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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (March 21, 1955)
4 Th Newt-Review, Roieburg, Ore. Mon, Mor. 21, 1955 , Published Dally Exctpl Sunday by Hi News-Review Company, Inc. ( h umiI oiiu Batter Mar 1. in: at the efiiee ei - ., ftetaeerf. Orasea. aadar act el Marca I. Ills. CHARLES V. STANTON, Editor and Managar Member of the Associated Prats, Oregon Nawspapar Publithart Association, th Audit Buroau of Circulations tliniMUl T WEST-HOLI.IDAT CO.. INC.. Ifien la Naw Tara. Cbleiia, u rraaalaee, Lea Aafalaa. ieatlla, rerllaaS. Otaur lUBIOUmON KATES la Orefaa Br Mall Tn Yaar. Slt.Hl til aaealei. tf.Ml Unl ejealaa, IS.1S. Oatilae Oratea Br Stall rtr Taar. SIlMi al eaeatba, l.tei Una asaalka, SS-ae. Br Nawi-BarUw Carrier Tn laar. IIS.OO lla aeraacal. ttaa Ikaa aaa raar. ear aaeatB. SI.SS. a ' MARKET ADVERTISING Charles V. Stanton : Congressional investigation into the affairs of the stock market has stirred up a hornet's nest. Although emphatic denial is made that the investiga tion was started as a political move to influence the 1956 presidential election, too much coincidence is involved to permit the political aspect to be discounted. , . Politicans taking: their cue from Americans for Demo cratic Action, the guiding- force of the socialistic wing of the Democrat Party, have been doing' their utmost to de stroy confidence in the nation's economy. Senator Morse, as an example, persistently has harped on Oregon's unem ployment, despite the fact that Oregon's timber and agri cultural industries naturally lead to seasonal unemploy ment, plus the fact that unemployment has been less during the current winter season than in any late year. Yet, lis tening to the mouthings of Oregon's senior senator, one would believe that residents of Oregon were facing starva tion and needed disaster relief. , Democrats have been demanding a $20 cut in income taxes charging that the nation's economy is being depress ed and that people must be given more money to spend as a means of upplng production. An aggressive propaganda campaign has been organized to convince the public that the country's farmers are facing bankruptcy. Depression Democratic Theme ' The Democratic Party has been exploiting the Great Depression for the past 25 years, and it would apu?ar they are preparing to crucify Herbert Hoover again in '56. It becomes a question as to which propaganda cam paign will be the more effective, the Democratic chargo that the Republican Party is the party of depression and big business, or the Republican accusations of graft, cor ruption. Communist leanings and bungling leveled Against the Democrats. While the Republicans are exploiting Democratic bun gling at Potsdam and Yalta, and are preparing to expose the surrender of China to the Reds, with responsibility placed at the door of the Democratic administration, the Democrats apparently are whittling away at public con fidence in the nation's economy. The effort seems design ed to create fear of another depression. The starting place for a scare campaign obviously is to be found in Wall Street. Wall street is the focal point of the nation's financial structure. It is there that the peo ple show the measure of their confidence in the nation's future. If they are confident of prosperous times, they buy stocks. If they lack confidence, they sell stocks. Recent- Upsurge In Buying Recent months have seen a remarkable buying trend. Democrats point to this situation as a sign that we are building up for another depression. They point out that the Great Depression was preceded by a very similar con dition. What both sides are either overlooking or are keeping under wraps is the real reason behind the market's buy ing trend. The stock market has been reorganized to favor the small investor. Securities are offered on an installment buying program. Opportunity has been provided for small monthly investments. ' 1 A survey last year showed approximately 7,500.000 U.S. stockholders in publicly - owned corporations. This number represents only a small fraction of potential buy ers. Inauguration of the installment buying program fol lowed. It has been backed bv an extensive paid advertis ing campaign. The public is being shown opportunities for buying income-paying securities. Advertising is directed toward investment rather than speculation. Great num bers of people, chiefly in the $5,000 - $10,000 income range, have been attracted by the chance to buy stocks through small monthly payments. This is a healthy rather than dangerous trend. Spread of ownership of corporations gives every share owner a personal interest in the concerns with which he has become identified. The sale of stocks and bonds provides capital for expansion, the creation of jobs, payrolls and produc tion. The current growth of buying on the stock market is good evidence of the power of educational advertising. It also reflects public confidence, in future national economy. That confidence can be impaired by political propaganda. That apparently is the aim of some of our politicians. When flexible farm price sup ports became the law, they were hailed in many quarters as a big stride toward a saner agricultural policy. Until then the nation had pur sued a policy of rigid, high price props that encouraged farmers to produce not alone for consumer needs but for government storage warehouses. They turned out crops for which there were no buyers but the government. Even with the now flexible sup ports, no one imagined the pain ful problem of surpluses would be solved overnight. It was realiied 1 that other approaches wore neces- ! sary, too. Production quotas, rie-i velopmerrt of new foreign and do-j mcstic markets, new uses for! larm products, these were seen as part of the picture. This hard - headed view made sense. Experience since the flex ible plan became policy shows (hat the problem doesn't yield easily. Wheat is an examDle. Though mil. put has been cut and drought has 1 made further inroads, U. S. farm- ers still will turn out enough wheal I in 1955 to assure a surnlua irf ". million bushels 8 more than a year's consumotion in ttiw coun try. In the face of this evidence, the House Agriculture Committee re. cenlly voted 26 to U for a bill! mi restore rue oin nign, rigid price props (90 per cent of parity) on the basic crops now under the flexible system including wheat, corn and cotton. Furthermore, the committee bill would hike price supports on dairy products, another group long plagued by surpluses, li'om the present 75 to 80 per cent of parity. Hackers of the rigid plan argue it is justified by the 10 per cent drop in farm prices during 1954. But actually what they propose would merely restore Hie old di lemma of the surpluses in its worst form, and put a real solu tion that much farther away. No sensible, fair - minded citi zen wants the farmer to suffer while his fellows prosper. Yet il is hard lo believe that even tlic farmer himself wants to gain pros perity through a system like the ! rigid support plan, which not only builds ruinous surpluses but costs the taxpayers twice (through sup port loans ana payments and stor-1 age charges) and the consumers i once (through high market pric-i est. The problem needs an Imagina tive, many-sued attack. All tin real friends of the farmer should jinn happily In that enterprise. But it is i dubious sort nf friend ship that would return the farm er to the old rigid setup under which he gains it the expense of the whole country. NO DAMAGE FROM FIRE A grass and brush fire believed started through carelessness was put out by Rosehurg Rural Fire Department members Sunday. They reported no damage from the fire, which burned on the side of Mt. Neho on the south end of Ballf Street around 6:15 p.m. HoJd On, Folks, We're Going Around a Cornerl Business Shows No Signs Of Being Worried Abour Stock Market Investigation NEW YORK Ufi If business was worried about the stock mar ket investigation this week, it didn't show it. While experts were testifying about the economy on Capitol Hill, tilings were really popping else where. For example: Auto production boomed as nev er before. U.S. factories turned out 201,339 cars and trucks an alltime record. New highs were reported for out put of paperboard and crude oil. Steel production estimated at 92ij per cent of capacity was close to its highest level in nearly two years. Rail freight traffic and electric power output, compared with a year ago, showed signif cant increases. Shoppers crowded stores, boost ing total retail sales substantially above yenr-ago volume. Depart ment store sales, at latest count, were running 11 per cent better than last year. Even the slock market showed new signs of life. Stock averages began moving up again, recover ing some of the ground lost in the recent sharp decline. Among bank executives and busi ness leaders there were more ex pressions of confidence, and fewer warnings about people loading themselves up with debt. The con sensus seemed to be: Business should keep right on humming at least through June. After that, Morse, Neuberger Backed Democrat Tax-Cut Proposal By A. ROBERT SMITH News-Review Correspondent WASHINGTON Oregon's two Democratic senators stuck togeth er in Uie Senate tax battle last week, voting for the unsuccessful Democratic plan to cut taxes for all taxpayers but to repeal the stock dividend and depreciation allowances of last year. Sen. Wayne Morse argued that the national economy is tending to he deflationary, rather than in flationary, and that more purchas ing power would be the best cure. He passed out to each senator reprints of a U.S. News -im! World Report story which indicated pric es arc (ailing because people aren't buying in proportion to the nation's productive capacity. Morse said for this reason Uie Senate should adopt the Demcci'.i tic plan by which: (1) each tax payer would Met a S'.'O lax reduc ion plus $10 for each dependent: (2) accelerated amortization o business investments allowed in the 1954 tax bill would be repeal ed: (3) the slock dividend and ex clusion and credit adopted last year would be repealed. Noting thai President Eisenhow er had called It "irresponsible" of the Democrats to propose thia lax reduction in face ot the unbal anced budget, Morse observed that last year the Republican 3rd Con gress put through a tax cut bill backed by the administration and described as good for the econ omy. Morse said he thought Ihe (',01' tax plan had been too leavi ly weighted "as to encourage vas. accumulations of capital on tne theory that if the top is prosper ous, some share of the prosperity will tricKic flown to others. "If It is political motivation to attempt to get the great majority of our people a square deal tax wise, then 1 am pol tirallv motiva ted and proud of it," he said. "I fail to understand," opened Noubcrgcr. "how the tax reduc tions granted in 1954 thy the COP), when there was a substantial de ficit, were evidences nf t.itrsman ship, while a different Kind of tax reductions in 1955 (proposed hv Democrats), when there is still a deficit is call fiscal irresponsi bility." After listening to GOP leader Know-land charge Democrits with inciting economic classes against you'll probably see a slowdown, but business will slay ahead of 1954. You could take a cue trom the Federal Reserve Board's latest survey of consumer finances. This is what it showed: Mo-e people are planning to buy furniture and appliances than in early 1954. And more people arc in the market for houses than at any lime since 1948, when the survey first was started. The survey made one finding thai will probably be challenged by the auto manufacturers It said fewer people are planning to buy new cars. But, it pointed out, the average consumer bent on get ting a new automobile expects to spend a little more for it ($2,800 vs. $2,500 last year). Businessmen generally look for a five per cent rise in sales this year Last year sales and capital outlays slipped five per cent. Apparently there's still no let down in sight in the crackling pro duction pace of the auto makers. Sales are on Ihe upbeat, loo. Gen eral Motors says its dealers chalked up new sales records for the first ten days of March "and the market for both new and used cars continues to show great strength." Last month US. dealers sold 548,000 new cars a gain of 37 per cent over February 1954 one another on Ihe tax issue, Neu berger responded: "No one wants lo array class against class. Yet I wonder what it is that arrays class against class. Is it the word or the deed? Is il a tax law which grants dis proportionate benefits to one class of people that arrays class against class? Or is it merely someone who points out that situation?" Both Oregon senators voted on the losing Democratic side which lost 50-14 when five southern De mocrats lined up with the Repub licans. At the request of Chairman Byrd of the Finance Committee, Neuber ger retrained from pressing amendments to the tax bill de signed to increase the U S. tax on gasoline from two to three cents and to exempt from this lax fish ermen who use the gas only in bonis. Byrd promised vomnvttee action on them later. Neuberger argued the increased gas tax is desirable to help pay for the upcoming $:5 billion highway aid program He said as advanc ed hy the administration the road program would be financed by gas taxes and revenue bonds. He said since the two cent pas tax would bring in only $4.75 billion, the balance of $20.25 billion would have lo come from revenue bonds on which a three per cent interest rate for 30 years would add $11.5 billion in interest charges to th; total costs. Neuberger. who is on the Pub lic Works Committee which is I working on Ihe road program. said such a financial plan woutci mean for every dollar spent on paving, 55 cents would go lo banks and investment houses in interest. His proposal for exempting fish ermen us based on the argument that they do not use highways in consumption of the gas. so they shouldn't have to pay the federal gas tax which is used to help fi nance roads. ICE RINK PROPOSED PORTLAND A $300,000 recreational ice skating arena was proposed as a city project Friday bv City Commissioner Stanley tarl. Income from the arena would cover the cost of the structure and equipment for 20 years, pay al! operational costs arid still show an annual profit, Earl said. JSaU" Jama, be. fuaMii.ai.a. in la; -"j ""Bm Local Red Cross Chapter Faces Critical Situation ROSEBURG The Douglas County Chapter of the American Red Cross faces a critical situa tion which if not corrected will re sult in surrender of its charter. Surrender of the charier means that Ihe chapter ceases to func tion and its services will not be available to the community. The wife or family of a man on active military service will no longer have available emergency communication service a serv ice which only the Red Cross can provide. No longer can that wife or family turn to the Red Cross in time of need. Arrangements fur emergency leave, temporary finan cial assistance, emergency hospi talization, all ot the many services provided for men on acMve dutv and their families, will cease. First aid, water safety trainin?, disaster preparedness, mass care and shel ter under civil defense, Grey Lady service to the hoioitiils. blood procurement and distribution, to mention some of the local Red Cross services, will all go by the board. Were Ihe Red Cross Chapter to close tomorrow there would be a grca outcry in this county for its reopening. Of that 1 am certain. Wouldn't it be better 'o lock the door before the horse is stolen? The Red Cross is you and me and everybody else who believes that it is the Christian thing to help your neighbor in lime of need. In order lo 'continue functioning and erase its deficit your local chapter must raise $111,500 during this March campaign. 1: can be done, however, only by calling on the potential contributors. If every women's group, every service club, every PTA, every organization in Roscburg would furnish the names of a low Mem bers willing to make five or more calls, the job can be done. It can not be done by a few people, nor should the responsibility be placed on Ihe shoulders of a few people If organizations or individuals feel that community responsibility should be the concern of all cit izens, I hope they will come for ward by calling Orchaid 3-3255. the Douglas County Red Cross. The fate of your Douglas County Chapter Is in your hands. What are you going to do about it? CURTIS T BEECHER Brig. Gen. U.S.M.C, Ret. Roscburg, Ore. David Simpson Featured Speaker At Reedsport David B. Simpson, vice president and secretary of the Portland realty management firm o Norris, Beggs and Simpson, will be the featured speaker at the annual : banquet of the Lower Umpqua ; Chamber of Commerce Thursday, I March 24. The banquet will start at 7:15 p m. at the Reedsport Union High School. I Simpson, a recognized authority on regional and industrial dcvel ' opment, is past president of the Portland Really Board, and of the National Assn. of Real Estate j Boards. He served two terms as president of the Portland Chamber of Commerce, and was named Portland's first citizen n Lai). Choices for the annual Ixwer Umpqua area "man and woman of I the year" awards will be announc- ed at the banquet. The awnr's arc made to citizens selected by an anonymous committee from popu lar nominations for outstanding aervke to Ihe community. I Entertainment features will be I provided. Two Republicans WASHINGTON I Two Repub lican senators said Saturday that President Eisenhower is doing Uie right thing politically in delaying any answer to requests that he seek a second term in the White House. "He certainly should not an nounce his plans before next March, about a year from now," Sen. Aiken (R-Vt), veteran Eisen hower supporter, said in an inter view. , Aiken said he hopes and believes that the President wul run again, but added: "As soon as he makes public a decision, he will be the tai-jet for scurrilous attacks. And not all of them will be by Democrats." Sen. Mundt (R-SD) agreed with Aiken, saying in a separate inter view that no matter what the de e i s i o n, President Eisenhower should delay an anouncement Teen-Agers Don't All Think They're Of Voting Age SALEM uPl All teen-agers don't think the voting age should be reduced from 21 years to 18. They divided sharply on the question Saturday at a Senate Resolutions Conynittee hearing on a proposed constitutional amend ment for voting at 18. After Sen. Mark Hatfield, Salem, sponsor of the bill, argued that there is no logical reason for a 21-year limit, the young people started their argument. Barbara Mahoney, 16, Hermiston High School junior, brought up the Issue of taxation without represen tation. To prove her point, she said that many 18-year-olds are paying income and property taxes. But Dave Barrows, 19, Berkeley, alif., a sophomore at Willamette University, declared that the 18-year-olds shouldn't vote unless they also are assigned other rights and duties, such as signing contracts and serving on juries. He said they also should be made liable under the law for actions. Kent Hoteling. 19, Eugene, a sophomore at Willamette, opposed the bill, too. He questioned whether people had enough sense to vote intelligently at the age of 21. A statement that teen-agers don't have sound judgment was made by Gordon MacPherson, 18, senior at Willamina High School. The measure would amend the Constitution. If the Legislature passed it, the people would vote on it at tne general election in 1956. Sen. Hatfield said a poll of Oregon high school students showed that 61 per cent of 5,000 boys and girls favor it. Of 610 of their teachers, 53 per cent were for it. In The Day's News (Continued from Page One) ing trouble in the eye. It is facing a deficit of about 60 million dol lars for the next biennium. A bi ennium is two years. We do our financing for two years because the Oregon legislature meets ev ery other year in the odd-numbered years. The reason a 60 million dollar deficit has to be faced is that the budget for the next two years (the "budget" is the estimated cost of the services the people want Uie state to provide) calls for 60 mil lion dollars more than present tax sources are expected to provide in the way of revenue. This is the big question: Where is the money to come from? , This is the answer: It will have to come out of the pockets of the people. There is no oilier place for tax money to come from. We talk a lot in these days about what government GIVES to the people. Let's keep this clear in our minds: Whatever government GIVES TO THE PEOPLE it must first TAKE OUT OF THE POCKETS OF THE PEOPLE. With that out of Hie way, this question arises: What SYSTEM shall we use to take Uie money out of the pockets of the people? A realistic answer to that ques tion wa given a long time ago by some straight-talking tax collector, whose name has been lost down through the centuries. He said: "That system of taxsrtion is best which gets the most feathers from the goose with the least squawk ing." That's what the legislature is trying to figure out now. At this point I'd like to remark that I personally prefer Uie sales tax system. It pulls the fcathen out of me with the least pain. It pulls them out one at a time in stead of in BUNCHES. Somebody can pull one hair out of my head at a time and I'll hardly notice it, but if somebody should pull a hand ful of hair out all at once Id squawk loudly. I pay my sales' tax a little at a time. So my snare of the sales tax is always PAID UP. There is no worry about having to dig up a BIG CHUNK aU at once. Thai hurts. Here in Oregon trie sales tax 11 supposed to he a wicked thing with which we will have no truck. That is an old wives tale. We HAVE a sales tax. By means of a sales tax, we raise the largest single amount of money raised by the state of Ore gonthe money with which to build and maintain our highways. We pay it i few cents at time whenever we buy gasoline. I like it that way, because it is easy to pay in these small installments ! and is always PAID UP. If each i of us had to dig up his share of ! the cost of constructing and main I laming Orcgons highways in one lump, it would hurt. I Under the sales tax system, It doesnt hurt anywhere near is I much. That's why I like it. Back Eisenhower i..iii waP nJAi trip next session of Congress gets under way next year." "I'm convinced that he is going to run again," Mundt said. "But What Services Are Available For Handicapped Children CRIPPLED CHILDREN'S HOSPITAL SCHOOL, Eugene, Ore. The only facility of it's type in the Hate far children fram 3 to IS under one roof. Children receive physical therapy and ipeech train- ina along with regular school coune. Regular school hours and holidays ore observed. CAMP EASTER SEAL, Summer camp of Tenmile Lake meets special demands for summer recreation for crippled children. Use your Easter Seals. Send your money in Care of your local Post Office. Adr. Sponiored by Umpqua Retail Gasoline Dealers Ann.', Inc., and Douglas Co. Are Oil Information Committee . Who'd support your child if you weren't here? Protect vour child's future with Prudential life insurance. 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