Page Six
STATE
CAPITAL
NEWS
o S. T. C. Dilemma
Uncle Sam Grabs
o Per Capita Taxes
By A. L. LINDBECK
Salem The state tax commission
is in a dilemma.
The legislative act imposing a tax
of two cents a package on cigarettes
makes the commission responsible
for collection of the tax. Before the
commission can begin collecting the
tax a lot of preliminary work re
mains to be done. A staff must be
employed and trained. Stamps must
be designed and printed some 50,
000,000 for a starter. All of this
costs money. But the legislature
which dumped this responsibility in
the lap of the tax commission made
no appropriation to pay any ex
pense that might be incurred by the
commission in connection with the
tax act. This is to be taken out of
revenues from the tax itself.
The tax act would ordinarily be
come effective on June 14. There
fore the commission should be in a
position to begin collecting the tax
on that date. But the retail mer
chants are circulating referendum
petitions attacking the measure. If
the petitions are completed, as seems
probable, the act will go before the
voters at the general election in
November, 1943. At that time should
the decision be against the act there
will be no tax and consequently no
revenues from which to pay any ex
penses the commission might incur
in connection with its administration.
And there you have the problem
that is confronting the commission.
II the necessary arrangements are
not made in advance the commission
will not be prepared to collect the
tax on June 14 in the event the
referendum fails. If it does prepare
and the referendum succeeds there
will be no revenue from which to
pay the cost of its preparations.
Under the circumstances the com
mission is determined to sit tight
and await developments before
making any move to incur an ex
pense it might not be able to meet.
There is no immediate prospect
of the name "Oregon" being given
to one of Uncle Sam's new battle
wagons so long as the old "Oregon"
now at rest in Portland harbor is
carried on the navy lists Secretary
of State Snell was informed this
'week in a letter from the navy de
partment. Of the 17 new battleships
authorized by Congressmen four are
still unnamed.
Uncle Sam reached into Oregon's
official family to grab off two more
members this week. Wallace Whar
ton, member of the state tax com
mission and a lieutenant-commander
in the naval reserve, has been
ordered to duty with the navy de
partment in the national capital.
Sigfrid Unander, private secrtary to
Governor Sprague, was ordered to
report for duty with the army at
Fort Lewis, Washington. Unander
is a lieutenant in the army reserves.
This, incidentally, is the second sec
retary Governor Sprague has lost
to the army since mobilization of
the nation's fighting forces started
last September. Cecil Edwards, the
first secretary, was a captain in the
Oregon national guard at the time
of its mobilization and is now on
duty with the Oregon troops at
Camp Murray. The governor has
said that no attempt will be made to
fill the vacancy in his staff for the
time being. The secretarial work will
be carried on by David Eccles, his
executive secretary and budget di
rector, and Mrs. Helen Webster Beel
ar, his assistant secretary.
Hundreds of workers from other
states are flocking to Oregon attrac
ted by thep rospect of jobs in defense
industries, according to the Unem
ployment compensation commission.
While the number of applications
for benefit payments from these out-of-state
workers has shown a sub
stantial increase the number of Ore
gon claimants for jobless insurance
during the first three months of 1941
was only 30,538 compared to 43,046
for the same period a year ago.
C. H. Gram, state labor commis
sioner, this week announced the can
mer
cellation of the licenses under which
125 insurance companies have been
serving as deputies of the labor bu
reau in the inspection of boilers
and elevators.
In explanation of his move Gram
said that the arrangement was found
to be very unsatisfactory. In many
instances, Gram said, several in
surance companies had issued pol
icies against the same elevator. This
resulted in duplicating inspections
and conflicting reports which could
only be reconciled by a separate in
spection by an employe of the bu
reau of labor.
In taking over all of the inspection
work into his own department Gram
said that he was adding only three
more inspectors to his staff of field
men.
The interim appointment of Earl
B. Day of Medford as a member of
the state tax commission to succeed
Wallace Wharton, called into mili
tary service as a naval reserve of
ficer, is the first to be made under
the terms of an act of the 1941 legis
lature which is designed to protect
the jobs of public officials and em
ployees who are called by Uncle
Sam. Just how far this act will pro
tect Wharton in his post as a tax
commissioner is problematical but
it is understood that the protection
extends only to his present term
which expires in December, 1942.
Day who took over his new duties
this week is a former county judge
of Jackson county, served two terms
in the state legislature as represen
tative from Jackson county and has
long been interested in tax problems.
Oregon's per capita tax contribu
tion toward the support of state and
local government is well below the
national average as revealed in a
report of the federal census bureau
just released. According to this re
port the average annual cost of
state and local government the na
tion over is approximately $70 per
capita. Here in Oregon tax contribu
tions toward the cost of state and
local government averages only $64
per capita. This includes all types
of taxes, advalorem, income, gasoline,
automobile, inheritance, gift and city
license fees. The per capita state and
local debt burden here in Oregon
also shows up well in comparison
with that of other states. While the
average for the nation over is ap
proximately $154 per capita here in
Oregon the net debt of state and
local governments averages only $105
per capita. While this debt burden
increased by 3.4 per cent taking the
nation as a whole, but not including
the federal debt, in Oregon the state
and local governments reduced this
load by approximately 38 per cent
in the period from 1932 to 1940.
More than a score of architects
have applied to the Board of Control
for the privilege of preparing the
plans for the new treatment hospital
to be constructed at the state hos
pital. The board has indicated that
actual construction work on the new
building will probably be delayed
for several months in the hope that
lumber and labor costs may decline
from their present high level.
Plans for the administration of the
new hospital fund created by the
last legislature were discussed at a
conference here this week attended
by represntatives of a number of
hospitals and members of the Indus
trial Accident commission. This fund
will be created out of an additional
50 cent charge to be added to the
cost of motor vehicle operator's li
censes and is to be used in reim
bursing hospitals for the care of in
digent victims of motor vehicle ac
cidents. It is estimated that the ad
ditional charge wil produce approxi
mately $125,000 a year.
NOTICE TO CREDITORS
Notice is hereby given that the
undersigned was duly appointed by
the County Court of the State of
Oregon for Morrow County, admin
istrator of the estate of William T.
Craig, deceased, and all persons hav
ing claims against the estate of
said deceased are hereby required
to present the same to the under
signed administrator at his office in
Heppner, Oregon, with proper vou
chers duly verified, within six
months from the date hereof.
Dated and first published this 3rd
day of April, 194L
JOS. J. NYS, Administrator.
Gazette Times, Heppner,
Washington, D. C, April 24. Two
plans for financing the war (nation
al defense, if you prefer) are under
way. One is taxes, the other sale
of defense stamps and defense
bonds. Regarding taxes, the trea
sury wishes to raise an additional
3.5 billion dollars next year on this
year's income and tax everything
that will bring in a dollar to the
treasury. The sale of defense stamps
and bonds starts next Thursday, May
1, and will also help pay the heavy
burden. The defense financing will
come voluntarily; the income and
other new taxes will be obligatory.
The American people are in for a
long hard road, which will zip a
large part of their pocketbook.
Postoffices, banks and all sorts of
stores and establishments will place
on sale May 1 the defense stamps
and bonds. The stamps are in de
nominations of 10, 25 and 50 cents,
$1 and $5. They bear no interest.
For 75 defense stamps, at 25 cents
each a bond can be had valued, at
$18.75 and after 10 years this bond
will be worth $25. For those who
wish to accumulate a large amount
of bonds the treasury is providing
series F and G. These have a 12-
year maturity and pay 2.5 percent
interest. Also the revenue from
these bonds is taxable.
For higher denominations of the
stamps a book will be given to hold
them. The 10-cent denomination
receives no cash consideration, for
world war No. 1 taught the trea
sury a lesson the small stamps are
lost and thereafter become a clear
profit.
Two weeks ago the ways and
means committee dedcided 1.5 bil
lion of additional taxes would not
meet requirements, but the treasury
has since submitted a program to
raise 3.5 billion. Under present plans
there is scarcely a wage-earner,
man or woman, who will not have
to pay an income tax in 1942 on
1941 income. For years thousands of
residents of Oregon and Washington
have not had to pay a cent to the
internal revenue department because
with exemption for married people,
exemptions for children and depen
dents, these deductible items were
so large that there was no net in
come on which to pay. The new
income tax bill will remedy that.
The income base will be broadened
by lower exemptions and most of
those who escaped paying taxes in
the past must now come forward.
If the bill adopted is as drastic as
contemplated farm hands, in many
instances, will pay a tax, and crafts
men must pay because their annual
income will bring them into the
contributing class, thanks to steady
employment and high wages.
Most Americans receive an an
nual income of less than $3,000 and
it is from this class that the treasury
expects its chief support. The the
ory that the rich can pay all taxes
has been exploded. There are not
enough rich people; and the govern
ment hits them heavily. Corporations
with defense orders, from the big
fellows to the little ones will be
soaked with excess taxes until there
will be no profiteering. This is a
principal reason why the steel com
panies, threatened with strikes, up
ped wages, knowing they may as
well give more to the workers be
cause, otherwise, Uncle Sam would
take it away in taxes next year.
A plan is under consideration to
have all employers deduct and put
aside for the employes a percentage
of their wages. It would be a pay
roll tax in addition to other payroll
taxes. Purpose of this is to enable
workers to build up a reserve for
the time when industry takes a tail
spin when the excitement andi
shooting are over; give them some
thing to live on instead of looking
to the federal government for re
Oregon
lief. The government knows that
the average wage-earner, regardless
of 'his paycheck, spends his money
as fast as he gets it, with the result
that he is stone-broke when his em
ployment ends. Realizing that the
habits of a people cannot be chang
ed, the government is trying to de
vise a method of saving part of the
worker's income for him, and this
may be accomplished by a tax or
hold-back on the payroll. Anyway,
' taxes will be so heavy from now on
that practically everyone must have
a few dollars to settle with the in
ternal revenue department. This
necessitates saving.
Movies, liquor, tobacco, beauty
aids the long list of items of food,
fun and clothing will carry a tax.
It is the theory of the administra
tion that with high wages the im
position of substantial taxes will
prevent the cost of living getting
out of hand. The tax collector steps
in before the nation goes on a buy
ing splurge.
The administration dislikes a sales
tax; doesn't like the name, but in
tends attaining the same objective
tax money by calling it a manufac
turers excise tax. But regardless of
the name or how it is collected, the
American citizen will pay. Much of
the tax load could be passed on to
the next and the next generation,
but the best opinion in congress is
that the people now should carry as
much of the load as possible pay
as you go and borrow the balance.
The entire economics of the United
States is due for a severe jolt, and
life isn't going to be what it was in
the "good old days."
NOTICE OF SALE OF COUNTY
PROPERTY
By virtue of an ORDER OF THE
COUNTY COURT, dated April 23,
1941, I am authorized and directed
to ad vertise and sell at public auction
at not less than the minimum price
herein set forth:
Lot 5 in Block 1 of Cluffs
Addition to the City of lone,
Oregon, for the minimum price
of $10.00 cash.
The N of SWy4, SWV4 of
NWV4 of Section 31, Township
2 North, Range 24 East of Wil
lamette Meridian for the mini
mum price of $1.00 per acre, 20
percent down and balance on
contract.
THEREFORE, I will on the 24th
day of May, 1941, at the hour of
2:00 P. M., at the front door xf the
Court House in Heppner, Oregon,
sell said property to the highest and
best bidder.
C. J. D. BAUMAN,- Sheriff,
Morrow County, Oregon.
Professional
Directory
Maternity Home
Mrs. Lillie Aiken
Phone 664 P. 0. Box 142
Heppner, Oregon
Phelps Funeral Home
Ambulance Service
Trained Lady Assistant
Phone 1332
Heppner, Ore.
NEW AUTO POLICY
Bodily Injury & Property Damage
Class A $13.60 Class B $17.00
See us before financing your
next automobile.
F. W. TURNER & CO.
Heppner City Council
Meets First Monday Each Month
Citizens having matters for dis
cussion, please bring before
the CounciL
J. O. TURNER, Mayor
GLENN Y. WELLS
ATTORNEY AT LAW
ATwater 4884
535 MEAD BUILDING
5th at Washington
PORTLAND. OREGON
Thursday, April 24, 1941
J. 0. Turner
ATTORNEY AT LAW
Phone 173
Hotel Heppner Building
HEPPNER, ORE.
A. D. McMurdo, M. D.
PHYSICIAN & SURGEON
Trained None Asiiitant
Office in Masonic Building
Heppner, Oregon
Heppner
Abstract Co.
J. LOGIE RICHARDSON. Mgr.
BATES SEASONABLE
Roberts Building Heppner, On.
P. W. Mahoney
ATTORNEY AT LAW
OENEBAXi INSURANCE
Heppner Hotel Building
Willow St. Entrance
J. 0. Peterson
LatMt Jewelry and Gift Goods
Watcbei - Clocks . Diamonds
Expert Watch and Jewelry
Repairing
Heppner, Oregon
Vawter Parker
ATTORNEY-AT-LAW
First National Bank Building
Dr. Richard C. Lawrence
DENTIST
X-Ray and Extraction by Gas
First National Bank Bldg.
Phone 562 Heppner, Oregon
Dr. L. D. Tibbies
OSTEOPATHIC
Physician & Surgeon
FIRST NATIONAL BANK BLDG.
Rec. Phone 1162 Office Phone 492
HEPPNER, OREGON
Jos. J. Nys .
ATTORNEY AT LAW
Peters Building, Willow Street
Heppner, Oregon
V. R. Runnion
AUCTIONEER
Farm Sales and Livestock a Specialty
405 Jones Street, Heppner, Ore.
Phone 452
MAKE DATES AT MY EXPENSE
Morrow County
Abstract & Title Co.
INC.
ABSTRACTS OF TITLE
TITLE INSURANCE
Office in New Peters Building
Peterson & Peterson
ATTORNEYS AT LAW
U. S. National Bank Building
PENDLETON, OREGON
Practice in State and Federal Courts
Real Estate
General Line of Insurance and
Bonds
W. M. EUBANKS
Notary Puhllo
Phone 62 lone, Ore.
M. L. CASE G. E. NIKANDER
Directors of
Funerals
862 Phones 262