From Page One
MEDFOBD MAIL TRIBUNE. MEDFORD. OREGON
FRIDAY. FEBRUARY 22. 19633
Specific Irregularities Listed by
Appling in Withycombe Probe
Appling listed specific ir
regularities turned up by his
audits. They ranged from un
explained use of cash to an
elevator and a deluxe cook
top with a remote control
pushbutton panel in the Hintz
house.
Appling noted, however, a
Clackamas county grand jury
twice declined to return any
indictments. -
Col. Lawrence M. Blaisdell
admitted he knew of what
he called minor procedural
irregularities on the part of
some of his superiors. He said
when he questioned them it
the time he was assured they
were proper.
Blaisdell told of one case
where Hintz ignored other
bids to authorize purchase of
a particular lawn mwer.
Blaisdell said he later found
out the base was buying the
mower from Hintz.
Blaisdell said when he
questioned Hintz, Hintz told
him he did not know whether
to commend or fire him. A
member of the guard for 18
years, Blaisdell said his si
lence was motivated in part
by respect for orders and "a
certain type of loyalty."
Loysltr Cited
"Had I known he was
crooked, my loyalty would
have ceased," he said.
Atty. Gen. Robert Thorn
ton told the committee of
several statutes that might
have bearing on the general
situation. They included of
fenses ranging from misde
meanor to felony.
Thornton said Gov. Mark
Hatfield so far has refused to
give him the authority he
needs to act on his own in
the case.
Thornton also said it was
difficult to make claim to
bonding firms -until a final
liability figure to the federal
government for misuse of fed
eral funds is established. A
fiscal officer estimated ear
lier the state liability might
reach $40,000. .
The Appling report includ
ed these items
A requisition for one
Tongue Point log at $195,
signed by Maj. W. H. Mosher
for Lt. Col. William M. Ad
ams. Appling said a copy of
the document examined at Se
attle "apparently had been
altered to show 195 logs at
a value of $13,065 and bore
the signature 'Anderson.' '
Appling said the logs were
sold to the Lynwood Lumber
Co. of Clackamas for $2,712
and the proceeds purportedly
put into the unauthorized'
fund.
SIGHTED THUG. GOT SAME
New London, Conn. - d'PU -Sailor
William j. McBritte lip
ped periscope while making
a check aboard a moored sub
marine Thursday and noticed
unusual activity in a nearby
parking lot. McBritte and
Chief James A. Brisetts rush
ed to the lot and caught
Michael Kope, 16, breaking
into McBrlttP' --- and turned
him over to police.
Sharp Cutback in Capital Gains Tax on Timber Sales Requested
By A. ROBERT SMITH Treasury Secretary Douglas i May on the post-war exDan- by members of the Timber, lev it believes in hnvina tim. miliinn A0ia..A .
Mail Tribune
Washington Correipondtnt
Washington-(Special-A big
new battle involving the tim
ber products industry is shap
ing up on Cap
itol Hill. The
Kennedy Ad
m i n istration
has asked
Congress for a
sharp cutback
in the capital
gains allow
ance on tim
ber sales one
smith of the most
beneficial features of the fed
eral tax laws for many com
panies in tile forest products
industry since World War II.
The industry is mustering
its strength and mapping
strategy to fight this feature
of the Kennedy tax bill. As
one official of the National
Lumber Manufacturers As
sociation put it:
"This is a gut issue for our
industry. All the stops get
pulled out on this one."
The tax bill, a complex of
suggested deductions and re
forms, is before the House
Ways and Means Committee.
Dillon several days ago give
the committee a detailed out
line of the administration's
wishes. But only Congress, by
legislative enactment, caa au
thorize tax changes.
Like many businessmen, the
lumber operators aren't com
plaining about the most pub
licized tax cuts the reduc
tion in corporation income
taxes from 52 to 47 per cent
and the cut in capital gains
taxes from 25 to 22 per cent.
Ordinary Gain .
What . has aroused them
deeply, is the special change
covering timber sales propos
ed by Dillon. It would treat
timber income of corporations
as ordinary gain, subject to
the 47 per cent corporate tax
rate instead of the lesser cap
ital gains tax which has ap
plied since 1944. The only
firms unaffected would be
those earning $25,000 or less,
which would be taxed at 22
per cent.
There is no mystery about
the hostile reaction of the ma
jor companies of the forestry
products industry to this tax
change. As Fortune magazine
reported in an article last
Four different ways to make going more fun than getting there
You can see why one of America's favorite
outdoor sports is driving Chevrolets, with four
entirely different kinds of ears like these to
Choose from. There's the Jel-smootk Chevrolet,
about as luxurious as you can go without
going overboard in price (has lots of new lower
upkeep features, too, like a flush-and-dry rocker
panel ventilating system that helps remove
t rust-causing salt and slush) ; the new low-cost
j Chevy II, a good-looking, fun-loving car that
would send any family packing; another per
ennial family favorite, the sporty Corvair,
whose rear-engine traction will make you think
that ice and snow are kid stuff; and for pure
driving adventure, America's only homegrown
sports car," Corvette now in two all-new ver
sions with looks that can stop traffic like a
rush-hour blizzard. Chances are you've already
picked your favorite. The next thing is to take
the wheel at your Chevrolet dealer's. If that
doesn't have you thinking of places to go, may
be you'd rather just have a ball around town!
Keeps Going Great
JET-SMOOTH CHEVROLET IMPALA SPORT COUPE
CHEVY II NOVA 400 SPORT COUPE
CORVAIR M0NZA CLUB COUPE
CORVETTE STING RAY SPORT COUPE
Now Bonanza Buys on four entirely different kinds 0 cars at your Chevrolet dealer's Showroom
COURTESY CHEVROLET
May on the post-war expaiv
sion of Georgia-Pacific Corp.,
"the easiest part of the inte
grated producer's profit is the
capital gains he gets from
cutting low-cost timber and
selling it to his own mills."
Because of the caiptal gains
feature. Fortune reported that
in 1961 Georgia-Pacific paid
28 per cent of its profits in
taxes, Weyerhaeuser paid 27
per cent and U.S. Plywood
paid 30 per cent. All of these
timber products producers,
and many others, would pay
higher federal income taxes
under the new Kennedy tax
bill.
The Treasury Department
reports that the distribution
of capital gains tax benefits
for 1959 gave the timber in
dustry $44 million, the ply
wood industry $11 million and
the paper industry $22.3 mil
lion. By cutting back on capital
gains. Treasury estimates that
timber will produce an addi
tional $90 million in tax rev
enue for Uncle Sam, $73
million from corporations and
$15 million from individuals.
In justification of the cut
back, Treasury states:
"The restriction on the cap
ital gain treatment, which is
now primarily of benefit to
the larger concerns, would
help restore a healthy compe
titive balance in the indus
try. Many believe that the
capital gain feature has in fact
been a source of distortion
and overstimulation which
has helped the larger firms
to achieve higher after tax
profits, caused artifical and
erratic bidding up of timber
prices, and thus squeezed out
many smaller sawmill operators."
In support of its claim that
capital gains treatment chiefly
benefits big corporations,
Treasury stated that out of
the total capital gains bene
fits of $77.7 million realized
in 1959 by over 7,000 corpora
tions in the forest products
industry, $47 million went to
20 corporations, each with as
sets exceeding $100 million.
Three timber companies got
$18.6 million, or 42 per cent
of the total timber industry
benefits. Two plywood pro
ducers got nearly $10 million,
or 90 per cent of the plywood
industry s total.
"There is no evidence that
the capital gain provisions are
helpful to the survival of
small contract cutters," said
Treasury. "While the econom
ic causes of the decline of the
small sawmill operator, who
is typically a contract cutter,
are complex, one factor i
apparently the squeeze on his
profits engendered by the
competition of larger firms
both in buying timber and
selling the product."
The industry s rebuttal is
being prepared in New York
by members of the Timber
Tax Committee affiliated with
the National Lumber Manu
facturers Association. The in
dustry hopes to kill this fea
ture of Kennedy's tax bill,
and they hope for support
from the many members of
Congress from states in which
forest products are important,
starting with Rep. Wilbur
Mills (D Ark.), chairman of
Ways and Means.
Another reason given bv
Treasury for the cutback is
that "capital gains treatment
is often a factor contributing
to accelerated liquidation of
timber."
Heavy Borrowings
Without identifying the
firm. Treasury said "X Corp
oration has been buying large
blocks of timber with heavy
borrowings backed by accel
erated harvesting for debt re
payment. This corporation has
stated that as a matter of pol
icy it believes in buying tim.
berland and standing timber
with borrowed money, using
common stock to raise capital
to build paper, lumber and
plywood mills, distributions
facilities, and for merchandis
ing, in order to exploit tim
ber ownership."
"The present tax law thus
fosters a type of operation
which is basically inimical to
sound husbandry and develop
ment of the nation's forest
resources," it said.
Another tax change affect
ing timber would list refor
estation as an expense
against current income, along
with such items currently al
lowed like fire breaks, soil
preparation, temporary roads
and timber stand improve
ments. Reforestation costs un
der existing law must be cap
italized.
This revision would save
the industry an estimated $10
million and "is designed to
maintain and increase the
pace of private reforestation
efforts to meet projected de
mands," Treasury explained.
The NLMA regards this
welcome change like "getting
a mouse for an elephant!" The
elephant is capital gains and
they are preparing for a hard
fight to keep this jumbo benefit.
Qtiie bible
3 SPEAKS Q
TO YOU
Sunday, 9:00 a.m.
K-SHA-860kc
nil ul'i CVuliai Scitxn preirart
"Gaining Dominion Ovtr Ago"
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THIS IS rff.
MO BULL J
BUT A BUFFALO NICKEL
And It Will Buy A Lot At
WESTERN THRIFT'S
BIG NICKEL SALE!
ALL DAY SATURDAY (TOMORROW) 23 FEB.
15c EPSOM SALTS
Vi Lb. St. Joseph's .
5
49c GEM RAZORS
Discontinued Model
5
15c Plastic Clothes Pins
SEVEN COIL SPRING
Multi-Colored - Pkg. of 12
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19c RUBBER SINK STOPPER
Wide type for all sinks
5
State Librarian
Picks Books Over
Additional Staff
Salem -IUPU- State Librarian
Eloise Ebert chose books over
the governor's recommenda
tions when put on the spot
Thursday by the ways and
means education subcommittee.
When asked by Rep. John
Mosser (R-Portland) to choose
between books and the gov
ernor's recommendations, the
librarian replied, "you're try
ing to put me on the spot,
aren't you?"
Yes, I am, Mosser said.
"I'd rather have the money
for books."
Miss Ebert appeared before
the subcommittee to outline
the state library's $1.1 million
budget request. The budget
includes funds for several new
staff positions asked by the
governor.
Services 'Pathetic'
She termed library services
to state institutions "pathetic"
In many cases and said the
Oregon library system would
not be adequate "even if
budgets were increased."
She said the state s library
is "plagued by an increasing
volume in publishing, and a
steady rise in the cost of li
brary materials."
"Today s mail included 65
reference requests, and more
than 500 requests for different
books, she said.
She explained that local
libraries "do not have the
material," and that the state
library supplements all li
brary services in tiie state.
She said in addition to
being the "center of informa
tion," the library was subject
to educational trends.
Purchase of fiction is steadi
ly decreasing, while more
science and technology books
are being added, she explained.
in
15c POLY TUMBLERS
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9-oz. STORAGE CADDY
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25c RAZOR BLADES
PROFESSIONAL BRAND
Double Edge-Pkg. of 5
ASPIRIN TABLETS, 12's
McKesson or St. Joseph..
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PLASTIC RAIN BONNET
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Drains, Strains, Mashes
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MEASURING SPOONS
15c Value-Set of 4 ...
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Halo Lustre Creme, etc..
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RAYON HAIR NET 3 for 5c
BOW AND ARROW SET
HARDWOOD BOW
2 Cup Arrows, Target ...
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Georgia-Pacific
Offer Accepted
Portland - flJPD - Georgia
P i c I f i c Corp. announced
Thursday that stockholders of
St. Croix Paper Co., Wood
land, Maine, have accepted
an offer from the Oregon firm
to acquire St. Croix.
33c MEROSOL Antiseptic
For Minor Cuts, Bruises ...
5
5c CANDY BARS 2 for 5c
WELCH'S PEANUT BUTTER PUFFS
CRUNCHY JESTERS - COW BOY
CLARK BARS-CHARMS-GO BAR
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FULL OF ALMONDS, Etc.
PARK & SHOP SILVER DOLLAR STAMPS
Add Federal Tax en Taxable Merchandise
IJUAS
6c KING EDWARD CIGARS
Each
5
u
IT)
25c DOUBLE EDGE BLADES
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and SPATULA ..;
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Long and Short Types..
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& COLD DRINK CUPS-Pkg.
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White Cross Wet Proof
29c PAINT BRUSHES gj
1-Inch Pure Bristle 3
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Odds & Ends-SM, 11 A, 40B
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25c ENVELOPES
No. 10 Air Mail -Pkg J
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Special for Rover 3 for 3
w
in
PRICES GOOD
SATURDAY ONLY
WHILE STOCKS LAST
WASHINGTON BIRTHDAY
SPECIALS STILL IN EFFECT
Free Delivery In Medford
Ml
rV
MttCAlPTION
PICIAlllrS.
MEDFORD'S ORIGINAL DISCOUNT STORE
SO
CINTRAh
eiAk
77J.5J71
OPEN WEEK DAYS S TO 8 - FRIDAYS S TO 9
SUNDAYS 10 TO 2
in
w
m
in
m
9TH & BARTLETT
MEDFORD
PHONE 772-6115
The Maine firm has about
700 employees.
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