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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 14, 1957)
f Pag. g-Sectiort I THE CAPITAU JOURNAL Salem, Oregon, Thursday, February 14, 1U57 Capital JuJournal An Independent Newspaper Established 1888 BERNARD MAINWARING 0897-1957) Editor and Publisher, 1953-1957 E. A. BROWN, Publisher GLENN CUSHMAN, Managing Editor ! GEORGE PUTNAM, Editor Emeritus Published every afternoon except iunday at 280 North Church St. Phone EM-46811 Full Letted Wire Service of The Associated Prest tnd The United Press. The Atsc.ci.tcd Prett It exclusively entitled to the use for pub lication of til newt dlsptlchei credited to It or otherwise credited in thlt piper tnd also news published therein SUBSCRIPTION RATES By Ctrrler: Monthly, It.JS; Sli Months. 17.50; Ont Inr, II1.M. By mill In Orefon: Monthly, 11.00; Six Months, 15 00; One Yetr, 19 00. By null OuUldt Oregon: Monthly 11.21; lit Months, 11.50; one Yetr, 115.00. RAY TICKER Political Spoils Bill House Bill No. 506, introduced by 20 Democratic Rcprcs sentatives and 4 Democralic Senators is a bill to abolish the Board o( Control, repeal or amend some 20 statutes, centralize appointive power into the hands of a Democratic governor, create a director of public institutions a complete reorganiza tion of stale government. Oregon's State Board of Control, consisting of three lop members of our government, the Governor, who is ex-officio chairman, the Secretary of Stale and the State Treasurer. No member of the board receives any salary or other compen sation for services rendered as a member of the board; but each member shall receive all necessary traveling expenses when traveling on tours of inspection lo stale institutions. The' Board must hold al least one official meeting each month but as many more as held necessary. Duties are clearly de fined. It governs, manages and administers the public in stitutions, buildings and works that come within its jurisdic tion, including entering into contracts for the erection and furnishing of all new buildings, contracts for purchasing of supplies or equipment, accepts and conveys property, etc., etc. The Board of Control was created in 1013, during Gov ernor Oswald West's Democratic reform administration. It has functioned for 44 years satisfactorily, unscarcd by scan dals. Three top stale officials have, most of the time, func tioned harmoniously and non-polilically, under both democratic and republican governors. The welfare of the slate has always been the objective. Why change it? There has been no public demand for il. :The proposed abolition of the Control Board is purely a political spoils proposal, to sweep out efficient officials, selected for competence and replace them with "deserving democrats" to build an effective political machine to keep partisans in power. Oregon has had for the past half century a remarkably efficient government under both Democratic and Republican governors. Politics have not figured much in appointments and the rank and file of state employees have been placed under civil service. Why change a system that has proven its efficiency, for a trial and error political spoils syslem that has in some other states proven disastrous by making the governor a politciai dictator for spoils at taxpayer expense and frequently boom eranged in scandal. G. P. Chamber Makes Good Business Deal The Salem Chamber of Commerce has made two good bus iness deals in the last year. The first, o course, was purchase of the Hodgcrs property at Lourt ana Norm umage Inr Its permanent headquarters The second was the recent sale of 34.5 acres east of the city for development of a privately-operated park and recreation resort. Purchase of the ilodgcrs property cost the chamber $30,000. but relieved it of heavy rental payments and the Inconvenience of being buffeted about from one downtown spot to another. The recent sale nets the chamber about $14,000 to apply to the debt to the headquarters property, and the chamber still has 61 acres left of its acreage east of the city. Ten acres of this are leased to Oregon Pulp & Paper Company for storage use. During World War II (he land was government-owned for air corps barracks use. After the war It was made a federal housing project, and later, when declared surplus property, was acquired jointly by the Chamber of Commerce, the grow ers, and tho food processors of the community for housing transient harvest workers. Then the chamber acquired title trom lite other two parties lo tins ownership. In acquiring the land the chamber's thought was that il would be suitable as a location for industries. This hasn't worked out because of lack of nearby railroad facilities. But the land is available for other uses. The chamber has no cause lo worry about it, and isn't worrying, for it is in no hurry to sell further acreage, and has a policv that the property shall be disposed of only for purposes that provide jobs or recreation. This policy was suggested by the late Bernard Malnwaring, who was a member of the chamber board, and he was largely responsible for its adoption. With what has been netted from acreage already sold, and use of the land as loan collateral in the ftodgcrs purchase, tho chamber has come out very well. The sale to Itcx Ellis, Curl Ferguson and associates of an area for development of a recreation resort appealing especial ly to families and children will, if carried out as planned, bring an asset to the community, and should be a paying in vestment for the purchasers. Nation's Economy Becoming More Confused Than Ever WASHINGTON The nation's economic, financial and monetary system wiifics, prices, prospects, money costs lids U C t U III C more confused than at any time since Franklin D. Kooscvelt tin kered with our currency by de valuing the dol lar and abolish ing the gold standard. A 1 most every cx port at Washing- ItAV TUCK KB ton disagrees on diagnosis and remedies. Although both President Kiscn- hower and Sccrelary Humphrey praise and defend their record breokins budget of $71.8 billion (book figures only), they urge Con gress to reduce it, if possible. As a safeguard against inflation, Ihcy beg management and labor to show moral fiber and restraint in raising prices and demanding higher wages. Administration Passing Buck The politico-economic reaction to these cross current statements and picas is that the Administra tion has abdicated its primary re sponsibilities. In shorter and sharper language, the political, business and labor communities make no secret of their belief that the Administration is "passing the buck" in a big way. Capitol Hill, Including rteDubli- can stalwarts, maintains that the Executive seeks lo shift final blame on them. If they slash the budget, they can be accused of tampering with foreign aid, de fense and welfare programs. If the Democratic majority accept it, they will share responsibility for continued inflation with the White House. Ike's own financial and business friends, who voted for him and financed the GOP's election costs, are shocked at the failure to re duce Federal expenditures. They attribute it to his unexpected and unwanted expansion of costly New Deal Fair Deal handouts. Labor Leaders Viewpoint ' Labor union leaders feel that Ike aims to embarrass them. They say that, even aflcr heavy taxes, pro fits for the President's "big busi ness" associates have risen by a far greater percentage than pay rolls. In fact, the threatening deterior ation of the economy has reached such a state that even the con servative Eisenhower envisages the need of Federal controls, al though they will destroy what he calls "America as we know it," Budget Director's Pessimism Perhaps the worst shock to alarmed members of Congress was delivered by Budget Director Percival F. Brundage at a secret session of the House Appropria tions Committee. After expressing his disappointment over the size of the 1958 budget, he said: "I would certainly hope we would be able to cut taxes. If we can hold our expenditures for a couple of years at even the pres ent level '$71.8 Ed. note), I think the expanding economy will per mit it." "You think," he was asked, "it is doubtful we can hold them to this level or not? You think if there is any change in the budget, it will be up instead of down?" "I am afraid of it," replied Brundage. "Yes." Tax Cull Ruled Out His astounding admission rules out tax cuts in the next few years. It means that industrial and busi ness activity must increase even to make possible a balanced bud get, whereas many economic ex perls look for a downturn lor the last six months of this year. In short, Brundage's off-lhe-record warning is far more pessimistic than the "hair curling" predictions of Humphrey and Herbert Hoover. To darken the outlook, the Ad ministration's military and diplo matic witnesses have assured Con gressional Committees that "We must continue foreign aid. mili tary and economic, for an indefin ite number of years." Every other nation, including our major Allies and the Soviet, is economizing, it seems, at Uncle Sam's expense. (Released bv McClure Newspaper Syndicttel DAVID LAWRENCE Action Now Will Help Halt Future Economic Reverses 11. I.AWItKNCK that there are More Bed Propaganda Soviet Hussia has proposed that the Big Four powers co operate in economic aid in the Middle East, maintain peace there by negotiations and otherwise keep hands off the tension racked area. If the Western powers agree, Hussia will do like wise and abandon military bases there. Soviet Minister Khepilnv told the Hussian supreme parli ment that such a six-point proposal had been handed to the ambassadors at the United Slates, British and French legations. The foreign minister siutl the most urgent Middle East ques tion now was "Ihe complete withdrawal of Israeli (roups from Egyptian territory." He said his Roveinmenl also supimiTs Kgvpfs "just demand for full compensation ol the damage caused" by the Krilish-FieiH'h-lsraeh invasion nf Egypt. Shepilov also lined Ins gmenunent up again wilh Cairo's demand that Egypt alone rnntrnl and operate the Suez Canal. He said "law and justice are wholly on Egypt's side." These proposals were held to be the Kremlin's answer In President Eisenhower's doctrine In stabilize the Middle East in which he offered military, and economic aid against Com munisl aggression. If requested by any country in the slragetic oil region. Like I tic Geneva peace proposals, this Is merely Kremlin propaganda for Soviet Hussia has never lived up to any agree ment, and it is so regarded by President Eisenlunver. As soon as America pulled out, the Russians would drive in, as they did in the Balkans, Baltics, t tic Far Fast, and now into the Middle East. !The Hussian proposal has been followed by demand that the United Nations acl on Ihe Soviet charges that Ihe I'iiiIimI States lias committed global aggression in outlining her Middle East program and In setting up bases in Western Europe, Turkey, Iran, Japan and Okinawa armed with atomic weapons. Hussia has made the same charges before, but not before the United Nations. Can you beat il? The instigator nf geno cides, purges and enslavement of a score of nations, seeks to penalize Ihe nation that safeguards other threatened nations from similar fates! G. P. Sassy Valentines Wli-SoM 1 1 . v JOUK FOSS, DULLES. JgB 3 K'tfo be. Cupid's -target Wffififah ffl A . Brings joy to any marv- iJtUilHk )s$ frm little icn ! rWX5VV rOlJ COULD USEA COULD I Ntvrirw&i Kit ABC, t$ Platoon "round you flung, O GROUP OF GUARUSMEN ' SPECIALLY TRAINED kt5 Wo uci eWrtn?ilMVnil07r)ATlFf tt Love neighbor (yousAy) (tJJSE OF FORCE li NOT RIGHT lV3nU, O'COUKC, IT'S )blM NEIGHBOR 'kWn.TBe SURE Sou will YlGHfl it feCff rJi i oM41iinkiouV?a6!jShot- Q WWM Ht It's OiL.nofe you, g 0" RefMArU THE OPEN FORUM Says Taxes Might Destroy Our Way of Life Ing and many that are not. Some times this latter condition is due to incompetent management and Inefficiency, but more often it is due to the cost factors over which neither laree nor small businesses hove any control. While the big businesses with a long record of earnings that they have put aside for times of stress are able to weather such storms, the smaller concerns are not so fortunate. A mere pittance in tax relief would- n t help them much. That's just a piece of political fakcry. Wnge Cost Mine Factor The biKKest single faclor that neither Iiurc nor small business can overcome is the twrsislrnl rise In wage costs. Congress con- venienuy overlooks it. The doc trine that every year labor must have an. advanced wage or else union leadership is not doing its job has taken hold to the extent that, unless something is done to stnumzo wages, there will he depression which will confirm all Ihe statements that recently have been made about "hair curling." Until wages arc stabilized, prices will not be stabilized. Un til wages and nriees nrn hnth stabilized, the purchasing power of me tiouar will not be stabilized money is like any other com modity when it grows scarce, it becomes more expensive. The fed eral government is using up many billions of dollars that ought nor mally to flow into productive en terprise. The public is lending the government vast sums and hence there is less and less money avail able for private enterprise. Con gress could cut Ihe budget and put an end to luxury spending, but it is afraid of political repercus sions. So the situation drills on without any remedy in sight. Contldrnre Dcllcnif Thing Confidence in Ihe monetary unit is a delicate thing. When the pub lic begins., lo see clearly the na ture of the deadlock between sound economics and unhealthy politics, the end result is a sense of frustration. Public opinion, however, is to day beginning to make itself felt. Congress is hearing from ha.-li home that labor monopolies have gone loo lar. mat money has be come too scarce, that public spending is too high and thai it s : :J M'l nu.im- III nr nsmr I placed on local communities and states ralher than on the federal government. The basic economy Is strong, and Ihe debate and discussion are useful In reversing the lutes of ir responsibility which in recent years have characterized the held of wages and prices and public spending. The most eloquent utterance in the Legislature so far was a simple question addressed to Governor Holmes by Hep. Wayne Giesy. How much money, he Inquired, does the Governor think should be budgeted and raised for the next (wo years? The Governor hasn't answerd the twice-asked question, t WASHINGTON - Will business be good? Are we headed for a re adjustment of some kind? What's the meaning of the talk about 'd e p r e s- sion" and of the decline in the stock market? These ques tions are being widely discussed and it s about the healthiest thing that has happened in a long while. Kur the theory no limits to what can be borrowed that not much attention need be given to paying hack public debt that wages can rise a substantial amount every year, nnd that prices enn go up lo meet rising costs and everything will be rosy just the same, is the very thing that leads to economic imbalance nnd general stress. System Too lltg The economic syslem is loo big to be controlled by any single de vice, either of credit or anything else. Bestriding the amount Hint can lie borrowed is not in nnd ol Itself a remedy. The success of ttie American system is based on a conliniinnce each year of healthy protils. This doesn I mean Dial the owners themselves become saturated with wealth as ttie radicals like to ar gue. It means that protils, when large, can lie set aside as surplus and new jobs can be created be cause the surplus can be used to manufacture plant nnd equipment needed to attain grealer efficiency. But profits lately have been coining down. East year saw the trend begin to decline. When lar ger companies find their costs so high that they cannot gel Ihe same rale of protils as before, it menus that they have In cut down on dividends to stockholders. And when dividends slart going off, the stocks themselves begin to be less atlractitc to buyers nnd the mar ket begins lo slide downward. Cnulil Mean Krndhislnirnt this divsn t necessarily mean depression or recession. It means read nisi ment. Business has to find Us capilal somehow. If il finds Ihe supply of oulside credit limited, il must slart building up credit hom ils surplus. Beprc sentnlive I'attuan of Arkansas, Denniciat. calls this "costless capital " Tins is illusory, Kor when business has lo dip into its resrrvi-s and ceases lo pay cus tomary du ulends. Ihe stockhold ers pay lor ttiat use of capital be-call1-!' Ihcy tire dt-pincd of divi dends ihcy might otherwise have giilicn-lhi- waccs of their iinesled capilal. The company, loorctner, lost-s ilie inicicsl il preuoiMy had recciwd when iineslmg Us sur- I plus. The iner all situation today de fies generalization Some business es are going ahead as usual. Oth ers feel Hie pinch of "light money" or reslricted credit. There is much talk ill Congress tilEllIT TO NO ONE about "small business. Lots of So far Ihe Multnomah count v committees show concern over itjviie investigation has brought and Inis of demagoguery Is heard crrdit on no one. except, perhaps, on Ihe subject 'there are manyithoe who started It. Sherman small businesses that are prosper-j County Journal. To the Editor: .While I am not as sharp on the subject of taxes as 1 should be I know that unless something is done to lower them they will even tually destroy our way of life. Going back perhaps twenty years, taxes were practically un heard of particularly to the per sons in the middle and lower class incomes. Today it is these same wage earners in these same in come groups that are paying the vast majority of tax revenue. It is also the persons in these groups that keep our economy healthy and our prosperity such as it is due to the fact the greater major ity of these persons spend their money as fast as they make it. Some (a large sum) spend it be fore they make it thereby result ing In heavy debt. The shocking trulh is many of these families have to go in debt to buy a needed appliance, a better car for neces sary transportation to and from work, needed repairs to their home, etc. while they pay hun dreds of dollars every year in Fed eral and State Income Taxes, per sonal property taxes, not to men tion all of the hidden taxes. I be lieve a survey would find a larger percentage of families pay more taxes yearly than the amount they go in debt yearly. High taxes are destroying the incentive and drive of our young people. They are loosing the urge to want lo make something of and for themselves because they know the harder they work to make a little .money the more taxes they pay and they wind up with nothing anyway. So why try? I have several families wanting to sell their homes because of higher personal property tax. They maintain it is cheaper to rent than own but seems Ihcy can't sell be cause renters are satisfied rent ing and the rest are in the same fix they arc in. It is time we elected politicians that speak, act, and work for the people. Politicians that spend our money like it was their own. H Is easy to spend some one else's money as long as they keep giv it to you to spend. It is time wt quit giving and demanded to know where what we gave has gone. Let's begin to practice a little economy in government. From our city through our federal. ' It is time we woke up and al tered our state tax structure so that businesses and industries M ill be encouraged instead of discour aged when they consider Oregon. Increased payrolls may help solve some of our unemployment. If so our unemployment and welfare funds would grow larger without seeking new forms of taxes to help increase them in size as fewer people would need assistance. Especially young, able bodied people who have the ability and the desire to provide for their fam ilies but not the job. Maybe then we could help our older and less fortunate citizens better. Would that be bad? Sincerely, LeRoy L. Laack - 4028 Earl Ave. Salem, Oregon HAL BOYLE Boyle Ends Vacation, Hound Do" Finally Bites Daughter ANDROS TOWN, Bahamas UV Looking back on a splendid two- week vacation here, 1 wonoeuu as we flew away wnat we woum remember most about it. The food that put extra pounds on us . . . the fish that got away ... the goombay music that makes calvpso letm nla Ihe " fa". - friendly native . . . the yachts we admired but had no desire to nivn . . thp niohls . . . IheF.r-r II nights ... the " sun, sand, sun ana star tan? No, none, I guess the most memorable thing was hte fact a dog bit our daughter. Dog Bit Daughter On three previous cruises I had successfully managed to keep her from throwing herself overboard Irvine to catch flying lish. But now, with her growing on four years old, I felt it was time for her to learn life has its bumps as well as milk bottles, and per haps I relaxed a bit. Here's what haDDened: We were strolling along, keeping out of the gravity bombing range nf Ihe coconut nalm tree ana feeling sorry for all our friends suffering the wintry rigors of New York City Terrier Stood Guard I saw ahead a black and white terrior standing guard at the green edge where the turf of his master's home touched the road. The dos was named Amos, Sometimes you can sense the hidden temper of a dog by his noslure as vou can that of strange person, before he begins to move, and I called sharply to Tracy, "slay away from the dog pie!" As a native came by and I turned to ask him a question, and in that second Tracy galloped to Amos and reached out her arms and. "Vine!" the deed was done Tracy reeled back yelling and holding one arm. Amos backed deeper toward his house, nervous, uncertain, tail down. A newly arrived British doctor, a veteran of the Tunisian cam paign, who undoubtedly had seen worse wounds, swobbed Tracy's purple bruise and bandaged it as she sobbed, Hes a bad dog'. My wife couldn't understand why neither I nor the doctor got excited. "The dog may have rabies," she insisted. She couldn't under stand my viewpoint, which was, that Amos had a pretty clear de defense. He hadn't nipped Tracy until she stepped off the road onto his boss' grass and grabbed at him. You can t fault anybody for loyalty. "What if you end up with i rabid child?" asked Frances. I do suspect I have one. For the very next day when we were out walking we saw Amos, some distance from home. As he started to crouch away, Tracy tried to run up and throw her arms around him again. "Don't you know he's a bad dog!" I asked, holding her. "He is not a Daa aoggie. Amos is a good doggie," she said, and then as my grip tightened on her and I refused to let her risk a second bite from Amos, she flung at me: "You're a bad man!" I wanted then to let her go and see if her stubborn love could win Amos. But I looked from her to Amos, and I know I couldn't be sure, because if Amos hurt her again I knew I would hurt him forever. So I held Tracy, warm and struggling and crying, "Let me go!." and felt for the first lime really the lonely responsibility of a parent trying to do his duty against the will of his child. And was Tracy wrong? "nly Amos really knows. Quotes From The News By UNITED PRESS LONDON: Britain's Defense Minister Duncan Sandys defending Britain's strategy of prevention of war instead of defense because of the dawn of an era of guided mis siles: "There is every reason to 1 e lieve that the Russians have been developing a much enlarged ver sion of the German V2 rocket, but with the enormous difference that it will of course carry a nucbar warhead.'' CLINTON, Tenn.: Clinton Ili ;h School Principal D. J. Brittain Jr. disclosing that Alfred Williams, a iJegro senior in the recently inte grated school, has been suspended for threatening a white boy with a knife: "Anybody who pulls a knife in this school will receive the same kind of punishment." "We Were Astonished . . . to know that so much en i tered into the conducting of S a funeral. HOWELL-EDWARDS FUNERAL HOME made many suggestions that had not even occurred to us." BEN MAXWELL War Effort Made News Back in '44 Feb. 14, 1944 Hradlinos pertaining to events in World War II were front page features in this issue of the Capi ta! Journal 13 years hro: Itus- sians near Peskov, Only 15 German planes reach London. Allies begin initiative along A n t i o beach head. Two U. boats sunk. ' AionKs warned J to save selves. Japan to face of- BKCK KVADKIf OKKC.OV Those who remember how care fully Oae Beck evaded Oregon when I here was n warrant oui for him in this state will not think it odd if he goes to Kurope now. Sherman Cminlv Journal. tensive. iU. S. armed forces in World War 11 n u m b e red lti. 112.5(16. Total jkA casualties were hkn m.xwi:u. i,07B.fi"4 with 407,828 dead, being deaths incurred in battle. Purchase of K bonds in Salem had reached $1,502.5, Chairman Jesse (iaid had announced. Chair man Gnrd had faith in attaining the goal fulfillment of $2,000,000 following a Million Dollar club broadcast scheduled from Salem high school. Gardner Knapp. chairman, had announced collection of 3M.000 pounds of waste paper in Marion ; '' county, lie was also looking for';V storage space lor six tons of tin cans, once moved and now re- ( quiring another site. I War food administration had urged the nation to increase the: use of potatoes throughout UH4 to consume a 194:1 surplus ans-' ing from Ihe largest crop in hus-j toiy. R. II. Baldock. stale highway engineer, had visualised the need for flight strips along state high ways to accomodate airplanes at the end of the war. Baldock point ed out that a collision between a gasless plane and a truck on a stale highway near Junhira had led him to this conclusion. A .scarcity cl 'automobile? during the war had brought forth this ! bargain in a Capital Journal clas- sified advertisement nf 1.1 years !ago. the only one among 10 nam ling a price for a used ear; A good 1 19JJ Chev. coupe, $215. fees . . . Refreshments . . . Gifts J HE TO THE PARTY M $ym,4h&fai ill III rmmr wvwz?n sm I! DOR AN APPLIANCE CO. IVy Hotpoint's jJi PMcw ' 42nd Anniversary & feSi clectroratna m Jin ,of '' " eniy pie tSSP ! X!ffi "'"9 "0 GIFT CERTI- ZBMJl : JLj"W!' iiPp0 FICATES, and one lucky visitor to our J Jp HOPf I TVT? ' may rteelr a free trip to Hawaii, f& VTWsTI --VtJV. 0,1 "Pen" Pai1. courtesy of HOT- J Hjj POINT. iskj Open Thurs....Fri.... Sot.. . . 8:30 A.M. 'til 10 P.M. 355 Center St. Phone. EM 3-3139