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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 20, 1948)
'ODOO ? DOIT ' Neuner Contends Tax Surplus Switch Legal Without Election r DO O OOSJ OOO ' ODDO OJD OODO O ODO : DDD CFOE3 'OtJO Court Rule Backing Legality of Opinion Claimed 'Necessary Personal and corporation income tax surpluses amounting to $35, 000,000 can be placed in the state general fund, now facing a deficit of more than $7,000,000, Attorney General George Neuner held in an opinion here Thursday. In Portland. State Treasurer Leslie Scott said a court decision r 4 i I I s POUND EX I 1651 ) I V will be necessary before he can m 93MB It is seldom that cities the size of Salem get to see presidential candidates' "in the flesh." at least In the primary campaigns. But today candidate Harold E. Stassen arrives in Salem to begin a four day stay in the state and follow a schedule that calls for stops at many of the smai communities as well as the major cities of the valley, plus an over-the-moun-tains hop to Bend on Saturday. His schedule calls for five stops on Friday and five on Monday. That is a punishing schedule for any man, but it shows both the physical stamina of the big ex governor of Minnesota and his eagerness to meet and greet the people. Stassen has been building up strength in the year that he has devoted himself to the task of selling himself and his ideas as a candidate to the republicans. He has been forthright in his discus sions of public questions, has challenged men in high station, and has seemed to grow in stat ure as a political leader with the result that he has grown in pub lic favor. ! For what they are worth the polls show that Stassen has a very large following among those whose names are attached to the presi dency. David Lawrence comment ed in his column the other night on his strong showing in a late poll in which Stassen was pitted against Truman, which indicated Stassen's strength against the pro probable democratic nominee. There is reason for this strength. Etassen is young and clean and vigorous. He is a man of convic tion and with frankness in stat ing his conviction. His ideas of government are well balanced. He is by no means a radical, yet he believes firmly that the republi can party must be ready to adopt new policies to meet new condi tions. Stassen was a firm believ er in American participation in world affairs while governor of Minnesota, following closely the program of the late Wendell Will kie whom he helped to nominate In 1940. He now favors aid to help western Europe restore its econ omic life. Oregon welcomes Stassen. I am sure that he will win many new friends on the occasion of this generous visit. Army Reserve Project Given to Salem Contractor Renovation of three quonset hunts at the army reserve's local training site near 25th and Lee streets will be done by William Malotte Smith, Salem contractor, who was awarded a contract on a bid of $2,566 for the job. The contract was awarded by the vicinity maintenance engin eer's office at Ft. Lewis, Wash., with stipulation the work is to begin within 30 days. Interiors of the huts will be re paired and painted, new windows added, small porches added, doors rehung and outside lights In stalled. Bruises Incurred as Auto Strikes Train BRUSH CREEK Mrs. C. B Lewis incurred severe bruises and the family car was considerably damaged Tuesday night when it struck a train as Mrs. Lewis start ed to turn from the highway to cross the railroad track and enter her own lane. Animal Crackers Bv WARREN GOODRICH "Yes, Grandfather had aged quite a bit when that photo was Uken" I draw money from the tax surplus. He loia me Muimoman county Young Republican, club that an injunc tion, mandamus or declaratory judgment will be sought to give him a legal basis for writing war rants against the fund. The probability of a friendly test suit attacking the validity of the Neuner opinion was indi cated by Gov. John Hall at a re cent meeting of the board of con trol. Neuner declared that while in come taxes are presumed to be utilized as an offset; against pro perty taxes, money which is left over may be transferrer lo tne general fund as "miscellaneous receipts." This money, according to Neuner, may be used only for purposes already authorized by the legislature or the people, by vote, may expend it through ini tiative method. Income taxes, Neuner held, are not subject to the same constitu tional limitations as apply to pro perty taxes which was stressed in his opinion. Election Questioned The opinion cited that a 1947 act, authorizing the state board of control to hold a special tax elec tion next November to relieve the general fund deficit, is question able and that this election would not be needed if the income tax surpluses go intothe general fund. Voters at this election would not be asked to approve a special property tax to eliminate the gen eral fund deficit. Neuner said the constitution di rects the legislature to appropriate money to operate the state and that the legislature appropriated this money but not enough to fi nance all activities authorized. Be cause of this, Neuner declared, it '.vould be constitutional to use surpluses to pay fox these activi ties. Legislative Action Cited Netiner said the fact that the legislature created a $5,000,000 property tax reduction account precludes any thought that sur pluses are supposed to be set aside for future property tax reduction. 'If surplus has ', not been set aside, and it is my conclusion that it has hot, it is available in the general fund lor satisfying ap- propriations made by the 44th legislaUve assembly (1947 legls- I lature)." Neuner wrote "It is my opinion," he contin ued, "that after all the specific appropriations of excise and in come tax collections required by the distribution sections of those two laws have been satisfied, the balance of such collections plus estimated collections for the en suing year, constitute the surplus or estimated surplus remaining in the state treasury." Neuner declared that since the state has not levied a property tax since 1940. when only a $300,000 I levy was necessary, the state has lost its base on which to levy fur ther property taxes within the 6 per cent limitation. However, the state tax commission attor neys said, it is unlikely that this question would be considered in any court test. (Additional details on page 2) Quake Sways LA Biiildfings LOS ANGELES, Feb. 18 -UP) A sharp earthquake Shook the Los Angeles area tonight at 8:21. There were no reports of damage. At the Califorfiia institute of technology. Dr. Charles Richter, seismologist, said the tremor was "quite small. "It was very local and not more than 15 miles or so in area." he said. "It was not capable of do ing damage anywhere." A woman patron of a movie house in downtown Los Angeles suffered a broken ankle when some of the audience rushed out side. Maintenance crews In the city hall said the 28-story tower swayed with the tremor. Other downtown buildings shook and their windows rattled. Field Marshal List Sentenced to Life NUERNBERG, Germany, Feb. 19-(P)-An American military tri bunal today sentenced Field Mar shal Wilhelm List to life impris onment for his acts as German commander in the Balkans. Seven other high German mili tary leaders also were convicted and sentenced. Two generals were acquitted. The defendants were accused of being .responsible for the kill ing of an estimated 63.000 hostages in Greece, Yugoslavia and Al bania. 'StafTgcring Plans' for Alaska Projects Due WASHINGTON, Feb. 9 -JP) Rep. Crawford (R-Mich) said to day the government is making "staggering plans' to build up Alaska, especially its defenses. Crawford gave no details, say ing he could not disclose the plans until they reached a public land subcommittee which he heads. He indicated that would be within a few weeks. NINETY-SEVENTH YEAR E)D Hub Steel Cost ncrease Revealed CHICAGO, Feb. 19-y!p)-Steel producers hiked prices on an industry-wide front today as many major commodities continued .a modest price climb that started last Saturday. Prices of semi-finished steel were boosted about $5 a ton. Iron Age, authoritative trade publica tion, estimated the increase would boost costs $10,000,000 annually for non-integrated steel processors who buy semi-finished steel out side their own plants. Only a few steel companies, which process the unfinished steel themselves, have increased prices on their finished product. If the major companies follow suit, the price increase would run into many millions and possibly affect hundreds of products containing steel. Meanwhile, the upward trend in the commodity markets indicat ed that the recent general com modity price slump is over, at least momentarily. Some individual commodities continued to fluctuate sharply, however. Butter took another nosedive in the Chicago and New York wholesale markets. Prices broke 4 to cents a pound in Chicago to 76 cents lowest since November. In New York, the price dropped 2Vt to AVt cents. Louis Mayer ff jmsiwn ml X MUtZllXLlltl J kJ Money Earner WASHINGTON, Feb. 19. -AJFy- Vuis B. Mayer, the film magnate, led a treasury listing of top mon ey earners tonight. The movie industry provided more than two thirds of the 195 persons listed. Mayer drew $502,571 from Loew's, Inc., during the 12 months ended August, 1945, the treasury said. Behind him came Producer Wal ter Wanger and Actress Deanna Durbin, both of Universal Pic tures. He got $282,900, she drew $262,875. In 10th, 11th and 12th place, respectively, were Clark Gable, $229,687; Robert Montgomery, $226,333; and Lana Turner, $226, 000. Highest paid business men out side the movie field were Andrew Jergens and Joseph D. Nelson, executives of the Andrew Jergens company, Cincinnati. They tied for sixth place, each with $5,000 salary - - plus $250,000 "commis sion." Children Escape as Portland Qiurch Burns PORTLAND, Feb. 19 -OPT- A Bible class of youngsters marched to safety today just ahead of a $75,000 fire which destroyed the interior of Sunnyside Methodist church. The blaze was believed to have started in the basement, where the children were studying. Talk Here Today to Start Stassen on Tour of State Harold E. Stassen of Minne sota, national republican figure who has been a declared candi date for" the presidential nomina- Presidential aspirant Harold E. Stassen of Minnesota, doe in Salem today to start a circuit of western Oregon visits, ex pects te announce his decision on an Oregon filing while in this state, he told Seattle news men last night before an ad dress In that city. The national republican fig are, was quoted by Associated Press on his possible filing In this state, "We will answer that one when we get to Oregon. Governor Dewey is in that one and that Is one of the things wo most decide while there." Pe titions for Stassen's candidacy have been In eircmlatien over Orecon. tion for many months, will speak in the Willamette university gym nasium at 11 o'clock this morning at the outset of a fast-moving four-day circuit of Oregon. Stassen is due to arrive from Spokane by chartered plane at the Salem airport about 9 am. The candidate's advance liaison man, Vera Welch of Minneapolis 18 PAGES Signalless Rail Crossing Near State Pen Scene of Tragedy ! " if t i u 0v I e . t : , J, - Vi ' - - ; Southern Pacific trainmen and an anldentified man abeve examine the demolished automobile of Joseph A. Zielinskl, 920 Jefferson U Just after it crashed in:o a moving train at the east State street crossing- Thursday night, claiming the lives of Zielinskl and Mrs. Mary M. Aplin, 275 Hood st. Crosslnr sign and a freight ear at the scene show in background. Mrs. Matilda Zielinskl, widow of the de Truman Calls For Fight with 'Reactionaries' WASHINGTON, Feb. 19 - UP) - President Truman called on his party tonight to battle against "reactionary conservatism" and the "privileged few" in the com ing elections. "This is a year of challenge," he said. "I propose that we meet that challenge head on. "The people will again decide whether they want the forces of positive, progressive liberalism to continue in office, or whether, in these challenging times, they want to entrust their government to those forces of conservatism which believe in the benefit of the few at the expense of the many." The president spoke at a Jefferson-Jackson day dinner. Rent Control Extension Due WASHINGTON, Feb. 19 - (AA - Rent controls in their present form will be extended through March 31, congress leaders indi cated today. A longer extension providing some increases is slat ed te be approved before then. This is the schedule outlined by republican floor managers: 1. The house will pass by next Tuesday its stopgap bill extend ing the present law which expires February 29. The, rules commit tee ciearea u lor acuon today. 2. This measure is due to be ac cepted by the senate before the end of next week without change. and his Oregon tour manager, Robert Elliott, a young Portland republican leader, arrived in Sa lem Thursday. President G. Herbert Smith of the local university will intro duce Stassen at the public meet ing this morning. The gymnasium will be opened to the public at 10 a.m. Only enough seats for Willamette's faculty and law school will be reserved. Also on the speaker's platform will be Salem Mayor Robert L. Elfstrom, Stuart Compton, presi dent of the Willamette student body, and James Collins, law school student president. The former Minnesota gover nor's address will be broadcast by Salem's KOCO at 11 a.m. KSLM here will record the ad dress for rebroadcasting at 8 p.m. today. Stassen will leave Salem im mediately following his address for a fast round of receptions at Stayton, Scio, Lebanon and Sweet Home. He will be at the Oregon press conference . dinner in Eu gene tonight. Bend and Portland are among week-end stops and Woodburn, Silverton, Albany, Brownsville and Corvallis are scheduled for Monday visits by Stassen. The Orctcjor Statesman. Salem, Oregon. Friday, February 20. 1948 Merger Vote (Ruling . "o Spur Court Fight Circuit Judge Arlie G. Walker of Polk county Thursday ordered the West Salem city council to conduct an election proposing merger of that Polk county city with Salem. But merger opponents made it known immediately they are pre pared to fight the merger issue In the Polk county circuit court by taking advantage of a provision in alternative mandamus writs served on an west baiem counciimen which allows any of the defend ants to "show cause" by March 8 why such an election should not be called. The merger Issue was taken to court for legal interpretation of what constitutes a "common boundary" as specified in a 1947 state law written to allow merger of such across-river cities as Sa lem and West. Salem. Realtor in the mandamus action is Joseph Benjamin, one of the West Salem citizens who signed a petition requesting a merger election be set by the West Salem council. Po sition of the two cities and of Marion county's Minto island be tween them has caused divided opinion on the presence of a com mon river boundary. Councilman Roy Stevens, an opponent to merger, said last night he and other opponents will hire counsel to work with West Salem City Attorney Elmer Cook in preparing a case against the legality of the proposed mer ger. "The opposition has been saving its ammunition until the battle really starts," Steven aver red. West Salem Mayor Walter Mus grave, long- a staunch supporter of merger, indicated Thursday the burden of further action now rests with the opposition, as failure to file a demurrer by March 8 in the court would obligate the council to set an election. Chester Doug las, another councilman support ing merger, said he has favored settlement of the question of law but forecasts that the issue will be brought to public vote. France, Italy Ask Aid Funds Speeded WASHINGTON, Feb. 19 -UP) France is telling the U. S. that her dollar supply is running out and she needs $150,000,000 from this country in a hurry even before the Marshall plan can go into effect. And similar, but not quite so urgent, pleas are coming from Italy, The Netherlands and Aus tria. Government officials told of these developments today as a high congressional leader said the whole foreign aid situation threatens to become "a three ring circus" unless the senate and house get together. Morse Claims Public Losing Faith in T-II Act ITHACA, N. Y Feb. 19.-(P-Senator Wayne Morse (R-Ore) said tonight the American public gradually was becoming convin ced the Taft-Hartley labor law would not work. Morse, speaking at Cornell uni versity law school, urged repeal of the law and adoption of new legislation. ceased, la In Salem General hospital. Standing nearest the wn IteeJ auto Is Harold Woodruff. 1592 Oak it., firemaat to the left la the background Is Matt Bowen, Albany, Brakeman. and Mile Graber, Dallas, brakeman. all of the erew of the train Involved In the crash. (Statesman photo by Don Dill, Law Student Files for State Representative Richard H. Spooner, 24, Willa mette university law student, filed Thursday as a republican candi date for state representative of the 12th district, Marion county. Spooner is owner of the Eagle Flying Service here and is a mem ber of Sigma Chi and Phi Beta Phi fraternities. He was born in Portland but moved to Salem af ter the war. He is a former first lieutenant in the army air corps and was a fighter pilot in Eng land with the Eighth air force. Spooner said he has been much interested in Oregon politics, and his family dates back to 1140 in Oregon. He gave as his slogan "Active governmental participa tion by those who participated in defense," Spooner is single. One of Spooner's fellow law students at Willamette, Arthur L. Davis, 28, also filed for state rep resentative from this district last week on the democratic tick et. Other filings Thursday at the state house included Arthur J. Moore, Bend, as non - partisan candidate for the circuit judge of the 18th judicial district, and Charles K. McColloch, Baker, de mocrat,-for state representative, 27th district. School District Favors Building UNION HILL, Feb. 19 -Electors of recently consolidated school district 42-C Wednesday night vo ted their approval for a new school building estimated at $55, 000 and for additional financing for a site and a well. In the fourth balot issue the voters approved the former J. O. Darby place as site for the new school. The school building was ap proved by vote of 84 in favor and 52 against. On the other three issues the favorable vote was about 2 to 1. The well and site costs were estimated st $&00each. Weather Max. - 44 - 4S .. 7 S3 Mln. M U SO 4S 22 Prectp. .S3 .14 trace . M JOO Salem Portland Kan Francisco Chicago New York S3 Willamette river S I feet, rtaing. FORECAST (from U.S. weather bu reau. McNary field. Salem): Cloudy today and tonight with Intermittent lie-ht ratna. Highest temperature today. near 44 degree; lowest tonight, liom 33 to 4S degree. MUM PBECIPITATIOM (Frss I".-! U Sale) Thl Year Latt Year 'Average MJ1 29.84 Price Sc Mir Statesman staff pnetegraaber.) Czech Party Joins Anti-Red Coalition Bloc PRAGUE, Teb. 19 -0P- The Czechoslovak social democratic party, linked with communists in the past, voted tonight to Join par ties fighting communism attempts to run the national front coali tion. A series of emergency meetings brought together right and left wing leaders of the social demo cratic party. Top men met with President Edouard Benes today. The decision provides a coali tion bloc of 62 per cent in parlia ment against 38 per cent for the communists. Before the social de mocrats switched, the communists counted on their support for a 52 per cent leftist margin. With social democrats support, parliament has enacted soak-the- rich and land sharing programs sponsored 'fey the communists. Growing tension is gripping Czechoslovakia in a pre-election campaign. The date for the elec tion has not been choen becauae of the fight among the various parties. The Catholic peoples party newspaper, Lidova Demokracie, aid, "We must not have a fascist state. We cannot have an anarchy of communists." U. S. Traitors Said Training to Take Over Government WASHINGTON. Feb. It -(A) George M. Dimitrov, a refugee from reds in Bulgaria, told con gress today he is dead certain "American traitors" are being trained in Russia to take over the U, S. government. "America is communist target number one," he told a houe un American activities ubcommittee. Another witness, James Burn ham, expressed the belief that former Vice President Henry Wallace is "an unconscious cap tive" of the communists. Burnham, a New York pro fessor who studies political move ments, said he meant that Wal lace "doern't know what they are doing and they do." Democratic Move For Reconciliation Claimed Useless NEW YORK, Feb Ifl --llen-ry Wallace's campaign manager said today Sen. J. Howard Mc- G rath, chairman of the democra tic national committee, "might a well cease his invitation to Henry Wallace to return to the democra tic party." The third party political mana ger. C. B. Baldwin, said he refer red to broadcast last night by McGrath, adding: "Contrary to Senator McGrath's statement a large vote will be a progressive vote - - a vote for Wal lace and not a vote for Harry Truman or any presidential can didate of the bankruptcy republi can party." Ho, 214 Accident Kills an Wo By Osra4 Prang . SUH Writer, The Statasmaa Two Salem residents wera dead within a few mlnles Thursday night after their automobile crashed Into the locomotive of a moving freight train at the South ern Pad fie crossing on cast Stat street near the state prison. The dead are Joerpft A. Zielin skl, gS. of 020 Jefferson t, and Mrs. Mary E. A I pin. 27$ Hood U State police investigating the fatal accident aaid Zielinkl ap parently was driving the city bound auto when the collision se cured at 8:13, p.m. CeadJUea 'Net Series Mrs. Mathilda ZltliQtkl, widow of the dead man and third rx u pant of the auto, is in fcalem Gen eral bosplUl with head and rhent injuries. Hospital attendants said her condition was "not set lout" early today. r. A. Dewier, 1718 S. 12th t, engineer of the general frelgM train which was leaving for Al bany, said that as he approached the State street crtwsiog from the south, he taw the car approaching from the east, traveling at a "reasonable rate of iDeed. 84e4 Whistle Bewley said he sounded the engine's whistle three times at the car as it aprpoached the rroslng, but it continued to approach. The 1939 Chevrolet aedsn strurk the front of the engine a glancing blow and was thrown to the writ side of the tracks. The auto was demolished. , . . Bewley said tht t! t J!r "uf going slow" and that when he stopped the engine. Its rear driv ers were Just t the north edge t f the highway. A light rain m falling at the time of the accident. Thursday night's trigedy maths the second accident resulting In fatalities at the signalless rrosing within six months. Betty Rogers, 18, of Salem, was killed and a companion Injured last August 80 when the car in which they were riding skidded and crashed into a switch engine at the crossing. Mrs. Aplin died at the scene f last night's accident and Zielintkt a few minutes later at &alem General hogplta!, where he and Mrs. Zielirukl-were taken by city first aid men. i State " pohce who! Investigated the crash ald that ,i at the time the Zielinskl car 'hit the engine, other motorists were stopped at the west side of the crossing watt ing for the train to, cross. Mrs. Alpln was 'taken to the Clough-Barrlrk funeral home and Zielinskl to Howtll. Edwards fu neral home. , Zielinskl, who farmed for many years in the Ha re I Green area, re tired from farming and moved to Salem several veers ago. The trio In the accident were returning to Salem after attend ing an Eagles lodge committee dinner. Meat Packers Vole to Strike CHICAGO, reb. ll-(-A strike of more than 100.009 workers at meat packing plants in 28 stales was voted today by the CIO Unit- , ed Packinghouse Workers of Am erica. I The union's strike strategy com- ! mittee, which authorised the walkout after a 29 to one rar.k and file vote, declined to revetd the strike date. The union said It Is seeking a 29 rents an hour raise now. with additional Increases later to meet minimum family budget stand ards indicated by the bureau tt labor statistics. i Ralph llelstein, union president; ssid two-thirds of the wotktrs earn less than 81.10 an hour, as compared with the BUI figure cf $1.39 for a family of three. Stiilrntft-f or-Wallace Campaign Organized NEW YOWC Feb 19 -A- C. II. Baldwin, campaign manager for Presidential Candidate Henry A. Wallace, announced today the for mation of a national students-for-Wallace organizing committee. Units of the committee already are established on 80 college ram-! puftes, Baldwin said, and state-' wide students-for-Wallare confer ences are scheduled for this month and March in several states. STTDENTfl UTIIX ABSENT ! PORTLAND, Teb. 19 -(-. In- fluenza again kept about 25 per,: cent cf Portland's School children 1 from classes today, but most cf the 115 teachers stricken earlier recovered. T FT i man