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bonded indebtedness on his property and at the same time create a sinking fund for retirement of the bonds: therefore be it

"Resolved, That this Conference of Governors of the Western States in meeting assembled at Salt Lake City, Utah, on this 27th and 28th days of June, 1930, does hereby express its belief that the United States Government should as a part of proper farm relief to the present occupied farm areas, provide for the legislative financing and/or refinancing of irrigation, reclamation, levee, and drainage districts bonds and other indebtedness; and be it further

“Resolved, That this conference go on record as favoring and urging such Federal aid upon an economically sound basis.”

This resolution indicates that this proposed legislation has the approval of the western division of the United States Chamber of Commerce, which consists of conservative men who are familiar with the situation.

The CHAIRMAN. Were there any members outside of the States who would get the benefits of this legislation?

Mr. SWING. I do not know. There were 34 States

The CHAIRMAN. I am talking about the 11 States mentioned in this resolution.

Mr. SWING. I do not know.

The CHAIRMAN. Has your own State done anything toward individual relief for these people?

Mr. SWING. My State has bought a large number of the bonds of this district, and under this bill it will cheerfully sacrifice a substantial part of those bonds in the interest of these farmers.

Mr. SMITH. Mr. Chairman, we appreciate the courtesy of the committee in giving the committee these hearings, and I feel that possibly we are imposing upon you in asking for another day, but we have four or five Members who have made a study of this legislation, and we would certainly appreciate the courtesy if the committee could find time to give us one more day.

The CHAIRMAN. We will give you an additional day, Mr. Smith, but you must complete the testimony to-morrow. Mr. SMITH. Thank you very much.

STATEMENT BY HON. C. G. SELVIG, OF MINNESOTA, ON S. 4123 BEFORE THE COMMITTEE ON RULES, JANUARY 27, 1931

Mr. SELVIG. I desire to be recorded as favoring the granting of a rule to consider S. 4123 having for its purpose the relief of drainage districts throughout the country.

I may state at the outset that the interest and anxiety of the people in the western and northern parts of Minnesota in regard to this problem is great.

The purpose of the bill under consideration is to refinance public drainage works in districts that are in financial distress. In all of the States the Government is adequately protected under the terms of the bill. In Minnesota the credit of the entire county is secured for each bond issue.

The bill does not provide a gift or bonus, but simply a loan to sustain the farmers for the time being. The lands affected in Minnesota are among the best in the State.

The legislature of our State has, on two occasions, passed a joint resolution in favor of this legislation. On last Friday the following

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memorial to Congress was unanimously passed. I shall not take time to read it, but will ask leave to have it included with my state

ment:

[H. R. No. 35, Resolution No. 27]

JOINT RESOLUTION MEMORIALIZING CONGRESS TO PASS THE PENDING MEASURE FOR THE RELIEF OF DRAINAGE AND FLOOD-CONTROL DISTRICTS

Whereas there is now pending in Congress a bill known as House File No. 11718, Senate File No. 4123, providing for aiding farmers in regions which have been drained or protected by flood-control works by the making of loans to counties, drainage districts, and other political subdivisions in such regions for the purpose of redeeming bonds and other obligations issued in payment for drainage or flood control works, and interest thereon; and

Whereas, under present agricultural conditions the payment of such bonds and other obligations and interest thereon has become difficult or impossible in many parts of the State of Minnesota affected thereby by reason of the inability of farmers to meet their taxes and assessments, and the tax burdens of such regions have thereby been increased beyond the capacity of farmers generally to pay, and the agricultural depression in such regions has thereby been greatly aggravated: therefore be it

Resolved, By the House of Representatives of the State of Minnesota, the Senate concurring, that we most earnestly urge the Congress of the United States to pass said pending measure at the earliest possible time.

Resolved, That the secretary of state of Minnesota be instructed to send copies of this resolution to both houses of Congress and to each Member in Congress from the State of Minnesota.

OSCAR A. SWENSEN, Speaker of the House of Representatives.
HENRY ARENS, President of the Senate.

Passed the House of Representatives the 20th day of January, 1931.
JOHN I. LEVIN, Chief Clerk House of Representatives.

Passed the Senate the 21st day of January, 1931.

Approved January 21, 1931.

Filed January 21, 1931.

G. H. SPAETH, Secretary of the Senate.

FLOYD B. OLSON, Governor. MIKE HOLM, Secretary of State.

I, Mike Holm, secretary of state of the State of Minnesota, do hereby certify that I have compared the annexed copy with record of the original resolution in my office of H. R. No. 35, being Resolution No. 2, Laws 1931, and that said copy is a true and correct transcript of said resolution and of the whole thereof.

In testimony whereof I have hereunto set my hand and affixed the great seal of the State, at the capitol, in St. Paul, this 23d day of January, A. D. 1931. [SEAL.] MIKE HOLM, Secretary of State.

(Signed)

All the members of the Minnesota delegation in Congress have gone on record in favor of this bill. Their point of view is so well expressed in the statement which all of them signed that I will give it in full:

"Whereas prior to and immediately following the late war extensive drainage enterprises, encouraged and justified by the then prevailing high prices of farm products and the costs of which were assessed against benefited lands, are now being paid for by the same products at less than half of their former purchasing power, thereby making the burden of meeting annual principal and interest charges to the operators of drained lands in many sections excessive and confiscatory, creating a situation which demands relief; and

Whereas the Government has on frequent occasions in the past extended relief to and promoted the general welfare of representative groups of its citizens where a real need has been shown therefor by advancing money to commercial banks, by supplying as a loan the entire original capital stock of the Federal land bank in an amount of $9,000,000, by subscribing as a loan the entire capital stock of the Federal intermediate credit banks in an amount of $60,000,000, by supplying capital in large amounts during the World War to various units of essential industries, by making large loans to the railroads for rehabilitation purposes following the war, by expending large sums of public funds to encourage and stimulate commerce in privately manufactured articles of trade, and for other purposes; and

Whereas there is pending before Congress a drainage tax relief bill known as H. R. 11718, by Representative Addison T. Smith, of Idaho, which if enacted will afford practical farm relief to approximately 5,000,000 farmers who are handicapped by heavy drainage assessments, large numbers of whom are being and will be forced to abandon their farms under present tax burdens; and

Whereas this bill is wholly in the interests of the farmer; does not make a gift of money but, by safeguarded loans, provides a much needed extension of credit; does not extend aid for private drainage but gives assistance to drainage districts maintaining public drainage works; does not violate in any other way the established policies of the Government: Now therefore be it

Resolved, That we, Members of the Minnesota delegation in the House of Representatives, believe that this bill is direct agricultural relief to a representative group of farmers and is entitled to the support of all the friends of the farmer, and we urge its enactment.

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Since this statement was signed, S. 4123, which passed the Senate by a unanimous vote, has been substituted for H. R. 11718. I hope that the Committee on Rules will report the rule requested by the representative group present here this morning. It is one of the most important measures, from an agricultural standpoint, presented to this Congress, and your early and favorable consideration is urgently requested.

The CHAIRMAN. We will adjourn until to-morrow at 10.30. (Thereupon, at 12.00 o'clock m., the committee adjourned until tomorrow, Thursday, January 29, 1931, at 10.30 o'clock a. m.)

Parkway

HEARING

BEFORE THE

COMMITTEE ON RULES

HOUSE OF REPRESENTATIVES

SEVENTY-FIRST CONGRESS

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