Capital A Journal An independent Newspaper Established 1888 GIORGI PUTNAM, Id it 01 end Publisher ROBERT LETTS JONES. Assistcit Publisher Published every afternoon except Sunday at 444 Che mekero St Solem. Phones Business Newsroom, Wont Ads, 2 2406; Society Editor. 2-2409 Pull Leased Wire Service of the Associated Press end The Uirted Press. The Associated Press is exclusively entitled to the use for publication of all news dispatches credited to it or otherwise credited in this paper and also newt published therein. SUBSCRIPTION RA1ES: By Carrier: Weekly, lit; Monthly. 1.0: One Tear. I12.S. By Mill In Oregon: Monthly. lit; t Mot., S4.10; One Tear, IS.es. C.S. Outside Oregon: Monthly. II. SO: ( Mot. I6.lt: Tear. Sit. BY BECK Actions You Regret 4 Salem. Oregon. Tuesday, April 26, 1919 Wall Street and PUD's A month atro, during the congressional hearings on Bon neville's request for additional funds for transmission lines Representative Jensen of Iowa, read into the Congres sional Record the charge that federal bureaucrats were teaming with Wall Street promoters to force the purchase ni privately owned power companies by PUD's at exorbi tant figures backing the charges with documentary evi dence. While the Capital Journal printed a brief summary of the charges, The Dalles Chronicle has reprinted them in full from the Congressional Record from which they are reproduced. ' One Guy C. "Flash" Myers recently had pending in federal tax court $300,000 tax evasion case. The bureau of internal revenue ruled that Myers tried to evade pay ment of $300,000 on his 1940-41 income tax. Myers defense was that he had spent years promoting public power ownership deals in Washington and Ne braska, claiming his IJMO-41 income should be spread over the period 1934-41. He first began his questionable pur suits in 1934. Representative Jensen said: - "His (Myers) racket is to capitalize the tax savings (of public utility districts) by issuing tax-exempt bonds against these sav ings, and hand the proceeds less a fat commission over to the Wall street owners of the common stocks of the electric compa nies which are being socialized. "Here is the way Guy Myers' tax-capitalizing device works: Suppose 1 have a business that is worth only $100,000 on the basis of its net earnings after taxes, and suppose that business is now carrying $2,400 a year in federal income taxes as part of its operating expenses "Now, suppose some smart fellow comes along and says to you, 'Look, you've got a nice little business here, and 1 know how you can get a fancy price for it. I've got a client who does n't have to pay federal taxes, and he's very anxious to buy you out. If you sell it to a taxpayer like yourself, you know very well that all you can get for it is $100,000 because that's as big an investment as it will carry. " 'But if you will sell it to my tax-free client, he can take the 12,400 a year you now pay Uncle Sam and use that money to pay interest on a much bigger investment. That $2,400 will pay six percent on $40,000, which means that he can make the busi ness carry an investment of $140,000 and still show the same net return. " 'So here's what we can do. I'll get my client to pay you $130,000 for the business, and pay me $10,000 for fixing up the deal, and we'll both make a nice piece of change.' r "Yes, that is exactly the way Guy Myers works up his deals to sell electric power companies into socialism. Only he is not working for small change. He is dealing in mil lions and hundreds of millions, and his commissions run into seven figures," said Jensen. He continued: ' "Take the Puget Sound Power & Light company deal, for ex ample. That company now pays the government about $2,500, 000 in federal taxes every year. And once you understand the game, it is easy to see how Myers can offer 30 to 40 million dol lars of extra profit to the owners of the company. ' "It Is a slick trick, a very slick trick. And I think Mr. Myers himself must wonder sometimes why the public has not caught onto it long before now. "One reason the public has not caught on, of course, is the smoke screen of confusion which has been spread by the shrewd and skillful agents of power socialism." In other words, Myers was getting big prices for Wall street promoters for utility common stock, and big prices were being paid by PUD's owned by taxpayers because PUD's pay no federal income taxes, so their net earnings ae higher than those of tax paying private companies. Where to Put the Cars? Eugene is proud to call itself one of the first cities in the country to discuss off-street parking. But the city to the south isn't so proud of the progress made in get ting what it needs: At least 1400 parking spaces adja cent to the business center. In admitting the lack of getting something done in off street parking, the Kugene Register-Guard makes some comment that might soothe some frayed nerves in Salem. This observation is noted: ' "Our one-way grid system has brought a great im provement in moving traffic to and from the center of Eugene." So the one-way system has not killed off the university city. Kugene has survived nicely the adoption of the one way grid system, or at least, its usually critical newspaper ays it has. Kdilor Bill Tugman would be the first, too, to aay it hadn't, if the grid system had ruined the citv. Y gOSH.. I GUESS I OVEPOlD IT "ZV7i9 iLN, WHEN t MADE SANDWICHES THE V"V 1 LAST TlN,E 1 viAS BABY-SITTING I '-W"- I p FOR THEM I SEE THEY'VE iff 1 Z I f: cot old miss spade on 'i. yri - I ,. THE JOB NOW. MOM Jj-J - i SAVS SHE HAS A. Y WASHINGTON MERRY-GO-ROUND Post-War China Story Is Great Human Tragedy ly DREW PEARSON Washington If and when the state department opens its se cret files on China, they will reveal one of the great human tragedies of post-war reconstruction. The files will also tell a story that will make this nation think twice about pouring more U. S. dollars down the yawning maw of China. BY GUILD Wizard of Odds SIPS FOR SUPPER Not So Bad By DON UPJOHN Not much to worry about a depression being just ahead. This is confirmed by the fact that when the county budget committee started to tackle the biggest budget in its history today not a sin gle, not even The diplo m a t i c files show that, with most of China's 400.000.000 peo ples in desper ate need, the Chinese nation alist hierarchy insisted on con trolling II o - nliea. and even discouraged U. S. purchases by other Chinese. Powerful in this hierarchy were T. V. Soong and M. H. Kung. both brothers-in-law of Generalissimo Chiang Kai-Shek. Both are also among the wealth iest men in China or the world Meanwhile, Soong's board of supply offered to purchase the ships for private companies at the black-market rate and for an additional 5 percent "handling fee." In other words, the Chi nese government was offering to deal on the same black market it had declared illegal. The situation became steadily worse until Monnet Davis. U. S. Consul- General in Shanghai, advised the Secretary of State in a secret cable: "Executive Yuan of Chinese government has placed ban on importation of 'American army surplus goods.' . . . Ban imposed tn nrpi'nt nnrphiu m .n.nl... ..u . ..licwu.. ..... good, oy prlvale firm, in com. they have dipped into their own p.tj,ion witn tne government pockets to help their fellow citi- ..." zens. vV V ' w"'i gi B0SS0WW6 mm t . VA TMf 60vtHMEKT,00ARt Jtfcr s IFlFS vivo 12 to 1 wo w wTFHoust, V not a business. The only CRIME that INCREASED m 1948 was BICYCLE STEALING taxf wed I solitary payer showed up to make at; kick or ask forfj r e d u c t ion in any 01 me Dua-i get provisions.! This also re gardless of the fact that when tax statements went out on the last tax roll The state department's files, so far -unpublished, show that at exactly the same time the Chi- NOTE After one conference between T. V. Soong and FLC field commissioner B. A. John son, the American official wrote in his confidential report: "Dr defeat. For instance, last Sat- ?ese government was pleading Soong tnen toId me tha, he had urday. he got wind some way that the old organizer of the for more ships to import relief bwn , gambler all hi, ,ife bu, supplies the Chinese govern- in ,hi, dea, urplu, property) ment board of supply of he w h,ndling verv h and which T. V. Soong was chair- imDor.-n, ,. H. ,.. ed. That sorta burned Garnet n' w" 'Jctu!,"y Jt?IPPing clined " aus. the """ cnances to be derived by China cnam snips. from Iurplus Reason: The ships had been ciouslv FT & BA was going over to have three of his clackers yank up and we can just hear him saying to himself, I'll show that old buzzard." So he went over Holiday for the Death Chamber There will be no execution in the gas chamber in the state penitentiary during any period that William E. Walsh, presi dent of the senate, is serving as acting governor. Acting Governor Walsh said Tuesday that he was opposed to capital punishment and should any executions by the state be scheduled during any time that he is occupying the gov ernor's chair he will issue a reprieve and leave disposition of the case to Gov. McKay. "And I won't release any prisoners, either, while pinch hitting for Doug," he added, apparently referring to the time when Roy Rltner of Pendleton, serving as acting gov ernor, released St prisoners. Dm Cvjaha property ludi- bought and correctlv Dnno kl A M'C DUI I nCriDUCD . ..- ...... tt c A ho .U...U u .. r uun j rintwwnun tne same aay ana naa lour f""" .. -i "4u enormous. lanked. Doggone it, if that's the Private firms, thus cutting out ... wav he feols about it. one of ny Profit for Soong's board of AMBASSADOR FROM there was plenty of kick about these days we'll give him some- supply. BROOKLYN high taxes. It s been a sort of thing to be proud about. This caused the U. S. for- Brooklyn is noted for a lot unwritten law that when times eign liquidation commission, op- of things in addition to the have been bad in the country Charley Crittenden who has erating under the state depart- Dodgers. But probably most taxpayers have bobbed up like got his pants back from the ment, to make the following of- Brooklyn residents don't realize flies at budget committee meet- county court the ones that his ficial protest: that this citv has sent an offi. ings to make kicks, but when the Hubbard constituents ate out be- vy- have had comDlaints cial ambassador to Washineton. woman his goose hangs rather high they cause of the bad condition of from leveral prospective pur- He happens to be Dr. Oscar mother was. forget the budget meetings and Hubbard streets which come un- chasers of maritime property Cans, and although he is Cuban But in many go about their business. In the der Charley's Jurisdiction, is in nat they were unable to ob- Ambassador to the United ways he is like New All-America Male By HAL BOYLE New York 'J" There is new all-America male on the scene. Have you noticed him? He isn't exactly the kind of man his father was. And certainly he isn't the fT past five years, show the statis- thankful mood. The girls at tain permission from the board States, he was actually born in them both, and of supply to purchase vessels Brooklyn some ways from our Manila office. "In conference with us on 19 CanlamhAV f 1Q1R It U,B agreed that private' shipping Spanish-American war as aide concerns in China would be per mitted to purchase vessels in Ambassador Cans' father was he is more tal- also a Brooklyn-born American ented than ei who went to Cuba during the ther. i or meres to Major Tasker Bliss, later U. been bi8' big S. chief of staff. change in the Young Lieut Gans liked Cuba mn of the I i . I. :1 5-L?Jt at his job, he was bound to turn to cooking. Today he'll debate with man, woman or child on how much garlic to put in the i salad or why he makes the best i shish kebab. He not only brags he bakes better rolls than his dear old mother did. He's insulted if you don't think his kartoffelk- loesse are better than any the kaiser ever ate. Don't weary him by giving him a shotgun well" that he remafned on house. Father', a man of parts T themselves. FT fc BA Pride Garnet Six, the well known morning,' or 'Hello Charlie." they abstractor, Just doesn't like to greet me thusly: 'Hello, Sugar.' " have somebody get ahead of him. And he's a nice guy too, H Just goes to show that may and should get along OK. But be clothes do make the man, w take a kinda dim view of has often heretofore been ex his latest manifestation of this pressed. MacKENZIE'S COLUMN Three-Way Relations By DeWITT MacKENZIE f'T) Forrlm Atfalrs An.lrnt) The conference of British commonwealth prime ministers In London, to try to figure out how India can become a republic and still remain within the commonwealth, is fascinating in its potentialitl e a with 24 different kinds of spices. And mama no longer can raise the baby without papa's helping hand. He knows all about In his vouth. Ambassador who ruled his wooden castle like : ' " . . Dl" afer the Spanish-American war, today. He can do 'most anything married a Cuban girl, and then ebout the home and does. Half a century ago father, a tobacco- born, chewing, independent rooster tics, there have been 643 peo- the courthouse, as we've previ pie appeared before county bud- ously recounted, mended the get committee meetings asking seat of the trousers with a hunk for some sort of an activity or from a sugar sack, bearing the other that would bring about label of the product. Now a rise in taxes if granted. Dur- Charley writes back his thank ing that time but one has aD- fulness for what he calls "the pearea asKing ior laxes 10 do u i M' Several interested cut. So apparently the folk, .ea ." Charley say. hi, whole partieJ whom we haye notified ..... uc... ... i.gnt im - - ---""v.""""-"' of th is arransement. have n- Jow, He says, "When the fair . , ., -;.tin. th. ladies of Hubbard used to greet . . of ,nnl v " . came back to Brooklyn. There Half a century me with a very pleasant 'Good Ti. .:: the present ambassador was quite often, was cates but require that all vessels U- 1. I 4k. K .-.J 1 Gan. had the reDutat on of be- an army top sergeant. ... inS bout as belligerent as Leo " he did around the place was Tl 1 T - i - , , n ,, -1 , luklnj th. oi ne crooKiyn ! .... .nhn.j reoltv This letter of protest was Dodgers. At the age of 20 he daily newspaper he read in his flo" now in the A r 1 n v;n. TI .,. : j i. , . .. ... : u - : . nome. c, vjchiti a. j-. rt.a.ift. nun- 11 JttlU, explains ine Sill- S!IC 111 WllllCI. ever he did nothing about it. bassador, "because after I got Hi. spare time he spent at a At a round-table conference be- the reputation of being quick saloon arguing about the govern- tween imnese ana American 01- 10 cnanenge, people let me ment. He didn't talk much at better hair-do. t,.rtm.n 7i l. .t7., "n r .... . home' because wnat w" "ere But .ometimes mama feel, par ment raised the matter Dueling m Cuba i. not very for him and the old lady to sne-, over-educated her man. . . . " ,h "yS An?ba?sfudor Gan. a'k about? He was interested she n0 longer is sole boss in the The minutes of that meeting r the reason that the seconds in sports, business and politics, kitchen and the nursery. Thi. are still secret. However, they Place you a long distance apart Mama was interested in raising all-America male can get un- state: and only let you fire between the kids and running the manor derfoot. "The question of the Chinese the count, of 'two and three." Papa was a stern figure to the immmmum il restriction on ship purchases which they reel off so rapidly kids the man who whoooed was next brought up by Mr. that you scarcely have time to them across a bare rear with a Stetson (J. B. Stetson of Stet- fire." razor strap when mama com- hats, then FLC field com- Tne ambassador has served Dlained thev had done wrong. He explained that a envoy in almost every coun- And papa didn't fret about the After all, Ahm.t infant's burp, how to tie a run ning oowune Knoi in a aiaper. . ie in American The new type husband can do everything from barter ing the lawn to selecting a picas so print or advising mama on a We are nessing a wit-fur ther historic de velopment I n the metamor phosis of the ties between Britain and her far-flung politi cal structure "upon which the sun never from DaHIII M.rKt.tl. Americans broke away the mother country.' ' Indications are that England's son relationship ultimately will be missioner) divided into three categories: part of our project was to heln ,ry in Latin America and also children verv much (1) The imperial relations the economy of China and that as secretary of labor, which he there were a lot of them around with the colonies; Individual buyers who wanted considers about the most impor- In those days parents weren't (2) The commonwealth asso- to bring in ships should be al- 'ant post in any cabinet. supposed to worry much about ciation with the autonomous lowed to do so. "It is time,' he says, "that the kids anyway. The kids were dominions which still acknow- "General K I a n g (Soong's we think less about machines expected to grow up and start ledge allegiance to the crown; agent) explained ... If there and about people. That's why worrying about taking care of and i tn be anv shin hrnlceraop huci. the labor deDartment is in im. th.ir nowni. Exclusive in SALEM at STEVENS & SON (.)) The special association ness done, the Chinese envprn with the Asiatic dominions ment wants to do it. . . . 'I am which do not acknowledge al- your exclusive agent for China.' he said." legiance to the king. sets." An entirely new situation has been created by the refusal of mighty India like the indepen dent republic of Ireland to continue recognition of the IN DEFENSE OF BLONDES King as ner sovereign. Such recognition has been a requisite of membership in the commonwealth. Unless some substitute can be devised, India will walk out of the common wealth when she becomes a republic. portant.' ... SWISS KILROY CLl'B One man who pays great tri- All this is changed. ... The modern husband is S real ail-American male. There has bute to the American G. I. is been n0 husband like him in Flonan Niederer, known as the nisiory, Is Gals With Yellow Hair Plan Fight Against 'Dumb' Label And the American woman is the envy of the women of every other country in the man who guided 300,000 G, through Switzerland "They were universally well behaved," say. Niederer. "We world for having him. had misbehavior reDorted onlv Daddy takes an interest in a very few cases." Niederer i. now in the U. S. A. organizing the "Swiss Kilrov In The Regixter-GiiHrd pointa to what Allenlown, has done in off-atreet parking-. "In that city of 10(1,000 pop ulation . . . there was a (lesiwrnte situation due to conten tion. One large concern moved out of town to a point where It could acquire a large acreage with convenient parking. Other concern, were threatening to follow." So the business people of Allentown formed a corpora tion called 'Tark and Shop," Six parking; lota were nought. At present P00 cars can he handled. Soon 'Tark nd Shop" hopes to be able to accomodate 1200 cars. t This is the way their system works: t i "A customer pays 2Sc for a four-hour parking ticket. If he makes a minimum purchase at a member store, his parking ticket is stamped and his 2.1 cent parking fee Is returned when he elalms his car. J "The stores figure that the average customer has spent $4 60 ee that the 25-cent refund has cost the merchants less than 9 percent of the purchase. More than 18,000 tickets were validat ed In the first year." I The result of the Allentown experiment was that down own business considered the move had saved its position M the tax mainstay of the city. Salem's Mayor Klfst rom is planning a city-owned series f off-atreet parking; lots. His plan seems' well designed for the local situation. The lota will help in the areas where needed. What the Reg-ister-GtiBrd says for Kugene is just as true) for Salem : "Whether off-street parking 1. provided by private en terprise as at Allentown. or under municipal ownership . . . It Is positive musl" Hollywood UP' Two pretty blonde coeds announced today thev are starting a college campaign to "blackmail" any campus wolf Club" on the theory that a G who cracks wise about "dumb blondes." I who visited Switzerland once, They are getting doegone would like to go back with his tired, say Jackie MacCool and member date a man whn make, bride. A lot of them, he finds. th anvtiiintv of n- Joan Lew1' sophomores at the insulting remarks about blondes do So Switzerland has become , Te. Vt hy Uniwr,it'r of Southern Califor- in general, we'll put hit name th country labeled "Kilroy wai femini ,ir L.v mil mp f" "ia. of being treated like decor- on our 'blacklist'." there." put ga The xignificance of this lies tn the fact that the time is rapidly pausing when any people will bow to th other race, " r" ative "bubble-headV Just moil oi ine nominions in ine cause they happen to hav commonweaiin nave Dig en- low hair. tih nrtniilatinna Thit Itna with .. the mother country are close T , ' '"' T Ve in ,h doghouse. No BRAIN n . HI . f . y.. majoring in education and phi- jn k,v. .pvthine to do with But the situation is different as i.nu j ,,cr .j k,k " nining io oo wun regard. India and Pakistan and ffij 'JE' ,","1 Jh hlm-""d ""'her will any other other Asiatic neooles Thev be- ,,r"''(h,-A no,nor ""'dents. coed she can talk into taking inner Asiatic peoples, iney ne- They are calling to the blondes her siriee ong to a different world racial- of ,, nrmlsph(.re , ..unj "'""' . . . ly and culturally. join the bri(in. Mv j,cki. - ti...'. .i 1.1 .u:.i. .u- j .. . . . . "r i..-ii.-!.. dion ."""-'' "nun .ne ana joan, ana no womanKina or jmjd l.ononn conierence is TI,rn.fUr K. U. ......) t 1 J.. e yel-' ...i j, .., , . ,; " ii, ui n.i-ninrillHll nail- back, the gent will find himself everything about the house now He insists on going with mama to the store to pick out the drapes and furniture. And don't try to tell him he doesn't know the difference between fuchsia and hepplewhite. He does. The cookstove i. no longer a empire. Once they gadget, in the kitchen and cut down the hour, papa .pent SORRY FOR 'INCONVENIENCE' Two Polite Robbers Apologize for Mistake New York. April 26 (UPA big gentleman and a little gentle- BELOVED BRIDES J Solid silver Is mwMnt into the lender curve of a living roe "to prove almost 80 per cent man entered Harry Zack'I Brooklyn apartment last night. Both airrwork of modern ilvrrrrafiingl trying those pesky gonts who think of lady physicians are blonde. hd guns. They said they were sorry for the intrusion but: snd confidently expects to honey-colored curls are always So are' more than half the worn-' ,o1"' ... . . ,u, "cover-up" for feather-brains. rn teachers in the country. And The solution must b. flexible . . . about 72 per cent of the female enough to include more nations Unscrambled. BRAINS stands attorneys. than India, for other, may for -Blondes Rant Against Insult- "Just because we're light adopt the republican form of inf N,ture Society." Jackie and haired- that doesn't mean we're government. Among them might Joan started out with a less com- light-headed." ne I'aKistan ana leyion, and nliriH t,iu- "ninnri.. n.'i .u...- . . nr.ln.lv there even la speculation that Dumb." Rut those Initials spelled dumb, the BRAINS talked bo- Zack .aid It wasn't so. Then, the Dominion of South Africa out "BAD "so they quick-like somy Marie Wilson into accept, they took hi. wallet. It con might take thi. step. thought tin a new name. ina the oo.t of national .h.ir. tained S0. r. r. ' "Pullman porters are organiz- man. "That's rent money," Dr. p r. Malan, Prime Mm- ng to protest against people "Miss Wilson is supposed to protested. isier ni sown Airica ann lean- calling them T.eorae'." Joan be the worlrl'a riuinh. kuri. !" K . don't (l We were told you're In the jewelry business. "No, I'm not In the Jewelry business, and I don't have any jewelry," Zack said. ' Zack, 35, i. a brokerage clerk. "But we were told you got Jewelry," the large bandit .aid, er or ine nationalist party, aim. .aid. "Well, if they do it. so ran Jackie says. "Yes. she I. . this small stuff, the small man to wean the English-speaking we blondes." dumb like Rockefeller. She's so said. people of hi. country from what And here', the way the two dumb that she', got the .tar- The big man gave the wallet he describe, a. double loyalty gals have their campaign mapped ring role in Hall Wallis' 'Mv back. inai is, io me union oi souin out: Friend, Irma.' her Arrira ana io tngiana. "We are .tarting BRAIN clubs show, Me nas sata that mis can he in colleges around the country.' "That-, all we've got," Mid Zack. "Why take It?" "Give it back to the lady," sai l the little man. The big man gave It back. "Sorry, but we made a mis take." the small gentleman Mid "We were Informed you were In Zack the Jewelry business." Both bowed their way to the with the door. Don't wait to own this thrilling possewion! 't will be glad to set up a pj.mrnl plan even for a atarter Ml of two place settings. Casnptete t-piece D assess. Rase riete Settim) eery $22.50 FaMial Tal HKluM own radio Then they waved their guns and the top .pot in Ken at Mrs. Zack. The large man Murray's 'Blackouts.' took her engagement and wedd- rlone "only by political and Jackie explained. "All blondes "All" blondes .hould be dumb ing rings and her wrist watch, ing a.M..w . ui. ax aiigioie. juia mnj lime a uae uiat, "Do you want u. to apolo gise?" The large man asked. "Oh. no, that', not necessary. Zack said. The big man left. "Sorry to inconvenience you folks." said the little man Ieav- llhiltDDB worth about $600, STEVENS & SON Jewelers - Silversmith. Llvesley Bldg., 191 State "Don't mention It," .aid Zack. f ..t