Legislators Divided Over
ODinion amnntr th
Jackson county's state legis
lators is somewhat divided
over what would happen if
the referendum on the new
tax measure is defeated in
the October election.
Two of the representatives,
John R. Dellenback and Ed
ward Branchfield, both Re
publicans, appeared at the
Monday luncheon of the Med
ford Chamber of Commerce
Roundtable to answer a list
of nine questions drawn up by
the political affairs commit
tee of the chamber.
The third lawmaker. Demo
crat James A. Redden, was
unable to attend the luncheon
but instead submitted his
answers in writing which
were read to the group. Re
publican Sen. Lynn W. New
bry, who also was unable to
attend, had commented on the
questions at last Monday's
Roundtable meeting.
Questions Reviewed
The questions, followed by
representative comments by
the legislators, were:
1. What will be the status
of our economic fiscal policy
if the referendum on the new
tax measure is defeated in the
October election?
Redden predicted "chaos."
Without the needed $60 mil
lion in revenue, he said the
result would be a "drastic
cut" in services, particularly
in the higher education budg
et. He also forecast a sharp
rise in local property taxes
is a consequence.
Branchfield said he thought
the state would be in "serious
difficultr" if the referendum
were beaten at the polls, but
he felt "chaos" was loo strong
a word. He agreed with Red
den, however, that there
would have to be a drastic
curtailment of services, par
ticularly in the field of educa
tion. Taxes Would Go Up
"If the basic school support
is cut," he said, "local proper
ty taxes will go up." He said
the choice would be either to
effect "reductions in spend
ing," or to have the legislature
meet in special session for
passage of a different tax
measure.
Dellenback said there
"would not be- chaos," but
rather the legislature would
have to meet to do something
about it. He was pessimistic
about the chances of a better
tax measure coming out of a
special session of the legisla
ture, however.
"There is no guarantee a
new session would do any bet
ter than the last one," he said.
Since there are no limitations
on what business could be un
dertaken by a new session,
Dellenback said a "Pandora's
box might be opened."
2. We are unable to under
stand why the legislature
voices concern about the peo
ple supporting the sales tax
and then turns around and re
fuses the sales tax for a vote
by the people.
Support Was Late
Redden said the bill was not
referred because those with
divided attitudes toward the
measure were unable to work
out a compromise, and be
cause strong support for the
sales tax "was late in coming."
4-H NEWS
Daffy Dills
Awards were the main
Items of business at the last
meeting of the Daffy Dills 4-H
club. Mrs. Arnold Bohnert,
president of the Central Point
Garden club, presented sever
al awards received at the re
cent convention of the Oregon
Federation of Garden Clubs
In Portland.
The Daffy Dills received a
blue ribbon for outstanding
achievement in junior garden
ing in the state: James Anhorn
received a trophy and check
as the "All Around Junior"
and Mrs. Anhorn, our leader,
received an award of achieve
ment for outstanding junior
leadership in Siskiyou dis
trict. Marsha Wilson and Zelda
Clark received first place
youth awards for the two divi
aions of a litterbug coloring
contest. Mrs. Bohnert also
presented James and Cathy
Anhorn trophies from Mr. and
Mrs. C. C. Hoover for their
blue ribbon tree planting pro
ject.
Entry blanks for the com
Ing fair exhibits and contests
were discussed and each mem
ber reported on their garden.
At the Central Point 4-H Pre-
fair. Marsh and Cathy re
ceived blue ribbons. Andrea
and Jane received red and
John, white, in a flower ar
ranging contest.
At a recent meeting Mrs
Piclaet. Perry Pielact, De
Anne Trautman and Martha
Van Middlesworth of Merry
Mulcheri 4-H Club and Susan
McCoy. Cindy Gordcn and
Diane Jantzer of the Little
Gardeners were our guests to
see a filmstrip on flower
arranging - "Adventuies with
Flowers."
Bob Snook is a nrw mem
ber with a large vegetable
project.
Lee Korner, '
Reporter.
He predicted a sales tax would
have failed in the fall election
had it been referred, but that
"if the present tax program
goes into effect, a sales tax
will probably look much bet
ter two years from now."
Branchfield reminded the
group that attitudes toward
the sales tax were about
equally divided in the House,
but that the bill as such was
never actually voted on. He
said he would support a sales
tax if it were part of a "co
ordinated over-all tax pro
gram." He warned the audi
ence, however, not to expect
"miracles" from such a tax if
it should be passed some time
in the future.
Dellenback said he had
some serious reservations
about a sales tax. In particu
lar he attacked the argument
that a sales tax would gain
revenue from the tourist popu
lation that visits the state j
every year. !
A Specious Argument !
"This is a specious argu-j
ment," he said, "because tour
ists don't spend money on !
items that would be taxable i
under the measure." The sen-;
ior representative also cau
tioned that it is "too easy"
to increase a sales tax some
time in the future so that ulti
mately the individual's tax
burden would be greater than
it is now.
3. The logging Industry pre
sented a convincing case for
fair treatment on PUC rates,
indicating that they use Ore
gon's highways only about 25
per cent of the time on the
average and yet their rates re
main the highest in Oregon
while heavy freight trucks
using our highways 100 per
cent of the time get a reduc
tion. Why?
The three representatives
pointed out they had voted
against the bill, and that large
ly through their efforts a
proposed flat rate fee increase
to 15 per cent had been re
duced to 10 per cent. Redden
said a logging Industry relief
bill should be introduced in
the next session of the legis
lature. Reasons For Failure
4. What are the major rea
sons v hy the constitution
failed to pass the Senate and
where do we go from here?
Redden said it failed be
cause of the Senate's "general
dislike of the article dealing
with the so-called 'single ex
ecutive.' "
Branchfield said that it an
educational program were
conducted to Inform the pub
lic about provisions , of the
proposed constitutional revi
sions, he saw a "good chance"
for passage in the 1965 ses
sion.
Dellenback said passage of
the measure would have been
a "forward move for Oregon."
He said that organized labor
unions had taken a stand
against the bill but, to his
knowledge, had never stated
the reasons for their opposi
tion.
Eliminate Requirement
5. Other states have elimi
nated the inequitable full
crew requirement on railroads
because of technological prog
ress. Why Is it impossible to
do the same in Oregon?
Redden said he felt the leg
islators were concerned about
the safety of the public if the
third brakeman were elimi
nated." Branchfield said that
the Senate bill, which died in
the upper house, was "heavily
lobbied," and that the law will
never be changed until the
railroads and the unions
agree on a legislative pro
gram." Dellenback agreed
that the "safety factor" was
the reason for defeat of the
measure.
6. Does the individual legis
lator think that the fiscal
policy of the stale is condu
cive to economic expansion In
Oregon? Redden said "there is no
one single item discouraging
industrial growth, but he
urged a study of the Oregon
business climate, one which
would cover "taxes, power
rates, freight rates, availabil
ity of freight cars and other
aspects."
Branchfield said flatly
"yes," he did think the fiscal
policy encouraged economic
growth. "The total tax pro
gram doesn't prohibit indus
tries from coming into the
state," he said. Some changes
are needed, however, he
stated.
Dellenback said that many
factors have to be taken into
consideration in such a mat
ter, not just the tax structure,
although he conceded the "tax
picture perhaps gives rise to
some problems."
Industries looking for an
opportunity to relocate weigh
a variety of elements in choos
ing a new site, he said. He
said that so far Oregon can't
compete with California and
Washington because those two
states have a greater con
sumer market right now than
Oregon does. He pointed out,
too, that Oregon's freight rates
are undoubtedly a problem
now.
Failure of Receipts Tax
7. In reference to H B. 1033,
please explain reasons for the
failure of our legislators to
pass a net receipts tax which
would have offset the inven
tory tax.
Redden said that he had
voted against the bill, which
passed the House, because he
considered the "technical de
fects in the . . , bill . . . most
serious." It wouldn't elimi
nate the tax, he said, it would
just create another tax.
Branchfield saia mat in his
opinion the tax experts "were
divided" on whether the bill
was good or not. He said he
considered the present inven
tory tax law "unfair," and
that he had voted for the pro
posed measure, but that it
had been killed in the Senate.
Dellenback said that H.B.
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MEDFOHD
IVhat Could Happen If Referendum
1033 was a "bad bill" and
"should not have been
passed." He referred to a bill
passed by the House in 1961,
but which died in the Senate,
as a "good bill." This one
would have provided only
"token relief," he said, and
would in effect have created
a new tax. He granted it
would have provided perhaps
a "minimal relief" for some
now, but warned it would
have proved "dangerous" in
the future.
Why Tokan Budget
8. If Civil Defense had so
little value, why was a token
budget passed instead of eli
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minating it all altogether?
Redden denied that the
budget of $47,094 was a token
budget. He said he felt Civil
Defense "is of value to the
state," and that the present
appropriation "will allow the
agency to operate efficiently
in coordination with existing
agencies such as the Oregon
state police, local police and
National Guard."
Branchfield declared that
"Civil Defense is a big boon
doggle," and a "waste of the
taxpayers' money." He said
that "fall-out shelters are a
snare and a delusion. This is
a federal problem," he stated.
Your
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OREGON
"and we should completely do
away with the state agency."
Dellenback, taking a more
temperate line, said that his
concern was not for Civil De
fense as such, because he did
not feci Oregon would be a
target in the event of a nu
clear war, but he was con
vinced that the state's disaster
relief facilities should be
strengthened and developed.
Will Need Facilities
"We will need facilities to
handle refugees from other
states In the event of a disas
ter," he said. The only ques
tion now is whether the exist
ing three-man staff can suf
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ficiently coordinate the ac
tivities of the state's other
agencies in such a program,
the legislator said.
9. How do you explain your
reasons for passing H.B. 1234,
the so-called sub-division law?
Redden termed the measure
"an example of governmental
control over a large group of
businessmen necessitated by
the conduct of a few." He said
that "growing scandals in cen
tral and eastern Oregon"
necessitated action.
Won't Have Problems
Branchfield, who was In
strumental in drafting a re
vision of the original bill, said
Ashland
TUESDAY, JULY 9,
on Tax Defeated
that the "honest broker won't
have any problems with the
measure," and that "most of
the things in it, the reputable
broker is already doing."
Dellenback said the bill
was passed because there was
a "demonstrated problem" in
existence. He said he spoke
against the bill all the way,
and noted that it had been
changed several times before
it was finally passed.
"The bill reaches beyond
those who should be hit," he
said, but he told the group he
had received personal assur
ance from the state commis
sion that waivers would be
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