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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Aug. 20, 1963)
PACK HERALD AND NEWS, Klamath Falli, Ortgoa Tuesday, Aufust 29. IKS EPSON IN WASHINGTON . . The Suspense Is Murder! United States Stil o Red China's No. I Foe c onege is ; Go west, young man or east or north or south just so you go to college. "' Figures just released by Northwestern National Life Insurance Co. in its 28th annual employment survey of U.S. college graduat ing classes reveals that grads of the class of '63 did even better than those of the pre vious year. Automation, which hangs like a specter over the livelihood of thousands, has cre ated other thousands of new opportunities for college graduates. Not all are scientific or technical opportunities, for even electronic computer work requires administrative and managerial personnel. . . More jobs at higher salaries absorbed 90 per cent of engineering job candidates, 80 per cent of business school and 70 per cent of liberal arts majors even before commence Sooner or later action is going to have to be taken to establish just how far the head of a democracy can go via the so-called executive order route. Already there are some signs that say trouble lies ahead and it would be -well for Congress to start thinking about protective measures. Legislatures also will have to give some thought to how far a Governor may go. The Executive Order since that seems to be the name given it by President Kenne dy himself originated in Washington as a means of, frankly, by-passing Congress. The President, wishing something done immed iately, with the stroke of a pen orders It so. He has on recent occasions used this short-cut, of questionable legality at times, and at best lacking in good parliamentary procedure. Now the idea seems to be spreading to the states. Kentucky's Gov. Bert Combs used this very same method to order racial discrimi Tax Cuts And Their Effects r " By THOMAS B. CURTIS ' Missouri Congressman The real damage that is being caused to our economy, and to our business opportunities, is due to our high lax rate structure. . I have been pointing to the need for lower taxes for many, many years, and so have others. ; But, in order to accomplish tax reduction, our federal expendi- tures must be brought down to a j point of manageable size. Spend ting has to be controlled so that, ' when we talk hi terms of t a x cuts, we are not talking about financing a tax cut by a new bond tissue. Such a bond issue would .mean noUiing mora than de ferred tax increases. If taxes are cut without cut- ting expenditures, we run into Idebt management problems, and am very concerned over the '. impact of additional problems in . ;Uie field of debt management on lour balance-of-payme'nts problem. :Vo don't owe this debt just to ourselves. The nationals and gov ernments of foreign countries, people abroad, own more than $20 billions of our dollar obliga tions. What is going to be t h e impact on those people and their willingness to hold our debts? Are they going to buy more of these bonds? Will tliey create a market or will tliey demand gold? ; It is being said that deficit financing actually will stimulate ;the economy; and that federal I spending by the political bureau cracy, with its alleged belter un derstanding of what and how '. money should be spent, will stim ulate the economy. Perhaps this concept of deficits may have some possible validity in an econ omy based on the laws of scarci ty. But our society is moving into an economy where plenty, not scarcity, is Hie problem. Tlie argument is made that, if we create a bigger deficit by cut ting taxes, we will not let loose the forces of Inflation because we have idle plant capacity, and .we havo men who are unem ployed. It Is argued that you ;do not create inllaUon by putting ;more purchasing power out. Relate this to agriculture. Would some of Uie lands that are now being put out of pio "duction be restored to produc tion? Would some of the peo 'ple who are now, and have been .' since this country was cstab ' lished, going out of agriculture as an employment pursuit return to agriculture? You may agree with my use of the agriculture example but will say: Look at steel, operaUng Job insurance ment time. Nearly all job seekers are expected to be placed by October. An estimated 48,000 new engineers will be needed every year during this decade 11,000 less than are currently graduated every year. Starting salaries for bachelor engineers were $600 to $610 a month. For business graduates, salaries ranged from $475 to $500, with accountants averag ing $525. Liberal arts bachelors not major ing in physical sciences settled for $460 to $485, with physical scientists (chemistry, math, etc.) averaging $550. Stiff competition for graduates and correspondingly inflated pay in the missile and space fields attracted more students than there were jobs in that area. One major area of opportunity was found by the survey to be neglected or by-passed by students sales. No Left-Handed Grocers nation ended in all state-licensed businesses and professions. He issued his order regard less of the apparent fact that even the Kenne dys, Bobby and the President, seem to be agreed this is a matter for Congress to decide, or else they, too, might have taken the exec utive order routine. The President, however, did use the executive order method in telling the Defense Department to curtail operations at military bases located where private enter prises discriminate. We must irrcgardless of what the ex ecutive order may be for take caution not to let this approach become too prevalent. It can get out of hand, for sooner or later, it will flow down to all levels of government and a mayor somewhere will decree that there shall be no grocery stores on the left hand side of the street. Too much power can be more detrimental than no power at all. Congress, truly, had better watch this. at 60 per cent of capacity. What would happen if we increased con sumer purchasing power at a time when we arc having, in many respects a record-breaking year? For two years in a row, automobiles and construction, two of the great users of steel, are at these high levels. I suggest that this idle steel plant cupacity is not in demand . and would not be in demand even with higher consumer pur chasing power, bccau.se it is a capacity that is obsolete. With a 60 per cent plant capacity utiliza tion last year, steel spent well over a billion dollars building more plant. More plant to pro duce the kind of steel for which they had tlic plants? No. This billion dollars is to produce a very thin steel sheet to compete with plastics and other metals, such as aluminum, that arc mov ing into markets steel once held. Tliesc arc the problems of rap id economic growth, not ol a tired, sick economy. You don't have obsolete equipment and obsolete skills in a tired economy. If your economy is going nowhere, you have no change. Whatever your occupation is, it is still use able. It's only when your econo my is growing rapidly that you have Uiis increased obsolescence of plant and equipment. Iteducing the corporate tax rate from 62 per cent to a rate of 49 per cent, or a 47 per cent rale, actually would produce more revenue. In my judgment, because we are now beyond the point of diminishing returns in tlie high rates. Now, that kind of rclorm can come at any time, and should come at the earliest possible time. But it follows a completely different economic philosophy from that which says that this tax reduction is going to release purchasing power to tlic private sector, or investment power it you want to use the money (or investment, .vipport ior the need to cut (lie corporate rates is on the theory that tlic tax rates themselves arc so high that they produce diminishing returns. If we can get some people to come along with Uiat kind of thinking, we may come forward with some tax reform legislation. If the requirement Is t h a t to cut taxes you have to compen sate revenue-wise by closuig what are called loopholes, it will take many months to develop adequate tax rate reform, if dc veloied at all. What is one man's looplxile is anoUier man's equity. Is deple tion allowance, for instance, real ly a loophole? Actually, it's a differential, reflecting the fact that in an extractive industry, you are bringing out capital. A portion of what you dig out of the ground is depicting your capi tal asset. Under Uie 16Ui Amend ment, capital recovery is not to be taxed as income. Depletion al lowance is necessary, so that when you have depleted an ore body or mineral deposit, you can replace it and remain in busi ness. If an attack on depiction is go ing to be the kind of tax reform that is urged or if Uie Treasury comes forward Willi a proposal to repeal the dividend credit, which was put into the tax laws in 11154, then there is serious doubt that there will be substantive tax reform in the near future. The dividend credit was not put in the tax laws to give the in vestor a break. The issue is this: There are three ways a business can finance its growth. One is from retained earnings, another is from borrowing either from a bank or debt financing and Uie third is through equity financing by floating new stock issues. The first two ways are taxed only once. Retained earnings have tlic corporate tax but they do not get taxed against the in dividual holder, unless he sells and then only at a lower rate. Borrowing to finance growth, you deduct the interest from income, subject to Uie corporate tax, and it's only taxed once. A new equity issue, the healthiest way to finance growth, is taxed twice. It is taxed at the corporate rale and then, when the corporation declares the divi dends, it's taxed at the personal income rates. All we were trying to do in 1954 was, in a small way. to bring about a little equalization so that this form of financing was not put at a disadvantage with Uie oilier two methods. This illustrates the complexi ties involved in some of these lax issues, particularly as you relate them to economics and to economic growth. Whether or not to cut taxes isn't the sole Issue. It is import ant to get the entire fiscal ques tion in context, in order to un derstand what we are going to face. Once we open Uie door to reviewing our lax structure, we don't liave to pursue the econom ic line based upon the concept of deficit financing. Rased on sound fiscal principles, sound economics and sound lax policy, e could have some good tax reform even in this session of Congress, and that would be with the help of members of both po litical parties. Jit By WASHINGTON STAFF Newspaper Enterprise Assn. WASHINGTON (NEAl - Pres ident Kennedy and Sen. Hubert Humphrey of Minnesota, Demo cratic whip, were discussing the nuclear test ban treaty with Brit ain and Russia. 'Well, Hubert," the President is reported to have said, "now that we have your test ban treaty signed, let's sec you get it rati fied by a big majority of the finale." "We'll do that, Mr. President," the Senator assured him. "But what happens then?" "Then," said the President, "it becomes my treaty." Mayor Ivan Alien Jr. of Atlan By SYDNEY J. HARRIS While driving through a state park Uie other day, the children saw me carelessly tossing a dead match out of the car window, and reminded mc of Smokcy the Bear's warning: "One tree can make a million matches, but one match can burn a million trees." This is more than a homely aphorism for children, and it says more than the dangers of being careless about fire. It strikes to the very heart of the human condition. We can observe the same truth, on the children's scale, at the seaside. Six children may labor for hours to build a lovely end intricate sand castle but in one second a baby can come along and wantonly destroy their achievement. Man is a creature of creation and destruction. The creation re quires labor, talent, skill, patience, cooperation, imagination, and often great courage. The destruc tion usually requires little ex cept the urge to destroy; it calls for no destinctivcly human abili ties. Nature has loaded the dice against us. One fanatical assas sin wiUi a gun can change the course of history, no matter how many statesmen and savants are ranged on the other side. The work of decades can be undone in an instant, as a cathedral that took a century to build can be de molished with a well-placed charge of dynamite. These are all the most obvious truisms yet truisms seem to be the last things that human hemes learn, accept, and act upon. Our capacity for violence and de struction has increased a million fold in modem times, but out ca pacity lor creation and for co operation has lagged far behind. Humanity has not yet begun to tight its real war which is not the war of people against people, but tlie war of all of us against our own destructive tendencies, and against Nature's indifference to our fate. Better control of tlie physical universe, combined w ith better control over our own natiux. is the only way to assure our survival as a species. 08S I wo . A' If. WASHINGTON NOTEBOOK Humphrey's For ta gives no open hints as to the degree, if any, of his attachment to President Kennedy and his administration. But a few clues may be seen in his handsomely-outfitted ofiice. Its furnishings include six Kennedy-style rocking chairs, a 1 1 with cushioned seats in the best presidential manner. An also-ran in the first Missis sippi governorship primary was Robert "Blow Torch" Mason, a welder from the town of Magee. Asked why he ran for gover nor on the Democratic .ticket, Mason said: "Every three or four years, I save up enough money to take a big trip or to run for governor. STRICTLY PERSONAL But we have not yet begun to regard man as a species. What L. L. White calls "the unitary nature of man" is dimly per ceived by only a few in each country; the rest retain a primi tive view of their own sub-culture as being the finest and the best. The basic task of modern edu cation is not to teach reading and w riting and counting, but to leach young people (and older ones as well) what it means to become a human being. All other tasks are subordinate to this one, for if we turn out skilled technical ani mals who do not know what a hu man being ought to be, we are simply hastening our violent ex tinction. Man's nature is not forever giv en, like the other animals, which cannot help being what Uiey are. We .make ourselves, as we make our history: and it is wholly up to us whether wc use the trees for matches or set the matches to trees. BERRY'S WORLD . . And u method actor, baby bt can icrttcb and mumble uith the best." 4 A While "This time I left it up to my wife to decide and she told me to run for governor. "- "Blow Torch" ran fourth in a field of four. The slow legislative pace of the 88th Congress is so appalling to Yankee Sen. Norris Cotton, R-N.H., that he has decided to stop sending weekly newsletters to his constituents back home. Says the Senator: "For 15 years, as congressman and senator, I have sent my re ports regularly, without interrup tion. But never has Congress gone into what amounts to a re cess in midsession to rcsumo work in the fall and run until snow flies." Not wanting to "spoil" his re ports by writing a scries of fill ers on trivial matters. Cotton suspended them, adding: "It just isn't good New England horse sense to write reports when there's nothing to report." "Will you run against U.S. Sen. Kenneth B. Keating in New York state next year?" Under Secre tary of State and former New York Gov. Averell Harriman was asked at the National Prss Club. "There's only one person who needs to worry about that," re plied Harriman with a big grin. "That's Senator Keating." Fresh from his, success in Mos cow, where he initialed the new nuclear test ban agreement with Britain's Lord Hailsham and Russia's Andrei Gromyko, Harri man relates that the first time he went to Russia he got in with out a passport. "I mentioned this to Stalin while I was wartime ambassador to Moscow," says Harriman. "He asked me when that was. 1 told him it was in 1899. when I was only 8 years old. My fa ttier had taken me to the Si berian coast after a trip to Alas ka." "That was in tlie days of the czars." commented the late Rus sian dictator. "You could not do that now." . , - By PETER EDSON Newspaper Enterprise Assn. (First of two columns on) Russia Red China split.) WASHINGTON (NEAl Signs that "the dust is beginning to set tle in China again" are considered deceptive. When Lowell D. Skinner of Ak ron, Ohio Uie American GI Ko rean war turncoat arrived in Hong Kong after 10 years' forced service as a lathe operator for the Communists in Red China, he was reported by cable dispatches as having said: "Anti-American feeling in Chi na is not as great as anti Russian. . . . There has been a notable increase in the violence of anti-Russian statements ever since the Russian technicians were withdrawn in the late 1930s." There is a lot of wishful think ing in Washington and other free world capitals that the split between Russia and Red China will develop into a full-scale war. The hope seems to be that they will destroy each other com pletely and that international com munism will perish from earth at the same time. That would be a historical solu tion by letting the dust settle. For thousands of years China has been overrun by invasions. China has absorbed them all and survived. In modern times, Japan has tried to take over and make over China in two wars, failing both times. When the United States and its allies liberated China in World War 11, they became the No. I enemy of the Chinese Commu nists, who overran the mainland and drove out the Nationalist gov ernment. Then came the.Russian wave of domination, beginning with a 30 year treaty of friendship signed in 1949. In less than 10 years Rus sia began to renege on its prom ised aid and to repudiate the treaty, being unable to swallow China. So the Russians now are the No. 1 enemy of Uie Chinese. But it does not follow that the dust is beginning to settle in China, in another moment of history. The diary of a former congress man, Dr. Walter H. Judd, R Minn., provides an illustration of WASHINGTON ) Organizer Of March By FULTON LEWIS JR. WASHINGTON. Aug. 19 Of the 100,000 demonstrators ex pected here Wednesday, it is doubtful that more than a hand lul know the background of Bay nard Rustin, who has been de scribed as "Mr. March-On-Wash-ington, himself." The description was offered by A. Philip Randolph, the Negro unionist who has helped stage this rally. Randolph has turned down suggestions that Rustin, Deputy Director of the March-on-Washington, be fired. Rustin's background was re searched by Sen. Slrom Thur mond, a Southern segregationist who admittedly has an axe to grind. (Rustin issued a denial of some of Thurmond' s charges. He said he had been a member oi the Young Communist League in college, but never a member of the Communist Party.) But the facts, obtained from the House UnAmerican Activities Committee and the Federal Bu reau of Investigation, speak for themselves. So does Rustin, who told the Associated Press he has been arrested more than 20 times in the fight for civil rights. He was arrested, too, with two other men in a parked car Jan. 22, 1933, in Pasadena, Calif. Charged with sex perversion, Rustin was convicted and sen tenced to six months in jail. It was not his first stint be hind bars. During World War II Rustin claims to have spent lime in prison as a "conscien tious objector." He was sentenced to federal prison for violation of the Selective Service law alter he refused to report for "work of national importance" required o( conscientious objectors. He was in federal penitentiar ies at Ashland, Ky., and Lewis burg, Pa. He was subsequently arrested, FBI files show, for dis orderly conduct in New York City and for picketing an em bassy in Washington. Rustin was one of "five im partial observers" at the Com munist Party's closed-door 16th NaUonal Convention in 1937. He was a member of the American Korum for Socialist Education, an organization infiltrated by Communist operatives and tlie subject of a Senate investigation in 1937. The Fellowship of Reconcilia tion, a left-wing pacifist outfit, printed a profile of Rustin in the January, l'.ivi, issue of "Fellow this. One entry covers a Febru ary, 1930. briefing on China poli cy which former Secretary of State Dean Achcson gave a group of Republican congressmen who were worried about the situation. Chiang Kai-shek's government had fled to Formosa in December, 1949. India recognized Red Chi na immediately. The United King dom followed. There was fear the United States would follow suit to establish a two-China policy. Then the Red Chinese made tlie mistake of seizing the Ameri can consulate in Peking. Presi dent Truman decided that t h e United Stales would never recog nize a bunch of bandits. . This ended that worry. But it still left unanswered the ques tion of what American China pol icy really was. Acheson uied to straighten it out in a series of closed congressional hearings and major public addresses. f At the Press Club on Jan. 12, 1950, in what was probably h i s most controversial speech. Ache son drew a line on the American defense perimeter in the Paci ficthe Aleutians, Japan, the Ry ukus leaving out Korea and For mosa. Immediately lie was in hot wa ter, and he was still up to his chin when he was invited to ap pear before the Republican con gressmen. No minutes of the meeting were kept, and memories of those who were there and what they said are vague. In his briefing the secretary analyzed Red China's weaknesses but did not predict its collapse. When he was asked what Amer ican policy would be in this situ ation, the entry in Judd's diary shows that the secretary replied, "We'll let the dust settle." In full fairness to Acheson, it may be reported that he does not now think the dust is settling in Red China. The United States is still the principal enemy of the Chinese Communist government, as the strongest power of so-called capi talist imperialism. The dispute between Red China and Soviet Russia does not settle any dust. It just raises more dust of a different kind. Interestingly enough, this is also tlie opinion of Judd. REPORT Has Unsavory Record ship," its official publication. The magazine relates one mile stone in Rustin's life, when he tried vainly to prevent the French from exploding a nuclear device in the Sahara. It referred to Rustin as a "friend" of Ghana's Communist-lining Kwame Nkru mah. Rustin has worked closely with the War Resistors League, an or ganization of men who refuse to serve their country in the armed forces; Liberation Magazine, a left-wing publication; the Medi cal Aid to Cuba Committee, a group under Congressional inves tigation earlier this year; the General Strike for Peace, a proj ect of the Communist-infiltrated Women Strike for Peace; the Monroe Defense Committee, a group set up to defend Robert Williams, the Negro integration leader who fled to Cuba when sought by the FBI on a kidnap ing charge; and the Greenwich Village Peace Center. This is not the first Washington march staged by Rustin. He co ordinated two earlier "youth marches" and a "prayer pilgrim age" that brought an estimated 40.000 people here several years ago. Under Secretary of State Av erell Harriman, negotiator of the partial nuclear test ban now un der Senate consideration, is giv ing indications that he'd like to get back in politics. Last time Harriman ran for office. New York voters turned down by more than half a mill lion votes his bid for another term as Governor. Now Harriman, 71, is consider ing a Senate race against Repub lican Kenneth Keating, up for re election next year. Hc has refused to deny he wants the Democratic nomination: "The only people who are wor rying about wbetlier I'm going to run are the Republicans." And even tliey are not staying up nichts worrying. THEY SAY... Tlie only really surprising thing about women in space is Uiat anyone should be surprised. Why on earth or in space not? Writer Margaret Joees. It '..' r r 4"
