TUESDAY, JUNE 1, 1937
THE CAPITAL JOURNAL', SALEM, OREGON
ASKS BAN ON
TAX DODGING
BY VERY RICH
(Continued from page It
uniformly, fairly and without dis
crimination, taxes based on statutes
adopted by congress," he said.
Mr. Roosevelt declared the full
power of the government would be
thrown behind a treasury Investiga
tion of Income tax evasion and
avoidance. He asked authorization
to expand the inquiry, giving the
treasury full power to summon wit
ness and compel testimony.
The president transmitted a pre
liminary report on the Investiga
tion, and expressed confidence con
gress would share with him a feel
ing of indignation at findings of
evasion.
The report, he said, "reveals ef
forts at avoidance and evasion of
tax liability, so widespread and so
amazing in their boldness and their
Ingenuity, that further action with
out delay seems imperative."
Immediately after reading of the
message. Chairman Harrison, D.,
Miss., of the senate finance com
mittee Introduced a joint resolu
tion to authorize an investigation
of tax evasions by a joint congress
ional committee with directions to
report back by January 5, 1938, at
the latest.
Tax evaders to whom the presi
dent referred in his message, but
did not name, would be permitted to
come before the Joint committee
and make "any defense" they want
ed, Harrison said. He declined to
name tho.se cited by the president.
There are a variety of tax dodg
ing methods, Mr. Roosevelt added,
explaining:
"Some are instances of avoidance
which appear to have the color of
--f legality; others are on the border
line of legality: others are plainly
contrary even to the letter of the
law.
"All are alike In that they are
definitely contrary to the spirit of
the law.
"All are alike in that they represent
a determined effort on the part of
those who use them to dodge the
payment of taxes which congress
based on ability to pay.
"All are alike in that failure to
pay results In shifting the tax load
to the shoulders of others less able
to pay, aid in mulcting the treas
ury of the government's just due."
Mr. Roosevelt included a letter
from Secretary Morgenthau declar
ing eight devices are being used by
wealthy indivduals to escape in
come taxation. These ranged, he
said, from the transfer of assets to
personal holding companies in for
eign countries to making artificial
tax deductions for interest payments
and losses.
Besides shutting these loopholes,
- Morgenthau asserted, congress
should raise legislative barriers
against three tax practices which
speclflclally are authorized in the
law but which he said permit indi
viduals and corporations to escape
their fair share of the tax burden.
He said these practices were
deductions by oil and mining com
panies for the depletion of wdls or
mines, the splitting of income be
tween husbands and wives in some
states to take advantage of lower
tax brackets, and the payment of
only a 10 per cent tax by non-resl
dent aliens on income from this
country.
Outlining instances of "moral
fraud" uncovered in the treasury in
vestigation so far, Morgenthau re
cited case after case In which he
said rich individuals had cheated
the government out of taxes.
SEVEN HORSES DIE
IN FIRE ON FARM
'
Seven horses lost their lives In a
fire that destroyed a large bam on
the Hop Lee estate 6'4 miles north
of Salem last night. The fire started
shortly after 8 o'clock and its glow
was plainly seen from Salem. Spon
taneous combustion Is believed to
have been the cause.
The only means of fighting the fire
was by bucket brigade which suc
ceeded in saving other farm build
ings.
, The fire attracted several hundred
persons, many going out from Salem,
curious as to what the bright g.ow
might be.
The ranch is operated by the Pook
Chong company. Managers are Jiug
Sun, Jlng Yet and Jing Guy. They
were not able Immediately to estl
mate the amount of the loss.
Two horses got away from the fire
at one time but in their excitement
ran back into the bam and perished
Economic conditions in Czecho
slovakia are better than a year ago.
Shute Wins PGA Championship
A
.1
VALLEY PROJECT
WIDELY NOTED
The Willamette valley project, re
cently made public by the Oregon
state planning board. Is the most in
teresting report of this kind that has
come out of the northwest, It Is de
clared by Earle S. Draper, director
of land planning and housing for
the Tennessee Valley Authority, In a
letter Just received by the board. Mr.
Draper has requested a number of
copies which he plans to circulate
among the staff of the TV A.
"This Is the sort of thing towards
which we are working in the Tennes
see valley," Mr. Draper said In hL
letter. "As we have a much larger
area and a greater variety of condi
tions and problems, we have had to
proceed slowly but hope to develop
such a report within the next year.
The Willamette valley project re
port, largely the work of the plan
ning board during the past year, de
scribes the resources of the Willam
ette valley and contains detailed
plans for development of the region.
It has attracted wide attention and
is expected to be an Important fac
tor in the development and growth
of the valley.
The report was compiled under
the direction of H. A. Bauer, who
was assisted by a large staff of board
experts and WPA workers and others.
The last session of the legislature
directed the state planning board to
devote a part of its funds and re
sources to aiding In the development
of this valley in cooperation with
Governor Martin's Willamette valley
project committee.
FORESTRY BUREAU
MORE EFFICIENT
Readjustment of district boun
daries, employment of new workers
and appointment of chief inspector
are expected to result in Increased
efficiency in Inspection work in the
state forestry department, State
Forester Ferguson reported.
J. J. Russell was recently appoint
ed chief inspector of the depart
ment and will contact all field in
spectors periodically throughout the
summer, accompanying them on
their inspection tours. Standardize
lng of the work throughout the
state is the aim of the department.
Two separate Inspection districts
have been established in the Clackamas-Marion
unit, owing to the
large number of operators located
In the area. Mrs. E. Slack has been
assigned to the northern end of the
district with headquarters at Esta-
cada. Elmer Taylor, Inspector for
the Linn county fire patrol asso
ciation during 1936, has been as
signed to the southern end of the
unit with headquarters at the Mill
City CCC camp.
Other additions to the forestry
personnel Include: E. C. Ayers, Linn
county; Harold Young, western
Lane; R. W. Cox, eastern Lane;
O. W. Hoffman, Coos county; L.
Burl Smith, western Lane fire pat
rol association; C. F. Youmans,
Black Butte forest protective asso
ciation, and Virgil Powell, Linn
county fire patrol association. Dis
trict wardens in all other units will
remain unchanged, Ferguson said.
Indian Boys Make Totem Pole
f.86 cj4$; jASl?a,p "1
, ... Court? OrfonUo
Towering beside a small white frame building that will hold
objects of Indian handicraft and located at the Chemawa four
th a group of Indian boys with the totem pole prior to It In U Ma
lar tared by the studenti and decorated In bright colore. Here
li a iroupof Indian boys with the totem pole prior to Its Installa
tion for the annual celebration at the Salem Indian school.
Denny Shute, winner of this
year1! professional golf associa
tion's championship In Pitts
burgh, Is shown here (second
from left), receiving the trophy
from George Jacobus, president
of the PGA. Harold McSpaden,
runnerup, who forced Shute to
37 holes. Is at the extreme left.
(Associated Press Photo.)
EXTRADITION FOR
MEYERS SOUGHT
Extradition papers for William
Meyers, 38 year old Salem resident,
arrested for Pennsylvania authori
ties on a 16 year old murder indict
ment, were sent west from Wyom
ing, Pennsylvania, last night, city
police officials announced.
Meyers is charged with the slay
ing of Mark Brown in a double
shooting in which Archie Carling
was also slain, the information
from the east stated. He was arrest
ed here after he had appealed for
relief aid for his wife and three
children. The crimes were commit
ted in 1921, the police said.
Meyers said he was working in
Oakland, Calif., at the time the
crime was committed, and denied
knowledge of it. Mrs. Meyers said
her father was a Spokane attorney
and she worked on Seattle and Spo
kane papers. They were married in
Washington In 1920, she said.
MRS. G, J, MOORES
DIES IN PORTLAND
Word was received in Salem this
morning of the death of Mrs. Ger-
trude Jones Moores, wife of Merr'U
B. Moores of Portland and daughter
of Mr. and Mrs. M. L. Jones of Sa
lem. Mrs. Moores passed away at St.
Vincent's hospital in Portland yester
day after a short Illness.
Mrs. Moores was bom at Brooks
and was a graduate of St. Helens
hall. She was well-known In Salem
and In Portland, where she had re
sided since her marriage.
Survivors Include her widower and
parents and the following brothers
and sisters: Mrs. Anderson M. Can
non of Portland, Mrs. John Withy
combe of Arlington, Mrs. Claire Gray
of Hollywood, Ellis Jones of Eugene
and Ronald E. Jones of Brooks.
Funeral services, which are to be
private, are to be held at 11 am
Wednesday at the Portland crema
torium.
CITIES OF OREGON
WILL GET REFUND
University of Oregon. Eugene.
June 1 Cities of Oregon will re
ceive a refund on all state taxes
Imposed on gasoline sold for mu
nicipal purposes amounting to ap
proximately $40,000 per year under
the terms of an act which becomes
effective on June 7, It was pointed
out nere oy Herman Kehrll, execu
tive secretary of the League of Ore
gon Cities and director of the bur
eau of municipal research. The law
was sponsored by the League of
uregon cities.
Changes in regulations for ob
taining the refund are also cited
by Mr. Kehrll. While It is still ne
cessary tor refund claimants to ob
tain a permit, the charge of 50
cents has been eliminated. Time
for filing claims for refunds is
changed from the old limitation of
six months from date of Invoice, to
one year and the claimant Is no
longer required to swear to an af
fidavit, but merely affix his signa
ture to the report and submit to the
secretary of state's office.
Sllverton Mr. and Mrs. Lee Mor
rison have as their house guests for
several weeks. Mrs. Morrison's
mother, Mrs. Ted KIncannon. of
Blalsdell, N. D., and her sister and
brother-in-law of Mrs. Morrison.
Mr. and Mrs. Clifford Tucker of
Berthold, N. D. The visitors came
Friday by automobile.
H..1 mflot Mat . . . . M f ,
will DEVELOP and Ml
rii net ddimtc , - I
Wi N. Ptmta (NCLOSt 111
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FEWEST. UnrM Hvm Filrr
PHOTO 8AMS LABORATORIES
w.o. as 44.S)
PACIFISTS HIT
IN DEWEY TALK
Memorial day has as its primary
purpose the reminder to the world
the deeds of those who were left on
the fields of battle, A. H. Dewey,
past commander of Hal Hlbbard
post of the Spanish war Veterans,
declared in the Memorial day ad
dress at the armory following the
parade Monday afternoon.
Warning was sounded against
dreams of peace as expressed by
pacifists, whom he characterized as
a "large group of misguided people
purged by part of the churches and
part of the universities. Dewey
briefly outlined the services of gov
ernment in schools, highways,
health and food protection as a part
of the functions which need sup
port even at the price of war.
William Bliven, president of the
Federated Patriotic society of Sa
lem, presided at the program, which
included a few remarks by Myor
V. E. Kuhn; reading of the original
orders of General John A. Logan by
Mrs. Bertha Ray; vocal selections
by Miss Ruth Bedford and the In
troduction of representatives of the
patriotic organizations..
Only one nf the three Civil war
GOOD YEAR FOR
RECLAMATION
PROJECTS SEEN
Washington, June 1 VP) The
reclamation service said today 3,-
000.000 acres of reclamation areas
in the west are virtually sure of a
"good year generally in 1837."
John O. Page, commissioner of
reclamation, told Secretary Ickes
"prospects are bright for the recla
mation projects." He reported in
creases in measured storage water
in federal reservoirs.
His report said the measurements
at the beginning of May "disclosed
that whatever droughts or waUr
shortages other lands may have, a
good year generally can be r.pected
in 1937 or reclamation cases."
The report came while Senator
Burton K. Wheeler of Montana,
urging quick aid for drought areas
In his state, declared "conditions are
the worst in Montana's history."
The commissioner said the recla
mation reservoirs on May 1 held
19.628.017 acre feet of water, or 7,
285.554 more than on the same date
a year ago.
"With the Increase In storage ex
pected during May and June," Page
said, "all projects with the excep
tion of two will be provided with
ample water for the coming Irriga
tion season. The two which will
suffer some shortage are the Belle
Pourche in South Dakota and the
North Platte in Wyoming and Ne
braska, and the latter is in a much
better position this year than a
year ago."
The commissioner made public a
list of projects in western states
with the following storage water
statistics in acre feet.
Oregon Baker, 17.400, no change:
Umatilla, 97,180, increase of 18,460
Vale. 90,318. decrease of 32,117.
Oregon - California Klamath,
616.700, Increase of 50.230.
Oregon-Idaho Owyhee, 715,000,
Increase of 2,040.
ter left early Saturday morning for
southern Oregon where the Schus
ters are planning a visit of three
days at the family borne of Mr.
Schuster, and Marvin Senter will
meet his mother, Mrs. Lillian Sen
ter, who will spend a few days at
the home of her sister, Nettle Hai
verson, In Medford. Mrs. Senter
accompanied her brother and sister-in-law,
Mr. and Mrs. Lawrence
Roshelm. from San Francisco.
VISITS ARE ENJOYED
Sllverton Mr. and Mrs. William
Schuster and their two sons, John
Waller and Carl, and Marvin Sen-
veterans now living in the city at
tended the parade and services E
H. Cowles, father of Mrs. Chester
cox.
Due to the double holiday the
crowd was smaller than in previous
years. The parade, under the di
rection of Col. Carle Abrams as
grand marshal, moved promptly at
i o'clock, pausing for brief cere
monies at the American War Moth
ers' memorial at the courthouse and
then by the reviewing stand on
Liberty street near State.
DR. TOWNSEND
ASSERTS COURT
BILL DEFEATED
Chicago, June 1. (U.R) Dr. Fran
cis E. Townsend, here after an 8,000
mile speaking tour in which he op
posed the proposed supreme court
legislation of President Roosevelt,
today said that the president's plan
'definitely has failed."
He described the proposed legis
lation as an "attempt to destroy our
national form of government."
The people of the United 8tates,'
he said, "have not been cajoled into
turning their government Into a dic
tatorship. We still love our liberty.
"After an 8,000-mile speaking
tour in which I spoke to more than
200.000 persons in a majority of the
states west of the Mississippi river,
I find the people almost unanimous
ly opposed to un-American measure.
The 10,000,000 members of the
Townsend plan are pledged to de
feat In the next election every con
gressman and senator who votes
to pack the court, and they are now
the balance of power in more than
275 congressional districts.
"Our people know that dictator
ships do not pay pensions to elder
ly people.
"We intend to continue our cam
paign through the east until every
one understands just what the poli
ticians are attempting to do to our
democratic form of government.
"Our next meeting probably will
be In Philadelphia."
BARRICK TO BE
CANDIDATE FOR
SCHOOL BOARD
Dr. L. E. Barrlck announced to
day that he is a candidate for the
position of school director, which
will be vacated by Chairman F. E.
Neer at the expiration of his term
this month. The election will take
place Monday, June 21, with a sin
gle polling place being utilized
in the administration building on
north High street.
Several groups of civic and pub
lic spirited citizens have been seek
ing permission of Dr. Barrlck to
permit them to circulate petitions
in his behalf, but It was not until
today he made up his mind to en
ter the race.
"I am not a candidate of any
clique or faction," Dr. Barrlck said
In his announcement today, "but
will administer the affairs of the
district tothe best of my ability In
the interests of all persona con
cerned, should I be elected."
Dr. Barrlck has lived in and near
Salem virtually aU of his life. He
was born in Mehama and graduated
from Salem high school In 1912.
He was graduated from the North
Pacific dental college, Portland, In
1912 and after practicing in Inde
pendence for five years, came to
Salem. He retired from dental
practice a number of years ago
when he became associated with he
Clough-Barrick mortuary. He has
two children in the local schools.
Petitions seeking to place or.
Barrlck'f name on the ballot will
be distributed Immediately. Jura
14 is the final date for filing pe
titions with the school clerk and
June 16 la the last day on which
the candidate can make hi acceptance.
Schilling
rr
pure vanilla
of the kitchen
GRADUATION
SPECIALS
at the Jewel Box
WATCHES
DIAMONDS
RINGS
All Kinds of
JEWELRY
Bill Folders
Toilet Sets
Dresser Sets
Tie Holders
Cigarette Cases
Cigarette Lighters
All Kinds of Bracelets
Necklaces
CONVENIENT TERMS
Pay Aa LlttU Aa
en frr
Week
The Jewel Box
CREDIT JEWELERS
The store that Sella Quality
Merchandise for leas .
443 Slate St.
Between High and Liberty Sta.
f549(D)D)ID
IN PRIZES
Watch fur Announcement
in your
FIVE STAR WEEKLY
MAGAZINE SECTION OF THIS NEWSPAPER
NEXT SATURDAY
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it gives you. . .
OV1
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Cofrrrifbr. m, LMUTT A Umi TorMtXO O.