Wellsville Daily Reporter from Wellsville, New York • Page 2

Two WELLSVILLE DAILY REPORTER, WElLSVILLE, NEW YORK Tuesday, August 28, 1962 fMTOMAl COMMENT 1 Tax-Exempt Units Attacked In Report Rep. Wright Palm an of Texas te thoroughly stirring up the animals so far as tax-exempt foundations are concerned. The second part of an interim report on such foundations has been issued by the Mouse Small Business Committee, of which he is chairman. To underscore the impact of the report, Patman has declared that some foundations "have assumed functjons. foreign to the object for which they were granted tax exemption and, in my opinion, at variance with the public interest.

Tills and more detailed allegations made by Patman on the strength of a committee stuff probe Should not be swallowed as gospel truth. There is enough in what the Texan has said, however, to warrant a searching look at the foundations. If any of them are nearly as bad as Patman claims, tighter control Is needed. The fundamental point at issue is whether some foundations are abusing or have abused the privilege of being exempt from taxation. There Is teason to believe that in some there have been such abuses, that corporation's and individuals have used foundations as a device for accumulating wealth without paying taxes on it.

This sort of finag'ling at public expense is Intolerable. The good foundations should not be tarred along with the bad. It ought to be made clear that many have done fine work and are In no sense guilty of wrongdoing. But the findings made by Patman's Investigators, illuminated at public hearings which arc planned for later this year, should be very seriously considered by Congress with a view to enacting corrective leg- is'lation. The World Today By JAMES MARLOW (Associated Press News Analyst) Withholding provision not so new despite thrashing it is receiving The Business Mirror By SAM DAWSON (AP Business News Analyst) Profit looms as controversial word for management, labor in future NEW YORK Profit 'seems likely to become an even controversial word in the months ahead.

(Management makes two words of squeeze. It complains of making less on each unit of production and sales. Labor tends to regard any profit rise as an indication that workers getting their fair share of the fruits of industry. Labor cites the still rising total of profits as showing management can pay 'more in wages. Government regards profit as a good provides tax receipts for one not if a rise in profits comes from nn inflationary rise In prices or from more unemployment brought on by cost-cutting automation.

The profit trend in many industries just now depends on two things: continuing recovery from the last recession rather than a dip Into another one; and the next round of wage negotiations, with top union officials plugging for 35-hour work week at the same pay as for the present 40 hours. The steel industry, for example, is complaining of the profit squeeze. This was born from rising labor costs due to the fringe benefits granted last spring and the inability to raise prices because of government opposition at first, and later because of increased competition from foreign mills and! new materials in the United States. The steel labor contract can be reopened next year on the question of higher wages. By that time the mills should bc producing more as the last of the stocks consumers built up as a hedge against a possible strike this year are used up.

But if wages go up and prices can't, there'll be even more of profit squeeze. Competition from foreign mills and from other materials making inroads on steel's mdrkcts could make price hiking hard. Part of the controversy over prdflts can very swirl about what role the government plays next year if the steelworkers seek higher wages. The profit is further clouded by the: tfact that, with a few exceptions, J'eflcJi year since the war has seeh we total of profits by -all industries and services rise. And even ili times of recessions some companled will -set record profits.

Part of the dollar rise In the total of. profits since the war is due to monetary inflation. The dollar totals are higher but they buy less in the marketplace, whether it be materials or labor. Part of the rise in total profits is due to the even higher climb of the total of sales. More people are buying more tilings.

They arc paying out more for them. But many companies complain that while their sales totals have climbed; their profits either hnve not risen in the last year or two 1 or have done so at a much slower pace than sales). This is the profit squeeze. means a lower margin, of profit on sales. It means production, transportation merchandising costs have risen faster than have prices and profits are less.

Many people are willing to leave this problem in management's lap. But if profits don't justify it, industry won't expand. If profit prospects are poor, new ventures will be shelved. The result is a squeeze on companies and their stockholders. It's also a squeeze on jobs.

They don't increase as the population jump requires. Some jobs disappear because unprofitable companies fold. Thus management argues when it tries to restore status to tlw word profit. Hollywood Report By BOB THOMAS (AP Movie-Television Writer) Sophisticated comedy apparently latest trend in film making world HOLLYWOOD (AP) Hollywood knows a trend when it sees one; no doubt "Birth of a Nation" produced a rash of Civil War films. Now the industry is hot on tire trail of the sophisticated comedy, in which there is no greater practitioner than the dur- atfie Cary Grant.

in history repeating itself, for a quarter century ago Grant was in the vanguard of the first wave of sophisticated comedy. The result was such classics as "The Awful Truth," "Bringing Up Baby," "My Favorite Wife," etc. Comedy got lost in a miasma of realism and psychiatry after the war. But the vogue for the sick pic appears waning, praise be. Hollywood needs no better signpost for the future than the fantastic record of "That Touch of Mink" at the Radio City Music Hall.

It collared $1,886,427 In 10 weeks of play in that one theater. Universal has become a sati lined factory for the sophisticated having minted such WASHINGTON over 100 years'ago the first ineonrc tax in American history went into effect with a provision now being kicked around in Congress as if it were brnmJ new and untliir.V- able. This act of July 1, other thingf-callcd' for withholding a tax on dividends and interest pairl out by banks, trust companies, railroads, savings institutions and insurance companies. The Supreme Court in 1881, by a unanimous decision, declared this act constitutional. BUt now when President Kennedy at'ks Congress to approve a withholding tax on dividends and part of a general tax revision to close loopholes in the tax has run Into fiery Apposition.

Sen. Harry F. Byrd, conservative Southern Democrat of Virginia, says the dividend withholding Is "unworkable." Sen. Jacob K. Javlts, liberal New York Republican, says it is "Impractical." Stock exchange firms, life Insurance companies and banks want 'it knocked out of the bill or changed.

The National Association of Manufacturers blasted the whole bill. Support for the idea comes from equally strange mates, like liberal Sen. Paul Douglas, and the conservative U.S. Chamber of Commerce. Stranger still, nobody on either side seems to remember that act of 1862 which provided for what Kennedy is asking now.

But that law of a century ago should be an eye-opener to those, who think some of the main features of the present tax system are of recent origin. It was a graduated income tax. first $600 of income was exempt. Then the lax Was 3 per cent on ineoTnc 'between $600 and $10,000 and 5 per cent on all income over $10,000. It went up higher later in the Civil War.

It a'lso. impound a tax on inheritance over $1,000. And the tax was withheld from the salaries of government employes. The House passed Kennedy's tax revision, bill March 29, leaving in the withholding tax on dividends and interest. Then the measure went over to the Senate where the Finance Committee, headed by Byrd, began hearings.

When the Byrd committee got through "with the bill, the withholding tax dividends was gone. The'Sena tvjv-this week began debate on the measure. The Senate bill, as it stands, instead of saving the government money wfll probably cost the government money. It's a guess whether the withholding tax on dividends and interest will be put back on the Senate floor. Yet; the Treasury says $4 billion in dividend and interest income is not reported each year on tax returns.

It estimates $800 million is lost yearly because of this and that withholding would bring in $650 million more. Congress passed the 1862 act as one more way to pay for the Civil War. The greatest revenue came from other sources, like tariffs. There was a lot of cheating then, too, and gripes about the complicated tax 'forms. abolished this whole tax measure in 1872 under pressure from business during President Grant's administration.

In 10 years it brought the government about $375 million. The revenue from other taxes ran to about $1.5 billion in the same time. Still, in a 'landmark caso, the act was challenged in 1865 by a lawyer who argued it wasn't right to tax a lawyer's income. This stumbled through the courts until in 1881 the Supreme Court told him- ho was wrong. Between 1872 and the end of the i century American industrial development was on its way.

Some men made great fortunes. There also hardships and demands for social reform. The Populists in their 1892 platform called for a new income tax. A lot of Democrats favored it. And Congress passed it in 1894, not a graduated lax, as in but a flat 2 per cent tax on all kinds' of income.

The rich men didn't lik'e it. One of the leading attorneys fighting it was John D. Rockefeller's lawyer, Joseph Choate, although Rockefe'llcT was not involved. And in 1895, in a blinding reversal of that 1881 decision, a highly conservative court declared the income tax unconstitutional. The vote in this case was 5 to 4.

To make an income tax constitutional the country then had to pass the 16th Amendment to the Constitution in 1913. But in those years between 1895 and 1913 the nation had to do without needed revenue. REVIEW IHCIDEN Cadets have their hands full trying to fold a flaf- rtaott flag as the wind blows during retreat ceremony at The Citadel in Charleston, S. C. seconds they regained their soldierly composure and control of the flag.

AIRPLANE PILOT EXAMS SCHEDULED The National Aviation Facilities Experimental Center, Atlantic City, N.J. has announced an examination for airplane pilots. All appointments will 'be career-conditional. At least four years of responsible experience in aviation activities is required. Applicants must hold a current valid FAA Commercial Pilot Certificate, with single-engine land, multi-engine land and FAA instrument ratings.

Applicants also must have a record of not less than 1500 flying hours, including at least 100 hours acquired in the past year. Applications be received until the ncedls of the service have been met. Full information about requirements is contained in Announcement No. NY-97-12IG2). Copies of the announcement and necessary forms may be obtained from the Executive Secretary, Board of U.S.

Civil Service Examiners, Federal Aviation Agency, National A- viatlon Facilities Experimental Center, Atlantic City, N.J. or you may apply at any post office for the necessary forms or for information as to where the forms may be obtained. Personais and Mrs. Richard Stevens and son of Riverside have returned from Austintown, Ohio where they spent the weekend and attended the wedding of their son, Richard Stevens II. ErMlh Amy Dcwey of LcRoy, granddaughter of Mr.

and Mrs. Loren Dcwey of 203 E. Pearl St. and two companions, the Miss- 03 Elaine Dickinson of Fulton and Joan Smith of South Otselic, have' returned from a month's tour of United States. Stops included the Black Hills, National Park and Las Vegas.

They ended their tour at Norfolk, Vn. where they were entertained by the U.S. Navy. All three girls are graduates of State University College at Oswego and will be teaching this fall. and Mrs.

Loring M. Thompson and son have returned (o Winchester, Mass, after spending the week visiting their cousins, the Richard Stevens of Riverside. They also attended the Mc-r- ris-Stevcns wedding in Ohio. BRITISH COLUMNIST DEFENDS JACQUELINE LONDON British columnist today defended Jacqueline Kennedy's frequent public appearances in a bathing suit. "Since when youth and grace and gaiety at the White House been improper?" asked the London Daily Mirror's Cassandra (William Connor), who rarely has a good word to say for the United States.

Cassandra took issue" with Dr. Willis iRay, a Colorado Baptist leader, who contended that the President and Mrs. Kennedy has "thrown dignity, decency, and decorum out the window" because they went swimming in bathing suits. U.S. CAPTAIN DIES IN VIETNAMESE CRASH SOCTRANG, South Viet Nam Vietnamese air force fighter plane crashed during strafing run on a Communist Viet Cong village today with its rockets and guns still The Vietnamese pilot and American copilot were presumed killed.

The name of the American, a captain, was withheld until next of kin -were notified. SEOUL FLOODED SEOUL, South Korea (AP) Rain-swollen waters of the Dong- chun River breached several dikes today and swept through the city of Sunchon, trapping many of its 70,000 residents. Officials listed 131 persons killed and 59 others missing. People In News By tttE ASSOClAfEB PlifcSS Mias America, Maria Fletcher of Ashviile, N.C., is going to college. Her father, Fle.yM clgo.

Her Beale Fletcher admission to Vantierbilt University at Nashville, Tcnn. Miss Fletcher, whoso Miss crown carried a $10,000 college scholarship, may major in some phase of music, her fattier said. Hubert Julian, arrested in Kataiifia as a mercenary and released by the United Nations last week, made a appearance in a New York traffic court. The "Black Eagle of Itarlem," arrested as a scofflnw, showcrl tliiit he already had a $15 parking fine and that a bookkeeping error had kept the warrant alive. In the 1930s, Julian flew fir Ethiopia and has called hlmnolf.

"colonel" ever since. Nancy Olson, 34, (he actress, and Alan Livingston, 44, vice president of Capitol Records, have obtained a marriage license. The couple will be married next Saturday at the home of Miss Olson's in Brentwood. in. a Unitarian ceremony.

Willy Brandt, mayor of West Berlin, will fly to the United States ut the end of September to deliver a five-day lecture series (it Harvard University. AUTO FATALITY MONTJCELLO, N.Y. Caesar Vantc, a Long Island high school teacher and coach and a summer employe of Monllcello Raceway, was fatally injured early today when his car struck a bridge in Mongaup Valley, about five miles west of hero on Route 17B. Vantc, 38, lived in East Northport. Sandwich Pie Luncheon Community Building THURSDAY, AUGUST 30, 1962 11:00 a.m.

to 2:00 p.m. 60c (Tables reserved for people with hour lunch time) Benefit of The Blue Devils Drum and Bugle Corps Sponsored by The Business and Professional Women's Club TICKETS Members of B. P. W. Blue Devils Davie's Rockwell's Charlotte's Scovillc Brown and at the door.

Established 1880 Published every afternoon except and Sundays by Wellsvllle pally Reporter. 159 N. Mala S-elUvUle. N. Y.

B. Wlllard Barnes, President and General Manager; Mary F. Barnes. Vice President and Secretary; John W. lanford, Managing Editor.

National Advertising Representative: Special Agency, 100 Uadlson Avenue, New York, N. Y. Entered at the Postofflce at Wells- fllle. N. aa second class mall matter.

Subscription Rates: By carrier, pay- weekly. 36 cents; by suburban mall vered day or publication one year. 90; six months, all other mall AJlegany and Potter Counties, one year, six months, $6.00: three months. outside AHegany and Potter Counties, one year. 115.00; fl.SO per month.

AU maU subscriptions payable strictly In advance. MgMBEB Of ASSOCIATED PRESS. ThY Preae entitled ex- duclvely to the use for repubiication ttit the local news printed lu this weU AP (Us- smashes as "Pillosv Talk," "Operation Petticoat," "Come September" and "Lover Come Back." Coming up: "40 of Trou-( (Tony Curtis); "If a Man Answers" (Sandra Dec, Bobby Darin) and "Three on a Match." Also coming up is "The Thrill of It All," with Grant's co-leader in the sophisticated (sex) comedy, Doris Day, plus James Garner. Another wave-rider, Rock Hudson, will be back with "It Seems There Were These Two Irishmen." Even Marlon Brando wi'il join the trend with "King of the Mountain." MGM has made Tennessee Williams' only comedy, "Period of Adjustment" with Jane Fonda and Tony Franciosa. The studio also lias two hopeful laugh-getters shooting in Europe: "Follow tue Boys" (Paula Prentiss, Russ Tamblyn) and "Friendliest Girls in the World" (Hugh O'Brjan, Dolores Hart).

"Mr. Hobbs Takes a Vacation" was Fox's biggest grosser of tin- year so far. The company is following up with another James Stewart comedy, "Take Her, She's Mine." Paramount is going along with the trend, having made "Who's Got the Action?" with Lana Turner and Dean Martin and "My Six Loves" with Debbie Reynolds. Currently shooting is "Paris When It Sizzles" with William Holden and Audrey Hepburn. Upcoming: "Come Blow Your Horn" for Frank Sinatra.

Warner Brothers made "Critic's Choice" with Lucille Ball and that veteran sophisticate, Bob Hope. Now in production is "Not On Your Life" with Robert Preston and Tony Randall, an expert at such films. The studio plans to film the Broadway smash "Mary, Mary" with tile original cast. United Artiste will join the 'Urma la Douce" (Jack Lcmmon, Shirley MacLaine), "Grand Duke and Mr. Pimm" (Glenn Ford, Hope Lange), "Pink Panther" (David Niven), "Five Pieces of Maria" (Danny Kayo, Mclina Mercouri) and "Shot in tlvo Dark" (Sophia Loren).

Oddly, Columbia, which practically invented the sophisticated comedy starting with "It Happened One Night" lias only one in the immediate future: "The Man From the Diner's Club" with Danny Kayc. But Columbia is also planning "Under the Yum-Yum Tree," "Playboy." "Three on a Couch," "Fair Game," "Uoar Like a and others. What do these comedies of Uie 1960s have that those of the 1930s lacked? Sex. Times have changed, and so has the production code. ROESKE REUNION HELD AT HALLSPORT The annual Alhert and Minnie Rocske family reunion was licit! Sunday, at the Grange Hall.

There were 80 members present. After a turocn dinner a business meeting was held and new officers were elected. Donald Hoi-sko was elected to succeed Francis Roske as president. Harold Hogan to succeed Henry Roeske as vice-president, and Joyce Roeske to succeed Dolores Roeske aa secretary -treasurer. Next year's reunion will also be held at the Hallspoit Hnll on the fourth Sunday in August.

Ever fi'll ribs of celery with a soft cheese mixture and then press the ribs back into K'talk shape? The next step is to slice and use as a salad with 1-ottuce and French dressing. WHAT IS AN INTERNIST? A physician specialising in the diagnosis and treatment of disorders affecting the inside of the body. Sometimes the symptoms of an illness can be almost the same for different diseases. Then, your family Doctor may wish the opinion of an Internist to confirm or help him make the proper diagnosis. This help often saves much sickness-lime.

It illustrates why it is seldom wise for people to attempt to diagnose or treat themselves. You are safer when you consult your physician. YOUR POCTOR CAN PHONE US when you need a medicine. Pick up your prescription if shopping nearby, or we will deliver promptly without charge. A great many people entrust us with their prcscirptions.

May we compound yours? Phone 921 HALLS DRUG STORE 176 N. Main St, WeKiviiit, N. PRESCRIPTION CHEMISTS Copyright 1962 (W-9-1-62) Wellsville Office Drive In Banking Friendship Office Canaseraga Office Angelica Office Looking Ahead to NEW FRONTIERS As America moves forward to hew frontiers, it presents to every American family, the stirring challenge to participate in this progress, Foresight in anticipating the opportunities that lie ahead, through the judicious handling of family funds, will prove richly rewarding to you and especially to your children. Feel free to call us for counsel. HALF HOUR FREE PARKING IN REAR OF THE DRIVE-IN THi TRUST COMPANY i OF AU.EGANY COUNTY JUembgr -jf Fedgral Penosjt Insuraafc Corporation i.