Dillon Discloses
Examples of Items
Deducted on Taxes
Washington -0JPD- A cor
poration president has been
taking friends on a hunting
trip to Wyoming every year,
A manufacturer has been pay
ing $1,800 a month rent for a
hunting lodge. A beverage
maker spent more than $10,-
000 entertaining customers
and their wives at the Ken
tucky Derby.
There is a businessman's
club in which every member
is subposed to' give a big
party once a year for the
others. A dairy owner took
his wife with him on an Afri
can hunting safari. An under
taker bought a yacht on which
he entertained visiting cler
gymen and other undertakers.
It cost a manufacturing
firm $127,067 a year to main
tain a private club house and
entertain customers there. A
corporation executive spent
$1,500 for a 12-day vacation
trip to Las Vegas for himself,
his wife, a customer and the
customer's wife.
Tax-dtductible Expanses
All of this "luxury spend
ing" had at least two things in
common:
-In each case the federal
Treasury "subsidized" the
cost, lnder existing law the
taxpayer-or his employer if
he footed the bill-was al
lowed to deduct all, or most,
of the expense from taxable
income. A dollar of "deducti
ble" entertainment costs a
corporation 48 cents and the
Treasury 52 cents.
-In each case such deduc
tions for "luxury spending"
would be barred or sharply
curtailed by changes Presi
dent Kennedy wants Congress
to make in tax rules govern-
1 n g business entertainment
and expense account spend
ing. No longer could taxpay
ers charge off on their tax re
turns - the cost of buying
yachts.
Without naming names,
Treasury Secretary Douglas
Dillon presented about 50 ex
amples of taxdeductible "lux
ury spending" to the House
Ways and Means committee
Wednesday and outlined the
administration's plan for put
ting an arbitrary stop to it.
Part of in Tax Program
The plan is just one part
of a seven-point tax revision
program the administration is
trying to push through Con
gress. The overall proposal
would grant $1.7 billion a
year in tax relief to business
to encourage economic ex
pansion and impose a slightly
heavier tax burden on other
taxpayers.
The administration's tough
rules on business expense, if
enacted, would bring an es
timated $250 million into the
treasury, and force some
change in the American way
of business.
Yacht Costs Out
Businessmen would be
barred from taking any tax
deductions for the cost of buy
ing or maintaining yachts,
hunting lodges or swimming
pools, or for the cost of enter
taining at parties, night clubs,
theatres, country clubs and
fishing trips. Deductions for
country club dues would be
barred.
Tax deductions would be
limited to $10 a year for gifts
to any one individual and to
$30 a day for food and lodg
ing expenses on business trips.
A business couldn't deduct a
food and drink check totaling
more than $7 a day for any
one customer or business associate.
JUST IN TIME
Philadelphia (UPD Mrs.
Dorothy Woods, a juror in a
civil case, leaped to her feet
in court Thursday and an
nounced that her roast pork
was still cooking. Court Tip
staff Louis Levens went to the
Woods' home and turned the
oven off.
f COMPETITIVE IT
( P plus- I our Jlfp"" J
QUALITY V lmM Um J
The R. A. Holmes Agency
SINCE 1909 - -..-r'-w
Medical Center Bldg. Phone SP 2-4444
MedfordSIWTribune
SECTION B
MEDFORD, OREGON, FRIDAY, MAY 3, 1961
PAGES 1 to
CHECKS SYSTEM Western Electric In- ford telephone users will "talk through"
staller Dick Gallant checks the heart of these switches on any calls to new Ashland
Ashland's new dial telephone system, the numbers after 11 p.m. Saturday, May 6.
gleaming banks of crossbar switches. Med-
i iff "In " ' '" w
UU ' in.
CAPTURED - James Scott
Stephens, 16, above, was cap
tured as he hitchhiked near
Kadoka, S. D., and confessed
he shot and killed two young
girls on a flower-picking out
ing near Holland, Mich.
(UPI Telephoto)
VARIETY OF CROPS
Washington A m e r 1 c a n
farmers grow about 200 kinds
of plants while farmers
around the world raise 2,000
species.
70 Attend Special
IRL Reception for
Foreign Students
About 70 persons particl
pated in the special Interna
tional Relations league's re
ception for foreign students
and installation of 1961-62
officers this week at Medford
High school.
The event, the first of its
kind held by the high school
organization, drew interna
tionally-minded students from
Hedrick and McLoughlin Ju
nior High schools, Medford
High school, and representa
tives of local civic groups.
Represented at the reception
were local chapters of the
American Field service, the
American Association for the
United Nations, Rotary Inter
national, and Altrusa club.
President Diane Lewis wel
comed guests, and John Alan-
sky outlined the goals and
objectives of the IRL. . Dur.
ing the ceremonies, Alansky
presented the local club pres
ident with several books the
Medford club earned by plac
ing third in state-wide com'
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Print Kimonos. Raglan sleeves,
ribbon-bow snap-fasteners. Infant
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neck, can't-bind underarms. Dry
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Training Pants. Double panel front
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Snap-side Shirt. Short sleeves, can't
bind underarms, no side seams, dry
shirt diaper tapes. Whiter-thin-white.
Sizes 3 mos. to Vh yrs. 'for JJJ 39
Pacific Telephone
To Use New Ashland
Equipment Saturday
Pacific Telephone North'
west's $730,000 telephone im
provement project for Ash
land will start serving custom
ers at 11 p.m. tomorrow.
For Medford telephone
users calling Ashland it will
mean:
1) Checking the telephone
directory for new Ashland
listings, since every telephone
there has a new seven-digit
number beginning with 482.
The last four digits are also
petition at the state IRL con
ference earlier this year.
Alansky was elected presi
dent of all Oregon IRL's at
the annual meeting at the
University of Oregon.
Introduced at Reception
Introduced at the reception
were Don Kondo and Jill Du-
Croz, AFS foreign exchange
students from Japan and Eng
land, who are now complet
ing their school at Medford
High. During the evening the
two students answered ques
tions and visited those attending.
Installed as Medford IRL
officers for 1961-62 were
Carl Washburn, president:
Joel Gregory; first vice pres
ident; Jim Albright, second
vice president; Ruth Milligan,
secretary; Jim Tungate, treas
urer; ana jui Barnes, histor
ian. Club member Marsha Bel
knap presented corsages to
the club 5 advisers, Mrs. Jus
tin Smith and Miss Dee Bar
rel!. President Diane Lewis ex
plained that the evening re
ception was designed to both
honor the foreign students
and to introduce the Interna
tional Relations league to the
public, as well as install the
newly-elected officers.
Additional foreign students
from Southern Oregon col
lege, Ashland, had been in
vited, but were unable to at
tend because of campus con
flicts. Junior high school
freshmen were Invited to ac
quaint them with the IRL at
the high school as prospective
members.
Sponsors Activities
Throughout the year, the
Medford High IRL sponsors
school and community proj
ects concerned with interna
tional affairs. Programs dur
ing the past few years have
included cooperation with the
American Field Service pro
gram, holding magazine,
book and clothing drives for
persons abroad, encouraging
pen pals with foreign stu
dents, providing a scholarship
for the AFS summer-exchange
student, sponsoring special
films, lectures, and panel
discussions on foreign affairs,
helping to create IRL's in
other southern Oregon high
schools, and playing a lead
ing role in extra-curricular
activities at MHS.
Funds To Beat
Russia To Moon
Nearly Tripled
Washlneton-OIPU-The House
Space Committee has added
$126.6 million to President
Kennedy's space budget and
nearly tripled funds for
America's attempt to beat
Russian cosmonauts to the
moon.
The committee Thursday
formally increased by $37.9
million the $88.7 million in
crease in the space budget
that it had tentatively ap
proved Wednesday.
The largest boost - $50.2
million - was for the Apollo
spacecraft. Apollo is designed
to carry three U.S. astronauts
around the moon. The trip,
now scheduled for 1967,
would have to precede an ac
tual landing of the moon's sur
face. Booster Research
The committee also granted
$38.5 million more for re
search on two space boosters
powered by nuclear fuel and
solid propellants. Kennedy in
dicated at a recent news con
ference that those'' boosters
might offer America's best
chance to surpass Russia in
the space race.
Chairman. Overton Brooks
(D-La.) said the money hikes
were designed to instill a
sense of urgency into the U.S.
space program.
The increases were part of
a bill raising the money au
thorized for the National Aer
onautics and Space Adminis
tration for the fiscal year
starting July 1 from the $1.23
billion Kennedy requested to
$1.36 billion. The actual
money would have to be ap
proved in a separate appro
priations measure.
new. A typical number will
be 482-0010.
2) A different set of sounds
will be heard while dialing
Ashland numbers. After dial
tone and the click of the first
digit (4), the next sound will
be that of the Ashiand phone
ringing. This "silent" dialing
is the result of the new cross
bar switching equipment in
the Ashland central office. .
Take Couple of Minutes
The actual change from the
old to the new phone equip
ment will take a couple of
minutes. But preparations and
final tests will be in progress
all day Saturday.
Protective fuses will be
pulled in the old central office
building at 111 Oak st. which
will "kill" the service from
that location.
At the same time, techni
cians In the new building at
East Main and Sixth sts. will
pull blocking devices out of
the dial switches and the
gleaming banks of equipment
will "click to life" in tune
with the dialing habits of Ash
land telephone users.
Call Emergency Agencies
As soon as the new dial
system is activated, calls will
be made to all emergency
agencies to make sure their
phones are operating. Tests
will also be made in the cen
tral office to see that all sub
scriber lines are working. -
It will take only a few
minutes to accomplish the
changeover. But it has taken
several years of planning and
work to bring the improve
ment into being.
After the Saturday switch
over. Western Electric em
ployees will start removing
the equipment from the old
central office building. This
should be accomplished with
in a month, according to Dave
Rittenhouse, Western Electric
supervisor for the Ashland
project.
Domestic Farm
Food Prices Rise
Washington -(UPI)- The Agri
culture Department said to
day retail prices of domestic
farm foods during January
March were 4 per cent higher
than during the same period
a year ago.
The department said the In
crease resulted from a 6 per
cent rise in farmers' prices
for these food products and
a 3 per cent rise in charges
for marketing them.
A moderate rise in market
ing charges is likely in the
months ai.ead, the department
said in its publication, "The
Marketing and Transportation
Situation."
The marketing charges in
the first three months of this
year averaged about the same
as in the last quarter of 1960.
Bob c
Taylor v'. T. ,-xf f
Castro Said To See
Revolution in West
Washington - IUPI) - Premier
Fidel Castro looks on his suc
cess In turning Cuba into a
Communist camp as the be
ginning of a Red revolution
in the entire Western Hemis
phere, the National Press Club
was told Thursday.
United Press International
correspondent Henry Ray-
mont, who recently returned
from six days in a Cuban
prison, said Castro Is con
vinced that "there will be
Communist revolution in the
United States before he is
ousted from the Caribbean
Raymont, speaking before
about 400 persons at a lunch
eon, also said Castro was not
taking orders from Moscow
on how to run things in this
hemisphere. He said Castro
now was advising Russia on
how to spread Communism in
the Americas.
St. Helens Fisherman
Drowns in Columbia
St. Helens -(UPD- Bill Hawk
ins', 24, St. Helens, drowned
in a Columbia river slough
in a fishing accident about
five miles south of here
Thursday.
Hawkins fell Into the water
when a 14-foot boat capsized
and drowned as he attempted
to swl mto shore.
His body was not recovered.
Gary Cooler Enjoys
Hearing Messages
Hollywood - (UPD - "I know
that what is happening is
God's will. I am not afraid
of the future. Please make
sure everyone knows how
much their messages have
meant."
That simple statement was
issued Thursday from the bed
side of actor Gary Cooper
who is reported dying of can
cer. Cooper said that his wife,
Rocky, "reads many of them
(the messages) to me and they
have added greatly to my
peace of mind."
Dr. Rexford Kennamer said
there has been no significant
change this week in Cooper's
condition.
Cooper will be 60 years
old Sunday.
Hatfield Will Attend
Governors' Conference
SALEM - (UPD - Gov. Mark
Hatfield leaves for the West
ern Governors' Conference In
Salt Lake City May 14. He
will discuss the Boardman in
dustrial park as an example
of how Oregon is working to
build its economy.
Hatfield will bring up the
Boardman project May 16 dur
ing a panel on economic de
velopment. He Is chairman.
Hatfield is expected to
make suggestions for develop
ing a Western states economic
data processing center.
SHOPPING
CENTER
TOT
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OP
Mother Day
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