Salem, Orejrnn, Monday, January 14, 1957
Tape 2 Section 1
THE CATITAL JOURNAL
Holmes Favors Lt. Governor Post, Annual Legislature
Demo Governor Will
Begin Top Personnel
Changes in 24 Honrs
Relieves Smith's Budget Too Low;
Miohr Program Would Increase
It Millions: No Sales Tax
By JAMKS I). OLSON'
Capital Journal WrKrr
A bold, imaginative, vigorous course in Oregon's slate gov
ernment, requiring certain structural changes as well as ap
pointment of new key men to head stale dnpartmonts was
promised by Governor Robert D. Holmes in his inaugural ad
dress given Monday afternoon.
The new Democratic governor called for authority to abolish
a number of hoards and commissions, including the state liq
uor commission, the state parole board and the Oregon de
velopment commission. To replace
them he would appoint a full-time
paid administrator to handle oper
ating of Orecon's million liquor
business and another administra
tor lo replace the 3-man parole
board.
nmltfct Tiki I.nw
Holmes made it clear that he be-
lieves the hudcet prepared by out-
gninft Governor Klmo Smith is tno
low, his proposals will add many j
millions the hudget, all he said, 1
to come within the framework of ;
the present income tax structure.
Contemplated personnel changes,
he said would bruin within 24
hours. (
"In charting the course success
fully to meet the great challenges
facing us challenges of our child
ren, challenges of opportunity,
challenges of money, challenges of
hrothernood I think the people of
Oregon want daring not dullness;
faith not fear," Holmes snid.
Knvors Lieutenant Governor
"We must fly, not flounder" he
added. "There can he no turning
back." j
Holmes said he favors providing ,
for a lieutenant governor. "The
man succeeding the governor
should he elected hy the people,"
he said. Proposals for a lieutenant
governor have heen defeated hy
the people on severnl occasions.
Holmes, who also advocated
. abolishment of the state hoard of
control, described the board as
"hydra-headed manayement of our
state Institutions which diffuses
executive responsibility, in its
place he advocated an office of
director of institutions wilh salary
atnttis "commensurate with the re
sponsibilities such a qualified indi
vidual would assume."
Favors Annual Session
An annual session of (he legisla
ture is favored hy Holmes who
asked the legislature In give this
proposal attention al this session.
He rnntended that legislative busi
ness of Oregon has far outgrown
the orderly confines of a biennial
session.
Tresent long legislative sessions,
Holmes said, now serve as a bar
to service by many qualified citi
zens. Including many farmers
whose heavy springtime demands
make it impossible for them In
serve. He also said the long ses-
ions prevent many young people
who have not attained economic
sufficiency from serving as legis
lators. Challenge nf Money
The new governor slated that
the challenge of money, which he
said faces every legislative body.
presents one of th? more diflfcult
problems.
"It is not an insurmountable
one," be said.
At the same time. Holmes re
peated a stand he had taken dur
ing election, opposition to the
sales tax.
Hi- then explained that the pre
sent budget was not prepared un
der his direction and told mem
bers of the legislature that its la
bors in this field "will not be lim
ited to halancing the proposed
midget.
(Iovernor Holmes declared that
the November defeat of a measure
allowing the placing of the emer
gency clause on taxation measures
was based, he thought, on the be
lief that use nf the emergency
clause would result in a sales tax.
therefore, ttie vote of the pen- f;tt
pie can only he interpreted as n'ttio
sixth defeat of a sales tax in Ore
gon," Holmes said.
"I urge you find the major part
nf the necessary money to balance
the budget within the framework
of Oregon's traditionally (air in
come lax structure." Holmes said,
Neck Education Mmilrt
Holmes devoted almost as much
ENDS TOMORROW
First Texan
o
JOEL McCREA
FELICIA FARR JEFF MORROW
-And-
hhU Ktdio P-Uwirt pmMt
mm una
RYAN EKBERG STF.IGER
nnr.K from
ETERNITY
of his address to education as he
dtd to taxation. He advocated in
crease in salaries of school teach
crs. increase in basic school sup
port from the prer.cnt $80 per cen
sus child to $120, and a complete
revision of basic scnool support
dMributinn,
The governor said he will place
proposed new rcrnula In bring
the original intent of the law intn
operation and urged the support of
this plan by the legislature.
A sound, well-planned reorgani
zation of school districts to give
children of small, inefficient
school districts the same education
afforded children attending well
financed schools Is needed prompt
ly, he said. Moreover he urged
establishment of a $5 million fund
at the state level to he used for
buildings for distressed school dis
tricts. In the field of higher education,
the governor advocated restoration
of the $14 building fund requested
by the board of higher education
in place of the $10 million now in
the budget ,
More Kttnciitnr Pay
The foremost problem facing
higher education, in my opinion.
Is retaining and recruiting high
quality faculty members" the gov
ernor said. "Because of the un
wise action by the higher educa
tion subcommittee of ways and
means in the last legislative ses
sion, salary schedules for ttie fac-,
ulty members of our colleges and i
universities were thrown cum-!
pli'tely nnd unroalisttcally out of '
competitive balance with oilier
such institutions and with indux-!
try."
He urged the legislature to fully
grant the salary requests made hy
the biard and recommended res- j
(oration of any culs recommended
in the present budget.
(iovernor Holmes followed ear
lier promises when he declared
that he will request the depart- 1
men! of finance to make a com-;
plete re-evaluation of Oregon's j
overall structure nl hoards and
commissioners wilh the idea of re- j
commending regrouping of many
agencies and placing them under ;
jurisdiction of existing depart- i
merits. He said he would ask that !
a blue-print for such changes be
prepared fur consideration of the
in-.n legislature
Against Capital Punishment
Saying thai he could find nothing
in enlightened religion or the elh-
jrs f modern civiliznlion that jus-
tilled an "eye for an eye" philo-!
snphy, (Iovernor Holmes reenm- j
mended immediate repeal of cap- i
ital punishment law.
"Capital punishment." he dc- j
dared "neither prevents murder, j
nor edilies the society that exacts
the death penally."
Hovernor Holmes flclly charged
Oregon olliiials in past years wilh
having loo ollen "refused to look
realistically al our economic pic-1
lure
"They have been content to
drift, wist hilly, optimistic about
the
future, hopefully silent about
any storm signals ahead, a n d
hopelessly inclfectivc in leadership
toward economic progress.
"Any successful enterprise, in
chiding the economy of an entire
slate." lie continued, "needs leal
istic appraisal of the lads, realis
tic planning in the light of those
and realistic action taken on
" facts."
"As governor, 1 shall do my best
to intorm the people of Oregon
candidly and truthfully, about the
economic facts commuting us
llccause these facts constitute part
NMIil'hUj
STARTS
? I r behind hnur-1
'- THE IRONED f Sj 17ft '
F jP t CURTAIN! 'W .A
' J 1 L.LM1V1UIN . i I
, I CHARllS BXKFORD P'r '' I itj V" I
Message
Highlights
ABOLISHMENT of Oregon li
quor commission, state parole
hoard, Oregon development com
mission and slate board of con
trol. i'KKATION of liquor unminis
tritor, full time paid parole ad
ministrator. Creation of state de
velopment department under
Jurisdiction of governor.
JfK"KAI, ef Income Inx sur
tax. Restoration of $fi00 personal
Income tax exemption.
MEET all slate Financial de
mands under present Income lax
structure.
TWO-YEAK study of Oregon
hoards and commissions hy de
partment nf finance.
INCH EASE in hasie school
support fund from $K0 to $130
per census child.
PROMISED In present new
formula for dUtrlhullon of basic
school funds
REQUESTED 5 million to aid
distressed school districts build
ing programs.
Advocated sound school district
reorganization.
SEEKS reqursts in full for sal
ary Increases for faculty mem
bers In system of higher educa
tion. RESTORATION In building
fund of hoard of higher educa
tion from $tu million to request
or $14 million.
WOULD PULL OUT of North
west Oovcrnor Power policy
committee,
OPPOSED lo ratification of
Columbia Interstate river com
pact, EXTENSION of Oregon civil
rights program.
of urgent business of this legisla
tion 1 propose to start now.
"The state of Oregon, indeed the
whole Pacific Northwest, stands at
a-critical point in its economic de
velopment. Instead of continuing
the economic momentum gained
in the phenomenal growth and
prosperity of the 40's, we are los
ing ground by comparison to the
rest of the nation.
"In the decade 1540 to lfffiO we in
Oregon became accustomed to lea
dership, leadership in population
growth, leadership in jobs, lender
ship in the size of our weekly 1
checks."
The governor said that federal
wartime production programs in
the northwest tapered oil, and in
Oregon, came to an abrupt slop.
This, he said, could be replaced
wilh solid consumer industries.
Urges .lohn Day Dam
On I he public power question
(Iovernor Holmes surprised some
observers when he did not call
specifically for all-federal con
st rucl ion nf dams. He urged im
mediate construction of the John
Day dam, and called for construc
tion of big upstream storage pro
jects "such as Hells- Canyon." lie
also urged that smaller dams such
as (Jreen 1'eler. Cougar and Hill
Creek in the Willamette valley ba
sin should go forward.
He said be could see no purpose
in continuing Oregon's representa
tion on ttie Northwest (inventors'
power policy committee and de
clared opposition to ratification of
the Columbia interstate compact
which will le before this legisla
ture. Ilulmes said he proposed to
meel Willi Washington's governor
lo discuss joint action to meet
pressing problems of river devel
opmert. "Moth of us, 1 am sure, will
work wilh the other stales of the
northwest and Canada to promote
maximum development.
Promises Tax llearlnes
(Iovernor Holmes said he will ask
the state tax commission to con
duct a number ot hearings through
out the state covering every agri
culture commodily and interest so
that a body of sound factual infor
mation on which tax revision af
leclmg farmers can be based
Itepeal of the anli picketing
lull and establishment of a "real
istic" medial ion and conciliation
sen ice were advocated by the
governor in his message.
He expressed hope that Oregon
would eiiloy many years of under
standing and peace between indus
try and labor.
"To litis end I piefer lli.U our
stale rather than the Federal gov
ernment take those legislative
sleps necessary to improve and
modernize workmen's compensa
tion laws, unemployment compen
sation and minimum wage stand
ards", Holmes said.
The governor urged support of
(RIENDlY PERSUASION'
"CRASHING LAS VEGAS"
ENDS TONITE
TUESDAY!
RPMIND
THE IRONED
-
.-IP!
Family Team in Session
The legislature's only husband-wife team was ready Monday
for Hie Important business to be enacted this session. The pair
are Hep. Katherlne Musa and Sen. Ben Musa from Wasco county,
shown at Mrs. Musa' a numeplated new desk In the House
chambers. (Capital Journal Photo) .
6 Legislative Aides
From Marion Picked
Three Marion county residents
were named as officers of the 1957
house of representatives and a like
number as senate officials as the
two houses caucused Sunday night.
The new officers were ratified at
sessions which opened the legisla
ture Monday morning.
Edith Bynon Low, Salem, is the
chief clerk of the house. Nomi
nated by Rep. Robert L. Klfstrom
ll-Marinn ' , she was chief clerk in
the last session and at the H) pre
vious sessions served as calendar
clerk.
Another veteran of the lit'iS ses
sion is Alma Schroeder, Salem,
who was again named as calendar
clerk. Her nomination was marie
by Rep. Fddie Abrens (t'-Marion'.
Tat McCarthy, St. Paul, was
nominated by (luy .lonas iD-Mar-iionl
as sergeant. at-arms and then
elected.
It was understood Wayne W. Gil
bert, Stayton, was to he selected
as mailing clerk but no action was
the legislative interim committee
on elections and recommendations
for simplification of voting pro
cesses. To Study hislitutlotis
In his message he requested an
appropriation of sulficicnt money
that he might make a thorough,
unbiased survey of the status and
condition of stale institutions and
their services. An overall study
by the legislature of the problems
relating I o menially retarded
children was also a recommenda
tion ot the governor,
He requested the assembly to
act with "sense nnd sympathy on
all proposals that will further as
sist the blind and help the physi
cally handicapped He also urged
extension of the state's civil rights
program.
A rt study of the entire state pro
perly tax law was commended to
the legislature. The governor em
phatically slated Hint he is opposed
to a state levy on real property.
Towards the end of his 5."00-word
message (Iovernor Holmes advo
cated revisions of the corporation
excise lax law. with repeal of the
personal pioperlv tax nlfset as
well as repeal nf the differentia!
rate between utilities and other
business corporations.
He -aid that the state had not
collected any property taxes for
many years, therefore any reason
able basis for the personal pro
perly lax ofKet has long dis
appeared .UUs Tm Revisions
"At the same lime you consider
those revisions" Holmes continued.
"1 recommend that you also make
whatever revision in corporate ex-
Cnnl nuoui from 1:00 P M.
BATTLE Or THE SEXES
...AND SIX-CUNS!
3p
no
p
N
I I SIEVE COCHRAN
U I "COME NEXT SPRING '
5
taken on the office at the caucus
Sunday.
Other house officials elected in
cluded Mr.i. Ruth Renfore, Port
land, assistant chief clerk; Beulah
Hand, Milwaukie, journal clerk;
and .John F. Bruns, Depoe Bay,
reading clerk. j
In the senate Rex Adolph, Sa
lem, who was head doorkeeper at;
the 1955 session, was picked as
reading clerk, and Elmer Krnst, I
St. Paul, was selected as head!
doorkeeper.
Nominated by Sen. Sidney
Schlesinger It-Marion! as mailing
chief was Charles .1. Johnson, a
veteran of several sessions.
Sen. Lee Ohmart (R-Manon)
nominated Vern Drager, Portland,
who was elecled as sergennt-at-
1 arms in the senate.
Zylpha Zell Burns. Portland, was
again named as chief clerk in the
! senate and Mrs. Kverett (Meda)
, Cole, Washington, county, assistant
I chief clerk.
cise tax rates you deem proper In
order that these rates may he
brought into line with the in
creased dema nds upon personal
incomes enacted inlo law hy the
HISS assembly," he said.
(Iovernor Holmes said the high
way system in Oregon must con
tinue to be built and improved and
the projects co-ordinated with the
federal highway program. He said,
however, he wants full and realis
tic atention paid lo Oregon system
of secondary and access roads "for
these constitute the local network
of our farm and forest economy."
He said he plans to see that the
work of the governor's safety com
mission goes forward to assist the
many private agencies working lo I
prevent growing highway acci- j
dents.
Boosts Centennial
Holmes said he favors a suitable !
celebration to commemorate Ore- j
gon's centennial ear, I9.t9. and j
expressed hope that the Oregon j
Historical society and other appro-1
printe organizations would join in
producing a program worthy of 1
WOUSSORGSKr
WOZART
KOOALY
MAHIER
SMTS RESERVED.
i-4i
Senators Go to Work
SENATE
IT n
'ft
ii i i i -- - -
On hand for what promises to be a hot session In the state senate
were Marlon county's team of Sidney Sehlesinger and l.ee Ohmart.
The two were on hand Sunday night when the evenly-divided
senate caucused but failed to elect a president. (Capital Jour
nal Photo)
Representatives Ready
'Fm us ' Kr.ntV''
.;Mi ;; REPRESENTATIVES v U llf:
Kgggjfi y : ....
Marlon county's four representatives were all ready Tor work
al the Capitol Monday as tbe slate legislature opened for the
19.V7 session. The group include (left tit right) Eddie Ahrens,
Robert Klfstrom. Guy .lonas and Wlnlon Hunt. Jonas Is lone
Democrat In group. (Capital Journal Photo )
the state's rich historical heritage.
The governor told the legislature
that he planned to augment his in
augural message wilh special mes
sages covering resource develop
ment, taxation and other suhjects
in which he said he will spell out
his program in more detail.
In closing his message he said
his heart was filled with gratitude
to the people of Oregon who had
elected him governor.
Conducts
QMWM
FEATI jdim
Brunette Mazzol
PROGRAM
-'et Exsoliare Jubila,e-
-
Da,
' - Synphony No.
Ticl,.
"I urge every member of the as
sembly to join me in approaching
the task ahead with courage and
cheer.
'Boldly we shall set forth on our
new course, buoyed by the scrip
tural enjoinder from the second
chapter of Chronicles, fifteenth
verse: " .... Be not afraid nor
dismayed by reason of I his great
multitude, for the battle is not
yours, but God's."
mi
Wl(h ...
i
x
Elmo Message Okays
2 Holmes Proposals,
Clashes With Others
(1; la S15 million liner Doara plant was
i Surtax Repeal and secured or Own, and In arlril
j."" ' , ,'. , , -i . p ! tinn the commission was inslni-
OllC UIAA.I l.lllCI Imenlal in securing a $2fi million
, . i I liner conversion for Portland ship.
Kiuloiscd iyards
t ! '-The commission has worked
Outgoing Governor Klmo Smith successfllly with federal agencies
1Wp.'" appropriations tor Columbia
he succeeded as chiel executive, river dredcins." Smith said, and
in opening his legislative message nas also worked with the federal
at the inaugural ceremonies Mon- govcrnmcnt in securing increased
day afternoon. available timber harvests."
in this message his f1' ! Another instance when the two
in some instances w.th that on je sj(c f (h6
pressed shor ly afte wa.d by Oov jn connccljo wjh he
ernor Robert D. Holmes, bill ma c , bj river act rali(ica.
number of instances the two men L, whk.h wM Jrg(,d hy &mm
were wide apart I d oppOSW) by Holmes.
Both recommended repea of the h d that-(he prMems o(
itt V S tis I: Pwer should be removed from the
to Smith urged adoption of the
budget he presented, saying that
it is a balanced budget and re
quires no increase in taxes.
And both the Incoming and out
coins eovernors urged a single ad
ministrator for the state liquor
.
control commission. Smith adding
"S o3 Connor Ho me., urged'
the commission'"! 'an investment
for Oregon's future. He said in the
brief existence of the commission
for Session
SALEM ASSOCIATION FOR
RETARDED CHILDREN
Prtitnli . , . Firil of Svrict
of Programs on Mtntal Retardation
DR. CHARLES BRADLEY
U. of O. Mdicl School iptabing on
"Child Pi ychiatrrtl'i Viewpoint on
Menial Retardation"
TUESDAY, JAN. IS, 8 P.M.
Little Theater S. Salem Hi
No Charge
arena o, partisan po tics
Only through affirmative and
aggressive bi-partisan effort can
we assure adequate power for
Oregon's homes, farms and indus
try." he said.
He declared necessary steps
1 pUmiM Kn i ib an (n occur A Hi-nnnn
" ,t... f f 'jn..
" a determination at the high-
'conltruc'tcd
government.
Construction of a labor and in
dustries building in Salem, prob
ably on the Capitol mall, to he fi
nanced out of dedicated funds, was
urged hy the outgoing gove-nor,
He said such a building was neces
sary because of the congestion in
state offices.
Young Demos to
Moot "April 26-28
ALBANY. Ore. fi The annual
convention of the Young Demo
cratic Clubs of Oregon will he
held here April 26-2R.
The organizations executive
board, meeting here Sunday, also
named Leo McClurg, president of
the Linn County chapter, as gen
eral chairman of the convention.
The board's next meeting' will
be at St. Helens, Feb. 17.
BOX OFFICE
O
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NOW ON SALE
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