Show 3 to AoTcoStrS SbSrlpttS? Th K iel llJa u A SlMtb IOCSJ BWS a second elui matter according at Tbo AosoeUtod Pro CalUd Pr-egar yoa par moath tH-0of eiMiTHy n titled to theroditod for t£ia papor ana la republication t o no ettonrto aTWOrdon Uunbti SptSdit2 Utafc 0 tGeneral Has t £oor Logic On Formosa 3y Walter Lippmann S 1850 j Bill Has Enough Loopholes To Finance Korean War r With the Seventh fleet under orders from the president to prevent any attack on Formosa Just what Is it that has aroused General MacArthur? What has caused him to decide business between discriminates it is "in the public interest" that bank How a big Chicago J he should at this time make that In the public interest and business that runs contrary to the a public issue of Formosa between Senator himself and the' president of the a that told in letter is Republican welfare public United States? That is an unusual general to do In fact Ralph E Flanders inserted in Congressional Record "Jhe thing for aunusual indeed is it very LaSalle letter was written by the chairman and president of Satisfied Not General National Bank of Chicago' addressed to employees and the General MacArthur quite plain with the presly is not satisfied ident's decision of June 27 to pre "public The paragraph that won our attention said: "the occupation ot iiormosa I "For instance we have had loan applications from vent communist forces" and to let by out-"sithe determination ot me iuiuro status of Formosa V await the people who saw a chance to profit by buying up things of security in the Pa their regular business which they believed would be in restoration cific a peaceful settlement witn our off in or consideration by the short supply These loans would have been paid I we Japan But United Nations" them on made would have we and money Opinion wants to do MacArthur General to make to prevent the octhought it would be a disservice to the country some one mare nowofthan Formosa by communcupation those loans so we said no On the other hand if ist forces He wants to have the lis converting part of his plant's production to military goods future of Formosa determined now to have it determined in a and needs banking help that would interest us very much" and which calls for a reversal of way : One wonders whether the enterprisers who had figured the pledges given by tothethepresident United of the United States 'out "angles' by which they could pile up some speculative Nations when shown Formal Statement rprofits by capitalizing on the nation's troubles On June 27 the security council :the error of their ways refrained from hoarding and holding received a formal statement from less and another to' went or whether they or higher prices the president which said: "In order tnat mere may oe no Jethical source of funds and obtained loans in any quarter about our in doubt bestowed It happens that among the powers congress has tentions regarding Formosa I wish to state that the united btates nas 'upon the president is authority to restrict the flow of credit no territorial ambitions whatever bank in such' manner as to frustrate profiteers The Chicago concerning that island nor do we for ourselves any special pois doing voluntarily that which is about to be imposed by seek sition or privilege on Formosa The present military neutraliza law UDon all lending agencies of Formosa is without prejuJ If the profiteers did get their! loan and hoarded the tion dice to political questions affectOur desire Is that : scarce materials they coveted let us nope an excess proius ing that island f Formosa not become embroiled in tax nips them aplenty to the peace hostilities disturbing 1 J of the Pacific and that all questions affecting Formosa be settled bv Deaceful means as envisaged in the charter of the unitea Nations This pledge of our intentions was and amplified on August Some "N" Words to Watch repeated 25 in a letter oy inr Ausim xo me Americans generally have stout After" nine months of preparing to retire from politics secretary general of the united K ly resisted the elderly dictionaries' By Peter Edson NEA Washington Correspondent ' ' prouaciation "naip" for the word to er the private practice of law Governor Thomas E tions of WASHINGTON— Rearming No Territorial Ambitions ' Americans Also ignore nape Dewey of New York has been persuaded to apply once more General MacArthur's statement blithely the fact that "the nape of western Germany is now the numdirected againsi me presiaem s the neck" is redundant since nape ber one question in planning the de for the position of governor of the great state of New xotk ispromise that we have no tern fense of Europe against communism mind his is he The governor doubtless changed torial ambitions whatever concern means "the back of the neck" happy that But in dealing witn tms prooiem we not do that Formosa and American he The pro ing prevailing the main difficulty seems to be a Many a time since he announced his intention to retire Mer-riapo ourselves seek for any is: nap multiplicity of international com Formosa nunciation of nape must have had moments when he realized that no matter siaon or privilege on special mittees ail oi wnicn nave some inis that states Webster's nap MacArthur wants a very terest in the problem but none of how exciting and profitable the practice of law could be General as dialectal regarded by many special position on Formosa which seems to have final responsicome it would not possess the challenges and the fascinating He wants nothing less in tact Nevertheless Kenyon and Knott bility use of For the American College Dictionary than the Anyone who Is not completely aspects of public administration on the broad front pro-- mosa as anpermanent American air base confused by the present Jumble of the list Thorndike and Century Formosa is an essential link he international committees is either vided by the governorship of New York state in language designed to pronunciation nap as second choice an expert at diplomatic red tape or Of course the voters in November may retire the gov- argues is not normal iven tne nigner-up-s make us beloved by all mankind without comment chain" from which ernor but the consensus of political observers is that Dewey inWeancan"island National Socialist German inside this mazetooadmit privately The that there are dominate with many groups power and his organization are in a strong position Furthermore every Asiatic port from air Vladivos Worker's party was founded in writing memos to each other What to Singapore j General Mac 1919 and headed by Hitler from this points to Is the need for imthe governor has a record that appeals to voters in all strata tok mediate simplification One gander Arthur is demanding that we es 1921 'New York under Dewey has enjoyed progressive enlight tablish a military protectorate over The word Nazi Is pronounced in at the organization be enough to convert and that the island should German: NAHT-se- e The German- charts should ened and wise public administration as his record on institu Formosa Union — "Atlantic to the be incorporated into a permanent name of the is: Nationalsoz- anyone that a else Now" Or idea it proves 'tions public housing public welfare public works and fi American strategic system embrac ialistische party pronouncea: is organizagovernment ocean NAHL zoht "to aw entire Pacific see the NAHT ing nancial management reveal shuh The word tionally impossible the shore of Asia" than in the country This then is the issue which Nazi then is a phonetic represen- Top of Heap "Just Growed" There are far more good lawyers General MacArthur has chosen to tation of the first two syllables of of today's pile Is a At the good governors so the law can afford to take a loss through raise between himself and the National since the German "z and council oftop ministers This foreign Fort" in tion are pronounced alike is a somewhat loose organization It :a gain in public administration president: That we demand was not created by the laws of any mosa for ourselves — repudiating as: ts In Standard American Nazi is: participating country Like Topsy and reversine the Cairo declara In Eng it "just growed" It's unlimited to or: NAT-see- tion and our formal statement of NAHT-se- e whatever area it may wish to conpurposes made wnen tne united land the pronunciation NA£-e- e Nations voted the resolutions un is widespread or: sider is NAHT-siz'A council of foreign ministers Nazism Another der which we are acting in Ko NAT-siz'spelling is can be the Big Three— America rea General MacArthur does not Britain and France Or it can reprewhat we should do when the Naziism pronounced: General Eisenhower made a telling and selling talk to say or: sent the five Brussels pact nations security council reminds us of our Heard on a radio serial: "NESS- - Britain France Belgium Netherthe American people Monday night in behalf of the Crusade pledges for the word necessary lands and Luxembourg Or the 12 Argument The announcer's use of the Brit- Atlantic pact countries Or the 15 for Freedom a General Lucius Clay inspired program for a Strategic is council of Europe members Or the General MacArthur's strategic ish telescoping "NESS-uh-srecounter-attac- k on the propaganda front The Eisenhower argument itself even when it is hard to explain for during the 22 Marshall plan countries in the v stripped — as he strips it —of all broadcast in question he did not organization—for European economic speech is bound to cause Americans to sign the scrolls considerations give the British twist to other ary cooperation OEEC and moral them in a crusading peace drive and to make dollar is not clearpolitical to me The general word such as ordinary At any In spite of all this flexibility the "NESS-uh-srewas a of foreign miniswe rate work our his in hands that first says contributions toward the construction of powerful radio can from Formosa and the "island decided stoplight in an otherwise ters isofnota council to me minimized It was r stations through which "the big lie will be fought with the chain dominate with air power good Standard American speech out of such a council's deliberations every Asiatic port from Vladivos pattern It left me with the vague- that both the Brussels pact of 1948 big truth" tok to Singapore Obviously he ly annoyed feeling "Now why and the North Atlantic treaty of 1949 were born t he say that?" The freedom crusade's campaign to educate people must have meant to say that we didThe The Brussels pact set up the ary and -- ery words in "dominate" every Asiatic port J everywhere as to the United States and its peaceful and can Europe organizaif we dominate the air between the American usage should not be Union of Westerndefense economic for mutual ly island chain and the Asiatic ports telescoped or smothered Neces tion helpful intentions toward the rest of the world will be cooperation we do not have com sary for example should be given social and cultural But suppose functionary of Brussels oact operated It will supplement the government's pro- plete air supremacy at all times all its four syllables thus: NESS Chief orsanization is reallv Lord Mont could be and That Voice of America everywhere Being privately managed We are hearing the word negoti gomery of Alamein General Montjgram through then? Then Formosa might on tne radio as gomery's title is chairman of the the Crusade for Freedom probably can be more bold and What be dominated from the mainland ate "s" sound in commanders in cniei oi j&uropean ate" an with is that out knocked and Formosa be t blunt in its campaign than the Voice whichas a part of the might third syllable There is no ground forces His headquarters are and Okinawa might be knocked the sanction for it The "tr should at Fontainbleau France wun state department must integrate its pronouncements out and Japan might be knocked have the same sound as it has NATO Complex Set-u- p out if that is also to be part of in such words "sh" r the government's diplomatic procedures as nation patience The North Atlantic treaty or the island chain " cautious ambitious militia For sanization — now known at NATO— General Eisenhower's remarks amounted to a vigorous If American planes can fly from negotiate better say: a practically a duplicate was set Formosa up to Asiatic ate Okinawa t wake-u- p speech that induced pride in our might and humani portsy thenandAsiatic of the Brussels organization uniy planes can fly The Bell (Released by t it takes 12 countries instead oi live itarian behavior It was a welcome relief from recent be from (Asiatic fields to Formosa and Syndicate Inc) This is what the present complex our hands ad In Okinawa these NATO looks like littling oratory The genera is as splendid a salesman as a vanced islands would be a strategic The real governing body is the of asset we had certain control if soldier North Atlantic council It is made the air They would be a strategic oi tne up oi the foreign ministers liability if the local air defenses S Canada Britain FranceIcelif could be knocked out and Norway Denmark Belgium Can Prevent Seizure Netherlands Luxembourg Italy and SALT LAKE CITY Sept 5 (AP) Portugal Secretary of Stata Dean All that part of General Mac Arthur's argument which is de- Lowell Southam 27 Ogden was Acheson is u s memDer These big shots have many voted to showing the advantages of presented the championship trophy other things to do however so most I holding these advanced bases last night at the conclusion of the of It Is customary on a voting day to insert in the paper an our their work must be done by a rests on the assumption that there annual Douglas trophy model airI editorial reminder that the polls are open until eight o'clock council of deputies Charles M will be no powerful air force on plane contest at Saltair Southam tallied 154 points with Soofford New York lawyer is I and that now is the time for all mainland of Asia That is sure good citizens to take ad the true his can planes flying at speeds of more If S member Formosa be defended ly The "council of deputies is badly 100 miles per hour He won vantage of their right to vote So here is the reminder bu from the mainlandon if there is no than one third and named and has other complications three first places air mainland force the strong few fourths during the fouriday Two groups report to it who really judging by the interest that has developed in the last Thus the Seventh fleet can prob- two outrank it These are the military ably prevent the seizure of For- meet days it is not needed Gordon Snow 15 Logan was committee and the financial and mosa com as as Chinese the long Thanks to the lively contest between Rue L Clegg and munists do not have a strong air runnerup economic committee Apparently no group can do anything without the Wallace Bennett for the Republican nomination for senator force If they had one and were military approval of the others The to use it the position of committee is made up of the 12 to face Democratic Senator Elbert D Thomas and thanks willing the Seventh fleet would be The ministers countries' defense also to the interest stirred up by the rival nominees for loca wedinsly uncomfortable made up of finance mini is other Yet when General MacArthur sters—equivalent oz the u s sec seems certain that turns and legislative offices In both parties to the disadvantages of let retary of the treasury Formosa fall to the commun by vote counting time tonight a fairly large vote will have ting Military Board is is he reverses his assumption t been recorded Since the ministerial committees and shows what they could do from meet all the time either they can't a Formosa had if they powerful Today's Utah primary is a nationally advertised event air force based have their deputies Jt or the de on Formosa What fense ministers there is an Interi because of the groups and individuals everywhere who are is puzzling in his argument Is why national military production and we suppose that they would j interested - in Senator Thomas's political fortunes board which meets in LonThey haveshould supply"Under no air force if we held Forthe production board don own his of know that Thomas is the candidate that they would have party without amosa but force is a planning board for ocean shipheld For air if big they ( opposition What they want to know is who will Thomas mosa Surely if they had the air ping Under the defense ministers are out to knock "friendly i j have to face and what are his chances against that opponent force the chiefs of staff of the 12 counstallationa in the Philippines" from I Political tries But since they have other Jobs writers across the country will be speculating about Formosa then they have the air too they farm out their work to force to knock out friendly in the Utah senatorial contest from now until election day what is known as the standing stallations on Formosa group This is made up primarily Is not Formosa much nearer to of high ranking officers of the U S China than the Philippines are to British and French military estabThe utmost can claim for myself in my best days is Formosa? why then does the gen Pa is patient but he it like a lishments eral think we can defend Formosa Under the' chiefs of staff are var100 of the best one world in was the that I playwrights more securely than we can defend steam boiler with a safety valve ious regional planning committees made up of the chiefs of staff of which is hardly a supreme distinction —George Bernard the Philippines? The longer he holds la the bigger say 1950 the Scandinavian countries the Copyright Shaw Irish wit and playwright New York Herald-Tribun- e the explosion when it happens Low countries and so on Inc) TUESDAY EVENING SEPTEMBER " Our Changing World Bank Thwarts Greed - de ar i high-price- i i : Changes His Mind r - Take My Word- By Colby m - over-lappi- Pirtei Big Truth Vs Big Lie one-wor- ng ld m m NAHT-see-iz'- NAT-see-iz'- uh-sre- m ! Germany whose fate and mili tary status are the subject of so much talk in all these groups is now only an associate member of the consultative assembly of the council of Europe which has no authority but just talks and recom' i mends tax-fre- fine-toot- Jets Drop Bombs Accurately as Doors Go Upward LOS ANGELES Sept 5 (AP) One of the bugaboos of aerial warfare— how to drop a bomb ac- speeds-r-h- as curately at been solved by the air force North American Aviation Inc disclosed yesterday that bombs weighing from 500 to 4000 pounds were dropped successfully at altitudes up to 20000 feet In tests 5 bomber at with the four-je- t Edwards air base Muroc Calif In World war II the peak bomb-ru- n speed was 350 toj 400 Wind turbumiles an hour lence around outward-openin- g bomb bay doors caused the bombs to tumble erratically when released at higher speeds The 5 overcomes the problem by sliding the doors upward inside the plane jet-pla- ne B-4- B-4- m e" e" en-trolli- ng -- e" 1 -- pri-ivate- ee' No Reminder Needed ex-coes- European Defense Caught In Giant Red Tape Web re-ent- GI Bill of Rights Extension Dies WASHINGTON 5 ! Wage-earne- Sept Legislation to extend the GI bill of rights to veterans of the Korean war was written off today as dead for this session of congress i With departure of most house members for an informal recess veterans committee sources said there is no prospect for action this year on the dozen or so bills to give men now in service some or all the benefits awarded to veterans of World war II Some legislation on the subject is almost sure to be passed by the next congress 10-d- ay Poor Pa rs full-fledg- ed - It Happened in Ogden- - 20 (UP) — Years Ago x Notice was given at a meeting of Bidding farewell to James 7 Orr division manager of the Utah Power the board of directors of an assessSt Light Co and Mrs Orr prior to ment of $250 per share on capital thefr departure for Houston Texas stock of the corporation payable Oct 1 it was announced b J C Brittan's new fall hats — felts Nye secretary 'j velvets and chenilles — were selling J L Harris was proprietor of the at $295 angora and wool tarns Reed hotel barber shop and Fred for school girls $185 n Halverson was another of barber Ogden Weber county and Ogden city commissioners by accompanied The Philharmonic Society had county and city engineers had in- met at the home of Miss Jessie spected the Twelfth street road Lewis leading from Washington avenue to the mouth of Ogden canyon C H Keller Union Paflfic car inspector from Cheyenne wasA'In Team demonstrations of the club girls of Weber county were to Ogden' be held at the state fair said Miss of the Roadmaster McEntee Ellen Agren county home demon- Short Line had come in from Salt stration agent Lake on a business trip V Provo pears were selling at four Seventeen carloads of fruit from pounds for 25 cents peaches four California had passed through Og85 cents 25 cents or of per pounds box watermelons 10 cents each egg den over the Rio Grande plants 5 cents each tuna fish3 two for 29 cents pork and beans cans For A Llmlfd Tml for 25 cents raisins four pounds 28 certs shrimp 17 cents pack tomatoes' 14 cents beef roast 13 cents ber pound choice mutton Discount 8 cents per pound leg of lamb 15 WINDOWS STORM cents per pound fat chickens 23 ON cents per pound ' well-know- ' 20 sr: 5S0 KIMBALL STORM WIHDOV CO One of Nora's sisters is in a scandal but Nora Is not ashamed of her The sister she never peaks of la the one who takes in sewin' for a livin' Years Ago 50 4-- H Ogdonito Champ Of Plane Event s On Thursday August 31 Drew 4 pay a penny income tax for 1947 1948 and 1949— all as a result of Pearson in reporting on Tru man's crackdowns on General technical error in the revenue act The house adopted a provision to MacArthur and Secretary Matthews: said: "Another reason for collect 50 million dollars of these the crackdown was that General back taxes but believe it or not the friends iof big business on the Orvil Anderson of Utah comsenate finance committee havt now mander of the air war college struck out this provision air base Montgomtt Maxwell 4 ery Ala has been staging a sePercentage Depletion — The ries of lectures in which a presenate bill does nothing to limit ventive war is urged openly" the excessive depletion allowances Pearson also told how Father Ed- - for oil gas and other minerals mund Walsh of Georgetown uni which President Truman has described as the worst loophole in versity Jiad lectured on this subject at the air war college in" our tax laws This windfall costs Next day General Anderson the government 400 million dolattempting i to deny Pearson's lars a year 5 Oil Royalties —Oil story virtually admitted it A royalties few hours later General Hoyt are subject to regular income tax Vandenberg air force chief of rates- However the senate bill ha staff suspended General Andera special loophole to let oilmen' son out of paying income taxes in full All they need to do is "sell" their Pearson Drew By riant to oil royalties then the WASHINGTON Sept 5— T h e same income is subject to the low senate is now debating a tax bill er capital gains rates 6 Stock Options— Under the which will affect the pocketbook of almost every American family senate bill corporate executives Yet this important legislation is so could draw part of their salary full of fancy legal language that in stock options1 which would be half the senators— let alone the taxed at the capital gains rate In man other words a S30000-a-yepublic— do not understand it As a result the big corporation would have to pay $12000 in taxes lawyers and tax lobbyists who on a $20000 cash bonus but only helped backstage to write the tax $5000 in taxes if his bonus wera bill have been able to juggle the paid in stock options commas and slip in clauses that Wold Exempt Stock will save their clients millions in — This pro- 7 Corporate Spin-Off- s taxes But every penny that the vision new stocks would exempt big taxpayers wriggle out of pay- from taxation Thus a corporation ing will have to be made up by could pay off its stockholders by the little taxpayers who can't afup a separate firm and dissetting d ford to lawyers lobby tributing the stock Then the new for special tax privileges be dissolved and the no is to state stock could It exaggeration In sold way the profits in the form adopted by the would be taxedthis that at the capital gains senate finance committee the tax rate instead of the higher rate on bill would permit enough money to dividends slip through loopholes to finance a 8 Amortization— Though tha filaige part of the Korean war nance committee rejected a tax on ' Ironically it is the same senators excess war profits the committee who profess a belief in saving fed- allowed special tax benefits on war eral money who are most willing and plants equipment Into let tax millions slip through stead of the war 15 to 40 year usual these loopholes for tax purposes corThe principal senators who as depreciation can now write off the enmembers of the finance commit- porations cost in five years This actire tee are supposed to tighten the tax celerated was probloopholes but didn't are Demo- ably the depreciation greatest source of crats Walter George of Georgia profits during World war Harry Byrd of Virginia Ed John II yet the finance committee voted son of Colorado and Robert Kerr not to recover these excess profits of Oklahoma plus Republicans 3 Property Sales— Another tax Eugene Millikin of Colorado Rob loophole which costs the governert Taft of Ohio Hugh Butler of about 70 million dollars a Nebraska Owen Brewster of Maine ment year is a special provision favor--in- g and Ed Martin of Pennsylvania the taxpayer who sells busiFreshman Study ness property If the sale results However two upstart freshmen in a profit it is taxed as a capSenators Paul Douglas of Illinois ital gain If it results in i loss it and Hubert Humphrey of Minne- is allowed a full deduction sota decided to make a thorough To Bring Back Profits study of taxes on their own They 10 Subsidiaries— The called in the best tax experts in senate Foreign domestic cor- allows bill Washington both from the treasury porations to liquidate subsidiaries department and private practice overseas (such as oil companies) e Together they went over theh sen- and bring back profits ate's tax bill with a never have that passed through the comb and exposed 12 glaring loop federal income tax stream holes Here they are: 11 Holding Period— Under ex1 Dividend Withholding — Each law a capital gain is taxisting year stockholders fall to report In able at a maximum 25 cent their Income tax returns one bu rate if the asset is held per over six This months However the senate has lion dollars in dividends represents a loss to Uncle Sam of reduced this to '"a scant thre 160 to 170 million tax dollars months in order to benefit Wall have their taxes street speculators They will now withheld from their salaries yet be able to convert speculating the taxes on dividends are not profits int ocapital' gains in only withheld days despite the fact that ninety — The 2 Family Partnerships people consider a ninety-da- y senate bill allows businessmen to few to be anything but investment make fictitious "partners" of their pure speculation wives children and other relatives 12 Tax Free Th in order to evade taxes This prac- senate bill also Redemption— an excontains tice was stopped by supreme court tremely generous provision whereafter babies were listed as corporation owners could draw "business partners" How- by accumulated earnings and down ever the present senate bill now profits free of income tax to the reverses the supreme court deci- extent used to pay estate and insions retroactively to 1938 heritance taxes No Tax 'Due to Error Note— It is significant that two 3 Life Insurance Companies— At of the senators who fought harda time when - everyone else was est for these loopholes were miloverburdened with taxes life in lionaires Bob Kerr of Oklahoma surance companies actually didn't and Eugene Millikin of Colorado— ' r- 3631 lews Avenue Dial I1 Day mr Nigh ' Aunt Het it j i I THE B H GODDARD AGENCY is pleased to announce an expansion of its mortgage loan facilities by Incorporating the WESTERN MORTGAGE LOAN CORPORATION (in the futurewe will be known by this name This was necessitated by the aswlng rftmana1 far Inturenca tempeny loans In fitM tf i Jitmt financing I build aur mortgage loan plant with ent ef our er heme Invit wa bvy yaw te ditu xpeVteton : Safer yew 'axparioncod officor FHA LOANS G I LOAMS longest Terms Offices at 420 24th Street Jc Wo will continwa to sarva year tl C 2 LOANS ON OUR OWN PLAN Lowest fnferesf Phone Ittato ami Insurant two's w 3-54- 33 havo sine 1114 0 |