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GOLDEN VALLEY NEWS
Senale DebaIe
Seen on Post-
War Measure
The biggest debate in years, from
the point of view of the common
man, is about to begin or~ Capitol
Hill.
With only one major piece of
postwar legislation now on the sta-
tute books, returning senators and
representatives are confronted with
the tremendous tack of drawing a
blueprint for the America of the
future. The task is made all the
more pressing because of the speed
with which Allied armies are
marching toward BerYn. and all
the more difficult because of the
presence of election-year politics.
The first order of business will be
in the Senate military affairs com-
mittec, which has before it two
controversial demobilization bills
that would affect everyone from
the returrdng soldier and discharg-
ed war worker to the operator of
an aircraft factory, and; by no
means least of all. the average tax-
payer.
One of the bills is sponsored by
Senators George (Dem., Gin), chair-
mar~ of the special Senate commit-
tee on postwar economic policy and
planning, and Murray (Dem., Mont.),
chairman of the special Senate
c6mmRte on small business.
When the George-Murray con-
tract termination bill was before
the Senate early in May, Kilgore
attempted to amend it by adding
to it his omnibus bill creating an
office of war mobilization and post-
war adjustment. He was defeated,
however, and the termination bill
went through both Houses of Con-
" gress and is now the only important
postwar bill that is law.
The line-up behind the present
Gecrge-Mu~ray bill and the Kllgore
bill has followed the usual pattern,
with conservative force~ supporting
the former and labor and progres-
sive forces the latter.
Opponents of the George-Murray
bill are particularly bitter because
they see in it a. ~l~reat to labor's
progress and' an attempt to
strengthen cor~ervative ties rather
than to meet an almost revolution-
ary situati~
The manner in which surplus
pro verty is disposed of can affect
the whole economy, strengthen or
weake~ monopolies, open or close
broad highways to the speculator
and strengthen or weaken the op-
porturdties of the small business
man and small farmer.
It is the section on surplus pro-
perry disposal in the Kilgore bill
that has aroused the most concert-
ed opposition of conservative
group~
Second io it in drawing fire.
however, is the section dealing with
unemployment compensation and
wor]~ programs. Labor orgardzafler4
are un~ed in their support of
that section bf the Kilgore bin and
opposed to the corresponding sec-
tion in the Gecrge bill.
~upporters of ~ Kilgore bill ar-
that the unemployment insur-
artce laws to win force were not
designed to meet such an emergen-
cy as will face the country and
th~ they are inadequate to do so.
Therefore the Kilgore bill ap-
proaches the problem as an entireIy
new one with fhe primary respon-
sibility on the federal government.
It provides that the states shall ad~
minister the funds made available~
but establishes minimum standards
and equality of treatment for ex-
seldie)rs and ex-war-workers.
~DAi~ c$ of the George-Murray bill
,it maother "states rights mea-
8Ureo'
The general over-all approach of
~he George-Murray bill throughout
is to reaflrm postwar competitive
fotTitions and to provide a formula
r the easiest possible return to
prewar conditions. The Kilgore bill
on the other ,hand~ approaches the
problem with a broader social point
of view, looks at the problem as a
whole ,and gives to the director of
the Office of War Mobilization and
Postwar Adjustment broad powers
and specific directions to protect
mnall~ interests, prevent monopoly,
and pro~'blt speculation.
• lJ
McNair's Successor
1~| WAR DEPARTMENT has an-
~a~anced that Lt. Gem John £. De-
has been assigned _to
late Lt. Gen. Leslie'J..
commander of ArmY
who was
of me4th
and the Western Defense
has been command an.t
of the joint Army-Navy Staff~oIc0 -
legs in Washington for the past
thirteen months. (I~rn~o~l)
Flood of State Benefits
Aids Returning Veterans
Returning veterans will bene-
fit widely £rom legislatior~ passedI ~$~$~ DI^^J D~..I.
among the states during the past] O1~].~ JLJJLUUUL ~IL~,
few years. A trend in this direction. ,_ = _~ •
which began in 1941, has continuedI i~t~ft~IT I~ |]Irt#%'t#~#~1~t
on art increasing scale through the [ JL1 UI~ IIJLJI, U~JI~JL (]LJLJLUJLJL
1943-44 sessions accordirrg to the
Council of State Governments here Free blood plasma for all prac-
Veteran's administration and re-
habilitation commissions were set
up, educational, privileges extend-
ed. finav~cial assistar~ce provided
and relief from certain kinds of
taxes granted by legislatures of
Kentucky, Michigar~ New Jersey,
New York, l~od~ Island, and Vir-
ginia this year.
Michigan and New York, for ex-
ample, set up commisisons to deal
with various problems relating to
the rehabilitation of veterans. The
Michigan Legislature set up an Of-
fice of Veterans Affairs to afford
veterans "advice, direction and as-
sistance through co-operation, of
programs and services in fields of
education, health, vocational guild-
anee a~d placement, mental care
and economic security." Activities
of the commission will he super-
vised by a director receiving $7,-
500 ansually. In addition, a special
Veterans' Advisory Committee of
eight members--four veterans of
the present war~ 'will assist ar~
advise the governor with respec.t to
ticing physicians in the State of
North Dakota will soon be avail-
able. ~12ais means that there will
be a constant supply of plasma for
treatment of patients, regardless of
financial status. Through this pro-
gram, blood is procured from in-
fiividual volunteer donors, pro-
cessed at the plasma laboratory
located at the University of North
Dakota, and distributed throughput
the state for use as needed.
The critical shortage of physi-
cians, nurses, public health work-
ers, and hospital facilities in North
Dakota will not be alleviated for
the duration and may extend for
some time after the war. One
method ot counteracting part of the
above serious conditions would be
through making available to every
physician and hospital in North
Dakota a supply of blood plasma,
for use in cases of shock, hem-
orrhage, accidents, obstetrical com-
plications, burns, and in the treat-
ment of certain communicable dis-
eases.
The purpose of a state-wide
problems affectin~g veterans. Blood Plasma Program is to save
I "~ "" r ..... lature set~civilian lives in North Dakota. The
n r~ew xo K, me ~eg]s [value of *'Ioo; -' ...... ,.^.u ~^
up a temporary commlsslon, to de [battle and home fron÷ h~ ~"-
with veterans problems, and P" [=,~ ..... t,~l,, d,~,~,,n~tr~÷~,~ ,~,,,-~,,. ÷h,~
proprlated $100000 for use Of th In~s~ ¢ ....... - .......
comrmssmn, whzch was directed t [ The demands upon the National
establish a veterans' service agen-IRed Cross for ufasma have been
to acquaint returning servi~e very great. That supply has all
en ann, me]r ~ammes w]m been needed by the Army and Navy.
the benefits to which they were en- Therefore, we cannot hope to have
tiffed, the Red Cross supply our needs for
Bang loans Guaranteed
In the way of financial assistance
New Jersey established a Veterans'
Loa~ Authority, with an original
capitalization of $5200500, to guar-
antee bank loans made to certai~
war veterans who desire to esta-
blish or re-establish themselves in
a small business or a profession.
Michigaxt set up a $1,000,000 vet-
erans' reserve fund to provide hos-
pitalizatiov, mescal treatment, ed-
ucation and such emergency care
and assi~ance as may be necessary
during the war period for returning
servicemen.
Rhode Islan~ authorized cities
and towns to appropriate and raise
money to assist families and depen-
dents of members of the armed
forces, and appropriated money for
hospitalization of wives and chil-
dre~ of men in the arme~ fortes
below the grade of commisaione~
officers who are unable W pay for
such hospital care, and Virginia ap-
propriated $65,000 to assist in the
rehabilitation of returmng veterar~
Also, Michigan antended its urP
employment compensation law to
protect veterans from losing bene-
fits to which they are entitled- New
York provided unemployment in-
surance for all st;ate veterans whe-
ther they were in covered employ-
merit or not prior to their en-
trance into the armed forces, the
provision to cease at such times as
the federal government provides
benefits to veterans; while Rhode
Islsmd amended its unemploymen~
compensatior~ act so that veteran~
receiving mustering-out, pay or ser-
vice-conmeeted disabili~ p~yments
will still be eligible for unemploy-
ment compensation benefits.
Edm~tiona] Classes Extenaed
Educational privileges were ex-
tended this year by Kentucky,
Michigan, New York and Virginia.
~nder 1944 Keneucky legislation
veterans of this war are entitled
to free scholarships in any state
institution of higher learning they
choose, for periods necessary to
complete selected courses of stud~,
the ~cholar~ips including tuition~
fees, ren~, fuel anc~ light, but not
board; however, the act shall not
apply to veterans for whom the
Federal Government provides ed-
cational benefits.
New York established 1,200
scholarships for returning veterans,
each scholarship carrying maximum
yearly ttipend, of $350 for no~ more
tha~ four years. A fund of $420,000
was appropriated for the purpose.
The Michigan and Virginia legis-
lation provided educational oppor-
tunities fo~ childre~ of servicemen
killed in action or who pass on from
other causes during the war.
Kentucky and Miehoigan provide
certain, tax exemptions; Kentucky
exempting from classification as a
"taxable transfer" soldier allot-
ments, death compensation or other
benefits by the Federal Govern-
inert to surviving spouse or heirs
of persons serving in the armed
forces in time of war; and Michi-
gan extending the homestead ex-
emption of $2,000 to veterans of
this war, Kewtucky also exempted
from poll taxes veterans who serve
at least 90 days Lr~ the present war
and who were residents of ~.he
state af the time of induction.
THIS ONE FOR YOU KIDS
More low cost and better price
control for candy are two of the
aims of the Office of Price Admin-
istration in setting up four new
Advisory Committees of Candy
Manufacturers. Just in case you
kids are interested, these manufac-
turers represent "General Line
Candy," '~andy Bars," "Package
Goods" and "Wholesale Candy."
North Dakota was the o~ily state
in the north central group to main-
tain barley acreage in 1944, accord-
ing tO the U ,S, Departmen~ of Ag.
rieulture.
More honeybees are urgeatly re.
to pollinatemany seed
Civilian Defense. The only answer
to the problem lies in having suf-
ficient plasma in North Dakota for
emergency use, by creating a state-
wide plan such as the program
conducted by the State Department
of Health. In view of the many
recent catastrophics on the home
front, it becomes essential that
North Dakota have adequateplas
ma reserves throughout the state
for civilian use.
The North Dakota Taxpayer, in
its February issue, recommended
that Post-war Plans include hu-
manitarian programs for promoting
the health and welfare of our citi-
zens. A blood plasma program
must eertairdy come into that cate-
gory. The North Dakota Medical
Association realizes the importance
of plasma centers in the state. As
far back as 1942 they recommended
the es~d)H~hment of plasma centers
throughout the ~ate,
The problem of maintaining an
adequate plasma service is usually
of small concern in large metro-
politan hospitals which have am-
ple funds and a weu organized
technical staff, l~aWever, in North
Dakota, where hospitals are smarter,
the budget is a hard dictator and
the problem o~ maintaining ade-
quate plasma reserves are always
present. It is no longer .po~..ible to
excuse the absence of thin ~e-sav-
ing substance upon the basis of fi-
nanci.al or technical inability to
produce it. North Dal~ota now has
a program which will provide
plasma available for use at all
times-
The amount of plasma ~redited
to a participating community is de-
termined by the donor response of
~he community. The State Health
Department will conduct donor
clinics throughout the state, Grand
Forks has the honor of being the
site of the first of these clinics.
response for such a civic pro-
gram should far exceed the num-
ber of donors who will be accepts&
This is a state-wide program which
will be a success if only each com-
munity does its part. Donor clini~
will be held in Grand Forks Jmy
24 through August 4. Application
can be made through the local
chapter of the Red Cro~ All
clinics win be held at the Univer-
sity in the Library building. Local
physicians will volunteer their serv-
ices in conducting the donor clinics
and the local chapter of the Red
Cross will furnish volunteer help
and conduct the canteen service.
It is urged that donors get in
touch with the Red Cross in order
that appointment schedules can be
made. Your blood may help save
the life of your neighbor, friend, or
relative!
150 STUDENT NURSES
NEEDED IN NORTH DAKOTA
This year 60,000 Cadet Nurses
should begin their education so
that they may be ready to replace
graduate nurses going into military
service. Wherever they serve, they
will be fillin.g a vital wartime
need.
It is obvious that rmrsing will
play an important role in the re-
habilitation program o~ this post-
war world.
I believe that the pressure both
during the war and the reconstruc-
tion. era to follow will demand, a
supply of graduals nurses in excess
of what we now have.
ENROLL NOW! There are a few
vacm~cies ,ir~ the September class
in the ~ollowing schools of nursing:
St. Andrew's Hospital, Bottineau.
Good Samaritan Hospital, Rugby.
Trinity Hospital; Minot.
St. Jsoeph's Hospital, Minot.
Mercy oHspif~l, Williston~
General Hospital, Devils Lake.
Mercy Hospital, Devils Lake.
Deaconess Hospital, Grand Forks.
St. Michael's Hospital Grand
Forks.
St. Luke's Hospital, Fargo,
Mercy Hospital, Valley City.
The output of chicks by commer-
cial hatcheries in the U. S. nearly
doubled fronl 1938 to 1943.
NAVY DAD HEARS BABY'S WALLS
JEABEE JOHN $. OR~UB who is stationed in Hawaii has never seen
his 16-month-old daughter, Dbnna Jean, but he is certain that she
has a very healthy set of lungs. The young lady, who lives with
Mommy in Chicago, practiced saying "hello daddy" religiously before
he called from his Pacific base, but when the time came to perform,
Donna's &¢eetlng wa~ a lusty yowll (International) .
PARM INFLATORY SIGNS
Elements that might contribute to
inflation continue to be seen at the
end of the second quarter of this
year as compared to the end of the
same period last year, accordin& to
data made available by the Bureau
of Agricultural Economics. Demand
deposits in Country Banks, consist-
ing largely of checking accounts,
were up 28 percent--an increase
partly accounted for by large de-
posits Of Government funds. These
checking accounts would be infla-
tionary if used to bid up the price
of land and scarce goods. Another
inflationary sign is that average
per acre value of Farm Real Es.
tats as of July I was up 15 per
cent over a year ago. For the quar-
ter, cash receipts from Farm mar-
ketings were up six per cent over
a year ago and prices paid by Far-
mers for the things they buy~in-
retest and taxes--were up five per
cent. The only non-inflationary fac-
tor, more than offset by increased
receipts from Farm marketings,
was a decline of one per cent m
prices received by Farmers.
Farmers are being urged to buy
and store their winter coal sup-
plies immediately. Transportation
and labor problems are serious, and
there is great danger of coal short-
ages at local points in North Dako-
to during the coming winter.
Land. values in North Dakota
have increased less than 10 percent
above the 1945-1939 average value.
according to the U. S. Bureau of
Agricultural Economics.
WRECKED R.R. STATION IN RENNES
WH~ 11~ AMERI@AN FOI~E$ liberated Rennes, the capital of Brittany,
they tound numerous wrecked buildings and streets filled with debris.
Here is a view of the bomb-ruined railroad station ~Jter the Nazis Bud
been driven out. Signal Corps Radiophoto. (Intern~flonaZ)
HITLER'S SS TROOPS SURRENDER
THESl! ON¢li TOUGH $$ OFFICERS captured by the ~ az~o~d
dlviaiO~ during the Al~ed advance in France are ll~.ed up i~.r
taken prisoners TIW am are the best t~oolw ~luer ~ uu~
laternafi0nalifls Devise New Figures
On War Profits; Farmers Helpless
An elab~oate study designed to
show that industry is making low
war profits was issued today by the
National Assn. of Mandfacturers,
Here is the HAM's story, in
brief, a~ it was given to the press
accompanded by a 20-page stud~]
and many fancy charts:
"American business is making
money, but at a l~wer rate than. it
was before the w~r, it was shown
today by Robert M. Gaylord. presi-
dent of the National Assn. of
Manufacturers.
"Although the dollar volume of
corporate profits was considerably
higher in 1943 than in 1938, last
year's net earnings were low when
considered in relation to the tre-
mendously increased wlume of
production--J298.000.000.000, as a-
gainst $131,000,000,000 in 1939. The
rate of profit declined from 3.1 in
1939 to 2.8 in 1943. Production in-
creased 127 per cent and profits 101
per cent.
Profl~ In Line
Profits are staying in line even
in wartime, when they don't go up
as fast as output," said Mr. Gay-
lord, president of the Ingersoll
Milling Machine Co., of Rockford,
Ill.
Note that last paragraph, It was
the foundation for the NA1Ws argu-
ment that industry is not profiting
from the war.
But this is not the way business-
men measure profits on their in-
vestments. They measure profits by
the return they get for risking their
money, measured as a percentage
of the money invested. Thus, they
Hit At ClayI0n
Land Sale Act
The fight against the land dispo-
sal plans of W. L. Clayton, director
of s~rplus property disposal under
the B~rusch plan, is becoming one
of the hottest controversies Wash-
ington has seen for many a day.
It has now engaged three GOv-
ernment departmenes with top-
flight officials exchanging blows
with Clayton. It iS certain to break
with a bang on the floor ~f Co~.
gress. It has reached the stage
where Clayton's veracity in defend-
ing his transfer of the program to
Jesse Jones' Reconstruction Finance
Corp. is being publicly called in
question.
Though Clayton has given public
es~urances that the sale of Army-
owned farm land will be to family-
type farmers at reasonable prices
with special preference to veterans~
the forces he is trying to pacify
still feel that the Clayton machin-~
cry is geared to make the operation
a speculative land grab for the real
estate interests.
Bank~ead Oppo~
Among Clayton's critics is Sen.
John H. Bankhead (D., Ala.), au-
thor of the Bankhead-Jones Tenant
Purchase Act and the recognized
leader of the long fight in Congress
for the protection of small farmers.
Sen. Bankhead has introduced a
farm mortgage loan bill which
specifies that the disposal of sur-
plus farm land shall be entrusted
to the Dept. of Agriculture and not
the ~. He has served notice that
he intends to press this legislatio~
hard after Labor Day, which is in
direct conflict with Clayton's plans.
President James G. Patton. of the
National Farmers Union, question-
ed the veracity of Clayton's asser-
tion to the Washington Post that he
consulted the Justice Dept. before
transferring the land disposal pro-
gram to the RFC,
Patton declared that the mem-
bers of the Inter-Agency Advisory
Committee ~m Land Disposal and
Assistan~ Attorney General Nor-
man Littell, chief of the Lands Di-
vision in the Justice Dept., "know
very well that the Department was
not consulted and that it was not
eve~ offered a place on the Com-
mittee until after it had been set
up.
Advi~rs Overruled
Patton said that on June 5 the
Advisory Corrm~ittee recommended
that '~arm land disposal should be
vested in the Dept. c~ Agriculture,
and that disposal of mineral and
grazing land should be vested in
the Dept. of Interior."
The members of the Committee,
said Patton. "know that Clayton[
declined to follow this recommen.
dation and chose instead to follow
his present course, one that de-
lights the hearts of the members of
the real estate boards.'"
Patton quoted from a July 9 let-
ter by Littell to Chicago saying
that failure to assign farm land dis-
pOsal to the Agriculture Dept. and
gra~ing land disposal to the Inter-
/or Dept. "violates basic principals
and established principles of good
government and, for that matter, of
good management in an~v business:"
Patton deplored Clayton's "ex-
traordinary refusal to listen to the
recomrr~endations of the inter-
agency committee he himself had
set up, and h~s obvious willingness
to follow a course calculated to en-
rich private real estate interests,
and called.upon Congress to do
oy ~egmzauon what Clayton re-
fuses to do by adrair~istrative
means. -
ApProximately 2 25.00 pressure
cooker gages and ,v~ cooker safe-
ty valves were tested in recent
n~k:l-sf%y t~°rth~D.akota home.
........ ~uAC Extension
c~ervlce an(:[ War ~J'^^~ a ....
tl^n ,- - " ~ ~al~nlstra.
m a Progr
food to
figure they are earning 5 per cent
or I0 per cent on their investment.
The amount they earn, as rela~ed to
the year's gr~ss receipts is .irrele-
vant.
Investments Ignered
There is no mention of invested
capital in the NAM propagand~
blurb. Gaylord, i g~orin~g invest-
ments entirely, says profits are re-
sortable when they don't otrtstrlp
gross receipts. And he means pro-
fits after taxe~ not before taxes.
Under this theory, industry is en,.
tiffed to huge wartime profits meas-
ured at peacetime rates Rot only on
is own inflated war production, but
also on the production it is turn-
ing out in Government-owned
plan~ And the rate of profit per
d~llar of output must increase many
fold to absorb all of industry's war
taxes.
What B Memt~
But here is an lllustr~tion show°
ing what the NAM's measure of
profits rea41y means.
Take, for example, a corpm-ation
which prior to the war had an in-
veted capital of $1,000,000, and was
turning out $5,000,000 worth of
business e year at a proflit of
$100,000 before taxes. That was a
profit of only 2 per cent on is voI-
ume of business, but of 10 per cent
on its capital. The investo¢ had
reason to be satisfied.
With the war o~, and the plant
working overtime, it is turning out
twice as much business in its ow~
plant and in addition is operating
a Govermuent-owned plant, It is
producing $20,000,000, worth ~f busi-
ness a year, although its invested
capital may still be only $1,000,000.
If it still makes the same relative
profit it was making before the war
on each dollar of business the com-
pany's profits are now $400,000 a
year. This is only 2 per cent o~ the
volume of business, but it is 40
per cent on the capitsl investe~ in
the company. The stockholders are
earrdng almost half of their original
investment every year:
Still Not Enough
In order to measure up to the
NAM's yardstick, that company
would have to increase its profits
still further to cover the increased
war taxes. Before the war, it prob.
ably was payin~ only 10 per cen~ o~
its income in taxes, but rmw with
its inflated profits ar~ d~e excess
profits ta~, It has to pay a n~Jch
higher percentage.
It probably could make a profit
of 200 per cent or 300 per cent on
its invested capital each year with-
out violating the NAM's rule o~
profliteering. That's wl~at man~,
companies are doing,
W~at this really means is that
in addition to following a com-
pletely unsound theory of paying
proi~ts based on production rather
than invested capital, ~he Govern-
merit, in ad~Itlon w~uld be'collect.
~taxes .with .one hand, and pay-
out hzghly rotated prices with
the other to cover the compan, y's
taxes. It is shifting the tax load.
from the taxpayer to the Govern-
ment, and nullifying all Cor~gres.
atonal tax legislation designed to
curb war profits.
Industry generally was making
3.1 per cent on, volume of bu#iness
after taxes before the war and is
now mal~ng 2.8 percent, or almost
as much on each dollar o~ the
vastly expanded war busine~ as
it was before the w~r despite the
higher taxes.
While the HAM compared pro-
fits to volume, after ta~es, its pro-
paga~a release did just the op-
posite in measuring wages. It said
wages and salaries had ' -r
~ky ovk-
eted from $44,000,000,000 in 1939 to
$1ff~,0~),~,{~ in 1943," In ma~Jn~
this comparison, the NAM di&~
note that workers were turning out
two a¢~ da half times as much.as in
1939, and paying billions of addi.
tional taxes.
Fateful Handbag '