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-The Senate's Tax Plan -
When the legislature assembled it was recog
nized that its toughest problem was one relating
to taxes. This was the situation:
1. A deficiency of around $9,000,000 in re
venues to cover general fund appropriations for
' the current biennium; an additional deficiency
Qf over $2,000,000 incurred during the bienni
n; and an anticipated deficiency of around
$38,000,000 to cover general fund appropriations
for the next biennium.
2. Against this was a surplus estimated at
around $50,000,000 at the end of the current
biennium in the personal income and corporate
excise tax receipts which by law and by court
, decision were reserved for reduction of state
v property taxes.
3. Additional demands for school support runj
ning into. many millions and demands for $12.
000,000 for buildings at the state institutions of
higher learning.
How was this problem to, be solved of getting
money or using money on hand to pay our bills?'
The budget director. Governor Hall and Gov
ernor McKay recommended making receipts of
the corporate excise tax available for general
fund use. The house of representatives pissed
a bill to this effect. A bill was introduced to
cover receipts of personal income taxes into the
general fund.
The danger in this was that if receipts from
these taxes were made free for general spend
ing; they might soon be exhausted and a heavy
tax iburden would fall on property owners. Or
If receipts continued adequate to take care of
appropriations for three years the state would
tje its tax base, which might be needed or a
property tax levy in the future.
There was this other factor which weighed
heavily in the minds of legislators and tax au-
thorities and that was that the personal income
tax Was originally dedicated exclusively; for
property tax reduction. The corporate excise tax
was devoted to the same purpose but carried no
such declaration of intent in its title and was
not submitted to the people as a property tax
reduction measure.
To resolve this dilemma of not having enough
money and having enough, the senate commit
tee of taxation of which Dean H. Walker is
chairman, has worked out a program which in
our opinion neatly does the job. It separates re
ceipts from the personal income and corporate
excise taxes.' The former go into a property tax
reduction account to take care of state approp
riations within and outside the 6 per cent limit
ation and to take care of the basic state school
support fund and the, county school fund. .The
reminder stays in the property tax reduction ac
count. ,
Receipts from the corporate excise etx make
up a separate account. First call on such receipts
Is to assist in eliminating a state property! tax
nd maintaining a reserve of $15,000,000 in the
property tax reduction account. The next use to
which these receipts may be put is to meet any
deficiency in general fund appropriations. Any
risidue would remain in the account to be pick
ad up the next biennium.
It must be emphasized that this is not a per
manent solution to the state's fiscal problems.
If receipts from these sources fall off or if large
additional burdens are imposed on the state then
other sources of revenue must be provided. Un
less the voters authorize some heavy appropria
tions there should be a reserve of at least $15,-
Krernlinites'
- Br Joseph and Stewart Alsea
WASHINGTON, April 2 There
are only two or three chinks
through which feeble beams of
light ever penetrate the dark,
mysterious recesses of the Krem
lin. One such chink is occasion
ally opened
when a West
ern European
c o m mu n is t
leader visits
Moscow to re
c e i v e Instruc
tions, and then
returns to re
port to his com
rades on the
lineup at bead
quarters. And
" ,egp
one or the lead- 1W.J, AUufs
lng Italian com- VU AtoolJ
munis ts, Reale, has just done
precisely this, with remarkably
interesting results.
Reale is known. In fact, to
have come back from a fairly
F ' J ' protracted visit
in a mood of
deep depres
sion. His report
to the- other "
Italian commu
nlst chieftains
was that the
world had been
wrong in as
suming Molotov
was sure to suc
ceed Stalin. He
5 V
1
v " V
to Stalin was actually in doubt,
doubt. -r " ,
If Reale Is a competent re
porter, a bitter struggle for
Stalin's power is thus almost in
evitable after the dictator
death. The Italian communista
iitress. was caused, of course,
by the recollection of the siml
Wo Ftvor Sxoaya U$0 No Far Shall Awe
Fran First gutesasaav flare S3, 1331
THE STATESMAN PUBLISHING COMPANY
CHARLES A. SPRAGUE, Editor and Publlihcr
, si' i
Oreeon,
as second elaas matter under Ml
business office tl S. Cemmerelal.
or nt Atocu.rso psss (
efaSSheleeaJ
IV
Mm
One rear-
Battle for Power Looms
lar struggle between Stalin and
Trotsky, after the death of Lenin.
This reflected Itself In the non
Russian communist parties all
over the world, and left them
crippled and bleeding internally.
At the same time, the story
of Reale'i report from Moscow
sheds valuable light on the puz
zling changes that have already
been taking place at the peak
of the Soviet hierarchy. These
have been so variously interpre
ted that London officially holds
Molotov has gained power, while
the British Ambassador on the
spot. Sir Maurice Peterson, is
known to believe strongly that
Molotov's removal from the Rus
sian Foreign Office indicates a
loss of ground.
In brief, since the death of
Zdhanov, it is thought there have
been three maul power groupings
in the Soviet government,- The
first is headed by Molotov and
his ally, Bulganin, chieftain of
the Russian military2 forces. The
second is headed by Malenkov,
in charge of the party appara
tus, and his ally Beria, overlord
of the secret police. The third
is headed by Mikoyan. manager
of the state's vital economic ma
chinery and his : ally Vosnesen
sky, chief state planner.
Molotov and ' Bulganin, ' Mi
koyan and Voenesensky, have all
: just been removed ' from their
former official, posts, and given
broad directing responsibilities in
the , same policy fields. Mere
functionaries . have replaced
them. ; respectively, as foreign
minister, war minister, minister
for foreign trade,, and head of the
state planning commission. The
changes have been announced as
promotions; At the third corner
of the power triangle, Malenkov
has been left undisturbed (hold
ee"
Salem,
Oregon. Telephone MMt.
000,000 for the start of the next biennium
which will mean we have reduced our surplus
by $35,000,000 in two years.
Under this plain certain specific things will be
accomplished: ' ;
I 1. Assuming the correctness of estimates, ap
propriations will be covered by revenues. (This
does not take Into account any large increases
in the state school support fund or a building
program for institutions.
2. No state property tax will b needed; and
the historic dedication of the income tax to re
duce the property tax preserved.
I 3. No new taxes will be required for the bien
nium. j 4. The state base for a property tax will be
preserved.
What is the difference between this senate
committee plan and the house, bill covering all
receipts from the corporate excise tax into the
general fund? The difference is hat property
tax reduction still has the priority of use for
proceeds of this tax and only such amounts as
may be heeded to extinguish deficits be trans
ferred into the general fund.
Some may say, this puts a protective screen
around property. It i more correct to say that
this plan in effect reserves taxes on property to
local units of government.
! The explanation of the plan may appear in
volved; .actually it is rather simple. It is prima
rily an adaptation of the established system of
taxation in Oregon to the needs of the time. The
house should follow the senate's lead. That body
adopted .the program unanimously Saturday.
Time for Action
The Salem long range planning commission
has approved with minor changes the plan for
highway and bridge improvements at Salem
which was recommended by Highway Engineer
Baldock. A survey of the board of directors of
the Salem Chamber of Commerce indicated their
support of the plan. Needed now is the assent
Of the city council which is the real local au
thority, and that should be forthcoming Mon
day night.
There are two reasons for action: First, the
improvements are urgently needed and ample
time has been had for study of the plan; Second,
the question should be settled so that both the
contention and the uncertainty may be ended.
It is clear that some persons will be injured
in the change-over, and others may be helped.
But the decision has to be made on what is best
for Salem now and in the future. Some changes
must be made or Salem will strangle; and the
plan recommended is prepared by competent
authority. It early approval by the council will
insure inclusion of the local program in the gen
eral program the highway commission is setting
up for the next two years.
At best work of such magnitude will take
years for completion. ItTVill have to progress
by stages. But with a coordinated plan the work
can be put on schedule, the Willamette bridge
and the Lancaster drive bypass being the items
of greatest urgency.
There was this attitude in the planning com
mission where there was division of opinion: No
matter what the decision is let us close ranks
and join hands to work for continued advance
ment for Salem. We commend that spirit to all
of Salem. , :
ing no ministry from which he
could be formally given a step
up). But Beria's fiftieth birthday
has just been pointedly cele
brated with the very special
glory of a parade.
It is ail as neat as a pin, with
the,- honors exactly evenly di
vided between the three group
ings. ;
Stalin's poor health is now a
wel-established fact. According
to information which Is accepted
in authoritative quarters, he suf
fered during 1948 from no less
than four strokes, of which at
least one was .serious. If this is
so, all the resources of modern
science cannot greatly prolong
his term. It is natural that he
(should devolve his duties upon
younger men, and withdraw, as
she has now done once more, to"
his retreat at Sochi on the Cri
mean Riviera.
What could be more natural,
moreover, than for an aging, ail
: lng tyrant to divide his power in
this manner, cutting it into equal
slices, exactly balancing each
potential hair against his rivals?
The inner drama of absolute
; dictatorship may seem insane
I melodrama to people accustomed
j to the dusty, workaday intrigues
i of Washington. London or Paris,
s But these dramas also have their
: logic, as anyone who reads his
l tory must realize.
The foregoing interpretation of
what has happened In Moscow
i accords with this logic; is strong
fly sustained by the Reale story;
i and Is accepted by some, at
i least, of those who should know
i best. If correct, its future impli
I cations are so portentous that
: they deserve examination on a
later occasion, and at greater
I length.
(Coprrlfht. IMS. New York Herald
Tribune lac.)
(Continued from pay 1)
the silent scream when people
could hear them talk. Meantime
big advertisers are wondering
how to stake their dollars how
much should they throw Into the
TV experiment.
Then there are the possibilities'
of graat changes in TV mechan
ics. At present only black-and-white
stuff Is transmitted; but
Columbia Broadcasting still has
its facilities for color transmis
sion and other companies doubt
less are working on the problem.
The latest and sharpest con
flict is the one precipitated; by
Zenith radio which in full page
ada threw a scare into owner
and prospective purchasers of
TV receivers (except Zenith).
The ads intimated that the fed
eral communications division
would open up new TV channels
of ultra-high frequency which
would make most existing sets
obsolete. Makers of Admiral TV
rejoined with a denial and a
$1,000,000 suit against Zenith.
The rcc originally set up 12
television channels, each six
megacycles wide in the 44 to 218
megacycle, band. (This is" Greek
to me, too). Last year. In re
sponse to pressures for more
channels, it took up the matter
of opening up the 475-890 mega
cycle band. It seems the chan
nels now allotted are not enough
to satisfy demand; but there Is
sharp conflict in the Industry
over any mixing of Ultra High
and. Very .High frequencies at
least in the same areas.
But what kind of programs
does TV provide? This subject
Is discussed at some length by
Gilbert Seddes in an article in
the March Atlantic Monthly. At
present sports get the biggest
play. Then there are movie
shorts, participation shows and
Vaudeville. TV has a great op
portunity, says Seddes, but the
danger is that "it will be used as
a weapon in the war between
the rival networks and in the
greater struggle between radio
and the movies for control of the
world of entertainment."
Admittedly there is the proba
bility that television, since ap
parently it is to be supported by
commercial advertising, will de
velop as radio and cater to the
mass audience with programs
geared to relatively low levels of
Intelligence. (What a wow TV
will be with endless soap opera
in sight as in hearing!) As Sed
des writes:
"We seem to be watching for
the hundredth time, the tradi
tional development of an Ameri
can enterprise: an Incredible in
genuity in the mechanism, great
skill in the production tech
niques and stale, unrewarding,
contrived and uninteresting ba
nality for the total result."
The new tool of communica
tion is here. It is developing
much faster than seemed poss
ible. A lot of pioneering is being
done in the mechanical field, on
commercial levels, and in study
of how to use the new Imple
ment. New techniques will be
required and new craftsmen in
TV production will emerge. They
will find that TV has limitations
a housewife can't do her morn
ing work and "see" that soap
opera, and her husband can't
read the paper and "see" a TV
movie.
TV is coming in fast youH
know it's here when you see the
"bird cages" going up on the
houses.
The Safety
Valve
Unreasonable Arguments
To the Editor:
There are perhaps reasonable
arguments that might be ad
vanced against a CVA and we
should listen to them.
But yesterday a Portland at
torney publicly repeated the un
supported and intemperate accu
sations of the Pacific Northwest
Development association. He re
sorts to such "scare" and
"smear" attacks on CVA as:
1. "The president would ap
point three men of no prescrib
ed qualifications."
2. "They would have lifetime
jobs beyond the reach of con
gress." 3. "Private power companies
must be efficient or they die."
4. "Government - oper a t e d
plants need not be efficient and
seldom are."
5. "There would be complete
destruction of private initiative
and enterprise."
6. "CVA would put halters and
hobbles on the entire country."
The 15-year record of TV A
which has been so highly prais
ed by the New York Times com
pletely refutes all of these ab
surd contentions. Private enter
prise and initiative are flour
ishing in TVA; income growth
there has outstripped the na
tional average two to one; all
seven governors and virtually
all the residents are enthusiastic
over TVA's achievements and
democratic methods.
If no better case can be made
against CVA than that this sort
of diatribe, it appears to estab
lish conclusively that a CVA is
good for everyone except a few
private power companies.
Yours very truly,
George Penketh
5711 N. E. 24th Ave.
Portland.
An average of 208 inches of
now fal's nr-naHv on Mount
Washington, N. H, highest peak in
New and, w:tn a height of
feet.
Epic Battle of Midway Finding
Even Greater Place in U.S.
Military Lore as Years Co By
( Editor' TmU WaadcU Wat waa war corrMpondcnt for the AaaocUue
Press. accraStta f tbe Heat at Pearl H&rfcor ta tka early period of Ui liM
war. Ha waat with the naot whea It aaovtd to latorcapt ta Japan thrust
at Midway. Ha waa aa eyewltaeae U soma events of that decisive tattle,
and got the now of maw coming la from various segments of the engage
meat. Ha la therefore wall easuiUd to review, bjr reouest, the neteworthr
article on Midway which appeared m n recant lesae of the Saturday
Evening PoC C.A-S.)
Br Wendell Webb
Managing editor. The Statesman
Military men long have known that the Battle of Midway broke
the back of Japanese naval offensive power in early June of 1942 but
it remained for a recent Satevepost story by J. Bryan to place the epic
engagement uv an overall perspective which will be as fascinating to
participants in the flaming episode as it will to those whose homes It
made secure. ;
Much of it has been told be- 1
fore, but mostly piecemeal, and
there isn't a man who can claim
he ever saw more than a com
paratively minute part of the
great show. For that reason, Bry-
f'an's round-up is, a valuable ad
junct to the nation's history.
i Credit Well Split
He covers well the historic
defense put up by the Midway
garrison itself, and does the fleet
as much justice as ever has been
done to it the army released its
stories right after the battle end
ed and when the censors allowed
the navy to chime in with its side
of the engagement several days
later, it was too late to recoup
much of the credit. But plenty
will accrue to everyone con
cerned as the years go by. And
Bryan has helped to even it up.
A factor deserving of more
emphasis than Bryan gave it is
the veritable ambush laid by the
American fleet to the north of
Midway. With all the heroism of
all services, the element of sur-
. prise still played a major part
in the victory against odds.
Few details ever have ap
peared about the component
parts of the American fleet at
Midway and Bryan touched on
them only slightly, with the ex
ception of the carriers. Besides
the Yorktown, Enterprise and
Hornet, there were the heavy
cruisers Pensacola, North Hamp
ton, Vincennes, Minneapolis, New
. Orleans, Portland and Astoria;
the light cruiser Atlanta and 12
destroyers.
Bryan, too, didn't sum up the
Japanese strength to actually
bring out the odds. Against the
23 American ships and Midway's
own defense were 94 Japanese
ships, including transports.
But ranged against that was
almost equal air strength (in
numbers but we were far inferi
or in quality of fighting planes);
the element of surprise (the fleet
had been off Noumea for south
of the equator only two weeks
previously) ; and the innate cour
age of American fighting men
who knew, if the mainland
didn't, that what transpired in
that flaming 100,000 square miles
of Pacific in the Midway area
had a direct bearing on the im
mediate fate of America's west
coast.
It is all too true that if the
U. S. fleet had had any battle
ships, it could have closed in for
surface action against the enemy
and the margin of . victory could
have been far greater. But with
all too few ships of any kind left,
the; fleet could not afford to toss
away cruisers futilly.
The word "only" was inad
visedly used many times during
World War. II in describing our
casualties. It is no word to use
in deprecating losses. The "only,"
either one or many, left grief
and heart-break behind. But it
might be used in recounting the
nation's loss at Midway as 150
planes and 307 men (to Jaoan's
233 planes and 3500 men). Nev
er had one of the world's deci
sive battles been won with so
small a loss. It exemplified the
lightning-fast warfare of mod
ern times. But thousands of oth
er men would not be alive today
had it not been for the sacrifice
of those 307 and the heroism of
other thousands who survived.
An Understatement
' The writer of the Satevepost
story might not have had access
to the confidential messages of
those dark days alter Pearl Har
bor, for if he had It Is probable
he would have nominated Ad
miral Spruance as the champion
of understatement. As the fleet
was closing the distance between
the onrushlng Japs three days
before Midway burst out, Spru
ance closed one message to his
fleet officers with this:
The successful conclusion of
the operations now commencing
willber of great value to our
country.
How great is only now becom
ing apparent.
One more little episode un
known to Bryan might give still
more insight into the tenor of
those trying times:
Three weeks after Midway a
transport crept past a mine
sweeper off the rarralone is
lands, under the Golden Gate
bridge and into San Francisco
bay. Aboard were several men
sent home for various reasons to
recuperate from their bath of fire
in the great June engagement
une was Ensign Gay, only sur
vivor of famed Torpedo Squad'
ron 8.
"If We Only Had Those"
Gay was fingering a radio
gram offering him a fabulous
sum for movie rights to his storv
A group was gathered about him.
He didn't even seem particularly
interested. A short time later, as
the
transport approached Fish-
ermen's wharf, a whooD went un.
There, arrayed neatly at berths
along the short, were five huge
battleships similar to what, the
Japs" had at Midway and which
the American fleet so sorely
jacjcea.
There was no profanity what
ever in the almost simultaneous
sign: "O God, if we'd only had
uiose out mere. '
Health Officials
To Attend Meet
The annual meeting of Oregon
county and city health officers in
Bend later this month will be at
tended by .several local health of
ficials, it was reported Saturday.
Dr. Willard J. Stone, Marion
county health officer, and Francis
Reierson, county health educator,
plan to attend the four-day meet
beginning April 20.
The session is being conducted
by Harold M. Frickson, head of
the )regon state board of health.
Public health and sanitation prob
lems will be discussed.
Susan Dove Ends
Nurse Work Here
Susan Dove has completed three
months of field, experience as a
public health nurse with the Mar
ion county department of health
and has left the department, it
was announced Saturday,
She will spend a month with
relatives in Appanaug, R. I., and
then plans to return to the Wil
lamette valley as a public health
nurse with the Tinn county health
department Mrs. Hilda FJiason
recently joined the staff of the lo
cal department.:
Literary Guidepost
By W. G. Rogers
NSTW DAT by V. S. ReJeV
Knopf; $3)
An old man, born In 1857, out
lasts revolts, riots, fire, plague
and the general turbulence of
nearly a century of Jamaican
....history to tell us this story. It
is the November evening, in
1944, before Jamaica wins par
tial self-rule. John Campbell's
"Son-Son", descendant of ' his
brave brother Davie, Is about to
assume leadership in the ' hew
government. Crowds of blacks,
near-blacks and blacks who are
near-whites, sing the Campbells'
praises outside the house and stir
poignant memories of the long
struggle for freedom. His tale,
fictitious but with a historical
background, makes this tender
novel.
His mind sweeps back to the
1860s, when he was eight. His
father, head of a big family. In
dustrious, devout, is caught: be
tween his allegiance to Governor
Eyre's established government
and his kinship with the starving
blacks, who are not slaves but
who have not the franchise and
whose plight is so desperate that
they . are heeding revolutionary
appeals.
Davie Is on the side of the
rebels, and the boy John is with
him. The father uses the strap
on the recalcitrant young man,
but when he learns that the Eng
lish plan also to whip him, he
finds that so obviously unjust
that his sympathy for the mal
contents grows. Then "Missis
Queen Victoria's" representatives
come down with all their might,
hanging and shooting, setting the
rod in ageJoaa Sterling the
. laetMig beauty of the Brat
rose that baa bloomed lor twe
thonaand years that's
Daaaaek Rose. See thai drama tie
.. solid silver pattern today.
We wffl be glad to extend oar
sedges plan for even a tartar
aot of" twe pUeo setting:.
.PJewVt TJ
TraeVatA of Onafcla Ue
M
Exclusive in Saltm i
STEVEIIS & son
! ! . - I "
Jewelers Silversmiths i
Iivealey lldg. Starter and llbeety
The current phest X-ray survey t
in Marion county will be complet
ed this week at Salem high school,
according to Mrs.1 Ruby Bunnell,
executive secretary of the Marion
County Tuberculosis and j Health
association. " i -' ! I ;!
"An attempt is being made, how-
ever," she said Saturday, f to re-.
turn the mobile unit to Salem this
week or next for the benefit of
those who missed X-rays when the
machine unavoidably broke down
last week." i . ;, j j . 1 - i-
In the meantime, she said, those
who feel they have emergency
cases may be X-rayed Monday or
Tuesday at the high school be
tween 4 and S pjn. Men are asked
to come Monday and women Tues
day. The rest of Monday and Tues
day will be devoted to X-raying
students boys on Monday and
gins on Tuesday.;
Wiemals Home
On
John (Mickey) Wlemels. In Sa-
lem on a 18-day! army! furlough.
is due to leave Friday for Ft, Bliss,
Tex- there to start on his war to
Japan for duty and to attend ra
dar school. He Is the son of Mr.
and Mrs. C. C Wiemals, Salem
route 7, box 32.? j i I j .jj
Wiemals. who enlisted January
13 for three years, has completed
anti-aircraft basic Uaining at Ft.
Bliss. Before entering the service
he attend d Mt, Xhgel Prep school
and will receive his diploma with
the class of 1949, j ! I i
- .
Although only two or three me
teorites a year are seen tb fall, the .
number striking the earth annual
ly probably is at least 100. , '
torch to whole settlements. Many
Campbells lose their lives in this
brutal repression. It Isn't the
last disturbance before the! dawn
of the "new day" in 1044. j
The story is. told In dialect, a
combination, we are informed, '
of early EngiisbT-and Welsh, Dia
lect discourages man readers,
and to tell the truth, normally It
discourages me. But this is a
language in effective short
phrases, colorful, picturesque
and poetic, and it fits Reid's pur
pose beautifully. No1 work-a-day
English could catch so sure
ly the i stout 'marchers, singing
their hymns, the Indomitable,
rash father, the abiding loyalties,
the bitter hatreds. X don't know
whether this is a true picture of
Jamaican life; but it's fa stirring
Elcture : of real people engaged ,
i the struggle which always ap
peals to Americans, the struggle!
for liberty. ij : , h -i
Share iri Party
- l f; . x
-Even the horses got something at
a fun-night party of Salem Saddle
club in the state fairgrounds horse
show stadium Friday night. I '
The party was given by Mr. and
Mrs. Edvin vWard, for about 34
other rider members. A surprise
birthday party for Joyce Randall,.
13, featured the affair. The riders
received cake and coffee while
their mounts were given carrots
and sugar., - : i " f
1
Fuiiouffh
If t
1! if
!Is'
' i'J
r..;il,i
f IJlAflJ
li iiDllli