democratic Congress to bal- ance the budget by a manufacturers’ sales tax of 2% per cent. My pro- posal exempted food and cheaper clothing. We did that in order that we should not impose the burden upon the poor. Yet, as President Roosevelt, he places a manufactur- ers’ sales tax of 25 per cent on pork, and 30 per cent on flour, both abs0d- lute essentials to the poor. That blow at the poor was no doubt soften- ed by calling it a “processing tax. The implication was that some wick- ed middie man would pay it. The housewife rebelled at this more abundant life. One result of it was that the consumption of food in 1935 fell below the worst year, 1932 by the product of over 15,000,000 acres. We may explore what these New Deal principles did to our export and import market. You will remember that 1932 was the year when “it could not be worse.” So we will take that worst year and compare it with the New Deal year in 1935. From that worst year exports of cotton have decreased 4,250,000 bales; our grain 93,000,000 bushels; our animal pro- ducts by 500,000,000 pounds. This is estimated to be the product of about hogs. I do not know how long a time! reduction of cotton by ten million acres is producing a hideous poverty is creating unemployment all the nation of some hundreds of thou- sands of agricultural laborers, rail< way men, and others who formerly lived by producing and handling the 20 million tons of agricultural pro- | ducts that could come from the acres forced to idleness. And above all other consequences, farmer under bureaucracy was the negation of the free American spirit. The system of scarcity was being ap- plied to human freedom, Does all this corroborate President Roosevelt's indication on December 9th at Chicago that agriculture is “making great strides” toward a “balance either within itself or with industry and business”? If so, it was @ juggler’s balance. Finally—Does anybody believe that this flimsy structure under agricul- ture, of regimenting men, of putting fertile acres out of action, of giving American markets to foreigners, and levying its cost on ‘the poor would not have fallen of its own weight, even without the supreme court, ‘ PART V ‘We may now explore some of the toads to relief. And every country, including our- selves, has adopted measure after measure to protect the farmer and to speed a return to stability. Other nations tried most of the New Deal measures before the New Deal was born. From all this experience we should by now have learned some lessons in what is harmful, what is futile, and what will help. We shall be less than intelligent, and we shall be heartless of the farmers’ problems if we do not distill from this wreckage of these experi- ments some lessons in truth. And there have been aids to recovery ex- tended to the farmer both at home and abroad which have been success- ful. The first group of these aids is: increased consumption of: food by res- toration of employment. come only with a balanced budget, stable currency and credit. Give the farmer our own home market. Adopt 20,000,000 acres. But, worse than of these war causes of the farmer’s| that, this greatest food-producing] ®8ain restore reasonable export mar- difficulties. They do not last forever.| country on earth has imported this|Kets. Out of this group of policies Many of our measures can be of|year about 100,000,000 bushels of| We cam restore demand to many mil- emergency character, Recovery will] grain 700,000,000 pounds of animal ons of fertile acres. 0 peer cure many difficulties—that is, if it is] products, and increased its imports| The second group of policies is: of vegetable oils to be used as sub- stitutes by another 700,000,000 pounds. It would take another probable 15, 000,000 acres to produce these im- ports. The secretary of agriculture says America must choose one of three courses in foreign trade. The three are various degrees of the theory of more industrial imports in order that the American farmer’ may sell more to foreign countries, But what he produced was a fourth choice; that is, to give the foreign farmer the American farmer's market. From all this decrease in home consumption and shift in foreign trade the farmer has lost the mar- ket for more acres than the whole New Deal curtailment of 50,000,000 fertile acres. Is that not the prin- ciple of the Economic Dog chasing his tail? On January 10 President Roosevelt declared himself in opposition to “shipping our soil fertility to foreign nations.” ‘The logical conclusion of all that is to stop exports altogether. There is a futility here somewhere. The idea is that we encourage im- Ports of industrial products and create unemployment at home. We are told we must do this in order that the farmer may export his products. Now we are told that it is not to our ad- vantage to export farm products at all, He overlooks the fact that we. can manufacture synthetic fertilizers to any amount necessary to cover ex- Port of “soil fertility.” In May, 1932, when I vetoed a bill for reciprocal tariff treaties, I stated that most of such treaties would sa- crifice the American farmer, The New Deal method of testing poison is apparently to make the nation swallow it. By just these reciprocal treaties the American market is today being opened to farmers of -Cuba, Canada, Spain and Italy. Yet-under these principles farmers are told they must allow fertile acres to be idle because there is no market for their products. It is very confusing. The Economic Dog whirls even faster un- der this stimulus, We must explore as to where we get to when we start controlling crops, This principle of scarcity gets scarcer and scarcer. The moment one farm product was regimented, another j had to be mobilized to prevent the farmers’ energy from going into that. So we marched from seven controlled commodities in May, 1933 to five more in April, 1934, another in May, 1934, and finally we come to potatoes in 1935. Moreover, these measures are moving steadily to more and more | coercion and less rain of checks—as witness the Cotton and the Potato Acts. As I read further and further into the 6,250 verboten words of the Potato law, I realized that one of the impulses to cheerfulness was about to be mashed out of American life. The potato had yielded not ‘only food, but it had radiated humor to our daily conversation. It was once the hap- piest of all the vegetables. Its life would have been saddened by the bootlegger, the passive resister, and the federal inspectors, Confined to a package by law, its eyes would have been dimmed by the alphabetical rev- enue stamps it must bear. One of the assured principles of New Deal farming is politics, One would think in the thunders of ideal- ism that have accompanied Planned Agriculture it would be clean of poli- tics. I have but one comment, That is to read two lines from a letter I hold written by a high officer in the AAA to a gentleman who spent his life in scientific work for the farmer and who was accepted for appoint- ment in that service. It says, “——it will be necessary (for you) to secure political clearance, which means a letter of approval from the Demo- cratic national committee in Califor- nia.” The department of agricul- ture was wholly under merit service before this sort of idealists got it. The execution of these principles required 120,000 part or full-time federal of- ficials, Their pay was assessed against such sane national policies as will retire submarginal lands where peo- ple cannot make a living. Do it in the more effective and humane way Proposed by. Secretary Hyde in 1932. Retard new reclamation projects until the land can be used. A third group of policies is: En- courage cooperative marketing and those marketing agreements which contribute to prevent gluts in the flow to markets. The farm credit machin- ery established by Republican admin- istrations and improved by the New Deal should be still further improved. But these measures this farm situation is now one where still further emergency measures pending economic recovery are neces- sary. They are doubly necessary as a new road must be built by which ag- riculture can get back on to solid ground from the quicksand of the New Deal. We shall need to open our minds to further experiment. | I suggest as one contribution to new methods that instead of trying to find @ balance to agriculture by paying the farmer to curtail a crop, we should en- deavor to expand another crop which can be marketed or which would im- upon employment, For instance the in the share croppers of the South, It! over the whole notion of regimenting the| That can! | | countries during this most fateful pe- riod of human history. I saw.as few men the backwash of war upon the common man of these countries. I saw at first hand revolution creeping in under promises of relief from, the agonies of war destruction. I have seen the insidious destruction of lib- erty by pyopaganda. I have seen suf- fering humanity sacrifice that liberty, the greatest of all human achieve- ments, for an illusion of security. The farmers of Russia supported the Bol- sheviki against the new-born democ- racy on the promise of the land. To- day they have the choice of Siberia or the collectivist farms. I have seen freedom, the most priceless heritage, torn from children that this genera- tion might escape its responsibilities. I wish to say to you unhesitatingly that our country has been following step by step the road through which these millions of people in foreign countries Jost their liberties. Our farmers have had that blessing of individual liberty in greater fullness in their lives than any other part of even our own peo- ple. It was the farmers who fired the first shot at Lexington. It must be the farmers of America who defend Prove the fertility of the soil. We im- Port vast quantities of vegetable oils, oy sugar and other commodities, There are industrial products that could be introduced by the American farmer. We need to replenish our soils with legumes and restore coverages. If we include this suggestion with the poli- cies I have already mentioned, which would recover our lost acres from for- eigners, we would be able to employ more than all the acres put out of ac- tion by the New Deal. We would re- verse this economy of scarcity to an economy of plenty. This question of sustained fertility and better land use was brought to the forefront’ by Former Governor Lowden in 1930. Nation-wide confer- ences under Secretary Hyde in 1932 further developed parts of this sub- Ject. The matter was still further ad- vanced by the Republican side in the campaign of that year. These ideas have been further contributed to by many thinking men since that time. In order to secure these objectives I believe we must be prepared to subsi- dize directly such special crops until agriculture has again been brought | into balance. At the end of such a) Toad we could hope for a balanced ag- riculture in full production and in- creased fertility in our soils, I am advised that it can be done} within the spirit as well as the letter of the constitution. Since this paragraph was written ing the debacle brought about by the New Deal. But if they are adopted it should be under certain fundamental safeguards, There should be no at- tempt to again impose New Deal ideas of controlling and regimenting the farmer or restricting production. He must be free of any restriction and control contracts. The farmer must be an entirely free man to use his own skill and judgment, The administra- tion of these methods should be handled by the land grant colleges in order to free agriculture of Politics and the vast-bureaucracy now loaded upon the farmer, This work should be coordinated by a non-political na: tional board. The cost should be borne by the general taxpayer and not load- ed upon the poorest of the country through some tax like the tax. Otherwise this method will again be @ subterfuge of pinkish national Planning under another alphabet, Somebody will shy at the blunt word “subsidy.” And, in fact, the American people have been going all around Robin Hood's barn, rather than use it. Over a century ago we began it in canals and turnpikes; since then we have kept it up. Rail- toads, highways, ships and aviation, and silver mines and land reclamation —agriculture—we usually do it under some Srey pane than subsidy. We had better begin to use straight words and we will act straight. A subsidy is a burden on the taxpayer, but it does not regiment or destroy the Initiative the farmers. This new breed of mid- dlemen every dey tried hard to bring agriculture into balance with poli- tics. We may explore the effect of this economy of scarcity and crop control| spent years in public service in many | ne or freedom of the receiver—it is to stimulate that. In conclusion may I offer a word of personal emotion. It les far be- yond the land of economics, I have that heritage. I ask you to stop, look, listen. Stavisky’s Widow Is Acquitted of Frauds Paris, Jan. 17.—(?)—France’s great Stavisky scandal closed Friday with conviction of only nine of the 20 de- fendants accused of complicity in the vast swindles which resulted in riot- ing in the streets of Paris and over- throw to a French cabinet. Mme. Arlette Simon Stavisky, widow of the swindler, and 10 others of the 20 defendants were acquitted of the charges of complicity. in the $10,000,000 frauds. No direct descendants of George Washington are living. Magnus Johnson Candidate Again these ideas have been discussed in| Washington as a method of overcom.' Heraiding a bitter fight within Minnesota’s Farmer-Labor party. Magnus Johnson. ex-U. 8. ; sentative and senator, is showp bere as hie filed his candidacy for the party nomination for governor, He will oppose E&)- mer A. Benson, recently named U. 8. senator and said to be the choice of Gov Floyd B Olson to succeed Olson when the latter runs for the Senate next No- yember, ‘ Cheered by Governor’s Reprieve Mrs. Bruno Hauptmann and her son, Mannfred, were overjoyed Thursday when news came througk to them that their husband and father had been granted a 30-day reprieve and that legal processes probably would extend his life another 90 days at least. With them is the family pet. ARD OF DIRECTORS SEE PARTNERS SLAIN Argument Over Stock Transfer Ends in Murder and Suicide Milwaukee, Jan. 17—()—Associates of John E. Jambor, 53, manufacturing company official, described as groundiess Friday suspicions that prompted Jambor to kill his partner of 18 years and himself during a di- rectors’ meeting. Harry E. Pressigner, 51 secretary of the Jambor Tool and Stamping com- pany, was shot to death by Jambor late Thursday in the climax of a busi- ness feud that had grown acute the last few days. After firing two shots into Press- inger’s head at the end of an argu- ment over a stock transfer, Jambor shot himself before stunned members of the board of directors could in- terfere. One of the witnesses of the shoot- ing; Max Litow, company counsel, said Jambor fancied Pressinger held more stock in the firm than he did, and that this feeling had developed into a strong enmity within the last ‘year. Litow said both men held equal amounts of stock and received iden- tical salaries, $1,000 a month, _ Slope News Sykeston—Peter Hagel, 77, longtime farmer, was buried here, - Last of Hereditary _ Indian Chiefs Dies Elbowoods, N. D. Jan. 17.—The last, of the hereditary chiefs of the Man- dan Indian tribe is dead. Chief Sitting Crow, believed to have heen close to 80 years old, died here recently and was buried at the Man- dan Indian cemetery near Red Butte, north of Golden Valley. Sitting Crow, who was head of his tribe when the first white settlers began locating in this territory, was @ constant friend of those early pioneers. In the fall of 1892 when the news was telegraphed around that a tribe to the south had gone on the warpath, | Sitting Crow and the Mandan Indians | hurried back from a hunting expedi- tion to give the “whites” his assist- ance, He was present during the con- struction of Fort Sauerkraut. Last year, speaking at the Hebron 50th anniversary celebration, he said, that he was proud to say that neither his nor the hands of his tribesmen had ever been stained with the blood of the white man. New York Strangler Dies in Electric Chair Ossining, N. Y., Jan. 17.—(7)—The state has exacted the extreme pen- alt for the slaying of 10-year-old Grace Budd. Albert H. Fish, 66, who said his “lust for blood” led him to strangle the girl and dismember her body nearly eight years ago, was put to death Thursday night in the elec- tric chair at Sing Sing prison. Battle Against U.S. - | Land Owning Starts Washington, Jan. 17.—(7)—A fight against federal ownership of public lands was under wa in congress Fri- day through two bills which would return the public domain to 13 west- ern states. The new moves represent long efforts of western congressmen to give states complete ownership and control of unappropriated and unre- served public lands. Revenue Freight Car Loadings Stepped Up Washington, Jan. 17.—(7)—The As- | sociation of American Railroads re- ported Friday loadings of revenue freight for the week ended Jan. 11 were: 615,028 cars, an increase of 73,- 044 over the week, an in- crease of 61,510 over the correspond- 57,762 over 1934. French Threaten to Poe eve to SES and an tnesehen ot | Regent—A homesteader here, Wil- liam H, “Cap” Haskins, 77, died. New Salem — Resident here more than 50 years, Mrs. August Bock, 65, died. Bowman — Mrs. Carl Anderson, postmistress, reports stamps sales for 1935 show a $193.12 loss compared to 1934, Stanton—Rev. F. J. Geske, for seven years pastor of the Kronthal Lutheran church here, died recently in Minneapolis, Bowman—Gilmer O. Wangberg, son of Rev. and Mrs. J. O. Wangberg, has been ordained and installed as pastor of the Lutheran church at Briceylu, Minn, Golden Valley—Bertha Ellwein, 19, died recently at the Mayo clinic. “She was laid to rest beside two brothers who drowned in Otter creek a few years ago. McClusky — Delinquent taxpayers rushed $10,271.11 into the Sheridan county auditor's office here the last four days of 1935. Collections boosted the total for the year to $146,583.57, County Treasurer Charles G. Neff reports. > Steele—A pure water flow of 120 gallons a minute has been struck at a depth of 140 feet here, Peter Dalen- berg, well driller, reports. It will be piped and turned into the city water system, Braddock —A World War veteran, Homer H. Lamm, 39, died in a federal hospital at Hot Springs, 8. D. Pall- bearers at the funeral here were Leon V. Lesher, Henry Zottnick, Richard Sautter, Sam 8. Tracy, Arthur R. Button and Carl Hanson. Linton — Officers and members of the new Omio 4-H Clothing club are Mary Sandwick, president; Esther Wohl, vice president; Ella Wohl, sec- retary; Mrs. Rose Maurer, local lead- er; Odeal Wohl, Amande Heyne, Louise Hoff, Albine Hoff, Thelma Sandwick, members. ——— ELKS FIGHT PARTY! Hear Louis- Retzlaff broadcast at your Elks Club during regular meeting at 8:30 o’clock tonight. Also see hunting and fishing pictures. Luneh and refresh- asec | He Bossed Hitler ' | Reinforce Frontier Paris, Jan. 17—(#)—Sources close to the French foreign office said Fri- day Premier iPerre Laval had told Great Britain that any marching of German soldiers into the demilitarized Rhineland would mean immediate re- inforcement of French frontier troops. FIRE LOSS IS $25,000 Detroit Lakes, Minn., Jan. 17.—(7) —Ofticials of the Wilcox Lumber company here Friday estimated dam- ages to their Mahnomen, Minn., yard caused by fire yesterday totalled $25,000. : BAUMANN APPOINTED fashington, Jan. 17.—(?)—Post- master General Farley announced Friday appointment of Albert H. Baumann, Westhope, N. D., acting | postmaster. VOTE TO ADJOURN | St. Paul, Jan. 17.—(®)—The Minne- | | sota house of representatives Friday voted, 91 to 12, to adjourn the current special legislative session at noon next Wednesday. ‘The former kaiser became emperor of Germany at the age of 29. | Peter Yust (above), Madison, Owl tailor, was Adolph Hitler's for eight weeks during the Id war, when Yust was a ser- geant-major in the Hungarian army and had charge: arian com- pany of Infantrymen, which Der Fuehrer ‘vas a member He says he would not trade placer with the German dictator now. (Associated Press Photo) Compensation and Hail Insur- ance Department Employes Required to Pay Employes of at least one depart- ment and perhaps a second Friday were contemplating a restraining action against the federal government to determine whether they are liable for payment of federal income taxes. J. E. Pfeifer, secretary of the Work- men’s Compensation Bureau, said em. Ployes n that department had con- ferred with J. K. Murray, Mott, at- torney, concerning possibility of such an_action. Pfeifer said the action was contem- Plated after the bureau had been no- tified by H. H. Perry, collector of in- ternal revenue at Fargo, that em- Ployes of the Workmen’s Compen- sation Bureau were not exempt as state employes from payment of fed- able for the tax. Perry also notified the state hail ins surance department that its employes did not come under the similar ex- emption, and that they would be lt- able for the tax. Plan Injunction Request Although Pfeifer said his depart- ment would move to seek a restrain- ing action, to determine status of the department employes with relation to the federal tax, the state hail in- surance department employes had not determined whether they would join in similar action. Lars Siljan, manager of the state hail insurance department, looked with disfavor on such a move, although Pfeifer emphasized it was “no at- tempt to evade the tax,,but simply to determine the stafus of the depart- ment.” In a ruling from the internal revenue offices at Washington, received by both Pfeifer and the state hail insur- ance department, it was held the hail insurance department employes and workmen's compensation department employes were not exempt as from Payment of the tax on taxable in- comes, as workers for “agencies which are of a governmental character.” Cites Court Ruling In his letter to the state hail in- surance department, Perry quoted an internal revenue department policy, based on a court decision, determin- ing: “... the immunity of states from federal taxation is limited to those agencies which are of a governmental character, whenever a state engages in @ business of a private nature it exercises non-governmental functions and the business, though conducted by the state, is not immune from the ex- ercise of the power of taxation which the constitution vests in congress.” “It is held ... the activities of the hail insurance department of the state of North Dakota are undertaken by the state in its proprietary capa- city and does not constitute the ex- ercise of an essential governmental function, The income of employes connected with that activity must, therefore, be included in gross income for federal income tax purposes.” A similar ruling was expressed to the workmen's compensation depart- ment. ‘The opinion was expressed the two departments might seek relief from the tax on the grounds their salaries and expenses were paid only after check by the state board of audits, whereas other institutions, like the Bank of North Daokta and state mili and elevator, did not submit to check by the state board of audits, but were operated as independent units, Liquor Store Raiders Wound Night Guard Jasper, Minn., Jan. 17.—(4)—Burg- lars who broke into the municipal liquor store here about 2:30 a, m. shot and critically wounded Chris Larson, night watchman, when the officer surprised them. The burglars escaped. MEDICATED WITH INGREDIENTS OF Vicks VapoRus Modern successor te old-fashioned cough syrups ...more cone venient less exe pensive...lingers fonger in the throat. Wanted JACKRABBITS, RABBIT SKINS and FURS Prices Higher This Year Be sure and bring or ship us all jack rabbits, rabbit skins furs. We pay highest mar- prices, Beef and horsehide prices are exceptionally high, at least twice as high as last year at this time Bring us all articles listed above with your metal, “Northern” Hide & Fur Co. Brick Bldg. Corner 9th & Front Bismarck, your and ket - q Hoover Flays Roosevelt Farm Program in Speech at Lincoln ° ' Bureau to Fight Paying Federal Income Taxes