(A
Recommended
A feature story about the 74
years of 4-H club leadership
compiled in Jackson county by
members: of the Bisham family
c appears on Page 12 of today's
issue of The Mall Tribune.
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MEDFORD
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MEDFORD, OREGON, SUNDAY, FEBRUARY 6, 1955
49th Year No. 275
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Taxation Problem
Fating Legislature
Outlined by "Lowry
By PHILIP B. LOWRY
State Senator
0 Salem Right now it is difficult to say whether the House
and Senate Tax Committees or the taxpayers are more concerned
about the tax program which must eventually emerge from this
has as many
members.
In reporting to you, I would like you to "stand in my shoes"
as a member of the Senate Tax Committee, watch the develop
ment, nnH vpar in mind the matters which must be considered
by a member of this Tax Committee consisting of five Republi
cans and two Democrats. Your search is for not less than $45,,-
000,000 of new tax money.
No Place .for Person
? With a Closed Mind
0 There is first of all, no place
for the person with a closed
mind, who wants taxes to hurt
anybody except himself, or the
0 oerson who will not act realisti-
cally to meet the needs of state
1 taxation.
Seven Propositions
Next, you must be willing to
i o o accept certain basic propositions
i whether you agree with them
0 or not:
1. Only the House Tax Com
o mittee may introduce the tax
es, raising bills. Views of the Sen
0 ate members will be reflected
to the extent that Senate mem
j ' bers can convince the House -
"3 members of their views.
e ' 2. No tax measure may,
0 under the Constitution,1 carry
,? the emergency clause. The
- . emergency clause puts legisla
tion into effect immediately,'
0cand, because it is not avail
able on tax legislation, the
people can refer tax legisla
tion for final decision of the
voters.
3. The budget will not be
c substantially reduced below its
i present figures, unless the
0 voters reject tax legislation
o to such an extent that the legis
; lature must reconsider by
making devastating slashes in
the usual expenditures. There
o" .is no strongly expressed opin-
ion in either the legislature,
or on the part of the public,
3 that we are prepared to slash
P educational and welfare ap
propriations to the point
where substantial additional
' 5 revenues will not be required.
4. 'Any new tax source sug
' gested will meet very strong
opposition from a substantial
part of the public affected ad
! versely. Somebody, possibly
'. - everybody, is going to have to
pay more.
5. A special election to seek
; voter approval of any tax pro
gram adopted by the legisla
ture could not be called in less
s than 60 days from the date of
passage of the tax bills,
i 6. State revenue demands
y should not monopolize tax
sources to the exclusion of the
s needs of local government.
7. Federal taxes are gob
4 bling up an astonishing amount
0 from the Oregon economy
and thereby reduce Oregon'
sources of taxation. t
8. Law requires that the
budget be balanced.
Exoenses Were Voted
With this background, you sit
on the committee, knowing that
the large appropriations for
which you are trying to raise
money (including basic school
support, old age assistance, and
veterans' bonus) were over
whelmingly voted by your fel-
.. S low citizens.
You know, also, that gome
local taxing jurisdictions already
' - have a dangerously high ad va-
lorem tax on real property that
farm prices are sagging. Too,
vou must recognize that the ad
ditional forms of taxation which
have popular appeal (such as im-
posing the corporaxe excise tax
on nublic utilities, a tobacco tax,
increasing liquor and pari-mutuel
betting taxes, and repealing the
skyscraper clause) would rais"e
some extra money but would fall
far short of what is needed. The
fact must even be faced that an
attempted cigarette tax was
previously voted down by the
people in a well-organized cam
paign to defeat it.
Before you is correspendence
which demands or. requests: 1.
No state real property tax. 2. A
sales tax. 3. No sales tax. 4. No
session. It is plain, however, that lew, eitner
citizens or legislators, will be satisfied when
the job is done.
Governor Patterson has expressed his views
and the Democratic party has published its pro
gram. The President of the Senate and the
Speaker of the House have expressed somewhat
different views from those of the Governor on
specific tax measures. The Legislature probably
suggested solutions as a nas
tax on a tax (repeal of Federal
income tax deductions). 5. Re
peal of a number of exemptions.
6. Preservation of a number of
exemptions. 7. No surtax on in
come tax. 8. Drastic reduction of
expenditures. 9. Increased sal
aries for teachers and state em
ployees. 10. Increase for recip
ients of welfare assistance.
No fancy theories of taxation
are going to answer our prob
lem.. The proponents of the ability-to-pay
theory of taxation are try
ing to convince you we haven't
even started on the people who
can afford to pay by income tax
ation. Those desiring a broad
base tax, such as a sales tax, tell
you that there should in all fair
ness be some relationship be
tween, the benefits of taxation
and its burdens. In between are
the people concerned with the
problem of creating new jobs
for the influx of new workers in
Oregon, men who know there is
a vital relationship between jobs,
industry and taxation in Oregon.
Try Intelligent Approach
Through this swarm of ideas,
you try to approach the thing in
telligently. For instance, a meeting with
the House Tax Committee is held
to determine anticipated reve
enues for the next two years
from existing tax sources. You
think maybe we don't need to
raise any new revenue. The State
Tax Commission representative
has been closely questioned, to
try to produce some indication
that the Commission has ser
iously underestimated existing
revenues, as it has in some pre
vious years. There is no feeling
of conviction that the estimated
revenue figures are very wrong.
It is felt they are, in fact, based
on a rather optimistic outlook of
general business conditions for
the next two years. And, any
way, you know this isn't just a
problem staring at us in 1955.
It threatens to become chronic.
.It would be pleasant, when you
have to face the same task in
1957, to know there was even a
small surplus, such as we have
as a cushion for this year.
This, as I see it, is the prob
lem. From this point on, consider
ation will be given to specific
bills, and speculation and con
jecture will be left behind.
Ellsworth May Run Against Morse in '56
By A. ROBERT SMITH
Mail Tribune Correspondent
Washington An open clash
has developed within the Oregon
congressional delegation, match
ing Republicans against Demo
crats in a way that is almost as
much a novelty to them as to
Oregon voters for whose benefit
it is being staged. .
This is in part a result of the
election last fall in which two
Democrats Sen. Richard L.
Neuberger and Rep. Edith Green
were elected to seats formerly
held by Republicans. This left
three GOP members, Rept. Har
ris Ellsworth, Walter Norblad
and Sam Coon, and Sen. Wayne
Morse, ex-Republican, now an
Independent, and widely regard
ed as a Democrat - to - be.
During most of the past decade
when all these solons came to
Congress, Oregon has been rep
resented by a solid bloc of Re
publicans among whom there
were no open disagreements.
Even before Morse bolted the
GOP in 1952, he and some of his
colleagues rubbed one another
the wrong way politically" and
County Employment
In January Above
Normal for Month
Number Getting Jobs
Tops December Record
The employment picture in
Jackson county during January
was the best for that month in
recent years, according to the
monthly report of the local
State Employment Service of
fice, issued Saturday.
Weather generally was favor
orable for outside work, with
very little snow to slow down
logging operations, and there
were no major shutdowns in the
industry, the report said.
Layoffs in trade and service
establishments were well below
a year ago, confirming "better
than usual" business reports, it
added.
For the first time in several
years, the number of persons
placed on jobs exceeded the
total for December. They were
more than double the number
in January a year ago.
Fir Market Good
The fir lumber market was
good throughout the winter, and
this also had a favorable effect
on employment, the report
stated.
The usual seasonal pattern of
unemployment claims in Janu
ary exceeding those in Decem
ber was followed. A total of 5,
801 weeks of unemployment
were claimed, compared to 4,
300 in December. But the re
port said that the January, 1955,
total was well below the 6,932
weeks claimed in January, 1954.
In addition, the average dura
tion of the claims filed was less
than six, .weeks, indicating , a
rapid ' return to work by most
of those out of jobs.
"This year's reduced unem
ployment is particularly note
worthy," the report said, "in
view of the constantly increas
ing labor force in this county.
Population has steadily in
creased, and the total labor
force has increased right along
with it. The migration into this
area is well indicated by Ihe fact
that in a period when total un
employment claims were de
creasing, that portion of the
total filed against other states
increased slightly. These inter
state claims are based on recent
earnings outside of Oregon."
Below 1954 Mark
The number of those without
work at the end of January
was estimated at 2,150, of which
375 were women. This is 9 per
cent above December, but 31
per cent below January last
year, the report said.
It pointed out that February
is usually, the slowest month of
the year for new hiring, and
that this month will probably
be no exception. However, it
should be better than in recent
years, with weather the decid
ing factor, the report said.
March and April usually mark
the start of the seasonal upturn
in employment.
JOHN ADAMS RESIGNS
Washington (U.R) The
abrupt resignation of Army
Counselor John G. Adams, a
key figure in the Army's fight
with Sen. Joseph McCarthy, ' re
vived speculation Saturday on
Army Secretary Robert T. Ste
ven's political future.
went off in opposite directions
but ne'ver clashed publicly..
But times have changed. Now
cne Democrat and- one Republi
can have emerged as protago
nists in a manner that marks
them as spokesmen for their
parties within the state in Con
gress. They are Neuberger, the
freshman Democratic senator,
and Ellsworth, the veteran Re
publican congressman.
For Neuberger, this is not a
new role. It is essentially an ex
tension of his slashing . attack
against incumbent Republicans
in . the last election campaign
and in the recent years of. his
career as state legislator and
journalist.
But for Ellsworth, it is a new
role, and one he is assuming
both reluctantly and deliberate
ly. Although he is now dean of
the Oregon delegation in point
of service (12 years), the 55-year-old
solon is not anxious to pro
ject himself forward as a spokes
man for anyone but himself.
Nevertheless he has set himself
to the task of challenging or an
swering the expressions and alle
SUBS SHADOW SEVENTH FLEET
With the Seventh Fleet, Sunday (U.R)
Unidentified undersea "objects," presumed to be
Russian submarines, have been shadowing the
United States Seventh Fleet in Formosan waters,
American Naval officers revealed Saturday.
Because submarines have a right to go any
where they please on the high seas, there is noth
ing the U.S. Navy can do about the "objects"
except keep a cautious eye on them, the officers
said. '
The objects have appeared frequently on de
tection equipment aboard Vice Adm. Alfred M.
Pride's Seventh Fleet, which is standing by for
the possible evacuation of Nationalist Chinese
troops from invasion-threatened Tachen island,
200 miles north of Formosa.
FIRST LINE OF DEFENSE If .the war waged here against disease by Nationalist
Chinese medics at Keelung; Formosa is indicative of what's in store for any Red in
vader, then the Chinese Reds should think twice about any move toward Formosa
These specter-like medics seemingly descend with a vengeance upon this latest group
of evacuees from Red-threatened islands of Tachen in move combating pestilence.
Assembly
Overwhelming Win
For Formosa Pact
Seen by Knowland
Washington U.R) Senate
Republican Leader William F.
Knowland predicted Saturday
the Formosa mutual defense
treaty will be given Senate ap
proval by an overwhelming vote.
He also told reporters Presi
dent Eisenhower wants the
treaty ratified as soon as pos
sible, even while efforts are be
ing made toward cease fire ne
gotiations in the Chinese crisis.
The treaty was negotiated last
year with the Chinese Nation
alist government, based on For
mosa. It commits the United
States to help defend Formosa
and the neighboring Pescadores
from Communist attack.
Knowland said the Formosa
pact may come to a vote before
next weekend. If not, it will be
delayed 10 days or more.
gations- of Neuberger and other
Democrats.
This has become evident in
the first month of this new ses
sion of Congress on three ques
tions power policy, Formosa
resolution and Talent irrigation
project.
In praising President Eisen
hower's state-of-the-Union mes
sage, the congressman lashed out
at Democrats who insist on what
he termed the "hidebound" atti
tude of all-federal construction
of dams, while Neuberger said
it was a "shotgun offer" for the
administration to promise funds
for "partnership" dams only.
In commending Eisenhower
for his resolution of Formosa de
fense policy, Ellsworth contrast
ed it with what he called "the
high-handed" way President
Truman sent U.S. forces to the
defense of South Korea when it
was invaded in 1950.
Neuberger has charged the
Talent project was mostly a
come-on for votes for Ellsworth
and ex-Sen. Guy Cordon last
fall, like the fellow who author
OusfsBDeiiicOes - FiraBiice
Sporis Bulletins
Coos Bay Medford'i tor
rid Black Tornado continued
its winning streak to 14
straight games last night
with a victory over stubborn
Marshfield, 79 to 68. The Tor
nado had to come from behind
to do it, however, as the Gold
en Pirates held a 35 to 31 half
time edge. Medford had a 58
to 54 margin at the third
quarter's end and lead at the
first quarter's end, 18 to 17.
Phoenix and Crater highs
posted lopsided basketball, vic
tories last night to remain tied
for the lead in the Rogue
League. Crater walloped Eagle
Point 70 to 43 and Phoenix
clubbed Illinois Valley 69 to
'32. Both victors established
substantial bulges early
their games and kept them
in
Oregon State 69, Idaho 63
Oregon 64, Washington 63
izes his girl to buy an expensive
broach at Tiffanys but never
forks over money to buy it. Ells
worth said funds for Talent are
in the offing, delayed by admin
istrative errors, and Neuberger
is "ignorant and ridiculous" in
his charges. '
Ellsworth's new role is a fur
ther demonstration of his ability
to shift gears in order to move
in his chosen direction under
varying circumstances. Two
years ago when his party gain
ed control of the legislative and.
executive branches, he readily
became the most successful mem
ber of the delegation in getting
his own bills passed. Now he is
emerging as a spokesman for the
administration, which it is not
beyond the realm of possibility
may project him into still an
other role next year as the Re
publican contender for the sen
ate seat . now held by Wayne
Morse a role which virtually
all Republicans here evince no
tably little anxiety to fill as of
now, 13 months from the dead
line for filing candidacies.
Red
An officer said, the Seventh Fleet keeps con
stant tabs on American, submarines in Formosan
waters and submarines of friendly powers usu
ally surface and identify themselves when they
move near U.S. surface warships.
For that reason, the officer said, any uniden
tified submarines lurking in the area would be
considered "other than friendly."
Red China is not believed to be operating
submarines at the present time. Nationalist Chin
ese intelligence reports have told often of un
identified submarines passing through Formosan
waters. It has been fairly well established that
the Soviet Union has based a considerable num
ber of submarines with its Far Eastern fleet.
Coty Starts Search
For Premier to End
Government Crisis
Paris U.R) French Pres
ident Rene Coty Saturday be
gan the long, arduous ' task of
finding a new premier to end
the government crisis caused by
the National assembly's ouster
of Premier Pierre Mendes
France. The 48-year-old Radical Soc
ialist premier resigned early Sat
urday after he was defeated 319
to 273 in a National assembly
vote on which he had staked the
life of his government.
Mendes-France's fall came ov
er his policies in North Africa,
and also threatened to delay
French parliamentary ratifica
tion of the Paris German re
armament pacts a condition
which could strain 'United
States-French relations.
The United States policy on
Europe for, several years has
been based on the plan to re
arm Western Germany in the
defense of Western Europe
against the threat of Commun
ist aggression. The assembly has
taken the first step toward rati
fication of the Paris rearmament
treaties, but they now are ready
for consideration by the French
upper house, and face delays be
cause of Mendes-France's fall.
Coty called in the heads of
the legislative houses and then
the leaders of the political par
ties who combined in the as
sembly to defeat the premier on
a confidence vote.
Inskeep Appointment
Confirmed by Senate
Salem (U.R) The Senate
has confirmed the re-appointment
by Gov. Paul Patterson
of four members of the State
Board of Health to new four
year terms.
The confirmations were ap
proved over the objections of
two senators who said the board
needed new blood. ; 1
Confirmed were the reap
pointments of Dr. L. D. Ins
keep, Medford; Dr.D. C. Burks,
Portland; Dr. N. E. Irvine, Leb
anon, and Dr. O. T. Wherry,
Portland.
f.
Two Russian Built
Planes Shot Down;
Six Others Chased
Battle Follows
Attack on US Plane
Tokyo (U.R) American F-86
Sabrejets in the biggest air battle
since the Korean war Saturday
shot down two Russian-built
MIG 15s that attacked a U. S.
Air Force reconnaissance patrol
over the Yellow sea west of
Korea.
The Air Force announced'that
eight Communist jet fighters
jumped an American RB-45
reconnaissance bomber and Sab
rejets flying cover over the in
ternational waters.
Nationality Undisclosed
It was not immediately dis
closed whether the ' MIGs were
from the Soviet or Red Chinese
Air Force.
In Washington the State De
partment' announced the United
States was attempting to find out
whether the MIGs came from
Red China or elsewhere.
Radio Peiping, the official
voice of Communist China, made
no mention of the air battle.
Far Eastern Air Force special
ists checked radar plots and logs
of all U. S. planes in the area
to try to pinpoint the exact lo
cation of the clash.
The Sabrejets returned the
Communist fire and in the dog
fight that followed two of the
Communists planes were shot
down. The other six turned tail
and fled toward the' Communist
mainland, the Air Force said.
Four of the MIGs attacked the
twin-jet 550-mile-per-hour bomb
er, the Air Force said, and the
other four attacked the Sabre
jets, from the 4th Fighter Inter
ceptor wing, flying cover.
Four Atomic Blasts
Set Off by Reds
Paris U.R) The Soviet
Union set off four atomic explo
sions last autumn that have re
mained unannounced until now,
a French government spokes
man claimed Saturday.
A spokesman for Henri Long
chambon, French Secretary of
State for scientific research, dis
cussed the explosions in a copy
righted interview with the Paris
newspaper France-Soir.
He said the blasts . occurred
between September and Novem
ber. Including two explosions,
on, Aug. 22 and Aug 26, the
Russians set off a total of six
nuclear devices over a four
month period, he said.
The Soviet news agency Tass
was quoted in dispatches from
Moscow last Sept. 17, as saying
that an atomic weapon had just
been exploded, including one
hydrogen device. That brought
to six the separate occasions on
which the Soviets were known
by the West to have set off nu
clear explosions.
Monday Final Day for
Blood Appointments
Monday is the last full day
during which appointments can
be made to give blood when the
bloodmobile visits - here Tues
day. The telephone number to call
for an appointment is 3-3813.
Only 89 appointments had been
made up to Saturday afternoon,
out of a total of more than 300
donors needed.
The bloodmobile visit will be
at the Elks temple from 1 to
6 p.m. Tuesday, instead of on
Wednesday as in the past. Drop
in donors will be welcome dur
ing the donation hours.
Ike Studies Northwest
Flights From Portland
Washington (U.R) Sen. Ed
ward J. 'Thye (R.-Minn.) said
Saturday President Eisenhower
has promised to modify his order
refusing to renew the certificate
of Northwest Airlines to fly
from Portland, Ore., and Seat
tle, Wash., to Hawaii.
Thye, in a joint announce
ment with Rep. Walter H. Judd
(R-Minn.), said announcement of
the , modification is expected
Monday.
Shoof-If-Mecessary
Orders Flashed to.
Fleet by President
32,000 Civilians,
Troops on Islands 0
Taipei, Sunday (U.R) The
mightiest concentration of
United States warships since
World War II began moving into
position today for the imminent
evacuation of Nationalist forces
from the invasion-threatened
Tachen islands off the coast of
Red China.
Chinese and American naval
units moved out shortly after
President Eisenhower flashed
orders to the U. S. 7th fleet to
protect the evacuation of the
Nationalist-held Tachens 200
miles north of Formosa.
Washington (U.R) President
Eisenhower Saturday sent shoot-if-necessary
orders to the U. S.
7th fleet to protect the Chinese
Nationalist evacuation of the
Communist-threatened Tachen
islands.
Air Cover Starts '
His orders, issued at 1 p.m.
EST, signalled the start of the
evacuation in about 24 hours, :
but U. S. air cover over the dan- c
gerous area were expected to ;
begin almost immediately. !
Some 14,000 Chinese Nation
alist troops and 18,000 civilians
are on the Tachens.
The, orders went out to the
7th fleet and its 45,000 Navy
personnel after Generalissimo
Chiang Kai-shek abruptly ended
his week-long stand against the
evacuation without more spe
cific U. S. guarantees for the
protection of other islands he
holds.
A State department announce
ment disclosed that Chiang re
ceived only general assurances
that "related positions" in the
Formosa area which are deem
ed necessary to the security of
Formosa and the Pescadores
would be defended. That was no
more assurance than Mr. Eisen
hower had given him previously-
After Mr. Eisenhower's orders
were flashed to the 7th fleet,
a high Defense department offi
cial said the evacuation would
begin in about 24 hours and air
cover almost immediately.
"Our forces have been in
structed not to provoke en
counters with the Chinese Com
munist forces," this official said,
but not to accept a tactical dis
advantage which would be
equivalent to a threatening ges
ture." ' "
That means U. S. forces will
fight back if attacked.
The best estimate here was
that evacuation of the Tachens
would require from 10 to 14
days. During that tense period
the Chinese Reds can show
whether they will accept the
islands peacefully or risk a
major clash with the United
States.
Chinese ships will be used
primarily in the operation al
though the United States does
have some vessels to assist in'
the operation. Many of the Chi
nese ships are now at Tsaying,
in southern Formosa, and prob
ably will take 24 hours to reach
the Tachens some 200 miles to
the north.
The order met initial approval
among members of Congress.
Sen. John J. Sparkman (D-Ala.)
said it was "no surprise."
"Our concern now is whether
the Chinese Communists are as
warlike as they talk," Spark-
man said. "I don't think they
are." -
Sen. Hubert H. Humphrey
(D-Minn.) said "it is reassuring
to know our government is ma
king the decisions, and not
permitting others to do so." By
"others" he meant Chiang. This
referred to the end of Chiang's
opposition to the evacuation and.
his request for U. S. help to
carry it out.
The Pentagon explained that
the Nationalist Chinese govern
ment conveyed its request for
U. S. support to U. S. Ambassa
dor Karl L. Rankin in Taipei,
and he sent it to the State de
partment. A spokesman indicated that
about 45,000 U. S. Navy person
nel will be engaged in the op
eration, plus 3,000 men in the
Air Force's Sabre jet wing.
The United States has five
aircraft carriers in the area
the Yorktown, Wasp, Kearsarge,
Essex and . the Princeton (an
anti-submarine warfare carrier).
The 45,00Q-ton Midway, the
Navy's biggest carrier, was ex
pected to join the .Seventh fleet
this morning.