MEDFORD MAIL TRIBUNE. MEDFORD. OREGON
IT'S YOUR LAW
THURSDAY. JULY II. 1963
noert fat Lam Main Demxney Ltrt
Editor'i note: Th. following
rticl. ru pt.pwed at a pub
lic wrvict by th. Oregon
Stale Bat and i. ot intended
to be legal dvicei peon,
having a legal problem should
consult an attorney.
PARTNERSHIP OR
CORPORATION
Thinking of going into busi
ness for yourself? Perhaps
you and Bill Smith have de
cided to operate a business to
gether. Should this be done
as partners or as a corpora
tion? The answer to this prob
lem involves many legal
questions.
Perhaps the most important
factor is that the business or
personal acts of either you or
Bill may be binding upon the
partnership. The corporation,
however, can act only through
its officers and agents, and
then only within the limita
tions granted by the articles
of incorporation.
As members of a partner
Ship both you and Bill will be
liable for all of the debts of
the business. In the case you
have business losses, the
Three Governors
Plan To Testify
Washington - UPU - Three
southern governors have ac
cepted invitations io testify
before the Senate Commerce
committee on President Ken
nedy's public accommodations
proposal.
It was learned today that
Govs. Ross Barnett of Missis
sippi, George C. Wallace of
Alabama and Donald S. Rus
sell of South Carolina are
tentatively scheduled to ap
pear late this week or early
next week.
Today, the Senate group
called mayors of two cities
which peacefully segregated
their public facilities to tes
tify on the measure. Ivan Al
len of Atlanta, Ga., and
Frank Morris of Salisbury,
Mo., were to be questioned
about how desegregation has
affected business and what
other effects the move has
had in their cities.
A committee aide Said At
lanta represented a southern
city in the medium-size class
and Cambridge a small city
in a border state. The mayor
of a large unidentified north
ern city also was invited to
attend but declined, the aide
said.
creditors of the partnership
could take all of the assets of
the partnership, and all of the
personal assets of either you
or Bill, or both (except a few
exempt by law), in order to
satisfy the partnership debts.
On the other hand, if you
form a corporation the cred
itors may go only against the
assets of the corporation so
that the most that either of
you can lose is the amount
you have invested in the busi
ness. The creditors could not
touch the property which
either of you own personally
and individually, outside of
your corporation stock.
In event of the death of
you or Bill, it would be neces
sary to liquidate the partner
ship, but in the case of a cor
poration the operation of the
business is not affected by
the death of an owner (stock
holder). The firm continues as
the same business with the
heirs of the one who dies sub
stituted as the owner of the
stock.
Of primary interest to you
and Bill will be the amount
of income taxes you have to
pay. In a partnership, each of
the owners of the business In
cludes on his individual in
come tax return his propor
tionate share of the total in
come shown on the partner
ship return. This is because
the partnership is not recog
nized as a taxable entity.
The corporation is recog
nized as a taxable entity, so
it pays a tax on the amount
of its net income, after de
ducting the salaries of you
and Bill and other expenses.
Then you of course pay in
dividual income taxes on your
salaries.
If over a period of years
the earnings of the. corpora
tion exceed reasonable sal
aries for the two owners, these
earnings will be distributed
to you and Bill in the form
of dividends. The funds with
which the dividends are paid
have already been subject to
tax in the hands of the cor
poration, but are again taxed
on your individual returns
when distributed.
The income tax advantage
or disadvantage of a partner
ship as compared with a cor
poration depends on the net
income from the business, the
salaries the owners receive,
the amount of their other in
come and the requirements of
the business for liquid funds.
In the event either of the
owners is interested in plan
ning his estate to reduce taxes
at the time of his death, he
can probably do it more easily
through a corporation than a
partnership.
r
v iL.
-i-vy-a - , r; ( . M .?.( ., - iiHi,;,iii,TjMaiiJ
SUCCEEDS WINNER Linda Gail Baucum,
18, of Springhill, left, was crowned Miss
Louisiana after Judy Ann Cathey, right, 20,
of West Monroe won the title but declined
to accept the honor because she will marry
in August. (UP1)
Sawmill Workers
Discuss Extending
Industry Walkouts
Portland IUPD The execu
tive committee of the Lumber
and Sawmill Workers Union
met here today with the sub
ject of further strikes against
Northwest lumber producers
the major subject.
The meeting came on the
heels of failure in talks be
tween the LSW and Georgia
Pacific Corp. Wednesday.
Executive Secretary Earl
Hartley said the union re
jected an offer of a 22V-eent
hourly wage increase spread
over a three-year period. The
union has asked 60 cents.
Hartley said no more meet
ings were scheduled.
Simpson Talks Tuesday
Officials of Simpson Timber
Co. announced Wednesday
they will meet here with rep
resentatives of both the LSW
and International Woodwork
ers of America next Tuesday.
It will be the fourth meeting
between the two groups in
the five - week - long lumber
dispute, but the first in which
representatives of both unions
have negotiated jointly with
an employer.
Before, one of the unions
negotiated while representa
tives of the other sat in as ob
servers.
Federal Mediator George
Walker also announced a
meeting between the IWA
and Yamhill Plywood Co. of
McMinnville has been sched
uled for Friday.
That firm Monday rejected
a union offer to withdraw its
pickets and put its members
back to work if negotiations
were resumed. The mill re
sumed operation with non
union labor after a strike
June 6.
About 21.000 Idle
. Strikes and lockouts in the
Northwest lumber industry
have idled about 21,000 work
ers since contracts with the
two unions expired June 1.
Meanwhile, contract dis
cussions continued here
Wednesday between negotia
tors for 48 Pacific Coast pulp
and paper mill employers and
the United Paperworkcrs and
Papermakers and the Pulp,
Sulphite and Paper Mill
Workers unions.
Contracts in that industry
also have expired, but no
strike vote has been taken.
Both sides refused to discuss
the progress of the talks.
Travel Editors To
Take Tour of State
Salem - (DPD - Oregon will
be host to four travel editors
on a 14-day tour of the state
starting Sunday, State High
way Engineer Forrest Cooper
said today.
The tour, now an annual
affair, will take in the scenic
highlights of the state, in
cluding central Oregon, the
Willamette valley, the Ore
gon coast, ML' Hood, Crater
Lake, and the Oregon Caves.
The writers are Mort Cath
ro, travel editor of the Oak
land, Calif., Tribune; Marge
Gilroy, travel editor of the
Victoria, B.C., Times; William
C. Ellis of San Francisco, edi
tor of Motorland magazine,
and Richard Barrett, feature
writer for the San Jose, Calif.,
News.
Traffic Safety To Again Seek Implied Consent
A 3
Salem - UIPD - The Oregon , come critical at low speeds.
Traffic Safety commission has
decided to renew its fight for
implied consent legislation,
but postponed a decision on
whether to renew its drive for
a maximum speed limit.
Both measures were reject
ed by the 1963 legislature.
The commission decided to
study possible use of a-breath
test instead of the blood test
that had been proposed for
the implied consent law. Un
der implied consent, when a
person receives a driver li
cense he gives consent to an
alcohol test in case of an ac
cident, or suspected drunk
driving.
Both highway engineer For
rest Cooper and Capitol Jour
nal managing editor James
Welch told commission mem
bers of comments they had
heard from the public and
legislators in opposition to a
maximum speed law. They
said Eastern Oregonians did
not feel a maximum limit was
needed, and cited cases where
accident conditions could be
ll-Point List
A. P. Bundcrson, district
director of the National Saf
ety Council, presented a 12-
point list of safely recom
mendations.
He said the state suffered a
weekly economic loss of $1.6
million because of traffic acci
dents last year.
Warne Nunn, Gov. Mark
Wilderness Areas
Claimed Threatened
Washington-IUPD-Scn. Mau
rine B. Neuberger (D-Ore.)
said today the nation's wilder
ness areas are threatened by
an "invasion" of mining inter
ests. Mrs. Neuberger, in a Sen
ate speech, said 537 mining
claims have been filed in
wilderness, wild and primi
tive areas since the Senate
first passed the Wilderness
Bill in 1961. That is a rate
of 23 a month.
The Senate has passed the
bill to set aside the lands for
preservation in the natural
state again this year, but a
similar House bill is still pend
ing in its Interior Committee.
"I am disturbed and dis
mayed by continued erosion
of our wilderness heritage and
the threats against its exist
ence," she told the Senate.
"Indeed, time may be run
ning out for our once time
less wilderness."
STYLES! SIZES1 SAVINGS FOR ALL!
NORFIELD'S
JULY CLEARANCE
SHOE SALE!
WOMEN'S ONLY! Wonderful Buys
. Don't Mis Thit Sale!
Hatfield's executive assistant,
said the 261 death toll so far
this year set a record for the
first six months, and warned
if traffic fatalities continued
at the present rate more than
600 would die on Oregon
Highways this year. Last
year's toll was 483. -
Bunderson said that in view
of Oregon's fast mounting
traffic death record this year.
efforts should be doubled to
implement the specific rec
ommendations arising from
his analysis of the official
traffic safety program.
Among his recommenda
tions wer? improved accident -record
keeping and reporting -procedures,
extension of
driver education programs,
expanded public safety pro
grams, periodic statewide
motor vehicle Inspection, max
imum speed laws, and implied
consent legislation.
SAVE AT ZALE1
No fake comparatives ... no phoney suggested retail yfxvjHjf .
tickets, no wild claims of "wholesale' prices, no VKY
worn out phrases like "discount." We let every price WyC "IRr
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ft. Ntwtit 17-jewal ftulovo with rich gold
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C. Man't 23-jawel Bulova, wattrrtiilanf.
twaap-iacond hand, xpanilon band.
D. Irupifad styling, lady's 17.jewel Bulova.
Cold alchad dials. Matching xponiion
band.
$4477
$4477
$4477
$4477
t. Man's 17twl Bulova. Modern design, $CM
matching expansion band. ?
T, 17ewet Bulova, wotenreUtant,ihocV M J 77
protected, new axpanilon band. "VV
O. Delicately ilyled lady's 17lewI Bulova $C8t
wllh clastic expansion band. f 9
oil prlcw plui lo. ri cote 94 ayttal at Intact
NO MONEY DOWN
Weekly or Monthly Terms
Open Friday Nights 'Til 9
W 218 E. Main 779-1331
JUST RECEIVED HUGE SHIPMENT OF
i. 3,1
9W I
A
Yes! A huge shipment of lovely, New Swim Suits has arrived I ate at our store ... So, here's
your chance to get the pick of the summer crop with the biggest Swim Suit Season Still Ahead !
Hurry! Only a few days to take advantage of this Great Offer ... All Your
favorite styles ! What An Array To Select From ! ' .
ABSOLUTELY -s
( BEACH COArjj
I LtepA FEW DAYS M 0 BATHING
I h - A ONLY ! C K
With Th PiirrLWe
OVER 400
SWIM SUITS
IN STOCK
TO
SELECT
FROM !
, Convenient parking mtkes
it to tisy to viait Robinson
Bro., Pitk' nd oth.r down
town Mtdford trorot and thopi.
USC THEM . . . th.y'r FREE
whtn you shoo DOWNTOWN
IN MEDFORD.
With The Purchase
of Any Swim Suit
In Our Store!
ALL SIZES: 6 TO 44
SWIMSUITS from TWO FAMOUS MAKERS
Jantzen and tSJafc..
rrueu 14
If Your CREDIT IS GOOD . . . It's Good at PICK's!
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mfflm
and up yyESB555,
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112 tAST MAIN STREET
Noxt Door to Robinten Ira.