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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Dec. 23, 1922)
6 ' OLD STATE RIGHTS FAST DISAPPEARING former status and. should - guard against further encroachment. "The people of Maine are willing and able to care- for their own moth era and children and have faith to believe that Maine men and women will do this rather than accept so called gratuities from a federal bu reau. Already we are overburdened with federal Interference and con trol and our citizens and industries are hampered by federal inspectors and other officials from Washing ton. "In years gone by the state of Maine has not hesitated to stand for great principles and it is well for the 44 states that haye accepted the Sheppard-Towner bill to know that Maine 'neither asks for nor for the time being' accepts federal aid? for its mothers and children." CAUTI MARKINB wniTgt'ririiaafrTr'iirii., AMERICAN MOVES fel. Thrill wifh the spoif of kins - while the winner romps home ahead , i n the greatest racing drama ever made - m Power of Federal Govern ment Is Growing Daily. Reparation Plan Far From ' Definite Form. m BOND TAX ISSUE PLAIN EXPERTS ARE SUGGESTED EDM'S KILL HELD UP Opposition to President's Sugges tion Canses Surprise; Maine Protest-Is Recalled. Board Would Report Findings on Economic Ability of Germany " to Pay Allied Bills. WOMAX CREATES SENSATION IN NORTHCLtFFE CASE. BY MARK SULLIVAN. (Copyright by New York Evening Post, Inc. Published by Arrangement.) WASHINGTON, D. C. Dec. 22. The opposition In congress to President Harding's suggestion that 1onds issued by states and cities should be subject to the federal income tax, the same as bonds issued by ordinary business corpora tions, appears to have surprised the sponsors of the measure, but most of usi from the beginning realized it was inherent in the situa tion, because there is nothing on the horizon that is much clearer than a revival of the old state rights issue. . , The heart of the antagonism to Mr. Harding's proposal lies in the fact that it goes probably farther in the direction of invasion of state rights than any' of the many steps that have been taken in a century of aggressive crowding on the Bart of the federal government. , The right of a state to borrow money on such term as it pleases, and to tax its citizens to pay the principal and interest of these borrowings on it3 own terms is about as -fundamental as anything could be. The friends of state rights think that if this goes there isn't much left, and we might as well wipe out the whole idea of state boundaries and individual state identity. Situation Sertoli One. At the same-time, the opponents recognize the reasons which gave rise to the proposal and admit it is a situation demanding cure. Rich men and large investors buy the bonds of states because the income from them is exempt fryn taxation. The unhappy results are that the federal government loses the rev enue and that funds which under ordinary circumstances might be in vested in productive business en terprises now are invested In the bonds of states. . Stated roughly, an investor who is rich enough to be in' the class which pays the higher surtaxes is better off if he buys a state bond yielding 4 per cent than if he buys the bond of a railroad or a t teel corporation or. any other busi ness yielding more than 6 per cent. The result is the business must pay an inordinate rate of interest in or der to attract the investor's money From this a considerable number of dubious results follow. There is a great incentive for the states to issue more bonds and still mora bonds. They are tempted to go into all sorts of enterprises, such as road-building, the ere'-tion of ex pensive public buildings and the like. Prom this it results that in addition to the diverting of money there is also a diverting of labor, which is embarrassing to ordinary business. Surtaxes Here to Stay. Of course- there is another way of meeting the, situation. That would be to reduce the high surtaxes and so take away the condition which leads the large investor to prefer state bonds. But any motion look ing toward, a reduction of higher surtaxes is so. aggressively opposed that it is almost helpless.- - Among public men there (s a ' steadily growing disposition to feel that too much Is being done at Washington, and too little at the various state Capitols; that the fed eral government has already taken over more functions than it Is able to handle efficiently, and that It is desirable, to get back to what was once a fundamental doctrine of the democratic party, namely, jealous preservation of the rights of the states against federal encroachment. It is pointed out, and it is quite true, that in othfsjr fields than this matter of tax exempt bonds, the fed eral government is following a- con ' trary policy of stimulating the states to greater expenditures. As some men put it, congress is steadily bringing pressure on the states to Kive up more and more, of their functions. Congress, for example, has a system of appropriations for road building whereby the federal government will' give a certain amount provided the states will raise an equal amount. The public building "pork" bills are another ex ample. Yet another is the recently passed maternity blH. ' Maine Voices Protest. In connection with this last the governor of one- state. Mairfe, re jected the federal government's gratuity, and in doing so wrote a letter which is perhaps the best statement of the state rights issue in its revised form. He said in part: "I believe the time has come for the states of the union to hold to a principle and to scrutinize carefully vall offers of federal aid before ac cepting them. Having no doubt as to what my duty is in this matter I decline to accept the Sheppard Towner bill and this state for th time being will stand with New Tiork., Massachusetts and Rhode Island, the three states that have rejected it. "The state of Maine will not sell its birthright. "Principle, not expediency, has been the determining factor witli me in the solution of this problem. The financial aspects of federal aid are interesting. "The proffered $5000 has been re ferred to. as a free gift to the state of Maine, while in reality the fed eral government is taxing the state to raise this money; and now in order to help our mothers and chil dren, offers to pay back to the stats the trivial sum of less than two thirds of one cent for each inhab itant. Federal Power Extended. "At the present time more than $18,000,000 is annually taken in taxes by the federal government from the people of Maine, and less . than $1,250,000 id returned to the state in the form of federal aid. This $18,000,000 of Maine monev is paid into the federal treasury at wasnington, a large portion being absorbed in heavy administration expenses at the federal capital, and a small fraction being returned to the state. "During the world war the power of the federal government over the states of the union was extended beyond precedent. The time has now arrived, howsver. when the - states should be restored to their Viscountess ' Rhondda Receives Divorce From Her Husband . fpon Agreed Grounds. (Chicaner Tribune Foreign News Service.) LONDON, Dec. 22. (By Radio.) A sensational incident- occurred yesterday' when a formal motion was made tn - the probate court for the probate of the will of the late Lord Northcliffe, which was agreed, on by two sets of beneficia ries under two wills. A woman dressed in -black, whose name is Mrs. Thomas and who is a well- known figure in the courts, rose and said .she wished to enter a caveat against the will in respect to a prior claim to certain money and property. Replying to a question, she said she did not have another will, but she claimed she will have this will set aside. The case was adjourned. . v Viscountess Rhondda, England's greatest business woman, who suc ceeded to the title and business of her father, originally D. A. Thomas, great coal owner, has obtained divorce from her husband, Sir Humphrey Mackworth. The case was an ordinary one of technical desertion, with evidence of unfaith fulness, which is the stereotyped form for agreed divorces in Eng land. . ' . ' The London court of appeals has dismissed the appeal of Edith Thompson and Frederick Bywaters against the death sentence for the murder of the woman's husband. Bywaters, who is only 20 years old, stabbed Mr. Thompson to death while the latter was returning from theater with his wife, whose ad mirer Bywaters had been. a A categorical denial is given by the British foreign office as to the truth "of a story sent out by an American news agency that Great Britain had consented to a proposal by the United States to appoint a committee of business men, neadea by Herbert A. Hoover, to investi gate Germany's capacity to pay and to fix the amount of reparations. It was asserted that no such pro posals had been received here. The American embassy also has heard of no such scheme and has not con ducted any negotiations along these lines. . - Great Britain is preparing for an old-fashioned tranquil Christmas and no newspapers will be published either Monday or Tuesday. All the London street cars, busses and trains will cease running at 4 P. M. on Christmas day to allow the em ployes to enjoy dinner at home. U. S. TRAINERS WANTED BEIiGIOI ASKS MAX OLYMPIC TEAM. FOR Holland, Spain and Greece Also Understood to Want Amer .'ican to Coach Teams. NEW YORK, Dec. 22. American Olympic team trainers and coaches are already in great demand among foreign nations, although the Paris international meet is still 18 months away. , Correspondence addressed to the Amateur Athletic union and the American Olympic association stress their demand and there are numer ous inquiries regarding suitable candidates from widely separated nations throughout Europe. Belgium Is one of the latest coun tries to ask the good offices of the Amateur Athletic union in the mat ter of engaging a coach and trainer for the Belgium Olympic team of 1924. Impressed by the develop ment, condition and showing of the United States teams at Antwerp in 1920, ; the secretary of the Ligue Beige d'Athletisme, the track and field sport governing body of that country, has written to Secretary Rubien of the Amateur Athletic union, Sequestlng a list of possible candidates for the position. The names of several well equipped trainers will be forwarded. Other European nations which are considering the advisability of engaging an American athlete or trainer to coach their teams, include Holland, Spain and Greece. Still others in more remote portions of .the globe also are interested. One or more South Amerioan countries may elect to engage an American coach and it is understood that Egypt has already approached an American ex-track star now living abroad. YEGG REGULAR VISITOR Semi-Annual Safe-Cra'cking Nets Nothing, as Heretofore. WALLA WALLA, Wash., Dec. 22 (Special.) George Snell, president of the Walla Walla Construction company, is angry. About twice year some burglar visits the office and pries open the safe. It costs the company 50 cents to get it fixed This morning employes found the burglar had made his semi-annual visit, getting absolutely nothing, as usual. . . . "Here's four bits, call up the re pair man," sighed Mr. Snell as he turned wearily to his desk Mr.. Snell once tried hanging up a sign explaining there was nothing in the safe, but someone stole that Ashland Banker Hurt In 'Fall. ASHLAND, Or., Dec. 22. (Spe cial.) E. V. Carter, president of the First National bank, slipped on the wet pavement when he stepped from his sedan last night and sustained a fractured knee cap. Mr. Carter was on his way to attend a "heal ing" meeting being conducted by jr. unaries a. rice. Mr. Carter. who is well along In years and none too strong, will be confined to his home for the remainder of the win ter, saia pnysicians. Merry Xmas from Edlefsen's. Adv. WASHINGTON. D. C. Dec. 22.- (By the Associated Press.) Despite what progress may have been made toward extending American aid in composing "the reparations disa greement in Europe, there was evi dence today that mucn remains to be done before all the interested ele ments can be brought into agree ment. There is no assurance so far that France will find it possible to agree to a proposal for an American com mission to survey German econom ic conditions and fix a basis on which a new reparations programme might be framed. , '. - In this situation, officials in Washington are seeking to mini mize as far as possible any direct connection with the discussions in which they have taken part and to emphasize that in what has been done they have acted only in an unofficial capacity. Situation Is Unsettled. . At the state department again to day a sharp demarcation was laid down by the activities of American and other industrial leaders on the one hand- and the official position of the government on the other. There was no clear-cut denial, how ever, that the whole proposition of an American commission had been talked over by Secretary Hughes with prominent representatives if industry in the United States or abroad, or that those with whom he conferred had gained the distinct conviction that the commission plan would meet with satisfaction here. The situation relative to extension of American aid toward a European reparations settlement continued today to present a badly beclouded picture on which little light was thrown from any quarter. Denial Is Lacking. American officials reiterated their denials of government backing at the present stage for the American commission plan sponsored oy com mercial leaders and of various pub lished statements regarding the di rection in which American official opinion was tending. But there was no clear-cut denial that high officials In Washington had discussed the commission pro posal earnestly among themselves and with others and no one at tempted to give the impression that the United States government would be displeased should the discussions now in progress result in an agree ment. Neither did any official come for ward to explain the true character of the mysterious movmgs behind the lines of world diplomacy to which allusion has, been repeatedly made in official outgivings, both in Washington and in the capitals of Europe. Official Action Not Taken. In all of their negative comment on the subject, state department au thorities seemed most anxious to deny that the , government itself. despite the closfc touch it is main taining with the situation, was in any way a party at the present time to the plan for a survey commission suggested first in this country by officials of the chamber of com merce of the United States. It was said flatly that the Ameri can government, at the present stage of the discussions, had no connection with the committee plan. which contemplates creation of a body of experts to inquire into the ability of Germany to pay repara tions. Furthermore, one official in dicated that if the commission plan ever came to the point where a pro posal for its acceptance could be made through diplomatic channels. the United States would not be the proper power to make that pro posal. It was pointed out that treaty rights are involved In the repara tions difference, and that no formal offer to mediate would be in- place from any government except in the solicitation of the governments in volved in the controversy. Findings Would Be Reported, As the commission plan now is ex plained here., the commission would be an unofficial body so far as the. Washington government is con cerned and: would have to do only with reporting its findings as to Germany's economic ability to pay. What actual figure would be fixed as a reparation total would be, of course, a matter that the allied gov ernments must decide for them selves. But with the economic re port on Germany available, known to represent the views of industrial experts without any' national bias, it has been the hope of ponsor of the American commission plaa that there could be an agreement as to the amount and form of German payments which would finally settle the question. " . The only inkling as to the hopes of the- American government in its efforts to find a way to a repara tions settlement was a prediction made today that if It' ever became possible to announce anv official plan, it would be found to be a very practical proposal, lacking in any sensational quality. Anything that is being done officially In- the. way of getting a clear understanding of the governmental attitudes abroad. it was indicated, was aimed at such a conception qf the problem, to be solved. YOUNG BELGIANS ROUSED Students Protest Change Made in Ghent University. BRUSSELS, Dec. 22. (By the As sociated Press.) Thousands of stu dents from all the universities of Belgium' took part in a manifesta tion today in the streets of the cap ital against the action of the cham ber of deputies changing Ghent unl vers-tty into a Flemish lnstiutlon... " Four thousand students signed 1 protest which was presented to the chamber. About 20 persons were In jured in street disturbances. Moonshiner Gets Tule Jolt. WALLAT"WALLA, Wash., Deo. 22. (Special.) Cary Cox, College place farmer,, got a rude pre-Chriatmas jolt today when he was fined $200 an costs for possession of liquor, In Justice court. Eight gallons of moon shine were found and also parts of a still. Judge Wilbur told Cox that only the fart that Christmas was near saved him from being; sent to M - I u) ljv jii ' fyiA I ml U 11 I y . ld u 1 j u tetii l iV$ ni 11 - v?Jk IP -:m II Premier attraction of its kind. A Lfl W v.Mt:,' -iM ate 11 j i 11 1 i r. s j, ri a-.! 3n "3 at." t. I i,l .1! ' Special Presentation In honor of this big spectacle and Christmas time the lobby and foyer have been luxuriously deco rated; attendants being beautifully costumed in red 1 Si - and white jockey umtorms. The- decorations alone are worth a visit. ; ' PRICES Matinees, until 5. V Evenings ,.35c Children i .lOc Evening prices prevail all day on Saturdays, Sundays and holidays. a -a jail. Cox has a wife and six chil dren. , . Bend Knights Templar Elect. BEND, Or.. Dec 2 ir (Special.) Fl'srlm commandery, Knig-hta Temp lar, elected J. Alton Thompson last night to head tne local organization as eminent commander. Thompson is superintendent of the Deschutes county schools. J. C. Rhodes was chosen generalissimo, A. A. Ander son, oaptain-general; K. B. Sawyer, treasurer, and C. T. Terrlll, recorder. Legion at Bend Elects. BEND, Or.; Dec. 22. (Special.) Peroy A. Stevens post No. 4, Ameri can LeglonlastnijrhtelectedDr. Refreshes Uiary Eyes jWhtnYour Eye feel Dull .And1 Heavy. ue Murine. It In- 'ttamly Relieve thatTttedFeeUnc Make, tbem Uear, Bright ana Sparkling. Harmleaa. Sold and Recommended by All Dmggiata. EVES PARKER'S HAIR BALSAM Remove D&nrfraff-tt ?ps Hal r7&Ul&t4 RostorM Color and I Beauty to Gray and Faded Halri Miux mA Ml a.f Itr-I! (va'istB llSls 3 Contains some scenes of this famous Derby, ,AAr& .25c A i' 1 1 ' a 1, t .IT' M J West park near Islington Direction Jensen&Von L. VT. Gatchell,' commander; S. R. Brown, vice-commander; Rev. F. K Beard, chaplain; M. Connolly, adju tant; John Runge, finance officer; and Roy Van "Vleet, Rev. Mr. Beard, Jack Wright, E. H. Kennedy and Craig Coyner, members of the ex ecutive committee. Wife Declared Neglected. ASTORIA, Or., Dec. 22. (Special.) -In a suit filed in the circuit court today by L. G. Smith of Scappoose against W. D. 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