Weather
8 Sections
' Fair today and Monday
except partly cloudy north
west portion Monday. Max.
temp. Saturday 13, rain. 44.
Southwest wind. No rain.
River , -2.4 feet. Partly
cloudy. -
20 Pages
irCHTY-FCST TEAB
Salem, Dragon. Sundar Morning, September 21. 1941
Prlc Scj HsTSTntands- 5e
No. 133
! &A
"- ?
Tax Bill
Becomes
:US Law
' . ;
- President Signs
Measure at Home
In Hyde Park
raggle
A
MI
Getrriaj$l now 'BeybnfcKhw
USFood
Kiev Street Before Capture
Nazi Loss
sFor
-
Terrible -
Top
- WASHINGTON, Sept. 20.-
;(ff-With President Roosevelt's
signature, the $3,553,400,000
revenue bill became law Satur
day and the federal tax load
'mounted to record - breaking
proportions.
The chief executive signed
the legislation at his Hyde Park,
NY, home, where he had taken
It for a study of its provisions.
'Both senate and house ap
proved It earlier this week and
sent it to the White House.
Existing taxes and the new lev
ies are expected to bring in be
tween $13,000,000,000 and $15,000,
000,000 next year, but even this
amount will fall far short of meet
ing Secretary of the Treasury
' Mor genthau's recommendation
. nanced two-thirds from taxes and
one-third from borrowing.
- Congressional tax authorities,
saying that additional revenue leg
islation was in prospect, forecast
that the present tax structure, plus
, the new act, would raise only
about half of next year's expen
'ditures which are expected to run
' around $32,000,000,000.
The new law, which started
Its coarse through congress five
months ago, will bring an estl
; mated 4,930,000 additional per
sons under the income tax struc
f tore by lowering present In
. come exemptions from $2000 to
-.$1500 for married persons and
from $800 to $750 for single per
sons. This provision is esti
mated to raise S303.000.000j of
, which $49,000,000 will be paid
by ' new taxpayers. The re
. I mainder wfil eome from indi
vidual already paying income
In addition to the income tax.
citizens will feet the pinch of the
new get in numerous other ways
Starting next , February, for in-
lnstance, an estimated 32,000,000
: motorists will pay a $5 annual use
tax on their vehicles. Starting Oc
tober 1, local telephone bills will
be taxed 8 per cent and a score
ef so-called "nuisance" taxes will
go Into effect
The latter include 10 per cent
levies on everything from re
frigerators to luggage; from jewel
ry to business- machines, from
optical equipment to sporting
. goods.
RAF Pounds
Axis Held
West Coast
LONDON, Sept. 20.-P)-The
RAF in one of the biggest offen
gives in weeks, begun by the light
of the Auora Borealis and con
tinued throughout the daylight
hours, pounded bitterly defendetfi
objectives from Norway to France
Saturday. I
- There was f 1 e r e fighting
ever the English channel in
which the British declared they
shot down 15 German planes
and lost ten of their own, in
cluding seven fighters and three
bombers. The German . high
command, in a special an
nouncement heard here by ra
, dio, asserted that a total of 33
British planes were shot down,
all but three in air combat. The
- Germans said they lost only
two.
Warspite Commander Tells
Of Mediteiraueaii Fights
f BREMERTON, Wash Sept. 20.-(53-A dramatic 'account
- the British battleship Warspite's part in the present war was un
folded Saturday by Capt Douglas Blake Fisher, her commander,
' after the veil of secrecy had been lifted from the mighty ship now
undergoing repairs at the Puget
$ound navy yard. The vessel has
been In drydock since August 11.
' It was not the battle of Crete,
in which the ship was disabled
after enduring a practically In
cessant rain of bombs for four
days and nights, that produced
tot most interesting part of Cap
tain Fisher's narrative to news
papermen. .', i : ;" , " '
It was the battle of Cape Mata
pan on last March 28 in which
Vie Warspite disabled two Italian
Cruisers and annihilated a de
stroyer in the brief span of four
minutes. 1
"Our light forces had been.
engaged daring the day with an
i jemy force that included at
ast one battleship," he said.
' Our forces had caused dam
' tzt to the battleship and at
lllppiip
:7-4 taganrogV"
Berlin claimed that German forces
Kiev. The nasi high command
125 miles east of Kiev, trappinc
center at Kharkov and at cutting
Troops Parade
At Fort Lewis
Governors of Two States
And "Home Folks" See
Division in Review
FORT LEWIS, Wash., Sept 20
-Jf)-The fighting men of five
states passed in review .Saturday
when the t 41st division, former
national guard force, paraded be
fore thousands of "home folks"
for the first time since it was in
ducted into federal service almost
i year ago. I
The governors of Washington
and Oregon, Arthur B. Lanflie
and Charles A. Sprague respect
ively, were in the reviewing
stand with Maj. Gen. Kenyon
A. Joyce, commander of the
Ninth army corps.
The 18,000 troops were com
manded by Maj. Gen. George A.
White, division commander.
Automobiles from Washington,
Oregon, Montana, Idaho and Utah
lined the parade ground.
The review demonstrated the
transformation of the citlxen
soldiers Into a compact unit
ready for Instant action. The di
vision showed it was a cool, ef
ficient, business-like group,
equipped with some of the latest
fighting machines in the United
States army.
Portland's 218th field artillery
drew particular comment as it
passed, the reviewing stand with
its newest 155-MM howitzers, big
guns capable of firing explosive,
chemical or shrapnel shells and
considered among the most de
structive field weapons yet con
ceived.
The 146th field artillery of
Seattle and the 148th field ar
tillery from Idaho still had their
75's but spectators were In
formed both regiments would
(Turn to Page 2, CoL 8)
Unions Protest Sailing
NEW YORK, Sept 20.-P)-The
freighter 'Alcoa Banner of the Al
coa Steamship company, with i
crew recruited from the US mari
time commission, sailed Saturday
for the West Indies with supplies
for United States bases shortly
after two seamen's unions pro
tested to President Roosevelt
against the commission's action.
least one cruiser with gunfire
and torpedo aircraft attacks.
- The Italians, as usual, were
running for home and our battle
fleet was panting after them. We
were miles behind at - first of
course, clear out of sight
Then about 10:30 at night, we
came across three Italian cruisers
and at least one destroyer. '
One of the destroyers illumi
nated one of the cruisers with her
own searchlights. We turned
slightly away to get all our" guns
to bear and fired a broadside of
eight 15-inch guns.
i The first broadside hit her
right along I mean every shot
went through her and the re
sult was really astonishing. Her
(Turn to Page 7, Col. 5)
entered Kiev and reported the capture of Poltava, 200 miles east of
asserted that two German army groups, In sweeping movements, met
four Russian armies. Other Ukraine
off the Crimea.
Booers Okeh
At Meetings
Says Mayor
SEATTLE, Sept. 2.-(P-
Mayor Earl Millikin made it
known Saturday booers at next
Tuesday's America First mass
meeting will, have the same
privilege as those who may wish
to cheer.
He made this announcement
in commenting en a letter from
State Treasurer Otto Case,.:
chairman of the committee for
Washington, who appealed to
the mayor "t take such steps
as you deem poper to, assure -8enator
Wheeler and all eitl
sens who desire to attend this
public meeting freedom from
any rowdhlsm or any interfer
ence whatsoever."
Millikin said "There will be
police to prevent bloodshed or
disorderly conduct but If one
man wants to cheer and an
other to boo I am not going to
try to suppress either.
The same freedom of speech
that permits Senator Wheeler to
express his Ideas here will be
allowed to those who may wish
to express their disapproval of
his views."
Trio Injured
In Highway
Auto Crash
A Portland factory employe was
in critical condition early this
morning and two Willamette unl
versity students were 'suffering
from what were believed to be
only minor injuries as result of a
head-on collision shortly before
midnight The accident occurred
on the Salem-Dallas highway near
the Bonneville power station.
Harry Leroy Llnck, 42, Port
land, employed by the Doern
becher Manufacturing company,
was known to have sustained a
broken leg and facial abrasions.
Although diagnosis had not been
completed, internal Injuries
were suspected.
Linck had evidently fallen
asleep at the" wheel and swerved
his car into the pathway of an
other automobile driven by Don
Brook, 21, as the Brook car headed-toward
Salem, early arrivals at
the scene said. linck's sedan was
almost demolished; front and left
side of the Brook car were flat
tened.; C-'yy -
Ktding with Brook was Walt
er Donald of 990 North 17th
street, whose face was severely
cut Brook, a Willamette sopho
(Turn to Page 2, CoL 8)
AlLuquerque Gas Cut
Of f by Cloudburst
ALBUQUERQUE, NMV Sept 20
-JPjrK mountain cloudburst left
Albuquerque without natural gas
late' Saturday, and utilities offic
ials said it would be at least two
days before service could be re
stored.. .. -
- J. It Cole, president of the New
Mexico Gas company, placed the
break ; at seven miles north of
Albuquerque. K- 15-foot wall o;
water raged down an Arroyo
from mountains in a volcanic
area, he said,' and ripped out the
line. .
drives were aimed at the rail
Nazis Shoot
Dozen More
Mass Executions, in
Paris Reprisal for
Death of Soldier
PARIS, German - O c,c u p i e d
France, Sept 20.-(3)-A dozen
Frenchmen went before a Ger
man firing squad Saturday in a
12-lives-for-ono reprisal.
This mass execution of hostages
was a ratio increase in punish
ment of the Paris population for
acts against the occupying force
and was the occasion for warn
ing that the" reprisals would be
further stepped up in the event of
more attacks against German
soldiers.
The 12 died in retaliation for
an attack in which one German
non-commissioned officer was
killed early last Tuesday. It was
the largest number of hostages
yet shot and raised the total to
25.
The ratio which previously had
stood for reprisals was three hos
tages executed for each German
attacked. None of the other Ger
mans was killed, however.
In Vichy it was announced that
French authorities working to
down opposition had condemned
three communists to die. One of
them was Adolphe Guyot com
munist leader of the Paris district
A Free French radio broadcast
from London stated that "for
each Frenchman shot in reprisal
by the German army of occupa
tion, two German heads will roll
on the day of final reckoning."
The executions were an
nounced by the German mili
(Turn to Page 2, CoL 4)
Engineers Swinging Along
Loaded down with full packs' and rifles, four engineers swung across
a ditch on horizontal ladders one of the IS obstacles rn the rew
: cross country course opened up
. engineer training center to toughen up assault troops.
10 Years
. Statistics Show
L living Costs up
7J Per Cent
. WASHINGTON, Sept 20.
(flVFood prices and the cost of
living have reached their high
est point in 10 years under the
impact of the armament effort,
but an accompanying rise In
weekly earnings of factory
workers, government econom
ists say, has more than kept
pace with climbing prices.
Records of the bureau of la
bor statistics show that the cost
of living has gone up IVx per cent
since the start of the war in Eu
rope. But in the same period aver
age Weekly earnings .in manufac
turing industries have increased
32 per . cent
This is contrary to the. expert'
ence of the first two years after
World War I broke out in Europe.
In 1914-16, living costs jumped
14 per cent Figures are not avail
able on wage increases of that
period, but economists say that
earnings lagged behind increasing
costs.
Current higher earnings and
wage increases, of course, have
not reached all workers, and
there are many persons with
fixed incomes, receiving no
more now than , they did two
years ago.
But in the manufacturing in
dustries, especially in the durable
goods establishments where so
much of defense production is
concentrated, workers - have re
ceived ? substantial margin of
oal wages' above and . beyond
th rise in living costs, economists
say. . -
The rise in the cost of living Is
largely the story of the rise in
retail food prices.
The labor department's study
shows food prices have gone up
(Turn to Page 2, CoL 5)
Portland Gets
US Navy Job
PORTLAND, Sept 20-y-Nav
al contracts for 13 additional ves
sels, costing nearly $12,000,000,
have been awarded Portland
firms, shipyard officials said to
night
The Albina Engine end Machine
Works, which had contracts for
four sub-chasers, will construct
five more at $640,000 each.
The Commercial Iron 'Works,
will build four sub-chasers of the
same, type and four fleet tugs at
$1,500,000 each.
Naval officers : here confirmed
notice of the awards.
by, the army at its Fort Ldvtlr, Ya
This is Yorovsky street In Kiev, capital of the Russian Ukraine, which
tne German nigh command said
Willamette Launches
- V
100th Year
New President Expected October 15;
Freshmen Week Starts Monday With
Classes Opening on Thursday
Eagerly looking forward to
university students andriaculty.
yeesh5jii;,week starts Monday 'and classes lursday: .
Tit', Carl Sumner Knopf; successor to Bishop Bruce R. Bax
ter as president, may arrive before October. 1, Paul B. Wallace,
chairman of the board of trustees, indicated Saturday.
Numerous returning students-
were seen on the campus during
the past few days, and the major
ity of the freshmen are expected
to arrive today.; Lausanne hall,
women's dormitory, opens for res
idence today, reserved to capa
city, according to Miss Lorenai
Jack, director.
Freshmen are to enroll Mon
day morning with the registrar,
Walter Ericsson, who said the
class appears to be equal to last ' j
year's entering group of 242. He
declared, however, he could
make no prediction of how
many would return to be in the
other classes, because of de
fense activities.
Other Monday; events are as
sembly with Dr.jR. Franklin
Thompson, dean ; of freshmen, at
10:30; introduction to campus at
11:15; : English placement test at
1:30; assembly in charge of Dean
Chester F. Luther at 3:45; faculty
reception for freshmen at 7:45. '
Calendar., for the remainder of
the Week includes:
.Tuesday Physical examina
tions, freshman registration, the
first meeting of the class, to
elect temporary ! leaders. v
WednesdayPhysical exam
inations, assemblies, aptitude
test, freshman parties.
Thursday YM-YW formal
reception in L the gymnasium, ,
classes begin, j
Friday Willamette College
of Idaho football gamefollowed
by studenfbody dance.
All other students register Wed
nesday, a procedure moved this
" (Turn to Pago x, Cot 8)
Salem Nurse
Is Killed in
tnby Crash
PORTLAND, Ore, Sept SMS3
-A head-on collision' on the Pa
cific highway north of Canby
killed Mrs: IsabeH Fendall of 1970
Broadway, Salem, Saturday.
' Her daughter, Mrs. Walter Fan
drich, Grand Ronde, Ore, former
ly of Salem, driver of one of the
automobiles, and Marcel Du Poy,
Portland, driver' of the other ma
chine, were hospitalized in Ore
gon City with minor Injuries. -
. Mrs. IsabeH FendalL Salem
nurse, killed Saturday in an auto
mobile collision' north of Canby,
had made her home at 1870 Broad
way for the past two years. She
was t forme resident of Mc-
UinnviH. Mrs. Fandrich who was
injured Is well known among Wil
lamette students Her . husband is
$ lor ".'?-$ foreian cr-ployed in
the Grand Ronde district.
had been captured.
of School
the new president, Willamette
today launch the, whool'a 100th
Canada Okehs
US Soldiers
In Uniform
WASHINGTON, Sept 20-ff)-Unarmed
soldiers of the United
States may now .wear their uni
forms while, visiting Cajjada, the
war department reported Satur
day, and Canadian soldiers, if un
armed, may wear their uniforms
while in the United States.
The agreement reached with the
Canadian government in" no way
modifies immigration regulations
which forbid the actual movement
of troops fro mone country through
the territory of another, the de
partment said. Visiting soldiers
must carry valid military papers
such as a leave of absence, sol
dier's pass or official orders.
Normally only military attaches
and members of military missions
of the United States are permitted
to appear In uniform in other
countries, and others must obtain
permission from the US military
attache In the country visited. -
British Bomb Berlin
BERLIN, Sept 2L-(Sunday)
--Britkh air raiders dropped
incendiary bombs on Berlin
during the ; night but caused
n 1 y :iinimportant property
damage, an official announee-
t said today.
Allies Probe Japs in Iran;
Suspicion Aid to Germany
- TEHERAN, Iran, Sept. 19. ( Delayed ) -tfVThe Japanese
legation was under strict surveillance of the British and Rus
sians Friday, partly because the legation's diplomatic mail pouch
es and radio code messages have greatly Increased in recent days.
The allies suspected the Japan
ese of helping the nazi cause,', es
pecially since axis legations have
been forced to close.
Neither had the Japanese re
plied to a demand of the Iran
government for the surrender of
the - grand mufti of ' Jerusalem ,
' and a number of .nasi fugitives. "
The grand. mufti long has been'
a leader of Arab dissidents
: against the British in the middle
east. -': i ir-S vV- tf -:'
.Meanwhile the abdicated shah,
Reza Pahlavi, was confined to his
Quarteri at Isfahan, 200 miles
south of here, while the govern
ment began a grave inquiry Into
hiswealth. :-rff:ii
i T.e Erit-h legation said a re-
Publican f-cuon La t.;e Iran par
Say Reds
- i .
Bulgars Soon to,
Enter War With
Axis, Report
By The AMociated Preaa
The Russians reported a
savage fife and death
struggle" raging Sunday
about Kiev with a quarter
million fresh nazi t r o o p 6
thrown into the battle for the
Ukranian capital, already
claimed by Berlin to be tht
prize of Adolf Hitler's blitz
krieg forces;
The Moscow announcement
indicated the red army might
still be in possession of at
least a part of Kiev, where
the Russians said the Ger
mans have lost 10 divisions per
haps 150,000 men in unending
assaults upon the soviet defenders.
On the other hand, Berlin re
ported a perfect example of
blitzkrieg technique, implemented -by
every weapon in the nazi ar
senal, had delivered the old city
completely into German hands.
These claims and counter
claims came as the United States
and Britain hastened their pro
gram of aid for the sorely-beset
Soviets.
The Russians reported success
in a naval clash, the sinking of
a big German transport in the
far northern waters of the Barents
sea.
' Reports reached Xoadon that
a state of emergeneyitaa been f
dMlu4 ' In anlnri .nj Ik .
diplomatic correspondent of the
Sunday Dispatch reported that
King Boris had decided to take
the Balkan kingdom Into the
war on the side ef the axis.
The state of emergency ' was
linked with a Bulgarian charge
that a number of Russian para-
uiuuts uu waoa in .Bulgaria
and been arrested after fighting
with troops and police.
The exact situation at Kiev was
not altogether clear. Adolf Hit
ler's headquarters reported that
the Russian officers had fled from
the Kiev citadel and that the gar
rison capitulated, with German
troops pouring into the city hot
on the heels of the fugitives. This
implied without definitely stating
that the entire city had fallen. .
Unofficial German accounts
from the front however, said
all the city ef 850,000 popula
tion was taken by the combined
and . terrible force of flame- .
throwers, dive-bombers, tanks
and charging infantrymen who
hurled showers of grenades be
fore them.
It was a smoothly-working co
ordination, an essential item In
the broad plan for the conquest of
the remainder of the rich field
and factories of all the Ukraine,
these dispatches stated.
W. Averell Barriman, chief of
the American mission to Russia,
said in London .that his mission
and the British already had agreed .
on immediate material aid to Rus
sia i to be limited only by the
transportation problem. He pre
pared to hasten on to Moscow tp
Join the head of the British mis-
hod, juoru ceaverorooK.
The British people have a
much better realization of the
i (Turn to Page 2, CoL 1)
liament had demanded a trial of
the ex-shah. ;
t Foreign reports state that the
. shah has United States bank ac
counts of $20,000,00 and Lou
don balances of even more. Be
: long has been reported one of
the wealthiest mea In the mid
dle east, partly as a result of his
vast property holdings and
monopolies. ; ;;-::y
It was reported here that if the
ex-shah does not return to.Teher
an for an olllcial inquiry, he may
be sent to India by. the British.
! 1 ni;TCPl fit '-! , nsrtr ' V V?
son, already have nationalized his
father's' property. i
; Five hundred political prisoners
have ben Hhergtci tjr'.tiie nSr
shah, lioharmed r&l-vl. :. -