Image provided by: University of Oregon Libraries; Eugene, OR
About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Nov. 21, 1950)
18 Capital Journal, Salem, Oregon, Tuesday, Nov. 21, 19501 ii r it i Flood Threaten! Refinery Thii picture, taken from the Bakersfield, Calif., aide of the flood iwollen Kern shows one of i the huge oil refinerlei near Bakersfield that are in danger of being flooded If the river breaks its banks. Floods and ' high waters, caused by rain and melting snow is common in ' most parti of California. (AP Wirephoto) Austerity Coming to Americans ? For Second Time in a Decade l Washington, Nov. 21 CU.R) Americans are headed toward an austerity economy for the second time in a decade. J They again are having to build up their defenses fast, s The federal government already has slapped more than 25 fed eral controls on civilian production, buying, and selling. v ttit tinlit M .S) mm Birccung uiuimiiuiii. ice steel allocation system will be S 000,000,000 a year. And about 030,000 men, many of them vet . erans of World War II, have been called Into military service. All this appears to be only the beginning. Whether all of the re- atrictlons of World War II, in eluding price-wage-rationlng re J gulations are brought back de- BnKirtcn1 war ; S ' : I As of now, It looks as though ' 4i Americans will (tart doing with- n out things like new cars, new i f tires, new refrigerators, new TV 1 j sets and other household appll j ances before they have to start 1 skimping on groceries. Only wild 1 W scare buying and hoarding of 1 sw eatables, government officials ' M ay cou'd occasion a return of ' food rationing in the foreseeable J future. , Price-wage controls are less i unlikely, although President Truman said again only recently I i that he does not believe the time 1 tJ has come to impose them. !' But other controls aplenty are sr here or on the way. ;. 21 Controls, taxes and draft calls l are governed largely by the size ""of military spending. So far, they have been geared to a jta. $23,000,000,000 annual defense budget Another $10,000,000,000 to $14,000,000,000 may be added to this shortly. For the fiscal year beginning next July 1, the mili tary budget la expected to reach $50,000,000,000 or more. Here Is what has been done al ready on the basis of a $25,000,- 000,000-a-year military spending rate: Armed Forces Army increas ed from 504,000 men to 1,000, 000; navy from 375,000 to 300, , 000: air force from 412,000 to 480,000; and marine corps from . ,V 74,000 to 120,000. jj Taxes Individual Income tax es have been boosted 15. percent. got Corporation taxes have been 81 raised from a maximum of 38 . . percent to 45 percent. Together, ' the higher levies should yield ' " about $4,700,000,000 In added - " revenue. : f" Consumer Credit The World War, II regulation "W" has been si revived. It establishes minimum - "'down payments and maxlmum " IS repayment periods on automo biles and a score of household 1 articles. ; Real Estate Credit Down payments of up to 50 percent and Cll repayment periods of 20 years 11 were established for new houses and for any homes purchased - With government-insured mort 5 cages. u Production Controls A prlor- Ity system was set up for pro '. ,1 ductlon of critical defense items. Steel Is being allocated for i, freight cars and ore boats; con ttructlon of amusement places has been banned; and civilian use of aluminum in 1951 has been cut V, 15 percent. Boosting the annual military it" spending rate to $35,000,000,000 or $41,000,000,000 between now x- and the end of the fiscal year ll likely to result In: La Armed Services Increasing 'the army to 1,300,000; the navy Cfito 570,000; the air force to 548,-,7-000: and the marine corps to m16(I.00C. Taxes Further corporation and personal Income tax hikes J The administration has asked i congress to levy a 75 per cent J excess profits tax on corpora tions to yield another $4,000,000, ' 000 a year. It also may ask In creases taxes In Individual Income Controls Restrictions of L copper, nickel and sine consump- extended from strictly defense to defense-supporting industries. Administration planners, In cluding economic stabilizer Al an Valentine, have yet to de cide what to do about price and wage controls. They recognize that the Ko rean war has produced infla tion. But they want to aee whether the public is willing to control itself before they freeze either or both. They also want to measure the inflationary impact of the soaring military defense on the American budget. Most econ omists believe that a defense budget as low as $30,000,000,000 still would make it necessary to impose price-wage controls. Pace Warns of Many Sacrifices Chicago, Nov. 21 (PI The na tion's partial mobilization pro gram, says Army Secretary Frank Pace, Jr., will mean high er federal budgets and higher taxes for several years and fur ther sacrifices "that would af fect our entire way of life." There may be price and wage controls. Pace said, and a low ering of the American standard of living. Pace, speaking to members of the economic club of Chicago yesterday, said that for the next several years "we are going to have to devote a major portion of our national Income and ef fort to defense needs . . ." He said that "This period we are entering of indefinte semi' mobilization is tragic, difficult confusing and costly but it is infinitely better than a total war mobilization which it may pre vent." Pace said that whatever sac rifices are required to solve "our present great problems of the world, we must prepare to ac cept them calmly as a citizen's proper share in the preservation of this treasured freedom and prosperity which previous gen erations have established for us, which we have enjoyed, and which we desire for our chil dren." Property Tax Stays As Ace in the Hole By JAMES D. OLSON Majority members of the interim tax study committee refused to recommend for all-out repeal of the state property tax at its meeting in the state capltol Monday. Instead, the committee, with Rep. Giles French expressing disapproval, will recommend that no state property tax be levied until all available revenues have' been used to meet the state's obligation. It was also recom mended that all revenues be placed in the state general fund would mean the end of so-called earmarking of funds for specific purposes. This action was taken alter Fred Paulus, deputy state treas urer, had . told the committee that the state property tax could not be removed entirely for the reason that many of the state obligation bonds were predicat ed upon the property tax. French announced that he would tile a minority report and Introduce a bill providing for repeal of the constitutional pro vision providing for the state property tax: but allowing the state tax to be used for retiring general obligation bonds. The committee will recom mend that the legislature pass a three-cent cigaret tax to fi nance the soldiers' bonus. Wil liam W. Collier of the state tax committee said that the 3-cent tax on cigarettes would bring In approximately $5,000,000 an nually, sufficient to pay the principal and interest on trie bonds needed for the payment of the bonus. No provision was made in the bonus measure for financing it. No action was taken at tne meeting Monday on recommen dations for financing the addi tional basic school funds voted at the November election. Rep. French suggested surtax of 15 per cent increase on income taxes to finance the basic school fund increase but no action was taken on this suggestion However, the committee will recommend that the legislature submit a constitutional amend ment to the voters under which measures providing for new state expenses shall make pro vision for revenue to carry them into effect The committee refused to en dorse a proposed business tax, but did recommend for study of the legislature whether a busi ness tax in lieu of personal prop erty taxes or elimination of all exemptions in the personal tax structure. A suggestion that the present exemptions for federal income taxes made to state income tax payers be eliminated did not meet with favor with the ma jority members. Most felt that the present income tax rates are sufflclenly high The committee will stress the need of economy in state gov ernment as one means of aiding in meeting the expected $63 000,000 deficit and after its for mal report has been written will meet once more to give final touches to the report. Canby Surprised At Academy Bid Aurora A site in the Port-land-Canby area is one of 29 being considered for a U. S. air force academy comparable to West Point or Annapolis. The announcement was news to city and chamber of commerce offi cials in Canby, who had not sub mitted any formal application for the academy. Only airport in the area is the Aurora flight strip, 5 miles west of Canby. The area was recommended to the air force by the army engi neers, along with 353 other sites similarly suggested by army en gineers elsewhere throughout the nation. The 354 have now been nar rowed down to 29. including two others in the northwest one in the Seattle-McChord field area and the other in the Seattle-Sawyer area. Air force plans for the acad emy call for a four-year air university teaching both aca demic subjects and flying. Re quisites set up for the site in clude a minimum of 9000 acres of land within about 50 miles of the major city, plenty of ac cess roads, railroads and air ports, and a high percentage of favorable flying weather. , The 29 still in the running will be inspected personally by a board appointed by the air force, headed by Gen. Carl SpaatzC USAF retired, who will arrive in Portland some time about the 8th or 9th of Decem ber in inspect the Canby area, Senator Cordon's office report ed. Nearly 100 photo labs are used by soldier-photographer-hobby ists in the Far East command. The naval aramada carrying the fight of the United Nations comand into Korean waters con sists of more than 400 ships of eight countries. AUTOMATIC MILEAGE-MAKER coming Friday in tfia 'SIFORO Ask about the new Transparent Palate Dental Plates Todayl Dr. Painless Parker Weor Your New Plates Immediately after teeth are extracted 23 - r Pay by Week or Month Mo appointment ueiseeuii tor ewcBDlnattoo 115 N. Liberty DENTIST Salem, Ore. Offices AIo In Portland and Eugene Mass Killer Ernest Ingen ito, 25 (above), Malaga, N.J., veteran, armed with four guns run amok, killed five in-laws and wounded four other mem bers of his family. Police said he did it in attempt to "clean up" his wife's entire family in retaliation for his broken mar riage. (Acme Telephoto) Women's Outlook: Shorter Skirts, Longer Hair Hollywood, Nov. 21 W.R Women soon will be wearing shorter skirts, longer hair and more sweaters, a movie fash ion designer predicted today. "The world crisis brings out the natural instinctive drives of women," designer Adele Palmer said. Mass Slayer on Hunger Strike Woodbury, N.J., Nov. 21 W) A chain-smoking young appli ance salesman has gone on a hunger strike in the Jail cell where he is held for Slaughter ing five members of his wife's family and wounding four oth ers in a 20-minute blaze of gun Warden' William Molineaux of the Gloucester county prison said today Ernest Ingenito, 26-year-old World War II veteran, "refuses to eat." "He drinks coffee and chain smokes cigarettes," the warden said, "but he won't eat." Ingenito's refusal to take any solid food since his arrest early Saturday has not yet endanger ed his health, however, Molin eaux said. Ingenito has admitted he fired the shots Friday night which ended the lives of his father-in-law and mother-in-law, Mr. and Mrs. Michael Mazzoli; his estranged wife's grandmother, Mrs. Teresa Pioppi; hia wife's aunt Mariana Pioppi, and her uncle, John Pioppi. Wounded in Ingenito's gun wielding tour of three homes were: his wife, Teresa, 23; her uncle, Frank Mazzoli; hit wife, Hilda, and a nine-year-old cous in, Jean Pioppi. All are in the Newcomb hos pital, Vineland, N.J. Frank Mazzoli is listed ai critical, the others out of danger. More Troops for Berlin Berlin, Nov. 21 Seven hundred American troops will be transferred here from west Germany this week to strengthen the Berlin garrison, it was learn ed today. The GIs are the first battalion of the Sixth Infantry regiment. THi VAKTf was swt u. . "PTRI VVlNB HOME FOR SALE BY OWNER FAIRMOUNT HILL DISTRICT A little dream house, like new, lovely and unique with many special features. Two bedrooms, each with private bath, wall to wall carpet throughout. Decora tions by Linis Simpson. Easy to Keep - Coxy to Live In FOR PRIVATE SHOWING Telephone 33398 between 8 A. M. and 4 P. M. REDUCE! Battle Creek Sanitarium Method With This Ad 4 Treatment for $10 S. H. LOGAN 1696 N. Capitol Phone 3-483? Gibson's Diamond Eight Si : 1 l Gibson's Diamond 8 Blended Whiskey. 86 proof. 65 Grain Neutral Spirits. Gibson Distillers, Inc. New York, N. V. 7?ugge4 erynes Owvrold't valve-h-lwod engine design hot bsn proved end Improved for 31 yean. h'i world (annus for rugged rN obllify, for Its ability la take hard use year after year. jo). - -a All-weldec) cabs! Powerful Valv-in-Head en gines! Strong rear axles and heavy-steel channel- type frames! Right down the Una, Chevrolet truck art built for Ihe rough-tough job and the big payload. All part, K4 all unit Ilk Chevrolet' positive Synchro-Mesh transmission are engineered to withstand the shock and strains of real work. En gineered to servo you better and Jonyer! That' why there aro more Chev rolet truck on the road than any other make , . ; why you should com In and se these groat truck todayl 7!uggecf fiames Chemist's channel-type frames are built ' for the load ; ; : bulK with reisrvM of strength In their wkf flange, deep sac Han and heavy metal i 1 t Advanos Dmlgned to withstand Hie road shocks end distortions of hauling big poyioads. Chevrolet cabs whh Advance-Design con struction are allttMl, aD-weldad for greater safety and longer service. Rigid, solidly built cabs ere ftexl-mounted on rubber for greater durability. Doors opae easily, even In off-the-road use. . fflctS CHEVROLET AD VANCE - DiSIQN TRUCK FEATURES Two Oreat Vatve-ln-Head Inglnas Power-Jet Car buretor Diaphragm Setting CKrrch Synchro Mesh Transmissions Hypold tear Axles OesjMo ArHcutatod rakas WMa-laeo Wheels all-Typo Steering Unit-Design todies Advance Design Styling. ,ppfll Ad -Design Tracks vonce-iesign DOUGLAS McKAY CHEVROLET CO. 510 N. Commercial St, Salem, Ore.
