The news in ihis publica-
tn is released br the press on
ceipt.
THE UNIVERSITY OF NORTH CAROLINA
NEWS LETTER
Published weekly by the
University of North .Carolina
for its Bureau of Elxtension.
rCUST 18,1920
CHAPEL HILL, N. C.
VOL VI, NO. 39
lorial Board i B. C. Branson, L. B. Wilson, E. W. Knight, D. D. Carroll, J. B. Bullitt.
Entered as second-class matter November 14, 1914, at the Postoffice at Chapel Hill, N# C., tinder the act of August 24, 1913.
NORTH CAROLINA IS RICH
lROLINA leads in wealth
he evidence that North Carolina is
h accumulates. There is no room
t for doubt or debate. The last word
3ut it comes in a recent report of the
:ernal Revenue Service, covering the
ir that endted June 30, 1920.
fhe taxes we paid into the federal
;asury during the fiscal year just
ised were in round numbers 162 mil-
n dollars.
Which is to say, in a single year we
id into the federal treasury more
)ney than we have paid into our state
jasury under our general property
K law since the Revolutionary War!
Six millions into our state treasury in
L7, and one hundred and sixty-two
illions into the federal treasury in
19-20. Which means that our federal
xes are just about 25 times heavier
an our state taxes.
Forty years ago the whole state could
,ve been bought, lock, stock, and
rrdl, for 169 million dollars; or
esumably so, since that is all we said
e state was worth on the tax books,
id here we are emptying more mil-
ns than that into the federal treasury
a single year.
The Richest in the South
Only three states of the Union out
rank us in the annual production of crop
wealth.
And only six are rich enough to pay
more federal taxes.
But when it comes to paying taxes to
support the state and its purposes, 46
states outrank us, and only South Caro
lina saves us from hitting bottom.
In 1918 the per capita cost of state
government in North Carolina was only
$2.22. And $2.22 wont buy a handsaw
or an axe head and handle, or a single
bushel of wheat!
In 1860 our per capita taxables were
$361; in 1917 they were only $391—an
increase of less than 10 percent in 60
years! Of course these figures are ri
diculous, and worse—they are shame
ful.
MEN TO MAKE A STATE
George Washington Doane
The men, to make a state, must
be religious men.
To leave God out of states, is to be
atheists. I do not mean that men
must cant. I do not mean that men
must wear long faces. I do not mean
that men must talk of conscience,
while they take your spoons. I speak
of men who have it in their heart as
well as on their' brow.
The men that own no future, the
men that trample on the Bible, the
men that never pray, are not the
men to make a state.
A NEW IDEA IN CAROLINA
With wage increases to employes in
industries so frequent these days, an
item telling of a raise in wages to a
group of employes in a North Carolina
mill would under ordinary circum
stances be of little public interest.
But the report of the wage increase
, to 3,000 employes of the Durham hosiery
* mills arrests attention because the em-
he federal taxes of North Carolina ployes granted the increase themselves
the year just closed were more than and what is of more importance because
combined taxes of all the other they were in a position to grant the in-
th Atlantic and Gulf states from crease themselves.
This was because there is a system
of industrial democracy in the Durham
mills, and the employes have a voice in
the management. They are represented
by a congress, which acts for them
much after the manner in which a legis
lative body acts for a state, and it was
this congress of represenatives that or-
■ginia to Louisiana inclusive.
Inly six states of the Union were
h enough to pay more federal taxes
m North Carolina-New York, Penn-
vania, Illinois, Massachusetts, Ohio,
1 Kentucky.
t is highly significant that the bulk
our federal taxes were paid directly
UUl ICUCio-i r - —***5 r -
about 4,000 corporations and some dered the increase in wages
OOO individuals-by a bare corporal’s
of our two and a half million
md the federal taxes they paid last
ir were six times all the taxes paid
the people of ■ the entire state of
rth Carolina for town, county, and
te purposes combined.
?he details of our federal taxes were
follows:
bacco stamp taxes $108,618,866
;ome and excess profits
taxes 44,956,292
bate or inheritance taxes 3,174,019
ilroad freight and passen
ger traffic 2,612,267
cumentary and proprietary
stamps 529,589
scellaneous taxes 2,042,486
Ml but five and a half millions of this
armous total was paid directly by our
jacco manufacturers and indirectly
tobacco users all over the world; by
ne 4,000 corporations in taxes on in-
tnes and excess profits, all of which
IS passed on to the ultimate consum-
3 of their products; by some 10,000
;h people who had net taxable incomes
yond $2,000 each; and by the heirs of
:ge estates.
The federal taxes paid by this bare
indful of rich people amounted to 157
illion dollars! It is money enough to
place all the automobiles and all the
lurch and school property of the state,
these were suddenly swept out of ex-
tence by earthquake, fire, or flood.
Painless'T axation
The multitudes who used the railroads
>r freight or travel, who borrowed
loney, or sold real estate, or bought
atent medicines, or proprietary nos-
•ums, or attended picture shows, street
lirs, theatres, and ball games, paid
early as much into the federal treas-
ry last year as our state government
ost—paid it without a whimper, care-
issly, eagerly.
So much for painless methods of tax-
tion—the taxation indirectly laid on
he backs of final consumers.
Our federal taxes averaged $66 per
ihabitant in North Carolina, counting
len, women, and children of both races.
)ur state taxes average less than $3.00
er inhabitant; but the state collects it
irectly, in a lump all at one time; and
alk about increasing it almost throws
he|ieople of North Carolina into con
vulsions. It’s the old story of stfain-
ng at a gnat and swallowing a camel.
whole densely ignorant. This is a sad
reflection upon the methods pursued
in Southern institutions of learning.
The wonderful development of the
Old South prior to 1860 is almost wholly
unknown to the college student of the
South of today, and therefore they
think of the Old South largely in an
apologetic spirit, wholly ignorant of the
fact that its business development prior
to 1860 was one of the wonders of the
world.
As to the material resources and the
progress of the South at the present
time, there is almost as dense ignorance
in these institutions of learning as there
is in the far North, or in the West, and
yet college life is supposed to be for the
purpose of broadening young men and
women and giving them an acquaint
anceship with their own country, as
well as with the history of other lands
and the literature of the past.—Manu
facturers Record, May 20, 1920.
COUNTRY HOME CONVENIENCES
LETTER SERIES No. 23
Electric Farm Power from Central Stations-
-II
The principal difficulty to be overcome
in extending electric service from cen
tral stations to country communities is
the matter of securing the capital nec
essary to build and equip the lines. In the
past central stations have been unable
to finance farm line extensions in the
ordinay way because the amount of rev
enue received per mile of line is very
small. This difficulty is especially em
phasized today when the public utilities
of all kinds are finding it well-nigh im
possible to obtain the necessary capital
with which to bring their systems back
to the state of efficiency that they had
before the war.
There are two general methods of
financing farm line extension which
have been found very successful. In
each of these the capital is supplied by
the farmer interested. In the first,
which may be called the assignment
method, a small group of farmers builds
the transmission line and assigns it to
the central station which operates and
maintains it. The second may be called
the cooperative method. Here the own
ership of the extension line is retained
by the group of farmers who incorpor
ate themselves into a company for the
purpose of distributing electric energy
which is bought from the central sta
tion at wholesale rates.
The introduction of industrial demo
cracy into a factory is undoubtedly some
thing new, and it is an experiment well
worth watching. The insistent demand
from employes of large concerns for a
larger voice in the management espe
cially in those matters that pertain to
their own connection with the enter
prise, is stimulating much thought on
the part of many progressive employers,
for they recognize that as a higher
standard of intelligence comes to pre
vail among employes, they are not going
to remain content with the old plan of
accepting dictation in all matters from
above.
Various plans have been formulated
for meeting the changing conditions, but
we believe the industrial democracy
plan in the Durham mills is the most far-
reaching scheme to allow employes to
participate in the management of the
industry that has yet been tried out.
The plan is all the more significant be
cause it is in force in an industry owned
by General Julian S. Carr, perhaps the
foremost industrial leader of North
Carolina. General Carr is the control
ling factor in many hosiery mills in his
state. When such a successful and far-
visioned captain of industry as General
Carr recognizes the principle of indus
trial democracy to the extent of trying
it out in one of his great factories, it
marks a departure from old methods
that is epochal.—Houston Post.
CAROLINA PRAISED
Both the University of North Caro
lina and Wake Forest College are sub
scribers to the Manufacturers Record,
and have been on our mailing list for
many years. W^hile both of these in
stitutions are doing splendid work we
have had occasion repeatedly to call at
tention to the exceptional character of
work which is being done by the Uni
versity of North Carolina.
In connection with its general work
the University of North Carolina has a
department of Rural Social Science
under the direction of Mr. E. C. Bran
son, which for six years, through spe
cial bulletins and studies in the Univer
sity News Letter, has been doing for
that State what the Manufacturers
Record is trying to do for the entire
South. It is studying the economic and
social problems of the State, and giving
widespread information about the re
sources, advantages and achievements
of North Carolina.
The North Carolina Geologic and Eco
nomic Survey is also located on the
campus of the university, and for many
years has been doing conspicuously good
work for North Carolina. We wish that
every university and college in the South
and Southwest was carrying work of
this character as aggressively as is the
University of North Carolina. Manu
facturers Record, July 1, 1920.
The assignment method is best when
the group of farmers is too small to
carry on successfully the business of a
small electric company. Usually the
central station will furnish the neces
sary engineering advice involved in lay
ing out the lines. In some cases they
may be built by the construction de
partment of the central station, the
farmers paying for the work at regular
rates.
After the line is built the central sta
tion provides for the proper mainte
nance and looks out for all necessary
repairs. The farmers thereafter buy en
ergy at rates to be agreed upon, usually
at so much per kilowatt hour with a guar
anteed minimum monthly bill. Where the
number of consumers averages about
two or three per mile central station
service may be obtained in this manner
at a reasonable cost.
The cooperative method is best adapt
ed to small country communities al
though it has been used where the con
sumers are widely scattered. When
this method is adopted it is usually best
to consult competent engineering and
legal advisers before proceeding with
the organization of the company or be
ginning the work of construction. Fre
quently the central station will lend the
cooperative company a competent con
struction foreman and one or two ex
perienced linemen but a great deal of
the work can be done by the farmers
themselves.
When electric service is obtained on
this plan the individual consuigers are
instructed how to read their electric me
ters and the monthly readings are sent
to the office of the company on postal
cards. The central station renders a
monthly bill according to the reading of
a meter located at the point where the
cooperative company taps the line of the
central station.
There are a number of different mod
ifications of these two methods but
the principle is the same in each. In
every case the central station usually
insists on certain standards of construc
tion, sometimes specifying the kind of
transformer and switching equipment
which shall be used so that the service
rendered may be satisfactory to all.
The Division of Country Home Com
forts and Conveniences is ready to ren
der free engineering and legal advice,
organizing groups of farmers so that
they may have the advantages which
go with an electrified farm. Typical
contract forms and such other assist
ance as may be necessary may be had
for the asking by writing to the Direc
tor of Country Home Comforts and
Conveniences, Chapel Hill, N. C.—P.
H. D.
INDICTING THE COLLEGES
and asking why anybody should be per
mitted to drink champagne and to ride
in a carriage while thousands of honest
folks are in want of necessities. Which
of these two candidates is likely to be
chosen by a workman who hears his
children crying for bread? I seriously
apprehend that in some such season of
adversity as I have described you will
do things that will prevent prosperity
from returning.
There will be, I fear, spoliation. The
spoliation will increase distress. The
distress will provoke further spoliation.
There is nothing to stop you. Your
constitution is all sail and no anchor.
And as I said before, when a society has
entered upon its downward course,
either civilization or liberty must perish..
Either some Caesar or some Napoleon
will seize the reins of government with
a strong hand or your republic will be as
fearfully plundered and laid waste by
barbarians in the twentieth century as
the Roman Empire was in the fifth.—
Macaulay in a letter to a friend in Amer
ica in 1837.
MACAULAY’S PROPHECY
It is an amazing fact that so large a
proportion of the colleges and univer
sities of the South do not give their stu
dents, either in teaching or in the liter
ature furnished through their libraries,
the opportunity to thoroughly under
stand their own section.
As a whole, the students in a very
large proportion of Southern colleges
are not well informed about the natural
resources or the development of the
material interests of their section. Ex
cept in rare cases, they are not taught
these things by the professors, and they
have no way to gain the information
which is absolutely essential to the
making of intelligent citizens.
They may be stuffed with Greek and
Latin, with philosophy and political
economy, so-called, but as to the living,
breathing facts about their own section
^and their own country, they are as a
The United States will have to pass
through hard seasons during the twen
tieth century, and I heartily wish you
good deliverance, but my reason and
my wishes are at war and I cannot help
fearing the worst. It is quite plain that
your government will never be able to
resist a distressed and discontented
majority. For with you the majority
is the government and has the rich who
are always in the minority absolutely at
its mercy. The day will come when in
New York State a multitude of people,
none of whom has had more than half
a breakfast or expects to have more
than half a dinner, will choose a legis
lature. Is it possible to doubt what
kind of a legislature it will choose? , On
the one side is a statesman preaching
patience, respect for vested rights,
strict observance of public faith; on the
other is a demagogue ranting about the
tyranny of the capitalist and usurer,
THE HOMES OF THE PEOPLE
I went to visit a friend in the coun
try, a. modest man, with a quiet country
home. It was just a simple, unpreten
tious house, set about with big trees,
encircled in meadow and field rich with
the promise of harvest. The fragrance
of the pink and hollyhock in the front
yard was mingled with the aroma of
the orchard and the gardens, and reso
nant with the cluck of poultry and the
hum of bees.
Inside was quiet, cleanliness, thrift,
and comfort. There was the old clock
that had welcomed, in steady measure,
every newcomer to the family, that had
ticked the solemn requiem of the dead,
and had kept company with the watcher
at the bedside. There were the big,
restful beds and the open fireplace, and
the old family Bible, thumbed with the
fingers of hands long since still, and
wet with the tears of eyes long since
closed, beholding the simple annals of
the family and the heart and the con
science of the home.
Outside, there stood my friend, the
master, a simple, upright man, with no
mortgage on his roof, no lien on his
growing crops, master of his land and
master of himself. There was his old
father, an aged, trembling man, but
happy in the home and heart of his son.
And as they started to their home, the
hands of the old man went down on the
young man’s shoulder, laying there the
unspeakable blessing of the honored
and grateful father and ennobling it
with the knighthood of the fifth com
mandment.
And as they reached the door the old
mother came with the sunset falling
fair on her face, and lighting up her
deep patient eyes, while her lips, trem
bling with the rich music of her heart,
bade her husband and son welcome
home. Beyond was the housewife, busy
with her household cares, clean of heart
and conscience, the buckler and help
meet of her husband. Down the lane
came the children, trooping home after
the cows, seeking, as truant birds do,
the quiet of their home nest.
And I saw the night come down on
that house, falling gently as the wings
of an unseen dove. And the old man-
while a startled bird called from the
forest, and the trees were shrill with
the cricket’s cry, and the stars were
swarming in the sky—got the family
around him, and, taking the old Bible
from the table, called them to their
knees, the little baby hiding in the folds
of its mother’s dress, while he closed
the record of that simple day by calling
God’s benediction on that family and on
that home.
And while I gazed, the vision of the
marble Capitol faded. Forgotten were
its treasures and its majesty, and I said,
Oh, surely here in the homes of the peo
ple are lodged at last the strength and
the responsibility of this government,
the hope and the promise of this re
public. — Henry Woodfin Grady.
i ..I.