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
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ITS
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West Salem
Vi Mile North ol
the Underpass.
Salem
155 N. Liberty
Phone 3194
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