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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (April 21, 1949)
rej&on statesman "No Favor Sioayi V$, No Tar Shatt Aw First SUUtna. Kml . USl THE STATESMAN PUBLISHING COMPANY CHARLES A. SFRAGUE, Editor and Publisher (Cntarxl at tHa nMtoMH a lUlam. (Vmm aa aaeend elaoa matter lander Ml OS" inner BCate B. ISTS. MbUafee4 every morning xep Monday. BuaUvrsa offlee SI S- Commirriil lorn. .Owy. Taiaphons WMli i or tb AfliocUTS rosss Vko AMMitW hm kt .mia tuMnlr to Mm mo for nmMmmi otaftt leeal news . M wen MtlAT Steve OaO. MXMBZK T HetnC COAST DTvTSIOH OF IUUAV OS AOVnmSXNO AdvortUtaa XipraaaotaU Ward -OrtmtJt Co Hew Tor. Chltaee, San rranetoeo. Vr-4C MXMBZ8 AUDIT BURXAV Of cnCVLATMM Br Mall Om A4vs . .. . y CStr Orefoa aasewneietairS-A. Ono wowta Stx aaobtM lit . . C.S0 " 6m roM , . , ii.ee on yo- Oat Home Mortgage Debt Perhaps the weakest link in our present cred it structure is not bank loans or consumer credit but mortgages on homes. The United States News reports that our home mortgage debt was $21,058,000,000 in 1930, then it was reduced dur ing the depression '30's to $17,848,000,000 in 1939. Now it amounts to $34,368,000,000. "High building costs pushed up the expense of building, but families deperate for housing paid down what they could and gave mortgages on the remainder. Should family incomes be reduc ed (or family expenses increased) then pay ments become hard to make; and the risk of loss of equity arises. There are certain factors however which make the situation much less alarming than the fig ure on total home mortgage debt might imply. Interest rates are much less than they were af ter the first world war. Also monthly payments steadily whittle down the debt; and after a time they may permit refinancing. Again, while building costs are showing some decline from the peak they still are high and promise to re main far above 1930 levels for a long time which means that values will stay up reason ably welL As far as our own area is concerned lending has been on a pretty conservative basis; and the population growth makes additional housing necessary so there is no prospect of a housing surplus which would depress prices. So we need not be too greatly alarmed over the total home mortgage indebtedness. Carry ing it will mean a considerable strain; but there seems no likelihood that this credit extension will cause serious repercussions on the economy. , congress. What he says presumably carries weight. Tor those like President Truman and Secretary Acheson and others who are carrying the? full load of trying to maintain peace and at the same time be prepared for possible war such a speech is shocking. With such loos tongues and narrow minds behind them how can the possibly convince foreign nations of our sincer ity f It is bad enough to have cannon in front of them, without having Congressman Cannon behind them. Yesterday The Statesman commented on how the art of the theatre may be debased to create) prejudice and prevent understanding. A speech like Congressman Cannon's provides the foun dation on which false theatre can be built. Such congressional ran tings might conceiviably pre cipitate war. Earthquake No Laughing Matter When reports came in that the earthquake damage to the northwest would run to $ 15,000, 000 the estimate seemed excessive. The details, city i by city, didn't add up to any such Impres sive" total. But as the items come in, the fact stands out that the damage was very substan tial.; At Olympla for Instance both the new and the old capitol buildings have been declared un safe and offices have been evacuated from them. Other reports tell of twisted water towers or water tanks that have sprung leaks. Numerous schoolhousea are said to be in need of repairs. What to most Oregonians was just an exciting scars proved to be a real disaster around Pugtt Sound where the earth slippage centered. And Cannon Behind Them A few days ago Congressman Cannon, a vet eran member from Missouri and member of the house appropriations committee, made a speech dealing with the national defense. In the course f his somewhat impassioned address he indulg ed in his own brand of strategic planning for the next war and said: 'Moscow and every other center in Russia we must hit within one week after the war starts . . . We will not necessarily have to send our land army over there . . . Let us equip soldiers from other countries; send their boys Into the holocausts Instead of sending our own boys. That is what long-range planes mean. When the Congressional Record came out, the text of his remarks was much different from that noted by competent reporters. It was con siderably toned down, but still the gist was there: bomb .Russia, use "other boys," save our wn. It is doubtful if in years another address has been made better calculated to offend potential enemy and presumed friendly nations. It is like the ill-conceived airforce officer's release on picking of 70 targets in Russia. And certainly it will excite irritation among the nations of wes rn Europe whom we have been trying to help. In this country we csn put this down as the tooee utterance of an irresponsible1 politican. But abroad Cannon is a congressman, whose seniority gives him a position of power in the a If Premier Georgi Dimitrov of Bulgaria "took la powder" it was because he is really sick and hot because he stepped off the red line. Recent ly it was announced he had gone to Moscow, shortly, after his vice premier Traicho Kostor, had been ousted from his office. Dimitrov, Moscow-trained communist, hero of the Reischtag fire trials, is still in high favor athe Kremlin, reports one correspondent; and hi. trip to' Mos cow is to consult doctors. The fact remains of course that Russia is not going to tolerate any deviatlonists in the satellite countries, not if she can help it. Instead of more livestock grazing on fed eral! forest reserves as some of the western congressmen urged last year the house appro priations committee) needles the forest service to reduce numbers and thus cut down erosion in over-gr axed areas. It also wants to charge stockmen special fees to be used in reseedlng the range, which doesn't sit well with Congress man Barrett of Wyoming. Anyhow the threat of relaxing limits on grazing and of turning lands over to states and private owners is de finitely ended. Governor Dewey is going to lesve Msy 0th on a vacation trip of several weeks to Europe. Maybe he wants to get a good rest from that strenuous Oregon primary campaign of a year ago. Ruoo Menace West Weak Point, Iran Joseph Alaupj still wants the Br Joseph Alsop WASHINGTON. April 20 It only a little more than three years ago, in the winter of 1946, that Secretary of State James T. Byrnes made his mo mentous decision. Mainly be cause the Soviets were threat ening to take by force the Iran ian province of Azerbaijan, By rnes abandoned conciliation and adopted his famous policy of "patience and firmness." From that decision flowed all the great events of the intervening period. Now, three years later, it Is reliably un derstood that the American Ambassador at Teheran, the able John Wil ey, has for some time been - report Ins re nfwH dancer of Soviet ag g r e s s i o n gainst Iran. The Kremlin same province of Azerbaijan. Having watched the succes sive death throes of two of the Baltic states, Wiley may permit his all too vivid memories of the past to color his estimate of the present. Here in Washington, at least, there is relatively little fear of extreme Soviet measures at the moment. Yet the back ground situation is none the less Instructive and significant. Vry briefly, an American mission has been helping to train the Iranian army for some time; and on February 1 this year, ' American arms purchased under an American credit also began to arrive in Teheran. This American assistance to the Iran ians has long been the subject of a thunderous Soviet champaign of propaganda and diplomatic threats. o Two main themes have been stressed by the Soviets. First, the American aid to the Iranian irmr has been ludicrously said wP transform Iran into an "American base." Second, many references have been made to clause 8 Of the Russo-Iranian treaty, of 1921. Thia provides that the Soviets msy invade Iran, if a third power attempts to use Iran as a base against Russia. .Thus, by implication, the Soviets have openly menaced the aggression that Wiley fears. The Soviet Ambassador at Te heran, iSadehikov Is pretty good at menaces, his chief diplomatic talent, being to simulate apo plexy, He has gone; so far as 'to -state that the presence of the Americans in Iran was a "dis honor," and to add that the Iran ians' refusal to give the Soviets oil rights in Northern Iran was "intolerable." I o o j In addition, the Tudeh party, , the communist front in Iran, has been lavishly financed in a re newed campaign of; agitation. Appeals have been i made to Iran's troublesome Kurdish tribesmen, both by a Soviet sponsored Pan-Kurdish under ground headed by Badr Kahn, with headquarters in Syria, and from Russia soil by the refugee Mullah Mustapha Barzani. An Azerbaijanian "govemment-in-exile" has been , ostentatiously organized across the Russian border. And there have been stories of recruitment? of an Az erbaijanian "liberation army." from the million or f. so Soviet citizens of Azerbaijani stock. Concurrently the Red army has also been actively engaged in creating incidents along the ill defined Russo-Iranian border. Bodies of as many as 500 men have been employed in forays Into Iranian territory. Demon strations of tank forces have occurred. An Iranian blockhouse has even been attacked, and Iranian prisoners have been tak en, i Thi s war of nerves and pro vocation reached a preliminary climax early In February, when a Soviet agent attempted to as sassinate the stout-heated young Shah of Iran. The aim, of course, was to plunge the country into chaos, and to give the Tudeh party the chance for a coup d' etat, before American arms could put the Iranian army on a footing of displeasing effici ency. The same motive appears to lie behind the subsequent ln tensiflcation of threats and pro vocations on the border and else where. As a result, careful considera tion has been given, both In Washington and Teheran, to de claring clause 6 of the 1921 treaty no longer operative. This would remove the Soviets' Hitler-style appeal to "legality." Contrary to recent reports from Teheran, the step has not actually been taken. But alarm In Teheran has recently been In tenslfled, by the abrupt, simultaneous depart ure to Russia of Ambassador Sadchlkov and all the Russian consuls and consular staffs. While Teheran may be alarm ed, it must be re-emphasized that Washington continues to discount any immediate danger. Yet officials here clearly admit the distinct possibility that by means of a fake "Azerbaijanian liberation army," or some similar device, the Russians will later attempt to Install their own pup pet government In Northern Iran. Meanwhile a war of nerves which includes attempted assas sination of a chief of state is not to be laughed off. All this must be contrasted, of course, with the possibility that the Russians may lift the Berlin blockade, long ago re ported in this space. What is happening in Berlin and in Eu rope is happening of course only because Russian aggression has been met there with firmness. What is happening in Iran is happening, equally of course, there Is less resistance at this only because the Soviets feel point We can expect threats and dangers of aggression in Europe to begin again, whenever the re-arming Soviets feel stronger than the West. There is no safe ty in weakness, even collective weakness. (Copyright, 1949. New York Herald Tnoune inc.) HOME WORK1 --..-.-Tjz-'-- v"W'j..M;iirf)(ylfjfy3f' m n wr r7 iaHM mii i" i - v fexf Jx i wAffm : 1 $!t OTP r 11 Ul Ui I a V u ft j ri ri I II ill (Continued from page 1) la recent years. I notice com pany testimony in the Portland hearing that its expansion has cost them already f 17,892,000 On whatever net Investment it has made it is entitled to a "fair return." As ltlnvestment Increases its net earnings should lncr What la pinching for all utility companies is financing the ex pansion they are forced to make to serve the public. If their credit Is good they can issue bonds; but 'they cannot Issue bonds up to 100 percent of the Investment. Usually the limit is about 00 per cent for bonds and the other 40 per cent in stock, either preferred or common. To sell the stock the company must be able to show earnings which will permit dividends which yield the Investor about I or 7 per cent. Both this year and last many utility companies have issued new securities: bonds, notes, pre ferred and common stocks American Telephone it Tele graph company has sold securi ties amounting to hundreds of million or dollars. The method is frequently employs (announce ment of a new Issue was made Wednesday f Is to put out 1e bentures that are convertible Into common stock. PGE says it plans to sell additional common stock during the next two years to provide funds for its pro jected extensions; and asks for a schedule of rates which will permit it to sell its stock on a basis favorable to the company. It is Commissioner Tlagg's duty to hear all the evidence and then announce his decision. He has a duty to see that the investors in the company derive a fair return in Interest or divi dends. He has a duty to pro tect consumers against excessive rate charges. It is in the in terest both of owners of the company and consumers that company finances be kept in a healthy state, so It can attract funds as required at reasonable rates. I think we can safely depend on Commissioner Flagg to do ride whether PGE Is entitled to a higher rate schedule, and if so what the Increase should be. Better English By D. C. Williams 1. What Is the wrong with this sentence? "I calculate on going to morrow. 2. What Is the correct pronoun elation of "inopportune"? S. Which one of these words Is misspelled? Arsenal, arguement, arrogance. 4. What does the word "indom itable" mean? 8. What Is a word beginning with ant that means "opposition in feel ing"? ANSWERS 1. Say, "I think I shall go," or, "I intend to go tomorrow.." 2. Pronounce the as in unit, and accent last syllable. 3. Argument. 4. Not to be subdued; unconquer able. 5. Antipathy. "He has an indomitable will." Max Ve Hubbs Joins Father At Silverton SILVERTON Announcement was made Wednesday that Max V. Hubbs, elder son of Mr. and Mrs. George W. Hubbs, has re signed his position as executive of Swett and Crawford Insurance company, Los Angeles, and will return to Silverton about June 1 to be associated with his father, George W. Hubbs, in insurance and real estate. The younger Hubbs was born and reared in Silverton, attended Silverton schools, Oregon State college, and studied law at Uni versity of Oregon and Willamette university, obtaining his degree In law at the latter. He entered the insurance busi ness immediately in Seattle and then San Francisco, where he re mained until World War II. Dur ing the war he served in the In telligence department of the air corps. Following the war he mov ed to Los Angeles to rejoin his firm. There will be no change In the name or policies of the George W. Hubbs company, which or ganized here shortly after the turn of the century. Hubbs has a wife and three children and gives as his reason for leaving his present position and company that he is tired of trying to rear a family In a big city and is eager to return to his boyhood home. While it has not been definitely settled. George Hubbs said that his son snd family may livs at the present Hubbs home at 114 Coolidge st. and that the parents may move to the newly acquired home at 417 N. Water st. John Zeeb will remain in charge of the Salem office. Rickey Mother' Club To Meet at Schoolhouse FOUR CORNERS, April 20 Rickey school mother's club will meet Friday afternoon at the schoolhouse. Social hygiene class will begin at 2:15, club meeting at S. Refreshments will be served be fore the meeting. Mrs. Eldon France will care for small children at the school house. Hostesses are Mrs. Melvin Scott, Mrs. Waldo Miller, Mrs. Jess Mcllnay, Mrs. Fred Gephardt. AIR SERVICE TO START PORTLAND, April 3 (Main land Airways will start service be tween Vancouver, Wash., and Richland the first week in May, Gerwyn A. Jones, vice-president, said here today. McKay Asked To Veto New Pension Law Letters, telegrams and telephone calls have been received at the executive department during the past few days urging Gov. Douglas McKay to veto the so-called old age pension law of the 1949 legislature. The law provides that $50 a month will be paid if there Is suf ficient money available to do so. The state has prior claim on es tates of those who receive old age assistance under the new act. The voters, at the last general elec tion, approved a bill providing for a minimum $50. Most of the letters and tele grams received at the executive) department asking veto of the new I act came from old-age assistant beneficiaries. Most of them said the current law was preferable to the new one. Governor McKay said he was studying the bill but probably would not act on It before late in the week. He has 20 days after adjournment of the legislature to sign or veto bills. William Aboda Ml Scloi Art Rhotfa., of Mill City and Richard Rhode of Bend; eight grandchildren and 11 great grandchildren, f MAN CRUSHED TO DEATH ,. . PRAIRIE CITY, Aprfi 20-AV Deldon Kimberling, 20 son of Mr. snd Mrs. Elmer Kimberling snd nephew ofState Rep. Ernest Kim berling, was crushed to death yes terday. He was caught between the track and framework of a bull dozer on a ranch near here. Valley Obituaries Charles Mhoda STAYTON Funeral services for Charles Rhods. $6, of Scio, who died at his home Monday will be Thursday, April 21, at 2 p.m. at Wed die Funeral home in Stayton. The Rev. Willard Buckner win officiate, and burial will be in Mason la cemetery at Scio. He was born Oct. 12. 1882. on a ship in the harbor at New York City. Si tv4 w n tt ss -a m uH fa. Cir-iVt f a mm w m w 'f eaa. its tt wviuv five daughters, Lucretla Hager of Warrenton, Effle Rhoda of As toria, Rosella Montgomery and Maxine R. Seniles of Salem; two sisters, Mrs. Art Bos kin, Win throp. Wash., and Mrs. Charles Case, Seattle; three brothers. GOOD PAIIITS PLUS j j' Good Workmanship PLUS -yr Economical Price ; j : . . An Unbeatable Combination! - . . and that's what you got ELFSTROII'S 340 Court ; Dial 2-2493 tor FREE ESTIMATE I There's a lot of satisfaction ta knowing that your paint con tracting la In qualified hands. i ,1 r, -Zh? JC1. ' ' 4 a .SBh. i t n r , - - n American Steel's complete stocks are close es yowr nearest telepfco. Use tM quick, convenient wary to fMI I yewr requirements. Check yeer needs Ifcen call f ; SMUTS ANOllft IAMS TUtINO FITTINGS OIT ft NUTS TOOLS CALL EAsf 9111 .4lt MIT lltlVM! WAQQElOrJOn CO. 1 . 3 The ZZ3 L ZLL a Poruiae Di vi$lon of Cmral Moton The Most HBesatatiful Thing on Wheels! iWt are, of course, very proud yhT happy that people every- "" where are calling tba new Pontiae "the most beautiful thing on wheels." Pontiae 1$ a brilliantly beauti ful automobile as handsome a car as ever rolled over America's streets and highways. Every line of Pontiac's new Fisher Bodies gives an instant impression of fleet graxefulnees. But Pontiac's real beauty cannot be fuOy appreciated until you drive the car your self. For the new Pontiae is beautifully tn gmeerwe, too to give you a kind of auto, mobile performance that simply must be experienced in order to be believed. Pontiae for 1949 offers a totally new kind of ride s ride ss smooth and comfortable as a car ran be. And either of Pontiac's famous engines, sis- or eight-cylinder, is a sweetheart for power. Remember, too, Pontiae is stUl the lowest-priced ear in the world offering the oaae of Hydra-Matkr Drive avail able oa all models at extra cost. Take a long look at the next new Pontiae you see then come in and give the car a really thorough examination. That s the way really to appreciate wby neoole are callinc Pontiae "the most beautiful thing on wheel. Ft HAVTirVl tsrVrTATtOei to relas! TWe'a no) oofn promt with luxury inside the aW Pontiae. Kvory detail is touched with estra beaaty, estra qwaKty for your coeafort pride aad convenience. MERRALL-OWENS Co. 660 N. Liberty Street Salem, Oregon
