PAGE FOOT
THE STATESMAN PUBLISHING CO.
CHARLES A. SPRAGUE, Editor and Publisher ' .
Member of The Associated Press
The Associated Press is exclusively entitled to the use for publication of all
news dispatches credited to it or nottotherwise credited in this newspaper.
Defense of Oregon. .
i One of the legislators asked how it was that
certain of the state guard units had uniforms
and guns furnished them, while others did not
receive the same. The answer is simple. The
First Regiment was set up originally with nine
rifle companies, later twelve, with additional
service units attached. The federal government
' furnished them with old army uniforms and
' -with rifles. Afterwards the rifles were re
called and shotguns issued. The old uniforms
were not usable, so out of state funds new unl
. forms were provided. ;
The pressures for state guard expansion were
heavy. Every village wanted its own military
-outfit. Various independent rifle companies
were being formed. This was contrary to fed-
,' eral law and regulation, and the federal army
authorities were concerned over the organiza
tion of these unauthorized units.
It was deemed advisable, both to meet de-
t mands for local protection and to maintain con
trol by state authority over all military bodies
that such units, be recognized and made part
of the state guard organization. In the early
, part of 1942 there was only a small screen force
nt Mffiil9i armu 1riir ttirnpd in western
.Oregon, and these local companies organized
as they were into battalions, were insurance
' against possible enemy action within the state.
Officers and men entered into training with
zest and seriousness.
." ' These battalions understood that they were
to provide their own uniforms and furnish their
own weapons, and "enlisted with that under
standing. .
' The situation has changed greatly in the past
year. The battle of Midway definitely removed
an immediate threat of enemy action in force
against this coast. The state meantime has
been filling up with soldiers, most of them for
training, but available for field duty if required
and of course well supplied with what soldiers
need for fighting.
In other words the 1942 emergency has
passed. The State Guard should be continued,
but state funds should be expended only on the
First Regiment. The separate battalions need
. 1 1 1 At 1t HA
W WUUUUCU - iSV AVA wv- wm .wu.
munities and the guard commander feel their
existence is still a valuable insurance against
possible dangers from without or within the-statei
Oregon Taxes and How They Grew
The state legislature is an island surrounded
by tax advisers. Every group wants to write
the tax laws, usually with the group interest
in mind. Because-there are now many in the
legislature as well as. many on the fringes
thereof who have little understanding of Ore
gon's tax' system this editorial is written to
give some historical background which is in
valuable in any study of proposed changes
in tax laws and administration.
Just after the last war the people of Oregon
woke up to the fact that the cost of local and
state government .was being borne by the owner
of tangible property. The load was becoming
too heavy; so there were demands for relief.
Back in 1921 Gov. Olcott appointed a committee
consisting of Sen. I. N. Day, C C Chapman,
and Miss Cornelia Marvin to study the tax
problem. The committee had no funds to work
with, but it did make a fine, brief report which
commended "consideration of an income tax
law." The following extract from that report
sounds almost naive in view of how its timid
prophecy has been fulfilled: j
"The tax1 burden because of these and new
necessities will remain heavy for many years
to come. The implication herein that the war
debt will be retired in 25 years takes no regard
for unforeseen contingencies . . . The prospect is
therefore that no one now living will see com
plete elimination of more or less direct federal
taxation."
,- The state struggled along through the '20's
under the property tax system. The state senate
, in 1925 authorized a new committee to study
the subject. Its report is chiefly of historical
Interest. Its recommendation . of shifting the
- property assessment date to January 1st was
' finally enacted in 1941. "'; ;
The committee report which was most thor
ough and which became the basis of our
. inodernized taxing system was that made in
November, 1928 by the committee headed by
John' H. Carkin. It recommended reforms in
tax administration, creating a state tax com
mission of three members (instead of one)
appointed by the three ranking elected offi
cials who had previously been commissioners
ex officio. It made proposals for taxation of
personal incomes and -incomes from intangi-
.., bles and an excise tax on corporation incomes.
This report was the basis of the reform legis
lation of the session of 1929. The administra-
tive reforms were enacted. The 1929 personal
income tax law was held up by referendum
but approved by the people at the 1930 election.
The intangibles tax law was declared uncon
stitutional but was revised later . and passed
and upheld by the supreme court. The cor
poration excise tax was adopted. All revenues
, to be - collected under these three tax laws
- were pledged for the reduction of property
taxes levied for state purposes.'
The adoption of the income tax as an im
portant part of the state's fiscal system came
only after long struggle. A proposed constitu
tional amendment for r a i levy indefinite in
amdunt was roted down in 1922. An initiative
measure for an -income tax was approved by
the people in 1923 and then repealed in 1924.
Fresh initiated measures were voted down in
1926, 1927 and 1928. The 1929 legislative act
was approved, as before stated, and has stood,
with amendments, ever since. . - :
The intangibles tax was eliminated as A sep
arate tax in 1939 but a small surtax on j in-
tangibles income vwas added to the personal
" income tax. ; ' . ' , I " '
. - The effects in property tax reduction from
the three taxes of 1929 have more than: fulfilled
the hopes of their sponsors. Not only were; the
' slate property tax levies within the six per cent
"No Favor Sways Us; No Fear Shall Area"
From First Statesman, March 23, 1851
limitation eliminated, but those outside the
six per cent limitation;' also special levies such ,
as the two-mill elementary school levy and the
levy for the World war veterans aid ccurus
sion. And now there is a large excess in the
state treasury.
Figures show the change. Property taxes
in Oregon aggregated $50,000,000 in 1929 and
1930. Now they run at around $40,000,000.
The income tax has not been without ill
effect however. Undoubtedly many people of
wealth have left the state to escape its income
taxes. This fact, together with the fact that tha
system produces more revenue than was re
quired to meet its original purpose, and the
further fact that federal income tax rates are
extremely high lie behind the present demand
for reduction in the burden of the state income
tax. The plea has merit and should not - be
ignored.
The Burke Bill
Senator Burke has reintroduced his bill of last
session to put sale of fortified wines back in
state liquor stores, where it was put in tha
original liquor control act of 1933. This bill
passed the senate and was lost as the session
ended when one legislator in the house switched
his vote. Senator Burke does well to get his bill
in early. He must press it constantly lest it be
killed by'delay. He deserves the strong support
of all friends of temperance.
This time the bill should find support which
it lacked before, because of the experience of
the past summer when sale of fortified wines
hindered crop harvests. Complaints came that
workers would get hold of this stuff and then
would be no good for work for days. The
Hood River district was very critical of the sale
of fortified wines during the harvest season.
Hop growers had trouble with the stuff.
When these potent liquors are available at
pool halls generally their sale is greatly in
creased. State liquor stores now sensibly close
at eight o'clock; but the package stores can
continue sales until their closing time at mid
night. This makes the heavy wines purchasable
at late hours and adds to the trouble.
, Oregon has let the wine interests call the
turn long enough on this legislation. If the
temperance people will get down to cases and
plug for this piece of legislation they can really
accomplish something.
Ledyard The Planter
Centennial Series Two. ;
One of the most valuable contributions to the
advancement of mankind is an idea. It was John
Ledyard who planted an idea in the fertile mind
of Thomas Jefferson which resulted in the Lewis
and Clark expedition and the ultimate acquisition
of the Pacific Coast by the United States of Ameri
ca. Ledyard was a rover by nature. He sailed .with"
Captain James Cook as Corporal of Marines on the
ship "Resolution" in 1776, to the Northwest coast
of America. It was on that cruise that Ledyard
sensed the great possibilities of that vast, unex
plored region.
In 1782, Ledyard was back in America on board
a British man o' war. Leaving the, British service,
he endeavored to interest American capital in a
trading and exploring expedition to the Northwest
eoast. Failing in this, he sailed for France in 1784.
There he met Thomas Jefferson and John Paul
Jones to whom he sold the idea of the possibilities
of the Northwest coast of America. However, funds
failed to materialize to outfit an expedition so
Ledyard resolved to start by land through France
and Russia and across the Bering Strait to Ameri
ca. While at Yakutsk waiting for the weather to
abate, he was arrested as a spy and taken to Mos
cow. Acquitted of the spy charge, he hastened to
London where he was offered the leadership of an
expedition to explore Africa. Ledyard arrived in
Cairo, Egypt, on August 19, 1788. His last letter
to Thomas Jefferson on November 15, with America
'ever in mind.
Just before the expedition was to start, Ledyard
died at the early age of 38, with his hopes still
unrealized.
Like most pioneers, Ledyard profitted nothing by
his bold ventures and his great privations, but he
left the germ of an Idea with Thomas Jefferson
which bore abundant fruit in the years to come.
Editorial Comment
From Other Papers
HE KNEW MARK TWAIN
We shall always know Mark Twain thanks to
his wonderful and typically American humor which
lives forever in his books but the generation that
knew Mark Twain as a living, breathing person Is
fast passing. Although Twain was born and reared
In the river country of the midwest one does not
-ordinarily think of him as connected with the
mining countries of farther west, yet it is a fact
that in his embryonic days as a journalist in the
silver and the gold camps of the Rockies and the
interior basin, Twain ranged far afield. It was
while thus engaged that Twain came to Virginia
City, which is in Montana, there to foregather with
Louis Accola, himself a man of the river country
but as thoroughly a Mpntanan as one might be ",
whose life from the age of 18 forward had been
spent in the mountain state. L
But this comment is primarily about Accola who,
at the age of 82, passed with the passing of the old
year. Like our own Oregonians of the covered
wagon period, the Montanans were rugged people.
Indeed the struggle for mastery of a new country
could not have succeeded had they been otherwise.
When the Accola train i came to : anchor on the
west Gallatin, that was home to Accola until the
.wly Wi, when having acquired the status of
manhood in years, he also acquired sor-e holdings
on the upper reaches of Pass Creek, which was
. at the time of bis passing stCl the family home.
There was small market for the produce from :
the early ranches save and except as it might be '
freighted to some nearby rnirdrig- camp, and it was
this activity that engaged Accola where he lived
with the homefoOt on the Gallatin. One such outlet
was Last Chance gulch, a placer: camp near the
present capital city, Helena. Oxen furnished the
motive power there as it did elsewhere in the '
west when the country .was new.3 r tJl
" Also ; among the friends of Accola was Chief f
Joseph of the Perce Indians, a name which will
forever be coupled with northwest history; but"
Accola will be longer remembered as a friend of
Mark Twain who is of the immortals.
Th
: Coos Bay Times.
OREGON STATESMAN. Satan
H00RAV!
BACK QUTOH- J,
CONCRETE AGAt&J
Speaking of Paring Blocks - - !
(Radio Progiraips
K8LM THURSDAY 13M K.
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TM-Ntwt.
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Your Federal Income Tax
No. IS
ITEMS EXEMPT FROM TAX
In the Insructions accompany
ing! return Form 1040 are listed
certain items which are speci
fically exempt from the income
In the taxpayer's return. Among
these is life insurance paid on
the death of the Insured.
Amounts so received are non
taxable to the beneficiary. Row
ever, life insurance paid to a
policyholder on the maturity of
an endowment contract (not a
death payment) represents in
come, which must be reported,
to the extent that the amount
received is greater than the pre
miums or consideration paid for
the policy. Amounts received up
to the amount of the premiums
or consideration paid for the
policy are nontaxable.
In the case of annuities re
ceived either under annuity or
endowment insurance, or under
retirement funds or plans toward
which the taxpayer has contri
buted or made payments, a por
tion of the annuity is considered r
as representing a return ef the
funds originally paid in, and is'
nontaxable, and the balance Is
taxable as Income. The-amount
considered as income Is an
amount each year equal to S
per cent of the total premiums
consideration, or payments made
for the annuity. Amounts re
ceived in excess of 3 per cent
of the total premiums, considera
tion, or payments made, are con
sidered as return of principal
and are nontaxable; however,
when the total tax free amounts
received equal the total , pre
miums, : consideration : or pay
ments made f for the annuity,
then the entire amount of each
annuity payment is considered
as income subsequently received
and must be reported.
There are also exempt from
, tax amounts received by gifts,
bequest, and ' devise, but : the
Income derived from any
amounts or property so received
; is subject tc the tax.
Oregon. Thursday Morning. January 21. 1343
'
These schedules are sstppUes! fcy
the respective : statteas. Any varia
tions noted by listeners are da te
chances made by the stations with
out notice to . this newspaper.
All radio stations may be cut from
the airat any time in the Interests
of national defense.
9:00 Boake Carter.
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10:00 News. :
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1030 News. .;
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1130 Concert Gems.
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12-25 On the Farm Front.
1230 News
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S.-00-Littie Show. -:15
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130 Nesbitt Commentary.
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730 Dark Destiny.
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55-i-Fultons Lewis, ir.
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KEX THURSDAY llSe Ke.
SrOO-Moments of Melody.
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715 Music of Vienna.
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Interest on obligations of a
state territory, or any political
subdivision -thereof, or the Dis
trict of Columbia, or possessions
of the United States, is exempt
from; tax and, also, the interest
on obligations of the United
States issued prior to March 1,
1941 J to the extent provided in
the Acts authorizing their Issue.
For ! the manner of reporting
such' interest the instructions ac
companying; the return should
be consulted. The same applies
to interest on obligations issued
prior to March 1, 1941, of a
corporation organized under an
act of congress if such corpora
tion is an instrumentality of the
United States. "
Amounts! Received through ac
cident or health insurance or
under workmen's compensation
acts for personal injury or sick
nessj and, damages received on
account of such injuries or sick
nessj are tax exempt and need
not he reported as income.
, Pensions: and compensation re
ceived by i veterans from the .
United States for services in
time of 1 war are exempt, and
pensions received from the Unit
ed States by the family of a
veteran for services rendered by
the veteran in time of war are
alm,: exempt. ; ... . "" . '
Amounts ! received as a pen
sion, annuity, or similar allow
ance for personal injuries or
sickness resulting from active
service In the armed forces of
anyjeountr are also exempt.
Also exempt and not required
to be reported is the rental value
of a dwelling house and furnish
ings! provided a minister of the
gospel as part or. nis compen-
sation.
nlrtnmi i in the military or
naval service at the close of the
taxable year, below commission
ed grade, are exempt from tax
on their compensation received
for such service, up to $250 in
the case of a single person and
$300 in the case of a married
person. ; . -; . j
.-00 Traveling Cook.
9 -15 Christian Science Program.
930 Breakfast at Sardi'a,
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11-30 Jamea G. Mar Donald,
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KIN THURSDAY-5t -Ke,
40 Northwest Farm Keporte.
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Sam Hayes. ,
A .4 M9 IT .
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12:00-6 -00 a aa. stasia A N
KGW NBC TBI Cats DAY
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S.-OO EvetyUiuig Goes.
630 News Parade. -'
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- a -ao stars of Today.
:ls Jamea ado, mi
630 House DivtdeO. v
85 David Haruna.
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30 Mary Lee Taylor.
8:45 News. -
la-on school Proa-ram.
103O Homekeeper's
105 or. Ui
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Aouline LirnL '
Umn a A 11 f4ftl
12 0 story ee aaary asarnsw
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1230 Pepper Young's Family.
125 Right to Happiness..
1:00 Backstage WUa.
1:15 Stella Dallas. -.
130 Lorenzo Jones -
1 Young Widder Brown.
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230 Just rVdl BiU. "
25 Front. Page rarrclL:
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3:30 Snow Village.
2:45 Judy and Jane. ,
40 News. '
4:15 News of the World.
430 Personality Hour. - '
"Curiosity Rilled a
By ANNE HOWE
1
Chapter S (Continued)
t It ; was," I learned, developing
into something much more im
portant than had first been in
tended. Due to the dreadful con
ditions in Europe, and the result
ant plans of the government, the
'whole enterprise, or a part of it,
might pass out of private hands
and i become a . naval develop
ment. t TThe harbor is ideal for the
launching of heavy jeraft," Dad
explained. "Seventy feet of wa
ter at lo.wtide. Granite bottom.
Sloping aorelines. You can build
a battleship here without a cra
dle and float it right off. So,
what' with this town being near
the. Canadian border, and the
clamor for a two-ocean navy
: Dad was started. He went on
and on, into deeper and deeper
technicalities, too involved, for
me to follow.
And so I excused myself. I
hadl left New York at dawn,
practically. I was sleepy. But ,
mainly: I had seen ; a telephone '
: extension upstairs in my bed-,
room. And where there's a
phone, there usually is also a di-
rectory-- : : ' -.. ' " . "
: The room was charming, and
warm, and cozy.' Judging -from
its location, it overlooked the
ganten. But whatever the view,
it had been shut out by lowered
blinds and drawn curtains. Soft
shaded lamps were lighted., the
bed was turned back invitingly,
my bags were unpacked
I 'dropped into a ; comfortable
chair within reach of the phone
and : picked up the . slender vol
ume that was the directory, set-,
tling myself with a sigh of com-
fort !;-, '
! Jen minutes later I put the
book; down disgustedly. .
I had gone through it from
cover to cover, hunting through
all the Js in the city, the sub
urbs and outlying rural districts
listed.
Nowhere in It appeared the
name JoUimar. '
Dog-tired though I was, I
could n't sleep, for hours that
night I had been so sure of find
ing; Brace's family name in the
telephone book, its absence made :
me: feel Di. And scared. And
helpless.
To draw a blank in' Cliff port,
when I had pinned all my hopes
on what I could discover herei
After five years of wanting to rid
myself of a phantom tie and not
knowing how without telling..
I had never been able to do
that. First mother's illness and
death had prevented it, and later
time had passed,'' dad had de
pended on me to take my moth
er" place
Now it was too late. Dad would
think me crazy if I told him:
"Look, dear: I want to marry Al
lan and I know you approve. So,
will you please help me first to
get rid of the husband I acquired
five years ago?"
But all the same, I had to free
myself. I loved Allan and want
ed to be his, wife; And it wasn't
fair: to him, keeping him in an
endless suspense for , which he
couldn't possibly see a reason.
: Only, I couldn't do it alone. I
needed help. Not dad's. Not Ai
lan's. Of all people not Allan's!
Arid then an inspiration came
to me. Aunt Millie. Dad's young
: er sister!
She had lived abroad so long,
I bad almost forgotten her. But
she was back In New York now,
; The W8T had driven her back.
We i had met twice, no, three
times. In, the hectic days before
my departure, and had immedl
j afely recaptured the old warmth
and intimacy. : r
Yes, Aunt Millie would help
me. She was just the person for ;
i it Clever, and worldy wise, and
kind. Td write her a long letter
: In the morning, and ask her ad-
vice? '. 'h
The thought must have acted
: as a soporific At any rate, after:
: that resolution I dropped off into
sound sleep.
: Chapter Three
i t) had ordered breakfast for
: nine late for me. I usually have
: tt with dad, at eight expecting
toibe downstairs long before
then. But nine o'clock, - and a
resolute knock- at my door,'
: startled me out of the depth of
. oblivion, and I sat up in bed.
: blinking increduously - at the,
double vision of Mae and Nettie,
; inarching in with my breakfast
SIS News. .
S5 By the Wajr. ;
SKMjwMusic Hall
7K)0 Abbott and CosteOa.
730 March of Time.
a-00 Fred Waring Pleaaura Tin
8-15 Night Editor.
830 Coffee Time. '
8 .00 Aldrtch Family.
830 EUery Queen, j
10KK) News nasbea
10 a Labor News.
1030 MoonMght Sonata
105 St. Francia Hotel OrchesUa.
1035 New. i
11-O0 News.
tl US Hotel Biitmore OitiiesUa. -1130
War Hews BouneHist.
12-00-2 a- m -Swing Sottt. - '
' KOAC THCUOAY. 558 at.
1030 News.
10:15 The Hearetnakers Hew
11K)0 School of the Air. .
12 0 News.
12U5 Farm Hour. ,
10 Favorite Class!.
1 :15 Variety Time , .
- 15 Victory FroaC
2KM Hobo Garden Boar.
23J Memory Book si MuslO.
2K)0 News. - j
2:15 Let We Forget. 1
230 Great Songs
4K0 Lest We lorget.
430 Stories for Boys and Qlrls.
S.-OO Private Pete Preaenta.
8:15 On ta Campttsea.
550T5vnm Vesper Service :
5 Sentry Of the Air. ,
? lt's Oregon's War."
S:15 News . . j .
630 Farm Hour ''" ! ' '
730 Timber WoH Shows. --2niversity
Work Shop.
JiS?.!. BducaUo" wartime
. J-"? J94 tevlew.
05 Music of tbe Master.
tray. It reafly was almost too
mucn service
Jumping out of bed and hast
ily throwing orr a robe," I found
myself protesting that one of
them would have been enough,
to be told with calm authority
. by the nearest twin:
"Not this first day it , alnt,
: Miss Wentworth. Sister and me
been thinking we should oughter
have a good talk to start things
off right," while her double un-
derlined the statement with an
Ayah" the local way of saying
yes" that sounded as emphatic
' as the amen in church.
And so, all through an ex--cellent
breakfast, I sat listening
to my "staff laying down the
law to me. In all kindness and
deference, without once over
stepping their bounds. But, firm
ly Just the same. Nettle doing
the talking and Mae the yesslng.
- r irsi iney uuuiurcu w
to tell thera apart
It really was simple. Nettle
had an old-fashioned black onyx
brooch pinned to the neck of her
.neat," striped momln? uniform,
. Mae wore a large cameo de
picting, of an things," Leda and
the swan at the identical spot
of her identical dress. I ;
Then they told me how they
divided the work Nettie was
doing most of the housework and
taking over my personal service,
while Mae reigned in the kitchen
and dining room and went on
from there to assure me, in a
4 most maternal manner, that I
needn't worry about social er
rors so long as I had them. They
had served the Burton family
: ever since they had finished col
legecollege, no less! they
. knew how things were being
done in the best Cliffport circles.
. "Seeing as you Is nothing but
a baby, sister and me thought
you'd be kinder , eased in your
mind if we told you," said Net
tie. And Mae added, "Ayah." .
.- I had a hard time not to grin.
It was funny, being promised
the moral support of these two
good souls in my prospective in
, vasion of Cliffport society, when
Yd trained servants of all colors
and countries, and had been both
the guest and the .hostess of any
.number -of important people,
wherever Dad's work had taken
him. After all, he is one of the
most famous harbor engineers in
.' "I'm not so very young," I told
them, hiding my amusement as
best I could. Tm nearly 24. And
. rve kept house "for my father
in New York and Alaska and
South America and China."
- They gasped and looked awed
. . . , . . . ..
ana aeiuuiei y aess mouicrxy.
"Why, we wis figuring you at
18, 19 the most" they told me,
for once in unison. And then our
talk turned into a normal dis
cussion of my way of running
the house. V :
But even when every conceiv
, able phase of the subject had
been exhausted they didn't go,
but stood fidgeting near the door,
each holding one end of the tray.
Theys one thing more, ma'am,"
Nettie brought out at last
"About Roberts. Can he keep on
coming to. the kitchen?"
"Who's Roberts?" I asked,
mystified! . .
"Why, the caretaker of the
new Burton house." Nettie in
formed me, plainly surprised at
my ignorance. And Mae added:
' "Ayah. He been coming regular.
- But he got his own cup and
' spoon and things."
'Evidently they were telling me
' In their own inimitable way, that
they were boarding the care
taker and would like to go on
doing so. Well, if it was an old
Burton custom
- .- - - id am connnueai
The
Safety Valvo
Letters from SUtesman
Readers' .
To the Editor:
: ' The Sublimity community
completed their project for Camp
Adair dayroom, a truck from
that place being here Saturday
to secure the furnishings, ac
cording to Mrs. Eugene Ditter,
chairman of the committee. The
committee wishes to express its
thanks to those who aided in
this worthy project by donating
various articles, making of the
drapes and in other-ways assist
ing with the work. Seventy
three dollars was donated and
pended in securing articles not
.donated.' . ' : : r : ,
Mrs. E. A. Ditter,
.': Sublimity, Oregon.
JT?' AvalUkla tm selected
UonsrHA financing eptionaX
HAWKINS AOBERTS. INC.
tor1?V!!fjrtr. Seucltof
The Prieatiaj las.rajace Co.
h m umm s i
Guardian BulkUng. Salera,, Oregon