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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Aug. 3, 1959)
Neuberger Pessimistic About Action on Alcan Highway Bill By GEORGE COFFEY United Press International Washington -UPD- Sen. Rich ard L. Neuberger said today he is pessimistic over chances of any congressional action! this year on his bill for joint U. S.-Canadian paving of the Alcan highway to Alaska. But the Oregon Democrat said he still hopes a settle ment can be reached on the proposal next year. Neuberger said he does not agree with some other Amer icans who feel a decision on new transportation links with the new state should be put off until 1961. "The longer we delay this the more it is going to cost," the senator said. "The need for improved connections with Alaska is pressing." Neuberger has introduced a measure under which the United States and Canada would contribute $66,000,000 each toward improving the unpaved section of the Alcan highway running through Ca- In the Day's News By FRANK JENKINS Mr. Keith Funston, presi dent of the New York Stock exchange, has written a piece in the Exchange magazine that ought to be widely read and carefully digested. In it, he attacks double tax ation on dividends-which, he says, is "a totally unfair tax that discourages the very thing we need for our contin ued prosperity, which is a high level of investment .in owner ship of industry (by which he means the putting of savings into shares of stock in sound American enterprises). He adds that too much of our industrial expansion has been financed by BORROW ING and not enough through sale of stock. IlfHAT is double taxation on ' dividends? Mr. Funston explains that the double taxation comes about in this way: The corpo rations (big and little) are taxed up to 52 ' per cent on their earnings, WHICH IN CLUDE THE DIVIDENDS THEY PAY. Stockholders who receive the dividends pay in come taxes on them except for the small relief given by the 1954 law which allows an exemption on the first $50 and permits a four per cent credit on the rest. IlfHY is trat unfair? It makes you pay TWICE on your dividend income if you own stocks-once when the corporation earns the money out of which it pays the divi dend and AGAIN when you get your dividend and report it in your income. BUT, you will say (if your thinking is inaccurate and confused), owners of stocks are BIG SHOTS. As big shots, they OUGHT to. be stuck with the bull; of the taxes. Wait a minute. There are about 12 MIL LION owners of listed securi-ties-that is, securities that are listed on the nation's big ex changes. More . than half of them are in the $5,000 a year income bracket. There aren't 12 million big shots in the U.S. So, it follows, a LOT of little people are own ers of shares of stock in Amer ican industries. Double taxa tion of dividends hits these little people along with all the rest of the owners of stocks. THIS DOUBLE tax on divi dends, Mr. Funston says, is TOO HIGH. He adds: "Raising a tax too high hurts the economy (which means ALL of us) and eventually re sults in a loss of revenue to the government." I S HE speaking truth? Or is he kidding us? linSLL, it so happens that ' here in Oregon we have a perfect example of what he is talking about. Quite a number of years ago, there were 14 breweries in Or egon. Then Oregon got short of money and the legislature started looking around for new sourc es of income. It came to the conclusion that the barrelage tax paid by Oregon breweries was too small, so it DOUBLED the tax. linTH what result? The result is that in all of Oregon there is now only ONE brewery. Only one brew ery to pay taxes to the state. Only one brewery to buy Ore gon hops and Oregon barley. Only one brewery to provide brewery jobs. Only one brew try to furnish the valuable brewery by-products that are useful as livestock feed. And so on. That's what happens when unfair and unwise taxes are levied on industry. nadian territory. Neuberger's bill, which has met with opposition both here and in Canada, has been gath ering dust all year in the Sen ate Public Roads subcommit tee. No hearings have been scheduled and Neuberger does not expect any will be held this late in the session. Some senators have urged holding off consideration of his bill until the whole ques tion of new connections to Alaska can be aired. Sen. Warren G. Magnuson (D-aWsh.), a member of the Alaska International Rail and Highway commission, said nothing should be done until the commission finishes a study on the overall prob lem, due to be submitted to Congress by June; 1961. Magnuson said there is a dispute over whether the two nations should go together to pave the existing Alcan high way, build a new highway, construct a new rail line-or do all three. There is fear that if the United States, through the Neuberger bill, committed it self to fixing up the present highway Canada would not help out on another thorough fare or a rail link, Magnuson said. "There is some suspicion that western Canada at least is more interested in improv ing transportation to its own undeveloped areas than it is in getting routes into Alaska," he said. Package Deal Advocated Magnuson, who also is chairman of the Senate Com merce committee, said he ad vocates some sort of "package deal" which would embrace either a new highway or a rail line along with the Alcan improvement. Under Neuberger's bill, 1,221 miles of Alcan highway would be paved, all in Cana da. Magnuson and others want consideration of a proposal to extend existing rail lines in Canada 1,000 miles on up to Fairbanks. Talk of a second highway to Alaska has not yet settled down to a discussion of the proposed routes or mileage involved. The Neuberger bill talks in terms of a total $132,000,000 expenditure, but Magnuson said it will take about $500, 000,000 to do an "adequate" job to Alaska, including both rail and highway connections. "It won't hurt us to wait until 1961 to come up with a more comprehensive plan," Magnuson said. OUT OF TRAP These firefighters are part of 2b men temporarily trapped by racing forest fire at Pollard Flat in Shasta County, Calif. The fire they were fighting "crowned" (i. e., jumping from tree to tree faster than a man can run). The men escaped by fleeing into the already burned-out area. More than 800 men have been fighting the fire, which has burned some 2000 acres and was still out of control. for EXTRA fun cm n HfF Bl FH M A Bit u m uu uu u yuw u u V- Krai Arrange for your vacation money at America's best-known i consumer loan company Call or visit Household today. You'll find a bright, cheerful office . . . courteous, helpful people waiting ' to serve you. YouH do business in complete privacy with a friendly, capable HFC manager. He's an "expert" in arranging loans for any good purpose. You'll choose your own repayment plan. You'll leave with a feeling of confidence, because you've done Dusiness with America's oldest, most respected consumer finance company. 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" Capehart Favors Rockefeller Washington (LTD Gov. Nel son A. Rockefeller of New York had new support today for the GOP presidential nom ination from a former backer of the late Sen. Robert A. Taft. Sen. Homer L. Capehart (R-Ind.), generally regarded as a member of the Republican conservative wing, came out for Rockefeller amid predic tions that Vice President Rich ard M. Nixon's chances for the nomination have been helped by his Russian trip. House Republican leader Charles A. Halleck (Ind.), meanwhile, announced his willingness to be the running mate of either one. Halleck said he would accept the GOP vice presidential nomination if it were offered to him. Halleck refused to declare a preference between Nixon and Rockefeller for the top Spot. However, he said he be lieved Nixon would win the nomination if the GOP con vention were held today. Rockefeller said at the gov ernors' conference in San Juan, Puerto Rico, that he would not rule out the possi bility of becoming a candidate for the nomination although he is not now a candidate; He said Nixon was the leading candidate. Capehart, who backed Taft for the Republican nomina tion in 1952, said Sunday he had no doubt that the GOP could win next year if Rocke feller headed the ticket." LATEST EQUIPMENT Cheshire, Conn. -flJPD- The Cheshire Fire Department re cently acquired an additional truck - a 1913 Model T still in running order. The Great Smoky moun tains are so-called because they are- surrounded by an ever-present sort of blue haze. MAIL TRIBUNE, Modford, Or. Monday, August 3, 1 959 5 COOLIDGE IS CHEESE MAN Plymouth, Vt. - (DPD John Coolidge, the son of former president Calvin Coolidge, is a cheese manufacturer in this town where " his father was born. . 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