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those in all these States who advocate a tax strike. May I inject here that we are fully acquainted with the proposition that our local taxes have reached confiscatory proportions now. That, however, is not a matter for the Federal Government. We are proceeding to take care of that in our own way. A week ago last Friday, 24 counties in my State with county tax liens showed up at the State House and set up a central organization. Salary cuts and the elimination of unnecessary governmental employees and State, county, and school district, are rapidly progressing in the State of Colorado through the sheer inability to pay. That is all there is to it. The schools are being closed in the State of Colorado, and many of them are now paying by warrant, with no chance to cash the warrant except at the bank, at 80 per cent discount, until next November.

Senator MCGILL. Can you tell us to what extent approximately schools are being closed in Colorado?

Mr. HOWARD. I think, Senator, that there are not many of them closed, but they are paying with warrants in plenty of them now. Senator FRAZIER. What did you say the discount on the warrant

was?

Mr. HOWARD. 20 per cent discount; 80 cents on the dollar.
Mr. SIMPSON. They pay 80 cents on the dollar?

Mr. HOWARD. Yes. The banker extends them 80 cents on the dollar. I do not know whether he makes them sign a note for that, or not.

Now, gentlemen of the committee, this bill is arrived at through the most intelligent methods that the reading and thinking and posted farmers of this Nation can arrive at. We ask for its passage. We are willing to take the responsibility of this thing It will not be like some measures that have passed in the name of agriculture, about which the farmer had nothing whatever to say.

Senator HATFIELD. Have you gone into the provisions of the bill? Mr. HOWARD. Yes.

Senator HATFIELD. Then I will read your statement in the record. Senator MCGILL. Senator Hatfield means in your discussion. I think that is one thing some one should do, Mr. Chairman.

Senator HATFIELD. It should be taken up section by section, and discussed.

Senator FRAZIER. That will be done before we get through with the hearings.

Mr. HOWARD. I want to thank you, gentlemen of the committee, for this opportunity. Of course, I want you to know that we farmers out over the West do know intimately, and perhaps even at long range, a number of the members of this committee. We have confidence in this committee, but I could not say that Congress as a whole will readily agree with you in the passage of this act. Therefore, it becomes, then, a system of education, if that is necessary, and we trust that will you this measure for us. pass

Senator MCGILL. That is what I was getting at. I think the witnesses should take up the measure and analyze it section by section, from the viewpoint of the farmers. Those are the questions

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we are going to be called upon to meet-those who may favor the

measure.

Mr. HOWARD. That is true.

Senator MCGILL. The general condition, I think, is quite well understood, as to the condition of the farmers and business in general. An analysis of the measure itself is what we should get at in this hearing, I think.

Mr. HOWARD. I think we have a number of our folks here, Senator. However, that would make no particular difference to you. We would rather have Mr. Lemke handle the intimate discussion of the bill.

Senator McGILL. I do not care who does it.

Mr. TALBOTT. Mr. Chairman, I might say this, that the average farmer who comes in here does not know anything about the committee procedure.

Senator MCGILL. I appreciate that. I am not criticizing anybody. Mr. TALBOTT. You should bring out the things you want discussed. Senator MCGILL. The bill itself is what we are going to be called upon to present.

Mr. TALBOTT. However, if you will pardon me, I do not know the things you want to know about this thing, and the members of the committee, by questioning the witnesses, could easily develop from each witness what his mental reaction is to the bill if you will pardon that interruption.

Senator FRAZIER. Before the hearing closes, Mr. Lemke will go into the bill further in explanation of it.

We will have time for one other witness.

Mr. SIMPSON. I want to make a statement, if the chairman please. (At this point followed informal discussion which the reporter was directed not to record, at the conclusion of which the following occurred :)

Senator THOMAS of Oklahoma. At this point I think the record should show what you have just stated. I think the record should show how many States were represented, how many farmers are here, and how many of the number here come from the actual farms. Mr. SIMPSON. Did we put that in yesterday?

Senator THOMAS of Oklahoma. You mentioned yesterday that eight States were represented.

Senator MCGILL. You put in the number of States.

Mr. SIMPSON. There are nine States, namely, Oklahoma, South Dakota, Iowa, Colorado, Wisconsin, Minnesota, Illinois, North Dakota, and Nebraska.

Senator MCGILL. Do you know why my State was not represented here?

Mr. SIMPSON. I think it was because it just happens that this particular week that organization is having a meeting that takes in all of their local and State officers, and boards of directors of their various business institutions. They intended to be here, but I had to call them when I could get these hearings. I did not have very much notice to call them. I think that is the reason.

Mr. ROGERS. I wonder if it would not be well to have the record here show that each man here is representing not less than one

county? There are about 60 men from over the Middle West, representing not less than one county each.

Mr. SIMPSON. These men who stood up here are largely representing county organizations in the States.

Senator FRAZIER. We asked Mr. Hyde yesterday to give us some more figures. He gave us some.

Mr. HYDE. We have made up figures for all the States except two. With respect to two of them, I misplaced the records.

Senator MCGILL. This is what I was calling for yesterday.

Mr. HYDE. Yes. We have the total number of farms in each State in 1930, 1920, 1910, and 1900; the per cent operated by tenants for each of those 10-year periods; the value of land and buildings for each of those 10-year periods

Senator HATFIELD. You are dealing with the nine States?

Mr. HYDE. No. I am dealing with every State in the Union. We have the ratio, to date, of debt to the value of the farm for each of the 10-year periods; the average farm mortgage for 1930. We found it was going to take too much time, and the average farm mortgage is all we have for 1930. We have the average value per acre of the mortgaged land; the average mortgage per acre; the average tax per acre; the number of farms operated by owners in 1930, 1920, 1910, and 1900; and the number of farm telephones. One of the Senators asked for the number of farm telephones.

I am going to suggest that I think the chairman should ask the Census Bureau to prepare this. We could not get a machine in the Capitol big enough to carry this. If we did get a machine, they could not make more than three or four copies. All these figures are set up in the Census Bureau, and I think that if your chairman asked them to prepare it in this form, they would do it. They have it already prepared, but each State is in a volume by itself, or a pamphlet by itself, and it is not so easily compared as it is in this form.

Senator THOMAS of Oklahoma. I think you are best prepared, probably, to dictate a request for this kind of information.

Mr. HYDE. I will be glad to do that.

Senator THOMAS of Oklahoma. If you will use my office and dictate the request, I will assist the chairman in getting it for our records.

Mr. HYDE. I will do that. It seems to me that would be a very valuable public document, made up in that way. It offers an easy means of comparison, which we do not have now.

Mr. SIMPSON. Mr. Chairman, I will ask you to hear next Mr. Emil Becker, of Nebraska.

STATEMENT OF EMIL BECKER, MEMBER OF FARMERS' UNION OF AMERICA, NATIONAL BOARD OF DIRECTORS AND FARMERS' UNION OF NEBRASKA

Mr. BECKER. Mr. Chairman and gentlemen of the committee, I have not much to add to what has been presented so far to your honorable committee, in regard to statistics. Our condition in Nebraska is similar to the general facts that have been stated here.

I have reduced my remarks to writing, and desire to read them to the committee.

So far as our statistics are concerned, touching on the agricultural conditions of Nebraska, according to our fifteenth census report for the year 1930, Nebraska had 129,458 farms, comprising 44,708,565 acres. The land and buildings are valued at $2,495,203,070. The farms operated by owners are 67,418; free from mortgage debt, 24,903; mortgaged, 42,515; percentage of farms mortgaged, 57.8.

These statistics, however, do not disclose the fact that many farms have been taken over by loan corporations, by mutual agreements, wherein the owner deeds the land outright for a consideration which equals the rental on the land value for the time that it would require to get title by a decree of foreclosure.

For example, I have in mind one particular instance, where one Mr. Koehler, living in Merrick County, purchased 320 acres in 1919 for a consideration of $64,000. He paid $46,000 in cash and negotiated a loan for $18,000. For 12 years he paid interest at the rate of 52 per cent, equal to $11,880. In December, 1931, he was unable to further keep up his interest payments. The loan company then bargained with him for the relinquishment of his title and interest. They finally concluded the deal by paying him $1,000 for immediate possession. This releases $18,000 of the debt, which otherwise would be shown as mortgage indebtedness.

Thus, the life savings, consisting of $46,000 cash, plus $11,800 in interest, have been absorbed by reason of the unequal earning power of our agricultural industry, and as a direct result of our inflated monetary system. This case is only typical of thousands of other cases in like condition.

Had Mr. Koehler's loan been negotiated on the terms provided for by the Frazier bill, his ledger account would have shown, in 12 years, a credit of $5,350, which amount would have been available to prevent frozen assets in our rural banks and to have purchased necessary articles from our manufacturing industries, thus creating a greater demand for employment, besides reducing Mr. Koehler's bonded indebtedness 12 per cent each year, which would in 12 years have amounted to $3,240. In 1931 the average price of wheat was 41 cents at Clarks. This is the only place where I could get the average price for 1931, per bushel.

Senator THOMAS of Oklahoma. What was the average price?

Mr. BECKER. The average price for 1931, per bushel, was 41 cents. Mr. HYDE. Was that the 1931 crop, or the 1930 crop?

Mr. BECKER. This is the average price for the year. I took it from the cooperative elevator. They handled 66,000 bushels, and that is the average price for the entire year.

Senator MCGILL. You mean they handled that many bushels during the calendar year?

Mr. BECKER. Yes.

Senator MCGILL. That would be part of the 1930 crop.

Mr. BECKER. That was the average price that was paid in 1931, per bushel.

Hogs, on January 29, were selling for 3 cents at Clark's. I do not know how much Mr. Koehler's tax amounts to, but I am acquainted with general tax values in that particular neighborhood, and will

say that $300 per annum is a very reasonable estimate, which makes a total of both tax and interest of $1,290 per annum. This would require over 3,000 bushels of wheat, or two hundred and fifty 200pound hogs, at present prices, to pay his taxes and interest.

Senator Thomas yesterday asked Mr. Young how people in Wisconsin who have no visible means of support are living. We have in Nebraska, in the grasshopper area, five counties 90 per cent of the farmers in which are without either money or feed. No banks are available to finance them. These people are being supplied by charity from other parts of the State. Voluntary relief is being shipped to them. Including the 15th day of January, 1932, 206 cars of food have been donated, and carried free by the railroads. This country is now covered with snow, and livestock are actually perishing by the thousands for want of feed.

Nebraska is not applying for aid, but we do appeal to this honorable body to do all in its power to give us an economic relief measure to put agriculture on an equal basis with other industries.

With such provisions as are contained in the Frazier bill, industry will immediately arouse. Currency must be deflated in the same ratio that agriculture has been deflated.

Senator MCGILL. How many farms in your State are operated by tenants? Could you give that figure?

Mr. BECKER. I had that in the statistics. I do not remember exactly.

Mr. HYDE. Senator McGill, Nebraska and Mississippi are the only two States I do not have here. I have all the other States, but for those two I had misplaced the book that had them in.

Mr. SIMPSON. He will have it in his statement.

Senator MCGILL. I observed the witness omitted that, and that is the reason I asked the question.

Mr. SIMPSON. He told the number operated by owners, and he told the total number of farms, so it would be a matter of subtraction. Senator THOMAS of Oklahoma. Are the farmers of your State able to pay their taxes quite generally, or is there a great defalcation?

Mr. BECKER. With respect to taxes, there are a great number of them that are not able to pay them. As set out in my statement there, thousands of farmers have already deeded back their farms to the loan companies, bankers, and so forth, by private agreements. Senator MCGILL. That is in the northern part of the State? Mr. BECKER. I live in the central part of the State. Senator MCGILL. I know where you live.

Mr. BECKER. I am not so well acquainted in the northern part, where this grasshopper district is, except through contact as through there occasionally.

go

Senator THOMAS of Oklahoma. In those sections where the grasshoppers did not strike, and where the drouth did not strike, were the farm crops this year about average, above average, or below average?

Mr. BECKER. We had about a half-crop of corn last year on account of the drouth. Our small grain crop was average; pretty fair wheat.

Senator THOMAS of Oklahoma. Would you say that the crop for 1931 was an average Nebraska crop?

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