The frontier. (O'Neill City, Holt County, Neb.) 1880-1965, January 17, 1935, Page FOUR, Image 4

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    ^The Frontier
P. H. Croni», Editor and Proprietor
Entered at the Postoffice at O'Neill,
Nebraska as Second Class Matter.
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NEBRASKA NEWS
OF STATE AFFAIRS
By James R. Lowell
The persistent sales tax problem
is up before Nebraska law makers
again, the first such bill <>f the ses
sion having been introduced in the
house of representatives last week
by three republicans, Eugene Peri
go, of Scottsbluff, John Cdnistock,
of Lancaster, and C. E. Frank of
Kearney county. It is called the
“retailers occupation tax act,” and
would provide a 2 per cent tax on
all sales of “tangible personal
property at retail.”
Each retail merchant would
make a monthly report, itfuler the
provisions of the bill, and collection
would be under direction of the
state tax commissioner. The tax
fund would be distributed on July
1 of each year by the state treas
urer to the various county treas
urers “in proportion that the total
taxes levied on all personal and,
real property, averaged over the
preceding three years in all counties
of the state, bears to the total taxes
levied on all personal and real prop
erty, averaged over the preceding
three years in each county.”
Thus the tax would be used to
reduce property taxes, andi if any
one county has levied one-fiftieth
of the total taxes levied irf Nebras
ka for the past three years, that
county would be given one-fiftieth
of the revenue from the sales tux.
The same formula is applied to the
redistribution of the fund by the
county treasurer to the various
taxing districts within the county.
The act provides plenty «f t&eth
for enforcement. Business men
■who wilfully violated the act would,
be subject to fines of from $25 to
$5,000, or imprisonment from one
to six months, or both. Each re
tailer would be required to keep a
full record of every transaction, and
he would not be allowed to destroy
any records until they were at least
two years old. A 5 per cent pen
alty would be inflicted on any busi
ness man who failed to pay the cor*
rect amount in full. Failure to file
a return, or to pay -fhe-^gilk, would
bring a 25 per cent jMnali^, based
on the amount claimed by tbe state:
A flood of taxation bills is cer
tain to be introducetQn the present]
session, despite the fact that Gov
ernor Cochran and Ids democratic
henchmen in the legislature nre
working under a pirty pledge of
“no new taxes.” Ldt*s on*lfntang
ible taxation will agaifi cortff* In for
some workng over before Wie sea
son is over. '•
Comparatvely unhbard of five
years ago, the sales tax todhy pro
duces revenue in excess of $200,
000,000 annually in 17 state??' Last
fall a number of Nebraska state
officials went to Des Moines to
study the Iowa sales tax with an
eye toward raising approximately
$6,000,000 thru a similar Tax for
state poor relief. A Missouri Hales
tax of one-half of one percent is
bringing in an estimated rtvcnue
of $3,500,000 annually.
The retail sales tax in Iowa last
year permitted the lowest property
tax levy within the history of the
state, the levy being less than 1
mill. The sales tax raised, approx
imately $6,000,000 in 1934. The
approximate cost of administering
the tax was $250,000.
Some single-tax advocates among
the Nebraska legislators hold that
the sales tax is the tool of tyrants,
and that its underlying purpose is
to relieve land speculators and
wealthy landholders in the large
cities. The nuisance of the sales
tax is that a person must carry
around a pocketful of pennies to
meet imposts upon the slightest
purchases.
Aside from the retail tax bill, a
number of other important acts
have been introduced in the legis
lature, including a betting control
measure and two unicameral legis
lative plans. One of these calls
for a house of 50 members and re
districting the state'to conform to
that number. Under this plan ten
districts would be made up of
single counties. The second pro
posal is for a 40-member unicamer
al legislature.
The betting bill provides for a
state racing commission of three
members appointed by the governor
with full power to prescribe rales
and regulations governing horse
races and race meetings. License
fees would be $200 per day for
running races in counties of 200,
000 or more; S100 per day in
counties of more than 75,000 but
less than 200,000; and $25 per day
in counties of less than 75,000. For
harness races, the rates for each
day would be one-fourth of the
running race fee.
Five-sixths of the funds coming
into the hands of the racing com
mission would be divided equally
among the counties to be used for
premiums for agricultural and live
stock exhibits. A sixth of the fees
collected would go to the state de
partment of agriculture for the
purchase und delivery thruout the
state of well bred stallions and
jacks in order to improve breeding.
Senator J. S. Callen, of Odell,
has a bill which would create a
state police force of 100 members,
working under a superintendent of
police appointed by the governor
with the approval of the state
senate. Callen estimates the cost
of maintaining such an organiza
tion at about $350,000 a year, and
this would be met by applying part
of the proceeds of liquor license
money, gasoline tax and from sev
eral similar sources.
The state police force would pa
j trol highways, enforce liquor laws
and the gasoline tax law, handle
arson cases and. take charge of fire
prevention work, and various meas
ures to promote public safety, be
sides devoting itself to prevention
of crime generally and the appre
hension of criminals.
The Callen plan contemplates
merging into the state police de
partment the present state sheriff*;
offic, highway patrol, fire marshall’s
office and perhaps one or two otHer
minor enforcement agencies now
working independently. The sug
gested salary of the superintendent
is $3,500 per year. Kxcept when
doing special investigation work,
the men would wear uniforms and
would be provided with short-wave
radio equipment.
A number of less important but
equally interesting bills before the
legislature include an act to compel
the state unversty to broadcast its
football games; an act to outlaw
surprise alibis in criminal trials; an
act to outluw near beer, intended
to stop spiking; and an act to re
move county offices from the realm
of party politics. Rep. Jay Hast
ings (R) of Osceola, introducer of
the bill, says that state and national
issues do not involve county offices.
Mrs. Nellie G. Benson, chairman
of the state board of control, ap
peared before the institutions com
mittee of the house last week and
made a plea for the requested 25 per
cent increase in maintenance appro
priations for state institiutions. She
said increased costs of food, drouth,
increased number of inmates and
need for new prison industries, are
resposible for the request. In
mates have increased 10 per cent
and commodity prices 25 per cent
in the last year. Mrs. Benson rec
omended a metal working plant at
the men's reformatory, and cotton
and wool mills, a knitting mill and
a shoe factory for the penitentiary.
Trenmore Cone-(D), of Valley,
heads a special committee of five
which will investigate the “spread"
between the price milk producers
receive and the price consumers paj.
Refusal of a bonding company to
provide a surety bond for State
Treasurer Hall because the pay
ment provided is not commensurute
with the risk involved, has had its
effect upon the pocketbooks of leg
islators. Last week they com
pleted action for payment of their
salaries and expenses of the fiftieth
legislative session, the appropri
ation bills calling for $200,000, but
were unable to obtain pay warrants
due to the bonding difficulty which
last week had almost halted oper
ations in the state treasurer’s
office.
Attorney General Wright held
that failure of Hall to obtain bond
made the office of state treasurer
vacant, altho Hall cluims otherwise.
The senate has named a committee
of three to look into the situation,
while Hall has asked the legislature
to appropriate $10,000 for a two
year premium on a million dollar
bond so he can qualify for office.
After refusing to write a bond
severul weeks ago bonding compan
ies have offered to furnish the sure
ty at double the present statutory
premium rate of $2,500 a year.
Governor Cochran announced vir
tual arrangement of the bond, but
it will not be in force and Hall will
not qualify fully for treasurer until
the legislative appropriation is
made.
A who’s who of the legislature,
made up of names of legislators
who have landed important posi
tions in that body and thus will
have more prestige than their less
fortunate henchmen, follows:
Cloyd Stewart (D) of Clay Cen
ter, president pro tern of the sen
ate; J. S. Callen (I)) of Odell,chair
man of the committeee on commit
tees; W. H. O’Gara (D) of Laurel,
speaker of the house of represen
tatives; W. F. Haycock (D) of Cal
laway, floor leader and chairman of
the house committee on committees;
Henry Bock of David City, George
E. Nickles of Murray, Edward D.
McKim and Edward J. Dugan of
Omaha, John F. Doyle of Greeley,
Otto C. Weber of Leigh, Walter
M. Burr of Juniata, Carl T. Bremer
of Aurora, John H. Steuteville of
Bridgeport and Henry J. Fleming
of St. Paul, members of the house
committee on committees and hold
ers of important places on other
committees; Charles A. Defoe of
Tecumseh, Charles B. Crowley of
Omaha, Emil S. Brodecky of How
ells, Frank S. Wells of Fairbury, W.
C. Bullard of McCook and Charles
D. Green of Sidney, members of the
senate committee on committees
and holders of other important com
mittee jobs. (To be continued next
week.)
Governor Cochran has restored
the ban on hay from certain parts
of Idaho and Oregon which as
lifted December 15 by Governor
Brykan and which caused three
states to declare a ban on hay from
Nebraska thru fear that weevil in
festation from Idaho and Oregon
might have spread to Nebraska.
State Sheriff Fred Benton and
the deputies serving under him
have been tmporarilly reappointed
by Governor Cochran. There may
be changes in the department later
on, however. Edgar L. Ferneau, of
Auburn, and Fred S. Knapp, of
Omaha, republican members of the
state normal board, will be reap
pointed to that body, the governor
announced last week. The appoint
ments will be for six-year terms.
The constitution provides that the
terms shall overlap with two mem
bers being named each biennium.
More than 480,000 head of cattle
purchased by the federal govern
ment as a part of its drouth relief
program will have been processed
in the state and the meat made
available for Nebraskans on relief,
when the government fills its pres
ent quota of purchases, according
to Prof. W. J. Loeffel, state super
visor of the FERA meat process
ing program. The amount spent
by the government for these ani
mals is well above six and a half
million dollars.
State Tax Commissioner W. H.
Smith discloses that the total of all
assessments, property and non
property, is $42,068,482, a reduct
ion of $838,045 as compared with
last year’s total. This figure was
obtained from reports on tax foot
ings received from all counties
School taxes suffered the greatest
cut, being reduced $772,608. County
taxes' were increased $363,008,
mostly to meet relief costs. State
taxes were slightly reduced.
THINK OF IT!
Forty Boxes or 200 lbs., a year’s
supply of Soap Chips FREE with
each Blackstone Washer at Gamble’s
regular price—Electric, $40.50—
Power, $70.50. And that’s only one
of Gamble’s many New Year Jan
uary Sale Specials. “B” Batteries,
08c—Flashlight Cells, 4c—201-A
Radio Tubes, 30c.
Economic Highlights
There were no surprises in the
President’s message to congress.
Mr. Roosevelt confined his talk al
most exclusively to explaining what
he hoped to do on behalf of the
needy, the ill, the old, and the un
employed. His new program, deal
ing as it does with reform rather
than recovery, might be termed the
second phase of the New Deal.
Briefly described, there are six
definite factors to the program,
he wishes Congress to enact. The
purpose, first is to provide every
able-bodied worker with a job.
Second, the dole system of relief is
to be abandoned. Third, relief of
the unemployed, which is now being
carried by the Federal government
with a modicum of state aid, is to
be transferred to local authorities.
Fourth, all public works activities
are to be unified under a new plan.
Fifth, the existing Federal Emerg
ency Belief Administration is to be
gradually displaced by a new em
ergency works agency. Sixth, and
the most important—old age and
unemployment insurance are to be
provided, and a start is to be made
toward perfecting legislation for
financially assisting children, moth
ers and others handicapped by de
pendency or ill-health.
Mr. Roosevelt outlined these mat
ters, but gave little in the way of
detail. He said that he would short
ly issue a statement as to their
cost—and added that it would be
well within the credit of the gov
ernment. This, of course, is a de
batable point—no subject is more
bitterly disputed than how much
drain the Treasury can stand. Ir
respective of that, it can be safely
forecast that Congress will enact
the program in its entirety. While
support of the President’s ideas by
the legislative branch of our gov
ernment may not be as unanimous
as in the past, his power is still
extraordinarily potent.
Also of great interest was the
President’s statement on how pub
lic works are to be carried on in
the future. He said that prefer
ence will be given to projects which
use a large amount of direct labor,
and which may be expected to be
self-liquidating—in other words,
projects where the government has
a chance of getting all or part of
its money back in the course of
[time. He also said that projects
should compete as little as possible
with private enterprise—and a leg
ion of industrialists must have
heaved a sigh of relief on hearing
that. One of the greatest fears of
the time is that government will go
into business in competition with
private enterprise, as it has already
done with power projects. Finally,
according to the President, public
works will be planned so that they
may be slowed down if and when
private enterprise is able to take
up some of the unemployment slack.
Sentiment for unemployment and
old-age insurance has been growing
at a great rate during the past two
or three years. The difficulty wdll
arise in the preparation of legisla
tion—there are an almost unlimited
number of schemes to achieve soc
ial security. The Federation of
Labor, for example, wants the cost
of such insurance to be borne by
employees arid government alone—
while employers w'ant a three-sided
plan, under which the worker, the
employer and government will par.
ticipate. Others want government
to carry the whole burden—some
thing that would seem obviously
impossible in these days of distort
ed budgets.
So much for relief and reform.
Next to be considered is Congress’
own program, as measured by the
statements and campaign platforms
of various members.
It is certain that the bonus bill
will be passed—and it is almost
equally certain that the President
will veto it, as he did last year, and
as Harding, Coolidge and Hoover
did before him. But now there is
a difference—here, in the past, the
two-thirds majority necessary to
pass a bill over the veto could not
be summoned on behalf of the
bonus, most observers think it will
be at this session.
Inflation will likewise have its
day in court. There will be efforts
to further devalue the dollar, and
to turn the prnting presses loose
making money. A very large House
bloc will support this—but the
chances are that the President, who
apparently is strongly opposed to
any further devaluation of our
money at this time, will be able to
stop action.
The “tax-the-rich” advocates are
also going to do much talking.
Terrific higher income and inherit
ance taxes will be demanded, along
with heavier corporation and, “ex
cess profits” levies. Best opinion
thinks, however, that the President
will put a period to these desires,
that he has gone as far as he wants
to go in burdening capital.
This is the way matters stand as
Congress opens—and newspaper
readers are going to get a big
money’s-worth during the next few
months. It is safe to say that both
; branches of Congress will be some-j
what more independent than thejf
were last session, that Mr. Roosej
velt will have a somewhat harder
time maintaining his control. But,
with the possible exception of the
bonus, it is also safe to predict that
he will get his way in the end.
METHODIST CHURCH NOTES
A. J. May, Pastor
10 a. m.—Sunday School classes
for everybody.
11 a. m.—Sermon, “Churchanity
and Christianity.” Special music
by the choir.
We are especially anxious that
every member of the Methodist
church in O’Neill shall be present
and bring some friend with you to
this service.
The Young People go to Cham
bers as a gospel team for the eVen
service so there will be no evening
meeting. We will have but one
preaching service so it is doubly
important that every body be pre
sent for the morning service. I
would even say “please” be present.
Choir practice Tuesday evening
at 7:30. Junior Choir practice
Thursday evening at 7:30 at the
church.
Frontier
FOR ONE YEAR
, » ‘ l < ! /\
‘ ' • v I '
for all readers in Holt and
adjoining counties
, ^ /• -■ *• Uv •
’’ -i i.'iii
Once again The Frontier is going to make
it possible for all the residents of Holt county to read their favor
ite paper for one year, at the remarkably low price of $1.00.
Now is the time to subscribe!
The Frontier is the leading newspaper of
this section of the state, and always has had the largest circulation
in the county. This is the second time The Frontier has been of
fered at this low price. On account of the depression we made
the same offer a year ago, and several hundred of our readers ac
cepted the offer, and a large number joined our large family of
readers. The depression is still on and we again make the same
offer for the coming year.
This offer is open to both new subscribers
and renewals. Present subscribers can take advantage of the
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offer by paying arrears, if any, at the old rate, and then a year in
advance at $1.00. If any reader is paid up for the year 1935, they
can have their subscription extended for one year from the date
to which their subscription is paid to, by the payment of $1.00.
Remember This Offer Will Close
Saturday, February 2, 1935