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,
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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.
The Prudential
INSURANCE COMPANY OF AMERICA
WESTERN HOME OFFICE LOS ANGELES
123 No. Main Street Roseburg, Oregon Teh 3-7491
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