'PAGE TVVO
CITY
Guest Speaker at the next
meeting of the Unitarian fellow
ship of Klamath Falls Tuesday,
.Tinnarv s. at 8 o.m. will be the
' Jtev. Marshall McKinnie, minister
of the Congregational Church, who
will speak on "Our Common Her
itage." The meeting will be held
at the Congregational Social Hall.
2154 Garden. The public is invited.
Friends and relatives in Klam
ath Falls have received word of
the birth of a son on New Year's
Day to Mr. and Mrs. Mark Haltan.
15 Lower Circle, Carmel Valley,
California. The Hattans and their
daughter, Heidi, are former
Klamath Falls residents. Grand
parents are Mrs. Beth Williams
and Mr. and Mrs. Al Hattan of
this city.
Falrhaven Home Extension
Unit will have a meeting at
Joan's Kitchen at the fairgrounds
from 10:30 a.m. to 2:30 p.m. Fri
day, January 8. Mrs. Mildred
Martin will have charge of the
lesson and demonstration on soup
waking. Members and guests arc
welcome.
Players Club will have its regu
lar meeting at 7:45 p.m. Wednes
day, January 6, in the city li
brary. All members are urged to
attend and bring a guest.
St. Mary's Altar Society will
elect officers Wednesday. A pot
luck luncheon will be served at
noon.
Great Books discussion group
. will meet at 8 p.m. Monday, Jan
uary 11, in the city library. Topic
(or discussion will be Chaucer's
"Canterbury Tales."
OTI Student Wives will meet at
7:30 p.m. Wednesday, January 6,
. In the Y building on the campus.
Please bring articles for the
white elephant auction. Refresh
ments will be served.
South Dllrict-Camp Fire Girls
leaders' group will meet at 10 a.m.
Thursday, January 7, in the
Peace Memorial Presbyterian
Church. Mrs. French will speak
en the Golden Jubilee.
ENDS TONIGHT !
L CWIS AIM IN TECHNICOLOR?
TOMORROW
7;
p.
D0L0RT5 MICHAELS - PATRICIA OWENS
co-Hltj
CARET TOTTER
r i . a
BRIEFS
Keno PTA potluck and dance
has been postponed until January
22.
Buena Vista Extension Unit
will meet at Joan's Kitchen at
10 a.m. Wednesday, January 6.
Soups will be the project. There
will be a small fee to help pay for
supplies.
Klamath Unit No. 8 American
Legion Auxiliary, will hold its reg
ular meeting tonight at 8 o'clock
in the American Legion Hall.
There will be an executive meet
ing in the hall at 7:30. All officers
ari requested to be there.
Girdles Away TOPS Club will
have its regular meeting at 7:30
p.m. Wednesday, January 6, at
the community lounge.
Midland Grange will have its
regular meeting at 8 p.m. Wednes
day, January ' 6, in the grange
hall. All members are urged to
attend.
Army Private Boyd W. Casper,
son of Mrs. Lennie Casper of 615
California Avenue, and husband of
Marietta Casper, 4906 Avalon
Street, recently completed an eight
week general supply course at Fort
Ord. He entered the Army last
September.
Shasta View Building Asso
ciation will sponsor a public pin
ochle party Saturday, January 9,
at 8 p.m. in the community hall
at the corner of Shasta Way and
Madison Street.
Chapter 467 Women of the
Moose will hold an enrollment
meeting at 8 p.m. Tuesday, Jan
uary 5. Jean Coles, chairman of
the Child Care Committee, will
h-.ve her chapter night pro
gram.
The Annual Dad's Night for
Parents and Patrons of Henley
schools is planned for Thursday,
January 7, starting with a potluck
supper at 6:30 p.m. in the high
school cafeteria. Everyone wel
come. Take table service. Follow
ing the potluck, teachers and
dads will play basketball.
Honored Paul Crapo, former
Klamath Falls resident, now living
in San Bernardino, has reached
the covclcd one million dollar
mark in the Equitable Life Assur
ance Company. Friends received
word of his accomplishment this
week. Mis. Crapo is the former
Caroline Daggett, also of Klamath
Falls. The couple has three chil
dren. , ,
Cnilcr Lake Chapter. Sweet
Adelines will meet tonight at 8
o'clock at the Willard Hotel. Visi
tors will be welcome. The group
sang before several organizations
during the Christmas holidays.
Bible Baptist Church, 2244 Wi-
ard Street, is conducting special
meetings this week with Dr. Ear
nest Maylon as spenker. Meetings
are held each day at 10 a.m. and
7 p.m. A nursery is provided for
all meetings. The Rev. Freeman
Schmitt, pastor, invites all in
terested persons to the serv
ices.
Meeting of the Klamath Cam
era Club will be held tonight
at 8 o'clock in the upstairs room
of the county library. Take six
slides for PSA judging. There will
also be a review of November
competition and shooting bee
slides. Visitors always welcome.
VETERAN LEARNER
WIMBLEDON (UPI) Before
being found innocent of reckless
driving, Mrs. Dorothy Field, 69,
told the judge Monday she had
been driving on a learner's per
mit since 1922.
Bout t- 6:
20,000 LAUGHS
UNDER THE SEA
JWiUttHI
M Off.
SBI
mmk-mwm. gene evans
. 0 CONNELL
Smear Drive Spreads;
Officials Seek Answer
By THE ASSOCIATED PRESS
Aroused officials In America and
abroad today sought to combat
continuing anti-Semitism in the
form of painted swastikas and
hate slogans.
Jewish shops were defaced In
England. Swastikas were scrawled
on walls in Italy. West German
diplomats received threats, and
Jew-baiting slogans appeared in
Australia as the outburst went into
its 13th day.
Envoys from West Germany
where the anti-Jewish outbreaks
first flared on Christmas Eve,
sured other nations Chancellor
Konrad Adenauer's government
will take drastic action.
"Such evil deeds," a statement
said, appeared part of a "planned
campaign to discredit the Federal
Republic before world opinion.
A left-wing minority group In
Israel called on the 30.000 Jews
remaining in West Germany to
migrate to Israel. The appeal was
made by Zvi Lubotkin of the
Achduth Avodah party at a meet
ing of the Zionist General Council.
The council, an international or
ganization, sidestepped an en
dorsement of Lubotkin's call.
New York authorities reinforced
guards around synagogues follow
ing a weekend of swastika smear
ing, but more anti-Jewish inci
dents were reported.
Swastikas were found painted on
the doors of a public school in
Queens and a broken window was
reported in a synagogue in West
Stereotypers
Ask 3rd
Party
To End
Spat
PORTLAND (AP) - The Port
land newspaper strike today en
tered its 57th day. No sign of a
settlement was in sight.
An official of the striking Stereo
typers Union suggested again
Monday that a third party pref
erably Gov. Mark Hatfield move
in to help settle the dispute.
However, managements of The
Oregonian and The Oregon Jour
nal, as they have done before,
rejected the idea, saying such in
tervention would not be helpful.
At Salem, Hatfield said he was
hopeful that a fact-finding com'
mission could be created and that
he was working toward that end
Harlcy Flcsvig, president of the
Stereotypers local here, said man'
aeement had turned down an
earlier Hatfield proposal to medi
ate the dispute, and added:
"If the assistance of outside,
impartial persons brought an end
to the eight-month-old steel strike,
why couldn't such help do the
same in this situation?"
In a joint statement, the pub
lishers of the two newspapers
later said:
'There is no reason to believe
either the governor, through medi
ation, or a fact-finding committee,
could be any more effective in
jarring the union loose from its
untenable positions than has the
Federal Mediation Service.
"The steel strike and the news
paper strike are vastly different.
A steel shutdown affected virtually
the entire economy. By contrast,
we are not shut down. We are
publishing. Our readers, our ad
vertisers and the interests of the
commonwealth are being served.
Any adverse economic conse
quences have been largely obvi
ated. "The proposal appears, as be-
fore, an effort to project this dis
pute into the political arena. We
do not believe that political inter
vention, at union behest, is indi
cated, nor do we believe it would
be helpful."
At Salem, Hatfield commented
on the union proposal by saying:
"I have given no special con
sideration to it in light of today's
development. But I have been
thinking about it right along. I
am still hopeful we can get them
together on a fact-finding commis
sion. That is the approach I would
like to make and I am working
toward that end."
The strike began Nov. 10. The
newspapers are publishing a joint
edition, using supervisory and
non-union help.
Klamath ralla. Oregon
Serving Southern Oregon
and Northern California
Publtahed dalljr except Saturday br
Southern Oregon Publuhlng Company
Main at Esplanade
Phone TllKedo 4-glll
FRANK JENKINS. Editor
BILL JENKINS. Managing Editor
FLOYD WYNNE. City Editor
Entered ae eecond data matter at the
poet ofttc at Klamath ralli. Oregon,
on Auguat 30, 1006. under act of
Congreaa. March 3. 17. Second-elae
postage paid at Klamath ralla. Oregon,
and al aflcmionaj mauino omcoa.
SUBSCRIPTION RATES
Carrier
1 Month I SO
MonUU OO
I Year l0O
Mall In Advene
I Month I 1 SO
Month V
1 Year ... IIS (10
Carrier and Dealer
Week day! copy ft
Sunday, copy loo
UNITED PRESS INTERNATIONAL
ASSOCIATED PRESS
AUDIT BUREAU OT CIRCULATION
Subacrlber not receiving delivery ot
their Herald and New, pleaa phone
TUxedo 4-IU before t PM After
T P.M., chon Maurice Millar. cir
HERALD AND NEWS. Klamath Falls, Ore.
Hempstead. Six Brooklyn boys
were adjudged juvenile delin
quents for breaking windows New
Year's Eve and Sunday in a
Hebrew school and a nearby syna
gogue.
The smear campaign spread to
Cincinnati, Ohio, where chalked
signs "Deaths to the Jews" and
"Hitler defeated but not dead'
showed up on desks at an elemen
tary school which has a large
proportion of Jewish pupils. Police
blamed vandals who also ransack
ed the desks Monday before the
school opened.
In England, a British govern
ment minister, Sir Edward Boyle,
told a meeting of the Council of
Christians and Jews, "We can take
heart at the speed and vigor with
which the West German govern
ment has acted.
The West German Embassy In
London received a telegram
signed "British Nazi Party"
threatening supporters of Aden
auer with reprisals if the Bonn
government takes action against
anti-Semitic elements.
Swastika daubing continued in
various English cities. The Hitler
insignia was smeared on the win
dow of a Jewish bookshop in
London's Marylebone district. Six
Jewish shops in Leeds were
daubed. Other incidents were re
ported 'in Bolton and Salford.
Nazi Germany's swastika flag
was found early today on a monu
ment in the main square of Milan,
Italy. A swastika also was
scrawled in the square where
oartisans hanged the body of
Benito Mussolini.
In Rome, Jewish residents
stoned the Italian government s
Nautical Institute after students
inside scrawled swastikas on the
window panes.
In Oslo, Jewish businessman
Otto Rabl received two threaten
ing letters in German. "If you do
not get out of the country, you
Jewish swine, we will make soup
out of you in 1960, said one
letter.
Water Board
Asks Change
In Legislation
SALEM (AP)-The state Water
Resources Board asked Monday
for a change in legislation to cre
ate a national seashore area in
the dunes region on the Oregon
coast near Florence.
It asked that water in the area
be used for any beneficial use,
provided it does not harm the
recreational or scenic values of
the area.
This recommendation will be
submitted next Monday to the gov
ernor's.. Natural Resources Com
mittee, consisting of heads of
several state resource agencies.
The dunes legislation now pro
vides for use of water in the
proposed park only for domestic
and industrial use.
The state Fish and Game Com
missions failed in their attempt to
get the board to revise upward its
requirements for discharge of
water from the proposed Round
Butte Dam on the Upper Des
chutes River.
Portland General Electric Co.
has been granted a preliminary
permit to build the dam, provided
it maintains a discharge of al
least 3.000 cubic feet per second
from the dam to sustain down
stream fish life.
There is an added provision that
the actual minimum discharge
could be revised upward by nego
tiation between the power com
pany and the two commissions.
The commissions asked Monday
that the board increase the re
quired discharge each March,
April and May to the average for
the past 10 years, which would be
more than 6,000 cubic feet per
second.
The board answered that the
two commissions should first nego
tiate with PGE. Then, if no agree
ment could be reached, the board
would consider the matter again.
Phil Schneider, stale game di
rector, said it would take 18
months to complete studies of the
river to determine how much
stream flow would be required.
State Engineer Lewis A. Stanley
reported that a court suit was filed
in Malheur County to challenge the
1937 state law regulating use of
ground water.
The suit was filed by Robert D.
Lytic, Vale attorney, who argues
that every farmer has the right
to use the water under his own
land.
Si
1
I ORCHIDS
from Hawaii
to You!
Tuesday. JqwHarg 5. I960
"DENNIS TH6 MNACfi.-:
' kl.MmfiZT! VID YA SEE M
Income Tax Facts
Editor's Note: This is one in a
series of articles on small-business
tax problems. These articles are
based on information provided by
the American Institute of Certi
fied Public Accountants and the
Southern Oregon Society of Certi
fied Public Accountants.
CORPORATED INCOME
TAXED TO STOCKHOLDERS
Many small businesses can now
enjoy all the advantages, tax and
otherwise, of being incorporated
without the disadvantages of cor
porate taxes.
One of the 1958 federal lax
amendments allows stockholders
of certain corporations to elect to
have the profits of the corporation
considered as a part of their own
personal income for tax purposes,
Prior to this amendment, the cor
poration's profits were taxed at
the rate of 30 per cent on the first
$25,000 and 52 per cent above that
amount. Stockholders receiving
dividends from the corporation's
profits were then taxed at the nor
mal rate for individuals. This so-
called "double taxation" on corpo
rate profits posed an obstacle to
the incorporation of small busi
nesses.
If a corporation were to take
advantage of the election, its prof
its would be considered income to
the stockholders in proportion to
the amount of stock they held at
the end of the year. In other
words, a stockholder would pay a
personal income tax on his propor
tionate share of the profits as in a
partnership. The corporation
would pay no federal tax.
A net operating loss would also
be passed on to the shareholders
on a pro rata basis. The share
holder's portion of the corpora
tion's net operating loss is
prorated according to the number
of shares held on each day of
the taxable year. The stockholder
may treat this loss as a business
deduction on his personal return.
There are limits on the amount
which may be deducted, based
upon your cost, the corporation
profits and losses in earlier years,
your withdrawals and amounts
which you have lent the corpora
tion. To make the election, corpora
tion may have no more than ten
stockholders individual stockhold
ers, not corporations, trusts or part
nershipsand must have only one
class of stock. Other requirements
exclude holding companies or cor
porations with too much income
from rents, dividends, interest, roy
alties, annuities or foreign sourc
es.
All stockholders must agree to
the election. If your business is on
a calendar year basis (January 1
to December 3D, you have until
January 31st to file an election not
to be taxed as a corporation for
litSO. Corporations on any other
12-month basis must file the elec
tion before the end of the first
month of their taxable year.
There are a number of other
legitimate tax savings and bene
fits you can protit trom if you
operate as a corporation and take
advantage of the election. For ex
ample, as a working stockholder
you are an employe of your cor
poration, and you are eligible to
participate in more advantageous
pension and profit-sharing plans.
But as a partner or proprietor,
you could not be considered an
employe in your own business. You
therefore, could not participate in
these plans.
If you are an employe stock
holder, you can receive up to
FIGHTS
WRINKLES, ftv.fTyr.
SOILING!
Him Tur Clethas Ckitt t
CaK! Tkgrt'l N tirra Chert Far STA.NU rinllkinaf
CASCADE
tit Cramer t Os. tat
TURN A MM&eSAULT ?'
$100 a week of tax-free salary while
you are sick. The corporation can
deduct health and accident insur
ance premiums and group life in
surance premiums covering you
without your reporting the prem
iums as income.
You can make gifts of stock to
children and other relatives as a
means of splitting income for tax
savings. Once such gifts are made,
the corporate profits will be taxed
to your relatives in proportion to
the stock they hold. Since they
are probably in a lower tax brack
et, this can amount to a consid
erable saving in tax dollars. How
ever, this saving can be offset to
some extent by the gift tax.
Another tax advantage of giving
gifts of stock to relatives is that,
such gifts can be timed at your
discretion for maximum effective
ness. For example, if at the end
of the year your corporation's prof
its are high, you may wish to
have some of the income taxed
to your children at the lower tax
levels. However, these gifts must
be bona fide. In other words, you
can't have strings attached that
will enable you to retain voting
use of the shares or get the
shares back at the end of a cer
tain period. A limiting condition
is that for the election to remain
in effect, you cannot increase the
number of stockholders to more
than ten. i
Most healthy businesses do not
withdraw all of their profits at
the end of the year. They plow
back part of the earnings to pay
for new equipment, to buy new
plants, and to expand product lines.
If a corporation makes this elec
tion, all of its profit will be taxed
as income to the stocknoiaers
whether they withdraw any of it
or not. But although they will al
ready have paid tax on the money
they leave in the business, they
will have the right to withdraw it
provided the election is in effect
for the year in which the with
drawal is made. Incidentally, this
right is not transferable. If the
stock is sold, inherited, or given
as a gift, the new stockholder can
not withdraw tax free the previous
ly taxed but not withdrawn prof
its.
If you now operate a partner
ship or proprietorship and are
thinking of incorporating, you
should weigh the federal tax
advantages against state taxes and
other corporate expenses you might
be taking on.
Another point to consider is the
bookkeeping difficulties presented
by making the election. You will
need to keep accurate records of
the undistributed income that oc
curred before, during and after
the election was in effect. Another
problem even though individual in
come tax was paid on the undis
tributed income while the election
was in effect, such income cannot
be distributed tax free after the
election is terminated until cur
rent and accumulated earnings are
distributed and such distributions
are taxable as dividends. This is
a serious problem since an elec
tion can terminate without all
shareholders desiring it.
You can get additional informa
tion on your business tax problems
from your local Internal Revenue
Service office. Either write, tele
phone, or make a personal visit.
but be sure to ask for a copy of
the Internal Revenue Service Book
let, "Tax Guide for Small Busi
ness." This 35-cent booklet will be
a big help to any small busi
nessman.
Makes 01 CUtkt
Look like Ntw
CUiJllliJ
and Mtn't Hand Laundry
and DRY CLEANERS
Orfit . 4.5111 or MJt
Humorist James Thurber
Pleads For Eye Research
(EDITOR'S NOTE: In the fol
lowing; dispatch, blind humorist
James Thurber tells how he lost
bis light and how you can keep
yourg. Thurber, whose "The Se
cret Life of Walter Mitty" is al
ready considered an American
classic, came to his native Co
lumbus, Ohio, this week or the
premiere of his Broadway-bound
play, "A Thurber Carnival."
Gov. Michael V. DISalle pro
claimed a "Jamei Thurber
Week," and the 65-year-old writ
er decided to take the oppor
tunity to make a public plea for
better eye care and support of
eye research.)
By JAMES THURBER
Written For UPI
I lost my left eye as a result
of an accident when I was seven,
Deputy Policy
(Continued from Page 1)
lines in the city might be caus
ing the odor problem. He in
formed the council that he had
contacted the State Sanitary Au
thority Ken Speis in Portland and
that Speis said he would send a
man to Klamath Falls soon to
make some tests in an effort to
solve the problem.
Vergeer told the council that the
city had entered into an agree
ment with the Gospel Mission to
tear down the old terminal build
ing at the airport.
UNDER THE TERMS of the
agreement, approved by the coun
cil, the Gospel Mission would be
entitled to salvage materials of the
building and upon completion of
destruction within 60 days, the city
would assume the cost of insur
ance necessary for the job. This
would amount to about $250, Ver
geer estimated.
He indicated that the work is
now in progress and is being done
with volunteer labor under the di
rection of a paid supervisor.
The council earlier had adver
tised for bids on tearing down
the building, but received no bids.
It is necessary to complete de
struction of the building before the
new terminal can be opened.
Two new potential construction
projects in the city were passed
along to the Planning Commis
sion. Both requested re-zoning of
areas for the building of apart
ment structures. One would be for
a large apartment, unit to be con
structed north beyond Dahlia Street
and below Eldorado Boulevard, and
the other would be a 34 unit apart
ment to be built at the corner of
Washburn Way and Union Avenue
by Vernon Scott, Eugene.
THE PLANNING COMMISSION
will hold public hearings on the
requested re-zoning afid make a
recommendation to. the city coun
cil. In other action, the council auth
orized the installation of two-hour
parkfng meters on Eleventh Street
from Klamath to Walnut follow
ing complaints of automobiles park
ing the area in excess of the two
hour limitation.
A resolution was approved auth
orizing the mayor to sign an agree
ment leasing the restaurant facili
ties of the new terminal building
to Michael B. May for a five-year
period to January 1, 1965, subject
to a five-year renewal option to
December 31, 1969.
It also approved the establish
ment of a no parking zone on
both sides of Main Street from
Payne Alley to the west end of
the Link River bridge. This was
suggested by the State Highway
Department, and deemed neces
sary for the safety of traffic in
the area where the bypass inter
sects Main Street.
WALLET
Wt talu pleatura
Den S I o a
'J our fin
hat ;omi
A s e e I I
Ortf 4 Nana)) llWf) lrfc
517 Main Strot, Klamath Falls, Ortgon
and 35 years later I began devel
oping a cataract in the other eye.
The removal of the average cat
aract is simple for a skilled sur
geon. One of the greatest of them
told me, "It is as easy for us as
clipping a fingernail or tying a
shoelace." The operation is suc
cessful more than 99 per cent of
the time.
In the New York hospital where
my cataract was removed in 1940,
only three patients out of 2,500
failed to recover the vision they
had had.
I was one of 'the three because
my cataract had formed in an eye
that had taken a terrible beating
in 1902 from a dread infection
called sympathetic ophthalmia.
Neglect of eye injuries or eye
troubles of any kind is perhaps
the major cause of blindness to
day. If my own left eye had been
removed in time it is likely that
I would have normal vision in the
other eye today.
The first rule is this: If any
thing at all happens to your eye,
you should see a reputable doctor
at once. One of the commonest
accidents is to cut the cornea, or
transparent covering of the eye
ball, with the edge of a handker
chief or even the edge of a facial
tissue. The pain is sharp but us
ually goes away in a matter of
seconds. Nevertheless it would be
wise to let an eye doctor look at
the eye.
Anybody who thinks eye drops
of any kind will cure cataract is
a danger to himself and to the
community. Thousands of people
have spread the false news that
cataract can be cured by ordinary
citric acid.
Deluded people all over the
world have written me about fake
"cures" for cataract and for all
other eye conditions. I have not
only been told to use orange juice,
but to rub my spine with a bil
liard ball; to put a hot flatiron
against my temple; to watch
jumping beans; to swallow the
scrapings of church bells, and
even to become emotionally in
volved with an Apache princess.
The normal human eye is not
fragile but one of the strongest or
gans of the body. Now and then a
beating, or fall, or other accident
may cause a detachment of the
retina, or segment of the retina.
This is a condition that cannot
and must not be neglected.
Although the five operations I
underwent were performed just 20
years ago, a distinguished eye
doctor told me, "Compared to re
cent, or postwar, improvement in
knowledge and technique Of eye
operations, you were practically
operated on in the dark ages." -
Many people are terrified of eye
operations, but they should not be.
First of all, do not delay and
then consult your physician and
obtain the name of a reputable
eye surgeon. -
FREE
DELIVERY
SERVICE!
ON ANY ITEM IN
THE STORE!
Phone Us Your Needs
Deliveries ' Each
Day at
11:00 -2:00 4:00
IN THE VILLAGE COURT
9th t Main TU 2-3475
in announcing:
Irektr
culation Hi