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4Tn "Statesman; Solnu-Ofgon. Suadcr Docarahar .3, .1343
rire State Budget Deficit
Due Despite Revenue Rise;
Headache Ahead for Solons
. ; .- , . ... '
State Budzer .Durector Georn Aiken announced Saturday that
p there will be a sizeable deficit in the 1949-50 budget despite an ln-
f crease of about $30,000,000 annually in state and local revenues.
. Aiken made the prediction after slashing virtually all capital outlay
requests of the Oregon State institutions and many; other, items,
f The increase in the slate and local revenues was reported by the
ft state tax commission in a financial
statement here Thursday. Largest
Increase was on ute.coumy, aij,
f?chool and other local revenues
f and in individual personal income
taxes.
t": Aiken said the state budget for
the next biennium, starting July
r- l, 1949, is nearing completion and
should be ready for presentation
? 'to Gov. John H. Hall not later
- " than December 15. Governor Hall,
- as state budget officer, must pass
on the budget before it is referred
' ;to the legislature for final con
i aiders tion.
. : To Provide Serious Problem
Governor Hall and Aiken agreed
f that the state general fund budget
.requests, reduced from approxi
i, mately $135,000,000 to less than
: $100,000,000, will provide a ser-.-
ious problem for the legislature.
General fund revenues for the next
V biennium were estimated at ap
proximately $75,000,000.
"While most capital outlays
have been pruned from the state
. budget that does not mean that
expansion of state institutions can
l be halted," Governor Hall declar
V ed. The governor said his informa-
tion indicated that the current
y $10,000,000 institution building
program merely had caught up
it with the state's current demands
'- but that additional facilities will
be needed within the next few
f, years.
f Similar Situation
' A somewhat similar situation
i exists at the higher educational
'centers, Governor Hall averred,
L where all present buildings are
taxed to capacity. He said a large
art of the $4,000,000 of state
ildintf funds allocated to the
state board of higher education
have been expended or obligated.
Less than $200,000 remains in the
$3,000,000 of state building funds
i a 1 located to the state board or
jir control for institution betterment
I'M Senator Dean Walker, long
i- chairman of the senate ways and
t: means committee, declared here
this week he has no cureall 'pro-
gram for the state's financial ills.
; N One Knows How"
'i "It is apparent that the legisla-
-tyre will have to meet the situa
"' tion, but no one knows how at
the present time," Walker said.
'- B3sed on figures for the past year
It is likely that the liquor profits,
i now used for public welfare pur-
f posses, will continue to decline,
'f with demands for more relief mon
. ey inevitable.
. Most legislators here this week
I refused to discuss the new old age
pension law approved by the vot--
ers at the general election other
than to agree 'it would develop
Into a financial headache.
Other substantial increases in
-"'. appropriations .are certain to be
!. sought at the T949 legislature by
the state board of education, for
salary boosts for state workers.
state board : of higher education,
V arid by other state agencies.
; The suggestion has been made
' that a group of legislators confer
'-$ with Governor Hall and Aiken
before the-state budget is approved
.by: the former, but no definite de
.. ciajon has been reached.
Harry Hughes
Top Winner
At Corn Show
By Llllle L. Madsea
Tarm Editor. ThoS Statesman
CENTRAL HOWELL, Dec.
Harry Hughes of Woodburn won
sweepstakes here tonight on his
hybrid 355 exhibit at the annual
Marion County: Corn show. The
10 ears in the exhibit were grown
on Willamette sou - without irri
gation. -
Professor R. E. Fore, Oregon
State college, who. judged the
Marion county event for the sixth
consecutive year, expressed sur
prise at the quality and quantity
of corn shown In tfie face of the
poor planting and growing sea
sons of spring and early summer.
Central Howell Farmers union
sponsored the show with T. R.
Hobart chairman, ; assisted by
Harry Riches, Dan Steffen, Oar
ence Johnson, William Hatteberg
and Eldon Watts. Preceding the
show, the auxiliary, headed by
Mrs. John VanLaanen. served a
ham dinner to '178.
Charles Rinehart, ' Jr., Silverton
Future Farmer youth, described
his recent trip to Kansas City;
Larry Adams of Woodburn Rave
a vocal solo, and Charles Fitz
gerald. Ray Dean and Ran Schatt,
Gervais, gave a group of vocal
selections accompanied by Elain
Reed in a brief FFA program.
Showing of pictures of aencul
tural interest, by Harry L. Riches,
county agent, completed the en
tertainment.
Winners In the yield contest
were Elmer Jeskeyy Aurora wjh
67.4 bushels of shelled corn to
the acre; Ray Rutschman. SilJ
vertpn, 63.4; Eldon Watts. Silver
ton, 59.7; Pohlschneider Brothers,
St. Paul, 54 J; Claude Steusloff,
Salem, 53.8; William Roth, Sil
verton. 52.5; Frank Bernard, Sa
lem, 50.9 and Henry Beutler,
Salem, 49.8. i
Wayne Johnson. Jefferson top
ped in the annual judging con
test, with Howard : Klopfenstein.
Cecil Roth and Wayne Steffen,
all Silverton; ' Eldon Buetler. Sa
lem and Roland Schatt, Gervais,
following. f -
Winners in the adtllt corn show
ing were Harry Hughes, Alvin
McLaughlin, A. E. Hughes, Dave
Dryden, Harry Smith and ' Bob
Andrews all of Woodburn. Four-H
club winners iwere Fred Prantle,
Woodburn; Wayne Goode, Salem;
Wayne Johnson, Jefferson; Elvin
Goode, Salem,: and Glen McLaugh
lin. Woodburn. Winners in the
FFA division' were' Victor Dry
den, Woodburn," Ttm Moser and
Wayne Steffen, Silverton; Merle
Leughty and palton Davis. Wood
burn and Harold Watts, Silverton.
'About two-thirds of the people
who obtain divorces in the United
States have no children; most of
the rest have only one child. '
Bids Expected
On Vet Bonds
Several bids are expected to be
received for the $2,000,000 bond is
sue, scheduled for sale by the state
department of veterans affairs here
Tuesday, officials announced Sat
urday. .-
The bonds originally were of
fered for sale November 5 but no
bids were received at that time.
Investors attributed lack of bids
at the November sale to passage of
old age pension bill at the general
election which, they said, had con
fused the state's financial situation.
This situation now has been iron
ed out, officials averred, to the ex
tent that investors are anxious to
bid on state securities.
Although limited funds have
been available since November 5
a large number of veterans' farm
and home loan applications have
been fully processed during the
past month. Many other applica
tions have been investigated and
approved pending sale of the $2,-
000,000 bond issue.
Chambers Bird
Judged 'Best'
A blue check cock racing pigeon
owned by Doug Chambers of Sa
lem last night was judged grand
champion of the Second Annual
Cherry City Racing club's exhibit
at the YMCA. Chambers won the
Art Edwards perpetual trophy for
having "best bird in show." A
record number of 157 birds were
entered, and were judged by the
veteran A. Wisenborn of Port
land.
Birds owned by Ray Page of
Salem won nine other firsts in
the show, and Conrad Reisbeck
of Dallas was a winner in two
events. Chambers won the Mar
ion Feed 6c Seed Co. trophy and
Johnny Gunnel 1 of Salem won
the Al Brown trophy. Almost 60
people sat in on the club s annual
banquret.
Schuss Buys
Winona Chalet
Al Schuss, Salem insurance
man and former sportscaster, an
nounced Saturday he has purch
ased the Winona Chalet, night
spot and restaurant on the Salem
Dallas highway.
Schuss said the sale was com
pleted Saturday night following
negotiations with the present
owners, Mr. and Mrs. Jack Scott
of Salem. He said Scott would
remain on as chef and Mrs. Scott
as hostess. The same type of fine
food will remain on the restau
rant's menu, Schuss advised cus
tomers. Schuss said the business would
remain open through next Satur
day night and then close for a
short period while alterations and
remodeling are being completed.
Announcement of the re - open
ing date will be announced when
it is definitely determined when
the work can be finished.
Man Slightly Hurt
As Car Hits Pole
William Shattuc, 415 Market
St., suffered minor injuries when
his car struck a telephone pole
in the 2700 block on North Front
street Saturday night. The front
end of the machine was damaged.
Shattuc was arrested by city
police on a charge of being in
toxicated in a public place and
committed to the city jail.
Young GOP
Passes List
Of Resolutions
(Story also on page 1.)
"Not threatening o- demand-; Named to Committee
tral committee, both of Portland,
also spoke briefly.
Defeated for the presidency
was Robert Nielson of Eugene,
elected assistant chairman.
Other new officers include the
following:
Jim Thayer. Carlton, vice pres
ident at large; Richard Soooner,
Salem, treasurer; James Collins,
Salem, national committeeman;
Mrs. Helen Hamlin, Milwaukie,
national commit tee woman.
the building of a rock dam one
mile upstream from the present
intaate; a flam about five miles up
stream above some of the present
pollution, or a dam 13 miles up
stream on a site which might be
obtained
ing; but letting you Cthe party
officials) know we're on the
way,"-was the Young Republican
watchword conveyed Saturday
nigh by new president Vivian
McMurtrey, Portland, as the state
convention closed here
Anderson, retiring head
that the issue is not one of "young
vs. old."
Cancelling scheduled Sunday
morning sessions, the m-day
meeting ended with a banquet
at the chamber of commerce, at
tended by numerous party lead
ers. Business sessions during the
day were at the armory. There
they adopted resolutions, with
few battles, which called for:
A governor's commission to de
termine incidence of gambling in
the state, which forms should be
suppressed and which should be
legalized and taxed, after a de
bate over the resolution's pur
pose, finally recorded as being
ing "with a view to terminating
the allegations of culpability of
some law enforcement authori
ties." Laws to prohibit racial dis
crimination in public places and
to establish a state fair employ
ment practice code for private
and public employes.
More Resolutions
A survey of housing require
ments: a governor's commission
to recommend how to modernize
the state government: establish
ment of the office of lieutenant
governor or provision for the
governor's succession by an offi
cer elected on a statewide basis;
revision of the legislative dist
ricts to align with population
changes; setting up legislative
sub-districts as a "grass roots"
measure.
Making the Columbia basin de
velopment plan an actuality and
prohibiting diversion of Columbia
waters until needs of this water
shed are met; endorsement of the
legislative interim committee's
20-year highway program: estab
lishing a state junior college in
Portland; eliminating geographi
cal limits on law officers' ar
rests; state financial backing to
local sewage disposal programs;
elimination of prewar residence
requirement for state veterans'
loans; setting up a permanent
Young Republican legislative com
mittee; prohibition of party lead
ers from dealing with state con
tracting agencies except as prin
cipals. Only resolution not approved
proposed a separate system of
federal courts for labor-manage
ment disputes, which was tabled.
A move to cut the top age
limit for members from 40 to 36
years was defeated.
Got. -Elect McKay Talks
Speakers during the day in
cluded: Governor-elect Douglas Mc
Kay, Salem, who called for "a
good program and selling of it,"
and proof that "we don't repre
sent special interests."
Mrs. Marshal: Cornett, Klam
ath Falls, national committee
woman, who called for a program
of education for leadership in
bringing "Lincoln's principles
down to the present.'
Ralph Cake, Portland, national
committeeman, who urged sin
cerity in the party, use of ideas
from all segments, and uniting
behind new leadership.
Portland Speakers
Mrs. George T. Gerlinger, for
mer national committeewoman,
and Mrs. John Y. Richardson,
vice chairman of the state cen-1
Named to the state executive
committee, with a two-year and
a one-year term from each con
gressional district, were Max Mc
Millin, Silverton. and Phil Bla
dine. McMinnville. first district:
Steve Jfan Rerff. Hood River. and
added ' Charles Revnolds. LaGrande. sec
ond; Harold Holmes and Marilyn
Johnson, both of Portland, third;
Robert Carmichael. Springfield,
and Clay Meyers, Eugene, fourth. )
The executive committee is to
name the state secretary and a
vice chairman for each congres
sional district.
Russell Tripp, Willamette uni
versity student, was banquet
toastmaster.
Pedestrian Hit
By Automobile
Mrs. E. W.: Johanson, 745 Ferry
st., received' slight head injuries
Saturday evening when she was
struck by a car driven by Herman
W. Fry. Jr., 1075 Electric St.. at
the intersection of State and 12th
streets.
Mrs. Johanson was given treat
ment by Salem first aid men and
was later taken to a physician by
Fry-
Fry was cited by city police on
a charge of failure to yield .right
of way to a pedestrian.
Forum Decries
Water System
At Silverton
SILVERTON, Dec. 4 Too much
pollution in winter and too little
water m summer were decried at
a Friday night public forum, called
by the Junior Chamber of Com
merce to discuss improvement of
Silverton's water system.
Bruce Billings, former member
of the U. S. Forest service, lead the
round table discussion and report
ed on a survey of the Abiqua
watershed area from where the
present supply is obtained. Dr.
W. E. Grodrian, president, of the
Junior Chamber, presided and
present in the forum were Mayor
C. H. Dickerson, Councilmen C.
H. Weiby and Errol Ross, councilman-elect
George Wiesner, who
is also president of the Silverton
Rotary club; Allan Gribble, presi
dent of the state Isaac Walton
league, and Dr. P. A. Loar( "vice
president of the Silverton Plan
ning commission, and city health
officer.
Brought out at the meeting were
the serious sources of stream pol
lution above the present location
Of the water-intake for Silverton,
with the conclusion that the pres
ent chlorination system might not
be wholly adequate during the
rainy season. The water is now
pumped into the system at a cost
of about $300 a month, according
to statements made at the forum,
and members expressed the
thought this might be lessened
after the building of a dam.
Three suggestions made were
'1 r fi
This pattern is beautiful... jl
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on state-owned lands
where pollution could be con
trolled. The expense of the latter
suggestion made it seem Unprac
tical to the majority of those tak
ing part in the formum. The use
of wells was dismissed as imprac
tical also, as the city already has
three with only one producing.
Mayor C. H. Dickerson reported
receipt of two ears of pipe, pay
men tjrand Installation of which
would fVbsorb a large part of the
accumulated surplus In the pres
ent water fund. He said replace of
pipelines, and laying of new pipe
for additional users wera badly
"needed. ' i
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