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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 9, 1923)
" " ' " e .8 . GOVERNOR PIERCE v DELIVERS MESSAGE (Continued from page 3) burden of taxation and; not as an excuse for Increasing jthat burden by new and additional expendi tures of state money, j ''' As a further means of. relieving real property of its present un bearable load of taxation,: and without Intending to Invite new .expenditures; I call attention to the fact that one-third ! of the standing timber in Oregon is in forest "reserves and is thus non taxable. As this timber passes Into private ownership and" Is marketed it should bear a sever ance i tax that has some relation td"'Its true value. Precedent Is Cited Other states have long imposed severance taxes on natural re source wealth as it Is converted into private wealth.. In fact, a severance tax on timber, even where in private ownership, is re cognized to be the fairest tax both! to the owner of the timber and to the state as a source of revenue. Unless the state acts, our people will some day awaken to the fact that timber, our great est natural resource, has beep (largely depleted, leaving bonded Indebtedness In millions still Un paid without the timber , against .which the bonds were issued hav ing contributed its fair share to ward the retirement of the bonds. This applies not alone to state bonds but to the bonds of all those municipalities In the tim bered areas, such as counties, school and port districts, where large ... bonded indebtedness has been created without adequate provision- for ;'the retirement of the bonds as ( the timber Is re moved. 1 , -V . i t' 1 am advised that recent inves tigation has disclosed a 'bad, state LADIES DID - . . l ! 1 Use Grandma's Sage Tea and Sul phur Recipe and Nobody . Will Know ' Tne use of sage and sulphur for restoring faded, gray hair to its natural color dates back to grand mother's time. .She used it to keep her hair beautifully dark, glossy and attractive. Whenever her hair took' on that dull, faded or streaked appearance, this simple mixture was' applied with won derful effect. ;';'." But brewing at home is mussy and out-of-date. ' "Nowadays, by asking at any drug store for a bottle of "Wyeth's Sag and Sul phur Compound,', you will get this famous old preparation, im proved by the addition of other Ingredients, which can be depend ed upon to restore natural color and beauty to the hair. '. ' A well-known downtown drug gist says It darkens the hair so naturally and evenly that nobody can tell It ha3 been applied. You simply dampen a sponge or soft brush with it and, draw this through your hair, 'taking one strand at a time. By morning the gray hair disappears, and after another , application or two It becomes beautifully dark and glossy. Adv. From ( YOUR m HI c iean! X I Entering Watch Our Window Display CI ' - ' J 1 1 i ' TUESDAY MORNING, JANUARYS 1923 of affairs with reference o sink ing fund provisions in the various taxing units of the state, fin some instances, bonds have been issued without regard to making. the ma turities time with the useful life of the; improvement. fThis is re sulting, in some counties where the chief resources are timber, in the timber being cut at a rate that will result in default on the bonds when they mature unless provision is made either to refund the bonds on a shorter trm basis or to adequately tax- the timber as it is being removed and put the proceeds in a sinking-fund. ' Assessors Need Supervision In fact, on this whole question I am of the opinion that the state could to advantage exercise some form of supervisory power over the financial affairs of the vari ous taxing units. Municipalities and other taxing units should not be permitted to Impair the credit and good financial nam" of the state hv running Tint with give bond issues, making no pro-? vision for the payment of the Fame when due. The I principle should control, that no bonds should be Issued for a longer time than the useful life of the im provement for which the bond is created. And sinking funds should Jbe maintained inviolate in order to make certain that no de fault will ever occur In the bonds of any1 Oregon municipality. I .ask the legislature to revise the assessment laws of the state and give the tax commissioner the right to supervise county assess ments. At the present time there is widespread discrepancy In the asressment of property iin differ ent counties. In one county sheep are assessed at $2 the same kind of sheep in another county at $5, and In another county at $8, and it is notorious that large stocks of . merchandise in various parts of the state have escaped their just share of taxation through lack of control of the , state tax commissioner over lax and inef ficient local assessors. The state tax commission should have full authority to compel the same pro portionate assessment on the same kind of property In every county In the state. Insurance IjHWs Violated By an equitable valuation of all property millions of dollars can be added to the present assess ment roll without raising the Just assessment on farms, homes ' and livestock. In keeping with my policy that new sources of rev enue shall not serve as an excuse for additional expenditure in any department of state government. I, recommend that If, you approve my plan for increasing the values on the tax roll that at the same time you provide that those in stitutions and' departments which derive their income from millage taxes shall take from this source no larger sum during the next two years than they received in 1922. Any excess thus collected should go toward ! reduction of the gene ral property1 tax., I am advised that extensive in surance is written in this state by companies that have not com plied with the" laws of Oregon with' the result that premiums on such business are escaping tax ation in this state. I recommend a law that will either halt this practice or that will reach and tax operations by : non-resident companies, I am deeply concerned over the state of our highway program End to End and From Top to A Genuine Sweep earance Every Department Shares Sensational . RICE REDUCTIONS To Assure a Prom pt Clearawciy Our Windows Tell the Story on the Second Big Week of See Our Six years ago pregon had no state bonds except a small i issue of $340,000 of rural credit bonds. Today, with the exception of South Dakota, pregon is the heaviest bonded state in the union when wealth and population are considered, and the bonded . in debtedness of South Dakota will be exceeded by Oregon when the rest of the state bonds already authorized are issued, as will be necessary to complete the exist ing road construction and carry out the provisions of the soldiers' bonus act. 1 Paid Highway Board Urged A Wall street journal, Com merce and Finance, in its is?ue of October 18 last, stated. "The total amount of bonds issued in the United States for highway con struction is $367,000,000." When we contemplate that this i3 the total issue in all the states and then think that Oregon, the 36th state in wealth and population, has Issued one-tenth of all the highway bonds in the . United States, well may property owners be concerned with the future. I am forced to the opinion that instead of having an unpaid high way commission giving part time to this gigantic business, unless a consolidation of state depart ments and commissions places the highway program under other su pervision, it would be marked economy for the state to have a commission of three members who will devote their entire time to the highway work under the direction of the governor and re ceive reasonable compensation for their services. Under that plan the governor would not only be responsible to the people for the acts of the highway commission and the entire department, but the way would be paved to save considerable sums of money. ! Roosevelt Highway Favored In six years the state highway commission has spent the almost unbelievable sum of nearly $40, 000,000 derived from the sale of state bonds, several million dol lars from the national government and several million dollars from the counties. Under the present constitution we are allowed to issue only $40,379,996 in bonds. I am informed that it will require practically the entire issue to complete existing contracts. There has not been kept in reserve the full two and one-half million dol lars authorized for the Roosevelt highway. There will be nearly two million dollars of 'interest to meet each year. Bonds are coming due. Recently completed highways are now demanding re pair, and replacements Macadam construction is waiting. Many links' in the main highway are yet to be completed. The Roosevelt highway voted by the people in good faith must have considera tion. . The government is now of fering to appropriate large sums of money for road work In Ore gon, providing the state shall match them. It all brings to our attention the absolute necessity of husbanding our resources to provide an ade quate revenue for the, charges al ready fixed j against that highway fund. . I therefore recommend that the old quarter mill road tax be retained for the road funds, that the tax on gasoline be in creased and that any adjustments that may be made in the present automobile law do not reduce revenue. If any changes are made in the license law, I I recom Bottom Savings Clearance Reductions mend that the fees on high-priced cars be increased. j The market road law has! proven ,its merit. Cities and farmers have been mutually benefited, j I have often made the statement that "if this law is kept on the j statute books for 10, years Oregon will bs unequald in the nation for good market roads." At the end of that period there will, be no j bonds to liquidate because the roaas win nave been paid- tor as they have been built. I recom mend that the present law be al tered to provide the-couuty court with full and complete authority over all money derived under the market road fund, the roads to be built according to plans? and specifications furnished byi the i state highway department. . i I'roduc-er Unfairly Treated A f-?w days ago I was on my farm. T watched a beautiful pen of white-faced steers, grain fed, ready for market, and as-1 watch ed them 1 thought, you are worth about $50 each rn th. nrespnf (market., If f were to count the taxes on the land from which you have eaten the grass, and the taxes on the land from which you have eaten the hay, and the taxes paid upon yourselves and your mother, then there is standing' against each of you approximate ly $15 taxes. Each steer has act ually cost this farm $75. When your hide is cut up and made in to harness and shoes, and you are cut up into steaks and roasts, then you will cost those who con sume you about $&00 each. The railroad that takes you to market fixes the freight rate and makes a profit, the packer that prepares you for the market fixes the price and makes a profit, the retailer fixes the price and makes a profit, the hotel keeper, the harness mak er all fix the price so that they will make a profit. . The farmer is the only one in the long, long line from the producer to the act ual consumer who asks the world to fix a price on his product and he is the only one who fails to make a legitimate profit. Only 10 per cent is allowed inf this In stance to the one who produces, 90 per cent taken by those who can and do dictate the price. Slowly in places, rapidly in other places, the producers are being financially ruined by the present marketing system. I do not even want to think of state owned packing plants and warehouses for distribution of farm products, but I 'do want to warn the business world that the producers must have better treatment and a fair chance for existence. Farm Mortgages Staggering Eight years ago from this plat form Governor Withycombe de livered his inaugural address and in that address said, -"The farms of Oregon are mortgaged for ap proximately $22,000,000." To dayj Oregon farms are mortgaged for 1 approximately $100,000,000. Why have the farm mortgages nore than quadrupled In eight years? I can hear many people say 'bad management." Rather it has been due to the failure, yes, the downright inability of produc ers during the late years to! bal ance their annual budgets. Un less that situation is remedied, the country is threatened with a breakdown in the. morale of its farming element the backbone of the nation. It will require time ; and active endeavor to im prove existing marketing meth ods, but we can accomplish an early reduction in the producer's share of the state tax, which, in the country, is nearly one-half the whole tax, and we can spread a portion of the present tax burden on incomes and forms of business that, though infinitely better able to do so, are not now bearing their fair share of the cost of state government. Among the growers of grain and hay there is much dissatis faction with the enforcement of the grain inspectIoivlaw. When I introduced this measure in the senate some years ago, I little dreamed that it would grow into the large department that It has. I remembered saying to the sen ate that it would become self-sustaining, and I wish to call the at tention of the 1 legislature to the fact that it is now elf-sustaining. It never should have been put under the public service com mission, with which it does not harmonize. Market Agent Needed I' know that the time is not pro pitious for any new state activi ties. I also . clearly remember that the market' commission bill was defeated two years ago. Not withstanding all these facts, I be lieve that this legislature should, by law, create a state market ag ent, and v place the grain Inspec tion department now with the public service commission under the state market agent, such state market agent to work directly un der the control and guidance of the governor. The law creating the state mar ket agent should provide that every purchase of. grain made by exporters should at the close of each day's business be reported to the state market agent. Fail ure to do so should be punished by fine. The state market agent could then publish, over his of ficial signature, the exact price in Portland every day. The state market agent should have authority to inspect any or all books of any business house for the purpose of ascertaining the amount of grain purchased, as well as the price thereof. The state market- agent should be authorized to afford all possible 1 i i I assistance to cooperative market ing. He should have the right and authority to issue bulletins frpm time to time, not only giv ing the actual price paid, but giv ing instruction to. the producers asi to how to better prepare their products for market, pointing out as far as possible where better markets may be obtained. The fund derived from grain and hay inspection will be ample to main tain the department. Rural Progress Xecewary jl do not want to be considered as one preaching the cause of the country against the city; I think I can envision as well as anyone the possibilities of great Indus trial development in the seaport cities of Oregon. . Portland can become a city of a million people within the lifetime of many now liying. Our water power may be developed so that this state may become one of the great indus trial centers of the world. Our unsurpassed forests may be cut off and the timber manufactured, into lumber, we may grow pros perous and wealthy, but we may, unless we remedy conditions, at that time be buying our food and clothing in Asia, Soith America, and from the islands of the sea, and we may see the beautiful dairy herds of Oregon, the pride of j many a home, driven from the state by its greatest - competitor, the cocoanut-cow. That kind of development took place in Eng land when the industrial revolu tion set in something like a jcen tury ago. When the great war came, England was importing 75 per cent of her foodstuffs from dverseas. The German submar ine would have starved England to death had it not been for the valiant sons of America who caught the wavering banner o civilization and bore it to victory on Argonue's shell-swept slopes. We should not develop such a civilization here, allow our fields to be abandoned and permit fu ture generations to be at the mercy of a foreign submarine. The problem is not, as is some times stated, to get the city man to the country but to keep the young" men and young women now growing up in the country from going to the city. Every legitimate endeavor should be ex erted :to make country life attrac tive enough to stop the present alarming exodus from the farm.! Irrigation Interest Guarantee Doubted Some years ago tho people of Oregon passed a constitutional amendment giving the state of Oregon the right to guarantee in terest on bonds issued by irriga tion and drainage districts for a period not exceeding five years and placing this great power in the hands of the state superin tendent of banks, the state engin eer and attorney general. Under this constitutional provision oonds have been guaranteed by the state in many districts over a period of from one to five years.- The commission holds that when the state has guaranteed the interest the state is obliged to issue its bonds to pay the interest on the bonds of the irrigation and drain age districts. The total amount of the interest the state has thus guaranteed is ?1,400,000. The interest upon these blonds issued by the state is then, to be paid by the district, but it, is a fact well known that some districts are likely to fail to pay from taxes collected within the district the interest coming due upon bonds issued by the state. The only way to meet the prospective loss to the state will be by taxa tion. There will be no question confronting the Incoming admin istration more serious than whether the state had better con tinue to guarantee the interest on bonds of irrigation districts after the time has expired for which interest has already been guaran teed, hoping for the. recovery of agricultural conditions, or shall the state refuse to guarantee fur ther, accept the loss, and allow the matter to go by default? A deal is about to be closed in which , an irrigation district pro poses to sell its 6 per cent bonds for 83 cents on the dollar, tho state to guarantee interest for five years. Should the state guaran tee that interest? It is a question that can only be answered ,af?.cr a most careful and searching in vestigation. Amendment Requested I ask the president of the sen ate and the speaker of the house to appoint the ablest men, the 456 Court St, Phones 256T 257 BEST SERVICE my w gro best financiers In the senate and house on their, irrigation commit tees ahd I ask the committees to meet in joint session, examine all of -the records, summon witness es, search out the facts and make a report to me as governor and to the people of the state of Pre gon so that I may have something to guide me when the state is called upon to act, after you have returned to your respective homesj The hour, is too critical and the situation too dangerous to issue more bonds to pay interest on ir rigation and drainage bonds that the various districts Issue, with out advice and counsel. The board that passes on these bonds should be reconstructed. The gov ernor and the state treasurer should be members of the board. I ask you to submit a constitu tional amendment to the people to be voted on at the next regular election so amending the present constitution that the governor and the state treasurer will be members i of the commission that guarantees interest on irrigation bonds. I believe in the, workmen's compensation law. It has been of great benefit to the state, and I am opposed to any material change that would affect the hon est operation of the law as it rtands. Any law that returns 92 per cent or more of the money collected for the purpose for which it was collected is a suc cessful and beneficial law. The narcotic evil Is a growing menace. This legislative assem bly should pas3 a drastic law to enable officials to cope with those who are vending drugs. . Prominent Men Blamed I have been saddened many times by finding that prominent men of this state behind closed doors are breaking the prohibi tion law. I ask for a higher sense of moral duty and for an awaken ing of the public conscienca. We must one and 1 all determine to drive liquor from pur midst by making it so hard for the boot legger to thrive that he will be glad to leave our state and take with him his. nefarious business. Liquor venders cannot do business alone. I ask you for assistance In a continued effort to enforce the law. I do not want a stale constabulary, but I do want suf ficient police agents to eliminate as far as possible violation of the Folks, You'll G losin 45 inch all wool Storm Serge, yard ..$1.48 36 inch all wool Storm Serge, yard ...i .$1.18 56 inch all wool French Serge, yard .$1.98 36 inch Silk Poplinvyard . . . ... .... ..-:l.. .L. .T..L........88c 36 inch Duchess Satin, yard .. . .- --...... .T .... ..:..,; $1.98 50 inch Broadcloths, yard ....:fc:;.::.:....4.::.:v.Ll:U-..Ll....$2.88 36 inch Cotton Challies, yard ....r ...-......L.i... ..J..... u. ...14c 36 inch Curtain Scrim, yard ...r-...-.......i....!;.J..L..:...L..; ...9c Amoskeag Utility 32 inch Zephyr Ginghams, yard 60 inch Mercerized Table Damask, yard 70 inch Mercerized Table Damask, yard Pequot Sheets, 81x90 each .... Mohawk Sheets, 81x90, each 42 inch Wearwell Pillow Tubing, yard ........ ..... Children's Black Ribbed Hose for Boys and Girls, pah Ladies' Kid Gloves in black, grey or white, pair .......... Boys' Percale . Blouse, each Ladies' Flannel Gowns GALE & COMPANY 7 fltDf) Ai Members of the 32nd We will be glad to supply the wants of yourself and family during your stay in Salem. Our delivery service4 is free io all parts of the city. prohibition act. I also ask that r oil fines collected through enforcement of the state prohibition and narcotic laws be turned into a special fund, such fund to be used in-enforcing the We should enact a law pro hibiting the selling . or leasing of Iandln Pregqn to the Mongolian and Malay. , European and Asi atic civilisation can not amalgam ate, and we can not and must not submit to the peaceful ' penetra tion of the Japanese or other Mon golian races. The alfalfa weevil, a dangerous parasite, I has entered Oregon's boundaries. I recommend an ap propriation of $5000 annually for two years to provide a quarantine the appropriation to be used by the state board of horticulture. 1 am a frm believer in the free public schools; but the present burden of taxation in this state compels .me to ask every school board and all boards of regents to practice the strictest econo-ay. llonus Uw Xoeds Remedying No mortgage- company could long remain solvent that loaned 75 per cent of value upon real property, as the soldiers .bonus act requires. Fluctuations In val ues will in manycases more than absorb the 25 per cent margin. Moreover some men have taken advantage of the needs of ex soldiers. Hence, I can see noth ing but a' certain amount of loss to Pregon . from the soldiers' bonus law; I call upon everyone who has charge of the enforce ment of this law to see that the loss is- reduced to the lowest pos sible minimum. At the! present time there are no funds available for the recon struction - of state buildings de stroyed "by fire. , I recommend that a sinking fund be provided for that purpose. The law compels relatives of patients in the state hospitals for the insane, and in the state tuber culosis sanitarium, to pay for their care and keep if they are financially able. I shall see that the law is enforced. , One of Oregon's finest-and most prosperous cities, Astoria, narrow ly escaped total destruction re cently in the state's most ravag ing fire. The heart of the state bleeds for the crippled city. If the legislature decides to give, fin ancial aid to Astoria, I believe it Have to Hurry to Take Advantage -of Our srOutSMe j tf ; Ginghams, yard Commercial and Court Streets GERIE Legislative Assemblv should be I done by direct ap- r . priation , ana noi oy , aiverU: money from other needed ImniC There have been many serloui' errors in the -work of past les:s. latures by reason of the anciect method employed in engross?r,3: and enrolling bills. The costL session of this Work was $8346.q. Section 2680 of the code shyu:j' be amended so that a printed V.. ' only -would be used on final pai-'x sage. This change would avc! I mistakes which lead to litIgatioar and save at least $5000 this iesJ sion in legislative expense. Item Vetos Hinted The present motor license law was hastily drawn at a speck! session. It includes some glarir defects and provisions divide j authority with the result that aj" ministration is in many cases ir. possible. It should be carefn::;' evised at this session. There is' a widespread deinanl for the reduction of the hunterV license.' It should be given care ful consideration. ' I ask the ways and means com mittee In drawing appropriate a bills to fully Itemize each bf.l n that I can, if I deem( it necessary ' veto items that appear to me u; necessary.. .' I do not intend to encroach up on the prerogatives of the le, lature. Firmly do I believs tta two departments of government should function independently. I have pointed to same condition that I believe should be treat: I bv Haw. It is your province U prepare and pass measures em bodying matters on which the peo ple have so clearly spoken. I ar . ready at any time to help you, either individually or collective!- and I offer you the fullest mea - ure of cooperation. i The people are expecting mtu of this legislature and many c! those expectations will becon.) disappointments unless the eic-, cutive and legislative branches carry out j their respective dnti i in harmony. I am sure that yoa know full: well how intensely tha people-are thinking. I know yoa .are ready and willing to bury per sonal and party ambitions; and ill ' differences for the common gooi. Classified Ads in Th3 Statesman Bring Result 16c and 19c 23c 59 c ...:.88c $1.59 ..$1.49 ..138c 15c $1.19 ..:.39c 1... V 1.25 RIGHT PRICES or A - . - t i 4 r, I - I