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Page: of 6

212 W. Main Street Commercial Street
Grass Valley, California Nevada City, California
‘ Telephone 1136 Telephone 36
JOHN D. TRUSCOTT -Publisher
GERALD B. WALLACE Editor
Entered December 5, 1926, as second class matter at the post office
at Nevada City, California, under Act of Congress of March 3, 1879.
Adjudicated a legal newspaper November 6, 1951, in Nevada County
Superior Court, Decree No. 10023.
Subscription: Yearly $3.00; Six Months $1.75
Advertising Rates on Request
NO SQUAWKS DURING WINTER GAMES
California will be host next week (February 18,28) to
the winter sports athletes of the world, who have come to
the state to participate in the VIII Olympic Winter Games
in Squaw Valley. ;
More than 800 men and women from 33 countries are
expected to compete in dozens of skiing and skating events
designed to test their skill, speed and stamina, from which
world champions will emerge.
It should be a marvelous experience for the estimated
85,000 spectators who are lucky enough to witness each day’s
events and, barring bad luck, the Games should earn California a permanent place in the forefront of winter sports
areas of the world.
While there is much criticism as to the wisdom of spending millions of dollars of state money in preparation for the
10-day Winter Games with little assurance of having anything worthwhile left afterward except memories, these
squawks should be subordinated during the Games. There is
time enough for them later.
Every effort should be exerted by Californians before,
during and after the Games to extend to the visiting athletes and their entourage a warm Western welcome, tod make
them feel at home and to send them away with pleasant
recollections of our sportsmanship and hospitality.
We invited them here; they. are our guests; they. deserve our best.
.
oO
A little of the color and vigor of state government went
away when Joseph R. Knowland retired after nearly 25 years
of service on the State Park Commission. Never one to dodge
an issue, Mr. Knowland conducted his public service just as
he does the Oakland Tribune, with vigor and forthrightness
and a crackling confidence in his own beliefs.
The Joe Knowlands of American journalism have been.
an invigorating force in this Nation’s economic, political and
intellectual growth. They are, as Herbert L. Phillips of the
Sacramento Bee expressed it, ‘“‘vociferously expressive” men
who meet public issues head on, often with “fierce cogency.”
It isn’t necessary always to agree with such men in order
to admire their intellectual vigor, and to welcome the high
voltage charge they bring to public affairs. They are a breed
whose ranks are all too thin, and we hope that the autobiography Joe Knowland plans to write, now that he will
have a little more time, will provide the vicarious jolt some
young editors and public servants-to-be need to turn their
latent talents into wholesomely aggressive careers.
0
LAW SHOULD BE LAW
: The United States Supreme Court: has righted a wrong
it committed four years ago by reversing its then judgment
that U. S. civilian employees and dependents of U. S. military forces overseas could be tried by courts martal. Interestingly enough, it was Justce Tom C. Clark who wrote both
the recent opinion and the one in 1956.
The court’s action upheld the provisions of the 5th and
6th amendments guaranteeing American ‘citizens not in. the
military service the right to a trial by jury and all the concomitant protections. Amditedly, the decision poses some
problems for the Justice Department. Will U. S. civilian offenders in foreign lands now be left to the mercies of local
courts? Or will some provision be made for the extension of
the jurisdiction of federal courts into areas abroad where
U. S. civilian personnel are stationed? ,
What ever the solution, the court’s action was necessary. It doesn’t, however, answer the question: Why did
the court ever rule otherwise? The Constitution is clear on
the point at issue. The court is the interpreter of the Con_Stitution. Perhaps the trouble has been in this and other
cases that the men on the court have sometimes sought to
read into the Constitution what their own philosophies persuade them it should say, instead of what it does say.”
TAX-CUTTING GOES BI-PARTISAN
__ If Governor Brown adheres to his “no tax cut” polic
it will be at the expense of a fight with members of his ame
party, as well as Republicans. State Senator James McBride
of Ventura, for example, has announced that in collabortion
with Republicn Senator Richard Dolwig of San Mateo he will
sponsor a series of bills designed to relieve the tax burdens
of retired persons, working mothers, widows, and individuals
who a aes ea are rg ecu The savings to these
» under the McBride-Dolwi r estimated Poypior ne lwig program, would be an
n additional saving for Californians hit b illness would be provided by another tax cut bill Sy Re
duced by Marin County’s Republican Senator John McCarthy. The McCarthy plan is to remove the sales tax from
medicines and drugs, for a total saving of $5 million.
With a minimum surplus of $70 million having been
estimated for the end of the fiscal year, there are strong
arguments in favor of giving the sick, the needy, and the
aged a tax break, It will be interesting to see whether the
Governor can sell his colleagues as weli as his opposition
the idea that it would be more beneficial to their constituents
to keep taxes high and use the surplus for state building
and construction that otherwise would be financed by bonds.
Tax Trends
Californians harboring any
shreds of doubt over the tax trend
are in little position to relax and
enjoy it—the trend is up, abruptly up!
State, local and federal tax collections in California rose over
$539,000,000 above last year’s figure, according to the California
State Chamber of Commerce, to
‘reach an all-time high of $10,953,276,588 for the 1958-59 fiscal
the State Chamber report is as
follows:
Federal tax collections for the
1958-59 year are $6,923,918,000,
an increase of more than $169,000,000 over the previous year.
State tax collections amounted
to $2,018,358,588, as compared to
$1,842,775,487 for the prior year.
Local property taxes, based on
the Chamber’s estimate of levies
by county and city governments
and school and special districts,
amounted to $1,819,000,000 as
compared with the previous year’s
$1,635,900,564. In addition, city
and county sales and use taxes
amounted to $192,000,000 for the
year as compared to $181,578,412
for the previous year.
In the state tax breakdown,
with one hand and take it away
with the other.
On the surface, the Mills proposal sounds sensible. It'-is: (1)
end all deductions from income
now taken before income tax
rates are applied; (2) keep the
$600 exemption for each taxpayer
and each dependent; (3) reduce
rates to about. 40 per cent of
present rates and fix a top rate
limit of 55 per cent. The result:
the;same total tax take as before.
There are certain definite advantages: to the scheme. For one
thing, filling out Form 1040
would be a breeze. For another
the lower rates would mean that
when an employee got a raise in
pay he could figure on keeping
more of it for himself.
But on the whole, the plan
would result in scatter shots of
benefits and penalties to various
groups and categories of taxpayers which, in the long run, would
probably leave most people right
where they started from.
Single people would benefit
greatly from the reduced rates,
because their deductions seldom
can match those of married people. On the other hand, the present automatic deduction of 10
per cent eliminates large numbers of people in the lowest income groups from paying any
tax. Single, “starting out” people
with low incomes might therefore pay more than at present.
Married people would pay
more, because. the split income
provisions of present law would
be eliminated, although it is possible that married Californians,
living in a community-property
state, might regain an advantage
over other married folk they enjoyed before the splti income feature was made to apply to people
in all states.
Theoretically, wage and salary
earners would benefit from the
Mills plan because of the lower
rates, yet if they are homeowners
they would lose, because the
amounts they pay for property
taxes and interest on the mortgage could no longer be deducted
from taxable income. And if they
or their children run up heavy
medical bills, they could no
longer claim that expense as a
deduction.
On one end of the income scale
many executives would be less
well off because lavish expense
accounts would no longer make
sensible tax policy for businesses.
On the other end, retired people,
including pensioners on Social
Security, also would be less well
off because they would pay a
tax on their pension incomes.
Maybe it would be simpler just
to abolish the income tax.
state sales and use taxes accounted for $631,096,939 of the total
tax collections as compared with
$603,664,637 for the prior year.
Again, way. back in 1940-41, state
sales and use tax collections totaled a mere $109,233,942, while
city sales and use taxes were a
modest $5,112,737.
During fiscal year 1958-59 state
highway use fund collections totaled $452,893,276 as compared to
the prior year’s $434,963,090. That
money includes $318,271,694 in
motor vehicle fuel taxes; $123,370,499 in motor vehicle fees and
$11,251,083 in taxes on for-hire
carriers.
In the year’s period, school district taxes jumped $101,896,000 to
accommodate the state’s burgeoning school population. The
total for 1958-59 was $872,000,000
as compared to the previous year’s
$770,104,000. In 1940-41, by way
of comparison, when there were
far fewer children, the total school
district taxes amounted to $101,237,631.
As a factor for tax measurement, the State Chamber pointed
out that the population of California in April, 1940, was 6,907,387. Today it is estimated at 18,764,000. :
tax problems! :
to do
grant it, with a national budget]
of 80 billion dollars plus?
Growth, like inflation, brings :
for bribiny disc
¢ their offerings on
for handing / Out payola. And already Mears that the attack
on prove to be a
death blow to Rock ‘n’ Roll.
Dise jockeys, it must be assumed, ‘are human, too. Undoubtedly they disliked putting Rock
‘n’ Roll on the turntables as much
as other people disliked listening
to it. Now that the incentive, in
the form of payola, is being removed, radio stations all over the
land are announcing a retreat
from Beat music to “good” music
such as zither arrangements of
“The World Is Waiting for the
Sunrise,” and revivals of old
Jeannette McDonald and Nelson
Eddy albums.
Payola became a common practice in the recording industry as
a result of an overproduction of
records. In pre-war days, single
45 rpm discs were manufactured
almost exclusively by four companies: RCA Victor, Capitol, Columbia anid Decca. Now these
major companies turnout only 25
per cent of all singles—the rest
are produced under more than
1,000 different labels.
The reason for the proliferation
of producers is that production
costs are low and the chances of
big profit are high. A small recording company can hire an unknown singer, four or five musicians and a recording studio, cut
a record and arrange for its distribution to retailers for a couple
of thousand dollars. If the record
makes the “top forty” list—and
some mighty strange entries have
made it—the returns may be fantastic.
Last year, according to the Wall
Street Journal, more than 12,000
different singles were issued. That
means that radio stations are
deluged with them at the rate of
more than 200 new releases: a
week.
Most stations attempt to keep
up to .date by assigning someone
to listen to them, but the quantity has grown to such proportions that often only the first few
bars are played. Obviously, to be
heard, the discs have to have
sock, if not rock. '
Under these. circumstances,
payola. became the way some
record companies made sure their
new offerings at least got a hearing. Without payola, there will
be fewer fly-by-night records,
and therefore less Rock ’n’ Roll.
Already, Elvis Presley has announced that when he gets back
in civies he’s going to go high
brow and emulate Frank Sinatra.
“Snowshoe” ‘Thompson, pioneer trans-Sierra mail carrier,
was born in Norway in 1827 as
John Torsteinson’ Rui.
of smog and education before the
lawmakers.
The budget session itself, however, promises a good bit in the
way of fireworks. Last year Governor Brown secured legislative
japproval of substantial tax in
creases to meet an anticipated
deficit. By year’s end it developed
that the new taxes would be more
than enough to offset any deficit
and that the state now was confronted with a surplus of $70,000,000 or more. Surpluses naturally set taxpayers to thinking
of tax reductions and to people
with pet projects to thoughts of
getting the funds to finance those
projects.
Consequently, the Administration, if it wishes to spend the surplus, is going to have to persuade
its Democratic majorities in the
Assembly and. Senate to vote
against tax cuts certain to be
recommended by Republican legislators. Many of the GOP lawmakers now are in the happy
political spot of being able to/
say “we told you so, all of those
taxes weren’t needed.” Ge
On smog, the Governor has said
he will propose legislation to require the installation of anti-smog
auto exhaust devices, and legislation, as well, for a test center to
screen exhaust dévices,
Governor Brown says, too, that
he will propose spénding $50,000,000 each for new building at state
colleges and at the University of
California. The Governor indicated, as well, that he will submit
the recently revealed college-UC
master plan for higher education
to the Legislature. The plan
would tighten up entrance requirements to cope with increased
enrollment.
Governor Brown, while considering the matter, to the moment
has not said that he would open
the special session of the Legislature to clarification of the issues involved in the $1,750,000,000
water plan. Many groups contend
that without clarification the vitally important water bond proposal may face defeat, thus requiring its resubmission to the
voters at a later date.
Already, at any rate, it is clear
that the lawmakers will be confronted with touchy tax, smog
and education problems come
March—and most observers will
give odds that the list of subjects
will be considerably longer before
the lawmakers leave Sacramento.
Yosemite Valley was the first
opened to travel by wheel vehhicles on June 17, 1874, with
completion of a toll road constructed by the Culverville and
Yosemite Turnpike Co.
Try Nugget Want Ads
Winter D
control of
California §
speed well
or swerving; (5
(6) don’t a iat
a lower gear or drive range
HOW TO STAY OUT OF SKIDS— ‘to
tate Automobile Association
below dry-road speed;
steadily; (3) take curves cautiously;
) avoid lying the
; and (7) if
it gently.riving
ora ennetarey es
Tip
4 maintain tractio
automobile when driving on ice or con ae
says to:
(2) keep ae) Nb sont
(4) avoi
icki
brakes suddenly or sleet,
necessary to shift to
® milserabls ear nolees and poor
EAR NOISES relieved!
“Once again we legislators face
the job of working ‘out the hefty
state budget for the next fiscal
year. As the budget bill went
over the desk at this session, it
called for around $2.5 billion in
appropriations, a sizeable amount
in any league.
This figure represents an increase of about 10 per cent over
estimated total expenditures for
the current year, which are
placed at slightly less than $2.3
billion. California will again lead
all the 50 states in the size of its
annual budget.
During the one month recess
before we reconvene in March,
the ways and means committee
of the Assembly and the finance
committee of the Senate will be
in practically constant ‘session,
going over the budget with a fine
toothed comb. As in the past, they
will divide themselves into a
number of subcommittees, each
of which will review the request
of a particular department or
agency in great detail.
Appearing before these groups
will be a number of fiscal experts. Those from the department
of finance and from the agencies
will, of course, be on hand to ex‘quests. Those from the office of
our own legislative analyst may
agree with the figures submitted,
but they may disagree, and recommend the elimination or reducis sent to the Governor.
When each of these two major
committees agrees on its version
of the budget ‘bill, the measure
willbe brought before its full
house for consideration. Any differences between the bills finally
passed by the two houses will be
ironed out by conference committees before the final measure
is sent to the Goevernor.
From the information already
made available to us, it seems
that it will be very difficult for
us to make any substantial reduction in the total budget requested. As I have commented
before in this column, there are
many items which are, for all
practical purposes, frozen in the
State Constitution or other statutes. Neither your Legislature
nor the Governor can control the
amounts needed to carry out the
functions involved, but the necessary funds must be appropriated.
An important factor in the 10
per cent increase expected over
this year is state support for
public schools. On the basis of
CONSTIPATED?
Medical reports show
how folks over 35 can
establish regularity
After 35, irregularity often becomes a problem. What you is
something that aids nature and helps
establish regularity. Such an aid to
regularity is the daily use of SERUTAN.
Here’s medical evidence: A group of
men and women took sERUTAN daily
under medical supervision. In case
after case sERUTAN, taken daily,
bela? establish regularity. So, for
real relief from constipation after
35, try SERUTAN, powder or granular.
GERUTAN
“Read it Backwards”
plain and defend the budget re}
whole wheat muffins,’ orgravy, mashed potatoes, combi.
nation vegetable. salad, peach
Thursday: Beef and vegetable
stew, lettuce salad, cocoanut pudFriday: Chicken noodle soup
and crackers, % stuffed egg, apple cobbler, peanut butter bread.
Bread, butter and milk served
with all meals.
crystal gazing by the experts, we
are told to anticipate having to
pay an additional $40 million next
year to local school districts.
Average daily attendance is forecast as increasing by 200,000 students. The state is obligated to
do its part in providing classrooms and teachers for them.
Another important reason for
the rise in the budget is the fact
that the Administration has asked
us to approve additional welfare funds to pay for larger welfare payments to the aged and
blind. In our 1959 ‘session we
raised these benefits effective
the first of this year, so now we
are asked to authorize funds to
pay the upped grants for the
fiscal, year. Another item under
this heading is the cost of medical
care for the totally _ disabled
which we added ‘to the law.
A third major. factor is increased demands for capitol construction funds. Included in the
budget is $100 million for new
buildings needed by the University and the state colleges. Other
millions for various state institutions have also been recommended. ; ‘
Only one thing is certain about
this budget session. That is, we
may have trouble deciding what
to do with the indicated surplus
of $70 million. expected at the
close of this year.
Mw/Gillette
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