Image provided by: Morrow County Museum; Heppner, OR
About Heppner gazette-times. (Heppner, Or.) 1925-current | View Entire Issue (May 18, 1967)
2 HEPPNER GAZETTE THE W GAZETTE-TIMES Heppner. Oregon 97836 Phone 676-9228 MORROW COUNTY'S NEWSPAPER The Heppner Ga2ette established March 30, 1SS3. The Hoppner Times established November IS. 1S97. Consolidated February 15, 1912. NEWSFAMt USHIIt SOCIATION WESLET A. SHERMAN HELEN E, SHERMAN ROD (SPIKE) PARDEE Advertising Manager Photographer MARION ABRAMS Society Circulation JIM SHERMAN Pressman Office Hours: 8 a.m. to 6 p.m., Monday through Friday; 9 am until noon Saturday. Subscription Rates: $450 Year. Single Copy 10 Cents. Published Everv Thursday and Entered at the Post Office at Heppner, Oregon, as Second Class Matter. Join Kids in Clean-up! Once again Heppner High school students are showing adults the way! They are going to be out In force Friday afternoon to participate in a citywide clean-up, and the town will sparkle when they are through. They Invite the public at large to get out trash and de bris for them to pick up on curbs. This is a fine gesture and should motivate many to clean vacant lots, take debris out of their yards and garages, and take other steps to be In the swing of spring. After all, it isn't every day that someone offers to cart your trash away for nothing. With this offer by the students, the adult population should fall to with enthusiasm, demon strate pride in the home town, and give it a fresh look. City crews are already at work sweeping streets and doing their part Everyone pitch in so we can show what a nice clean place Heppner is. Sales Tax Collection Costs The small retailer in Oregon, without much organization to act as a collective voice, tends to suffer in silence when he is in an economic pinch. He has no lobby in the legislat ure, and he has no legislative counsel nor public relations representative to wave the banner for his cause. With a sales tax vote looming, though, he is probably aware of some of the problems he faces if the tax should be approved, and he probably will be inclined to cast his vote against it. Consumers who buy his goods should also be aware of some of the implications that they will face. The state will have to set up a rather expensive system for its collection of the sales tax, which Is only part of the cost involved. Let's look at the costs that the retailer will te required to pay. The Association of Oregon Industries has made a rather detailed study of these costs. It quotes a study made in Ohio by -Ohio State University showing that retailers' cost of collecting sales taxes varies from 1.23 of the amount col lected for department stores to 10.77 for food 'stores. Food stores have a particular burden where food and drug items are exempt in the sales tax for the simple reason that, while many food items are not taxed, dozens of items stock ed in markets are taxed. For instance, when a woman brings a cart to the check stand she may have sugar, cake mix, canned goods, soap, candy bars, paper towels, a paring knife, a loaf of bread and some chewing gum in the cart. The clerK has to figure out which are taxed and which are not. The candy bars would not be taxed, nor would the towels, the knife or the gum, and probably not the soap. But can you Imagine the confusion this would entail and the time it would consume in deciding? Among the costs that AOI lists, which the retailer must pay, are: Costs for sales clerk to process tax transactions on the sales floor; supervisor assistance including special hand ling of customers with special exemption problems; costs of training clerks in sales tax procedures: accounting costs In computing taxes, accumulating data required for returns, re cording exemption data and preparing returns; costs of tax audits, special printing, special equipment costs and other items. The report points out that one major chain has estimated it will cost $280,000 merely to adjust all its cash registers to record the sales tax. Many retailers would have to purchase new machines or convert old ones. Suppose a store has a gross volume of $100,000 on tax able items per year (and this would be a small one). If the sales tax were 3, the total for the year would be $3,000. If costs to collect it were 10, that store would have to pay $300 additional. This means an extra sales tax cost to the owner of this business. Bear in mind that he also pays 3 on all the consumer items he buys himself. Other things to consider on how the sales tax might af fect the retailer, as pointed out by the AOI: New products of a borderline nature may be considered exempt by the retailer, who may later find he Is expected to pay taxes on them which he did not collect. Line of demarcation between "meal" and "food" is par ticularly troublesome, particularly as sold by drive-ins. Al so confusing are ready-to-eat items sold in delicatessens and many supermarkets and the taxable status of dietary meals. Many retailers would find it difficult to maintain correct records of sales of taxable and exempt food commodities. Because et a tendency to overstate the exemption, they would lose sales tax revenue. Now, the state bill may provide some reimbursement on collection costs. The House proposal was to allow retailers reimbursement for their collection costs in the form of 1 discount on their first $500,000 of tax collected per year. Thus, if a retailer had sales of $100,000, he would collect $3,000 in taxes, and his discount of 1H would allow him to retain $45. This would help, but in most instances it would not come close to covering the cost to the retailer. The AOI points out that "breakage" within the tax brack ets is sometimes miscontrued in trying to show that retailers "make money" on sales taxes because the tax on sales under $1 does not always represent true 3. "Such arguments fail to recognize that the retailer is liable for 3 on all sales, even on those below the effective taxable rate," the AOI report states. "For example, if he sells hundreds of items at 10c apiece, he would owe the state 3 on these sales even though he collected no tax. And, while the penny tax on a 15c item is substantially over 3, it is equally true that the penny tax on a 42c item would be significantly below 3. A retailer selling a majority of 42c items, or a majority of items priced over $1 but below the effective 4c tax rate ($1.14 in proposed Oregon law) would not collect the true 3 necessary to cover his liabil ity." Many small retailers are Just not in a position to cope with the nuisance and costs with which a sales tax would burden them. It would seem that their only "out" would be to raise price of merchandise enough to protect them, so the consumer might be faced with not only paying the tax but a price hike, too. - TIMES. Thursday. Mar 18. 1967 HEPPNER NATIONAL NEWSPAPER Q Asc8T,7N EDITOR AND PUBLISHER ASSOCIATE PUBLISHER ARNOLD RAYMOND Shop Foreman Printer REGGIE PASCAL Linotype Operator RANDY STTLLMAN Apprentice Chaff and Wes Sherman RESIGNATION of Pave Potter as school superinten dent leaves a big spot to fill in the county school system. During the past three vears he has worked unceasingly (or the Rood of the district and for the edu cation of children here. It has been a strenuous time, with the controversy and prob lems on the Riverside school and other Important issues fac ine the district. But during Supt. Potter's relatively short time here, fine strides have been made in the district so that the post -consolidation turmoil has tempered, communities are working together and schools are evidencing excellent educa tional programs. During the time Potter has been in the county, the district budget has never failed to pass at its first presentation to the public. This is a credit to his sound Judgment as well as to the budget committees and the district directors. This paper has appreciated Dave Potter's fine cooperation. He has never evaded a ques tion, never sought to suppress any Information, and has gone out of his way to get Informa tion to the public. This has made our community public re lations task much easier. We have admired the way he continued his arduous duties, with the great amount of trav eling and the many meetings to be attended, when he was beset with the health problem that he has. As he prepares to leave her a few months hence, we express the best wishes of the Morrow county community he has serv ed. The foremost hope is that he regains full and comDlete health. Morrow county schools are much the better because Dave Potter served them for three years. ONE HAWKEYE camera is cith- er back to its Portland owner or on the way. And so, a mi nor diplomatic problem of the Eighth Grade tour is brought to a happy conclusion. As report ed last week, one of the touring 8th graders lost his dad's cam era on the tour and was feeling kind of low about it when he headed for home. He thought he left it on the bus (in fact, was sure) of it when the tpur was at the Lind say place. But Mrs. Pat (Karen) Cuts forth called after the paper was out last week to report that her children had found a camera at the end of the airstrip at the Cutsforth place. This apparent ly was the 8th grader's camera. Karen had read about it in Chaff and Chatter. So now, with only a strap broken and otherwise undam aged, the camera has gone back to the Matt Hughes', the u couple, and they have sent It back to Portland. HERE'S SOMETHING you Just have to know: About one out of eight Amer icans snore. This means something like 25 million snorers, women as of ten as men. The assorted hisses, gurgles, buzzes, snorts and raspings of the snoring nuisance hold the seeds for the ruination of an ostensibly happy marri a g e," says the American Medical As sociation. "Many married coup les find it necessary to set up a schedule wherein one spouse tries to precede the other in sleep. Other couples proceed to separate rooms and possibly ev en the divorce courts." The news release suggests that if there is a chronic snorer in your family, he should go to the family physician. But it doesn't seem very confident about helping because it winds up, "If your doctor cannot help, the listener can wear earplugs, when everything else fails." The thing we can't under stand is why some genius has not recorded these various hiss es, gurgles, buzzes, snorts and raspings and combine them in some discordant symphony. At this time of surrealist paintings, beatnik music and aboriginal dances, a guy ought to be able to sell a million records of the result WHEN ALEXANDER Graham Bell patented his first crude telephone in 1876, he really started something. Now 91 years later the 100,000,000th telephone has been installed in the United States. Pacific Northwest Bell sends along this bit of information to commemorate the event locally: "The Heppner exchange was established in August, 1898. In November, 1952, when the 50 millionth telephone was being installed somewhere in the United States, there were 639 telephones in Heppner. At the same time, there were some 490, 400 phones in Oregon. While the 100,000,000th tele phone was being connected this month, the total count of phones in Heppner was approaching 1,000. The total number of phones in Oregon at the pres ent time (PNB plus Independ ent) is about 960,000." And, do you know that the present G-T office was formerly the telephone exchange in Heppner? (Say, maybe that's why we keep hearing bells all day long when we get rum-dum on press day!). THE PHONE RANG the other day, and it was John Buchner, editor of the La Grande Observer. Chatter "We're hiring your basketball coach." he said, "and we want ed to get a little more Informa tion about him." This took us a bit aback be cause no one asked Heppner Ites if he could take our Coach dough. "Yes," said John. "Ills name is Pasco Arrltola, isn't It?" Then we saw the light and breathed easier. We told John he somehow had gotten the Shermans who run the paper In Morrow county mixed up with Moro In Sher man county, and that Pasco Ar rltola was coach at Sherman county high. Bob Clough came In shortly af ter and grinned when we told h.m. "No, you can't get rid of me that easy." he said. We felt good about that. TO THE EDITOR. For No New Taxes To the Editor: Should Oregon pass the sales tax proposal which originated with the Republicans In the House of Representatives? Will w provide tax relief bv raising taxes $250 million dollars net for the upcoming two year state budget period? Should we tax consumers to provide relief to all property owners. Summaries of the various tax "plans" vary from: (1) the no-new-tax position, which I fa vor, (2) through Governor Mc- Call's plan to raise less than 590 million (3) to the high-tax House plan to raise $250 mil lion plus millions of dollars more to pay the added cost of collecting this new tax. In 1963 65 our state general fund budget was $368 million. Just four years later 1967-69 we can spend, without new tax es $5S0 million under the re vised revenue estimates (Gover nor Hatfield estimated that $610 million would bo available last December.) With this kind of increase In existing revenues, and with on ly $30 to $40 million reduction in the increase in revenue esti mates what is the purpose of a $250 million increase? The answer is to shift taxes from one group to another, not to reduce taxes. And schools are to take the blame i for this stupendous tax Increase, raising jieaily as much new tax money us all Oregon ians currently pay to the state as personal income taxes. What an irony that would be. Back in the '63-65 budget we gave about 35 of our total state general rund "pie" to basic school sup port. But now, with the gener al fund revenue greatly increas ed, the Republican-controlled Ways and Means Committee pro poses to put only 27 of the state's current revenue into ba sic school support. Since schools create the de mand for much more than half of the property taxes statewide, this legislature's withholding of available funds increases prop erty taxes and invites defeat of local school elections. In addition the gross proper ty tax relief which the average consumer would provide by the 3 sales tax to the 10 highest property taxpayers In your county and the 14 largest in the state are shown by the tables enclosed. It seems to me that the school children of Oregon are being held hostage and the ransom is a $250 million unneeded sales tax. Great increases In basic school support could be made without new taxes and without starving existing programs. Or $100 of property tax relief could be given to each homeowner in Oregon. Either of these or a combina tion of the best features of both could be done without new tax es. Edward N. Fadely, Eugene State Senator For Senate Bill 536 To the Editor: The citizens of Oregon, hund reds of thousands of whom are customers of First National Bank of Oregon, should be ap prised of the facts about Bank Amerieard. Recently published criticism of the BankAmericard system paints an unfair picture. We studied various credit cards for more than seven years before deciding that First Na tional should and could offer a program. We felt that the peo ple of Oregon wanted this new service. The facts support our decis ion. Of First National's 200,000 card holders, more than 45,000 have used their cards to purch ase more than $5,000,000 worth of goods and services from Ore gon businesses. Merchants In the state have benefited by an additional $500,000 from out-of-state cardholders. The average payment by mer chants is between 3 and 3.5 per cent of the gross amount charged on BankAmericard. Un der the credit card program, however, the merchant elimin ates the costs of maintaining a credit department. The bank pays for credit investigations, handling and billing, collec tions and credit losses. In ad dition, the merchant receives Immediate cash from the bank, What's New . . . From Salem By REP. IRVIN MANN, JR. The Senate Taxation Commit , toe lias worked Mcadilv for sev- i oral weeks oil Hie proposed , property tax limitation mea-ine and a sales tax to fund that limitation. My peisonal eotuvvn with tin' activities of the Senate and I think that I am not alone with this concern, among the met" hers of the House -Is that the Senate will change the rigid property tax limitations Impos ed bv HJR 3. If this Is done, 1 feel that property tax relief will be Impaired, and we may not be Justified In passing any kind of a tax bill for additional rev enue in this session. At the same time, tl these property tax limits are not lm posed and a tax Is not adopted to fund the local governments from the state level at this ses sion, I am convinced that It will result In the Governor's being absolutely required to call a special session. I think that probably the most far-reaching bill that we have considered outside of the area of property tax limitation and taxation Is the constitution al revision bill which is now being considered by a House and Senate conference commit tee. I have Indicated In earlier columns that I think this Is a very good bill with the excep tion of Its ruling out the elec tion of the State Treasurer and consequent destruction of the Board of Control. The House has passed a bill allowing teachers and other public employees to participate in politics and has passed a bill to allow annual legislative ses sions and to have single-member legislative districts. The House has rejected a res olutlon which would have dir ected the Board of Higher Edu cation to "re evaluate" It pol icies concerning the speakers that It has on Its campuses. The House has again defeat ed by a vote of 30 to 26 a bill that would extend tenure to teachers in small school dis tricts. Presently, tenure is grant ed only to teachers In districts with an average dally enroll ment of 4500. The house pass ed Saturday, April 20, In the first Saturday session of this session, a "truth In taxing bill' which provides that the proper ty tax statement which property owners receive will state the valuation of the property In terms of dollars and cents and In terms of true cash value and that the levy on that true cash value be stated In terms of dol lars and cents per thousand dol lars of true cash value. I think that this could well be one of the very best bills that this session has passed because the property tax statements are difficult for even the Initiated to understand and are impossi ble for the uninitiated to under stand. This bill should lead to a rule of common sense -In the field of property taxation. thereby reducing the amount of working capital required in the conduct of his business. Many of the 5,000 merchants who have Joined our program are now able, for the first time, to offer credit to their custom ers, and others have reported that the BankAmericard charge is close to one-third less than the cost of operating their own credit departments. As a result, the smaller merchants through out the state may now compete for credit business on terms identical with those offered by department stores In metropoli tan areas. Cardholders also benefit from the plan: there is no fee for the card, there is no service charge If payments are made within 25 days of billing (this could mean almost two months without any charge or pay ment), and only one check needs to be written to cover what normally would be many accounts, mere are about 10.- 000 businesses which honor the card in Oregon and many more tnousanos tnroughout the na tion, and if the cardholder de sires to repay on a deferred pay ment pian, tne Dank cnarge is identical with that offered by merchants providing similar credit arrangements. Senate Bill 536. as amended. will apply only to transactions involving goods and services. It authorizes a charge of 1V4 per cent a month on the amount deferred for payment through monthly installments. Charges for cash advances under the credit card would comply with existing laws applicable to banks. The bill is intended to elim inate discrimination against Oregon banks by authorizing charges identical with those of fered by department stores In Oregon and by the vast major ity of credit cards now in use throughout the United States. It will be many months be fore our BankAmericard pro gram can be expected to be profitable and a still greater period of time before the start up costs will be recovered through normal profits. Ob viously, the service can be con tinued on a permanent basis on ly If it offers the opportunity for profitable operations. We believe the merchants and consumers of the state are In favor of the BankAmericard program and we urge support of Senate BUI 536 in its amen ded form. Ralph J. Voss. President First National Bank of Oregon Salem Scene Solo Tax Vol Seen Mors Llkoly Public dlsappioval of some Mfiulli "' mIiooI budget mound the Mat"' recently U helnc iea.1 bete a -till another sli'ii that till- legislature must offer cllUenx an opportunity to vote on a lax measure that would afford suliMaiiiiai rem property tax relief "The people have cnipltatlcal- . . 1 a,. .. .....I .r.lll.lHv t11. IV Milieu inni i""i--- es cannot continue to support' duality education." says Sen. llairv Bolvin tt K Kails I. He Is chairman of the Senate Taxa tion Committee, which current ly Is giving every detail of the House passed sales tax propos nl microscopic attention. In that I'lll rests much ho(w that lawmakers will give Ore gonlans the chance to vote sub Manila! proertv tax relief. It Is the major bill In a nix point tax reform package passed late In March bv the House; It would refer a three per cent retail sales tux measure to the people and lake the hea t off local budgets by pouring resulting revenue Into school support. Some 70 cr cent of prt-iwrty tax dollars now supimrt schools. It Is estimated that the prov ed sales lax and related bills passed bv the House would re duce property taxes bv about 30 per cent. Sen. Bolvin predicts voters will get the chance to vote on some alternative means of pay ing local government costs. He would prefer to present to the Senate a sales tax which would lower Income taxes too, but there Is some question as to whether there will 1 sufficient revenue. "Nobody has come up with a better Idea yet," says the veter an Senate leader. 'The only other alternative that would raise euuogh revenue for sub stantial property tax relief would be a net receipts tax, but then there would be no bene fit from tourists." A net receipts tax Is basically one which would make Income subject to state taxation from the first dollar earned. A bill containing some features of such a tax was referred to the people and voted down In 19U3. Oregnnlnns have not voted on a stale sales tax since 11M7. As the Senate Taxation Coin mittce enters Its second month of study on the sales tax mens tire, observers here are Impress ed b the painstaking rare being shown on every detail. It Is modeled after the' California law, and the printed bill as ap proved bv the House runs 'J5 pages long. After holding public hearings, the committee met with Edward Stetson, head of the department which administers California's long time sales tax. For three days, they went through Ore gon's proposed law section by section, coming up with some 40 ureas calling for policy de cisions and possible amend ments. Sen. Bolvin says he hopes nil policy decisions ean be reached this week. His committee has begun Intensive study with the State Tax Commission, legisla tive counsel and George Anneln, committee tax consultant from Oregon Tax Research, In order to boll down controversial fea tures of the bill. Pioneer Pond enngs Since It seems to be the vogue for every community to collect and exhibit Items of pioneer use or Interest, and since the early prosperity of Heppner depend ed on the freight wagons, I sug gest that a unique way to mem orialize the nnst wnnlrl hi In make a freighter outfit a sym- ooi ior tne community. Why not put together a freighter's outfit of wagon and harness. Locate It where It could he easily observed by vis itors. In addition to the assem bly, I would suggest that each of the comDonent nnrts of unir. on and harness be tagged with Its name. I am sure identifica tion would be of Interest and educational to many. It may take an oldtlmer to furnish the names, but I like the Idea. With the increased movement of people to the recreational areas south of Heppner, such a display might cause Rome to pause a while to display their knowledge or Ignorance, as the case may be, of our early trans port system. From Portland Including Flatt's Truck Service PHONE 989-8420 For Fast and Dependable FREIGHT TRUCK SERVICE Dally Overnight Service Saturdays MOVING? CALL US GENE ORWICK by Evtratt L Cutttr They will prepare a brief, the chairman says, so that the mm mittce can concentrate on vital coio-liU'ratlon ilurl n g these waning week of the '.Hi7 sen slot. Less essentia! matters, such as definitions, will I, de ferred until controversies are re solved. Sen, link In Indicates that whatever proHrty tax alterua live meanure passes out of hu committee will differ from the House version, but ho decline to predict specific details or the magnitude of variation. He dor favor a strict limitation on prop, ertv taxes so that a sales tax would not tie Jukt another tax with local taxes creeping back up U their present level In a few years. He also wants a Con stitutional provision to freeze the sales tax rate unless an In crease Is voted by citterns. Ills primary desire, however, reflected by moat legislator here, Is to make sure that the people have th opportunity to vote on an alternative In tint near futur. "There Is ample evidence at last weeks budget elections that voters have reached the conclus ion that property taxes are too high, and that's that." Sen Bol vin says. "I would be willing to settle for almost anything that will give them the right to vote on a mrasure that Would aubstantllaly reduce real proper ty taxes, and I believe the leg islature will provide that oppor tunity." Riverside School Bids Due June 6 Blls on the construction of the new Riverside High school at Boardman will be received at the Morrow county school dls trlct office In Lexington until Tuesday, June 6, at 2 p.m and the bids will be opened at 2:30 p.m. on the same day, Supt David Potter announce. Architect Howard Leonard Glaer has been making cuts In the plan for the school by request of the district board. In the hope that bids presented by contractors will le within the $1,IKI,000 allowed by the Army Corps of Engineers on cash settlement for replacement of the existing Riverside school. Hon Daniels, who has been designated to supervise con struction of the building, said Monday that It bids tall within ! the amount available, there Is J hope that the school construc tion can prtx-eed at a pace to have the new building nearly enough finished to occupy by April. 196H, at which time gate of the John Day dam will be closed, and the Umatilla reser voir will rise to Inundate the present location of Riverside High. When the school Is finally completed, It will end nearly six years of controversy and tedious negotiation. Specifications on the proposed building may be obtained from the district school office by con tractors, or from the architect In Portland. COMMUNITY BILLBOARD Coming Events BAND PARENTS Important Meeting, Thursday, May 18, 7.00 p.m. Heppner High Library. HETPNER HIGH TRACK District Meet at Burns, Sat urday, May 20. State Meet at Corvallls, May 27. CONSERVATION TOUR Bus leaves Fairgrounds. 9:30 a.m., Monday, May 22, re turns at 3:00 p.m. Visit to many ranches In county. All adults Invited. Sack lunch. AUTO ROAD E-O Sponsored by Jaycees Sunday, May 21, 1 p.m. County Fairgrounds. For boys & girls, ages 16-19. GRADUATION CEREMONIES Baccalaureate, May 28, 8 p.m., multipurpose room Commencement, May 31, 8 p.m., gymnasium. PIONEER PICNIC Sunday, May 28, County Fair Pavlilon Registration from 10:30, pot luck dinner at noon. SPONSORED AS A PUBLIC SERVICE BY C. A. RUGGLES Insurance Agency Heppner Hillsborough P. O. Box 247 PH. 676-9625