Image provided by: University of Oregon Libraries; Eugene, OR
About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 10, 1959)
Financial Circles Excited by Taxes on Insurance Industry t ' ' 'Ji EUner Walzer By ELMER C. WALZER UPI Financial Editor New York - (CPD - Taxes on thrift are stirring up quite a bit of excitement in financial WWiJ " 1 c i rcles these days. There are two of them - I A? one, now on UV?'S the books, will 1 1 g o u g e holes 1 "T H'Yi into the thrift 19fl millinn Ame r i c a n s who hold life insurance pol icies, and the other, before the House,. would hit mutual sav ings banks. The insurance industry'r tax is estimated to jump from $320 million to a half billion dollars, an overall rise of 55 per cent. The bank tax aims among other things to equalize tax free reserves against bad debts for commercial banks and savings banks. The latter now have a sizeable advan tage in this respect and as sert that the change contem plated would involve "puni tive taxation of mutual thrift institutions." The Savings Bank Associa tion of the State of New York has withdrawn from the American Bankers Associa tion because the latter backs the proposed tax. Other sav ings banks may follow and so may the savings and loan as sociations. There'll be a lot more on this rift. Complaints Just Starting While the insurance tax is on the books and- operative, the howls against it are just getting started. The big com panies are saying little. The industry's best spokesmen are the smaller companies. Charles J. Zimmerman, president of Connecticut Mu tual Life Insurance Company, has blasted the tax which he describes as "nothing less than unconscionable." While the average rise is 55 per cent in insurance taxes, Connecticut Mutual's rise runs to 72 per cent, .Zimmerman said. In the case of mutual com panies which have in force 60 per cent of the life insur ance of the U.S., the tax is a direct levy on policyholders and beneficiaries, Zimmerman finds. "Prior to the new tax law," he says, "life insurance was already more heavily- taxed than any other form of thrift. "Indeed, the income from life insurance funds was al ready taxed three times as heavily as the average income from 19 other forms of thrift and savings. "On this basis of compari son, it is clear that life insur ance was already paying more than its fair share of the tax burden, yet it now must pay 55 per cent more." Will Hurt Dividends The first impact of the soar ing tax burden on insurance i time contracts with policy- savings is expected in divi dends paid policyholders. These dividends, Zimmer man explains, "are paid from the savings resulting from careful selection of risks, r m - irom emciencies and econo mies in operation of the com pany, and from interest earn ings beyond those required for the fulfillment of our long- Price 10 Cents Medford 54th Year Tribune 2nd SECTION MEDFORD, OREGON, FRIDAY, JULY 10, 1959 Pages 1-8 Back Stairs: President's Golf Game By MERRIMAN SMITH UPI White House Reporter Washington - (UPD - Back stairs at the White House: Even the tourists gawking through the White House fence realize that President Eisenhower is having trouble with his golf. The trouble really may be with Congress or Nikita Krushchev, but the chief ex ecutive is sore at about every club in his bag. Last week end at Gettys burg, the President was threatening loudly to give up driving entirely because of the deteriorating quality of his tee shots. Some Practice Shots And last Monday afternoon, he walked outside his office at the White House to hit some practice shots up to his putting green. The President, standing deep in his one and only sand K1JEV -'KIDS Here's your last chance to earn your way . to Camp. You can sell soap from the YMCA for all or part of Camp ex pense. Hurryl CAMP STARTS JULY 19 Register at .. . VIM A .522 W. 6th SP 2-6295 trap, taking a mighty belt at the ball. Ball moved only a few feet, remaining securely in the grasp of the trap. The President then grasped his club anew and instead of hitting at the ball, he pounded the head on the edge of the trap. He slammed the club down again, tossed it to the ground near his bag and stalk ed out of the trap. Furthermore, if he reads this he might go to club swinging all over again. Those who -should know say the President -is getting a trifle sore about reading in the newspapers how he dubbed a golfshot and then commented on same in a voice rarely heard on radio and television. Ranger Assigned Butte Falls District Donald L. Strong of the Prineville district of the Ocho- co National forest has been promoted and transferred to Butte Falls as district ranger, according to C. E. Brown, for est supervisor of the Rogue River National forest. Strong served in the Marine Corps from September, 1942, to December, 1945, in the Pa cific theater, ending with the invasion of Okinawa. After discharge he attended Iowa State college and was gradu ated in 1949. He lived at Ocho co ranger station two years and then spent four years on the Snow Mountain district with headquarters in Burns. He was then transferred to the Prinevle district where he has spent the past ZVz years. He' is a first lieutenant in the U.S. Army Reserve and has been commander of the local reserve unit at Prine ville. The Strongs have four daughters and one son and are now living at the Butte Falls ranger station. All golfers go through try ing periods when they seem to do everything wrong. Most week end hackers attract only the attention of their four somes, but when a President gets angry or vocally self- critical on a golf course, a lot of people know it. If it happens at Burning Tree, only the members know it. But at the Gettysburg Country Club, which is semi-public course (outsiders can play by paying a greens fee slightly higher than that charged members), the num ber of people aware of a presi dential outburst depends en tirely on where it happens. If Eisenhower is close to the club house or near anoth er foursome, it would be most unnatural for other players or standersby td ignore a presi dential cry of dismay over a simple iron shot that either soars over the green or poops out dismally short of it. Feelings Tempered The President has some good friends who wish he wouldn't get so disturbed about his golf game. But their feelings are tempered by. the possibility that he's using golf to let off steam that must build up within him as he copes daily with a multitude of crises, any one of which would get the average man excited for a lifetime. It will be interesting to see whether his game improves after Congress goes home. . Frantic Man Directs Auto Into Building San Francisco - (UPD - Louis Kearn was standing in front of his cleaning shop Wednes day when he saw an auto careening toward him. Kearn waved frantically for the driver to turn the wheel, which she did and crashed right into the front of Charles Zanoni's photographic studio. "I just remodeled," Kearn explained. "Charlie needs it (remodeling)". I. don't." 0 &v&M i - (it - HOLDS UP TO 18 $OAfl95 MORE FOOD JLyy Model DF 1 80 - holds 609 pound! of food ? 1 0.93 Per Mo. 17.4 cubic feet V tiJ. - THE ALL-NEW HOME JL FREEZER MOST FAMOUS NAME IN FREEZERS Now, you can save money on the most wanted home freezer ever made . . . the one, the only Deepfreeze . .'..the finest chest freezer ever built. You get the best for your family in freezer living'. . , This new Deepfreeze home freezer holds up to 18 more food. It's bigger inside ... no bigger outside. Yet there's no skimping on in sulation. What's more, you enjoy peace-of-mind with the famous Amana double warranty. A five year warranty on the complete refrigeration system PLUS a three-year warranty against food spoil age due to mechanical failure of the refrigera tion system. YOU PAY LESS! YOU GET MORE! FLOATING ACTION LID leave bath hand free FUUY ADJUSTABLE BASKETS and dividers NEW CONTOUR STYLING SUPER STRONG CABINET WRAP AROUND FREEZER COILS surround food in blanket of cold HIGH DENSITY INSULATION locks "lercxold" in AUTOMATIC FLOOD LIGHT for fuB, f odraorner "vision RADIANT CONDENSER eKm'mates cabinet "sweating" DOUBLE WARRANTY in writing THERE'S A 'JUST RIGHT' SIZE DEEPFREEZE FOR YOUR FAMILY Also available in 11 and Si cu. ft. sises Model DF-240 23.8 cubic feet, on J339 S)95 fini-iimn nnvm on approved credit IIUIMIliU UUIIII We Crfrry Oar Own Contracts mode only by 309 EAST MAIN Medford's Leading Appliance Dealer for the Past 28 Years PHONE SP 3-4541 California Team Wins Air Derby Spokane (UPD Mrs. Aileen Saunders, El Cajon, Calif., to day held the title of the na tion's top light plane pilot and winner of the 13th annual Powder Puff Derby, a cross country air race for women. Mrs. Saunders piloted a Cessna 172 from Lawrence. Mass., here in 19 hours and 14 minutes. She and co-pilot Mrs. Jerelyn Cassell, San Diego, landed here Tuesday noon. With the title, Mrs. Saun ders and her co-pilot received $800. Taking second were Juanita Newell and Jimmye Lou Shel ton, both of Phoenix, Ariz. Mrs. Newell piloted a Piper Commanche. Margo Callaway, 17, and her sister, Sandra, 19, won third place. They were the youngest team ever to fly in the derby. They were from Wilmington, Ohio. Polio Vaccine Expansion Asked Washington (UPD Surgeon General Leroy E. Burney has asked polio vaccine producers to expand efforts until Sep tember because of a domestic shortage in some areas of the United States Burney said U. S. vaccine producers also had been re quested to screen orders, giv ing priority to those from areas where supplies are known to be low or the inci dence of polio is high. - Corvallis-(UPD-Ormond Lyle Ingram, 14, of South Corval lis, took his own life here to day because he didn't want to pick beans, according to the Benton county sheriff's office. holders and beneficiaries. "In large measure these dividends are a refund of premiums paid by the policy holder." Dividends have been rising lately and the holders of poli cies in force a long time have found their dividends growing steadily. Thus they have had a lighter burden of payments at a time in life when they needed it. The. Connecticut Mutual probably could have lowered costs to its policyholders by increasing their policy divi dends next year, according to Zimmerman. No Increases "In view of the heavy bur den of increased taxes now facing our company," he says, "ant increase in dividends seems out of the question." "In fact, only the fortunate circumstances of rising invest ment return and continuing favorable mortality exper ience will make it possible for the company to continue its favorable dividend scale and interest rate in I960.". . . - Present policies, of course, will continue at the premium rates at which they were written. Some insurance experts be lieve that-when , the new tax takes its bite, insurance com panies may have to raise, the premiums on new insurance written. This new tax hits 120 mil lion people - and that possibly is something of a record blow. Life insurance reserves, rep resenting the savings of, these millions, are greater than the total savings in savings and loan associations, Zimmerman points out. . Tillamook Lighthouse To fie Offered for Sale J Seattle (UPD Looking for a house with a real view? Uncle Sam is offering just the thing a lighthouse off the coast of Oregon. The General Services Ad ministration's regional office here said Wednesday that bids would be opened Aag. 10 tor the Tillamook Rock light house near Seaside, Ore. There are about 6,500 hos pitals in the U.S. Yakima Television Permit Granted Washington (UPD The Fed eral Communications Com mission has granted Yakima Valley Television Co a permit to build a new Channel 23 tel evision station at Yakima. The FCC order said a sec ond applicant for the channel, Yakima Television Corp., had voluntarily withdrawn. Ralph Tronsrud, head of Yakima Valley Television, agreed to reimburse the other applicant in the sum of $7,511.80, representing ex penses for preparation and fil ing of its application, the FCC said. ' ' : " Charles R. White and John W. Powell were the appli cants who withdrew. - Towns of 1,000 or .more population occupy about : one per cent of all U. S. lands. During Our Ju&y SALE! 5-IPoece BEDROOM SET INCLUDES: Double Dresser & Mirror Chest of Drawers Bookcase Bed Box Spring & Mattress FREE Bed Pillows Charcoal or Blond sen We Take Trade-ins on New Furniture Nothing Down--$ll50 per month We Buy fdr Less and Sell for Less! mm Hiway 99,' Central Point Phone NO 4-1226 OUR LOCATION SAVES YOU MONEY :4 ' m til ; hi ' NOW i SMS do mm of moey mim E 3 SET THE YEAR'S BEST DEAL OH THE BEST LOVEB BUICK EVER! When you see a man in an auto show room wearing a straw hat with red and white stripes go right in! You'll be at your Quality Buick Dealer's. And, you're about to save a hatful of money. The man is wearing his straw hat to let you know that there's never been as good a time to get such a great car at such a bar gain price. Immediate delivery, too, from Celebration Sale stock. SEE YOUR BUICK DEALER TODAY AND SAVE: SKINNER-BUICK-CADILLAC 143 S. Riverside
