wow;
Ok TTNn)? lfX 4t"v yyA X
Scrvico Men ;
Ovr boys of Salem and
vicinity are la uniform with
Uncle Sun oyer the face of
the globe. Follow them daily
la The Statesman's Serrio
Men column.
. Tl oaa events occur
CVr Jjftts of the world
while -yoo sleep but also
while The Statesman news
services art reporting them.
Keep posted: read The
' Statesman. . 7 : ' :
PcuNDncr
NINETY -SECOND YEAR
Salem, Oregon, Tuesday Morning, August 25, 1942
Price) 5c.
No. Ill
Brazil' CM
TTTv
Mil
. OLKlfc ) r ID
I V V-.X . ' "V- III II I I I I II . X I i I I I I I I I I I I I I II
:
p -
Aid.
Vessels
9
-A
Chinese
Ketake
Fuchow
Second Biggest
1
Jap Base Falls;
In Kiangsi
By SPENCER MOOSA'
CHUNGKING, Aug. 24.;
k T T t . r t. A
Wan (Fuchow), second big
- gest Japanese base in Kiang
. si province, was announced
Monday night by the Chinese
high command, while other
Chinese forces smashed to
Within 30 miles of Nanchang,
the Invaders' main Kiangsi
Stronghold, .
The Chinese central new agen-
ey later reported the Japanese
forces retreating from Lancnwan
s bad-been cut off by mobile Chi
nese units "which gained control
of communications In their rear.
i ! Eastward to the Chekiang prov
ince border , the Chinese held a
a regained 115-mile segment of
the important Nanchang-Hang-chow
rail line, and on into Chek
tana thev nressed in new drives
that menaced Japanese-held
Chuhsien and Lishui sites of . air
bases from which Tokyo could be
bombed.
Thus in a resurgence " of of fen
a 1 v e operations, Generalissimo
Chiang Kai-Shek's forces either
invalidated or ' threatened the
; ' chief fruits of the Japanese sum
mer campaign in the two ,r key
provinces. C ' .
There ! was no tendency among
Chinese observers howevery to
attribute the new" gains solely to
the; prowess of Chinese 'arms.
"' - Private report received here
. indicated the Japanese were
withdrawing considerable I orees
- from parts of the Chinese front,
leaving only garrison detach
ments in some plaees.
These reports said most of the
forces withdrawn from Chekiang
and Kiangsi were- being moved
south (whence operations against
South China, Australia or India
"might be based), and the rest
north to Manchukuo (where Jap
anese forces face Siberia).: r
The Chinese had laid siege for
two weeks to Linchwan, on the
Fu river 60 miles southeast of
Nanchang. In the early stages of
the onslaught Chinese ground
forces were supported by US
army air force bombers which
smashed at the Japanese defenses:
The Japanese had held the city
since early in . June when 'it fell
to their drive along the FU river
toward Fukien province to the
. south.
German Bomber
Hits Icelandic '
Fishing Boat
REYKJAVIK Iceland, Aug. 24
(FyA German bomber twice at
tacked an Icelandic fishing trawler
off the northwestern coast today,
killing one member of the crew.
The bomber circled low oyer the
trawler, machine-gunned ifand
later dropped, a bomb which land
ed nearby. The vessel was only
slightly damaged.
Another German bomber was
over northwestern Iceland Monday
and one over southeastern Iceland
Sunday. Neither attacked.
Lower Dependent Tax Credit
Proposed by Senate Group
WASHINGTON, Aug. 24.-(flP)-The
senate finance committee
voted today to dip Into the pockets
of heads of families for a $220,
000,000 addition to the new reve
nue bill by lowering from $400 to
$300 the individual income tax
-credit for dependents,
In a 12 to 8 vote that Chair
man George said was only tenta
tive,, the committee approved
treasury proposal previously re
jected by the house to allow only
$300 deduction from taxable In
come for the support of children
Under 18 years old or for other
persons incapable of caring : for
.themselves.- The Jaw now allows
t400, a figure retained by the
ouse. v -i "
At the fame time, the com
" mittee sustained house action
fn cutting personal exemptions
of married couples from tbe
present $1500 level to $1209 and
fcj reducing. the existing $759
1944 Doesn't Count
In NY Albany Race,
Nominee Dewey Says
SARATOGA SPRINGS, NY,
Aug. 24-Vrhomas E. Dewey
accepted the republican nomi
nation for governor . of New
York Monday night with a re
nouncement, if elected, of any
presidential aspirations in 1944.
The former Manhattan dis
trict attorney, who lost the
party's presidential nomination
to Wendell L. Willkie In 1940,
made his declaration, Immediate
ly after a cheering state conven
tion nominated him by acclama
tion for a three-cornered guber
natorial race.
Dewey has been considered by
political observers an almost cer
tain candidate for the presidential
nomination, whose chances would
be enhanced by election to the
New York governorship. Presi
dential candidates will be named
in 1944, midway in the next gub
ernatorial term.
. Referring to the democratic
convention in Brooklyn last week
as "a personal political fight for
control of the 1944 democratic
convention," Dewey said:
"By contrast, neither yon nor
I here are concerned with 1944.
This convention and the repub
lican campaign are concerned
only with the winning of the
war and with rood government
for the people of the state of
New York for the next four
.years. For my part, let me say
right now that I shall devote
the next four years exclusively'
to the service of the people of
New York state.- "
Endorsing i almost I word for
wc$d e. platform adopted pledging
White CoUar
PlanOkelied
By Union Men
PORTLAND, Aug. 24.-KA-
Ranking ' Oregon labor . leaders
today endorsed the Hayes plan
to create a pool of white-cellar
workers for spare-time service in
labor-short war industries.
' D. E. Nickerson, executive sec
retary of the Oregon State Federation-
of Labor ( AFL, . and
Ralph Peoples, executrveV secre
tary of the Oregon State Indus
trial Union council (CIO), ap
proved the proposal as a wartime
production expediency.
Bota- warned, . however, L that
care should be taken to deter
mine the ability of office workers
to withstand the straiif f , regular
and part-time jobs. , 4
Nickerson insisted that "work
ers must enter the agreement with
the understanding that they ; will
clear through the; unions in
volved. . -
State officials of the US em
ployment service also have ap
proved the:- plan, advanced about
two months ago by James Hayes,
Union Pacific railroad public re
lations official here.;,,. r
Charles H. Elery, Oregon and
northern Idaho regional wage
hour division official, said the
plan would be considered within
the bounds of the fair labor stand
ards act in "these abnormal
times."
exemption for single persons to
$500.
The treasury bad asked the lat
ter figure be increased to $600
principally to avoid the necessity
of obtaining returns from-, many
persons who - would pay little if
any taxes but George said this
suggestion, was rejected" by "about
the same vote as prevailed on the
dependency credit provision. ;
Moving swiftly to revise other
sections of the bill, the committee
voted 9 to 7 to tax the income
from future issues of state and
municipal bonds. Previously -, it
had declined to consider a treas
ury suggestion for a $300,000,000
additional torrevenues by taxation
of existing issues and George said
the levy on new securities would
not boost immediate receipts ap
preciably.
Postponing action on debt re
lief proposals, the committee dc
(Turn to Fags 2, Col. 3)
For Governor
jS
1 x -111
30
THOMAS E. DEWEY
continued support to the war ef
fort but criticizing its prosecution
on the home front, the nominee
asserted the war "is not a po
litical issue," and added:
' The republican party will
' (Turn n Page 2, Col 6
15 Policemen
1
Here to Give
Conner $ Lift
Fifteen members of Salem's
Police force today add five
hours to their working days,
planning, they said Monday, to
put in a short shift at some of
the city's canneries.
"Authority toX take m the
cannery Jobs for the height of
the season was granted Monday
by Chief of Police Frank Minto,
who declared it a "good Idea"
but asked tMtt each man plan
ninr such a-schedule discuss It
first with him. ; ' ' : "
"We're glad to be able te heftp
save some of the food this area
produces and most of us are
husky enough, to work an extra
five , hours daily for the next
month, particularly at Jobs s
different from our routine po
lice work," said Sgt, Jack Cut
ler, veteran employe of the de
partment. '
Rommel Eyed
For New Move
LONDON, Aug. 24 -UPi- In
creased, air activity over the
Egyptian desert and continued
axis efforts to get convoys across
the Mediterranean led Mondav
night to renewed speculation over
the possibility of another offen
sive by German Marshal Erwin
Rommet
The Italians have reDcatedlv in
timated the present lull in the
desert fighting would end soon.
Monday the Rome radio said "a
hurricane , of death may be un
leashed any moment"
British military critics express
ed belief Rommel, bivouacked 80
miles west of Alexandria akin the
desert coast, had managed to get
substantial reinforcements. - -
Missing Oregon
Marine Majors
Rlade Colonels
WASHIIJGTON, Aug. 24.-(Jpj
C....n1 : ' , . .
oi uuuuic curjjs majors miss
ing in action were included today
in a 11s; 01 ill promoted to lieu
tenant colonel. " "
The missing men possibly are
prisoners of war. and the emmn.
tions cannot become effective im
mediately.
- Among the 212 are Joseph II.
Berry, Pbrtland, and William F,
Parks. Milwaukie. ..
I. " .
r
V
Hop, Bean
en Cry
J:
For Help
3600 Pickers 1
Needed iToday,
Valley Area
Thirty six hundred pickers,
2400 for hops and 1200 for
beans, are wanted by growers
in the Marion-Polk county area
this morning. 'Orders for these
numbers were on file with the
US employment office when it
closed Monday night. An . ap
peal for workers frorli Portland
was sent to the Portland branch
of the employment .office late
Monday afternoon,' '
Seventeen hundred of the hop
pickers are wanted in the Inde
pendence area this morning and
between 200 and 250 are wanted
in . the north Salem area, W. H.
PORTLAND, Aug. 24--All-oul
aid in nearby beaa. fields
was urged upon Portland's 19,
900 club women Monday.
They were asked to follow
the example of the League of
Women voters to help growers
save the fast-maturing string
bean crop, by Evangiiine E.
PbJlbin, president of the city's
Federation of Women's clubs.
Baillie, employment service man
ager, said. Others are needed in
other yards. :
Four hundred bean pickers were
ordered for the Stayton cannery,
300 were needed in the West Stay-
ton yards by the Blue Lake Pro
ducers cooperative 250 t.Paugus
BrosV.150.by Rav-Maling, Wood
burn, and 100 by the California
Packing company.
It had been estimated that there
were 7500 bean pickers at work in
the Marion-Polk area last week
and by actual count it was de
termined Monday afternoon there
were 2630 hop pickers in the In
dependence yards. It is believed
Independence has perhaps half of
the total number actually at work
in the Marion-Polk area, which
would make the total hop pickers
5660.
- Persons In close touch with the
employment situation feel sure
there were not many more than
8000 bean pickers at work Mon
day. Many change around from
crop to crop and from yard to yard
and it is necessary to make re
placements as well as the 500 ex
tras ordered for Monday morning,
; '"The peak of the season, in so
far as numbers of workers needed,
has- arrived," Baillie said Monday
night "Portland reports having
had some inquiry about hop and
bean picking in this area, and it is
hoped many of these workers will
be directed this way. '
"We need between 3500 and
4000 pickers Tuesday morning to
supply bean and hop growers. Iff
we do not get these for work Tues
day, a general appeal will have to
be made to workers in other fields,
as was done last year."
Dried Fruit
Price Eased
WASHINGTON! Aug. 24 -UP)
Price, Administrator " Henderson
removed Monday-from the gen
era! . maximum price regulation
five dried fruits when sold to the
armed forces or the federal sur
plus commodities corporation.
The-action was taken to enable
the armed forces and the FSCO
to buy. the fruits without delay
In packing and production.
The-exemption applies to dried
apples,", .; dried apricots, . raisins,
drieS peachee and dried-pears. -A
forthcoming regulation will pro
tide a different price basis for
sales to the private trade and to
the armed forces at a price .ap
proximating 13 per cent higher
than the old maximum.
Service Men
Word of the promotion of
their son-in-law, Gordon Skin
ner, te grade of . captain "was
received by Cot and Mrs. Carle
Abrams cm Monday night In a
telegram from their daughter,
Mrs. Skinner.' Cap t Skinner Is
on the staff of the commanding
general of the Florida rub-sector
and with Mrs. Skinner, the
former Betty Abrams, Is resid
'ing In.MlamL ?:' '-. "?:-
. (Additional service news on
page three.)
M
13 Italian, 4 Geraftan Shros MeH
Neililbor Natioiis Give
.ReciiiTing
Eleven Known
Killed, Many
Others Hurt"
'Another Quake Is
Beginning"aiid
Phone Cut Off
LIMA, Peru, Aug. 24-P)-At
least 11 persons were killed and
scores were injured late Mon
day when an earthquake rocked
southern Peru. The tremors
were, reported continuing Mon
day night. - '
Ten persons were killed In the
town of Nazca and 50 were in
jured. A third of the village
was levelled, and rescuers toiled
into the night Power facilities
were disrupted in the town, 325
miles south of here.
A : telephone communication
with police In Nazca suddenly
was Interrupted with an an
nouncement "another quake Is
beginning."
A 10-year-old girl was killed
In lea, where property suffered
heavily. ,
A strong tremor, lasting about
two minutes, was felt at Lima at
5;53 pjn. (3:53 pjn. PWT), but
there was no damage or casualties
bertV--33 C - - - 1- "
PASADENA, Califs Aug. 24-ff)
The semismological laboratory of
the California Institute of Tech
nology recorded a "very strong
earth shock at 4:58 pjn. today. The
indicated distance was between
5,000 and 6000 miles, but the direc
tion was not determined.
SEC Orders
APM, Firm
Dissolved
PHILADELPHIA, Aug. 24 -P)
In another step toward breaking
up the nation's largest single pub
lic utility holding company sys
tem, the securities and exchange
commission Monday ordered dis
solution of American Power end
Light Co. and Electric Power and
Light Co., major units of. the
Electric Bond and Share Corp.
system. - ' . : r ,
American has electric, gas,
beating, water, petroleum, ice,
real estate, transportation and fi
nancing companies in Washing'
ton, Oregon, Montana and , ten
other "states. " ,
In a 100-page decision strongly
displaying " its determination to
enforce the "death sentence" of
the holding company act during
the war, the SEC declared Ameri
can and Electric were "scarcely
more than a set of books in bond
and share's office and emphasiz
ed the two subholding companies
never- have performed any use
ful purpose."
- The order directed Bond and
Share and the ' two subsidiaries
to "proceed with due diligence'
to submit plans for dissolution.
The SEC rejected the compan
ies' contention that plans of re
organization already, filed were a
bar to , entry . of the dissolution
order and asserted "nothing con
tained in the plans ... is calcu
lated to impart a useful function
to these companies."
Season Extended .
For Big Salmon
Catch. Astoria
ASTORIA, Aug. 24.-ff)-With
salmon running , byv the millions,
Oregon commercial fishermen
were allowed an . additional 12
hours to take one of the largest
catches in "history. Z ' i- -
In response" to an appeal that
the season" which ends at " noon
Tuesday "be lengthened from two
to five days, the state fish com
mission permitted a 12-hour ex
tensionuntil midnight Tuesday.",
Hauls - of from 4000 to 5000
pounds in a night have not been
uncommon. One giilnetter report
ed that his week's work netted
him $2000;
'Quakes MiDek Perm
Le Trait Shipways Struck
By US. Flying Fortresses;
Vichy Protests Ignored
. LONDON, Aug. 24 The
US high command in England,
ignoring the protest of the Vichy
government against last Monday's
raid on Rouen in occupied France,
sent Flying Fortresses - back to
the vicinity to attack nazi ship
yards at Le Trait Monday in the
fourth daylight bombing -. of
French territory in eight days. -
The big bombers, escorted by
fighters of the RAF, the US air
force and the Polish air force,
all reached their target on the
Seine river near Rouen, and all
returned to their bases as in the
previous raids. .
American sources said 12 of the
big Fortresses took part in : the
raid. - ' ". .- '-
They again proved their abil
ity to cope with the German
Fecke-Wulf 199 fighter, reputed
to be one of the best In the air.
One ef the Fortresses encoun
' tered one of these planes en the
return trip, and a small number
of her crew were wounded, but
she got back to her base.
Allied fighters, escorting the
Fortresses, shot down two FW
190s in terrific dogfights over the
target area. ' -J' -,; '.V-
- Two " allied fighters lalso were
lost but the Spitfire 'screen was
so-effective the Germans were un
able to penetrate it during the
bombardment At one time 40
German fighters tried unsuccess
fully to intercept the bombers.
Both the FW 190s were shot
down by Canadian pilots.
A communique issued by the
US army command in Great Brit
ain and the. British air ministry
Seaman Flees
Hongkong in
Small Boat
SEATTLE, Aug. 2 4. A
25-year-old Seattle seaman
came heme from the war fronts
today with a story ef a harrow
ing escape from captured Hong
kong In a rowboat, while flood
lights niumlnated the water. ;
- Five of the six escaping com
panions of the youth, 25-year-old
Robert D. Casey, jr.,' were
picked off by Japanese goat,
before the Odyssey's end, but
Casey's only Injury was to his
backwA box of ammunition fell
" i Turn to Page 2. Cot 3)
Column Right! .
SANTA ANA. Calif, Aug. U
(A-Column right!
That could easily have been
the order ef i Capt J. T. Ans
berry, sr, when he . and - Mrs.
Ansberry arrived recently. They
were accompanied by their 11
children, one ef the largest army
families in the nation. The chil
dren range from three te 29
years. Ansberry is a former
; Cleveland Plain Dealer advertis
ing man, new on duty here.
German Tanks Admitted Only 40 Miles Away
From Stalingrad; Oil Center Endangered
By HENRY CASSIDY
MOSCOW, Tuesday, Aug. 25-JP)
German tanks and mechanized in
fantry - were acknowledged of fi
nally today to be only 40 miles
northwest of Stalingrad ' after
crtcsing the Don-river bend, and
In a 50-mile : Caucasian, advance
the nazis reached a point .only S3
miles from the rich soviet oil city
of Grozny. . : .
I TarUcularly. stiff fighting raged
against enemy tank : and mech
aized infantry-which had crossed
to the left bank oi the Don" north
west of Stalingrad, a communique
sati early today. : ' 5' : .
" The Russians else were fULt
Ing desperately against ? "large
tank and Infantry forces which
had driven a wedge into our
positions" northeast of Koteml
kovskL or on the southwestern
approaches to the Volga indus
trial city of Stalingrad. .
1st Kill His
Cspt Frank HOI of US army air
force, credited with downing
first German plane during the
combined British-American raid
en'Diepper" occupied .Trance.
The victim of HUl's guns was
one of the new Foeke-Wulf-199
pursuits. HN Radiophoto,
said the bombing was carried out
at a high level, as were previous
US raids. There was no indica
tion as to the results, but in the
American raids on Rouen, Abbe-
(Turn to Page 2, Col. 4) .
Jap Planes
Bagged Over
New Guinea
. GEN. MacARTHUR'S HEAD
QUARTERS, Australia, Tuesday,
Aug. 25 (Ph Four of a group-of
13 Japanese fighter planes en
countered over eastern New Gui
nea were shot down by allied air
men and others were damaged, a
communique announced today.
,One allied plane was damaged,
but returned to its base. , -
- Another Japanese fighter plane
was set on fire and probably de
stroyed" when two Japanese craft
sougnc to intercept an allied re
connaissance .over RabauL - New
Britain, the communique said. '
Japanese ground patrols were
dispersed at Kokoda, Inland point
on the Papuan peninsula of New
Guinea where the Invaders after
landing' at Buna and Gona have
been attempting t to strike over
land toward Port Moresby.
! Three Japanese planes raided
Darwin Monday night unsuccess
fully', the daily communique said.
On the previous night 47 Jana-
nese planes were beaten off by
ormiant allied fighter tactics.
Eleven German tanks, 300 nazis,
and two companies of Rumanians
were destroyed and killed In the
Kotelnikovskl sector, .the com
munique said.' t , i-
In the Caucasus the Germans
bad driven fO miles southeast of
Mineralnye Vody on the Rostov
Bakf railway' to reach Prokhlad
nenski, the communique said. The
latter point is about the same dis
tance southeast of Pyatigorsk. :
''Soviet troops also fell ,'back
south of Kradntdar.ln m steady re
treat toward j Novorossisk, Elack
Uea port CO miles away. Russian
rear guards took a steady toll in
the withdrawal, the Russians said,
v The crossing of the Don north
west ef Stalingrad was the most
dangerous -and Immediate threat
to all ef Knssia, for conquest of
the Volga river city would ef
fectively rat soviet army eom
manica tions with the Caucasus.
o
9
Texas Tanker
Heading for
Uruguay; Argentinaf
Peru Declare Brazil
Noii-Belligerent .
RIO DE JANEIRO. An.
24-r(AP) iWee of the lirt-
est axis-owned banks in Bra-
xiV with assets of nearly
935,000,000, were closed Mon-
AtkV itri4 V.. . . ill. .
presidential decree whjch also
ordered outright confiscation
of 17 axis vessels. ,
Seizure f of the vessels was
ordered about the time the gov
ernment announced the sinking
of the American tanker Louisiana.
of 5480 tons, understood to have
Deen operated by tte Texas com
pany. It was carrying a cargo of
ou to Kio De Janeiro, f !
(Lloyd's recistrv of uhinnin
lists a 8587-ton tanker owned by
xne Texas company.) i t
As the country, welcomed indi
cations of South American soli
darity from Argentina, Peru and
Uruguay, she . turned, also to the
grimJob-bf building defenses m
the strategic Natal bulge and hunt
ing down submarines along the
coast', i .'" ':':;' ,
An authoritative source said
three were sighted today off cen
tral Brazil and one was attacked,
presumably by a patrol plane.
But there was ne word of the
results.. -- - -- 1' -
v. Informed sources said the gov
ernment shortly' would order a
gradual mobilization of th aim
and confiscate additional German
and Italian property. -
The. German .Trans-Atlan tie
bankv the German Bank of South
America and 'the French Italian
bank of South America were clos
ed and liquidators were named. A
presidential decree said the wealth
(Turn to Page 2, Col. 1)
Senators Escape ;
Hurt in Alaska
i ' . .i ..... -
Bomber's Crash
I-' . . !
SEATTLE, Aug. 24-i'P)-Sena-tors
wl?q- Just returned from an
Alaskan Inspection trip reported
today that Charles Clark, assistant
counsel to the senate's Truman
committee, had a narrow escape in
an , army bomber's crash in the
north. 'j ': :'
-The bomber overran the run
way In landing Just a week aga,,
said Sen. Mon C. Wallgren CD
Wash), before he started for San
Francisco with Sen. Harold H.
Burton (H-Ohio) and Clark.
"Clark was thrown,; around so
violently that "his trousers and
shoes were torn off, but he es
caped with nothing worse than the
shaking up and a few minor cuts
and bruises, f Some of the army
personnel were not so lucky."
He did not elaborate on the lat
ter remark.
' A vicious, battle of movement
swirled over the level battlefield.
Lines of attacker ' and defender
were evtremely fluid; there still
were many Russians on the west
bend, and - tliey were counterat
tacking with bayonets. In an at
tempt to pinch off armored forma-'
tions which bad been ferried
across the river.
To combat this southern arm
of . the ' German pincers on the
gate city of .the Volga, Russian
tarJrs came into action. i ' d
One of these soviet tank groups
delivered a flanking blow which,
the mid-day communique said,
destroyed seven German tanks
and .killed more - than 200 Ger
mans. In another battle for ' a
populated area, red army infan
trymen touted a Rumanian' bat
talion. - ' . i.v-
(Turn to Jr'age z, uu. it
.Baopng;
Rio Is Sunk