"Capital AJournal
An Independent Newspaper Established 1888
GEORGE PUTNAM, Editor and Publisher
ROBERT LETTS JONES, Assistant Publisher
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meketa St., Salem Phones: Business, Newsroom, Want
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4 Salem, Oregon, Wednesday, October 26, 1949
Anniversary of the 1929 Panic
Monday was the 20th anniversary of the worse peace
time disaster to strike this country the 1929 stock mar
ket crash, which pricked the bubble of inflation and wiped
out f.55 billion in paper values on the New York stock ex
change. Stocks had been built up to absurd valuations through
nation-wide stock gambling on margins borrowed money.
The panic started when 6000 shares of Montgomery Ward
changed handR at 83 against a year's high of 156. Other
stocks also hit the toboggan all along the line. The selling
conflagration spread like wildfire across the nation and
kept the ticker far behind so far that it took four hours
and eight minutes after the market closed before the final
sale of the day was recorded.
There were three principal causes. First, stock prices
had been allowed to soar out of all sane relation to their
actual value. The credit for buying them had become tre
mendously over-extended. Second, the heavy selling of
American securities when the Bank of England felt the
financial pinch following the failure of Clarence Hatry in
England, and third, the frolicing of the bulls and bears in
pools and rigged sales with "wanton disregard of the public
interest."
There are many differences of opinion as to what pro
longed the ensuing depression to record lengths, mostly
political. There had always been a comparatively quick
recovery from our many other depressions, but none of
them had ever tried the New Deal remedies which effected
no cure until World War II brought recovery, and it was the
long depression which caused the craze for security and
stability even if it meant regimentation and loss of free
dom. Another such financial calamity as that of 1929 is im
probable. Banks are policed and deposits insured, mar
kets are watched by the SEC, credit by the Federal Reserve
bank, investors nowadays are wary, excessive profits
heavily taxed, and Wall Street on good behavior.
Why Dr. Nourse Resigned
The resignation of Dr. Edwin G. Nourse from the presi
dent's Council of Economic Advisers, of which he is chair
man, is evidently because the council was expected to make
a set of facta fit a political policy or a preconceived eco
nomic theory instead of the neutral concept found in the
law creating the council. Differences in conclusions be
tween members of the council have been minimized, instead
of supporting one set of conclusions, so as not to arouse
partisan criticism of proposals.
Mr. Truman, apparently like his predecessor, the late
FDR, wants his advisers to tell him how to carry out the
pledges he has made in his campaign to activate his social
economic theories. He does not want to be given a num
ber of reasons why the economy will react adversely in
Btead of beneficially.
In other words, the presidential advisers are not to furn
ish honest opinions but to find basis to support any policy
determined upon before the advice was asked, and then
expand this advocacy before congress and elsewhere.
An Impartial and unpliant economist is not wanted as
an adviser, for a conflict between the economist and the
politicians is inevitable. What the executive wants is a
group of yes men to secure a scientific window dressing
for the administration. And there are plenty of such to
replace Nourse.
i Dr. Nourse first offered his resignation last December,
after the election, probably realizing that he would be ex
pected to try and find a sound economic base for carrying
out the Truman campaign promises. Being both non-political
and non-partisan, Dr. Nourse was not interested in
sacrificing his honest professional opinions and made ac
ceptance of his resignation mandatory when opportunity
offered.
City's Thanks to the Eagles
- Salem now has an iron lung on ready call for any needy
polio victim. To the local nerie of the Fraternal Order of
Eagles, go the thanks of the city and area for spearhead
ing the drive that made the iron lung and portable respira
tor possible.
' The drive is a tribute, too, to local initiative, which sup
posedly does not exist any more, according to the federal
government. When the Eagles first put out the call for
donations for the equipment to help polio victims, the re
sponse was immediate. At the time, the Capital Journal
commented on this excellent instance of a group of people
in the community taking the initiative on its own to meet
a need that was so obvious.
; Donations came from all kinds of sources individuals,
organizations, and groups of people. For instance, a few
women working in one of the local canneries pooled some
of their earnings to help the drive. Proceeds from a box
ing card will add to the sum.
' The city is fortunate now to have this iron lung handy
at all times. And the fund-raising campaign, sparked by
the Eagles, is indicative of what local people can still do.
Puzzler: Couple's Daughter
To Become Daughter-in-Law
North Bend, Wash., Oct 26 W It sounds like a punier,
but It's no puiile to Mr. and Mrs. William C. Williams: their
daughter Is about to become their daughter-in-law.
Kathryn, It, will become the bride ot their adopted son,
Fred, 20, Thursday night.
Kathryn's father, a lumber mill employe, forbade the mar
riage until she was 17. Thursday li her 17th birthday.
The Williams adopted Fred In 194$. lie la an air force prl- '
Tate, stationed at Spokane.
The young pair think the household relationship baa Ita ad
vantage In assuring a atable marriage.
"After all," commented Kathryn, "Fred's eaten my cook
ing; we know how the other looks In the morning, how we
et when we're sick and each other's likes and dislikes."
But If something should go wrong who'll go home to
toolbar?
by BECK
Recollections
MumbOT 14 HSV VOW OCTOtiH t. HQS trie f Cnt .
'OESIST, YOU HEARTLESS MISER. I HAVE ACHIEVED SUCCESS IH THE BIG
CITY AND WILL fWf OFF HER MORTGAGE. 1 HAVE HOT FORGOTTEN SHE
LET ME SLEEP IN HER HENHOUSE WHEN I WAS A HOMELESS WAIF."
WASHINGTON MERRY-GO-ROUND
Some Big Tax-Fraud Cases
Are Delayed or Sidetracked
By DREW PEARSON
Washington President Truman's warning that there must be a
tax Increase recalls the fact that bureau of internal revenue
experts estimate they could collect close to a billion dollars mora
annually without increasing taxes if they had better income-tax
enforcement. " " "
At the subsequent trial, U. S.
Attorney Lee Spillers not only
bungled the case, but was put in
an extremely bad light when It
was disclosed that he had once
received a large political con
tribution from Lias. Incident
ally, the justice department had
wanted to try the case with a
special prosecutor, but Spillers
Insisted on handling it himself.
In the end, Lias was acquitted,
even though he once had plead
ed guilty.
BY GUILD
Wizard of Odds
Two years ago
the 80th con
gress chopped
off a huge army
of income tax
e x a m 1 n ers, a
group of hard
working, under
paid public ser
vants who have
the unpleasant1
but necessary
Job of checking
on people's In
come taxes.
While part of this cut per
sonnel has been reinstated, the
KA.JA ilJ
Drew PeraoB
Latest tax fraud case which
. , tilt ..Tneii..v has come to the attention of
tax examiners are sua woefully ,,, . . , . ...
j hud tuiuuui im mai. ui ti.
naray ana r . mcrvenzie wbvi-
understaffed and able to
spect only a fraction of the re
turns.
SIPS FOR SUPPER
Mystery Solved
son, the Arlington, Va., asphalt
Irf nff tvhn U7rt rvnmnnnHH
On top of this has developed lor crimini prosecution by the
another tax-payment deterrent justjce department last July.
namely, delays and wire-pull- .. . . . . .
, ,, ,. . . xu uruBimi iv uiuKvuic tame
ing in the prosecution of tax , .,.!.. , . .
wii.j wiw wire J -ul uc.aj, uu
california iems all stctes
in books written about it.
runner up last year, by 23
to 21, new york
It's only ttoI "your state
HaS AT LEAST 1 TELEVISION SET
NEVADA, IDAHO, MONTANA, WVOMINS,
ARIZONA AND FLORIDA ARE TV-BAKE
BY DON UPJOHN
Ed Amo and wife sitting in the quiet of their home out on
route 8 the other night solved the mystery of what sounded like
a ghost plane which hovered over the airport in the dense fog
of Sunday evening and zoomed away in the mist and oblivion. Ed
says they figured out what happened was that some young chap
of .
various discussions with attor-
in a burst
speed with too I
heavy an out
board motor for
his boat on the
Willamette slith
ered ud Into the
air on the heavy 1
fog, did a turn
over town and
the airport,
turned back and
took to the riv-
Don Cpjohn
abroad In the land. As evidenced
by a big hunky of jerky left on
our desk by W. A. Bevier and a
dozen of what Jim Uebelman,
the shoe and poultry expert, des
ignates as "pullet" eggs from the
Edwards Hatchery and Poultry
farm. These "pullet" eggs weigh
an average of three ounces each
or over, about five to a pound
and tapping a sample indicates
they are all double yolked. Gosh,
pullets that mother twins. At
When the average taxpayer n.v. ,hlph inrlnHed nn eon.
sees certain big shots getting terenct with Senator Byrd, plus
away with spectacular tax viola- talks witn other Virginia poll-
tions, naturally he figures he is ticians
entitled to do the same. Four mmlht haye now paMed
since the justice department's
This Is not the fault of the recommendation for criminal
treasury tax examiners nor the Prosecution reached U. S. Attor-
, . ney George Humrickhouse at
prosecution officers of the jus- Richmond and no prosecution
tlce department, most of whom has begun.
are diligent public servants.
However, when this column
er again. The fact that no plane anv rate, lf this is what the
Christmas spirit does It's too
doggone bad it comes around
only once a year.
has been reported missing, says
Ed, gives credence to their
theory. So let's let the matter
rest that way.
Paradise Regained
Ed Gets His Orders
Little four-year-old
"Butch"
Aurora Springtime fruits and Rogers, grandson of County
flowers have been harvested for Commissioner Ed Rogers, want-
the past six weeks in Aurora ed h? .mther dur.ive him
, . , from Quinaby over to his grand-
gardens. Fresh raspberries 1 n house lhe other moTnin.
the Robert Powell and Harvey Hi, mother w so but she
Everhart Patches strawberries told Butch ,he couldn.t take him
from the Miss Hilda Beiser and
George Atkins places. A rhodo
dendron is blooming in the same
on account of a heavy fog and
there being no yellow stripe on
the road. "And that's your
block, dogwood in bloom are Grandpa" Ed., faulti.. ahe told
But when tax frauds are sent recently raised a question as to
to U. S. district attorneys for the reasons for the delay, Sen
criminal prosecution, intermin- ator Byrd issued the following
able delays sometimes develop, statement:
Some district attorneys just do "Drew Pearson has by false
not want to prosecute. statement attempted to involve
Sometimes local politics are me in a tax-fraud case. He is
involved, and since U. S. district a master of the technique of
attorneys are appointed under smearing public men by lying
a political spoils system on the innuendo . . ."
recommendation of local sena- After denying that he had in
ters and congressmen, they are tervened on behalf of Hardy and
sometimes more Inclined to take Davidson, Byrd continued:
orders from congressmen rather "Pearson has made other false
than from the justice depart- charges against me and too fre
ment. quently has made me a target
of insidious innuendos. But I do
not intend to have him malici-
But whatever the reasons, ously create in the public mind
here are some tax-fraud cases the impression that I am in-
which have been delayed or side- volved in a tax-fraud case,
tracked between the justice de- "if Pearson does not adequate-
partment and the district at- ly correct these lies, insinuations
torneys in the field. In some and innuendos, I intend to sue
cases no politics may be involv- him for libel."
ed; but in any case the effect on
POOR MAN'S PHILOSOPHER
Recall the Gunnysack Look?
Is It on the Way Back?
By HAL BOYLI
New York Of) Lady, say it isn't so. Please, say H lent to,
lady.
Say it isn't true this report that female fashions an going
back to the 1820's for inspiration.
No, no, no! Not that!! Anything else not that. What have
we done to ''"-i i i a , i
serve such eye-gNj I'l shelf for fear the children will
ball p u n 1 s h-f f 4 Y turn to the pages pasted In dur-
ment? f 1 '.t ing the 1920's and be fright
ened into fits.
Remember nowT Remember
how the girls drove men out of
their last refuge the barber
shop to ,get those close
cropped boyish bobs? Remem
ber the short, shapeless dresses,
the hats that fitted like a shield?
It was the fond ambition of
every fashionable lass then to
1 11 look like a soda straw, but nat-
And it isn't f I
even ourselves ,
we're so wor-
ried about. It's j
you, lady, wny
should you do i
it to yourself I
again?
Don't trade
the "new look"
for the "gunnysack look."
numerous, to say nothing of Butch "He could have a vel- tne rest tne tax-paying public
violet and camellia buds show- ,, llf fh. r.nri h. is bad.
in rMnu.. H.t. '
Butch. "He could have a yel-
in uanoy nearoy wanted to. So Butch hunted up
Miuuiiuiig in viiv firanrtna va flnd irnve his or
ders. 'I want you to see there's
vnllnur tririA mil nn mil rnarl
dron is in bloom at the Toby . T ... .nri.
IIUIIIC,
ing color.
azaleas are
yard of Mr. and Mrs. W. B.
Bailey and a purplish rhododen
C, the T-men found that the e a d ut him, Senator Byrd
sheriff of Prince Georges county, "Iways stood for honesty in
Md., Earl Sheriff, had collected government Therefore a state
about $49,000 from gamblers ment. f.rom th! 'eto thf' h
-i,,.- . ,.. i,k v.. has intervened with the U. S.
reported a total income of only """" hsten P""".
a Ann .v.. .v.. rather t h a n a negative state-
pu,-zw. iju, wncn tne juautc de
partment sent this case to U. S.
Attorney Bernard Flynn in Bal
timore, he sent it back with ad
vice that it was a difficult case
to prosecute.
Again out in Kansas City,
Kansas, the T-men caught an to avoid higher taxes next year.
failing to report as income 1,000
fees received from patients dur- CAPSULES
ing three years. The justice
department sent the case to U,
S. Attorney Lester Luther In
Topeka for criminal prosecution,
but Luther wrote back that he
did not want to prosecute, be
cause Dr. Hessler was too prom
inent in the community. The
justice department instructed
This columnist has believed
that, no matter what else might
Christmas Spirit
The Christmas spirit is getting low stripe,
ma." So d took the matter up
with the court this morning and
maybe Butch will get his yel-
Strange Ways of the Orient
Bangkok OT At the post office there are special boxes for
posting mail marked "Foreign," "Inland" and "Air Mail."
Every few hours a postman comes with a huge bag. He
empties each box and drops all the letters Into the big bag.
MacKENZIE'S COLUMN
Fierce Moscow-Tito Quarrel
Seems Mounting to a Crisis
By DeWITT MacKENZIE
On Forelin AUtlri Aiialmi
The fierce quarrel between Moscow and the politically rebel
lious Marshal Tito of Yugoslavia seems to be mounting to a crisis.
Precisely how the Kremlin intends to apply the screws is still
a matter of conjecture. However, Mosha Pijade, member of the
Yugoslav politburo, appears to have summed the matter up in
moderate
ment that he has not intervened
on behalf of the tax violators
would be much more welcome
from him.
A mere neutral attitude re
garding tax collection and tax
evasion is not enough if we are
Moscow Wants Showdown
Intelligence reports from the
Balkans Indicate that Russia
plans to infiltrate Bulgarian,
Hungarian, and Rumanian
troops into Yugoslavia to start a
revolution against Tito.
Moscow would then trumpet
him to proceed anyway, how- hi,J f th world . revolution
ever, and he is now doing so.
Another significant case, re-
by Yugoslav patriots and would
march across the border. A top
American diplomat Just returned
from the Balkans reports that
Moscow is determined to force
very
terms indeed
when he told
his people Sun
day that "we
are steadily
sailing in dan
ger." Actlvitlrs of
Russia and her
satellites seem
to support un-
conrirmea rt- D,wm M.rkrnl.
ports reaching
obviously pleased with
success, declared to his
Tito,
their
men:
"We are prepared to defend
this country until the last breath,
regardless of whence the attack
comes. No one has the right,
regardless of wlio he may be,
to endanger a small people."
The middle of this month the
Yugoslav government accused
neighboring Romania of fre
quent violations of the Yugo
ported in this column as early 2,,, ..ti Z
. iaii ..,. ,. . m,.. pi.. th's showdown soon partly oo-
rn;p.L. .nj k , cause it now has the atomic
nor Patenotre and her son oyer bomb u ,
concealed profits made from the vinced "the United State. wiU
attic ui i lie nuiuueiimia inquir
er, whereby the Patenotres paid
not fight to defend Yugoslavia.
a tax of only $1,567 in 1930 when on why all American ambassa.
1 huld have paid around dor. from the Iron Curtain ,
$200,000
tries have been summoned to
Thanks to the diligence of one meet In London.
or two treasury agents and a ser
column
lally in
the American state department gIav bordeT and air!,pace, and
that the satellites, with Soviet of attempts to "provoke armed
backing, are planning a guerril- ,ncidents and unrest Similar
la campaign against Tito. noteJ were wnt about the Mrne
This would be patterned after time to Russia, Bulgaria and
the communist war which was Hungary.
waged against Greece so long Then on October 19 the Yugo
but now has been suspended, giav official press reported that
perhaps because of impending Russia had moved Red army
action against Yugoslavia. troops into neighboring coni-
form countries as part of a war
The Idea of such a guerrilla mongering campaign against
offensive would be to establish Tito's government,
a base Inside Yugoslavia and in- The official press further
spire a revolt among Yugoslavs, charged that satellite countries,
This base would serve as the with Soviet help, were strength
capital of a new Red republic, enlng their border guards and
In ahort, Tito ostensibly would were building trenches all along
be overthrown by a rebellion their frontiers with Yugoslavia,
from within his own country.
Once his regime was disposed of In the face of these develop
Yugoslavia would again become menta, Tito thus far has main-
loyal follower of Moscow. tained a rugged front.
So far as Moscow is concern- This Is not without reason, for
ed it has made no secret of Its he is a soldier of wide experl
Intentlon to crack down on Tito ence and has been preparing for
in due course. Many of its move, contingencies. He is credited by
have been made quite openly. informed American official.
with having sufficient military
As far back as October S th strength to handle any border
Marshal told hi. army officer, fighting that might develop,
that Russia had been "forging His army is said to total about
Ita irons" against Yugoslavia. 60,000 and it is comprised ot
This was at the conclusion of some of tht world', finest fight
Yugoalav ana moMtivon tad tax man.
dieted in August, 1948.
However, the significant fact
W.ll C ..! C ..
irs of exposes by this column, ' " , ,7, , j . ' .1
,,. , secret talks aimed at ending the
the Patenotres were finally in- , 4 . , , .
bicci smite arc inning place in
Wall Street.
Ti nmVaKtu ill U. K..4
u h .1 l I departme.nt Ben Moreell of the Jones-Laugh-
had all Its information available h gteel companv ,ogether J-t
in 1943, and that Raymond Pat- inUnd and Bethlehem Steel, are
enotre was In this country from not nappy about the ,trike ' Au
194S on Yet thanks to Pa eno- three companie, had io
tres ability to hire one of the planf Mote the rik and t ,
recent secret meeting in New
shrewdest tax attorneys in
Washington, Ellsworth Alvord, York. Bethlehem, Jones-Laugh.
no inoicimem was orougnt umu iin ind jnUnd all preMUred
1948. Meanwhile, there were jt s. Steel to vielrl
uoei inreais against inis column.
Even after the Indictment,
however another year dragged
by, with much legal haggling
over a compromise. Finally it MERRY-GO-ROUND
was arranged trial Madame fat'
enotre would plead guilty and
Enders Voorhees, who really
runs U. S. Steel, wouldn't budge.
Tht vl.it of India', prime min-
pay a $2,000,000 cash settlement 'ster Jawaharlal Nehru to Wash
ington win neip the state depart
ment decide whether or not the
U.S.A. recognizes communist
China. Nehru is considered the
wisest top official in the far east,
with the exception of Australia
Herbert Evatt.
The American embassy has ca
bled the state department that
If she didn't have to go to jail,
Most folks, of course, can t af
ford top lawyers or such big
cash settlements.
Another Interesting tax-fraud
case was that of Bill Lias, well-
known Wheeling, W. Va., gam
bler who oriainallv oleaded ,lvin iiKt hav nw been wen
guilty to cheating the govern- ln.th" ,kv over Rumania. It U
ment out of nearly $1,000,000. not "nown whether they ire e.
After he entered hi. guilty plea, cr" """'"n rockets or Just
however, a considerate Judge al- omeone s imagination. U. S.
lowed Lias to withdraw hi. plea genU ,re checking,
and faca a Jury. ., , icwiwi uui
admit there was a lot of foolish ural feminine architecture too
male yammering against the often decreed that the result
"new look" a couple of seasons should resemble a gunnysack
back just because it was novel, full of sugar on stilts or piano
Every man was surprised to see legs.
it turn out better than he had Never have lovely ladie.
feared. looked so awful, not even since
they took up slacks. No wonder
But going back to the 1920's men slept in bathtubs wet with
again is another thing. We homemade gin or plunged on
can't hope for anything but the the stock market. They had
worst because we went through been made desperate by the
that madness before. sight of what the women they
Go back to the fig leaf of loved had done to their rulnou.
Eve or the bustle of Victoria's beauty.
day. Wear anything ever tried And now this fabric night-
in the long forlorn history of mare is on the way back. A girl
woman's struggle for style any- who should know tells me:
thing but what you clothed "The new vogue Is no waist-
yourself in during the mad, bad line, no bustline, no hips, no
1920's. nothing boyish."
They call that the period of Don't do it, lady. Please!
"The Lost Generation" and For if you do, the men will
blame it on the disillusionment have to dress like the 1920'., too.
of the first World War. But it Recall a thing called "the cake-
wasn't the men who were lost; eater"? He was the drugstore
it was the women. It was the cowboy of that vanished era.
time when girls would be boys. Would you like to have to go
No wonder the boys refused to out on dates again escorted by
grow up and act like men. something like that, lady?
Remember? If you don't, get No? Well, save us from your
out the family album and take a 1920's look and we'll keep the
look. I know some families cake-eater under glass. It's a
that keep their album on a high fair bargain.
Tommy's Beloved Calico Dog
To Be Buried With Him
Pittsburgh, Oct. 26 OT Tommy Arth's beloved eallco dog
will stay with him even In death.
The toy dog will be buried Wednesday with the three-year-old
leukemia victim. Tommy died Sunday night, the
calico dog clutched in his withered arms.
The little boy had won the hearts of many sympathiser,
while In Children', hospital when he pleaded for the dog.
His parents hesitated to bring the toy to the hospital because
of Its battered condition.
Marion County Recollections
When John Minto Was Sheriff
By OSWALD WEST
One of the outstanding early day sheriffs of Marlon county wa.
John Minto.
He stood out in the crowd, tall, straight as an arrow and well
proportioned. He was a sight for sore eyes. He was always well
dressed knew how to wear clothes and used the best of Judgment
in their selection. "
On a certain occasion, he held the lines and whip and we raced
a warrant for the arrest of across the bridge,
gambler Finley, who saw him Flnley saw us gaining on him
coming and beat it for Polk and, knowing we would soon
County on foot via the Willam- catch him, climbed over the
ette River bridge. railing when he was beyond the
It developed into a foot race water, and slid down a pile to
between the sheriff and Finley, ?lid ground and headed for the
but the latter had much the brush.
best of the start, a couple of hun- He was Just about to make
dred yards, and was due to cross cover when Minto, Jumping
the Polk County line in advance ,rom the buckboard and pulling
of the Sheriff of Marion Coun- his gun, fired a shot .0 close to
ty the gambler's ear that he stop-
wa. in progress, Frank Starr gambleri he ordered starr to
and I, driving a team of cayuses sllde down the ,ame pUe ,nd
to a buckboard, were on North free2e onto him. He then took
Commercial street headed south. his turn .liding down the wet
We reached the street, lead- and slimy pile (and what it
ing to the bridge, at the same did to the fine brown broad
time as Sheriff Minto who, bad- cloth suit he wa. wearing!) and
ly winded, stopped us, and proceeded to the west (Polk
pointed to Finley, then well up County) approach to the bridge
on the bridge, and on his way to where I, with team and buck
Polk County. board, picked then- up.
"See that T Well, A little matter of jurisdiction
catch him " didn't bother Sheriff Minto. If
As we headed for the bridge, necessary he would have chased
the sheriff jumped into the back hl ln Tillamook County and
of the buckboard and, with m"dethe "J"1' ... . ...
hands on our shoulders, urged We- e delivered the sheriff
and his charge to the court house
.' . , , ... .. and county Jail and each re
We were driving with caution, ceived , blg fllver dolllir or
for It was unlawful to show our services. AU dollars looked
speed when crossing the bridge, big in those days.
but we were moving too slow Starr, in time, adopted Fin-
for the ahariff. So, he grabbed ley profession!