rej&on
statesman
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First SUUtna. Kml . USl
THE STATESMAN PUBLISHING COMPANY
CHARLES A. SFRAGUE, Editor and Publisher
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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
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(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.
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