8-(Sec. I) Statesman, Salem, Ore., Thur., Mar. 21, '57
Farm Employers Hit Plan for
'Pay-as-You-Go' Income. Tax
By ROBERT E. GANGWARE
City Editer, The Statesmaa.
The House tax committee started
.work Wednesday on a law to put
the state income tax on a pay-as-
you-go basis, and immediately met
resistance from employers of farm
labor.
Part of a worker's state tax is
now paid through the 2 per cent
withholding from his pay as re-
auired by a law enacted in 1959.
This covers farm laborers making
over $100.
Withholding tax " would be in
creased to it covers virtually the
entire state income tax a worker
will owe. under a bill (HB 8) soon-
ored by Rep. William A. Grcnfell
Jr., Portland, or a similar meas
ure drawn by the Tax Commission
(HB 234). ,
Either bill would result in a
withholding of state income tax
similar to the federal withholding
tax.
Rep. GrenfAl, a member of the
tax committee, said such a with
holdingwould avoid the big lump
sum tax payment now lacing most
workers in April every year.
SERIOt'S BURDEN
David J. Weid. Jeffcf son farmer
and attorney who has prepared tax
returns for many other farmers,
said the change would impose a
serious .burden on farmers because
of the bookkeeping involved.
Farmers also opposed the 1 per
cent withholding tax at the last
session, but the legislators includ-
Traffic Group
Opposed to
Legislation
11m Oregon Traffic Safety Com
mission Wednesday went on record
1b opposition to a bill before the
current legislature which would
. eliminate mandatory suspension of
driver s license when he or she
it convicted of driving while in
toxicated. -
Also opposed by the commission
is a bill which would open acci
dent reports to investigation by in
terested persons. The House has
passed this bill and sent it to the
Senate.
The commission based its oppo
sition to the latter bill on reports
from staff members that to impair
the confidential nature of accident
reports would eliminate the only
purpose for their existence to
provide data for enforcement, en
gineering and accident analysis
work.
"If these reports are open for
investigation drivers would have
a greater tendency to hedge on
their remarks describing the cause
of accidents, the commission
aid.
The commission approved a bill
to ban use of parking lights when
a vehicle is in motion. This bill
has already been approved by the
Senate and has been sent to the
House.
ed them in the law on grounds
they were required by federal law
to keep social security records on
part-time workers who made more
than $100 anyway.
Weed said he believed most
farmers could handle the with'
holding tax on a straight percen
tage basis, but would be handi
capped if they had to use tables
and -charts to compute the with
holding, since much of the harvest
labor is paid right in the fields.
SMALL PAYMENTS
Rep. Vernon Cook ID), Gresham
said berry picking involved so
many small payments, made on
the spot, that bookkeeping isn't
feasible.
When Weed noted that some
farmers lost their migrant labor
to other farms where the with
holding was "overlooked," Rep.
Guy Jones (D), Salem, suggested
an amendment to cover even those
laborers earning under $100 under
some simplified system.
Other objections eame from busi
ness. Howard Ross, attorney rep
resenting Oregon Railroads Asso
elation, said the withholding
change would require an expensive
conversion of machine records. He
proposed that the Oregon withhold
ing tax be based on a set percen
tage of the federal withholding, for
ease of computing.
CONTINUED STUDY
The tax committee will continue
study of the bills on withholding.
including a probable change to a
$150 minimum earning for farm
labor, to meet the new figure in
federal law.
In other business Wednesday, the
tax committee continued its push
to clear its desks of many minor
bills before plunging into the new
revenue program to cover what
ever budget is decided for the next
two years.
Several measures were tabled.
including one to give the State Tax
Commission supervision over she
riffs in tax matters (HB 201) and
mother i-HB 222) to require an
appointed tax "conservation com
mittee in every county.
They also tabled a measure to
exempt all property of fraternal
and similar organizations from
taxation and a bill to change the
I ' . jinn irmnii" jj inr
Vti - . 1 V ' H
Rep. William A. Grenfell Jr.
(D), Portland, sponsor of
1)111 to have all of work
er's state income tax with
held from his pay.
Rebel Fleet
Said Waiting
Cuban Attack
MEXICO CITY, March 20 lAV-
A source in the Mexican Interior
Ministry said today a fleet of 12
fishing boats, manned by armed
Cuban rebels, is waiting off the
Mexican coast for a possible in
vasion of Cuba. '
The government source said the
boats were bought in Florida with
funds reported provided by for
mer Cuban President Carlos Prie
Socarras
An attempt by rebels in Cuba to
seize or kill President Fulgencio
Batista last week was beaten
down by government troops with
more than 40 persons killed.
The rebel fleet was reported
lying off the coast of Quintana
Roo. -
Ultimas Noticias, a Mexico City
newspaper, said it had informs
Solons Request
Closer Study of
Education Fund
Higher education salaries again
occupied ways and means com
mitteemen Wednesday, with two
Republicans entering a proposal
that the Oregon Legislature keep
closer eye on how the higher
education budget is spent.
Rep. Allen Tom, Rufus. and Sen,
Anthony Yturri, Ontario, proposed
at a ways and means subcommit
tee meeting that salary funds be
earmarked so they cannot be di
verted to other purposes.
They also recommended that the
$3.6 million salary increase a-
mount recommended in the Elmo
Smith budget be set up with $2.4
million of it for across-the-board
raises and the remaining $1.2 mil
lion for salary adjustments needed
during the biennium. The recom
mended budget has it the other
way around.
IMMEDIATE RELIEF
This would make possible im
mediate relief of the low salary
complaint, said the legislators pro
posing the move.
At the subcommittee session.
Chancellor John Richards said use
of some salary adjustment funds
for other purposes in the past had
had the approval of legislative
committees.
Dr. Meredith Wilson. University
of Oregon president, urged higher
salaries so this state could com
pete with others for faculty talent.
CABINET MAKERS HEARD
Also discussed at the meeting
was a bill offered by the Oregon
Cabinet Makers Association which
would restrict the higher board of
education in construction of build
ings and parts of buildings with
its own labor and materials.
Only repairs and improvements
costing less than $1,000 are ex
empted unlcr the bill.
Upon suggestion of Rep. Robert
Steward, co-chairman of the joint
ways and means committee, the
cabinet makmg plant at the uni
versity of Oregon will be inspected f
by the subcommittee Thursday at-1
ternoon.
At the Legislature
..
Fall Overage by the Statesman Statehoaso
Staff aaa Associated Press
Railway Opposes Plans
To Limit Service Changes
Southern Pacific Railroad won't
object if the Public Utilities Com
missioner is liven power to pre
vent a railroad from eliminating
any passenger service, Frank Mc
Culloch, Portland, S. P. attorney,
fold the Senate commerce and
utilities committee Wednesday.
But he said the railroads object
strongly to two bills which would
give the PUC power to atop any
change in freight and passenger
service.
He-raid It would be all right
with the S. P. if Oregon adopted
a law similar to that of California.
That law permits the state rail
road commission , to stop reduc
tions in passenger service. i
McColloch's statement appeared
to take care of the principal ob
jections of Southern Oregon resi
dents, many of whom are angry
because the S. P. stopped passen
ger service between Eugene and
Ashland more than a year ago.
Former Public Utilities Commis
sioner Charles- H. Heltzel attempt
ed to prevent the abandonment of
that service, but the Marion
County circuit court ruled -he
didn't have such power,
Sen. Phil S. Lowry (R). Mod-
ford, author of the two bills, told
the committee that the Southern
Pacific in Southern Oregon has
the largest monopoly area in the
United States. The recurrent car
shortages and abandonment of
passenger service show its general
disregard for the public in that
area.
McColIoch and several shippers
testified that his bills-would keep
industry out of Oregon. They said
they would prevent emergency
service changes, particularly in
freight transportation, because any
service change would have to be
submitted to the PUC 30 days be
fore going into effect.
. Lowry charged that the South
ern Pacific deliberately discour
aged people from riding on pas
senger trains in Southern Oregon
so it could have an excuse to aban
don the run.
Frank J. Van Dyke. Medford
lawyer and former Speaker of the
House, said that an S. P. agent
in San Francisco told' him there
was no passenger service to Med
ford. This was before the daily
train was taken off the run.
Duke Shows He
Knows Geography
GODALMING, England. March
20 un A pupil tried to stump
Prince Philip on his tour of the
ancient Charterhouse School for
Boys. Was the - princt familiar
with the Scilly Isles?
Yes, replied Queen Eliza
beth's husband. The tiny islands
off Britain's southwest coast are
part of Cornwall. His son. Prince
charles, nominally owns them as
Duke of Cornwall. .
Senate Learns " .
Resolution Slow
To Leave Capitol
The Oregon Senate heard Wed
nesday that a resolution it adopted
two years ago lauding the Turkish
government for its military assis
tance in the Korean War hasn't
been delivered yet.
Sen. Warren Gill (R), Lebanon
said the resolution was adopted
m April, 1955. It directed the Sec
retary of State to transmit the
Senate's expression, but the docu
ment never left the Capitol, Oil!
said. i
Gill's disclosure followed adop
tion of another resolution express
ing sympathy to the Philippine
government in the plane crash
death of President Ramon Mag-
saysay on Cebu Island last Sun
day.
Gill suggested a liaison system
between the legislature and the
Secretary of State's office to see
that resolutions to foreign coun
tries are transmitted promptly.
Egg Inspection
Hearing Friday
.House Bill 459 on egg inspec
tion will come up for discussion
at a public hearing held by the
House food and dairying commit
tee in Room 326 at the Capitol
Friday at 8 a.m.
Discussion will center around
amendments presented by Barry
Brownell of the Oregon Farm
Bureau Federation. ' ,
Rep. Richard Groener, sponsor
of the bill, holds consumers should
have a means of - finding out if
eggs are freshly laid or are cold
storage eggs. His bill has had con
siderable opposition. - This it the
second hearing on the bill.
Proposal Urges School
Release for Guardsmen
A bill to excuse national guards
men from, high school when they
are ordered to emergency duty
was Introduced Wednesday by Sen.
Dwight Hopkins (D), Imbler,
Baker County.
He said that during the recent
flood in his area, some nigh
school students were called to do
emergency duty with the guard
but aome schools refused to ex
cuse them.
A bill to establish state poet
laureate was introduced in the
House by 33 representatives and
seven senators. - The governor
would appoint the poet, on recom
mendation of an advisory committee.
Legislation to give the state fire
marshal more authority over fire
prevention and protection in hos
pitals, nurseries - and nursing
homes was introduced by Rep.
Norman Howard (D), Portland.
The bill, requested by the fire
marshal, would let him regulate
the maximum number of persons
in each institution, fire escapes,
construction, wiring, and warning
and extinguishing devices'.
Rep. George Aimala (D), Hood
River, introduced a proposal to
appoint an interim committee to
study regulation and taxation of
all forma of public transportation.
A tagged male market crab,
from which ctmes commercial
crabmeat, recently traveled 35
miles on the ocean -floor in 10
weeks, the California Fish k Gam
Department reports.
tiIS-
. THB ARDEN CONTEST
'5,000.00 in prizes
get your entry blank at
YOUR ARDEN STORE
Will
Liquor Use Up
NEW YORK, March 19 W -;l
New York staters are drinking
tion from Cuban exiles here that i more liquor, the State Liquor Au-
thev were also ' operating an air-! thoritv savs. In its annual re-
lamount oi money minors may field near Belacan, hi Tobasco, ' port, the authority says this add-
earn aim sua ue a cepenurm. Mex., and had a training centered Imbibing produced nearlv
Several other bills were passed in Quintana Roo similar to one ; three million dollars in additional
onto the House floor with the com-1 seized by the government near , revenue lor the state through
mittee's endorsement T IChalco some months ago. . - . I taxes .and fecs.- --
nn
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Other States
Hiking Taxes
The State Tax Commission had
no encouragement to offer the
Legislature or the Oregon public
Wednesday.
It reported that information re
ceived here from 39 states indi
cates 32 of them are increasing
taxes this year. The others are
Just holding the line.
In a report of Oregon income
tax collections for the past eight
months, the commission said total
take from individuals and corpora
tions was 171.1 million compared
with 139.6, million for the compar
able period a year ago.
Full effect of the 45 per cent
surtax accounts for the big boost,
It was said. ,
Whales Frolic
At Depoe Bay
DEPOE BAY. March JO I
- Gray whales,- on the annual mi
gration northward from California
to Aleutian waters, have been
playing in the ocean off the harbor
here.
Residents yesterday saw from
two to a dozen whales almost
hourly.
Two kept bumping against the
bell bouy less than a mile off
the bay entrance, causing inter
mittent ringing and attracting a
large crowd on shore.
Progress Dooms
Old Roundhouse
WENATCHEE. March 20 (1
The .end of the line (Great North
ern) was in sight today for the
"Appleyard" roundhouse.
As operations began to flatten
the Great Northern fixture, Tom
Brennan, assistant superintendent
here, said:
"With no steam locomotives left
west of Williston, N. D., there
. just Isn't any further use for it."
He also said the Appleyard Ho
tel, a stopping place for employes
nearby, will be sold.
Wenatchee was a switching
point for trains heading over the
Cascades until the electric en
gines were supplanted by diesels
last year.
Chee?e Survives ,
V. THE HAGUE, March 20 Url !
Duteh Edam cheese carried to
the 1 antarctic by the ill-fated
Scott expedition was found re
cently by British polar explorer
. and sent here. Newsmen aampled
it and agreed the cheese kept its
flavor through 4S years on Ice.
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