Governors' Conference

From South Carolina and Indiana, from Minnesota and Oklahoma, from Wyoming and Maryland, from Iowa and Vermont, from Florida and Nebraska, from nine other states./- 19 Governors assembled. In addition, there were the Lieutenant Governor of Rhode Island and a personal representative of Governor Richardson of California.

The rendezvous was Poland Springs, Me., the gathering the 17th annual meeting of the conference of Governors. There was, for the first time in 17 meetings, a woman member--Governess Nellie T. Ross of Wyoming. There was also the son of Mrs. Ross, a lad of 10, of whom Governor Brewster of Maine remarked to the conclave assembled at breakfast: "I was anxious to see that he presented the best possible appearance here. I wanted his clothes brushed and his hands and face clean. When I told him that he should look his best he remarked: 'My mother won't know me if I'm clean.'"

First there was jollification as there must be when Governors get together. Then there were two days of conference, of written speeches. The foremost events of the conference were three speeches.

1) First, Brigadier General Lord, Director of the Budget, compressor of "appropriations, trimmer of estimates, saver of cents and of centimillions, propounded the now old story of the Federal Budget and the economies which it has wrought. He pointed out that, in 1921 (the last pre-budget year), the U. S. Government spent over $5,000,000,000 and that today it is spending about $3,000,000,000 a year--an annual saving of more than $2,000,000,000.

"Yet our critics say no real savings have been effected through the budget system. As long as expenditures are brought down and held down, as long as taxes fall and the national debt melts away, we don't care and the people don't care what they say."

He pointed out that the Federal Government had reduced its indebtedness but that the states and other political subdivisions had greatly increased theirs--that, in 1921, of all public expenditures, the Federal Government's were 60% as compared to the states', cities', etc. 40%, and that today the Federal Government's expenditures are 33% to the states' and cities' 67%. "We are not making these comparisons in any vainglorious spirit. Like the rooster who found the big egg, our only intent is to be helpful. This rooster in his wanderings discovered an ostrich egg. He had visions of glorious omelets, generous fries and unlimited scrambles. With infinite labor he rolled his find back to his home pen. Calling his faithful flock together acid pointing to the big egg, he said: 'This is not intended as any reflection upon you. It is merely to show you what can be done.' "

2) The next speaker was what might be called a self-made politician. He was born in the wharf district beneath the island end of Brooklyn Bridge. His truck-driver father died when he was 12. His only education was a brief period in a parochial school. His youth was spent as a clerk in a fishmarket. Then he began to hold electoral office and has held it ever since except for two years. He just grinned, and was human and able. Three times he was elected Governor of his state by impressive majorities. Only lately he fought to a standstill for the Presidential nomination of his party a man who had been long and conspicuously in public life. He was, in short, Governor Alfred E. Smith of New York.

Governor Smith had never attended a conference of Governors before. This one he attended only perfunctorily--just long enough to make a speech and little more. Just long enough to make an utterance which many believed was the opening of a campaign to be elected Senator next year and President two years later. At any rate what he set about to do was to attack the attitude of the speaker who preceded him:

"From the President down, Federal officials, members of Congress and others are making much of Federal tax reductions, voicing extravagant claims of economy on the part of the Federal administration.

"The favorite angle of approach of the proponents of this false and deceiving propaganda is to point out Federal reductions from the high peak of War taxes and expenditures and the increase in state and local taxes since 1918. Comparisons, to be fair and honest, must cover the entire cycle from 1914 to 1924." He then proceeded to make comparisons between the Federal Government and his own state for the years 1914 and 1924:

...........................................TAXES

............................................1914 .........................................1924 ................................%

.........................................Millions .................................Millions ...........................Increase

U. S. ................................. 672 .......................................3,339 .................................398

N. Y. State ........................ . 44 ...........................................127 ................................190

............................................APPROPRIATIONS

.......................................... 1914 ........................................ 1924-5 .................................%

......................................... Millions .......................................Millions .......................Increase

Federal . . . ....................$1,098 ..........................................3,748 ................................241

N. Y. State ..............................58 ..............................................158 ...............................174

Mr. Smith then pointed out that, not including the interest on the War debt, the cost of the Veterans' Bureau, the Shipping Board, the Alien Property Custodian, the Government control of railroads and other War-born expenditures, the items of the Federal Government's expense had increased 88% since 1914.

"Subtracting from the President's claimed reduction of $2,081,000,000 known items, all incident to the War, of $1,882,590,000, we have a maximum of $198,410,000 representing other War expense not readily identifiable, further decreases in these items during the current year and reductions in War items of old departments of government not disclosed by financial reports.

"If such retrenchment is without parallel--as the President claims--it is because no war ever cost so much and made possible such decreases in changing from a war-time to a peace basis."

He gave the increases for several departments:

...........................................1914 ..................................1921 .....................................1925

Executive .........................$204,000 ............................$222,000............................$426,00

Commerce ....................10,330,000 ........................ 23,912,000 ..........................24,123,000

Justice .............................11,006,000 ........................16,176,000 ..........................24,227,000

Labor ................................ 3,371,000 ...........................6,099,000 ................................8,364,000

State ....................................4,622,000 .......................11,098,000 ..............................15,216,000

"These specific illustrations are made to point out that, in claiming credit for tax reductions and in expenditures and the cost of government, Federal officials are taking advantage of the fact that the country is no longer in war period. To claim credit for that is just like claiming credit for good weather."

3) Albert C. Ritchie, Governor of Maryland, also a Democrat, attacked the system of giving Federal aid to the states in road building, etc., on a 50-50 basis (the U. S. giving a certain amount to spend in certain ways for certain purposes, provided the state will contribute an equal amount). He condemned it because it was a way for the Federal Government to gain control over state activities in a manner never contemplated by the framers of the Constitution. He attacked it also because it was unfair in its operation: in that Nevada, at one extreme, paying $409,000 in taxes to the U. S., receives $886,000 in Federal aid (216.7%); in that New York, at the opposite extreme, paying $474,563,000, receives $4,020,000 in aid (.85%); in that four states (Nevada, New Mexico, North Dakota, South Dakota) receive more in aid than they pay in taxes; in that 18 other States (paying 81% of the Federal taxes) get in aid less than one tenth of what they pay in taxes.

Governor Ritchie's words did not go unattacked. Governess Ross of Wyoming, Governor Trinkle of Virginia, Governor Whitfield of Mississippi protested, saying highways were the concern of the nation as a whole, that the East got much of its taxable wealth from the West.

After a few more speeches, in great concord and amity, the party set out to consume the rest of the week in a tour of Maine by automobile--with a brief excursion into New Brunswick, Canada.

Touring back through Maine, the party broke up at Camden. On the last stage of the journey from Bar Harbor to Camden, Governors Trapp (Oklahoma), Robinson (Delaware) and Trinkle (Virginia) traveled aboard the Navy dirigible Shenandoah. Others of the party went by water, as the guests of Edward W. Bok aboard the yacht Cyrus H. K. Curtis.