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1 The StoosmcnC Salem, Oregon, FridaTr McrrcH I, If 41
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tfa Favor Stoeys Us, N6 Fear Shall Aw
first SUtesssaa Karcfc M. USI
THE STATESMAN PUBLISHINC COMPANY
CHARLES A. SPRAGUS. Editor and Publisher
fXntertd tt tli rxl0fflc kt Siltm, Ortfoo. M Meond class matter under act of conaroas March a, II fbSaneg
. evory morning except Monday. Burin offio US S. Commercial. Salem, Ortgon. Telephone S444L
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For This Our Gifts ...
One; of the saddest things in connection with
the trial of 15 Protestant ministers in Bulgaria
is the report that their receipt of funds from
Americans was used against them. They were ,
accused of taking this money as pay for espion
age instead of spending it for church aid. The
charge is of course utterly false; and it weighs
heavily on the hearts of Americans who sought
out of their generosity to succor their brethren
in Christ overseas.
Nearly ajl of the churches, Catholic and Pro
testant, conducted vigorous campaigns to raise
funds for European relief. Money was sen$,
foodstuffs and clothing were shipped in large
quantities. Distribution was made not through
American channels but through churches over
seas, with the World Council of Churches in
tieneva taking charge of donations from Amer
ican Protestant churches and the Catholic
churches distributing supplies from their fellow
churches here.
Certainly there was no thought of espionage.
The aim was to give physical assistance and
spiritual comfort to the distressed churches of
Europe, their pastors and members. It was
thought that She restoration of religious life and
activity would do much toward rehabilitation
of the people, giving them hope and confidence.
It is a bitter thought to realize, that these gifts
are twisted into evidence against these patient
shepherds of the flock; whose chief concern was
religion and not politics. One reflects however
that the charge is merely a pretense, trumped
up to condemn men who were condemned even
before they were arrested. The communist re
gimes are determined to sever all ties, religious
as vrell as other, to link the people under them
with countries of the west. .
valid the levy of personal property taxes on
national banks; The corporation excise tax was
devised particularly to collect taxes from banks.
The original draft excluded certain types of cor
porations: utilities, those whose income was al
most entirely from real estate rentals, ori the
ground that they were already (this was 1929)
very heavily taxed by levies on real property.
To lighten the burden on other corporations the
original act in 1929 allowed them to deduct
from the tax 90 per cent of the personal prop
erty tax they paid. It was estimated that in this
way banks, being exempt from personal prop
erty taxes, would pay the full 8 per cent, while
the effective rate on other corporations would
be about 3 per cent. If this had not been done
the banks would hays enjoyed a substantial tax
advantage. In later years the deduction for per
sonal property tax paid was cut to 50 per cent,
which it is at present.
All these facts should be considered by the
legislature as it studies HB 208. Equity should
be preserved as between banks and other cor
porations; and the present inequity as between
incorporated and unincorporated business should
not be increased. Corporations probably should
pay something extra for the privilege of operat
ing as corporations but they should not be pe
nalized unduly. Most of our Oregon corporations
are pretty small potatoes, so the tax hits "per
sons" and not just legal fictions. -
If mora revenues-are needed by the state the
easiest and most equitable method would seem
to be through HB 281 which eliminates deduc
tion of federal income tax on personal incomes
ahd readjusts the rates. This would spread the
load on the familiar basis of ability to pay with
out putting the gouge on a particular form of
business operation, such as the corporation.
Moving Stairway Going Up
.Tax Deductions for Corporations
it is true that by removing the partial deduc
tion allowed corporations in computing; .their
state excise tax the state would pick up con
siderable revenue $3,000,000 a year, it. is esti
mated; but it will impose a considerable penalty
on business operating under the' corporation
form.
Corporations now pay heavy federal taxes on
their incomes, as well as the state excise tax of
8 per cent. Their stockholders pay personal in
come taxes 'federal and state, on dividends they
receive from corporations. 1
Business which is operated as a cooperative,
a partnership or as a proprietorship escapes all
corporation taxes. Stockholders of corporations
feel they are at a competitive disadvantage with
cooperatives and unincorporated business, be
cause they are in effect subject to double tax
ation. , -
Probably few know or remember the origin
of the corporation excise tax. It was enacted
following a court decision which declared in-
The house staged a revolt Wednesday. Worn
down by the school lobby the members rose up
and smote the bill to legalize a state association
of school directors. The prospect of another un
it in the school lobby made members see red,
despite arguments that this association might
counter the teachers' lobby. The revolt didn't
come however until after the house had passed
HB 193 to boost the basic state school fund by
$30 per child. So the lobby won after all.
This from the Canby Herald Suggests another
reason why-editors sometimes go berserk:
! A lady came to the Herald office one day last
week and asked if we had any old newspapers
to spare. "Sirica the Portland papers stopped
printing," she explained, "I haven't anything
in the house to start fires with."
i Information from Copenhagen is to the effect
that Denmark may join the North Atlantic se
curity pack. It's a hard decision to make. The
Danes realize that in a war between east and
west they would just be Danish squash.
Budget Control in Oregon 'Just Isn't'
Br Ralph Watson
George Aiken, it develops Is
noU the director of the budget,
or the budget master, at alL He
is just tne exe-
cutive secretary
of the gover
nor, a compiler
of figures and
estimates hand
ed him by the
many and var
ious depart
ment! of- the
state. He writes
their financial
tickets as they
hand them to
him. He looks
them over and
if they seem too high he may
scale them down so that they
do not hang too far over the
fence of the . constitutional lim
itation which surrounds all such
things. And then be talks every
thing over with the governor,
and if the governor gives him
the green light on his sugges
tions he prints the book and
"recommends" to the legislature
that it run along with his train
of thought
And the governor, when you
come right xiown to eases, rides
long in much the tame kind of
a boat. He may agree with his
budget director that some part
of the budget is riding at a
cockeyed elevation and he and
Aiken can batter it down to
where they think it ought to be
and tell the legislature what
they think the elevation ought
to be, but that don't make any
difference at all to the legisla
ture unless it wants to agree.
Then there is the state board
of control, the three Big Brass,
the governor, the secretary of
state and the state treasurer.
They are the three men in the
same brand of boat except that
they can reach out and put the
finger on a few of the spots and
tell them what to do stout spend
ing money.
Did you ever step to think
that when it gets rirht down to
It the state board of control
hasn't any control over any of
the- functions of the state gov
ernment other than the state
institutions the hospitals, the
penitentiary, reform school and
such others. They can tell the
heads of these institutions what
to 46 and when end how and
if it U not done they can lift
their official scalps and hlras
another scalpee. (
The governor is up against the
same gaff when it comes to tell
ing the board of i higher educa
tion, and similarly constituted
departments, where to head in.
He can make recommendations
to the highway commission, or
the board of education, or to
this department or that and if
they don't come along with hn
he can fire the whole outfit
and get a new one in its place.
But that is a messy procedure
and usually gums up the works.
What's all this about?. Well It
comes from a lecture given by
Senator Belton, chairman of the
ways and means committee, on
the subject of efficiency, econ
omy and budget control of de
partmental expenditures. The
board of control was for it, two
of its members had said they
wanted the "deadwood" cleaned
out of the state payroll and re
'sultant salary adjustments made.
It was suggested that maybe the
budget master, or the governor,
could scale down the high spots
and fill up the valleys. But It
seems, so far as salaries and
wages are concerned, they have
turned over that Job to the civil
service board almost in toto.
Consequently, from what could
be learned in the lesson, such a
thing as budget control in Ore
gon just isn't. Maybe the ways
and means committee is going
to 'recommend' that the legis
lature do something about it,
provided it finds time after it
takes care of the "surplus' and
does a few other chores like that.
Senator Gibson, who Is Scotch
and believes in budgets with a
mouthful of teeth, was told to
think it over and tell the com
mittee what he found out about
the problem, if anything.
Literary Guidepost
Br W. G. Jtog-ers
GARRICK, by Margaret Barton
(Macmillan; $5
David Garrick, who as an act
or is said to have revived Lon
don's interest in Shakespeare and
as an entrepreneur to have help
. ed make Stratford a shrine, was
in 1717. Brought up in Lichfield,
where Samuel Johnson was his
"slightly older friend, he took a
flier in the wipe business with
his brother Peter bit at 24 years
of age succumbed to the allure
of the candle-lighted stage.
Testing his talents in the role
of Richard III, he played in Dub
lin, won engagements at Drury
Lane and Covent Garden and at
30 began his 29 years as Lacys
partner in the management .of
Drury Lane. He presented 75 new
plays, besides pantomimes and
other entertainments, and in the
course of a life sin which "he
could not stop acting," he took
90 different parts.
Practically everyone of any ac
count in 18th century; England
knew him; the list of his friends,
enemies and acquaintances in
cludes, besides Johnson and his
. BoswelL Reynolds, jRomney,
Gainsborough and. Hogarth, who
was bis dear intimate; Gold
smith, Smollett i and I Richard
Brinsley Sheridan, who finally
bought him out; Sir Horace Wal
pole, and even a pair of Georges.
Peg Woffington was for a time
his mistress, but in 1749 he took
a dancer for wife, and there was
"not in all history," says this ad
miring biographer, a more per
fectly happy marriage.' '
Thinking the best is none too
good for Garrick, Miss Barton
has a pardonable weakness for
superlatives. G a r r i c k s first
(1747) company consisting of
four women, Cibber, Pritchard,
Clive and -Woffington, and such
men as Barry and Mackiin, was
, "the strangest ever known in the
history of the stage." His Lear
"has never been equalled." Of
his withdrawal from th theater
in 1778 she writes: "Never has
the retirement of an actor made
so much commotion."
He was certainly one of the
greatest naturalistic actors, and
as a person sometimes exasper
ating but almost always lovable
. . . economical to the point of
stingy in domestic matters, very
changeable, a tireless practical
joker, a kind and amiable coun
try gentleman st Hampton
House, generous with the needy,
temperamental. He died at 62
and was buried in Westminster
Abbey; his wife lived to be 98.
V ...
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Riding platforms far the Robert Bras, store's new aaetor-drirea
stairs are being Installed this week ana win be ready far ase by
the end ef this loonth. Manufactured by the Motors talr Co.. of
Ceffeyville, Kans the conveyance Is being Installed by H. J. Baa
son, foreground; E. A. Llndblom, left center; H. J. Clew, right center
all of Seattle, Wash, and J. E. Ross, supervisor, CoffeyvOle, Kans
backsToand. (Statesman photo).
CRT
ECODDQB
ffi
ffin
D:
(Continued from page 1)
depends on the nature of the"
university. Thus a school main
tained by the Catholic church
would not tolerate instruction in
Protestant religion; a Baptist
fundamentalist seminary would
not allow a modernist - to hold
forth. A state - supported insti
tution will not retain a teacher
who advocates overthrow of the
state. A university unrelated to
a church and not maintained by
the state will have a wider orbit
for professorial thought to range,
but still it would impose stand
ards of good form and intellec
tual honesty.
There is a deeper reason for
challenging the privilege of com
munists to teach and that is the
very real threat that commun
ism presents to intellectual free
dom. As developed in Russia
communism has become a form
of state religion and deviation
ists are heretics. The intellec
tual world has been deeply
stirred by the Lysenko - Vavi-
lov controversy in Russia over
the science of genetics, vavilov,
whose ideas conform with those
of the greatest scientist in this
field, .was discredited, sent to
some place in Siberia where he
died. Lysenko, who advocated
the theory of the transmission
of acquired characteristics, long
discredited among reputable sci
entists the world over, rose in
influence in Russia and became
president of the Lenin Academy.
That science as well as music,
the arts, must conform to the po
litical party line is indicated in
a Moscow dispatch which re
ports that "the Academy of Sci
ences must above all follow con
sistently the Leninist - Stalin
ist principle of party adherence
in all spheres of science."
This simply means intellectual
slavery. As Joseph P. Lash writ
ing in the New Republic for
January 3rd says:
"When however the Central
Committee of the Soviet Com
munist . party aligns itself with
one faction in Soviet biology and
decrees the truth of the long dis
carded view that acquired char
acteristics can be inherited, the
scientific - basis of the modern
world is threatened: the specter
of the Dark Ages rises again to
plague mankind."
The academic freedom that ex
tends to the nurture of habits
of thinking which imprison the
mind is committing suicide. The
evidence of the slavery of the
mind imposed by communism is
too strong to be denied. No in
tellectual freedom is tolerated
under Soviet communism. The
preservation of freedom, of in
quiry calls for no quarter with
the isms which challenge it at
every turn.
Small Losses
In Grain Mart
CHICAGO, March 3 -(APV-With
the exception of the new crop
wheat deliveries, which showed
a firm tone right from the start,
grains sank for small losses on
the board of trade today. Deal
ings were light and most of the
day the market simply drifted
lower.
Independent steadiness in new
crop wheat was hard to explain,
although dealers said these
months and all selling below what
is likely to be the government
loan level on this crop. There may
have been some shifting from the
May Into deferred months, deal
ers said.
Wheat ended 1 cent to low
er, corn was IVi lower to V high
er, oats were Vt-M lower, rye was
4 lower, soybeans were l"-2
lower and lard was 5 to 12 cents
a hundred pounds lpwer.
May was also the weakest con
tract in corn, again reflecting an
increased movement of cash grain
and easiness in cash prices. Losses,
running to 2 cents were recorded
in the spot market.
Biggest Civic
Party in Years
Due for McKay
The city of . Salem will cele
brate Its biggest civic party in
years Monday night when the
citizens honor Gov. Douglas McKay.
Plans have been completed for
the combined dances in both the
armory and the Crystal Gardens
ballroom. The main reception will
be 'held from the hours of 8:30
until 10:30 p.m. in the Mirror
room of the Marion hotel.
The party will be "strictly In
formal" and Mayor Robert Elf
strom and heads of the various
citizen committees have joined in
issuing an invitation to all Salem
residents to attend.
Governor McKay, who first
came to Salem in 1927, has serv
ed as the mayor of Salem, state
senator from Marion county dur
ing four terms, and now as the
state's chief executive.
iat various times he has been
president of the Salem Chamber
of Commerce, commander of
American Legion's Capitol post
9, ahd director of the Salem com
munity chest.
Lonelv Hearts
Slayers to Face
New York Jury
ALBANY, N.Y., March
Gov. Thomas K. Dewey signed ex
tradition papers tonight for a
"lonely hearts" pair arrested in
Mirhg" in connection with the
slaying of two women and a baby
girL
Dewey's action was the first
step in a move to try and send
swarthy Raymond VL Fernandez,
Si, ahfl bis fat girl friend. Martha
Bock, 29, to the electric chair.
Ternandex and Mrs. Bock now
are in Michigan where the sever
est penalty for murder is life Im
prisonment. They are accused in this state of
killing Mrs. Janet ray, a middle
aged Albany woman. Michigan
warrants accuse them of the Hay
ings of Mrs. Dolphins Downing, a
comely 29-year-old Byron City,
Mich, widow and her daughter,
RalnelL. 21 -months-old.
The three killings, authority
maintain, grew out of a money
making scheme in which Fernan
dez wooed lonely women by mall
in many parts of the nation.
District Attorney James N. Geh
hlg of Nassau County, N.Y, who
asked Dewey for the extradition
i fj.cQSMasji mm
WCJ Sa St
papers, said be had been Informed
that Michigan would not oppose
the return of the pair to New York
to stand trial.
Gehrig claimed a "complete and
detailed confession" from Fernan
dez and Mrs. Beck in the brutal
death of Mrs. Fay.
The body of the. 50-year-old
woman was ' found buried earlier
this week in the cellar of a homo
in South Ozone Park, Queens, N.Y.
Her skull was crushed.
K. S. !Hort Agency
Constitution Liie Co.
Has Moved
from C03 Eexewater SL to 417
Oregon Bids. Phono
THEIR
HOPE
IS
THE
RED
CROSS
i WAS?
mm
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mm"
m
He
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When flood, fire of famine rav
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stands ready to stem the tide, .
soothe the scars and succor the
pangs of suffering. Now Ready
your Dollars to help the Red
Cross help humanity wherever v
and whenever it is needed.
This Message
Complimonta of
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Livesley Bldg.
390 State Street
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