1939: Louisiana

Area and Population.

Best known for the romance of its moss-hung oaks and bayous, its old plantation homes, and the imprint left by early Spanish and French settlers on its traditions and architecture, Louisiana is also a leading southern industrial state, and ranks high among the states of the Union in mineral wealth, agriculture, and fur production.

Louisiana has an area of 48,506,000 sq. mi., a third of which is farm land. The largest cities are New Orleans, with a population of about 700,000; Baton Rouge, an industrial center and the state capital, with 70,000; and Shreveport, oil center and largest city in North Louisiana, with a population of more than 100,000.

Agriculture.

During 1939 Louisiana harvested 4,193,000 acres of crops. The state was first in production of sugar cane, syrup, rice, strawberries, shallots and white clover seed. It ranked fourth in sweet potatoes, fifth in oranges and pecans, and seventh in cotton. During 1939 Dr. Julian C. Miller of the Louisiana State University Experiment Station announced the development of a strawberry superior to any previously grown.

Mineral Products.

The state's leading product, petroleum, in which it ranks fourth among the states, reached a new high in 1938, with a total of 94,812,000 bbl. as against the former record 90,924,000 bbl. (value, $110,300,000) in 1937. On the other hand the flow of natural gas, in which the state ranks third, was reduced from 315,301,000 M. cu. ft. (value, $55,908,000) in 1937 to an estimated 280,000,000 M. cu. ft. in 1938. Production of sulphur also showed a drop, from 429,602 tons to 328,405. Salt was fairly stationary at 958,186 tons valued at $2,775,384. The total value of Louisiana's mineral resources in 1937 was $182,118,905.

During 1939 Louisiana again produced approximately 95,000,000 bbl. of oil. New fields were opened, so that the state showed an increase of 140,795,000 bbl. of proven reserves under ground. The discovery of the Wilcox production in the Eola field near Bunkie was the most important development of the year. Wilcox production was also obtained at Ville Platte, already one of the largest South Louisiana fields through production from higher levels.

In August the first oil well was brought in on the L. S. U. campus, raising hopes of new sources of revenue for the institution. During the same month Louisiana joined Texas and three other states in a 12-day shut-down on oil production, as a result of reduction in the prices paid for crude oil. The shut-down withheld 2,880,000 barrels of Louisiana oil from the market and was followed by an increase in price.

Industry.

Louisiana's industrial growth continued during 1939, as new industries representing an investment of more than $32,000,000 began operation in the state, and gave employment to thousands of workers. Louisiana grants ten-year tax exemption to new industries, through contracts approved by the Board of Commerce and Industry and signed by the Governor.

Millions of dollars were also brought into the state through the sea-food industry, which annually handles large quantities of shrimp, oysters, and fish from the coastal regions. Fur, too, was a major product.

Education.

Progress in Louisiana in the field of education was highlighted by major construction activities at state colleges and continued expansion in the field of vocational education. A $9,000,000 college building program, begun during 1938, is expected to be completed by June 25, 1940. It is being financed by a $6,000,000 state bond issue and liberal contributions from the Public Works Administration.

As a result of this program, facilities will be greatly expanded at the following institutions: Louisiana State Normal College, Natchitoches; Louisiana Polytechnic Institute, Ruston; Southwestern Louisiana Institute, Lafayette; Southeastern Louisiana College, Hammond; the State School for the Blind and the State School for the Deaf, both at Baton Rouge; the Louisiana Negro Normal and Training Institute, Grambling, and Southern University for Negroes, Scotlandville.

In addition, the construction fund has contributed $250,000 toward the cost of buildings to house the new Lake Charles Junior College, a branch of Louisiana State University which opened in the fall.

In addition to steady advances and increased enrollment in courses in agriculture, home economies, and trade and industrial education in the high schools of the state, the last regular session of the Louisiana Legislature in 1938 provided for the establishment of new trade schools at Opelousas, Crowley, Winnfield, Lake Charles, and Natchitoches. The schools at Crowley, Winnfield and Natchitoches are now in operation and construction at Opelousas and Lake Charles is nearing completion.

A total of 619,475 white and Negro children are listed in the state, according to the school census of 1935. Of this number 382,711 are white and 236,764 are Negro. Of the first group 216,724 white children are enrolled in 1,015 public elementary schools, taught by 6,626 teachers, and 37,315 children are enrolled in 172 private schools. The high school enrollment as of June, 1939, totaled 76,795 white pupils in 401 public high schools and 8,302 pupils in 66 private schools. The teaching force totaled 3,552 in public schools and 475 in private schools.

Negro students in the elementary grades totaled 161,622 in public schools and 12,737 in private schools. In 39 Negro public high schools 8,182 students were enrolled, and in 82 private high schools 1,373 Negro students were enrolled.

Finance.

The state's financial condition is healthy. State highway bonds were sold during 1939 at a record low interest rate of three per cent and less. The state treasurer reported a balance of $16,080,614.04 on Dec. 31, 1939. The state's debt totals some $150,000,000 of which $100,000,000 will be repaid out of gasoline tax revenues bonded to build more than 4,000 miles of paved roads and 12,000 miles of gravelled roads.

In January, at the end of the first year of unemployment compensation in Louisiana, the 567,036th check was paid out, bringing benefits paid in the state to a total of $4,113,617. During the past six years PWA funds totaling $78,342,269 have been used on construction in Louisiana.

Public Welfare.

During 1939, Louisiana completed and opened three new charity hospitals, and started construction on a third. The magnificent new hospital at New Orleans, which has accommodations for 3,000 patients, was completed, as well as the Huey P. Long Memorial Hospital at Pineville with accommodations for 250, and a 60 bed hospital for the needy of the Florida Parishes was opened at Independence. Foundations were built for another 250 bed hospital at Monroe to serve the northeast section of the state. The State Hospital Board operated a free ambulance service throughout the state, as well as 13 mobile dental clinics which gave 133,000 treatments, to 42,000 individuals during 1939. The Board expenditures totaled $1,074,954.12 for the year.

During 1939, the State Department of Public Welfare provided assistance for an average of 53,000 cases each month at a cost of $10,560,000. More than 100,000 individuals participated in grants of old-age pensions, aid to needy blind, aid to dependent children, or other assistance.

Political Affairs.

Louisiana had several changes in state officers during 1939. Governor Richard W. Leche resigned late in June, and Lieutenant-Governor Earl K. Long, a brother of the late Senator Huey P. Long, was elevated to the governorship. Senator Coleman Lindsey, president pro-tem of the Senate, in consequence, then became acting Lieutenant-Governor. As Attorney General Gaston L. Porterie had resigned in March to take his seat as a Federal district judge, Gov. Long, through political strategy resembling that of his brother, appointed Lessley P. Gardiner, former second assistant, as attorney general, instead of the first assistant David M. Ellison.

Events of the Year.

General progress in the state during 1939 was overshadowed during the second half of the year by scandals which resulted in the resignation and subsequent indictment of the president of Louisiana State University, the Governor of the state, and many other political figures.

Louisiana State University enrolls more than 7,000 students annually and has a campus dotted with more than $25,000,000 worth of buildings built largely with the assistance of the Federal Government.

On June 8, New Orleans newspapers carried stories involving L. S. U. in questionable financial transactions. The stories were followed by the calling of an open hearing, an action by Governor Leche which the Governor himself immediately after revoked.

On June 22 Governor Leche announced that he would resign from office because of ill health. Three days later he made public a $500,000 shortage in funds of the Louisiana State University, funds which he said Dr. James Monroe Smith, the University president and an appointee of the late Huey Long, had admitted embezzling to finance widespread and unsuccessful operations in the wheat market. Meanwhile Dr. Smith had fled to Canada. He was promptly apprehended and returned to Louisiana, where indictments soon piled up against him.

The resignation of Leche and the subsequent elevation to the gubernatorial chair of Earl K. Long, Huey's younger brother, was followed by extensive investigations on the part of state and Federal grand juries. L. S. U. was the first institution to come under the probe, but further investigation revealed huge alleged overcharges on construction work at both the State Normal College and the Polytechnic Institute. As a result of illegal profits which various grand juries uncovered, indictments were returned against Governor Leche, members of the contracting firm of Caldwell, Bros. & Hart, and members of the architectural firm of Weiss, Dreyfous & Seiferth, architects for Louisiana's 33-story capital.

A Federal grand jury in New Orleans also returned indictments for violation of the Connally 'Hot Oil' act against Governor Leche, Seymour Weiss, treasurer of the old Huey Long machine and nationally known hotel operator, and Freeman W. Burford, oil operator of Dallas, Texas.

Federal Judge T. W. Davidson of Dallas however refused to turn Burford over to Federal authorities from Louisiana, and scored the Louisiana jury heavily for not including among those charged the name of Robert S. Maestri, Mayor of New Orleans, political power in the state and conservation commissioner at the time of the alleged 'hot oil' transaction.

The list of those indicted grew longer and longer as the year went on. Additional names included Louis LeSage, assistant to the president of the Standard Oil Company of Louisiana; Abe I. Shushan, high political power and former president of the New Orleans Levee Board; Robert J. Newman and Norvin Trent Harris, Jr., socially prominent New Orleans brokers as well as many other political figures.

First convictions came on September 15, in the New Orleans Federal Court, when Dr. Smith, Seymour Weiss, Monte Hart and two others were found guilty of using the mails to defraud in connection with the double sale of the Bienville Hotel furniture to the State University, from a company owned by Weiss and Hart. The three named were sentenced to serve 30 months in the Federal Penitentiary and pay $2,000 fines. All but Smith took appeals.

After two months in prison Dr. Smith was returned to Baton Rouge where, in district court on November 13, he pleaded guilty to four state charges of fraud and forgery and was sentenced to serve from 8 to 24 years in the State Penitentiary at Angola. As a result other state charges against him were quashed and so were other Federal indictments. Shortly after, following a suicide attempt which proved a failure, Dr. Smith was taken to Angola to begin serving his term.

Early in December Federal attorneys began the prosecution of Shushan, Newman, Harris and two others on charges of using the mails to defraud in connection with a bond refunding deal in which it was charged the defendants split an illegal profit of $496,000. Late in December the quintet were found guilty and were sentenced to serve two and one-half years in the penitentiary. Appeals were taken.

Meanwhile attorneys for various state agencies began to file suit for recovery of funds allegedly obtained from the agencies by fraudulent means. Refunds totaling $97,000 were made to the State Normal College and the Polytechnic Institute, by Summa and Verne Caldwell, of the firm of Caldwell Bros. & Hart.

Attorneys for Louisiana State University have also filed suits to recover more than $250,000 from various persons, including one suit for an alleged fraudulent overcharge of $67,602 on landscaping work, the profits from which were supposedly split between E. A. McIlhenny, world-famed naturalist and explorer, former Governor Leche and Dr. Smith. The fate of these suits rests with the courts, as does the fate of the $500,000 loans negotiated by Dr. Smith on the credit of the University and used by him for his disastrous wheat market transactions.

In June Paul M. Hebert, former dean of the Loyola University Law School and dean of the L. S. U. Law School, was named acting president of L. S. U. as successor to Dr. James M. Smith. He pledged himself to an administration characterized by strict economy and integrity.

In the autumn a hot political battle rocked the state in connection with the forthcoming gubernatorial election. The choice of the old Huey Long forces was the acting Governor Earl K. Long. Opposed to his candidacy were a group which included Sam Jones of Lake Charles, James H. Morrison of Hammond, James A. Noe of Ouachita — formerly a strong supporter of the late Senator Long — and Vincent Moseley of Opelousas. The first primary on January 16, 1940, resulted in a runoff between Long and Jones set for late in February.

State Officers.

The chief-officers of the state during 1939 were as follows; Governor, Earl K. Long; Lieutenant Governor, Coleman Lindsey; Secretary of State, E. A. Conway; Treasurer, A. P. Tugwell; Auditor, L. B. Baynard; Attorney General. Lessley P. Gardiner; Superintendent of Education, T. H. Harris.

United States Senators.

John H. Overton, Allen G. Ellender.