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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (June 8, 1955)
4 The News-Review, Roseburg, Or. Wed., June 8, 195S Published Daily Exctpt Sunday by tha News-Review Company. Inc. Eularad ai Mean elaaa maclar Mar 1. !'. at Ida paal afllea at barf. Oratas, attar ael a( March 3. Ills. CHARLES V. STANTON, Editor and Managar Mambar of tho Associated Press, Oregon Newspaper Puoliihori ' . Association, tho Audit Bureau of Circulation! . Kaaralanta bf WEST-HOI.LIDAI CO., INC., alflcaa la Kiw lark, Cbleaia. Saa rraaclaea, Laa Aitgataa, Saallla, rarllana. Daavar SUBSCRIPTION BATES In Oregon B Mall Par laar, SUM! all manlba. I.SS; Ikraa aiaatha, SI.5S. OaliKa Orafaa Bj Mall Par aar, IIS.W; all aaaalha, I7.M-, tkraa aaanlka, IJ.sa. Br Nawa-Barlaw Carrlar Par Taar, IS. (la aaaca, laaa Ikaa aaa raar, far aaaalk, 11.(5. THE LUMBER GREMLIN Charles V, Stanton Some people doubtless are puzzled why competitive bids for federal timber often are so far out of line with ap praisals. In recent months many federal offerings have been sold at prices far in excess of the values fixed by the selling agency. This would lead to the assumption that federal agencies selling the timber are inefficient in de termining values. Writing under the title "Lumber Gremlin" in the cur rent issue of Oregon voter, Kalph T. Moore exp'ains wny this condition exists. He says, in part : : Those In the trade, however, recogniie the toundnass of present price formulae end know that tho antics of high income taxation ere to blame. Quick turn-over buys et certain loss are often good opereting policy. Uncle Sam finances half the loss end the belence is reduced to e negligible minimum by gains from the mechanics of added production volume. Postponement of e copltal-gains tax on a firm's own timber is often veiy profitable also. Thusly are principles of good economics grossly distorted by present high texation. It's a weird situation, neither conducive t the heelth of the lumber industry nor with any guiding precedent. All high stumpage buys ere not in eccord with the fore going. Some ere made possible by easy access, savings in oper eting costs eccrulng to fevorable locetion, end exceptionally high yields in veneer-type logs. These fectors are, of course, taken Into account by U. S. foresters when fixing stumpage values. Embarrassment when prices bid ere so much higher than those asked it mostly due to tho private circumtan.es of the bidder. The gremlin will continue to sneak In as long as income taxes are high. Tax Policies Unrealistic Sit in an informal gathering of businessmen for an hour and invariably the conversation turns to income taxes. Our complex income tax laws are so unrealistic that they often make it advantageous for a large business to incur losses to avoid high surtax brackets. Our income tiyc laws are based on principles of politics rather than principles of economics. The New Deal sold the public on the "Soak the Rich" policy of taxation. From an economic standpoint there never was a more fallacious policy. In the first place, the rich are not "soaked" because they can pass ..heir tax costs on to the consumer. So it is the small taxpayer who pays the taxes in the products he . buys. In the second place, the manager or operator of a big business often ab sorbs losses, curtails production, or takes other steps to keep under confiscatory surtaxes, excess profit tuxes and the other politically-inspired tax traps. These are n o t evasive tactics. They are covered by law. But laws fail to provide incentive for highest possible production or for creation of jobs. ....... Jobs Control Economy ... ' . ? ', ' Jobs are the most essential factor in economy. When , we have full employment and a scarce labor market', wag es are high, permitting a high level of buying power. With high buying power we have a hlcrh consumer demand for products, thus maintaining a high rate of production. It is a cycle fundamental to economy. , But when a man with money, who might Ixa investing risk capital in the creation of more jobs, finds that it is not profitable for him to expand his business, because he would move into higher tax brackets, potential jobs are lost. One of my good friends recently related to me how he had refused to replace a business destroyed by fire be cause the profits from that business, combined with the several other activities in which he was- engaged, were largely confiscated in taxes. The small returns to the own er from that business, didn't justify, in his mind, the amount of work involved in supervision. So he did not re build the plant and the 35 persons employed had to seek other jobs. This is not an isolated case. Many similar decisions could be cited. Here in Douglas County we are in nrgenl need of sec ondary wood manufacture to take care of materials now being wasted. But one of the handicaps to the develop ment of a secondary manufacturing industry is found in the federal tax structure which contains little encourage ment for investment of risk capital. The "Lumber Gremlin" mentioned by Kalph Muore seems to he working an overtime shift. - -MJEo,jL MESCALERO, N.M. .T Leaves from a touring note book : Many a Park Avenue father heaves a ;.igh at the ro.t of throwing a debutante ball for his daughter. But he'd break down in tears if he had to foot the bills for introducing her to society on an Apache Indian reserva tion, i A debutante hall lasts only a single evening under the while man's wan idea of wha, makes a good party. The Apachei have a more muscular and red blooded approach. When an Indian father announce he has a daughter who is ready to set up teepee-kreping, it isn't just a shindig for a few close Iricnds of the family. The whole "iie shows up. And the feasting and celebrat ing goes on for four t,ays and nights. When the Apa-hes have themselves a ball, tho like to; bounce sonic real eehiits off the!"1"' lw0 feathers iiim a fe mountain. male eagle, signalinn", her eu- The "coming of age eeremonv" 1 !r"ncr ',nl womanhood. If she of an Apache maiden, usuallv held llrh"t,he """I1 mt wJwd,n when she is 12 to u vesrs old, in wratchrr. as she nruslr t during the old days was a time when the !he entire four days snatch any nomadic tribes fulfilled their re-j 1al',1 o( her w' vv,lh ,wt i,n" ligious as well as sacin obliga-ln lions. She also must not look Up at the The rites drew the (andering I sly or be disobedient in a.iy way. groups together, gave lliem an oc i'nr 'ear of bringing rim clouds, casion to swap tall tales of tneiTo assure her of a good appetite hunt, exchange gossip and renew their ancient beliefs by 'tie mutual performance of rituals In the simple past when buffalo were plentiful Ihe warrixs in the Indian maiden's famiiv usually found it reasonably t:y to pro. i vide meat for a fonrdiy feast. Hut with ihe price of beef what it is today Ihe silitaiiun has (.hanged. Few Apache uiihers now could pirk up the tab Mr a d;,iich Iter's debut. So the tr.be it.iell throws the party. Only one girl. Iva Let- Enjady, M. will go through Ihe social ringer at this year's annual testi al, July H. As of old, she will have her own ceremonial leepec. Her nair will he washed with yucca root suds She will wear a buckv.in dress through life she will be led wild 'r"" marked with a cross of yellow 1 nnllftn Ch ....II l.A ....1 .me no, bi.-w .(niia.ni with the pollen. The maiden, whose buckskin dress is adorned wtlA tmv tia bells, will perform ceremonial I WASHINGTON - (NEA) When the record of the United Na tions Disarmament Commi ssion s subcommittee meetings in London last spring is made pul"c, it will reveal another amazing perform ance in Soviet double-talk. The lull story has not yet come out, hut certain highlights can bit jiven. This five-power meeting U.S., U.K., France, Canada and 1 he U.S.S.R. was held in co.npIistiCc with a U.N, General Ass?mbly re olution passed last fall. The Hi: sians voted for this resolution "it assumption was that Ihcy would cooperate on trying to li:id work able disarmament plans But the first proposal put for ward by Russian Ambassjdor An drei Gromyko at the February opening would have set back d . armament by ten years. On paper, the Russian proposal called for the dcslrucrio i of nil atomic weapons. This sou.ided all right in principle, but tie western powers delegates Wdnld to kr.'nv what would happen after tho A and H-bombs were destroyed. On close Questioning, it develop ed that what the Russians rcre DrODOsine was that tnn United Stales destroy it 4 sto.'kp.Ic of bombs and the Russians destroy their stockpile. But after that, holh sides would be free to no ahead and produce bombs as fast as 'bey wanted to. IT TOOK THUS ABEKS of frantic arguing to impress on ico- Power Co. Plans Application To Build Two Dams SPOKANE lift Tha Pacific Northwest Power Co. plans to sub mit an application in September to build the Pleasant Valley and Mountain Sheep dams on the Snake River in Idaho, President Kinsey Robinson said Tuesday. The company, a combine of four Private power firms, feels the leasant Valley site is "ideal" for a SOO-foot-high dam that eventual ly will generate 070.000 kilowatts of power, he said. F.ngineering studies indicate the Mountain Sheep site is not ideal but is economically feasible, he told a reporter. The combine plans a 2o() foot-high dam there for J67. 000 kilowatts. It will he either a concrete gravity or concrete arch dam. Robinson, who is also president of the Washington Water Power Co.. said WWP will call bids this month for projects worth 12 million dollars in connection with its pro posed Noxon Rapids Ham on ihe Clark Fork River in western Montana. The work will include relocation of 17'n miles of Northern Pacific railroad track and clearing 8.0W) acres for reservoir. The plant will eventually cost 85 million dollars and will produce 400.000 kilowatts. dances insula her tepee before an audience consisting of her family, close friends, and the more re-licimis-minded members of the trihe. Karh night young braves will perform the traditional "'Dance of the Mountain Gods." During Ute entire rx.,-,il little Ivy Lee must wear a grave, digm tied expression. She must partial larly beware of excessive laughter. The Apaches have a theory that too much laughing cau.ua prema ture wrinkling, a theory that now also seems prevalent among many lady palefaces who never saw reservation. In other days at the conclusion of the ceremonies tha happy father presented attendants and medicine men with four valuable 'lifts usually a male horse, i saddle, a tine piece of biick-km. ind some lotvacco. The gifts will probably be dif ferent now. Many Apaches, once am MX tae hardest-ridinj of Indian tribes, no longer would mow quite hat t do with a hoi re. Tn pi1r to ride herd on rneir cattle with, a jit or f-ick-up truck. Slip Stream - . don- myko the fact tha. this wjliIJ merely be ending one atomic arm race and starting another. It vodd be no disarmament a', jil. Then Gromyko was -ir alle ' us Russian delegate on llr! subcom mittee. Ambassador Jaob A. Ma lik took his place. It was obvious,, irom tiie slan that Malik had no instructions other- than to stall the eor.ierencc. The old Russian prop .sal fir a one-third cut in armed fn.-ces wai brought forward again. Western delegates questioned Malik lo know what base the troop stre'ijshs were to be cut from. They :oId w!:at U.S., British, French and Canadian forces were. Malik's only reply was to accuse the westerners of wanting u spy on the Russians by ri,id'.nij out how many troops they hid His final concession was In :' ott er a treaty agreeing to cut f:rcv one-third was signed then and then only would tha Russians ccmi forward with a statement of what strength they would cut u. THE Kir TO the who:e piiou? business, however, was found :n the Russian proposals fo." inspec tion. They oalled for teams to nr. located in specified airdromes sea ports, rail and highway junction and key munitions plants. This was the provision of the Ko rean cease-fire agreemmt vlih which U.N. forces have had bnt-i experiences. After the inspection teama were set up in the. speci'Td porta of entry, '.he Lom.nuni3ts and the Red arms build-up began again. Western delegates also j.uesi'iOR ed Malik about inspecting foctorlns which might not be listed as arms plants, but which might he making secret weapons on the sly. "Suppose we should want to in spect a button factory?" Uicy ask ed Malik in effect. In dead-pan seriousness he re plied, "Who would want to inspc:'. a button factory" And on this note the th.-ci-monla meeting broke up. ' The disarmament subcomm tice is reconvening in New York to t:J) up leftovers of the Londn.i meet ing. Its record will be transn I; ted to the U.N. General Assemb'y in September. And the G.A. will decide what should be done "Ml. Program For Lookout' Point Dam Announced I SALF.M i The program for the dedication of Lookout Point and ; Dexter dams on June 2S was an-1 I nounced Tuesday by Ivan K. ! j (lakes, engineer for the Willam-i ntte Basin Commission and chair-! man of the dam dedication com I mitlcc. , I The ceremonies will start at 2; i p. m., ' and will last about ll(! I hours. Speakers will be Assi. Secy. of the Army George H. Roderick: Gen. K. C. Itschner, assistant chief! 1 of Army Engineers for civil works; 1 land U. S. Rep. Harris Ellsworth 1 (R-Ore). I Gov. Paul Patterson will be mas , ter of ceremonies. ; The dams will be open for In- spection at 8:30 a. m. on that day . and visitors wiU bt taken unto the reservoirs behind the dams. ! The dams are 23 miles southeast ( of Kugene on the middle fork of the Willamette River. Car Dcaltrs Warned Against Prict Fixing WASHINGTON i Asst. Atty. i Gen. Stanley N. Barnes said Tues. day local associations of car leal era "may be engaged in conspiia- i cies to fix or pack prices for new ! automobiles." j If they "continue lo agree anion j themselves upon price, or anv ele , ment entering into the price of row ! automobiles, we shall prosecute," he addrd. He added "prosecutions of price fixing schemes are on the criminal side " j He told the Senate judiciary ant: ! monopoly subcommittee there . ! no evidence that the National ,i:o i mobile Dealers Assn. "has hat in 1 part in these price f.x nil i schemes." W P NEA Service, Inc. I) In The Day's News (Continued from Page One) tract. It is out of this tund that payments for layoff periods will be made. Keep in mind this word LAY OFF, It is important, it means layoffs ordered by the i-niployei. It doesn't mean just any layoff the employee decides to take tor rea sons of his own. The Ford Company's vice-president in charge of industrial rela tions, John Bugas, says tne com pany agreed to go alon with the guaranteed wage plans after con siderable debate among ford offi cials. He adds: , i "We think it is significant. We think our plan will be particularly useful in the AUTOMOBILE IN DUSTRY." , What he means is that the auto mobile industry has been a par ticularly seasonal industiy. It has changed its models at frequent in tervals, and while it has been tool ing up for new models it tias laid off large numbers of eiiployees. People buy more cars in certain seasons than in others, and enuring seasons when sales have been smaller it has been the custom of the industry to lay off nen.. What the new Ford a&reement adds up to is that herea.ter when men are laid off they will receive during the layoff period (up to half a year) a certain percentage of the wage they would have re ceived if they had been kept at work. What it will probably result In especially if General Motors and Chrysler come into the Plan is more stabilized production in the automobile industry. That is to say, fewer l.yottb. I think it will be generally con ceded that Hie new Ford agree ment especially if it Is gone along with by the rest of the auto mobile industry la a good sign for the future. It is a good sign because in this modern world sensible agreement is better than war, and strikes are industrial war. Like that of shooting war, their cost is very great. So far. we have dealt here witn the PRINCIPALS in the automo bile industry that is the em plovers and the workers. We mustn't forget that in this situa tion, as in everv similar situation, there is a THIRD PARTY'. The third party is th general consuming public. I think the ordinary car-buying public is entitled to hop.' Ihat the increased cost involved in this epochal settlement will 'oe offset bv INCREASED EFFICIENCY IN THE INDUSTRY and won't just be added to the price of cars. Merely jacking up thr price of the product to cover the 'ncreased cost of the wage settlement is IN FLATION and inflation is RAD in anv language. It does NOBODY any good. Douglas County Timbar Involved In Mill Sales MEDFORD Sale of Timber Products Co. and Veneer Products Co. and 70.000 acres of Jackson and Douglas county timherland to the Cyprus Mines Co. of Los An geles was announced here Tuesday. The purchase marks entry of Cyprus into the timber business after years of mining and oil oper ations. Purchase price was not dis closed. The two local firms had common ownership with Timber Products founded in 1918 as Tomlin liox Co. lis last president wa Floyd Hart who died last week. The Mudd family of Los Angeles ,s one of the Cyprus owners an.l also owns the Rogue River Or chard Co. here. Cyprus Mines was founded in :916 and its interests include cop per and pyrites on the island of Cyprus, iron ore in Peru and 'in ner, zinc and oil properties in th United States. Three Conventions TACOMA in Tare conventions of Lutheran churchmen were be ing held simultaneously Tuesday on the Pacific Lutheran College campus. Representatives of 10 congrega tions of the Pacific District of the Evangelical Lutheran Church and delegates from 87 congregations of the Northwesters District of the American Lutheran Church were in their second day of delibera tions. , The Women's Missionary Fed eration of the Pacific District of the E.L.C. opened its convention Tuesday. Dr. Alvin Rognesi, president of Luther Theological Seminary, St. Paul, Minn., will address a joint session of the three conventions Tuesday night. Negotiations to merge the Amei ican and Evangelical Lutheran Churches with two other Lutheran bodies have been under way for the past six years. The union ia expected to be completed within four years. Dr. H. L. Foss of Seattle told the Evangelical convention two new congregations, one at Tacoma and Committee Votes Immediate Work , On Atomic Sub ; WASHINGTON I - Despite ad- ministration objections, the' House Merchant Marine Commit tee voted Tuesday to authorize im mediate construction of two atomic-powered merchant marine ships. The committee endorsed Presi dent Eisenhower's nuclear "peace ship," then overrode administra tion objections and added author ity for a second nuclear-powered vessel designed to "promote the merchaot marine." Louis S. Rothschild, under-secre-tary of commerce for transporta tion, said the administration want ed work on the second vessel "de layed." He testified afier consult ing with unspecified adnvmstra tion officials. Chairman Bonner (D-NC) said the committee voted unanimously to combine the two projects in one bill. He told newsmen "the com mittee felt it had been bypassed" by requests made to other com mittees for funds to build the "peace ship" and said' "we want the prerogatives of the committee recognized." Bonner said the new bill, which goes soon to the House, does noi specify priority for what he called "two separate projects." He add ed that the committee "has no de sire to block the President's pro gram. " Body Of Youngster Found In Klickitat KLICIKTAT, Wash, (if) An angler Sunday found the body of one of the two Klickitat youngsters who disappeared while playing on the bank of the Klickitat River May It. The two were believed to have fallen into the river. The body of Terry Williams, 3 daughter of Wally Williams, was found by John Kelley, Bingen, as he was fishing about five mile3 downstream from the place where the children disappeared. StreiigVit Distillers National I fbgg The finest t ffesl in "71 years I jQg -"" ( I jT "wTf-'iSg BTRAIOHT BOURBON ' Pi "" handaome new paokage jj 0 f aiVSl 'iDj p'ou("y P''n '" this fcandtomt new J I yvlAr&aaaw package lh finit Caniury Club aver t, ?s I jr'k bottled in it 71 y( history. No i ". Uilljy 'nc'" I"'"' Enjoy it tonight) f ' Jm$jl 6 YEARS OLD 1 i ft 2 I ' If BO lno"'L," ln jl Of Lutherans Are the other at Concrete, were estab lished last year. He said that the Pacific North west District of the Evangelical Church last year raised $153.11? for church-wide benevolences in addition to local church expendi tures. He said that five new churches will be established in Washington this year and that a sixth will be established at Anchorage, Alaska. Two new dormitories were com pleted at Pacific Lutheran College at Parkland during the pa?t year and the school's total enrollment f PRESENTS WJ) 3 FREE LESSONS WITH USE OF ACCORDIAN Mail ar Once To Gene Smith's Accorriion Studio, 998 South Jaskson St. Roseburg, Oregon I am interested in taking your sample course of 3 free lessons with free use of accordion. NAME Child ADDRESS Teenager PHONE : Adult GENE SMITH'S ACCORDIAN STUDIO 993 South Jackson Street Roseburg, Oregon SAVE SAVE Bourbon Whiskey Be Products Corporation jajfi&SX Call us anytime . . , H 1 24-hour Service! 1 M SPECIALISTS IN REPAIR- f If WIRING-INSTALLATION I f , Be tun yo.tr eicc.iicjl job: a.e do s correctly! jf Let our skilled elecrriciani handle all your elee Kg m s trical problems. You'll appreciate our quick, ef mm ficitnt, lew-coit servfee. If I ( OReherd 3-S521 136 N. Jackson St. 1 Held In Tacoma reached an all time high of neatly 900.' LAUREL LODGE NO. 13 A! t. 4 A". M. STATED COMMUNICATION WED., JUNE 88:00 P.M. 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