Friday, Kvrmber 27. 1935
THK CAPITAL JOURNAL. Salem. Ortcoa
PfS
'55 Legislature Faces
Tough Budget Problem
Got. Paul L. Patterson
nd his department oi ft
Banc arc worried about the
state's financial outlook.
With income tax receipt!
dropping, the 1851 Legislature
probably will have a very
rough time trying to make ends
meet.
At this early itage, the itate'i
financial brains say -that the
people at Oregon either will
have to accept a tax increase,
or max a drastic reduction In
school and public welfare
pending.
Gov. Patterson issued the
first storm warning about this
situation in a speech be made
last week. ,
Yea, we know that for the
past 10 years, the state's finan
cial authorities have been pre
dicting whopping budget de
ficits that never materialized.
The reason the experts were
proved wrong waa that income
tax receipts kept on soaring
to heights that couldn't even
be imagined.
This time, though, the pic
ture is different Let's look at
the facts.
The 1953 Legislature was
able to balance the state's budg
et for the current two-year pe
riod only by using up all of
the 30 million dollar surplus
that was on hand. This sur
plus will be wiped out by the
end of next year.
The decline in income tax
receipts is alarming. Total re
ceipts for the four months end
ed Nov. 1 were $16,872,000,
which is two millions less than
the record total of the similar
period of last year.
Personal Income tax receipts
totaled 111.430,000, which was
the same amount as a year ago.
But corporation income tax re
ceipts were only $5,423,000,
drop of two millions.
By PACT, W. BAR TIT JR.
Uncle Sam will five the state
Narcotic Evil Topic
Of Woodburn Film
Woodburn "The Assassin of
Youth" Is the title of the color
motion picture to be shown
Monday. Nov. 30, at the Wood-
burn Free Methodist church,
beginning at 7:30 p.m., accord
ing to announcement by the
pastor. Rev. George Norrwor
thy. A second picture to be
shown is entitled "Terrible
Truth." .
These pictures have been pro
duced under the auspices of
the Anti-Narcotic League of
America for the purpose of
combatting the narcotic traffic
by educating the public con
cerning Its evils. The public Is
Invited to attend this program.
Miss Julia Mae Webber of
Ashland, child evangelist, will
hold a aeries of services at the
Woodburn Free Methodist
church, Dec 1-13. The two
daily meetings will be held at
S pjn. and 4 p.m. Miss Web
ber Is a former Woodburn resi
dent, having attended the pub
lic schools here. She has re
turned to Woodburn each fall
for several years to conduct
children's meetings at the Free
Methodist church. All children
of the community are invited to
attend the meetings.
NEW PASTORDCE
Hubbard The Rev. Virgil
Wolfemberge, his wife and
small daughter of East Haven.
Conn., are expected to arrive
here about Dec. 15. Rev. Wolf
emberge has accepted the call
from the three churches of the
greater Hubbard parish for a
minister.
a little assist next year when
he cuts his income tax rates
10 per cent. The Bute Tax
Commission estimates that this
federal reliction will have the
effect of increasing the state
Income tax take by one to two
millions a year. But that's only
a drop in the bucket
When the federal tax Is de
creased the state's tax receipts
go up, because the federal re
duction makes more Income
available to be taxed by the
state.
Some of the lesislatora al
ready might well be thinking
how they can increase taxes.
It s a problem, because the
people generally defeat the
Legislature's efforta to boost
taxes.
In Oregon, the people al
ways have tine last word on
bills to raise revenue. That's
because all tax measures can
be referred tto the people.
When the people first ap
proved the Income tax, which
first waa levied In 1S29, the
Idea was that it should only
reduce the property tax bur
den. At the bottom of the de
pression in 1033, it produced
only $1,413,677.
But the Income tax collec
tions continued to mount until
19?". when it yielded $f5,777,
753. Then it started to lall oft
Legislators dont like the
idea of having to rely on the
Income tax, which now is the
primary source of state income.
The state hasn't even hsd to
levy a property tax since 1940,
The income tax fluctuates
too wildly to make for sound
budgeting two years ahead of
time, like the Legislature has
to do. A slight change in eco
nomic conditions can radically
change the best estimates of
tax receipts.
Some tax experts say that If
business drop 10 per cent the
state's tax receipts would" fall
as much as 50 per cent
In October, the total collec
tions from Oregon's income tax,
since 1929, reached the 500
million dollar mark. Of that
total, 65.8 per cent was paid
by Individuals, and the rest by
corporations. I
It took 24 years to reach the
first 500 millions. At the pres
ent rate of payments, it would
take less than 10 years to col
lect the next 500 millions.
Carriers Will
March Today
The "march" f 100.000 lei-
tar carriers across the country
starts today as the postal em
ployes begin collection af 10.-
000,000 contribution envelopes
in the muscular dystrophy fund
drive.
The latter carriers, whe dis
tributed the envelopes before
Thanksgiving; will call on vir
tually every American hone,
hoping to collect $5,600,00 ta
further rs smith into the my
sterious disease.
The "inarch" I being con
ducted under the auspices of
the Muscular Dystrophy As
sociation of America with ac
tive support from William C.
Doherty, president. National
Association of Letter Carriers
(ATM.
There ar more than 100,000
known victims of the disease in
th United States. Most of those
suffering from muscular, dys
trophy are children, who are
doomed to di unless a cur la
found.
The disease, called America's
"most mysterious malady,"
waste the muscle of its vic
tims, crippling them until they
are completely Incapacitated,
and then finally kills them.
Children afflicted with mi
eular dystrophy usually die in
their teens.
Postmaster General Arthur
I. Summ -field la honorary
national chairman of th drive,
which w-j launched in Wash
ington by Mrs. alaml Eisen
hower early this month.
Ava Gardner to 60
Ahead With Divorce
Los Angeles Av Gardner
is en route to New York City
and Rome, where she will make
a movie. A studio spokesman
aaid last night she will go ahead
with plana to divorce Frank Si
natra. Th-t spokesman quoted the
actress as saying the crooner's
latest visit with her at the Hol
lywood home of her sister, Bea
Gardner, was merely to a ay
goodbye.
Red Cross Still Needs
Blood; Salem Is Lagging
By PAT McLEAN
Da yoa wonder why th Red
Is stul asking for your
blood though th shooting in
Korea la over?
I'll tell you why. Here are
th tacts. From your bleed
cornea gamma globulin, our
greatest defense against poll.
From your blood medical sci
ence la able to continue its re
search agalsrt discs:. Thus,
more blood Is needed for the
vast discoveries now being
made, and still more blood will
be needed to encourage and
enable research to continue.
Her are more facts that per
tain to Salem. The Bed Cross
supplies th Salem hospitals!
with blood and also has a com-!
mltment to the armed forces!
for half of the quota which
should be 550 pints per month, j
This quota I needed to meet
the above demands.
Why is the Red Cross asking
for your btoodT Here are more I
reason. Last month 166 (notj
530) pints of blood were drawn. I
The Salem hospitals used 200
pints. The armed force did not
receive their necessary 173
pints, since we did not meet
the 6M quota. Th Salem area
baa not met this quota since
July, 1952.
This month the city only do
nated 139 pints and Willamette
University helped the quota by
making an outstanding draw
ing of 133 pints, more than
double the amount drawn from
th city. 11 th Woodburn draw
mg gets 75 pints on November
20th, the Salem Red Cross will
its quota for the first
Hew Pump for
Rural Firemen
Woodburn Th as
Woodburn rural fir prcta
than district pumper arrived
this week from Concord,
Calif, and is being tested be
fore being seat tnt th Wa-eonda-Miasioa
Bottom Kid
Hedge district The truck la
the fourth to be put in servtc
in this district.
tun this year.
The are the facta. New you
know why the need still exists
and why th Red Croat needs
your pint
The) pumper, purchased
through Kills' Smith of
Woodburn, wa built by Coast
Apparatus inc., en a 162
horse power chassis. It will
deliver 66 gallons af water at
600 pounds pressure with the
4-inch booster lines or 300
gallon per minute with the
1 tack boeea at ISO pounds
pressure. The truck I quip
ped witlf 200 feet ut booster
hose on. two reels and 100
feet of JVmch line. - Other
equipment includes a 500-
galloa water tank, 14-foot
aluminum roof ladder and 24
foot aluminum extension lad
der and four pump cans for
field fires, a two-way radio is
to be Installed.
The unit is located in
Woodburn at present and will
be stationed In the south part
of the district as soon aa quar
ters can be arranged.
V. . IOLDIKR FLEES
Heidelberg, Germany ()
The U, 8. Army's European
headquarters here said Friday
a Polish-born soldier who th
Communists claim fled to Bast
Germany baa been absent with
out leave from his unit la West
Germany since Nov. 1. Th sol
dier is Pvt Stanlslaw Zdanow
ski, 23, of Bataria, N. Y.
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OPEN TOHICHT
HI MO
YOU ARE
INVITED!
-Downstairs
Until
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Tonight
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Tonight v
'Til 9:00
IS READY! ALL THE NEW AND
WONDERFUL TOYS! YOU'LL
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AND MEET SANTA
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Open Till
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