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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (March 31, 1949)
Tax Group Plan For Balanced Budget Offered Two Bills Divert Sur plus and Current Reve nues to Separate Fund Capital jl, Jour 1 Truman Insists Atlantic Pact On Higher Taxes To Be Ratified 1 As Necessary Says President 61st Year, No. 77 Enter Ml u second elui matter t Salem Oregot Salem, Oregon, Thursday, March 31, 1949 Price Five Cents By JAMES D. OLSON Oregon will have a balanced budget and no new taxes will be required to carry on slate ac tivities during the next two years if the legislature approves a. tax plan adopted Thursday by the senate tax committee. After working for three suc cessive nights in executive ses sion, the seven committee mem bers, five of whom are lawyers, completed two bills diverting personal and corporate excise surplus and current collections into two separate funds. Heretofore the collections from both income tax laws have been intermingled but under the provisions of the senate bills personal income tax funds '' will be diverted in a "properly reduction account" and corpor ate excise tax funds into a "cor porate excise tax account." Mechanics Differ The formula used by the sen- ale committee follows in prin cipal what the huose favored but the mechanics in the sen ate plan differ from that used in the two major tax bills ap proved by the house. No change is made in the use of the personal income tax re ceipts it being clearly stated that such funds must be used for offsetting state levies together with setting up a reserve of $15,000,000 to insure funds for future offsets to any state tax levies on property. In Special Fund Corporate income tax funds would be placed in a special fund but instead of making all such funds available for meet ing state general fund appro priations, the state treasurer is directed to divert only that portion of the fund required by the state tax commission to avert any deficiency in the state levy. All remaining funds will be contained in the special funo to be used by future legisla tures for the same purposes. Perhaps the most important phase of the senate tax bills is the elimination of ambiguous language contained in the in come tax laws and making' it crystal clear that first call on both personal and corporate ex cise tax funds is for. Mate prop erty tax offsets on real proper ty. ffo Meet Deficiency In the bill dealing with the corporate excise tax provision is made that should there be in sufficient money in the "proper ty reduction account" to off set a state levy, funds shall be provided from the corporation tax to meet such deficiency. Thus the committee is of the opinion that both the legal and moral obligations assumed when the personal income tax was adopted by the people and the corporate excise tax was enact ed by the legislature have been met. As Neuner Opinion To be double sure that the use of surplus corporate tax funds is legal, the committee is calling upon Attorney General George Nuener for a formal opinion on the subject. Mem bers are hopeful that the opin ion will be available when the two tax bills reach the floor "probably either Saturday of this week or Monday. In formulating the program the members of the senate com mittee have gone over the bills paragraph by paragraph, mak ing various changes and inter jecting ideas held by various members. At the beginning there was much divergent opin ion on the bills in the commit tee but when the bills were fin ally approved the action was unanimous. Members of the senate assess ment and tax committee who unanimously voted the two bills out are Senators Dean Walker, chairman, Eugene E. Warsh, Wil liam M. McAllister, Orval N. Thompson, Howard C. Belton. Austin F. Flegel and Frank H. Hilton Publicker Cuts Costs of Its Liquor Philadelphia, March 31 OT Publicker Corp. announced to day a nationwide liquor reduc tion program with a drop of from three to 20 per cent in the retail cost of nine of its brands in Pennsylvania. The price cut, effective tomor row, is the first since before World War II. The price ot liquor produced by the Continental Distilling Corp., Kinsey Corp., and W. H. Haller Corp. all Publicker sub sidiaries also will drop in nine other states effective to morrow. In addition to Pennsylvania, prices will be reduced in Maine, North Carolina. Oregon, Utah, Vermont, Washington, Wyo ming, Kentucky and Arkansas. Senate Defeats Junior College In Portland By PAUL W. HARVEY, JR A bill prohibiting employment of communists by the state was passed by the house and sent to the governor. The senate killed 18 to 12 a proposal by Sen. Richard L. Neuberger, Portland democrat, to build a $2,000,000 junior col lege in Portland, and it decided to have a legislative interim committee study the problem of post-high school education. Neuberger objected that the joint ways and means commit tee's proposal to buy Lincoln high school in Portland for $875,000 would not solve the problem. The school would be used for college extension courses. , Other House Activities Opponents of the Neuberger bill said they were not prepared to build a junior college until they know what the eventual cost would be. The house killed 30 to 28 a bill which would increase charges for care of inmates of the Oregon state hospital from $25 to $60 a month. The board of control asked for the bill. The charges are levied against relatives of patients who are able to pay. The house sent to the senate a bill to compel the state to call for bids on all land which is valued at more than $1,000. It is the result of the sale by the state land board last summer of some Deschutes county timber land without bids. Union School Bill Passed The house also sent to the sen ate a bill providing that elections to dissolve union high school dis tricts can't be held more often than once every two years (Concluded on Pace I, Column 6) $32,584 for Red Cross Drive Third division in the American Red Cross fund campaign in Marion county to exceed its goal is the governmental division, headed by Clifton Mudd and L E (Bud) Hobbs. With a quota of $4400. this di vision came through with $4, 417.53, the chairmen turning in the final bit Thursday Through out the past week the group was near the goal. Previously, the education and utilities divisions had gone over their quotas. Overall total in the drive mounted to $32,584 68 in the Thursday noon audit, a gain of more than $400 since Wednesday noon, but an amount far short of the objective of $52,000. The bulk of the money due from the county areas is yet to be turned in, however, even though active solicitation offi cially ended Thursday Divisions will continue to turn in money, however, until the campaign re ports are all completed. The professional division came through with $271.50. Thursday and the industrial division turn ed in $87 more. Ka iser Buys Mill City Park To Build Housing Project Mill City, Ore., March 31 Consolidated Builders. Inc., con struction company for the Detroit dam, has purchased aDDroxi mately one-half the Mill City start immediate construction pied oy the nigner personnel engaged on the dam project. Clearing of a few trees and- removal of other matter has started and actual construction of the homes is expected to start within the next 10 days. It is planned to build brtween 20 and 25 residences at an average cost of $7500. Walks will be in cluded, and the entire area land scaped. The park property sold con sists of six acres hich com prised the west ena Purchase price was placed at $2400 or about half the actual valuation of the land due to the purpose to which it is being placed. In order to "squall up" the new property, Crnsolidated Builders also purchased three other small pieces crnsisting of P10 of an acre from Leonard Herman, one acre from Mrs. Es ther Ogden and ha.f an acre from Marion county The Mill City Lions club re tains the balance if the tract for park purposes, the area con sisting of S'a acres located as a strip between the new school building and what will become the new housing project. Consolidated Builders, Inc., is a Nevada corporation now quali fied in Oregon. It has Henry Rental Control To Effect 4000 Local Dwellings Owners and tenants of about 4000 dwelling units in the Sa lem rent area are interested in the new rent control law signed Wednesday by President Tru man, But their interest is centered now mainly in the bill pending in a committee of the Oregon legislature which would em power states to impose rent con trol when federal rent control ends. The new federal act ex tends control 15' months, or through June 30, 1950. Home Rule Leeway The new federal act gives the slates and localities considerable leeway. It permits states to de control by legislative action, or permits cities, towns or villages, after 10 days' notice and public hearings, to remove controls without legislative action if the governor of the state approves. The Marion county rent con trol area covers all of the coun ty and also West Salem in Polk county. E. G Clay, area rent di rector, said he expected to re ceive a complete analysis of the new act from Washington short ly. About 90 percent of the ap proximately 4000 living units in this area are in Salem, To Survey Incomes Washington, March 31 Housing Expediter Tighe Woods today ordered a survey of land lord incomes. The findings will determine what rent increases are to be granted under the new control law. Announcing the order in a statement, Woods declared the 15 month extension is a "consid erable strengthening" of the previous law and does not mean "a general rent increase for all tenants." The new law does require that rent ceilings allow landlords a "fair operating income." The survey is to obtain information for carrying out that part of the law. Woods' said a new regulation will be issued governing rent boosts under the fair income' clause after the survey is com pletcd. Meantime, rent offices will continue to handle landlord petitions for in creases on grounds of hardship. Measles Epidemic Severe This Year Portland, March 31 OT The measles epidemic in Oregon this year probably will rank as one of the most severe in the state's history, the stale board of health reported today. Dr. Samuel B. Osgood, direc tor of the epidemiology section, reviewed previous epidemics in 1936 and 1943 and said, "pres ent indications are that 1949 will take its place with these . . . as a severe epidemic year The cases totaled 5958 in the first 12 weeks this year, com pared with 9300 for the entire year of 1936 and 10,561 in a 47 week period of 1942-43. Osgood estimated this would be another 10.000-case vear. park from the Lions club and will of a housing project to be occu J. Kaiser, Oakland. Calif., as president. Headquarters for the construc tion firm were recently estab lished on the upper floor of the fire hall and the reci cation room of the Presbyterian church These rooms are no occupied by L. D. Lents, office manager, and his staff. Henry Kaisei 1. J i . j liirnriiiiiiin wmifw laww mini iiiiiifi ill - - arfn Bevin Arrives for Signing of Pact Britain s Foreign Secre tary Ernest Bevin (left) smiles and waves from the rail of the liner Queen Mary as he arrives in New York on his way to Washington for the signing of the Atlantic Security pact. Standing alongside him is Hector McNeil, Britain's minister of state. (AP Wirephoto) Churchill to Speak to World Wide Audience Boston, March 31 MP) Winston Churchill tells the world tonight what hope he sees for man in this war-marred centur . The 74-year-old statesman, who spurred battling Britain with his call to "blood, sweat, and tears." will speak on "The 20th Cen tury, Its Promise and Its Realization." His views are awaited with the urgency that surrrunded his iron curtain speech at Fulton Mo., March 5, 1946 Then he lamented the lower ing of an "iron curtain" across Europe, assailed Soviet Russian expansion, and called lor tne fraternal association ol the Bru sh commonwealth of nations and the United States. Tonight in his immediate audi ence of 13,900 at Bos.on Garden will be some of the ablest think ers of the western world; states men, educators, scientists and philosophers. They are gathered for a three- day mid-century survey, initiat ed by Massachusetts Institute of Technology on the "Social Im plications of Scientific Prog ress." The occasion is the in auguration Saturday of Tech's tenth . president, , Dr. . , James Rhyne Killian, Jr. Over the country and much of the world, the words of Churchill will be carried by radio (NBC, ABC, Mutual in U. S.) and television to some of the largest audiences ever to hear a speaker. He speaks at 6 o'clock, PST. Churchill has agreed that his address will be "of some im portance." He has said little more about it. Dow and Wife Killed in Plane London, Ont., March 31 OT Dr. Willard H. Dow president of the vast Dow Chemical Co. his wife and three other persons were killed today in the crash of their private plane near Lon don. Ont. The 52-year-old Midland Mich., executive and his party were heading for Boston, Mass when their plane plunged into the ground a mile from this Canadian city's airport. The time of the crash was 10 55 a.m. The victims were identified as Dow; Mrs. Martha Dow; Mrs Calvin Campbell, 45. of Mid land; pilot A. J. Bowie, Midland and co-pilot Fred Clements, Mid land Mrs. Campbells' husband, head of the Dow company's le gal department, was taken to St. Joseph's hospital where his condition was pronounced "not loo serious." Campbell, the only survivor, was conscious Airport officials said icing conditions might have caused the crash. The party look off from Tri City airport near Midland at 9 a.m., planning to fly to Boston tc attend a banquet tonight at the Massachusetts Institute of Technology. Faltering in bad weather, the plane fell into a farmer's field and burst into flames. Britain Plans Loan To Russia to Buy London, March 31 OT Brit ain disclosed today it is plan ning to loan Russia 9,000,000 ($36,000,000) so that Russia can buy non-military supplies from Britain in the next 12 months The disclosure came in bud get estimates presented to the house of commons. The advance to Russia, the es timates said, was for "non-military supplies under wartime ar rangements for which final con tracts are being concluded." Army Reopens Syrian Border Damascus, Syria, March 31 (U.R) Syria, under firm army control after a bloodless coup yesterday, reopened its frontiers and communications today and reportedly was preparing to go ahead with armistice talks with Israel. Army leaders who overthrow and arrested Premier Khaled El- Azam and his cabinet lifted the strict cur few in Damascus. Shops reopened and life in the capital was back to normal. Traffic was resumed across Syria's borders with Lebanon and Trans-Jordan. Telephonic communications cut when the coup was launched also were re sumed. Hundreds of students march ed through Damascus streets waving banners and cheering the "liberation" of their coun try. Disposed President Shukri Al-Kouwatly, along with Prem ier Al-Azam and government ministers, was held in a Damas cus hospital. Reliable reports from other Middle-Eastern capi tals said Syria's delegates to the United Nations, Faris El-Khoury and Emir Adel Arslan. have tried in vain to persuade Al Kouwatly to resign. Strike Looms NY Taxicab New York. March SI OT More than 3000 additional police were ordered today to man stra tegic posts at midnight as a re suit of a threatened taxicab strike at 4.30 (EST) tomorrow. Members of district 50, catch all unit of John L. Lewis' Unit ed Mine Workers, have been or dered to "wipe all cabs off the street." The union says "not a wheel will roll" in the city's $100,000,000-a-year taxi Indus try. Police Commissioner William P. O'Brien said 2500 uniformed police and 500 detectives would lake up posts in addition to po lice normally on duty at mid night. Principal issue in the strike- voted Tuesday by more than 5000 union drivers and taxi ga rage workers is a demand for immediate union recognition without going through a repre sentation election under state labor laws. The union Local 35 of the Taxi Workers' Organizing com mittce cannot go to the na tional labor relations board be cause officers of the parent Unit ed Mine Workers have not sign ed non-communist affidavits un der the Taft-Hartley law. THE WEATHER (Released by United States Weather Buirau) Forecast for Salem and Vicin ity: Mostly cloudy and slightly warmer tonight and Friday with patches of valley fo? In morn ing. Lowest temperature expect ed tonight, 37 degrees: highest Friday, 60 degrees Maximum yesterday 54. Minimum today 2D. Mean temperature yester day 44 which was ? below nor mal. Total 24-hour precipitation to 11:30 a.m. todns trace. Total precipitation for the month 3.06 inches which Is .77 of an Inch below normal. Willamette river height at Salem Thursday morn ing. 3.6 feet. Morse Hits at Red Professors Washington, March 31 OT Senator Morse (R.. Ore.), told a Masonic gathering at Trenton, N. J., that "communistic educa tional policies should not be permitted to prevail in the na tion's educational system." "I see no principle of aca demic freedom involved in re fusal on the part of university administrators or boards of edu cation to allow communists to teach on their faculties," Morse said in a speech. "To the con trary it seems obvious to me that, we would soon lose aca demic freedom in this country, as it has been lost in Russia, if a communistic educational policy should ever come to prevail in our school system." Morse said he does not be lieve it "necessary to have a communist on a faculty in or der to make certain that the students will be given an oppor tunity to analyze the communist philosophy." He added: "I am a firm believer in in tellectual freedom and a firm believer in the duty of our high schools and colleges and of our teachers to lead young minds into an analysis and a critical analysis of the various political philosophies which have chal lenged Ihe thought of man over the centuries. But I cannot ac cept the thesis that in order to present our students an objec tive critical analysis of Ihe com munist philosophy il is neces sary to employ some commun ist teachers on the faculties of our schools." Taylor Called Cops SOB Long Form Birmingham, Ala March 31 OT A witness tesiified today that U. S. Senator Glen H. Tay lor (D., Idaho), calleii Birming ham police officers "S. O. B.' when he was arrestee here for disorderly conduct. A city attorney asked if Tay lor used the initials "S.O.B." "No, he used the long form,' T V. Weaver, the witness, re plied Senator Taylor is appealing a police court conviction and a fine of $50 imposed last May 4 The charge of disorderly conduct was made when the Senator at tempted to enter a meeting of the Southern Negro Youth con gress through a door reserved for Negroes. The senator, a candidate for vice president on the Henry Wal lace ticket last November, based his appeal on the ground segre gation laws violate the U. S constitution. Merchants Going Light on Buying Like Customers Washington. March 31 OT Merchants, taking a cue from their customers, are going light on buying. "Very conservative inventory and buying policies" were cited by government officials today as the chief cause ol a drop in business loans since Christmas. This drop has outdone anything of the sort in previous post-war .ears. These loans are used in large part to finance purchases of stocks of goods. Officials said merchants not only have cut back buying for inventory lest they get caught In a phase of declining prices but also have been paying off old loans as fast as possible." The business loans drop, as measured in federal reserve board reports from member banks in the natior's leading cities, has run unbrusen for the last 10 weeks. It carried the volume of business loans down $670,000,000 from the Decem ber 22 peak. This drop of more than four per cent in three months is due to lack of demand lalher than tc newly-tightened bank lending policies, officials said. They added that reports naching here show no sign of unusual call Deficit More Dan gerous Than Increase In Levies Washington, March 31 OT President Truman declared to day that he still wants his anti inflation program and higher taxes. He spoke of the recent drop in prices as only a tempo rary let up in Inflation pressure. At the same time, he said his equest for stand-by price con trols has been a factci in check ing price rises. This administration program has not been shelved, Mr. Tru man asserted, certainly not on the basis of any consultation with him. As for taxes, the president said a federal deficit would be much more dangerous to the country's economic health than a tax increase. Disagrees With George Mr. Truman told a news con ference that he dos not agree with Senator George (D., Ga.) chairman of the senate finance committee, that a tax increase at this time might bring about a depression. By these remarks Mr. Tru man was prodding congress in directly once again to follow his advice and increase taxes by $4,- 000.000,000. George's view is that taking that much money out of the bands of the people would mean less spending lor consum er goods and so contribute to a slackening of business. What Mr. Truman argues is that it would be wo.se for the government to spend more than il takes in through taxes, creat ing a deficit in its accounts. Concluded on Pare 5, Column 6) 10 Percent Cut In Living Costs Philadelphia, March 31 OT) A decline of about 10 per cent in the cost of living can be expect ed in the coming year "barring wars and weather, says the U.S. commissioner of labor sta tistics. . But there is little reason to anticipate a greater decrease Dr. Ewan Clague told a meeting of the International Association of Public Employment Services last night. Food prices should continue downward unless buoyed up by the international situation or cli matic conditions, he said. Cautioning that the public should not expect too much in the way of adjustment, Dr Clague said consumer prices neither rise as rapidly nor fall as far as wholesale prices. Dr. Clague said rents today are about 20 per cent above their 1924 peak. If controls were to be removed now, he warned, rents would rise substantially and remain high for a number of years. To offset this, he said, the average weekly earnings of wage-earners the most effective purchasing power they have had since V-J day, he declared. Unemployment during Febru ary reached a post-war high of 3,750,000 and is likely to in creases much as 600 000 this year, Dr. Clague said This in crease will be caused by school and college graduations and the additional discharge of service men, he explained. Paul Dunn Reelected Portland, March 31 OT Paul M. Dunn, dean of the school of forestry, Oregon State college, has been re-elected state chair man of the Keep Oregon Green association. ing-in of loans by the banking system. Buying caution by merchants was rated a "healthy sign. The official position is that the coun try would he better off if busi nessmen guard against building up big inventories. Such heavy stocks of goods might later have to be dumped in forced selling something that has accentuated trouble in past "boom and bust" cycles. The insurance provined against a happening of that k-nd by the conservative buying policies was described as one way of preventing any "bust " Nevertheless, these policie.-, clearly were a link in the chain leading to factory la.offs when Ihe buying hold-back, starting with the retail consumer, reach ed to the manufacturer and brought a slowdown :r his oper ations. Bevin Opens Series of Major Conferences With Acheson Washington, March 31 OT President Truman declared to day that he is confident the At lantic pact will be ratified by the senate. He said the defense alliance il absolutely necessary. The president took this posi tion at a news conference when he was told that Senator Taft (R., O ), has questioned the ad visability of going into the pact He said the thought the major ity o the senators would go along with him. Mr. Truman restated his stand as Secretary of State Acheson and British Foreign Secretary Bevin scheduled the first ot a series of major con ferences to help line up the solid front of western powers. While the main reason for Be vin's visit to this country Is the signing of the north Atlantic security treaty Monday, the meetings were expected to cover the whole problem of reinforc ing the unity of the west against Russia. Western German Issue Bevin was due at the state department at 2:30 p.m. (EST), diplomatic authorities agreed that by far the most Important matters facing Bevin and Ache son as well as French Foreign Minister Robert Schuman con cern western Germany. Schuman probably will see Acheson tomorrow and the three foreign ministers will make a determined effort to end policy differences prevent ing creation of a single German government over the American, British and French occupation zones. Bevin takes the stand there will be no trouble settling thli issue. Other Problems Faced Other questions which may come up in the discussions, par ticularly between Bevin and Acheson, include: (1) The security of the mid dle eastern countries such as Turkey, Greece and Iran; (2) the possibility of forming a Mediterranean defense treaty; and (3) how to block the spread of communism In southeast Asia. On his arrival yesterday from New York, Bevin said the At lantic pact, which he and 11 other foreign ministers are to sign, will mean "peace for a long time." Objects to Cut In Aid to Europe Washington, March 31 OT-. President Truman insisted today that congress provide the fuli $5,580,000,000 sought by the ad ministration for the European recovery program. The president declared at, his news conference that this amount is necessary to run the European recovery program. He said it had been worked out very carefully. The European recovery pro gram, he said bluntly should not be cut at all. The president made his obser vation when he was questioned about efforts of Senators Taft (R., Oho) and Russell (D., Ga.) to cut the amount sought by the administration. Administration forces in con gress claimed they had enough votes to "break the back',' of a republican-led drive for an ECA cut. The first real test was duo to come perhaps today on an amendment by Taft and Russell to rut the 15-month aid program to $5,037,000,000. "We'll beat it," Democratic Leader Lucas (III.) told the re porters. "And when we beat the Taft amendment, then they know the jig is up. That will break the back of the move to cut the total." PGE Electricians Given Wage Raise Portland, March 31 (Pi AFL electricians employed by the Portland General Electric com pany have been granted a 5.15 per cent wage increase. George E. Sullivan, company vice president, said the scale for journeymen line workers now is $2.12 an hour, up 15 cents, retroactive to March 1. A five cent an hour premium was granted linemen, wiremen and cable splicers. Workers with five years serv ice will be given a third week of paid vacation. Sullivan said other union workers would au tomatically receive the wase and vacation plan.
