2 The Statesman,. Salem. Oaon. Ritncrv, Jwr .12. 148
Rep. Thomas Urges Tax Laws
Simplified, Surplus Fund Freed
Oregon's 1949 legislature must simplify tax laws and free the
$50,000,000 surplus income and excise tax fund if the state's mount
ing budget deficit is to be overcome. State Rep. Lyle Thomas said
Saturday.
The Dallas representative and Farmers union official executive
leveled criticism at Oregon's tax structure in a speech at the annual
Statesman correspondents Christ
mas party ai me senator noiei.
Thomas said the lawmakers
must eliminate the property tax
as the base of the state tax
system and divert income and
excise tax surpluses, liquor funds
and highway money to the gen
eral fund.
He . described the present tax
system as "a series of obstacles
that tie us down."
Simplify Tax Laws"
Our need is to simplify tax
laws and make them conform to
a business-like system," Thomas
stated.
He advocated a system under
which people would be taxed for
their ability to pay, and declared
the sales tax was a most nag
rant violation of this theory" be
cause every person, rich or poor.
must pay regardless of their in
comes.
Failed U Heed Advice
The 1947 legislature, Thomas
said, failed to heed the advice
of the late Gov. Earl Snell and
fcassed the sales tax bill Instead
ef freeing the surplus excise funds
for paying state expenses. Under
the present law the surplus can
be used only to offset property
taxes.
Thomas proposed that all state
tax funds should be- channeled
into the general fund. He said
the "mystery of the unbalanced
budttet" was a problem "only a
legi lative body could evolve."
He referred directly to the 1947
session, in this remark.
Against Earmark In
also rapped earmarking of
liquor funds 4o pay state pen
sions and welfare. With these
funds as the only source to pay
welfare costs, he said, the state
treasurer is forced to borrow
money frequently when liquor
receipts fall short of needs.
Passage of the recent pension
law in the general election, Thom
as continued, merely expressed
the general sentiment of the peo
ple who are asking the legisla
ture to enact a humanitarian pen
sion system. "If the legislature
had done something about this
in the 1947 session, this bill
would never have passed.
Thomas said he opposed any
tightening of present initiative
and referendum laws under which
the increased pension bill was
voted in.
"We would be better off to
liberalize these laws," Thomas
stated. "If we believe in demoe
racy we have to believe in it
all the time."
Legion Post to
Hear Kirkwood
James W. Kirkwood, professor
of speech at Willamette univer
sity, will be guest speaker at the
regular meeting Of the American
Legion post 136 Monday night at
7:30 in the Legion hall.
Kirkwood will speak on the
topic "Private Worlds", describ
ing an entirely different approach
to the problem of straight think
ing and maintaining good mental
attitudes.
Howard Kaffun is in charge of
the program. All members are
requested to attend.
Tremors Common
In Palm Springs
PALM SPRINGS, Calif, Dec
11 -P)- The folks in this desert
winter resort town were getting
almost bored with earthquakes
today.
"What, another earthquake?
My, my," they said when a "good
sized" tremor jarred the area at
9:12:46 a.m. today.
Palm Springs had another
quake yesterday, and several
lesser tremors earlier in the week
But these were just aftershocks
from the big one a week ago
which electrified all southern
California, causing some minor
damage.
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Uranium Ore
Helps Revive
Ghost Towns
WASHINGTON, Dec. 11
Ghost towns of the gold mine era
are coming back to life again but
the man with the sluicing pan is
giving way to a guy with a Geiger
counter.
One hundred years after the
miners of '49 struck it rich in the
gold fields of California, a new
rush is on for uranium, the stuff
that kindles atomic fires.
The rush is not confined to
America. It's world wide, the na
tional Geographic Society said to
day.
The hunt for the ore is "radio-
activating" old ghost towns of
once abandoned mining settle
ments, opening up undeveloped
lands and creating new settle
ments, the Society reported.
The outstanding sources for
uranium are still the Belgian Con
go and the Great Bear Lake region
of Canada but mention is also be
ing given to Czechoslovakia and
other areas of Europe.
During the past year uranium
rushes also have been boosted, the
Society said, by discoveries in
Alaska, other areas of Canada,
South Africa, and in Latin
America.
11
Millmen Given
Jobless Pay
NORTH BEND. Ore.. Dec
(JP)- Lumber and logging workers
idled for 10 weeks when water
front union pickets blocked en
trance to the Irwin-Lyons lumber
mill here have been awarded un
employment compensation.
Aubrey Tussing. chief referee
of the Oregon unemployment
compensation commission, upheld
the arguments of the 400 AFL
mill workers and CIO logging
crewmen that they were unable
to enter the mill property. Claims
total an estimated $50,000.
The mill workers argued they
were threatened with bodily harm
by CIO longshoremen and mari
ners union pickets. The picketing
resulted from a jurisdictional
dispute.
Spy Documents
Touch on China,
Italy Secrets
(Story also on page 1)
WASHINGTON, Dec. 11 -UP)
Twelve of the many U. S. con
fidential state department papers
uncovered by the house un
American activities committee
containing international dynamite
were made public today. The
papers received 10 years ago by
an admitted communist agent
were released to the press by
the committee with state depart
ment, approval.
Among the documents are type
written copies of 21 diplomatic
messages signed by such pre-war
figures in American diplomacy as
former ambassador to France
William C. Bullitt, former am
bassador to Japan Joseph C.
Grew, and former ambassador to
Poland Anthony J. Drexel Bid-
die, jr.
Potential Yalae Great
Their potential value to other
governments at the time they pur
portedly "leaked" from tne state
department is evident from a
cursory examination.
Britain's naval plans in ijb,
for example, were of vital con
cern to Adolf Hitler in his then
undisclosed plans for conquest of
Europe.
Yet one of the documents, a
memorandum which committee
records say is in the handwriting
of Alger Hiss, former state de
partment official, spoke of Brit
ain's battleship building plans in
that critical year 18 months be
fore World War II broke out with
Hitler's invasion of Europe.
A long message signed "Grew,"
dispatched from Tokyo at noon,
Feb. 12. 1938, and marked "strictly
confidential," told then Secretary j fy
of State Cordell Hull of Japan's
rising temper against the British
in China.
Been of Great Value
Such information that a British
official contemplated the idea of
ending British support to China's
Generalissimo Chiang Kai-Shek
obviously would have been of great
value to the Japanese at that time.
Among documents relating to
pre-war Europe, several related to
Hitler's secret plans to seize Aus
tria and of Germany's hope to
negotiate a trade agreement with
the United States a year before he
plunged Europe into war.
A cable from U. a. consul oen-
eral John C. Wiley in Vienna,
marked "Rush" and sent to Secre
tary Hull on Feb. 15, 1938, told of
! a dinner he attended with Austrian
die in Warsaw, Poland, disclosed
to the state department that he
had received from Polish officials
"in the strictest confidence" a
story of Mussolini's plans to avert
German encroachment in the
Daubian valley.
The message spoke of "Musso
lini's interest in embarking on a
potential counter policy vis a vis
Germany's suspected aspirations
in Daubian valley; the counter
policy envisageing economic as
sistance to rescue the Danubian
and Balkan states - from being
swept into the German camp.''
Red Filibuster
Blocks U. N.
Ad j ournment
PARIS, Sunday, Dec. 12 -(fl5)-A
Soviet filibuster on the Korean
question disrupted today a Unit
ed nations plan to adjourn its
Paris meeting this morning.
The 58-nation assembly was re
cessed at 2 a.m. until 3 pjn. (9
a.m. EST) this afternoon. Dele
gates gave up their effort to com
plete work on the Korean case
when Russia, Czechoslovakia and
Poland got on the speaker's list
with long addresses obviously
ready.
The Russian bloc is fighting a
majority plan which would con
tinue the U.N. Korean commis
sion for another year and recom
mend approval for the government
of the republic of Korea. Russia
has boycotted the commission
since it was created. '
U. SL Romania
Trade Insults
Over Envoys
By! John M. II is h tower .
WASHINGTON, Dec. 11 -;p-Romania
is throwing two Ameri
can andj two British diplomats out
of the country, and the United
States i? retaliating by similar or
ders fori two Romanian envoys as
signed to Washington.
The Romanian communist gov
ernment said the four it is tossing
out conjspired with "spies and sa
boteurs' The U. S. called this ri
diculous. Britain delayed a deci
sion or whether to demand the
recall 'of Romanian diplomats
from London.
This (latest flareup in the cold
war was revealed both here and
in Bucharest, where the major ac
tion centered. It involved an ex
change pf diplomatic insults in po
lite terms which, however, scarce
ly served to conceal the bitterness
underlying such incidents as this.
The four Anglo - American dip
lomats' had been named in con
nection .'with trials in Romania of
alleged I plotters, spies and sabo
teurs against the communist gov
ernment. In the latest of these tri
als, the government alleged that
one of the defendants had con
fessed that the Americans and
British ipromised they would par
achute jarms and troops into Ro
mania 4or anti - government for
ces in event of conflict.
The state department denied all
-4-
charges against the American dip
lomats. American Minister Ru
dolph E. Schoenfeld so informed
Romania's woman communist -foreign
minister, Anna Pauker, in
note delivered to her yesterday.
At the same time Schoenfeld
said that in conformity with us
ual international practice," the
two Americans would be with
drawn. He labeled the charges
against them ridiculous and con
trary to fact
The state department press of
ficer, Michael McDermott, re
leased the exchanges of notes be
tween Pauker and Schoenfeld. He
immediately announced also that
the state department notified the
Romanian legation yesterday that
two of its top diplomats are "per
sona non grata" (personally un
acceptable) to the American government.
Java Peace
Talks Broken
THE HAGUE, Dec. 11 -p)- A
decision to break off deadlocked
Dutch - Indonesian, peace talks
was announced today by the Ne
therlands government.
The announcement said further
negotiations with the Indonesian
republic would only delay a final
solution of the Indonesian prob
lem. I
Instead, the government said,
Dutch authorities were f going
ahead with : the establishment of
on interim i government to rulo
temporarily over all areas fcf In
donesia except those controlled by
the republic ' f
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Donald Emerson
Elected by Group
Donald A. Emerson, Salem, as
sistant state superintendent of ed-
lStVi 61 I Cb.Sr KurVnShuhnigg i 1
the Northwest Association of Sec
ondary and Higher Schools at a
convention in Spokane Saturday.
Emerson will fill the unexpired
term of P. L. Stetson, who re
signed and accepted an appoint
ment as executive secretary of the
association.
Greek Guerrillas
Regain St
ronghold
LONDON, Dec. 11 -JP) The
communist guerrillas of Greece
claimed tonight they have re-
occupied most of the northern
Grammos mountain hideouts from
which the Greek army drove
them in long, hard fighting last
summer.
to Classify
LOST, woman' tooled leather bill
fold In Woolworth"s Saturday after
noon. Finder may keep money as re
ward for returning billfold and val-
bl papers. Phone 2-8629. N'ama
INEZ U engraved on lruide of bill
fold.
and other top diplomats shortly
before Hitler imposed his "ansch
luss" on Austria.
Most Horrible Day
Wiley noted that the dinner at
mosphere was "most oppresive," i
and continued:
"To French minister, Schusch- i
nigg described visit to Berchtcsga- ! i
den as the most horrible day of his ; ;
life. He says Hitler undoubtedly a
madman with a mission and in
complete control of Germany.
"Hitler openly told him of his
desire to annex Austria and de
clared that he could march into .
Austria with much greater ease i
and infinitely less danger than he ,
incurred in remilitarization of the !
Rhineland. '
"The French minister states
that this was the most critical
moment since, July, 1?34. 'It is
not the end. It is the moment be
fore the end.' In his opinion Aus-
tria can only be saved by immed
iate reconciliation of France and i
England with Italy and energetic i
joint act." 1
On March 29. Ambassador Bid-
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