In Refraining from Exten'ding'a "Protection" Offer to India, H err Hitler Probably Realizes That He Couldn't Induce Gandhi to Wear , 'a Nazi (Brown) Shirf.
THE WEATHER
iTumttllly 4:30, p. m. yesterday 32
Highest temperature yesterday 84
Jxiwest temperature last night fi7
Precipitation lust 24 hours 0
Preelp. since first of mouth 0
IJjecip. since Sept. 1, 19:(! 32.05
Jeflcieney since Sept. 1, 1939 rA
Partly Cloudy.
: THIRD TERM
It's stilt the major political que,
tlon as democrats prepare for their
national convention, opening at
ChiaiKO next Mouduy. Majority ot
pledged delegates nre for Kooae
volt. Will lie accept a third-term!
nomination? Watch the NEWS.
ItKVlUW for the reply.
fHE DOUGLAS COUNTY DAILY
VOL. XLV NO. 81 OF ROSEBURG REVIEW r-33
I :T
2 33
ROSEBURG, OREGON. THURSDAY, JULY 1 1, 1940.
VOU XXVIII NO. 289 OF THE EVENING NEWS
2.
IMl
v com
mr.-w m m a mm m m m w m
mm wmm
Germans
In New
Towns
"Few Deaths"
Announced By
London Govt;
British Warplanes, Hitting at
Italy Again, Claim Sinking
of Destroyer, Supply Ship
in Sicilian Harbor.
LONDON, July 11. (AP)
Twelve enemy planes were shot
down and many more damaged by
Uritish warplunes during heavy at
tacks today around the const of
Kn gland, the air ministry an
nounced. "Attempts by strong forces of
enemy bombers escorted by fight
ers to attack shipping and other
objectives around our const met
with vigorous resistance." the min
istry added.
One Uritish fighter plane was
acknowledged lo have been lost.
The German bombers had struck
at Knghuul from const to coast
and were declared also to have
turned machine guns on civilians in
the streets of some towns.
"A few" deaths were, reported by
the government.
At the same time, nit air ministry
bulletin said medium-sized Uritish
bombers had "dived through a
storm of sleet and ruin" on the
Herman-occupied Boulogne air
drome at dawn todny and it was
believed that live German aircraft
had been destroyed,
'Uritish warplanes, striking again
nt Italy, were reported by the ad
miralty to huve sunk an Italian de
stroyer ami a depot or store ship
in a Sicilian harbor.
N In n southeastern town a German
raider killed two persons, but Urit
ish fighter planes chnsed the plane
out to sea and were believed to
have shot it down.
"No Military Damage"
The Itritish ministry of home se
curity issued a communique say
ing:" "During the night bombs were
dropped in a number of scattered
points in the eastern and south
eastern counties and in the mid-
(Continued on page 6)
Ry Kit A NIC JKNKIXS
RyiKXH'O held an election on
Sunday. Itcporls of resulting
dentlis, mostly violent, place the
lotnl at 4 1. (News-gathering fa
cilities are Tar less adequate than
in the V. so guesswork enters
largely into the reports.) The in
jured may run into the thousands.
Mexican elections appear to he
almost as dangerous as American
holidays.
HPHE Mexican electoral system
provides that the first citizens
to arrive at the polling place may
ORGANIZE THE E I- C T I O N
HOARD.
If we had a system like that,
we'd have a lot of blood nnd thun
der on election day.
IMAGINE what Tammany, or the
smelly machines that run poli
tics in Chicago and Kansas City,
could do with a system that en
ables the first "voters" it the
polling place to "organize" the
election board.
AT Coyoacan, 100 Camachlstas
(Camaoho Is the administra
tion candidate) nrrive first and or
ganize the board to suit them
selves, then proceed to deny en
try to a large group of voters who
v': In The
' " '. ,
W t ' ' , '
v, News -;
(Continued oa pace 41
Lose 12
Raid on
Machine-Gunned
Hungary Joins
Axis to Prevent
a nil
war in Balkans
HKRUN, July 1. (AP) Hun
gary. ns a friend of both Germany
aii'l Italy, definitely has joined
the common trout against Kng
land in southeastern Europe, au
thorized German sources declared
loi'i y.
The three states will resist any
attempts to carry the war to the
lialKans, it was asserted.
The German sources said that
Hungarian leaders gave nsflur
auees in their Munich conference
v.iin the Germans and Italians
that they would wait patiently
for revision of Rnlkan territories
until scores first had been settled
with England.
The- German reaction came
the Hungarian conferees returned
to Budapest, where they faced
the job of preparing the Hungar
ian public to renounce their hopes
for immediate return of 'irnnsyi
vanin, lost to Rumania through
post-world war settlements.
Anti-5th Column
Unit to Form Here
Orgnnlzntlon of n local branch of
The Americans", Inc., is to be un
dertakriirTit n- meeting to bo held
Friday" July 12. nt 7:30 P. ni. at
the Jtoseburg armory, it was nn
nounced todny. All churches,
lodges, civic and patriotic organiza-
lions. It wns stated by Attorney
Thomas Ilartflel, have been invit
ed lo send two representatives to
the meeting, which will be con
ducted by It. 1. Preston as acting
chairman.
The Americans, Inc.. Is being
formed, it is stated, to combat fifth
column activities, In cooperation
with the federal bureau of invest!
gation. Recently organized in Port
land on a statewide basis, the cen
tral committee is headed by At
torney Louis Starr of Portland.
Niel Allen, department commander
of the American Legion; Mayor Jo
seph Carson, Portland, nnd Rev.
Mr. Emerson, president of Linfield
college, were keynoters at the
meeting held in Portland, Attorney
Ilartflel said.
The state committee is endeav
oring to create local committees
In each community of the state,
with representatives of fraternal,
civic, patriotic nnd religious orders
participating.
Waters Claim Lives of
Man and Two Youths
: SANDY, Ore., July 11. (AP)
A misstep into a deep hole in the
Sandy river three miles east of
here last night resulted in the
drowning of Russell Fritchie, 2il,
of Dover. Ore.
His brother. Verdon Fritchie. 22,
ran three miles for help after Rus
sell was swept into the current.
Verdon said Russell could not
swim.
NEAIIKATINIE. July 11. (AP)
-Arthur Churchill. Jr., 1(1. of
Portland, drowned in the Pacific
ocean yesterday while surf bath
ing. His brother. Jack, 12, brav
ed a strong undertow in a futile
attempt.
VANCOUVER, Wash.. July 11.
(API Submerged for only three
minutes while wading In Salmon
creek near here yesterday, Allan
Woodruff, 6. drowned before bis
fa her. Virgil Woodruff, could
plunge into the stream.
Argentine Bars Entry
Of Jewish Refugees
TU'ENOS AIRES. July 11.
(AP) The government ordered
ltio members of the Argentine na
tional gendarmerie to the Boli
vian border today to bar Illegal
entry of German Jewish refugees
who found a haven in Bolivia
when they were barred from other
South American countries.
The order followed receipt of
information, from the governor of
Salta province that a large num
ber of Jews, many of whom were
nlaced In farm colonies hy the
Rolivian government, were prepar
ing to "Infiltrate" into Argen
tina. The government said several al
ready had crossed the frontier,
but had been arrested Immediate
ly by AiKeotine authorities.
Planes
Britain;
Battle Near
Italy Brings
No Decision
Rome Acknowledges Damage to
Large Portion of Her Air
Fleet but Claims Costly
Blows to British Ships.
By the Associated Press
New light on the controversial
question of "Imttleshlp vs. plune"
in actmil combat was cast today
with the disclosure Hy General
Francisco Pl'icolo, Italian atr
chlef, that 3(10 Italian planes en
gaged In th battle of Uritish and
Italian war fleets in the .Mediter
ranean. nisiiiilches from Rome acknowl
edged that a large part of the
Italian aerial nttuck force return
ed with damage und with wound
ed crewmen hit by terrific drum
fire from surface ships. Three
Italian planes were lost.
Hy contrast. Sir Andrew Cun
ningham, commander-in-chief ot
the Uritish Mediterranean lieei,
reported that his ships, Buffered
not a single casualily.
The Italian high command, In n
belated communique, insisted how
ever that Italian bombing planes
set fire to the 42,100-ton nritisn
battle cruiser I loud, world's larg
est warship, scored two bomb
hits on the deck of the 22.000-ton
aircraft carrier Ark Royal, and
two on "another Kngllsh battle
ship."
The Uritish admiralty Issued a
formal denial.
A report has been received
from the flag officer commanding
Ihe nrillsh forces mat, an noiigii
several bombs fell close lo his
ships, no direct bits were secur
ed and there was no damage or
lasualties," the admiralty state
ment said.
The 30(1 Italian planes used in
(Continued on page 6)
Roosevelt Averts
Threatened Strike
WASHINGTON, July 11. (AP)
President Roosevelt, using "last
resort" nrocediire. has deferred
the threatened strike of 30,000 em
ployes of the Hallway r-xpress
Agency, Inc.
The chief executive intervened
after a Friday deadline was sec
for the walkout of the agency's un
ion clerks and terminal workers.
Dispute over working hours was
(he main issue.
In halting the threatened strike
and ordering creation of a fact find
ing commission, Mr. Roosevelt in
voked the emergency measures au
thorized by the railway labor act.
George M. Harrison, president
of the AFL brotherhood of railway
clerks, who previously announced
(he strike, snld the agency refus
ed to grant the union clerks the
44-hour week It hail given some
other employes. The clerks now
work 48 hours.
A. M. Hurtling, railway express
vice president, said it would cost
$5,000,000 to meet the union de
mand on this point, and twice that
much on others.
Cooler Weather, Rains
Ease Oregon Woods Fires
PORTLAND, July 11. API-
Cooler weather and coastal rains
eased Oregon's tense forest fire
situation toduy.
With all major blazes under con
trol, the weather change lessened
danger of new outbreaks and per
mitted resumption of logging on
normal -schedules. Only Clackamas,
Marion nnd Linn counties continu
ed to confine operations to "hoot
owl" shifts starting in the early
morning and Bhuttlng down after
eight hours.
Small crews continued to patrol
the fire lines on the Dee blaze in
the Mount Hood national forest
and the Wpst Timber nnd Sunset
conflagrations In the coast rnnge.
Two hundred fire fighters trallfd
the Potamus creek fire In the Cma-
tilla national foreM and the P.low-
out creek fire In Linn county was
reported well subdued.
Holding Ponds
Job To Start
OnCalapooia
Salmon Output of Rock Creek
Hatchery Will be Heavily
Increased; Take of Chinook
Eggs Will Set New High.
Work Is to he started this week
on salmon holding ponds In the
Calapooia, according to I.ee Me
C'arn, superintendent of the Roclt
creek salmon hatchery. Plans of
the state fish commission to in
crease the Itock creek lmtchei-y's
capacity hy providing holding
nouns' have1 been delayed because
flf 'dlfplleulUes In 'regard to secur
Jne hltle to needed adjoining land,
(Vr.(,Mc.rarn slated. Legal matters
llnvo been settled to the approval
f. the. attorney general und the
'iskwwmmlsBWaliaglTOnMnstracv
ions to proceed witn construction
ivork. the hatchery superintendent.
'vhifVifcl Svltl'We1 Lntow&
mediately upstream fro the Pali
inlv bridge nhntit Rlxiiuilcsest
or Kuthorlln. rapacity wlir be
provided to hold about three mil
led salmon fry this fall nnd It Is
hoped hy next year to Increase
the ponds to n capacity of seven
million.
The eggs will btr hatched at the
Rock creek hatchery, and the fry
then , will be transported to the
holding ponds to lie retained there
until .of sufflclent...sjz.Q to be . re
leased. . ...
Chinook Take to- Be Big
The chinook salmon egg take
this fall, Mr. McGarp stales, Is ex
pected to he the largest ' in the
hatchery's history. Ho anticipates
that there will he about 13 mil
lion eggs, as compared with nine
million hist year, which, In Itself,
set a new record.
At tho Rock creek hatchery the
(Continued on page (i)
Lorienne Conlee Named
State Medical Board Aide
PORTLAND, July . (API
Reorganization of the state board
of medical examiners lo eliminate
"internal friction" was announced
here yesterday hy Governor
Spra-
sue
In. Joseph F. Wood, secretury
ami hoard member tor zu yenrs,
submitted his reslgnnllon, the
governor said. He will be re
placed by Miss Lorienne M. Con-
j lee, Portland atlorney, ns execu
tive secretary and legal adviser,
Minn "unlet fs well known 1n
it.iM bmg. heiH part of her girl-n-
.id U8 -Hpbiit. Her rather, V.
Jv. Lunlee was (t Southern Pad-
Knomotivo engineer.
AL GREER as he pointed out to
me the oscillating device routing
the sprinklers on the irrigation
system nt the K. R Stewart farm
at Melrose. Twenty-four acres of
alfalfa are under Irrigation there,
and the water wns turned on Im
mediately after the second crop
was harvested as It was after
thf first.
The water, taken from the ITnip
nua river by means of a tractor
driven mimp. Is conveyed through
an underground mainline which
bisects the farm In which stand
pipes are set at sixty-foot Inter
vals. A thousand feet of smaller
sectional pinlne, with sprinklers
j inserted each forty feet, Is used
lor lateral tines. i nese lines are
moved by hand feach twenty-foot
section weighs fifty pounds) ns
needed.
"We try to put the equivalent
of two nnd one-half inches of wa
ter on the soil," Al Informed me.
"We have found that this moist
ens the ground here to an aver
aee denth of eighteen Inches. One
Irrigation is nil we needed
,r(n- lhf ..(.ond crnn. nnd one I
U we anticipate the third will
'need,"
lie
ly Port tmkim
I ' - 'yrm . - ; w ' .; ;
B Trim, tamrfff
Fatal Fight
AtSutherlin
Being Probed
Robert Keith, Sawmill Man,
Dies After Reported Blow
' by Robert Hatfield During
; Quarrel Over Operations.
State and county rtuihnrltlea to
day were conducting an InveHtiga-
tlon into tho denth of Hubert
Keith, aged about 50 yoarfl, nt hla
home near Sutherlin last night,
following a fistic encounter. Keith
'reportedly wan atruck 'by Tiohert
lllxtneid, a truck driver, and
jlaiockodi to Ihn pavement, uppar.-
.wny.i si.riKiuff.. my .jiiOHii oi'iMiU'
',c.urbipf J ho fidowlKi Vk'pnly Rher-
'iff mm 'rlWntnn Vuirt oV tlm In.
fvWitfat tag' 1 o? f utonn rfcpbrt bll.i ! i t
The' fight,-Thoniton said,-nnpiW-
i-allUy.cOticuH'ttd rwhmv Koitbt-uud - ii
group of .tho employes from thp
h bin 1.1 sawmill, which he operati
IfUiout ix..milea east of RutherliiJ,
Vngftgtp ',th an j,t;gmnent ;qver. ml
tiieratJorfn. THft bniwCthe "of fid
in an jirgmnent ;qver. mill
Vb fttiidai occurred outride, the.. A.
1 MX: I mw.l Iw.ll l Cut li..1-1ht
"All Had Been Drinking"
"According to our information,"
Thornton said, "the man had all
been drinking, Keith engaged in
an argmuerit with Phillip Spriggs,
one of his employee, and tho two
were wrestling. Keith then wns
reported to have announced to the
men that he wns discharging the
whole crew and called ilie men
vile names. Tlaifleld was report
ed to have intervened, striking the
mill operator and knocking him lo
the pavement."
Keith's death occurred about
five hours after the encounter.
Thorn torn reported that, no nv
vests would he inndn until after
a post mortem examination to de
termine the nctunl cause of death.
Following (he fight, Thornton re
ported, Keith was immediately rn-
(Continued on page ()
Settlement of Cooperage
Plant Strike Impends
POrm.AN'D, Ore., July 11
CAP) Union und plant represen
tatives reached an agreement
yesterday to end striken in West-
ern Cooperage company units at
I Portland and Seattle.
Union members will vote on
the terms Friday, Harry Peterson,
chalrmnn of the union negotiators,
said. lie predicted acceptance
would result iu reopening of the
Portland plant Monday and the
-niHlier Scuttle unit Inter.
U oi lers would bu gianled fiu
ciii luMti l rtg ttici i um:s, time
ma it iioit tot Sutiiiday Wfi K, it
rtt-fK s iaiu viu.ittK'h iiiiu a coii-
.l.lt.L e.Miillll,, .bit I t il i III liitt til
Jaiiuuij i ,
News-Review Photo and Kngrnvlnjf
The alfalfa acreage on the Stew
art farm Is equally divided Into
two plantings, one of Grimm, the
other of Chilean alfalfa. I'ud
year ninety tons of hay were har
vested In the four crops secured.
Prospects for this season are for
a much heavier yield.
The hay Is of fine quality, with
scarcely a weed or any grass hi
it. That Is one of the virtues of
an Irrigation system frit hers are
obvious) the alfalfa Is kept coin
ing and gives the grass anil weeds
little chance to establish (heir
Miowth.
Ten acres of the thirty-six at
the farm are Seeded to ladlno chiv
r, divided hy electric fencing In
to five equal sized plats for pas
ture for the sixteen dairy cows
kept there, and for pigs, the lat
ter numbering at present seventy-
five head. The rows are all high
grade animals; the hogs are re.
iaterPd Berkshire, Mam pt hires
nd Chester Whites,- mostly the
latter.
The alfalfa for Itome Useus
ually the irst crop Is stacked
nd later chopped into large bins
In the ham. All the rest Ik hal
ed from the Held and bmUI,
G. O. P. Leaders
i - 1 ' 1
p o o V MIO
Against a background of the Stars and Stripes, Wendell Willkle,
left, and Senator Charles L. McNary of Oregon standard bearers for
the republican party In the president race clasp hands In their first
meeting In a Washington, D. C, hotel. (NEA Telephoto.)
Anti-Politics Bill
Passed By House
Workers Paid in Part by U. S.
Funds Affected; Campaign
Contributions Limited.
WASHINGTON. July 11. fAP)
Overwhelming house passage of
the Hutch null pollticK bill assur
ed today its early final enactment.
(for the senate had only lo agree
to minor amendments helnrn send
ing Ihn legislation to President.
Itoosevell.
P-olh the chief executive, 'and
Wendell Willkle, republican presi
dential nominee, have endorsed
the measure. It bars political ac
tivity hy state, counly nnd muni
cipal workers paid in part with
federal funds, llmils campaign
contributions to $r.0iu n person,
and places a $.'l,0Ml.ouo top on the
expenditures of political commit
tees. Willi tho potent hacking of the
two parly heads, the bill went
through (he house In less than two
lays, allhought In tho spring it
hail been a mulor controversy.
The final house vote last night
was 24.'t to 122, with Sf) demo
crat, 1Ti2 republicans nnd 2 pro
gressives favoring enactment. Op
posed with 120 democrats, Pep.
Kali fit., Conn.L and Hep. Mur
canlonlo (A. L N. V.)
Application Widened
The legislation supplements the
Hatch law, enacted last year, for
bidding political acllvity hy most:
federal employes. This year's bill
rovers many slate highway de
partment workers, agricultural
agents and the like. All workers
affected by the two measures may
continue lo vole hut can not par
ticipate in political campaigns or
iiiiinagement.
The house refused to add lo the
hill a provision to prevent officers
or employs of public utility com
panies from participating In politi
cal campaigns.
Hep. Haiikin tW, Miss.), fl Toe
of Wendell Wfllkln, the republican
presidential nominee, and of pri
vate pi) wee Interests, made the
proposal. Willkle, former presi
dent or Commonwealth and Soul ti
er u corporal ion, utilities holding
company, was not men Honed in
discussion of the amendment.,
Tlie house also refused to strike
from the bill its main provision,
which forbids slate and local em
ploye paid iu whole or part with
federal funds to participate in po
litical mangernent or campaigns.
Apartment Fire Laid
To Discarded Cigaret
PORTLAND. July 11. (AP)
Fire springing from a discarded
cigarette swept, a two-story apart
ment In the St. Johns district last
night and seriously burned Charles
Kern, f.'t, n carpenter who lived
on tlm top floor.
William Goerz, fire. Investigator,
said the blaze endangered the
lives of Hi other residents. He en
juated damage at $:'5oo.
Meet First Time
"Pioneers" Quit'
Grants Pass Area
Federal Farm Specialists Find
No Trace of Advance Group
After Its Night Exodus.
CHANTS PASS, Ore., July 11.
(AP) Tho "Pioneer Club" outpost
north of Grunts Pass disappeared
during tho night without leaving
notice or nolo of whom tho dozen
or so Long lleueh, Calif., families
were going or why they loft,
Leluiid N. Fryer of Portland,
farm management specialist for
tho farm security administration,
and Walter Mertz. relocallon su
pervisor, made the discovery Thurs
day morning.
They had como to Investigate
tho news reports of 12fi or inoro
families from Long Pencil who
illumed lo set up logging colonies
In southern Oregon despllo tho
opinion of county officials and
business leaders that they could
not ekn out even a living wago by
following plans announced, by
President II, J. Wilson.
Tho first of the families arrived
about June 2f, camping near but
not on land which they contracted
to buy. Tho first of tho "Pioneers"
were loath to talk. Soon they put
up a "no trespassing" warning.
Fryer said that yesterday ho
went to the camp to learn (ho sit
uation there, lie was met at Ihn
barbed wiro fence and told that
the camp spokesman, HI. C Par
sells, treasurer, was absent. Fryer
said he wo. ltd return later nnd meet
Parsells.
"When wo slopped thero nt 8
this morning," Fryer said, "Ihe
whole kit and habondlo wero gone,
slicker'n a whistle."
Neighbors (bought, Tin mild, tho
"Pioneers" might have gono hack
to Long Peach as tho tracks point
ed south. Hut others hern recalled
thai somo of tho first comers who
wero disappointed in the lack of
commercial timber on (heir land
had spoken of moving lo other
purls.
Willkie Nomination
Probe Proposal Fizzles
WASHINGTON", July 11. (AP)
Tho senate campaign expend !
lures commltteo decided today
that there was Insufficient evi
dence to Justify an Investigation
of reports that a "high pressure"
telegram drive was employed In
the successful campaign of Wendell
t, Willkle for the republican presi
dential nomination.
Chairman Gillette CD., Town) an
nounced Hint tho commltteo mem
bers had agreed unanimously that
Information laid before It In sev
eral "suggestions" for an Inquiry
into the Willkie pre-nomlnatlon
campnign lacked sufficient facts to
warrant commlllee action "at this
time."
Four Billion
Bill Goes To
White House
Siie of Present Fleet Will b
Doubled; Contracts for 109.
Million Dollars Worth of
Warplanes Announced.
WASHINGTON. July 11. (API
A Sl.ooo.ooo.uoi) naval ex-
traimlnii bill wns mint to tlio WHIM
Houao today by coiiRreaa.
It was a major portion of tho do
fniiHH tinnitmlKii. nml legislators on
cnpltol lilll wore innnll'oHtlnif a de-
Biro to approve jtoskiouc jioohh
volt's request for 4,848,171,9r7 la
ciibIi mid authorizations to start
this oxpiiiision and to increase
greatly llio army's land nnd air
forces.
Tho defense commission nn
noiuiceil nieunwhllo that It had-lnt
$100,0110,001) In contracts In rocent
days for now warplanos for tho
army nnd navy. Other contracts
uro being negotiated, It was said,
with a view to adding 25,000 planes
by .Inly, 1!M2,
Tho navy expansion measure,
sent to tho Whlto House for Presi
dent ItooHovolt's signature by;
tumultuous house agreement to
minor senate changes, would vlt
tually double tho size of the pros
out navy now built.
There havo been unofficial esti
mates that completion of the
$1,000,000,000 program, togotlier
with other naval construction al
ready authorized, would give the
United States a fleet ot 0IS watw
ships capable ot mooting slmitltan.
eons throats In tho Atlantla and
Puciric.
To Boot TVA Power.
To help speed production of do
fonHft m'ulerlnls, particularly alum
inum for airplanes, the honso ap
propriations aoiiunltteo proposed
an Immediate S25,000,00t appro
priation today for newt power do
velopinent In tho TenneuHeo iyalley
authority. - i ,' , i
The money would launch a JO.1),
800,000; three-year program design
ed to produce an additional 29ft,
000 kilowatts of power not nvatl
nhle from private Hources part of
which would he used by the Alum
inum company of America. '
iC'ongrnHsloiial sentiment for 'the
J-I.K-1s,17l,fri7 addition to the do
fenso program was coupled with
widespread applause for President
lioosevell's pledge that no Ameri
can troops would ho sent to fight
In Kuropo.
Ills latest extraordinary defense
messagollio third in Ions thani
two months went to capltol hill
yesterday wllhin n few hours of
two other major developments.
For Two-Ocean Navy.
The senate first voted CU-to-10 to"
conrirm Col. Frank Knox as secre
tary of tho navy nnd then wIlU'
(Continued on pnge 6)
Modified Tax To
Aid Defense Plans
WASHINGTON, July HfAPV
Aiming at greater Industrial
speed (n national rearmament, the
administration plans to seek modi
fication of lax and profit legisla
tion which now applies to firms
equipped to handle defense con
tracts, A unanimous decision to fncor
poralo the revisions In tho propos
ed excess profits bill wns reached
at n while house conference yes
terday, alter President Itoosevelt
had explored the problem with de
fense, fiscal and congressional
leaders.
Ueports have been current oft
rapitol hilt (hat a number oE
Inrge munufaclurers have heetl
hesitant nbout expanding their
plants or seeking defense con
tracts because of uncertainty over
tnv mutters anil the profit to bft
allowed,
Ilecommendnllons ngreed on nti
the white house conference ore)
designed In end those doubts. It
was announced, so that the manu
facturers "will he nblo quickly to
exeeiitn defense contracts."
Congress accordingly will hrt
.inked to permit manufacturers, in
computing their taxes, to mnkn
allowances over n five-year period,
for plant expansion or new equip
ment necessary to fill prepared
news orders.
Another request will he the sub
sMtution of a general excess pro
fits tax, applying to nil industries
alike, for the present profit limi
tation of from 7 to S per cent im
posed on warship builders and air
craft plants.
Details of this excess profltn
tax have not been worked nut, hnfi
the understanding was that t
would provide for the recapture of
abnormal Investment relurns nt(
deletis" contracts.