Page Four THE PEOPLE’S VOICE December 28, 1956 1956-An Eventful Year SOCIAL SECURITY TAX COES UP JANUARY I How Sound Is the Boom? (Continued from Page One) feats to the much larger union which District Director of Internal Reve­ tical expediency was legislation pro­ headquarters in Pittsburgh. nue Thomas M. Robinson this week viding for additional federal aid to '•RIGHT-TO-WORK” BROUGHT reminded Montana employers that re­ Economists Take a look education, and legislation to safeguard UNITED EFFORT cent amendments have changed tax rates under the Federal Insurance Con­ the civil rights of millions of Ameri­ All Montana labor united as one From LABOR’S DAILY taxes has increased from $237.4 to tributions Act (Social Security) and cans, particularly om- large Negro late last spring when reactionary em­ How soundly based is this business $287 billion during the same period. filing requirements under the Federal minority. ployer groups attempted to put a “boom” we heard so much about dur­ Thus while personal income went up Unemployment Tax Act. A Presidential veto, because of ques­ fraudulently named “right to work” ing the recent campaign? about 21 per cent, corporate income tionable lobbying activities, of the no­ measure on the November ballot via New FICA rates on wages paid on No one is talking about a repetition went up almost 43 per cent—more than torious natural gas bill probably saved initiative. With much active support or after January 1, 1957 will be 2 Vi of the Great Depression of 1929. We double the rate of expansion in per­ gas consumers in excess of $600 million from Montana Farmers Union, labor per cent each for employers and em­ have a great many “built-in” stabilizers sonal spendable income. annually. Although expressing sym­ was successful in decisively defeating ployees. a total of 4y2 per cent, Mr. in our economy such as Social Secur­ Analyzing the distribution of per­ pathy with the gas industry’s desire the initiative bid with the measure Robinson said. ity, unemployment compensation, farm sonal income still further, w© find that to free itself of Federal Power Com­ receiving less than a fourth of the The changes in the Federal Unem­ price supports, a public works “shelf”, wage and salary earners—'the coun­ mission regulation, the President ve­ minimum number of signatures to gain ployment Tax Act, he explained, pro­ government lending and insuring try’s great consuming class—did not toed the bill because of what appeared a place on the ballot. vides that employers who had four or agencies whose job it is to see that fare as well as investors, much less to be attempts to buy Senators’ votes Increased political activity also more employees on at least one day we don’t have a repetition of the 1929 corporations. Thus investment income, including by lobbyists for oil-gas companies. marked the life of Montana’s organ­ of each 20 calendar weeks during 195*3 bank failures and mortgage foreclos­ personal interest and dividend re­ This legislation is slated for réintro­ ized workers in 1956. Of 13 state and will be required to file Form 940 by ures, and we have a huge defense ceipts, increased from $21.3 billion in duction in the up-coming 85th Con­ federal candidates endorsed by the January 31, 1957. The filing of Form budget pumping $40 billion a year 1952 to $30.1 billion in 1966. That is a gress. political arm of Montana AFD-CIO, the 940, Annual Federal Tax Return of into the economy, says the WASH­ rise of 41 per cent. Wages and salaries rail brotherhoods and Mine-Mill, nine Employers, was formerly required of INGTON WINDOW COLUMN of Pub­ paid out by private industry, on the were successful at the polls Novem­ employers who had eight or more em­ lic Affairs Institute. Agriculture other hand, increased from $152 billion ployees. At the same time, it is startling to Ezra Taft Benson and drought were ber 6. to $187 billion, or only 23 per cent over Recognition, for the first time, in Mr. Robinson said that copies of this note how economists seem drawn irre­ the two biggest headaches of Montana the same period. both party platforms of the need for return have been sent to most of the sistibly into making comparisons with farmers in 1956. Benson hit them all, A good case can be made that the enactment of Occupational Disease employers in this district. However, what happened in the 1920’s and what the drought only the counties of the balance between the two sectors, in­ legislation, was also another note­ he suggested that employers who have may be happening now. eastern third of the state. worthy event in the life of Montana not received this form by January 9, vestment and consumption, lias been The Presidential veto of the 90 per One point frequently stressed in out of line and will continue to be so labor. After more than 40 years of obtain copies from the Internal Reve­ cent price support bill, at the insis­ comparing the era ending in 1929 and seeking such legislation, success may nue office at Helena, Montana. as long as present tax policy is fol­ tence of his Secretary of Agriculture, 1953-56 is the- similarity of tax policy lowed. not be far off. goals. In both periods, Republican Ad­ assured Montana grain growers of a testing the accusations pointed at Already there are unmistakable continuation of the tightening cost- ministrations tailored tax cuts to as­ signs that consumption, which up to them by the commission. Suffice to sure plenty of funds for capital expan­ price squeeze, and is depriving main Montana Politics say, few- Montana people are taking now has been inflated by unprecedent­ street in much of Montana of millions sion, but attached relatively little im­ Although Montana liberals suffered their protests very seriously. For some ed installment buying, is beginning to of dollars in farm purchasing power portance to assuring that there would slow down. Since September retail a great defeat when Arnold Olsen strange reason Montana motorists be adequate purchasing power to buy each year. failed to win the Governorship and cannot understand why our gasoline sales have been sluggish. Most of the Montana farmers, making the best the goods that would be produced in Mary Condon failed of re-election, the prices are the highest in the nation, recent gains in production have gone of farm legislation remaining on the ever larger quantities. campaign these two fighters put up did and that, when Montana-refined gaso­ into inventory rather than consump­ books in spite of Benson’s efforts, TAX CUTS FOR BUSINESS bring the issues squarely home to the line is shipped outside the state for tion. Housing activity is slackening again voted to restrict their planted voters with the result the Democrats distribution it drops severel cents a Thus, tax cuts for business and up­ and with it sales of major household acreage and for marketing quotas, Li will have control of both houses of gallon in retail price. per bracket investors were justified by equipment. Farm machinery is in the ■ order to preserve some semblance of Legislature for the first time in IS both administrations more than twenty doldrums. Steel production is at a stable farm prices. VETO UPENDED A years. In addition, Condon and Olsen years apart on the grounds that the re­ seasonal peak mainly because the auto­ Retirement of Don W. Chapman as CONGRESSMAN did much to draw a very clear line of sulting investment would produce mobile industry is recovering from president of Montana Farmers Union, demarcation between Republicans and Yellowtail dam and the Presidential "new jobs”. In a sense, this has hap­ last year’s production cut-back that because of poor health, saw a gallant Democrats, on the basis of issues, thus veto were probably major contributing pened today. Business investment in cost 250,000 auto workers dearly. fighter for agriculture and liberal pro­ factors in the short-lived Congression­ giving new vitality to the two-party 1952 was $26.6 billion and for 1956 was Unless new car sales and holiday grams generally temporarily remove al career of Orvin B. Fjare. Eastern estimated at $35.3 billion—a one-third buying pick up inventories will get himself from Montana public affairs. system in Montana. Re-election of Lee Metcalf and elec­ Montana people realize that every de­ expansion in four years which is far top-heavy and production and jobs His successor, Leonard Kenfield, had tion of LeRoy Anderson to Congress lay in construction of this 200.000 kilo­ beyond the 12 to 15 per cent increase will be cut back. 10 years of experience in assisting give Montana the only solidly Demo­ watt power dam means that much in production of goods and services Further, there is a developing slack Chapman in the leadership of the cratic Congressional delegation from more delay in attracting additional in­ that might have been normally ex­ in public investment despite the new 15,000-family strong farm organization, any state outside the South. It is ex­ dustry to the district to provide jobs, pected. federal road program which will not before assuming the top MFU post. better business and a broadened tax pected that Senators Murray and This tremendous expansion, a capi­ get into full action for several years. * * ♦ base. They’ve seen the beneficial re­ / Mansfield and the two congressmen tal spending ‘‘boom’’ it has been right­ Hospitals, schools, public housing have will give much impetus to securing sults to northwestern Montana from ly called, has produced jobs for work­ been slowing down rather than keep­ Montana Labor Hungry Horse and they want similar passage and Presidential approval of ers in heavy Industry. It is largely re­ ing pace with our needs. Voters ap­ business - job - tax improvements in Several matters of great importance legislation to get construction of Yel­ sponsible for the inflationary forces proved over- $2 billion of new bond southeastern Montana. The key is de­ to organized labor in Montana trans­ lowtail dam underway. that have raised the cost of living to issues on election day. But tight money pired in the last 12 months. Most im­ velopment of Yellowtail’s power and an all-time high. conditions and high interest rates are Lou Boedecker’s untimely passing, portant of these being the merging irrigation potentials. Campaign orators pointed to these causing reductions in state and local on Christmas Day, took from the Dem­ of the AFL and CIO at a historic con­ new jobs and to this “boom” with con­ bond sales. ocrats one of their newly-elected state Another story that made news and vention late in April. While the merger sent shivers down the backs of rural siderable pride. But there is another MELLON TAX POLICIES is now an accepted fact, there is still officials, and also took the only man side to this picture that also must be electric people was Montana Power Most people now admit that the a veryr major segment of the Montana belonging to organized labor off the examined. Is our capacity to produce Company’s refusal to sell additional great big hole in our economy in 1929 labor movement unaffiliated. Until Railroad & Public Service Commis­ goods as a result of all this expansion publicly-produced power to a federal was due to the failure of buying power such time as Montana Mine-Mill is sion. getting out of balance with our capac­ preference customer, Park County to keep pace with our production pow­ accepted into the mainstream of labor, The internal upheavals in both par­ ity to buy? Are we building up a situa­ Electric of Livingston. If the power er. This was largely due to Andrew organized labor will not have as strong ties which marked their 1956 state tion that, despite our built-in protec­ company could get away with such a Mellon’s tax policies, the gist of which a voice in Montana affairs as is its due conventions resulted in the liberal tions, may have some resemblance to refusal in Livingston, REA people was that the economy performed at its as a major Montana population group. wing of the Democrats selecting the 1929? Some economists, particularly wanted to know just what recourse best when there was lots of tax incen­ Many are also questioning the wisdom new chairman, and the Republicans labor economists, feel there is danger they’d have to stop further refusals tive for business investment It didn’t of some of the provisions of the newT picking a man who they consider has that we may be building toward such to sell power and thus meet the grow­ work because expenditures for expan­ state AFL-CIO constitution which had definite political possibilities for the a possibility. ing electricity needs of their rural sion were cut abruptly when investors to be approved by the state merger Governorship in 1960. patron-owners. (For latest develop­ INCOME DISTRIBUTION found productivity running ahead of convention in order to secure a charter ment, see story elsewhere in this Analysis of the pattern of income from the AFL-CIO national body. These consumption. The only incentive that Montana Miscellany issue.) distribution in the United States dur­ investors and producers respond to is provisions delegate to the “high brass” ing the past four years shows that the incentive provided by a continu­ of AFL-CIO altogether too much au­ Two of the hottest issues discussed SOME DARK CLOUDS corporate and investment income has thority over what were formerly semi- by Montana people generally this past On the bleaker side, economically ing demand for their products. done considerably better than wages Today we are following a tax policy autonomous state federations and year have been the gasoline price in­ speaking, in addition to the farm in­ and salaries, which are the bulwark that is startling similar to that of the councils. vestigation carried on by the Montana come slump continuing, was the sag­ of consumption. lush ’twenties. It is not too unreason­ Montana Mine-Mill’s rank-and-file in Trade Commission, and the veto of ging lumber market price which has the $5,000,000 Yellowtail dam right-of- resulted in many smaller mills closing Corporate income after taxes in 1956 able to assume, as do many labor econ­ 1956, as on several occasions in past is $37.8 billion as compared with $26.5 years, let it be known in no uncertain way resolution. down in the western part of the state, omists, that barring a war we are billion in 1952. Personal income after heading in the same direction. terms that they preferred their own Major oil companies are currently thus throwing a substantial number of internatidnal union to affiliation with lumber workers out of work. The de­ screaming bloody-murder over charges « the United Steelworkers—AFL-CIO. by the trade commission that they are cline in copper price and the. cutting Creeping Strangulation” . . In elections in Butte, Anaconda and in a conspiracy to fix gasoline prices back of the work week in the non- Great Falls, Mine-Mill administered at unduly high levels in Montana. One ferrous metals industry has substan­ very decisive jurisdiction election de- company after another is publicly pro- tially cut the take home pay of miners RESTRICTIONS ON TVA FORESEEN IN in Butte and smelterworkers in Ana­ conda, Great Falls and Bast Helena. IRE’S BUDGET MESSAGE Two other developments augur well WASHINGTON, D. C.— (NRECA)— WOULD BE CORRUPTERS OF U, S. for the future of the Red Lodge and The Budget request for TVA is also President Eisenhower’s mid-January reportedly asking an appropriation Missoula areas. Revival of the coal in­ budget message is* expected to ask for dustry as a source of char, coal tar, even less than the all-time low of $5,- SENATORS GET WRISTS SLAPPED adoption of an amended Administra­ creosote and phenol oils used in mak­ 357,000 approved for fiscal 1957. Earl­ WASHINGTON, D. C.—(CNS)—Two tion plan for self-financing of the Ten­ counts in its indictment, including the ing plastics, will increase payrolls at ier this year, TVA officials told the oil lobbyists were each fined exactly charge that they had improperly tried nessee Valley Authority. Red Lodge in the months ahead. The Budget Bureau that in order to meet the same amount that one of them of­ to influence a U. S. senator. The giant multi-purpose project is new Koal-Krudes reduction works is increased electric demands, they would fered Senator Francis Case (R-S. D.) also expected to be asked to pay all Their employer, Superior Oil Com­ slated to begin operations in the Car­ require an additional 1-million kw of during the fight on a natural gas bill its power revenues into the Treasury, pany of California, also pleaded guilty. bon county seat town in February. In new capacity annually, 250,000 kw last year—$2,500. in an amended version of the plan pre­ over It could not deny that Patman and Missoula, the decision of Waldorf the forecast two years ago. This was the price they paid for ex­ sented by the Budget Bureau last year, Neff were its agents; if they were Paper to build a pulpmill will be a posure of their lobbying efforts. Yet guilty, so was the company. The firm according to Capitol rumors. these efforts, President Eisenhower substantial assist to a more stable Power of Facts paid a $10,000 fine. economy in the Garden City area.— Rural electric leaders successfully said, were “so arrogant and so much Neff said he got the money from HLB. fought a similar proposal last ses­ Nine-tenths of the serious contro­ in defiance of acceptable standards of Patman. Patman said the $2,500 came sion. This proposal is opposed be­ versies which arise in life result from propriety as to risk creating doubt from the personal funds of Howard B. cause it would preclude use of power misunderstanding, among the American people concerning Keck, Superior’s president. Keck was Price-Cost Ratio receipts for building additional gen­ result from one the integrity of governmental pro­ never considered guilty. erating capacity. man not knowing the facts which to cesses.” A Senate investigating committee, Still Squeezes The Administration, however, is ex­ the other man seem important, or The tw'o lawyers, Elmer Patman of headed by John L. McClellan (D-Ark.), WASHINGTON, D. C.—(CNS)—In pected to contend that the self-finan­ Austin, Texas, and John M. Neff of otherwise failing to appreciate his also treated the matter gingerly. It the month ending November 15, farm cing plan is the only guarantee for point of view. A properly conducted Lexington, Neb., agreed December 14 saw “an attempt to influence by politi­ prices held at their previous level but expansion of TVA power facilities. conference involves a frank disclosure that they were “technically” guilty of cal contribution the vote of a member the cost of farm supplies continued to During the last session of Congress, of such facts—patient, violating the lobbying act by failing of the Senate.” But it could find rise. Hence the parity ratio of prices both House and Senate affirmed TVA’s careful argu­ to register. ment, willingness to listen and to con­ “neither a bribe nor an attempt to to costs kept on sinking, dropping right to expand generating facilities sider. The late U. S. Supreme Court The government dropped all other bribe.” from 82 to 81, USDA men said recently. with power revenues. Justice Louis D. Brandeis.