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Heppner Gazette Times, Thursday, December 29, 1949
Volume 66, Number 41
HAPPY
YEAR
.1.1 ..4
Social Security Tax
Increases One-Half
First of January
Employer, Employe
Advised Relative to
Extra Withholding
Hugh H. Earle, Collector of In
ternal Revenue, today reminded
employers and employees of the
Oregon district that the Federal
Insurance Contributions Act pro
vides for an Increase in the tax
rate under the act to one and
one-half percent on employees
and one and one-half percent on
employers, based on all taxable
wages paid on and after January
1, 1950.
Ever since the beginning of the
Social Security program, of which
these taxes are a part, these rates
have been one percent each on
employees and employers, and
Collector Earle called attention
to the change in order to prevent
confusion in preparing January
payrolls.
This change does not affect the
rates of income tax withholding
from wages, which are the same
as they were in 1949.
Employers were reminded, how.
ever, that new regulations will be
effective January 1 regarding the
depositing and reporting of both
the F.I.C.A. taxes and income tax
withheld from wages.
Starting with wages paid In
January, employers who are li
able for more than $100 of these
taxes In one month are required
to deposit them In either a Fed
eral Reserve bank or a commer
cial bank authorized to receive
such deposits for transmittal to
the Federal Reserve bank.
Deposits are required for taxes
resulting from wages paid In the
first and second month of each
quarter. Each such deposft should
be made not later than the 15th
day of the next month, but may
be made earlier if desired. Taxes
for the third month may be de
posited or paid with the quarterly
return.
Employers will be furnished
with blank copies of Treasury De
positary Receipt Form 450 to use
in making deposits. Employers
will fill out the receipt as a de
posit slip. After the form and re
mittance are received and check
ed by the Federal Reserve bank,
the deposit receipt will be valida
ted and mailed back to the em
ployer for attachment to his quar
terly return.
The year 1950 also will mark
the nationwide adoption of a
combined form for quarterly re
porting by employers of income
tax withheld and the employer
and employee F.I.C.A. taxes. The
new form, Form 941, and detailed
Instructions will be mailed to
employers late in March, In am
ple time for use In making the
return for the first quarter of the
year. This return, covering wages
paid in January, February and
March is due by April 30.
This type of form was tested In
the Maryland district for more
than a year and was found to ef.
feet substantial savings to both
collectors' offices and employers.
Large Lynx Killed
In Kahler Basin
While riding in Kahler Basin
looking after cattle one day last
week, Dick and Jay Griffith and
L. Van Marler Sr. spotted a band
of deer. They stopped to count
the animals and noticed a sud
den stir among them. Moving in
a little closer they discovered
what appeared to be a bobcat
stalking the deer, the cat was
shot and turned out to be a lynx.
Van Marter brought the lynx
carcass to Heppner and had a
picture taken of it. He said it
was about the biggest one he had
ever seen.
Cuests at the Henry Schwarz
homo over the week end were Mr.
and Mrs. Billy Schwarz and chil
dren from The Dalles. Another
guests here for a week is E. R.
Merrltt, who arrived Wednesday
from his home in California.
Two Suits Filed As
Result of Accident
Two suits were filed at Pendle
ton last week by Raley, Kilkenny
and Raley, Pendleton attorneys,
for two persons injured in an au
tomobile accident September 18
at the site of the Heppner Lum
her company plant on the Hepp
ner- Hepner Junction highway.
In one suit, according to the
East Oregonlan, L. Nichols asked
$911 special damages and $35,000
general damages of G. N. Peck,
claiming permanent Injuries, and
in the other, S. D. Cox asked $1,
221.50 special damagci and $7,500
general damagci ot Peck.
Mrs. Floyd Adams
Awarded First Prize
In Lighting Contest
First prize of $10 was awarded
to Mrs. Floyd N. Adams for her
entry in the outdoor Christmas
decoration contest sponsored by
the Jay Cee-Ettes. Mrs. Adams
decorated a fir tree in the yard
with multi-colored lights and
used evergreen branches and light)
in an arched effect over the porch
and doorway to the house. Conleyj
Lanham received second prize of)
$5 for his effectively decorated
doorway. Evergreen boughs and
lights were entwined around the!
door and at the top was placed a
large plastic Santa Claus face,;
aglow with light. Third prize of!
$2.50 was given to Miss Let a Hum
phrcys whose arrangement on
lights and greens over the largel
windows and porch of her homel
together with the brilliantly light,
ed tree In the yard made a beau
tiful picture.
Residents showed much inter
est in the contest and other dec
orations worthy of mention were
the girl and boy sklier under a
flood of light at the Orville Smith
home ;the gaily decorated gate
way to the Dick apartments and
the artistic arrangement of lights
and evergreen over the fronts of
the Henry Aiken and Oscar
George residences. One of the
most impressive displays was the
nativity scene at the St. Patrick's
church. This was made of minia
ture figurines and a small stable
and was correct to the most mi
nute detail.
Mr. and Mrs. Ambrose Chatiin
spent Christmas In Pendleton
with their son-in-law and daugh
ter. Mr. and Mrs. Char es Hodee
and son, Michael. Mrs. Hodge and
Michael returned to Hennner with
them Monday evening.
Mr. and Mrs. Herman Tarker
returned to their home In Pasco
Monday evening after spending
the week-end here with her par
ents, Mr .and Mrs. Clive Huston.
Mrs. Huston accompanied them
home and will stay until after
New Year's.
Misses Katherine Bisbee and
Esther Scott of Oregon City are
spending this week here with
Miss Bisbee's parents, Mr. and
Mrs. L. E. Bisbee.
Mrs. Mary Welch of Lexington
was shopping In Heppner Tues
day.
Mr. and Mrs. B. C. Forsythe of
lone and Mr. and Mrs. Jack For
sythe and children of Lexington
were guests of Mr. and Mrs. L.
Edwin Dick over Christmas.
Mrs. Vennlce Stiles is here from
Portland this week to spend the
holidays with her mother, Mrs.
Josie Jones. Mrs. Stiles Is em
ployed by the Civil Aeronautics
Authority since going to Portland
early In June.
Mr. and Mrs. Orrin W. Furlong
of Portland and Mr. and Mrs.
George N. Perry of Pendleton
were weekend guests of Mr. and
Mrs. J. C. Payne.
Mr. and Mrs. W. C. Rosewall
have returned from a vacation of
several days spent In various
places In California.
Christmas guests of Mr. and
Mrs. E. E. Gilliam were their son,
Rev. Jackson Gilliam and Mr. and
Mrs. Ed Clark of Hermiston. Rev.
Gilliam went to Spokane Monday
to spend the week with Mrs. Gil
liam and daughter, Anne Mere
dith, who have been visiting her
parents.
F. W. Turner motored to Port
(Continued on Page seven)
Medlock Draws Five
Years in State Prison
R. R. Medlock was sentenced to
serve five years in the state pen
itentiary when he appeared be
fore Judge Homer I. Walts Wed
nesday, December 21. Medlock
had been held on two counts but
the second charge was dropped
when he pled guilty to contribut
ing to the delinquency of a mi
nor. Robert Beach, held on a charge
of Issuing a check without funds
to cover same, was placed on pro.
batlon for one year.
Billy French appeared In Jus
lice court Wednesday morning of
this week on a reckless driving
count and Justice J. O. Ilager
fined him $100 and costs and sus
pended his driver's license for a
period of six months.
DEPUTY COLLECTOR COMING
Farmers of Morrow county
wishing assistance in making out
Form 1040ES, declaration of esll.
mated tax for calendar year 1949,
are advised that the services of a
deputy collector will be available
Tuesday, January 3 at the court
house in Heppner,
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1950 IN A NUTSHELL
GENERAL BUSINESS: Off 5- AUTOMOBILE MANUFACTURES: Off 15
NATIONAL INCOME: Off 5 BUILDING and CONSTRUCTION 7
FARM INCOME: Off 15 NATURAL GAS: Up 5
BITUMINOUS COAL: Up 5 FOREIGN TRADE: No change
ANTHRACITE: Off 5 AIRLINE PASSENGER MILES: Up 5
CRUDE OIL PRODUCTS: Up 5 MILITARY ACTIVITIES
STEEL OUTPUT: Off 5 INCLUDING AIRCRAFT: Up 20
Business
By ROGER W. BABSON
1. The total volume of busi
ness for 1950 will be less than
that of 1949, due primarily to the
unfortunate labor conflicts. Con
sidering that the innocent con
sumer will be the chief sufferer
and will be obliged to pay the
bills, it seems too bad that labor
troubles should upset the apple
cart. LABOR OUTLOOK
2. Even with all the threats,
there will be a few wage increas
es during 1950. On the other
hand, all labor negotiations take
the minds of both the employees
and the management off their re
gular business. However these
negotiations come out, they result
in a loss from the standpoint of
the country as a whole.
3. There will be fewer strikes
in 1950 than in 1949, but there
will not be fewer extended ne
gotiations which are very expen
sive In themselves.
4. The Taft-Hartley law will
continue to stand throughout
1950, although many schemes
for detourlng this law will be
devised.
5. The great drive against the
big companies will be for pen
sions and or for sick and other
benefits. These will probably be
helpful to the wageworkers and
may aid in ironing out the bus
iness cycle, but they will be paid
for by consumers.
6. It Is hoped that all parties
will begin to realize during 1950
that the real road to national
progress is through increasing
production and greater efficiency.
This is the bright light which we
see in the labor situation.
COMMODITY PRICES
7. Movements In commodity
prices during 1950 will vary with
different groups of Industries
and of products, but altogether
there will be a general lowering
during 1950.
8. We, therefore, advise going
easy on inventories. 1950 is a
time to get out of debt and stay
out of debt. Speculation In com
modities should be dlscourtged
In 1950.
9. We believe that the cost of
living index has turned down
for the present. The average for
1950 will be less than for 1949.
10. Practically all retail prices
will average less In 1950 than in
1949, notwithstanding the excess
of money mentioned under 27-28
and 29 below,
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RETAIL TRADE ($ Volume) : Off 3 to 10,
And Financial Outlook
FARM OUTLOOK
11. The total farm income for
1950 should be less than that of
1949, which means lower prices
on the average wheat, corn, pork,
poultry, eggs and certain dairy
products. Farmers should diver
sify more in 1950, get out of
debt and put their surplus money
into savings, in preparation for
the next crop failure.
12. The supply of certain
canned vegetables and fruits
(except citrus) should be great
er during 1950 than at the same
time during 1949. The prices of
these products should fall off,
barring some weather, insect or
blight catastrophe.
13. Poultry and dairy pro
ducts will especailly increase in
volume during 1950 with prices
averaging less than in 1949.
14. Farmers wil 1 continue to
work to hold present subsidies.
It is popular to criticize the vast
amount of crops which the gov
ernment owns or is making loans
on, but this surplus in storage
may be a great blessing when
the next crop failure or war
comes.
TAXES
15. The federal budget will be
increased during 1950 over that
for 1949.
16. Over-all federal taxes will
not be increased during 1950 and
there may even then be some
readjustments to encourage ven
ture capital. Moreover, some of
the nuisance taxes may be ellm
inated or reduced.
17. The long-term capital gains
tax of 25 percent will remain
unchanged.
18. There will be many Increas.
es in local and state taxes, and
more reaching for relief by sales
taxes or other forms of raising
needed funds.
RETAIL TRADE
19. Goods on counters will be
of better grade in 1950 than they
were in 1949.
20. Markdown sales will con
tinue during 1950 as consumer
spending slackens due to a de
cline in employment and other
factors.
21. The dollar value of all re
tail sales in 1950 will be moder
ately downward, and the unit
volume of retail sales will also
be less in 1950 than in 1949.
22. Less will be spent on new
buildings and equipment by
stores and factories during 1950.
FOREIGN TRADE
23. Our exports will bs down
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during 1953 and our imports will
be up ..uring 1950 comparing
both with 1949. This will partly
be accounted for by the devalua.
tlon of the English pound and
other foreign currencies.
24. Foreign credits will con
tinue to be granted during 1950,
but some of these will be direct
by American business firms and
investors. If our government will
get foreign governments to agree
that such investments will be ex
empt from any new tax or other
legislation by the foreign coun
try in which the investments are
made, considerable progress
would be noticeable along for
eign trade channels.
25. American interests will
have more competition from for
eign producers of raw materials
and of manufactured goods dur
ing 1950 than they had during
1949. This will benefit some
American concerns, but be harm
ful to others.
26. Fear of war with Russia
will continue during 1950. World
War III will come sometime; but
it will not start in 1950. Those in
large vulnerable cities should
use these years of peace to get
some small farm or country home
to which they can go in case of
war. Such places will be almost
unobtainable when war actually
comes.
DEFICIT FINANCING '
27. The supply of money will
be increased during 1950, but the
price of Government bonds will
not change much one way or
the other during 1950.
28. In addition to the anticipat.
ed Federal deficit the $3,000,000,.
000 being distributed as insur
ance refunds to veterans will be
mostly spent.
29. Congress will not change
the price of gold during 1950.
STOCK MARKET
30. Most stocks will work up
and down in about the same
range during 1950 as during 1949.
31. Stocks of companies with
assets mostly in natural resourc
es, known as Inflation stocks,
should have the greatest demand.
32. There will be more invest
ment buying for Income during
1950 and utilities and companies
making labor-saving machinery
may be more popular than other
Industrials or railroads.
33. The wisest investors will
keep a fair amount of their funds
liquid throughout 1950 pending
the great break in stock prices
which will come someday.
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For 1950
BONDS
34. High-grade taxable corpor
ate bonds bearing low coupon
rates should continue at about
the same prices during 1950, but
of course, they will sell for much
lower prices when money rates
increase.
35. 1950 will see a wither fad
ing off in certain tax-exempt
bonds due to the new Housing
Authority Obligations to be Is
sued during 1950.
36. The Federal Reserve will
continue during 1950 the same
general policy which it followed
in 1949.
37. The importance of diversi
fication will be given more at
tention in 1950 and wise investors
will watch their bond maturities
to see that they are either short
or systematically staggered.
REAL ESTATE
38. The city real estate outlook
is uncertain. It should continue to
hold firm throughout 1950 due to
less available rental space caus
ed by pulling down old structures
to save taxes and to provide park
ing spaces. Owing to high costs
and the fear of World War III,
there will be little Inclination to
build new city property. On the
other hand, the continual move
ment out of our large cities In
the interest of decentralization
may cause prices to soften.
39. There will continue to be a
fair demand during 1950 for sub
urban real estate with a shading
of prices for large places; but the
residential construction boom
should continue well into 1950. I
40. The demand for large com
mercial farm acreage will be less
during 1950; but small susten
ance farms, especially those lo
cated close to established com
munities, will hold up and .per
haps, increase in price.
41. There will be some decrease
during 1950 in Industrial and pri.
vate building. The cost of such
building will decline a little and
the quality of workmanship will
improve. There should be an in
crease during 1950 in publicly
financed building.
42. There will not be much
change in business rentals during
1950 but residential rents will av
erage higher in 1950. Only as
property owners are granted high
er rentals will there be more
houses built for rental purposes.
43. Mortgage Interest rates dur
ing 1950 will continue about the
same as during 1949.
44. The growth in Industrial
Better Than $500,000
Building Program Lot
Of Heppner In 1949
SRO Sign Needed
At School Program
Thursday Evening
Standing room was at a pre
mium as over 500 people crowded
onto the school auditorium to at
tend the annual Christmas pro
jgram presented by the Heppner
schools. Over 300 children took
(part in the presentation, includ
dng the high school band, high
school girls chorus, grade chorus
es, and the characters In the op
eretta, "Hansel and Gretel."
The operetta itself consisted of
three acts. The scene of act one
(centered in the home of Hansel
fend Gretel. Act two depicted a
Sorest scene where Hansel and
IGretel became lost Fir and pine
trees about the stage made a real
istic forest scene. The scene of act
three was the witch's home in
cluding the prison cage, the
witch's large oven as well as her
cookie and candy house. All end
ed well as the witch herself was
pushed into the oven in which
she intended to roast Hansel and
Gretel.
The principal characters in the
operetta were: Hansel, Paul Beck
et; Gretel, Mary Ruth Green; Fa
ther, Ronald Currin; Mother, Ger
aldine Carter; Witch, Dixie Mc
Allister; Sandmen Jackie Mishler,
Billie Monahan; Dewmen, Melvin
Olson, Jay D. Hudson; Cookie
children, Karen Pate, Billy Irby,
Other witches, angels, choruses,
o
Kindergarten Tots Do
'Stuff at Yule Party
Last Friday afternoon was red
letter day at the Kindergarten
when Mrs. Richard Meador ana
the five-year-olds entertained at
a Christmas party. The guest list
included mothers, grandmothers
aunts and a younger brother and
sister or so all highly apprecia
tive of the efforts of the small
fry who have attended the kin
dergarten class since September.
Some of their favorite stories
were dramatized with much verve
and at the conclusion of the pro.
gram of songs and stories, gifts
were exchanged.
The little folk are having a va
cation this week but will return
to their class at the Civic Center
Tuesday, January 3 at 1 p. m. All
children who are five years old
may be enrolled at any time.
o
JAY-CEE-ETTES THANK
OUTDOOR DECORATORS
We thank the many partici
ants in our Christmas outdoo.
:ecoration contest. There were si
nany outstanding entries tha
he judges must have found i
ifficult to select the winners.
Ve are sure that Santa Claus wa.
.elighted with Heppner's festivi
ppearance.
The Jay CEE-Ettes
pensions should help real estate
sales in Florida, California, New
lexico and Arizona.
GENERAL BUSINESS
45. Many business concern;
ind their operations sliding
own toward the break -ever.
oinL There will not be as much
nargln between costs and selling
prices during 1950 as during 1949.
Unemployment will gradually in
crease due to the installation of
labor saving machinery and other
causes.
46. Military preparedness will
continue to bolster general busi
ness and employment during 1950
but this is not a healthy devel
opment.
47. Excluding Cover n m e n t
owned commodities, the physical
stock piles of manufacturers will
remain about the same during
1950 as during 1949.
POLITICS
48. 1950 will be an election
year. The Republican party will
remain in the doghouse. The Ad
ministration will continue to talk
radically against Wall Street and
the so-called "Selfish Interests",
but at heart the Administration
will be fairly conservative. Its
bark will be far worse than its
bite.
49. The Administration will
continue to be sympathetic to or
ganized labor unless someone
like John L. Lewis goes too far.
In that event, such a man will be
made the whipping boy, but with
the consent of other prominent
labor leaders.
50. The Congressional elections
of 1950 will not change the polit
ical status of Congress to any
great extent.
Building permits to the amount
of $561,835.10 were issued in Hep
pner during 1949, according to O.
M. Yeager, building inspectorslnce
passage of the ordinance govern
ing building regulations. This to.
tal represents amounts certified
with the building inspector and
no doubt does not cover the en
tire amount invested in building
and repairs, since in the matter
of construction contract estimates
nowadays usually run far below
actual costs.
Chief among the building pro
jects, and taking up two-thirds
or more of the total, have been
the hospital and the Morrow
County Grain Growers elevator.
These account for $400,000 or
more, leaving approximately
$160,000 invested in new homes
and repair and remodeling Jobs.
Broken down, Yeager has estimat.
ed new homes, hospital, elevator
and business buildings at $517,
166.40 and repair and remodeling
jobs at $44,668,70, for a total of
$561,835.10.
The inspector states that dur
ing the past 12 months there
have been more new homes con
structed than during all of the
past 30 years. "All of our new
homes are of the latest type and
equal to the best homes in larger
cities," he said. "I have followed
the building trade for years,
starting in this very city about
50 years ago, and am in a posi
tion to compare the type of
homes being built now with some
of those built years ago, and the
changes have been very good.
All the new homes that have been
and are being built have the lat
est labor saving devices, and
more time and thought have gone
into the building of practical, liv
able and beautiful homes. -
Aside from residence and build,
ing construction, the city has
spent several thousand dollars on
new bridges, street repairs and
other improvements, much of it
made necessary by the damage
done in the flood last February.
Principal items of improvement
along Main street during the year
have been the redecorating of
Hotel Heppner and construction
of a new cleaning plant for W. C.
Collins. Mr. Yeager calls atten
tion to the face lifting that has
taken place on Main street with
in the past two or three years,
giving the town a modern ap
pearance.
Looking ahead, but not with the
expectation that much will be
done about either project in 1950,
the inspector calls attention to
.he need of a sewer system and
additional school facilities. As the
town grows, both of these im
provements will become more es
sential and the city is only wait-
ing for approval of the proposed
sewer bonds to start proceedings
or holding an election. Likewise
the school board Is giving much
thought to an additional school
building, but there is little like
lihood that actual construction
will be a matter of the immediate
future.
'Already I have advance infor
mation relative to new construe-
.ion work to be started early in
1950, such as new homes, busi
ness buildings and others which
I am not at liberty to mention
just now, that will run to almost
$250,000," Yeager concluded.
HONOR ROLL FOR
SECOND SIX WEEKS
Nine Heppner high school stu
dents earned place on the schol
astic honor roll for the second
six weeks period. They are Roger
Palmer, Marjorie Pierson, Jack
Sumner, Ronald Taylor, Keith
Connor, Jim Smith, Marion Green,
Mary Gundcrson and Jim Or
wick. MUSTANGS BEAT YAMHILL
Ten lads from Heppner high
school are on a vacation trip this
week and are playing basketball
in far away places. Tuesday night
they lost to Clatskanie. They won
from Yamhill Wednesday night.
Their schedule includes Scap-
poose Thursday night, Ranler
Friday night and Warrenton Sat
urday night.
Coach Vernon Bohles accom
panied the boys.
DRIVE CAREFULLY!
Governor Douglas McKay and
Secretary of State Earl T. Newbry
today joined In an appeal to
motorists to use extra caution to
avoid needless death and Injury
in traffic over the New Year's
holiday.
"Our police officers Hro always
on the alert for the reckless or
Intoxicated driver," Governor Mc
Kay pointed out. "But experience
has shown It is the occasional
and unforeseeable chance-taking
of the average driver which caun.
m most of our accidents. "