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.
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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
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