14 Thursday, October 23, 1938
MAIL TRIBUNE, MEDFORD. ORE.
Funds Coming in
Ai Little Rock ,
: Little Rock, Ark.-OB-Dr. T.
J. Raney, president of the Lit
tle Rock Private School Corp.,
said today that contributions
to his private, segregated in
stitution are coming in at "a
faster rate than ever before."
; Raney said the increased
flow of donations makes the
$600,000 estimated operating
cost for the complete school
year "seem perhaps not quite
as formidable as before."
He said he believed letters
sent all over the country sign
ed by him and Gov. Orval
Faubus recently appealing for
funds had been doing "a lot
of good." The school is pres
ently entirely dependent' upon
donations but Faubus has
hinted he may get the Ar
kansas legislature to vote
money for the school.
- Seniors, 240 strong, held
their first day of classes in
the one-time .Methodist or
phanage Wednesday. W. C.
Brashears, private school su
perintendent, termed the day
"fine and according to schedule."
Gordon MacRaeTells Of High Finance in Income Tax Hearing
more than a "paper deal." , J several hundred to be tried
The singer's case, one of here, was to continue today.
Los Angeles (UPD Sineer
Gordon MacRae told a tax
court Wednesday how as a
top-salaried Hollywood per
sonality he had becomes in
volved in high finance and
borrowed SI million partly to
salvage some of his earnings
from iUncle Sam's income tgx
bite.
The handsome entertainer
who said such deals were
common among movieland's
upper class, appeared in court
to oppose a federal tax claim
that he owes $139,938 in un
paid taxes for 1952 and 1953.
As MacRae explained the
financial deal which the gov
ernment has branded as "a fi-
EXECUTIVE DIES
Mount Vernon, N. Y.-UPD-Arthur
C. Saunders, 60, gen
eral manager of the Mount
Vernon Daily Argus, died
Wednesday after he under
wenfan operation for ulcers.
Saunders was the second
Macy newspaper executive to
die in the same day. Benja
min H. Carroll, 49, editor
and general manage of the
White Plains Reporter-Dispatch
also died.
Nobel Literature
Prize Awarded To
Russian Novelist
Stockholm, Sweden -IUPD-Boris
Pasternak, a Soviet writ
er whose best-known novel is
banned in Russia, won the
$41,250 Nobel literature prize
today.
The Swedish Academy of
Literature cited Pasternak for
his "important achievements
in contemporary lyrical poetry
and in the field of " the great
Russian epic tradition."
Ban Not Mentioned
The citation made no men
tion of the Soviet ban on his
best selling novel, "Dr. Zhiv
ago." It is uncertain whether
he will be able to come here
to receive his prize Dec. 10.
The literature award 'is the
first of this year's Nobel
prizes to be announced. Prize
winners in chemistry, physics
and medicine will be an
nounced next week, while the
peace prize winner if any
will be named later.
Pasternak is the first resi
dent of Russia who has ever
won the literature prize. Ivan
Bunin, the only other Russian
to receive the award, was liv
ing in Paris when he won it
in 1933. , .
Banned By Soviet
"Dr. Zhivago," a novel de
scribing nearly four decades
of Russian life, was an im
mediate success when it was
published in Italy. It has since
appeared in 18 countries out
side the Iron Curtain, but it
appears unlikely that readers
in the Communist world will
have a chance to read it.
A few installments of the
Pasternak masterpiece ap
peared serially in the Soviet
monthly Znamya, but publi
cation was halted abruptly
when the Kremlin decided to
ban the book.
Although Pasternak has
lived in Russia all his life, he
has usually kept aloof from
the changing tides of politics
which have affected the work
of his contemporaries.
The Navy's oldest boat in
service is an unnamed 50-foot
barge now flying the flag of
Read Admiral Harold Davis
Baker. It was built in 1912
at a cost of $12,000.
HILO HATTIE
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nancial merry-go-round in a
preconceived plan entered
into solely for income tax
purposes," he did little more
than sit back and let the
money roll in.
Late in 1952, MacRae said,
attorney Samuel Norton of
Beverly Hills asked him how
he'd like to buy $1 million in
U.S. Treasury notes.
Broker Assumed Risk
"I said, 'Sure but where do
I get $1 million," MacRae
testified. "He said I could bor
row the money and I asked
him where in the world I
could find someone to loan
me that much.
"He said he had a broker
who would do it and assume
the risk. He said I might pro
fit by buying the government
bonds and, in any event, it
Prison Term for
Woman, 86, Upheld
San Francisco -(UPD- The U.
S. Court of Appeals Wednes
day upheld the one-year pris
on sentence of 86-year-old
Mrs. Helen A. Davenport,
Ore., for conspiracy to use
the mails in selling fraudu
lent securities.
Mrs. Davenport, one of a
group of nine indicted, was
convicted by a jury in con
nection with the sale of $550,
000 worth of membership cer
tificates in the Mt. . Hood
Hardboard and Plywood' co
operative. The memberships were as
serted to guarantee workers
continuous employment in a
plant to have been construct
ed. The appeals tribunaj said,
"we believe the evidence is
sufficient to sustain the guilty
verdict."
Mrs. Davenport was given
the prison sentence by U. S.
District Judge Gus J. Solo
mon after a 12-day trial in
Portland in 19571
4-H Club News
Nimble Thimbelli
The Nimble Thimbells sew
ing and knitting club of last
year met at the home of Mrs.
Lucille Frink Saturday, Oct.
11. This was the organization
al meeting- and since our club
had grown so large we divi
ded . ourselves into three
groups. . '
Mrs. Frink will be the lead
er for the knitting club. 'Mrs.
John Anhorn will be leader
for the first and second year
in sewing and Mrs. Franek
will be leader of the third
year and up, sewing club.
The new officers of Mrs.
Franek's group are president,
Colleen Franek; vice presi
dent, Shirley Roach; secre
tary, Carolee Kuest; reporter,
Kathleen Frederick; song and
flag salute leader, Kathy
Thompson.
Refreshments were served
by Mrs. Frink.
Kathleen Frederick
Reporter
BANK OFFICIAL DIES
Norfolk, Va.-OJPD-Richmond
P. Gardner, 58, a vice .presi
dent of the Bank of New
York, died Wednesday of in
juries received an an automo
bile accident near Norfolk
last Saturday.
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would benefit my income tax
"So I told him to go ahead,"
MacRae said.
,MacRae, who said he had
earned "between $200,000 to
$500,000" in the years from
ARREST DEMONSTRATORS
Cairo-flJPB-Sixty labor dem
onstrators were arrested in
Khartoum, Sudan, Tuesday
for attempting to "attack" the
car of U.S. Ambassador James
S. Moose Jr., during an anti
government demonstra t i o n,
the semi-official Middle East
News Agency said Wednesday
night.
19ol to 1953, explained that
he and his associates bought
$5 million in government
bonds and securities since
1952 and that the holdings re
turned 4 per cent interest.
The money, he said, was
borrowed at 3 per cent inter
est from Jack Bernstein of
New York, head of Gibralter
Enterprises Inc., which in
turn had borrowed the money
at l34 per cent interest from
an undisclosed source.
Capital Gains Claimed
The singer testified he was
able to list the 1 per cent
earnings from the holdings as
capital gains which he said
was taxable at only 25 per
cent compared with the 95 per
cent in taxes he was paying
on his personal income.
Mark Townsend, chief coun
sel for Internal Revenue, said
the government would at
tempt to prove that no securi
ties changed hands in the deal
which he charged was nothing
Wt Give fT
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