Image provided by: University of Oregon Libraries; Eugene, OR
About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (April 27, 1947)
4 Tli Stoiesnvm, Salem. Oregon. Sunday. April 27, 1847 . (rcfiotitatemaan "No Favor Sway $ Us, No Fear Shall Awe" Frees First Statesman Mirth 28, 1851 - THE STATESMAN PUBUSIIING COMPANY CHARLES A. SPRAGUE, Editor and Publisher Meaaboc, of , the Asolate4 Press The Amdita Press Is exclusively eatitled to the as for psblleatlea f all news dispatches credited to It or sot otherwise credited la thia mm ia per. The Role of Profits in Our Economy HEffiOOS nrnnrml GRIN AND BEAR IT (Continued from Pas D thia should enable us to absorb certain truths of value when we study the events of today. Thus Nicoloson points out one of the great facts of a military alliance: "The basis of any alliance or coalition is an agreement between two or more sovereign states to subordinate their separate inter ests to a single purpose. In 1813, as In 1914 and 1939, that purpose was the defeat of a common en emy. So soon, however, as ulti mate victory seems assured, the consciousness of separate inter Current pressures are exerted on prices and result are noted in Isome widely advertised price cuts, such as that ini tiated by merchants at Newburyport, Mass. of .a flat 10 per cent and copied by Multnomah, Ore. These have such a public ity flare that they rate more as a stunt than as a sound ap proach to the problem of pricing. Markets do not move; in unison and blanket cuts are no more justified than blanket increases. Correct pricing follows the individual markets, up x tends to overshadow the sense or down, though of course the tendency is lor all prices to of common purpose. The citizens mnfnrtn to hrnH tronri - i of the several victorious countries ... . "--. . , L I seek rewards for their own sacri- rniDUcauon ox earnings or corporations ior io ana jior ficeg and compensations for their Ifce iirst quarter of 1917 has touched off considerable discussion i own sufferings." of the level of business profits. Being large the assumption is j Thus we see separatism emerg- made that they are too large, that wages should be increased, I tog in discussions of the peace that prices should be reduced.. Here again there is danger of ' arratTTin hatiaA different mrnflnlinni different hnxineM groups had different experiences. Railroads took a beating in settlement Even the president author of after the late war. United States whose f Koosevelt) was co- the Atlantic charter. 1946; retail stores enjoyed a harvest, using group statistics; as J whose, president (Truman) dis- a basis of comparison. ! A factual study of the situation has been made by the Legislative Reference Service of the Library of Congress.) Its conclusions are as follows:; j 1. Corporation profits reached an all-time high In 1948. 2. Biggest Influence in this rise was favorable tax treatment of corporations by congress. . 1 ' J. These tax benefits are estimated as amounting to between $ 3400,000,000 to tjmj)Qo,mo. j" 4. Many corporations could have cut prices in 1948 and still "have made good profits by any long-time standard." I I. Largest profit increases in 1946 went to textiles, garments, paper and pulp, food, rubber products, liquor, wholesale and retail trade, motion pictures. Many industries, on the other hand, made scant profits or losses. j 5. Compensation of employes as a whole did not increase la 1946, while all other group recipients of shares of the national income experienced increases in 1946. V Compensation of employes as a whole dropped from $114, 500,000,000 in 1945 to $109,800,000,000, in 1946, a loss of $4,700, 000,000. As contrasted to' this, the net income of corporations and proprietors, mcludingfarmers, and receipts from interest amf .net rents increased $6,800,000,000. 7. Prices in 1947 will depend' principally on "whether mount ing supplies can overtake demand." Government forecasters generally doot expect prices to decline until "sometime in the . middle cf the year." 1 '' 8. Under existing conditions increased costs like higher wages "will generally be passed on into still higher prices." j 9. While it Is true total weekly earnings went down in 1948 compared to 1945. from approximately $47 a week to $45.68, average hourly earnings advanced from about 9 cents to $1.11. 10. Although Philip. Murray, CIO head, complains of lower wages, this is actually largely due to insistence of- trade unions oa cutting the work week back to 40 hours after the war; work ers in. durable goods industries thereby lost 10 hours . In pay, workers in nondurable goods industries about five hours. This study reveals that it was the elimination of the excess claimed ambition to acquire an acre of new territory, neatly folds into its government the Pacific islands. Russia's aggrandizement is well known, and Britain has returned none of the Italian col onies. Another point which Nicolson makes is the necessity in a coali tion of deferring highly contro versial matters while fighting' Is in progress. As he says: "The problem of preserving the unity of a mixed coalition, the problem of adjusting national in teres ts to international needs, are constantly recurring problems which at times transcend the capacity of human intelligence. It was inevitable that the statesmen of 1813-1814 should have hestitat- ed to imperil a loose alliance by raising prematurely ultimate is sues of a highly controversial character r - That is true, but also the neces sities of, holding a coalition Intact often lead to commitments which later are embarrassing. Thus in 1914 Britain and France made se cret treaties to attract Italy to desert the triple alliance and join the triple entente.1 In the late war President Roosevelt and Prime Minister Churchill made conces sions to Russia to stave off a sepa rate peace, to secure Russia's promise to enter the war f against Japan and to get Russia to join the United Nations. Still another lesson which Nic olson teaches, and that is the 1m- profits tax which accounts for the higher profits. (This paper I portance of human factors in af- i .:..-4:- - u-- nrs. ... . ! fairs or stated and the further v-avc.aiaeaua Mf vtm wiikuiucuvu Vt Hi . ea em vw J- most 60 cent- rate.) It does not disclose however what was the Important factor, and that was the increasing volume of pro duction which resulted In reduced unit costs and gave whole salers and retailert a larger volume of merchandise to sell. fact that human nature remains pretty much the same. To quote "If moreover we are to receive any instruction from the Euro pean crisis which wh inaugurated by the French revolution and which culminated in the defeat of Modern business depends on volume for profits. As the Indus 1 Bonapartism, it is useful to dis- Uial machine of the nation completed its reconversion in 1948 r mlnd the assump- m.A .4,;V. AA . I V 4,.; I " uiiHuniuH wnu rr . , " VT' framed the final settlement at unit costs fell, unit and total profits rose. The gam in profits Vienna were more selfish, stupid was cruelly in the last quarter of 1946 and first quarter of j this or reactionary than the ordinary ia si - m . year. ' - I run oi men. aucn an assumption . . . . . j s? migni tempi us to oeueve mat oih mm iKwimuim isa cvtupcuuuu uicrewei, m i future negotiator will Ha mnr usual turn of the economic cycle reductions in prices follow, I enlightened, progressive, unselfish 'It appears that thia point has now been reached. ! and alert." tv,. tu-. . i. mi.ii si "c "ut uuman attended by demands for higher wages or lower prices. Few realize that the higher corporate profits are seldom distributed In the form of dividends. The lone stockholder studies i the annual report of his corporation. He sees that. its earnings; run about twice what his dividend is, and he wonders why he can't realize more nearly the full amount of earnings reported. There are two reasons: one Is the desire of the managers to be well braced against periods of business decline. The other is the incessant demand for . fresh investment of capital to reDlace obsolescent machinerv or to exnand to meet oresent or expected demand. The appetite. of the modern indurial TtZlnln machine for fresh capital investment seems insatiable. It can was at the time governed and di fiA t k.,5- r r rected by that most potent of all m .-.. v.u, w w. ks.wu m w,vnu.&. w wv.. ifactorf the chain of clrcunv new issues of capital stock. The higher profits of business are stances." Nobody who has not actually watched statesmen dealing with each other can have any real idea of the immense part played in hu man affairs by such unavowable and often unrecognisable causes as lassitude, vanity, social engage ments, interruptions and momen tary health. Nobody who has not watched policy expressing itself m day to day action can realize how seldom is the course of events determined by deliberately planned purpose or how often goijig chiefly into new investment, avoiding the risks of debt! and thedUution of common stock equity. ' I The Congress of Vienna has been condemned as a- model of intrigue in diplomacy and a well spring of reaction. Yet its resolu tions were even more pious than the charter of the United Nations and the settlement It prescribed kept Europe from general war for The question arises: might the profits have been better employed by increasing wages, by increasing dividends or by lowering prices. The group response will be according to group interest. Yet the longer view can 'justify the decision of man- m omrt for Hi invhnn( nf nrnfita in nl ant nrnvidM imi. nisiOTvunf t,.. m.urUu f,n;cv,.j k itv. inJuema Tn I virtually a century, economists recognize that prosperity depends in large degree on ences now in progress conclude this plowing back of money into construction or purchase of as good a job the peoples of the durable goods. ! world should be abundantly sat- l-isiied. It may be said that the wage-earner or the stockholder! would spend the money if he got it. True, but his expenditure PiiKlS Rnrrirrfcz would cresumahlv htt lareelv for consumer eooda. Investment I liDIC ' XlCCOiUS in plant, however, adds to the equipment which goes on. pro ducing goods for human consumption, the benefits eventually flow to the masses of the people. There must be a balance of course. Profits must not be extortionate or be devoted too largely for- new tavestnient. State capitalism (Russia) has been depriving its people of MARRIAGE LICENSE APPUCATIONS Robert H. Morgan, 44. lumber man, and Florence Ruth Kerr, 41 saleslady, both of Bend. Alvin C Stein, 21, telephone fnnlstv Astnria nA IathIiu needed goods lor years to devote its proms to capital invest- Johnson, 22, key punch opera roent and its defense establishment, But here tne stanaara oil tor, Salem. living for workers is high. The only ones in distress are hose Percy A. Pearson, 27, mechanic. t-.uih thAu mn 4a ah intmct I ano Minnie so. cmnen, o, ao- , 7- -, ------ x Ti . ? I mestic, both of Salem. ana cuviaenasi or oi no incomes, it is quite unpossuue w vipu- i DavM rHM sfl late by fixed rule or ratio the distribution of the earnings of a I landscape gardener. The Dalles. business. In the long run the free market evolves adjustments, I and Flora Boucher, 18, domestic. thmirh enmtim the "run" seams' ton Ion for those clamorm I Vancouver, wash. - : i I Donald B. Eshleman, 25, stu This fact does need emphasis: that there la both economic E. Lindstrom, 24, secretary, 2605 end moral iuatifiration for "nrofits." Drooerlv emnloved: that retention and investment of profits yields both teunedlsU i,n'3,,?ill,WOr!! miVJi WUfKiiu Sau w null uc mttmi - uj wr w m.v.t.m, I nnhCT DOU1 OI Salem. and by consumers. j I Orrel H. Ballantyne, 28, food technician, Corvallis, and Melba Keller. 23. Salem. i - ' m "mm . a m m I w w Another member ot the state police paid wun rus me in the periormance oi rus duty, awara nonaeau, a. onot m uie i its Ricks vs Albert R. Ricks chest bv a man caueht attemotina robbery Rondeau becomes I Order of dismissal. .1 I 41 t!- -V..,. mam- I """ muuiw buojc inure s afc, mwu; w "f""-1 y, Jones: Order of dismissal. bers of the state-police killed in line of tuty. Citizens buy their Robert Hill vs Gertrude Hill: safety and security at a high price, la terms of the blood of SJiSffi law enforcement officers. . j right of visitation; original decree By Lickty 6! it . Do-t worry. Slagwell appeal this verdict on the BTMods the Jary was temperanly Ibssbc- modified as to support money for minor children. PROBATE COURT Estate of Gottfried Schuts: Property appraised at value of $13368; order for sale of personal property. Estate of A. B. Horner: Final order: Guardian estate of Alvine B. Goodin: Annual account; order al lowing extraordinary fees and costs. MUNICIPAL COURT Mrs. E. D. Hanneman, 640 N. Commercial st, no operator's li cense, fined $230. Richard Allen Yocum, 685 Court st, violation of stop sign, posted $2.50 bail. - Benton K. Walker, West Sa em, charged with violation of ba sic rule, pleaded innocent, re leased after posting $15 bail! Virgil D. Miller, Newberg, no muffler, posted $5 bail. Marvin E. Rock. 1895 S. 12th st, reckless driving, fined $75. Salvador Casaba, Los Angeles, Calif- violation of basis rule, posted $730 bail. J. J. Winters, Portland, viola tion of basic rule, posted $5 bail. J. C Lamser, Portland, viola tion of basic rule, posted $5 bati. ROTARY TO ELECT The Salem Rotary club will hold elections for 1947-48 at its Wed nesday meeting. Gardner Knapp has been nominated for president LODGE HEARS STURGESS Park Sturgess, recently re turned froma trip in the south west, spoke "of his adventures at a meeting last week of the Central Lodge No. 18, Knights of Pythias. Sturgess illustrated his talk with color slide pictures. EVANS FUNERAL SET The funeral of Louis Evans, 84, who died Friday at his home, 2643 Lee st will be held Tues day at the Holman-Hankins-Ri- lance chapel in Oregon City, with interment at Lincoln Memorial pare, Portland. KIWAMS SLATES BENNETT School attendance poblems will be discussed by , Frank Bennett, superintendent of Salem schools, at the Salem Kiwams club lun cheon meeting Tuesday at the Marion hoteL Dr. Ray Waltz will preside. Births ELLIOTT To Mr. and Mrs Norman Elliott Silverton, a daughter, Saturday, April 26, at Salem General hospital. FRANKLIN To Mr. and Mrs. Benjamin Franklin, Gates, a daughter, Saturday, April: 26, at Salem Deaconess hospital. SIMPSON To Mr. and Mrs. Glen Simpson, 3380 Triangle dr., a son, Saturday, April 26, at Sa lem Deaconess hospital. FARNS WORTH To Mr. and Mrs. Robert Farns worth, Mt An gel, a daughter, Saturday; April 26, at Salem Deaconess hospital. ii I I I P I SINUSES DRAIN RELIEVES Slut lull tli lifiniif fills III Fit ir Syaptiat ; PIIIPI 1UIII...UITIIII II EFFECT lllltllUTIII...IIEIPEItllI 1MSetAT MPSeATIOM i swine eeteoN Ss, aTl niojco MM ES! SIHHS - ' An Airplano Load! Direct to Salem by Airplane from Salinas, Calif. Basket These berries compare with our best local grown berries. They are field ripened, large in size, and in perfect condition. 1 At the Foot of the Bridge, Weal Salem, Vi Mile North ol the Underpass. West Salem Not Berry Growers These Are die New Driscoll Berry. Come in and See Them. SLG GROUP TO MEET The Salem chapter of the So ciety for the Preservation of Bar ber Shop Quartet Singing in America, Inc., will hold a regular meeting and sing at the chamber of commerce Monday night at 7:45. A report on the charter pre sentation to the Portland chapter Saturday night will be given. Anyone interested in quartet singing is invited to the meeting. FARRELL REPLACED Secretary of State Robert S. FarreU, jr., has been seplaced as chairman of the governor's traf fic safety committee, by the elec tion of Robert Glenn, professor of highway engineering at Oregon State college, at a meeting Fri day night Farrell resigned as chairman due to press of official duties. ; MACY WU "PENNY KING" Winner of the "Penny King title on the Willamette university campus was John Macy, Salem senior, who was crowned at the all-school dance Friday night Macy led five other contestants in the penny-balloting, during the week of the World Student Ser vice fund drive, to raise funds for needy foreign students. SERVES ON CARRIER Gene W. Gregory, seaman sec ond class, USN, of Salem is serv ing aboard the aircraft carrier USS Midway with the 8th fleet in the Atlantic ocean, according to a navy news release. Gregory is the son of Mr. and Mrs. Julian Gregory of Salem. TEST DISCHARGED Richard Test son of Frank W. Test 1913 Saginaw st, was re cently discharged from the navy separation center in San Diego, Calif. Test enlisted March 24, 1944 and served as a pharmacists mate in Guam and Okinawa. FINAL SESSION SET A Special session . of the Salem YMCA junior board of directors Tuesday night at 7:30 will be the last one of the year, according to Bob Seams.ter, president. Program plans will be made for the re mainder of the spring. HEADS U OF O CLUB Hazel Peterson of Salem was recently elected president of the University of Oregon Outing club. The daughter of Mr. and Mrs. Leonard Peterson, Salem route 6, she is a sophomore in physical education. VISITOR HERE Walter G. Arnett, Prineville rancher, is visiting here over the weekend and will return home Monday. RASMI SSEN TRAINS . T. Sgti Karl B. Rasmusscn, son of Mr. and Mrs. Gordon Si. Ras mussen, 2365 Maple aveu, is on temporary duty for a period of two weeks at Rassberg, Germany, to train RAF pilots in the use of American fighter aircraft Fol lowing this Sgt Rasmussen will resume duty as technical inspec tor with the 323rd fighter squad ron at Fritzler air base, Fritzler, Germany, report from there said Saturday. LICENSE MEN MEET Driver's license examiners from the Portland examining depart ment will be in Salem May 2 and 3 to meet with Secretary of State Robert S. Farrell, jr. Discussion will be on the new stazsered li cense renewal law enacted bv the recent legislature. ELVTN AT KC MEET A. L. Elvin, supreme council field representative of the Knights of Columbus from Salem, attend ed a state meeting of knight of ficials at Sublimity last week and will be in that area this week on official council business. KNIGHTS MEET Communion Sunday for the Sa lem council Knights of Columbus is to be held this rooming at St Vincent de Paul church at the 7 o'clock services. - ' - Dr. Forrest I. Goddard Naturopathic and ChlropracUe Physician 176$ North Capitol St Phone 2-1184 Evenings by appointment A Another farload! ITS IIS Bny al Ttesa Wholesale Prices! Factory Packed CASE3 Vi Case 5198 AGO 8 Dozen , . H Dozen 15c Don't Miss this Money Saving Opportunity!- At the Foot o! the. Bridaei West Salem Vi Mile North ol the Underpass. Salem 155 N. Liberty Phone 3194 Follow tho Crowds to Wards Great Salol Big Reductions! Special Values! When All America Shops . .and Saves! FM RECEPTION . . . Compact, low-priced Airline !- , ;:-. . j .. - . t . .. . ; ' - ' . I .- ., , .-.if .. , " ijesjea ' Urn. UnusuaHj low priced for BOTH Band Alt reeepi tkml Yes, you enjoy the matchless clarity of FlTa static-free reception, and all standard broadcasts too! Engineered for superior tone quality, it's actually a fall-size console-type radio in a table-model cabinet! PACTS ABOUT FM (frequency Mcxhtalkm) No static . . . no noise . . . no fading. . . no "other station interference, FM fires you crystal -clear re ception that's amazing! Enjoy all the programs on your local FM station.