Service Men
Oar boys of Salem ud
vicinity are in uniform with
Uncle Sam ever the face of
the globe. Follow them daily
la The Statesman's 'Service
Hen' column.
Going Away?
Going away, ea a raca
Uon ar il war Job? BaT
The Statesman follow yon,
to keep you posted on create
at home. Call till for de
tails. FOUNDCC7, 1651
NINETY-SECOND YEAR
Satan, Oregon. Wednesday Monuncj. Juno 17, 1942
Price 5c
No. II
Thousands - See
Two U
Torpedoed
Navy Planes, Boats Search
For Submerged U-boat Off
Virginia; One Ship Sunk
NORFOLK, Va., June 16 (AP) An enemy submarine
torpedoed two large American merchant ships Monday with
in view of thousands of persons who stared seaward spell
bound as bombing planes, a navy blimp and a half dozen
naval surface ships roared over the area in search of the
daring- undersea raider, dropping bombs and depth charges
that sent huge geysers of water skyward.
The navy had no comment as to the fate of the sub
marine in announcing the twin attack Tuesday. Only one
man was killed in the torpedoings, which occurred about
Fear of Power
Bill Described
Tugman and Pierce
jHeard by Committee
On Measure
WASHINGTON, June 16-JP)
An Oregon newspaper editor told
a joint congressional committee
Tuesday people of his state were
"fearful" of legislation to create a
Columbia power authority to mar
ket energy from the big Bonne
ville and Grand Coulee federal
hydroelectric projects.
William M. Tugman of the Eu
gene Register-Guard asked the
committee to proceed cautiously
and slowly in considering the
Smith-Bone bills (SA2430 and
HR6890) which would set up the
authority to purchase private
utilities in the Pacific northwest
and resell them to municipalities
and public utility districts.
"There is a sincere and far
reaching difference of opinion
en these bills in the northwest,"
the editor told the committee.
"We want this committee to
consider all the complex factors
Involved."
He said Oregon elections to de
termine creation of public utility
districts had resulted negatively
in a majority of cases.
Tugman said public ownership
of utilities should "grow from the
ground up and not be handed to
you top down" and told of the
operation of Eugene's municipal
plant, to which he pointed with
pride.
The editor charged the Bonne
ville power administration "med
dled" in local politics, and said
that should the Columbia author
ity be created, there might be a
tendency toward control, of mu
nicipally operated plants!
"I have no illusions about
private power companies and
the methods they have used at
certain times." he added, "bat
methods employed by Bonne
ville to promote Its ideas are
(Turn to Page 2, Col. 2)
JLandis Calls
Oregon Okeh
Owen Says Interest
Shown in Civil
Defense Plans
' Keen interest in the plan of
civilian defense control center
operation adopted by the city of
Portland, was displayed by James
M. Landis, federal director of the
office of civilian defense, at a
meeting of state council execu
tives in Washington recently, Jer
rold Owen, Oregon civilian de
fense director, declared upon his
return here Tuesday.
Landis unequivocally said that
the criticism ol civilian defense
activity on the P a c 1 f i c coast,
which he made on a recent trip
here, did not apply to Oregon.
Owen said Landis displayed a de
sire to cooperate with state civil
ian defense organizations and
agreed to revise j regulations and
forms to which objections have
been made by the states.
Regional and sectional directors
of the office "of civilian defense
who attempt to dictate state pro
grams and operations were mild
ly criticized by Landis, Owen de
clared. ' Prohibition Asked
PHILADELPHIA, June 18-P)
A resolution asking President
Roosevelt to impose national pro
hibition by executive order during
the war was adopted Tuesday by
the Women's Christian Temper
'fcnee Union of Philadelphia.
S Ships
30 minutes apart. He was Rubin
Redwine of Philadelphia, second
assistant engineer aboard one of
the ships. There were 46 in the
crew of the vessel and 62 in the
crew- of the other.
The first ship attacked remained
afloat until late Monday night and
the other was towed into a port.
Soldiers, sailors and coast
guardsmen cleared the Virginia
beach for a stretch of 100 yards
in front of a coast guard station
and held back the crowds as a
surf boat brought ashore three
empty lifeboats and the body of
Redwine, which was found float
ing about a half mile from his
ship. His shipmates believed he
was hurled overboard by the ex
plosion of the torpedo.
A hush fell over the throng of
bathers and pleasure seekers as
Redwine's body, covered with oil,
was removed from the surf boat
nad carried to the coast guard sta
tion. Bedwine's 45-shipmates had
abandoned the ship In three
lifeboats shortly after a single
torpedo tore into their vessel's
starboard side forward of , the
amidship ' house. After .rowing
part of the six miles to "shore
they were picked up by a pa
trol boat and landed several
miles down the beach. The
lifeboats were towed ashore
by a coast ruard surfboat
From the time of the first at
tack, which occurred shortly af
ter 5 p.m., until late Monday
night, thousands of persons lined
the beach and watched the planes,
blimp and surface craft pursue
their grim game of hide and seek
with the enemy raider.
First Engineer A. W. Brown of
Philadelphia told newsmen in an
interview granted by the navy
the ship was armed but the gun
crew had no opportunity for a
(Turn to Page 2, CoL 5)
FR Proposals
Rejected, Tax
$25,000-Top Plan Goes
To Shelf; President ,
Dissatisfied, Speed
WASHINGTON, June 16-(P)
President Roosevelt expressed
dissatisfaction with the progress
of the long-pending tax bill Tues
day as the house ways and means
committee shelved his suggestion
to limit ; individual incomes to
$25,000 after payment of taxes.
By almost unanimous consent,
the committee decided there was
insufficient time now for a de
tailed study of this question.
Another presidential sugges
tion to separate the new excise
taxes from the rest of the bill
and rush them to enactment so
the treasury could start collecting-
them more speedily also
was rejected. Chairman Dough
ton (D-NC) of the committee
commented "it is too late now
to divide the bilL"
The president, discussing the
matter at his press conference,
remarked the tax portion of his
anti-inflation program was be
hind schedule and every day
which passed without action on
the tax bill was costing the treas
ury considerable money. Mr.
Roosevelt did not answer direct
ly a question whether he would
prefer to have a sales tax voted
rather than have the revenue
measure fall short of the $8,700,
000,000 goal, commenting only he
hoped a bill would reach him
eventually sometime this year.
Our Senators
Lcsi
10-7
.ai msm
aliami
Great Nazi Losses
Svfi Inflicted on
narkov Sectors
cr
Counter-Attack Surprises Germans;
Nazi Stormers at Sevastopol Pay
Heavily; Many Tanks Destroyed
By HENRY C. CASSIDY
MOSCOW, Wednesday, June 17-P-Soviet forces counter
attacked in one sector of the Kharkov front Tuesday and in the
battle for Sevastopol inflicted frightful losses among 125,000
nazis storming furiously and futilely at the Black sea naval base,
the government announced early Wednesday.
Surprising the Germans, Marshal Timoshenko's forces wiped
New Job
MRS. GEORGE R. K. MOORHEAD
County Health
Worker Quits
Mrs. Moorhead Joins
Staff of U of O
Medical School
Mrs. George R. K. Moorhead
has been appointed field secre
tary of the division of social hy
giene at the University of Ore
gon Medical school, according to
announcement Tuesday by Dr.
Donald M. Erb, president of the
university.
Mrs. Moorhead will work with
Dr. Adolph Weinzirl in the devel
opment of a social hygiene pro
gram for the state which is being
established through funds . from
the Brown estate. Mrs. Moorhead
will begin her duties on July 1
with headquarters in Portland.
Mrs. Moorhead has served as
director of health education for
the Marion county department of
health and executive secretary of
the Marion county public health
association for the past six years.
She has submitted her resigna
tion to the board of directors, ef
fective June 30.
Mrs. Moorhead has been re
sponsible for the successful 'tu
berculosis seal sales in Marion
county and it was through her
efforts that Marion county was
awarded its first state honor this
year. Tinkham Gilbert, president
of the Marion county public health
association, has appointed a com
mittee to interview applicants for
the position of executive secre
tary. Mrs. Moorhead is chairman of
department of public welfare of
(Turn to Page 2, Col. 7)
fc. - V ' ':Kv;-a
Camp Makes Salem
Salem, city of salaries, took
stock this week and reclassified
herself as a payroll metropolis,
with hundreds of thousands of
dollars in checks to be cashed
often after banking hours by men
and women employed at inearby
Camp Adair. i ,
Somewhere between a half
million and a million dollars
monthly Is flowing Into the
capital city from the canton
ment construction, a rough
check revealed Tuesday.
This, in addition to the seasonal
increase in paychecks which be
gins in Salem with the strawber
ry harvest and the preparation of
hopyards for the summer grow
ing period and to the recently
restored payroll at the Oregon
Pulp & Paper company's sawmill,
is reflected in purchases of mer
chandise as well as war bonds and
in new bank accounts as well as
payment of old debts, merchants
and bankers declared.
At Salem chamber of com
out an enure enemy column in a
sharp counterthrust in the Khar
kov area, the midnight communi
que reported, while in other sec
tors about the big Ukraine indus
trial center repeated German
charges were smashed.
With these two fronts blazing
with fierce but still indecisive
fighting, the Russians launched a
minor drive of their own in the
long quiescent Bryansk sector,
southwest of Moscow, and in a
spurt of activity on the Leningrad
front ejected the nazis from a
strongly fortified position.
More than 400 Germans were
reported killed in this engage
ment, one of many which flared
up and down the front Tuesday
as local sparring continued on a
widening scale.
Another 200 of the enemy were
slain in the red army's counter
attack on the Kharkov front, and
30 armored vehicles and four
tanks were destroyed.
In red air force attacks Fri
day, presumably In the Sevasto
pol battle, the Russians report
ed a 3000-ton transport and two
motor boats sunk, four trans
ports and two patrol boat d&ai-'
aged. The Soviet airmen also
were credited with destroying
12 tanks, 100 heavily laden
trucks and an entire railroad
train.
In one small corner of the siege
lines at Sevastopol, red navy ma
rines broke into German trenches
and killed 250, the high command
said. T a s s, the official news
agency, said three infantry regi
ments of perhaps 7500 men "were
exterminated" in beating back
heavy German attacks. Fifty tanks
(Turn to Page 2, Col. 1)
No Reports
On Aleutians
WASHINGTON, June 16.-(JP)
The army and navy were silent
Tuesday night on the progress of
fighting in the Aleutian area,
where American planes are re
ported to have sunk a Japanese
cruiser and damaged a carrier
and six other vessels of the enemy
invasion fleet.
It was pointed out that foggy
weather and poor flying condi
tions frequently have interrupted
the American attacks on Japanese
landing parties at Attu, most re
mote of the Aleutian chain.
The latest navy communique
issued last night, said air at
tacks on enemy landing parties
and their supporting naval con
tingents were continuing.
Dies at Tillamook
TILLAMOOK, June 16-()
Franzel L. Mills, 43, prominent
Tillamook merchant, died here
Monday. Funeral services will be
held Wednesday.
merce offices where the Salem
Realty board operates a bousing
service, "desirable" houses and
apartments were snapped up
almost as rapidly as they went
on the rental market the past
three weeks, it waa said. Less
call was noted for rooms or for
room and board.
In spite of this apparent in
flux of workers and their fami
lies, by far the larger share of
the cantonment payroll checks
cashed here have been written to
regular residents of this area,
bankers believed.
Small farmers, school teachers,
laborers, - a variety - of ; men . and
women to whom the "big" checks
of defense workers still appear
oversize have ; "salted away; a
portion of their earnings, but have
bought also not only work clothes
but in many cases a better grade
of dress clothing than previously
demanded, merchants . indicated.
Unaware of what share of their
sales were to cantonment work
esse
Lexington'
Will Sail
Again
WASHINGTON, June 16,-iA3)
The navy announced Tuesday
another "Lexington' will be
launched shortly to replace the
carrier destroyed in the battle
of the Coral sea.
The new vessel, nnder con
struction at the Fore River plant
of the Bethlehem Steel com
pany at Quincy, Mass., had been
scheduled for commissioning as
the USS Cabot, the navy said.
Bat the name was changed,
spokesman explained, after
2,000 workers at the shipyard
requested she be christened the
Lexington to "thunder destruc
tion on the enemies of the
United States."
Dependent Aid
Bill Is Passed
Amendment Designed
To Prevent Breakup
Of Home Life
WASHINGTON, June ld.-(JP)
A bill making financial provision
for soldiers' and sailors' depend
ents and stating a congressional
policy that the selective service
should "not break up the insti
nation of the home" was passed
Tuesday by the house and sent
to the White House. A measure
raising the pay of the armed
forces to a minimum of $50 a
month, to cover contributions to
dependents, also awaits Presi
dent Roosevelt's signature.
The dependents' allotment bill
was intended primarily to pro-
Vide assistance to the dependents
of service men of the lower pay
4 grades, up to line sergeants in
the army and third class petty
officers in the navy. It was
Lamended in the senate to make
a sweeping change in the draft
status of family men.
This amendment, finally ap
proved by both branches after
conference, gives the president
authority, through the selective
service system, to defer men
having wives or children with
whom they maintain a bona
fide family relationship in their
homes. Heretofore married men
with dependents have been de
ferred on financial grounds.
The new legislation, while rec
ognizing the financial aspects of
dependency, permits deferment
of family heads primarily be
cause of their family status. A
married man whose dependents
have adequate income from other
sources could be deferred be
cause of his family relationship.
Chairman May (D-Ky) of the
military committee told the house
that the purpose of the amend
ment was to emphasize the con
gressional policy "not to break
up the institution of the home.
Men at the head of households,
May said, will not be drafted until
all other available manpower has
been exhausted.
Some local boards, May said,
have been drafting married men
with self-supporting dependents;
others likely would feel that fi
nancial dependency no longer con
stitutes a .valid reason for de
ferment in view of the payments
provided.
While payments under the
bill should be taken Into con
sideration, house conferees said
in their report, they should not
be deemed conclusively to re
(Turn to Page 2, Col. 8)
'Payroll Metropolis'
ers but knowing that some of
them could be so credited, gro
cers said homemakers from fami
lies on the new payroll bought a
little more lavishly, talked vita
mins in preference to filling qual
ities of foods.
One restauranteur estimated a
33 per cent increase in business
the past month which in other
years might have been credited to
tourist trade.
Late closing hours made beer
parlors and poolhalls favorites for
the cashing of payroll checks in
early-closing Salem business area.
. Through Salem banks last
week flowed approximately
SlsO.OOO in known cantonment
payroll from definitely "out
side" sources. That Is, neither
bank included in its figures
Portland or Salem checks, al
' though at least two primary and
three or four secondary con
tractors are local firms, carrying
their accounts and paying their
employes here. State institu
milk in Battle
First Participation By
US
in
Told as
Carriers Given
Nod for New
Naval Shins
i
Construction Bill Calls
For No Battleships;
Reliance Shifted
WASHINGTON, June IMA3)
Legislators disclosed Tuesday
the navy has charted a new and
precedent-shattering course in
warship construction, with a
decision to concentrate on
building of airplane carriers at
the expense of new battleships
heretofore considered the back
bone of sea power.
Emphasizing crowing recog
nition of the vital role of air
power in the world conflict, the
house naval committee approved
an $8,500,000,000 measure call
ing for 500,000 tons of carriers
and omitting any provision for
new battleships. In its entirety,
the measure contemplates con
struction of 1400 ships of all
other types.
The plan to concentrate on car
rier strength was considered espe
cially significant in view of
smashing American aerial blows
at Japanese sea and air power in
the Coral sea, Midway and Aleu
tian areas.
The decision was first disclosed
by Sens. Ellender (D-La) and
Brewster (R-Me), members of .the
senate naval affairs committee.
In separate interviews, they told
reporters top-ranking admirals had
said the United States would start
no new battleships and that some
heavy cruisers, now under con
struction, would be converted to
carriers.
Chairman Vinson (D-Ga) of
the house naval committee, like
wise said work has been de
ferred temporarily on "four or
five battleships in order to con
centrate on carriers." While the
navy has far from abandoned
battleships altogether, he said,
events had proved conclusively
the aircraft carrier "is the back
bone of the fleet"
The navy appeared to sound at
least a temporary death-knell for
the contemplated, huge 60,000-ton
battlewagons which it has had un
der design more than a year.
Brewster announced plans for
these giants were being abandoned
for the present, but both he and
Vinson stressed the capital ships
nearing completion would be
launched and commissioned as
planned.
Monday's Weather
By army request, weather
forecasts are withheld and tem
perature data delayed. Mon
day's max. temp. 63, min. 52.
Tuesday river, 3 ft
tions have quoted their annual
payrolls as approximately $2,-
eev.oot.
Gloomsters who counted the
cantonment construction workers'
funds spent thriftily in most cases
here and looked ahead to comple
tion of most of the work at Camp
Adair by August 1 were reminded
by more optimistic persons that
bids are to be opened in Portland
today for construction work at the
Salem airport, and that the army
will have moved into Adair before
the workmen have moved out
While size of the project at the
Salem airport was not announced
for publication, E. A. HilL civilian
superintendent, commenced work
of establishing his office in the
hangar building there Tuesday.
Surveyors staked i locations for
barracks to house airmen and
ground crews at the new airbase
and actual construction was ex
pected to commence within a mat
ter of hours. -
M'edi
Air Force Wins
Army Liberators9 in Fight
To Sink Cruiser, Others
When Convoy Is Attacked
LONDON, June 16 (AP)-US army four-motored
"Liberators," RAF torpedo planes and warships of the Brit
ish fleet were disclosed Tuesday night to have sunk one of
Italy's two remaining heavy cruisers, left two Italian battle
ships battered and burning,
least six other enemy men - of -
churned the central and eastern Mediterranean since Saturday.
It was the first officially
air forces in the Mediterranean theatre, now blazing into
Salvager
Bruce, Hollywood actress,
(above) meets President Roo
sevelt's appeal to all Americans
to search for scrap rubber with
. this batch of discarded rubber
boots and tires. She ransacked
her own home, canvassed her
neighbors and was able to de-L
liver a wheelbarrow load of
scrap rubber to a gas station
reception depot
Rubber Hills
Keep Growing
State Gives 200 Tons;
Farm Senators See
Rubber in Wheat
Foothillfof discarded tires grew
into mountains in service station
yards of the mid-valley area
Tuesday and more than 200 tons
of scrap rubber had been sold in
Oregon to roll into war produc
tion during the first 48 hours of
the concentrated nationwide drive
for the salvage material, state war
production authorities estimated.
Service stations in the Salem
district affiliated with one major
oil company had gathered 20 tons
by Monday night; others expected
to tally their purchases today, and
more than 100 tons of rubber had
already moved into the Portland
area, it was said. One dealer here
Monday was reported to have sold
five carloads of tires and inner
tubes.
Not Just tires and tubes, al
though they made the greatest
showing in the first-day's sal
vage, but all types "of rubber
goods past their days of useful
ness are wanted. It was em
phasised over the nation. .
County employes in Los An
geles were urged to contribute
discarded rubber stamps and chair
seat pads. In Washington, .DC,
President Roosevelt said Tuesday
he thought it was a grand idea
for people to contribute rubber
mats ' from their automobiles Jo
the scrap rubber collection cam
paign, which he declared had got
off to a big start. Trom the i White
House family, he disclosed to The
Associated Press; there were con
tributions of a basket of rubber
toys and even his Scottie dog,
(Turn to Page 2 CoL 4) v
"""""" m - ' - - - V 0
k(ll , ? 4v, ."J "wi "J
I'
kill
Carol
terranean
and destroyed or damaged at
war in the battles which have
recorded participation of US
I full summer activity.
coecial communiques from the
' command in Cairo and the
.iralty and air ministry in
London piled up impressive re
ports of allied successes after two
days of axis claims of the smash
ing of two great convoys, bound
from both east and west for Malta
and Tobruk. The Germans and
Italians announced a total of 16
allied vessels, including eight
cruisers or destroyers, had been
sunk for sure and 38 other ships
had been damaged, some of them
being called total losses.
Replying to this, the admiralty-
air ministry communique an
nounced flatly the convoys had
delivered the goods to both Malta
and Tobruk in the face of the
heaviest kind of attacks by su
perior enemy naval and air forces.
It was conceded there were
British losses; they were not
specified, but . the communique
said "the fantastic enemy claims
to have sunk cruisers and to
have damaged battleships and
an aircraft carrier are without
any foundation."
This communique listed a
10,000-ton eight inch cruiser of
the Trento class and at least two
destroyers sunk by "his majes
ty's ships, naval aircraft the RAF
and the United States army air
corps," in addition to heavy losses
inflicted on the axis air squadrons.
It was the Cairo RAF headquar
ters, however, which told the
more complete story of how the
big Consolidated B-24's of the
new US army air force establish
ment in the middle-east cracked
the backbone of the Italian fleet
just off Italian shores.
The total damage wrought by
these American bombers and by
the RAF and British fleet air arm
torpedo planes was:
Sinking of the Trento cruiser
in a combined American -British
assault; setting afire and
damaging the two Italian bat
(Turn to Pago 2, CoL 6)
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