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.
Life insurance
available on loans
mt low group rat
Cart MONTHLY PAYMENT HANS
. 24 20 12 6
pajrmtt pttymtt paynUs psymts
109 5 5.90 $ 6.72 $10.05 $18.46
206 11.81 13.44 20.09 36.92
300 17.71 20.16 30.14 55.38
500 28.86 32.97 49.64 91.66
1000 53.89 62.21 95.64 179.56
1500 77.87 90.38 140.57 1266.36
Bouhoid's atarf " monthly rale of 3 mm
Hat part of a balance mot txctediut 1300, 2 am
that part of m Wok im cnxss of SJOO omt mat
txaadtm? $500. mmd 1 om amy mmatmimr.
OUSEHOLD FINANCE
Ccyufiatioti cfTfledfotd
128 E. Main St., 2nd Floor SPring 3-5301
Hows: 10 la 7 MoiL-10 is 530 Tues. ftru FrL-dosed Sat
iMMMifiMMiMMnnn-1Hiiff7rilir iiirF"T"mMiffln W
MAN EATER? Aquarium expert inspects the latest shark landed by fishermen on
California coast This one, seven feet long and weighing 218 pounds, was caught at
Tomales Bay, Calif., by Felix Konatich. The expert, W. I. Follett of Steinhart
Aquarium in San Francisco, believes the sharks are being attracted by the heavy ''
run of sea bass. "
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.
. The number of immigrants
added to Canada's population
in 1958 was only about 50,000
compared with more than
200,000 the year before.
GLOGSTON'S
Metal
Weather Stripping
and Screens
Estimates Gladly
Phon SP 31014 Evenings
c
Yom engine runs its smoothest
on this super octane, super m
J --If '- JlftlM !
i -
YOU GET OVER 100 0CTAIIE
AND MUCH MORE!
V.
SUPER POWER
For take-offs, hills, passing
Super Shell is the most powerful
gasoline your car can use. It's
packed with aviation power in
gredients produced by Shell
world's largest supplier of com
mercial aviation fuels.
SUPER MILEAGE
Super Shell's "power pack", of
aviation fuel ingredients converts
automatically to extra mileage
when cruising.
i 1
SUPER OCTANE
Super Shell has over 100 octane
an octane rating so high that
engine knock is no problem.
SUPER SMOOTHNESS
It's the TCP additive in Super
Shell that will make your engine
run smoothly. Almost immedi
ately you'll feel the difference.
TCP actually tunes your engine,
while you drive.
Shell's Trademark for this unique gasoline
additive developed by Shell Research
i
uper Shell with TCP
Start saving with Shell today