The Courier News from Blytheville, Arkansas on October 7, 1949 · Page 2
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The Courier News from Blytheville, Arkansas · Page 2

Blytheville, Arkansas
Issue Date:
Friday, October 7, 1949
Page 2
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PAGE TWO BLYIHEVTLLB (AMC J COUKIER HEWS FRIDAY, OCTOBER T, .1949 THf NATION TODAY— U.S. Social Security Tax Yields $7,800,000,000 And Agency Pays out $700,000,000 o Year - , By, Junn Mutow ' WASHINGTON, Oct. ,7. W)—Do .you ever wonder what happens 1 t» the «ocl«l security fax sou pay into the old-age pension plan? 1 Th«« »r» arguments over how that tax money Is handled.'But there U no sign that Hie present system will be changed. Th« "arguments' will be outlined briefly here. But, Jlrst, here is tlie btekgr ouhd. 13 you're covered by the pension plan, you and ynur boss each pay".yearly one per cent of your salary up to the first $3,000. That's a total of two per cent you and your boss pay. The government now is collecting yearlyaboiit $1,800,000',000 that way. Out of that, it's paying yearly in* -i lond Issue Approved '•or Second Tim* BENTON. Ark, Oct. 7. (AP)-i- A SO.OOO bond Issue for a municipal wk and swimming pool was. ap- iroved for the second time'at an ilection here. The vote on the proposal to-also eavy a four-mill tax was 351 to 124. .'he issue was approved last'March but legal errors in calling the elec- ion led to a decision to hold another election. pensions and other benefits about »100,000,000, leaving a yearly reserve of around »1,100,000,000 Since 1*31,'. when It first started collecting this tax, the social security system his; built up a reserve of • round $11,700,000,000 The >money doesn't He .idle. Con- gresi siid It should be Invested in government bonds, which now pay around 2 1-8 per cent Interest. So .i.the "social security reserve fund,/invested in those government bonds, is ''earning, money. So much for that fo'r.a moment. The government has a debt of *as5,ObO,(X)0,000. It got into that debt mainly in the war and depression day*, , /That's when the cost of running the government.far exceeded the money It,was able to.collect, mostly in income and; corporation taxes. So, as It got further and further into debt and needed 'extr'a' money to keep going, it borrowed money It did the borrowing by selling bonds to banks, life insurance companies, you and me, and to the social security reserve fund. On all the bonds it sold, of course, including bonds sold to the social security reserve fund, the go\ eminent must pay interest, So the government has a double same time paying interest on It. man and hU employer wlio pay a; total of two per cent social security tax on the man's first $3,000 of salary, also pay Income taxe.s. Tux Issue Discussed And—part of their income Is used for paying off some 9' the Interest on the debt—including the interest on the government bonds bought by the social security fund. Critics of the present system say this Is doiibie taxation. They suggest that the- old-age pension plan be placed on a pay-as-you-go basis, which means: Instead of collecting enough social security taxes every year to pay out social security benefits for that and still have enough left over to build up a reserve that can -be invested in: government bonds, the government should do this: Collect yearly .from the people in bid-age pension coverage enougr money to pay the old-age pcnsioi: expenses for that year. In other words, put it on a year-by-year expense basts. Those In favor of the presen! system argue this way: the prcsen 1 system « all right. Life insurance companies Invest some of their reserve funds in government bonds. .Further, if the government hadn in,handling that debt: to pay i sold bonds to the social security off some of the;debt while at tho |system, II would have had to sel hem anyway to banks or Insurance companies since It needed money to ceep running. By selling the bonds, the government would have had to pay Interest on them anyway, Just as It's paying Interest on the bonds sold to .he social security reserve fund. No I Double Taxation So part of the Income tax money —paid by people who also pay the social security tax—would have to be used in paying off the interest on the bonds no matter v.'ho had bought these bonds. Therefore, friends of the present system say, what Is happening now cannot truly be called double taxation. And they 'say lurthcr: as time goes on and more people draw pensions,^ pay-as-you-go social security tax will mean a continually higher tax. with no reserve fund, helpet out by interest payments, to draw on. : .The House Ways and Mean? Committee recently backed up the present plan as the "proper (orm of investment." And It has received the blessing of a special committee of educators, businessmen, socia workers and political scientist, headed by Edward R. Stcttlnius former secretary of state. This committee—'called the Ad visory Council on Social Security— was appointed by the Senate Fi nance Committee to study social se curity problems. In its report it sail In part: • "The investment of the old-age . . . insurance funds in government securities does noi mean that people' have been or will be taxed twice for tile same benefits, as nas been charged. Liquor Regulation Applies to County And Not City Unit State Revenue Commissioner Morley's proposal,. to .restrict. the ; number of retail''liquor' slorts to one for each 2.509 population, If applied to Blylhevllle would reduce the number of outlets from 13 to six, It was disclosed yesterday. Blytheville's population, based on the 1948 special census, is 15,091 and the city has licensed 13 dealers. These dealers also, hold state permits. The stale official, nowever, explained that the new regulation is applicable to counties, and not individual cities. Those holding permits will not lose them by reason of the order, but the rule'will apply to issuance of new permits, and where a county has more stores than one for each 2.600 population the number will be cut down when applicants do not se'elc to renew their licenses, or lose them through revocations for law infractions, Mississippi County has 41 licensed stores, and a population to Justify only 32 under the hew rule established by Mr- Morley. Tokyo Rose Gets 10-Year Term And $ 10,000 Fine tor Treason ! SAN FRANCISCO, Oct. 7_i(>p)_»_ Tokyo Rose, who "couldn't believe ~ _ n " they would send me to Jail," today I Prague Protests Matt faced fen' years In prison and a Arrests New Controls *10,000 fine in addition to the stlg- **"""' ™ fw «•«""'»•* ma of being a traitor. -. TThe diminutive former UCI^A cb- d whose real name is Mrs. iva D'Aqulono stood In abject silence FPC Dismisses Petition To Obtain New Gas Line WASHINGTON, Oct. l—lif)— The Federal power Commission lias dismissed an application for authority to build a $89,902,250 natural Illinois. The application was filed last November by Mississippi River fuel Corp., St. Louis. The commission said^ the company agreed to the dismissal. . The 650-mile pipeline.would have Increases the daily delivery capacity of Mississippi's system . by 500,000,000 cubic feet. Flier Grounded by CAA SANTA MONICA. Calif., • Oct.'7, I tft'i —Tile pilot who crash-landed a plane Saturday on a Los Angeles I boulevard, killing singer Buddy I Clark and injuring five others, was {•rounded- yesterday and charger ; with "careless and reckless" flying PRAGUE, Czechoslovakia, Oct. 7. IAP)—Mass arrests of Prague citizens and new government controls as federal Judge Michael J.'Roche pronounced sentence. I ; couldn't believe they would send me to Jail. I did everything I could for the Americans." Then sentence appeared to stun the 33-year-old woman who stood with downcast eyes, body stiffly tensed and hands clasped behind her. She had been standing for almost half hour while defense attorney Wayne Collins pleaded for the minimum sentence—five years Imprisonment and the $10,000 fine. The maximum is death. Collins said he would appeal and ask for bail for his client next- week. It lie fails, Tokyo Rose will go to a federal prison, probably the federal refoimalory for women In Alderson, W. Vs., where Mildred "Axis Sally" Glllais, her counterpart in the Eureopean war theater, Is held. If Mrs. D'Aquino falls in her fight to keep out of prison she would be eligible for parole after serving one-third of her sentence Her husband, Felipe, sails for Jap-' an today aboard the Pacific Far East\LIne ship Trade Winds.; Iva. was. convicted Sept. 29 of one count of treason: Broadcasting after the Battle of Leyte something like thb: ; "Now you fellows have lost all your ships, your are really orphans of the Pacific. Hose are you going to get home?" " The jury acquitted her of seven other counts of treason. ; over the church were reported In the Czech capital. Reliable sources said nearly 1,000 persons were arrested In Prague Tuesday night..There was no official confirmation and reasons 'for the arrests were hot known. . , Death Probe Shows Inmate Hot Mistreated MALVRRN, Ark., Oct. 1. (AP) Prosecutor W. H. McClellan has found no evidence of mistreatment of Mrs. Era Hubbard, 49, El Dorado, who died at the Benton unit of the State Hospital Sept. 14, Deputy Prosecutor J. Hugh Wharton announced at El Dorado. Sept. 20. that he would ask McClellan to make an Investigation .Wharton said an El Dorado doctor reported the woman's body showed evidence of 'Infection from fl severe' scalp wound behind the left ear. . The Malvern prosecutor -said "You can quote me t as saying I found no evidence of mistreatment.' He added that his report closes the matter, "as far as I am concerned, but I will offer the El Dorado people an opportunity to present evidence to the grand jury If they wish." Dr. George W. Jackson,, state hospital superintendent, said hospital records shpw Mrs. Hubbard suffered from high blood,pressure and a kidney ailment. by the Civil Aeronautics Administration He Is James 3. Hayter, 27, who took a charter flight party from Burbank to Palo Alto .Calif., for the Michigan-Stanford football game, and return. Unusual Gifts Distinctive Curtains S« Them at the Linen & Curtain Shop '"« So First Phone No other low-priced car offers you all these EXTRA VALUES Certt-Sofe Hydraulic Brakes mon outstanding than ever before with new Dubl-Lije Rivetless brake linings that last up to twice as long. World'* Champion Valve-in-Head Engin* the extra efficient power plant witfi the valve-in-hcad design that's setting the trend for the automotive industry. Center-Point x , , Steering \vilh control centered' between tlie front wheels tor maximum driving-ease with minimum driver fatigue. • Fisher Body " . Styling and Luxury •with smooth, graceful curves, new interior richness and such extra luxuries as Push-Button Door Handles. Chevrolet and Chevrolet alone offers you all these EXTRA Values at lowest cost! • Ixtra Economical to Own and Operate and traditionally worth more when you trade; for Chevrolet is America's most ivaiittd motor car—new or used! Curved Windshield with Panoramic Visibility supplying all that extra vision which means extra safely in driving with a fuller, freer view all about you. Ftsher Unisteel Body Construction with sled welded to steel above, below and all around you for the highest degree of solidity, quielness and safety, S-lnch Wide-Baie Rims, plus Low-Pressure Tires the widest rims in the low-price field—plus extra low-pressure tires-tor greater stability and riding-comfort. Longer, Heavier, with Wider Tread the hig car in the low-price field, with all the advantages of more riding-comfort, toad- sleadineu and safety. SULLIVAN-NELSON CHEVROLET CO. 301 W. Walnut, Blythevill* Phone 578 See us for your drenn kitchen. Start enjoying llie work-snviag wonders of » genuine, white-enameled steel Youngslown Kitchen. You'll bend less, sloop less —you'll fairly fly through the dishes. How these nationally advertised beauties uork for youl Call Unlay. . p exptrt will cotne to your home al your convenience anil plan your new kitchen in immature. No oast or obligation! YouiigstownKilcheiiaiJer Cabinet Sint. 54" model-twin, fluted druo- Ixjards, cullery drawer, two roomy shelves, one-piece, aciJ-resislinf; porcelain-enamel lop with impressed so.p ilish. swinging mijing-lauctl, crumb- cup stuiner, 4" back-spluhw, r»- crs,xA !oe and knee space. Flanked by Youngslown Kitchen LWM cabinets ind will c»l»ciet« «x«cliir M shown. Tli!* umultrjul pria it ftr Ociob* only. CW« KM riffct KHdimiatf kc IMM, mt pun* You con'l I. 2. H much yo*> pay' furuuu ' Twi«.D«lu»« MCtl II. Buy In Ottobvr for a IrfetinM of convenience and Mrvk*. No eortFy remodeling. F<ut indal u. «it«u«f VIM 11. Situ IM V.. l>n*i tm IL IMM tlMlfl I N. Uvtai n+Qm* ** 11. RMMd M M4 fcMlfM _ II k» tami mmmt (m BY MULL1NS ADAMS APPLIANCE co., inc. 206-208 W. Main Phon« 2071 Hillbilly Jamboree & Dance LEGION ARENA, SAT. OCT. 8 with SKIP SKIPPER and All the Boys —featuring— Miss" Sally Carter and Cicero Carter Those Who Like to Stfuare Dante Are Cordially Invited! Adm. Adults 75c — Children 25c This Adm. Includes Both Show & Dance •M ,'! In England It's the Chemist Shop In France It's the Apothecary Shop In Blytheville It's BARNEY'S DRUGSTORE For Expert Prescription Service i Soybean Sacks new 10 01. FALL SEEDS Alfalfa, Rye, Wheat, Oals & Veleh BLYTHEVILLE SOYBEAN CORP. 1800 \V. Main St. Phone 856 - 857 STABBS Service Refrigeration and OIL STOVE REPAIR Phones 2559-55'l Blytheville Willys - ^'>' 1; NU-WA LAUNDRY-CLEANERS We're featuring Chevrolet Super-Service Specials all this month —so "ALL ABOARD FOR VALUES UNLIMITED! DEFOLIATE AIRPLANE Perfect coverage. Defoliant available at competitive prices. SCRAPE AGRICULTURAL SERVICE 2 Miles South of Dlylheville . Phone 4388

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