4 The Newt-Review, Roseburg, Or. Frt., April 21, 19S0
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Published Dilly Kxospt Sunday I v the .
. . , . New-'evle Company, Inc.
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CHARLIa V. STANTON COWIN L. KNAP
Editor Va" Manage
Member of the Aasooletsd Prase, Oregon Newspaper Publlehere
Association, the Audit Bureau of Circulation
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WHO IS BEING SOAKED?
, By CHARLES V. STANTON
Application by the Pacific Telephone and Telegraph Co.
for a third increase in rates furnishes a good example of
the workings of socialist government. Because the people
of this: country have been led into endorsement of "soaK
the rich" policies of taxation, and discouragement of "big
business," our general economic structure has become scri
ously weakened.
Under the long-practiced system of free enterprise, large
corporations and utilities have financed expansion with
money raised by sale of stocks and bonds to the general
public. Before a concern can sell its stocks and bonds It
must have a record of profits sufficiently high to attract
the small investor looking for securities yielding income.
Until recently, telephone company stocks and bonds have
had high market value. They were eagerly sought by in
vestors because they paid a good rate of income. But tele.
phone company profits have been steadily declining until
last year they were lower than even in the most severe
depression years, according to company reports.
Because of the low rate of profits, it is asserted, the
telephone company stocks and bonds, needed to finance new
construction, have not been attractive to investors. Offer
ings have gone begging on the stock market. Consequently
the company Is seeking higher rates so it can interest more
people in its securities. Unless it can sell its stocks and
bonds, the company asserts, it cannot finance the tremen
dous construction program now in progress.
Claims Art Disputtd
Naturally, differences of opinion exist concerning the
company's financial needs. The state public utilities com-
misssioner, In a statement carried by news wires, contends
earnings in Oregon are "fair." Labor representatives point
to millions in dollar profits. The public, however, should
consider the "rate" of profit rather than "volume." The
telephone company claims earnings amounted to slightly
more than 2 percent, although the state commissioner says
earnings in Oregon during the last six months of 1949
exceeded 5 percent
We are not attempting to justify the telephone company's
position, nor are we critical of its request. It will take
considerable study to determine the facts.
It is evident that the telephone industry, nationally and
locally, is spending many millions of dollars. Additional
facilities are being installed all over the country to carry
radio and television circuits. Long distance communications
service is being improved. Here in Western Oregon the
rapid population growth has necessitated heavy capital
outlay. In the Roscburg area the company is preparing to
witch to dial system. It also is endeavoring to revamp
exchanges in neighboring communities, extend dial service
Into suburban and rural areas within a radius of about 20
miles from Roseburg, and make other improvements. All
this requires money. To raise the money the company must
sell stocks and bonds. To sell stocks and bonds it must show
the investor a fair rate of return. But so much income goes
out in taxes, labor costs, materials, etc., that earnings are
at an all-time low, the company claims.
Who Suffers Most?
Were it not for the "soak the rich" policies of taxation,
the heavy tax rate against corporations, the discouragement
of profits, and other policies of socialistic government, the
telephone company probably would have earnings attractive
to investors without a rate increase. Ferhnps the company
is exaggerating its need. We don't know. But the principle
is quite evident. The trend of government to tax away
profits and break big business into fractions is well
established.
How do these policies work out in practice?
If the telephone company succeeds in getting another rate
increase, who pays the bill? The customer, of course. Not
only docs he pay more for his telephone service, but the
government also collects 15 percent of the amount of in
crease in additional excise taxes.
Who, then, is being soaked? Is it the telephone company,
which simply passes on the cost to its customers?
Isn't it about time we began to get wise to the fact that
these socialistic theories of soaking the rich, throttling big
business and taxing away profits are only adding to the
financial troubles of John Q. Public?
In the Day's News
(Continued irom Page One)
Community Grange Meets
At Sutherlin Hall
Sutherlln Community Grange mot
at the grange hall west o( town
Wednesday evening, April 12, for a
regular session. Worthy Maxtor
Charlra Walil oresidrd during the
meeting with 28 members present.
The (irst and second degree obli
gations were given to John and
Lenor Horn and Teresa and Russel
Seymour.
Agriculture Chairman 0 r v 1 1 1 e
French reported on truck garden
crops. Home Kronomics Chairman
Mrs. Phreda Whal reported that
the public penny supper will be
Saturday, April 22, at 6:90 p.m. j
mere wiu ue m program ana social
hour.
Mrs. Annette Wilson was reported
as ill.
Lecturers were Mrs. Nellie Pe
terson and Mrs. Marjorie Sheets.
At a late hour pie and coffee
were served by the refreshments
committee, Mrs. Irma Cornish,
Mrs. Nellie Peterson and Mrs. Mar.
jorie Sheet.
Camp Fire Girls
Want Directors
Applications for positions as coun
sellors at Camp Tyee, Douglas
county Camp Kir Girls' camp,
will be accepted at the Camp Fire
office in Miller's Mercantile store,
according to Miss Barbara Lou
Kitt, executive director.
Of the 11 positions open four are
on a salaried basis. Needed are a
registered nurse, first and second
cook, and a water front director
who must hold a water safety in
structor card.
Also needed are a nature craft
counsellor and assistant; a camp
craft instructor and assistant;
k.nl.F.H i.. ......... .-J -..-....
sports and games instructor ami
assistant and a dramatics counsel
lor. These are on a volunteer basis
with board and room furnished.
Camp Tyee summer sessions be
gin July 9 for four weeks and
counsellors will go to camp three
days early for pre-camp training.
Miss Kitt said those interested are
asked to apply for four weeks but
announced in the past half year the
deaths of IS Russian generals and
admirals some of them, Ryan
adds, "rather young."..
Mr. Ryan wonders if the Kremlin
may be carrying on soother
purge."
a
WHAT is a purge
"Well, they've been fairly com
mon in Russia. The last big one was
In the mid-thirties, when a large
number of generals and admirals
were whisked off to firing squads.
By this pleasant little device,
Stalin managed to forestall AN
ATTEMPT TO SEIZE POWER
FROM HJM.
Purges and dictatorships, you
will probably recall, go together
like ham and eggs. Hitler sprung
several of them always with the
idea of getting rid of people, who,
he thought, might be toying with
the idea of GETTING RID OF
HITLER.
The idea of the ruling dictator is
always to PURGE FIRST.
YOU will note, naturally, the
similarity between these purge
and what used to happen in Chi
cago in the days when the munici
pal authorities had more or less
abdicated and turned the town
over to the gangsters.
When the top gangster began to
suspect that some of the under
lings were mulling the idea of
purging, with the thrifty thought
of getting bis share of the swag,
he started purging.
These purgings were often done
with machine guns in the open
streets.
- yf tS
By VuiAawtf 8. Martini
THE usual rule is for the ruling
dictator to purge first. There
was notable exception in Louis
iana. Down there, a few years
back, Iluey Long was a dictator of
sorts. He had armed bodyguards
and all the rest of the trimmings.
In his case, bis OPPONENTS
purged first.
Huey's body lies in a grave in
the grounds of the stale capital at
Baton Rouge. When I last saw it.
some years ago, it was targeted
spectacularly by a huge spotlight
place' high up on the tower of
Louisiana's skyscraper capitol
building. Huey's planting there was
then comparatively recent, and the
blaring finger of light that poured
down on his tomb illuminated strik
ingly the flowers that his followers
(or his henchmen, if you prefer
that term) brought every day to
his bier.
!t was an imposing sight.
WE have a comforting saying in
this country that DICTATOR
SHIPS CANT HAPPEN HERE. I
think that is true. Still, the fact
remains that Huey Long did bap
pen to Louisiana.
"Almost everyone interested in
preserving the American system
is agreed that the school bold the
key to the economic course the
country will follow" I quote by
permission from Electrical West,
a McGraw-Hill publication, Los
Angeles.
"Obviously one of the best ways
of teaching youngsters something
about business is to let them get
into business and face some of
the problems that confront bus
inessmen. Some high school kids
in an Eastern city did that very
thing . . . Having trouble they
went td a business executive for
help . . . Out of that simple ease
grew the JUNIOR ACHIEVEMENT
movement which now involves
thousands of companies throughout
the East and Middle West
"A group of high school young
sters with some practical ideas
form a company . . . estimate
capital requirements . . . sell stock
at maximum price of 50 cents per
share. Set up corporate organi
zation and elect officers.
"If they require machinery they
invest soma of their capital stock
in machinery and tools . . . some
also for working funds. In all
ecutive.
"Then to continue the Elec
trical West article which I am
condensing if the operations war
rant, they also get help in pro
duction techniques from an expert;
in accounting from an accountant,
and in sales from a sales exec
utive. The latter people are usual
ly junior ' executives in some of
the larger companies in the com
munity. "The companies (formed by the
high school students) operate for
a school year and then are liqui
dated . . . Best of all they learn
how tough it Is to make a busi
ness, function. They learn .soon
the way to accnmlate is to work
and that the public wants value
received." .
A boy in a New Jersey town
who worked for ten cent an hour,
two hour an afternoon, thought
they ought to strike. (Hi bus fare
cost him what he was making).
They made him treasurer of the
company and he forgot all about
striking when he worked up the
first balance sheet."
'Even the sponsors benefit"
Electrical West concluded. "They
have to study to keep ahead of
this they receive counsel and the students . . .which results in
guidance from a top business ex-' promotions for themselves."
LETTERS
to the Editor
BIOCK-MINTINO CLASS
Foresees No Benefit From
Commercial Airport
ROSEBURG Inasmuch as we
are faced with an election in the
near future on a proposed- bond
issue for a municipal airport I
would like to take this occasion to
discuss the issue.
We hsve been told we need an
airport adequate to handle com
mercial planes. I would like to
ask why?
1 for one like to see where there
will be some return for monies in
vested and ' I fail to see any re
turn for a large majority of tax
payers in buying an airport that
will accommodate commercial
planes.
It is easy to see where local
businessmen desire the convenience
of air travel but to the workers
in the lower income brackets I
can see no advantage. We cannot
afford the luxury of air travel even
if we can afford to go some place.
Civic progress is greatly to be
desired but we should be sure we
can afTord to pay the bill before
going all out.
There has been much said re
cently about the school situation
and 1 believe everyone realizes that
we are faced with a growing prob
lem in financing an adequate edu
cational program for our children
We. could use many times the
amount of the proposed airport
bond issue for schools and still
leave much to be desired.
Also while Roseburg is growing
fast much of the population is in
newly annexed areas. These areas
need, and I assume want, sani
tary facilities and are faced with
taxation to get them.
I believe we should consider se
curing adequate educational and
The MCA craft class la now sanitary (abilities before assuming
working on linoleum block. nnntinff
Any adult interested in this craft
is invited to come and take part on
Tuesday at T:30 p m. in the Metho
dist church social rooms, accord
ing to Rev. Walter A. MacArthur.
director of the program.
two-week applications wilt also be
accepted.
a debt for an airport
Roseburg has long needed a pub
lic rest loom. This should come
before airports.
It is easy to ssy of each issue
that M will only be a small addi
tional tax but put all together they
add up considerably.
If we get too civic minded all
at once we will be in tune with
the currently popular song and
have "the dollar down easy month
ly payment blues."
I would also like to take issue
with a recent editorial of yours
where you said the public should
subsidize air travel the same as
railroads and buses are subsidized.
The original land grant for rail
roads called for the selling to home
builders of this land for $2.50 per
acre. But how much was sold at
this price? It became such a steal
that the government sued to re
claim the land.
On paying for highways. It ia
done through gasoline tax and al
most all families have cars and
get the use of the highways.
I for one want to see the best
educational program possible and
also a sewage system for our part
of town, but as a "working stiff"
I cannot see my income and prop
erty value covering an airport from
which I will receive no benefit.
RAY LEA
Roseburg, Oregon
Interest Cut On
Home Mortgages
To Spur Housing
WASHINGTON, April H.-0B
The government is setting out to
make home mortgage credit
cheaper, a well more plentiful.
Effective with applications filed
Monday, the top interest rate on
new Federal Housing administra
tion mortgage will be 4V percent.
or V of one percent leu than here-j
IaIam
The rate reduction wa an
nounced last night after President
Truman aigned a bill providing for
an expansion of nearly $4.000,000,-!
000 in the federal housing program.
Chairman Mavbank (DSC) of
the senate banking committee said
the move (1) will save new home
owners at least $5,000,000 a year
and (2) "should reduce pressure
ior liicreasea rents.
Moving the' top rate on FHA
insured mortgagea from 4' per
cent to Wt cut out half the premium
such mortgages get above the 4
percent rate on mortgages guar
anteed by the Veterans adminis
tration. But the VA said it will
stand pat on it 4 percent figure.
Persons getting FHA insurance
on mortgagea will continue to be
charged an additional to of one
percent as an insurance premium,
so the overall rate they pay will
be t percent a year against S
in the past.
Nevertheless, thsy will be saving
25 cents a year on each $100 of
their morgages equivalent to
$12.50 a year in all on a $5,000
mortgage, for example.
No Lending Slump Seen
FHA Commissioner Franklin D.
Richards, in announcing the rate
reduction showed confidence that
lenders will continue putting up
money for FHA mortcag.s. desDite
the cut in the interest return to
them.
The FHA neither builds houses
nor makes loans on them itself. In
insuring housing loan made bv
banks and other private lenders,
it sets a ceiling on mortgage in
terest rates and insists on certain
standards cf construction.
The law signed bv President Tru
man added $2,500,000,000 to author
ity of the FHA to insure home
mortgages. The objective: to mske
homes easier to buy and rental
quarters easier to find.
Among other things, the law also
proviaea kao.uuu.uoo more to the
reaerai national Mortgage asso
ciation to buy mortgages from
private lenders so the latter, in
turn, can re-lend the money to new
applicants.-
WASHING MACHINES FOR RENT
Hp?) ' Famous Brand I
Washing Machines '
For Rent, Reasonable J
Bergh's Appliance Servici
1200 S. Stephen St.
" ROTARY ELECTS
At the last meeting of the board
of directors, the following were
elected officers of the Roseburg
Rntarv Huh- Walt Mallnrv am.!.
dent, Arlo Jacklin, vice-president.
Story lies, re-elected secretary, and
Vic Micclli, re-elected treasurer.
Term of office is one year.
philanthropy of our saloonkeepers
and to besmirch their noble pro
fession? i
la fact, I very much agree that
this benefactor of humanity, be
cause of its athletic sponsorship,
should receive its just apprecia
tion and just reward in advertising
and publicity of every kind. Es
pecially those sponsord, unsung he
roes who, after a few hour of
pep talks in the local- tavern, go
home and beat up their wives and
children. Also those teen-agers who
under its encouragement rise above
all moral and spiritual restraints.
And tflose weaving motorists who
make highway travel auch an in
teresting speculation.
Heroes all and may God have
mercy on us all!
HERMAN R. LARSON
Oakland, Ore.
PHONE 100
'between 6:15 and 7
p. m., if you have not
received your News
Review. Ask for Harold Mobley
News Display Of Churches
Draws Appreciation
ROSEBl'RG We. of the Church
of the Nararane, wish to take this
means of thanking the editor, man
agement, and staff for the beauti
ful display of the Roseburg
churches on Saturday, April 8. We
feel this was done in the spirit of
the Esster season and with a sin
cere desire to show a friendly at
titude toward the several churches.
ROSEBl'RG CHVRl'H
OF THE NAZARENK
Forrest Hdl. Pastor
Delusion Vanishes In
Factual Observations ;
OAKLAND After reading your
recent editorial concerning decep
tion. I must confess that I. for one.
have been living under a delusion
these many years. Since childhood
I have been taught to svmbolize
the booze industry as being horned
and having a forked tail: and now
to be so definitely told that instead
it merits the robes of a Sir Gala
had. And who am I but a simple
farmer, and not even the son of a
prophet, to question the edict as
given out by one with the back
ground of religious experience and
leadership such as our editorialist
enjoyed ; to question the asserted .
The answers to every
Insurance) problem-
By KEN BAILEY
QUESTION: Some friends of ours
hod on accident with their cor but
their insurance compony refused to
pay their claim on the ground that
the application .for the policy did
not correctly state how the car wos
to be used. Our friends never oc
tually signed ony application so
how could the compony refuse to
poy?
ANSWER: It Isn't necessary for
the insured to octualfy sign the
application to become responsible
for the statements mode therein.
His occeptonce of the policy when
it Is issued shows his endorsement
of statements mode in tne appli
cation. If you'll trddrve vour own tneur
rtce quMtiona to this office, well
try to fire you the torrwt answer
tind there will be ae chart or oolt
Itoa of a kind.
KEN BAILEY
INSURANCE AGENCY
315 Pacific Bldg. Phone 39S
General Logging Supplies
f) Skookum Blocks
0 Mall Power Saw
Lincoln Welders
Coot King Donkty
Waco Wheel Arcl.
Wire Rope
Disston Power Sawi
Lincoln Welding Rod
' O Expert Sled atui.jer
Available Anytime
0 Splicing and Ferrule
Work
Expert Saw Mechanic
Pitco of Roseburg, Ltd.
1819 N.Stephens
haaa 733-1 Ivaaiaas Mmm 1241.
FOR . . .
SERVICE ....
EXPERIENCE . . .
CO-OPERATION. . .
Invesrig-' j the services offered by your "Home
owned, Home-operated" bank. Money left on
deposit with us remains in DOUGLAS COUN
TY All facilities available for your individual
needs.
Douglas County State Bank
Member. Federal Deposit Insurance Corp'
1! 1) II j
ANB in THIS room, the decorator
CAMOUFLAGED IT SO YOU'D NEVER KNOW
W HAVE ONLY ONE WALL SOCK"'"
Don't everleed your electric circuits. When yew
build er modernise provide ADIQUATI WIRINO.
' See Your Electrical Contractor
You'll Save Money
and
Love It!"
;''.' 1 '" . i
i V- i
Miss Jean Wiegartd
Crosley Home Economist
tells you how
to prepare food for
freezing
Thursday, April 27
7:30 P. M.
on the main floor
at
HI N. Jackson
Phone 330
Pertotwlized Service jor the Home