n4 THI CAPITAL JOURNAL. Balsa. Oregon , ,
" ' ... . , . '. aaSS SSaWasaSI .
Cajpital AJournal
An Indapandtnt NtwtpopiwEitabliihd 1868
' BERNARD MAINWARING, Editor and Publisher ,
, - GEORGE PUTNAM, Editor Emtrltu
Published' every afternoon except Sunday ot 444 Che
meketa St., Salem. Phonet: Business, Newsroom, Want
Ads, 2-2406; Society Editor, 2-2409.
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'OM.Twr.iiMt.'.. ,. :.
TWO IMPORTANT COURT DECISIONS
, Two important decision! were rendered by Oregon's
supreme court Wednesday, one holding that the effective
date of the weisrht-mile truck fees is November 4. 1952,
the date of the defeat by the voters of the referendum
' invoked by the big trucks and the other holding that the
v Safeway Stores may process milk and cream in its Port
land plant for distribution and sale in Salem, overruling
and rebuking the state department oi agriculture lor
'misconstruing the milk marketing act."
' The opinion in the truck case was written by Chief
justice Earl C. Latourette with Associate justices Jtiaroia
Warner and James Brand dissenting. , A concurring
; opinion was by Associate Justice Hall S. Lusk, The ma
jority opinion upheld a' decision previously written by
: Circuit Judge Bex KimmeU of Marion county.
The chief justice held that the constitutional provisions
preclude the statute from becoming effective or operative
prior to the last general election date. .
. The case was an important one as it involved nearly
. $2 million in taxes, withheld by the referendum from
highway funds. The state will alio have to refund ap
proximately $400,000 in truck tax already paid by truck.-ers.
"In light of the decision, an? Broun of persons affected
by a tax approved by the legislature, could be invoking,
the referendum, delay the effective date of the tax, and
thus save themselves a considerable sum of money just
as the truckers did,", said Senator Elmo smith, chairman
of the senate highway commission, v: : ! f ' r
' ' But the truckers were not satisfied with saving the
82 million but also attempted by an Initiated constitu
tional amendment to virtually abolish truck taxes which
was overwhelmingly defeated by the voters.
The Safeway milk majority decision was written by
Associate Justice George Rossman, reversing a decision
by Circuit Judge Charles W. Redding of Multnomah. Con
curring opinions were written by Chief Justice Latourette
and Associate Justice Warner. Two Salem milk proces
sors and distributors were intervenors. ,
LEGISLATORS os Sten by Murray Wode
m mvwowwr 0
EN-WARREN J.
Gill .
flAt.trinan of
yaterans'Affairs
en.1?exluS
Chairman. of
Resolutions ,
Mr
"trf
)?ep.CarlH.
'Francis?
CAarmanof
Judiciary.
WASHINGTON MERRY-GO-ROUND
Easier to Balance Budget During Campaign
Judge Rossman points out that the "court's construction does
not detract from the power el the defendant to see to it that
producers receive ample prices; nor doei It affect hli authority
to secure, through adjustments in market areas an ample sup
ply of milk for all communities. ... A careful analysis ot the
milk marketing act by us has found nothing which supports
the 'state agriculture department's claim to economic control
over processors." -;.'' . .':'.'...-',"''''.'
Chief Justice Latourette'e opinion declared "the order of
the director is arbitrary, unreasonable, is neither within the
spirit nor the terms ot the act, not i it founded on facts suf
ficient to sustain such an erder."
; Justice Warner ruled that he could llnd nothing In the act
"which either expressly or by Inference warrants a conclu
sion that legitimate competition among any number of dealers
was Intended to be suppressed or discouraged, nor is such an
end essential to obtain the ever-all purpose for which the act
was aesignea."
. Two strong dissenting opinions were filed by Justice
James T. Brand and Justice Hall S. Lusk,
LIQUIDATION OF THE R.F.C.
President Eisenhower and Republican leaders in con
gress have reached an agreement to permit the giant Re
construction Finance Corporation pass out of existence
June 80, 1954, when its lease on life expires unless re
newed. ,-.r-'.v;?-;.'-'- ' -.
This win mark the end 'of an Instrument for dealing
with the depression of the early thirties. It was pro
posed by President Hoover and accepted by a congress
which had by then become sour on Hoover and accepted
few of his ideas. -;-.., ';,.
The purpose of the R.F.C. was to loan to banks and
ether concerns whose financial structures had become
impaired to a point where they could not secure credit
elsewhere, especially with normal credit sources frozen
up by the business conditions prevailing.
Opposition critics pointed out that usually the R.F.C.
loans went to big enterprises, but these enterprises bol
stered the entire economy when they functioned, or weak
ened it if they curtailed operations or went under.
The R.F.C. waa an excellent idea for that period and
helped to restore normal business activity. It was an
emergency instrument, pure and simple.
. Yet we find it still doing business 16 years after the
condition that prompted it passed, and after a decade of
boom conditions. This is because governmental agencies
resist destruction with even more ' determination than
other forms of life. There was plenty to prompt the
cynical saying, "Oh for a permanent benefit that would
last as long as a temporary tax." It could be nnnlierl
with equal force to an emergency bureau or department
oi ine ieaerai government.
Because the legitimate need for the R.F.C. was long
past we have found it dabbling with political loans in re
cent years, bringing a once respected institution into gen-
rai repute.
So it is good that the R.F.C. be lialdated. But it aerrod
well back in the thirties and can do a similar job again if
a comparaoie condition over arises.
FATE OF THE PORTLAND COLLEGE BILL
We took the view some time ago that a four-year col
lege for Portland would be in order any time from 1968
on but that it is definitely not in order now when there
are not enough students to fill the existing institutions to
capacity. v '
Subsequently the bill was changed to make the four
year degree courses effective in 1958, which met our
objections. Nevertheless we are disposed to agree with
the house of representatives which defeated the bill Tues
day by a vote of 86-21.
The fall of 1958 is still live and a half years away. It
will be three and a half years away when the 1955 legis
lature meets. This will be plenty of time to implement
' such an expansion program. A year and a half would
be enough if there were no danger of delay through the
referendum.
We are confident Portland will get its four-year school
as soon as there is any justification for it, and it may
come sooner than that.
Washington President Eis
enhower confessed to visiting
congressmen the other day that
he was having trouble Cutting
the budget.
"I guess it's a lot easier to
balance the: budget on the
stump," blurted Ohio's brash
Congressman Wayne Hays, re
ferring to Elsenhower's cam
paign speeches on government
economy. .
The president a friendly grin
suddenly froze.
"I never promised either to
balance the budget or reduce
taxes during the campaign," he
said gravely. "I campaigned
against waste in government,
and I told my associates
throughout the campaign that
the issue was waste, not neces
sarily lower taxes.' , , . ,
IKE'S TAXES :;'!?'-'?
President Eisenhower, like
everybody else last week, was
complaining about high taxes.
Only he was more private
about it. He told an aide that
the high taxes made it almost
impossible for him to make
both ends meet. ' Ike was es
pecially unhappy because con
gress now makes him pay taxes
on his $30,000 expense money
while President Truman got his
expense money tax-free. Be
cause of this change, Ike claim
ed he's paying an additional
$39,000 a year in taxes. Despite
all - this, however, he's still
against cutting taxes until the
budget is balanced. .
Incidentally. Harry. Truman
was able to save most all of
his fifty thousand tax-free ex
pense money because he lived
at Blair House, which is too
small for big, expensive, White
House receptions. When Tru
man left the White House, he
had saved almost $200,000
most of it from his tax-free ex
pense account.
FDR, JR. IN WHITE HOUSE
President Eisenhower was
not surprised when two recent
guests seemed very much at
home in the White House. One
was democratic Congressman
Franklin D. Roosevelt ot New
York, whose father lived there
longer than any other president
in history. The other was GOP
Congressman William Harrison
of Wyoming, grandson of Pres
ident William Henry Harrison.
Both, however, got a big
thrill attending a "get-acquainted"
luncheon with Ike
and 18 house colleagues. When
Ike , modestly began asking
young Roosevelt some ques
tions about the White House
interior, remarking that ,the
New Yorker was a long-time
occupant in his youth, Roose
velt hastened to explain:
"Actually, I wasn't here too
much when father was presl-r
dent. I was away at school and
then went into the nBvy.",
Another guest at the lunch
eon, democratic congressman
Harley Staggers of West Vir
ginia, couldn't resist getting in
friendly rib aoout tne way
Capitol Hill republicans have
been opposing some of Elsen
hower's legislative proposals.
"Mr. President, we're an
havlno- a srand time at these
luncheons you have been giv
ing members of congress," saia
Staggers, impishly. "I'm .sure
the luncheons sre contributing
to bipartisan understanding. It
you keep It up, you'll probably
get the support or. your own
party in congress."
Ike started to repiy. tnougni
better ot it, then broke into a
hearty laugh.
STATE DEPARTMENT MAltj
Secretary ot State Dulles has
issued a new order to his cupio-
mats that has the state depart
ment in a furor. The order Is
that all letters must be per
sonally answered.
Since the state department
receives more than 10,000 let
ters a week In normal times,
and up to around 100,000 let
ters when it's engaged in a con
troversy with McCarthy, this
order means that atate depart
ment officials are doing noth
ing much but answering mall.
Sacks full of letters come in
by the truckload and state de
partment officials now burn
the midnight oil trying to die
: BY DREW PEARSON
tate replies,' whereas previous
ly form letters were used to
answer most of the mail.
- Once 'before a secretary of
state Issued an order like this,
and he didn't last long. He was
Ed fitettlnlus, appointed seare
tary of state in the last days of
Franklin P. Roosevelt Rtettln
lus had just about everyone in
the state department answer
ing letters, labored valiantly
at this for months. Finally Tru
man replaced him.-MERRY-GO-ROUND
f 1
Eisenhower's sides complain
that ex-Sen. Harry Cain is tak
ing up hours of their time in
his frantic attempt to pressure
them into giving him a job. . . .
Members of the un-American
activities say privately that
their forthcoming investigation
of Hollywood will not produce
any new sensations. . . .'Jose
phine Kearney of Gloversville,
N. Y., was 97 years old her last
birthday, but she is still spry
and full of advice for her son,
GOP Congressman Pat Kear
ney.' "whatever success I have
enjoyed," says Kearney, ''I owe
to my mother's counsel to go
right ahead when I believe I
am right, regardless of criti
cism." . . . Life In Washington
would be a lot happier, says
Congressman Jack Dempsey of
New Mexico, if he could bring
his dogs with him. Dempsey
has five Norwegian elkhounds
at his home in Santa Fe. . .
Senator Toby's waterfront in
vestigating committee will
crack down on the coast guard
for lax security. The coast
guard has issued credentials
admitting nearly 600,000 peo
ple to restricted docks includ-
Salem 12 Years Ago
ism iilYWILL
is. is ilfl more than their share of the
Marco SS, . ," ",. Hl.tnr.
responsumii? M
bance which ; occurred at a
downtown restaurant follow
ing the championship basket
ball game, March IS.
rialn ffrnund for : the
huge $200,000 addition, to the
r.lnnt of California Packing
corporation on South 14th
street started today. An ares
80 by 400 will be covered by
Salem's newest Industrial ex
pansion. ;..'..'
2.. . j
. State ooara oi conu-oi yutcu
Forfiv tn evnedlte construction
of a new, 300 bed treatment
hospital at tne uregon oww
hospital no cout $328,000 (an
other post war project).
r will li Salem's
m'nMAim fnr thm honor of be
ing the oldest merchant In the
northwest In respect to continu
ous service. Will has been in
business here for the past 35
years. . y v ......
Koiem - .Tnnlor Chamber of
fnmrnprm has announced that
the first truck load of furnish
ings and equipment for recre
ation rooms of Salem soldiers
at Fort Stevens will leave here
on Saturday. ; ' '
SrVinnl director! believe that
Salum 111 oh rhnnl itllrients are
being called upon to shoulder
An order making any 12
ounce hallock or cup-type con
tainer a standard container for
strawberries, loganberries and
..nkarriaa wai announced by
the department of agriculture
on Tuesaay.
WMiinuarters." oromlnent
Salem store that stood on the
Ladd 4c Bush corner from 18S2
to 186$ has been rediscovered
as an apartment house st 708
North High street. (It is still
an apartment house.) ( V .
More gasoline' was used by
Oregon during February than
during any other February in.
hutni-v uvi Earl Snell. secre
tary of state. Consumption for
the month averaged 17.2 gal
lons per person. ;;
rnnitnictlon of Salem air
port, a federal enterprise, will
probably start within 10 days,
according to Alderman Tom
Armstrong. Low bid for the
Two Young GOPs Win
Contests in Georgia
Columbus, Ga. (JP) Two
young Muscogee county civic
leaders astonished this demo
cratic stronghold by winning
seats on the county commis
sion under the republican la
bel. '. . .
Complete but unofficial re
turns last night showed Steve
Knlght,-30, and Frank a. Phil
lips, Jr., 32, ahead of 14 other
candidates following cam
paign which Sen. Robert A.
Taft (R., Ohio) called the
"start of a real two-party sys
tem in. the South."
RHEE 78 TODAY
Seoul, Korfea U. Presi
dent Syngman Rhee of South
Korea ' celebrated his 78th
birthday today.
job was slightly over $128,000.
This is "HelD Greece Week"
and Salem, among communl
ties all over the nation, is be
ing called upon to extend re
lief to one ot the most coura
geous nations in the world to
day. . .", .
' CRR4 hnvtt a "hiff nutv V.om,.
tlful Nash automobile" deliver
ed in Salem by the Carter Mo
tor company.
tag hundreds of gangsters and
hoodlums whom the commit
tee considers security risks.
Now that veep Alben Barkley
is a television commentartor,
he shows his new radio corre
spondent's card to friends, say
ing "Look at me. I'm now a
enrd-paekln' eomwwtator!'' " '
ATOMIC NEIGHBORS " '"':
It's only a remote danger,
but our atomic energy plants
could go haywire and 'throw
off, deadly radioactive clouds.
As a result, the atomic energy
commission is quietly "buying
up land all around" the plants
in order to isolate them from
the public. '.
Under -secret congressional
cross-examination, atomic offi
cials stressed that there was no
danger of the plants exploding.
However, they acknowledged
that the nuclear reactors might
possibly get out of control and
send up radioactive clouds.
Though this would be-unlike
ly, the : A EC Is taking no
chances on contaminating
near-by communities., :
WASHINGTON PIPELINE
American businessmen bor
rowed over $400,000,000 to pay
their taxes this month almost
double what was expected. . . .
The government is making
plans to spend a billion dollars
on new highways the -minute
business begins to slump. . . ,
Ambassador Clare Boothe Luce
wanted to leave for Italy April
15 on the new Italian liner, the
SS Andrea-Doria. But with the
passenger list full, she had to
ask the Italian ambassador to
help her get accommodations.
. . . It was a forthright telegram
(Concluded on Page 8, Colamn 1)
SPRING FESTIVAL
Values At Allen Hardware
m FOR YOUR FREE TICKETS
POOR MAN'S PHILOSOPHER
Fairchild Built Fabulous
Career by Asking 'Why?'
y HAL BOYLE
New York VP) Would you
like to receive a movle-of-the-month,
mass produced so
cheaply you could show it In
your home once and then throw
it down the incinerator?
This is just one of the
dreams In the busy head of
Sherman Mills Fairchild, one
of the most agile minds of our
generation.
"We haven't scratched the
surface in the search for an
easier, better, fuller life," aald
Fairchild. "The big problem is
to overcome people's inertia
against change."
Fairchild is all for change.
He has built a fabulous, multi
million-dollar career on one
word:
"Why?"
He was born with a silver
spoon in his mouth ana a
golden question mark. .
When he was a teen-ager, his
wealthy parents presented him
with a $10,000 Locomobile. In
stead of wrapping it around I
tree or taking the high school
girls out for a spin, Sherman
drove the car into a garage and
began taking It apart to see
what made it work. .
Since then Fairchild invest
ed or pioneered in the develop
ment of the aerial camera, the
modern cabin airplane, cargo
ramps instead ot stairs, a tele
vision set that can be wheeled
to any part of a room, cranked
to any angle.
His only snort is tennis.
When he was told it would cost
$120,000 to build a winter in
door court, he designed and
built a better one for $20,000.
"It Isn't enough for a new
product to be better it has to
be cheaper, too," he said.
Fairchild has made at least
25 Inventions himself, but
doesn't primarily regard him
self as an inventor.
"I like to find a need for
something," he aald. "and then
get the right group of people
together and solve that need.
There Is a great gulf between
thei people with ideas and the
people who can finance and
carry out those ideas.
"There is a technique into
going into new things. It takes
time, patience, and determin
ation. Thousands of good In
ventions have been given up
because someone got discourag
ed." Fairchild backs ldess with
his own money, and has had
his failures.
"But I soon forget them," he
said, grinning, "and go on to
something else." v
Right now Fairchild. who
aircraft, the first folding winm underwent a msjor operation
airplane, the automatic news
paper engraving plant, record
ing equipment, ana tne atomic
engine.
Today he heads four big
firms, holds directorships in
four more, and is active in ex
ploiting products in half i
dozen fields. '
A big handsome man ot 58,
he looks like a youthful 40,
dresses carelessly, enjoys a 14-
hour work day. He reads 75
technical journals a month to
keep informed.
"I've tried canned fun-
things like vacations and fish
ing trips that are supposed to
relax you but they don't do
that for me," he said. "My big
gest pleasure Is to take a new
problem, and put knobs on it."
By that he means to solve it.
His endless inventive curiosity
Is reflected in his home it has
some time ago, is angry at in
efficient hospital beds and
also at New York's traffic
problem.
- "A hospital bed should be
hydraulic like a barber chair,"
he mused. "I figure I could
make one for only $20 more
than the present hospital bed,
but it would take at least $75,
000 to convince hospital super
intendents they ought to put in
better beds."
He also is toying with the
idea of building garages on the
ferris wheel principle. Feels
you could get cars in and out
of them faster than ordinary
garages or parking lots.
Fairchild lives with sn aunt,
never has married.
"Been too busy," he explain
ed. It would be rather hard for
s wife to keep up with him.
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