TAGS TWO
Tta OZIGOU STATESMAfC Caleza Qgoiv4Vdaesday Morning. October 21. IStt
FDR to Sign
m w m
lax Dili lodav
- - Unanimous on Huce
' Revenue pleasure
(Continued From Page 1)
cussed , the measure briefly and
approved It by a standing vote of
130 to 2. The two dissenters were
Reps. Hinshaw (R-Calif.) and
Robison (R-Ky.). Hinshaw dis
liked the victory tax and Robison
thou eh t several items could have
. been improvd. -'
TVi (on at- 4i1VJ 4 Via --..
over for an hour, heard some
. tnarp criticism oi tne 3 per cent
tax on freight bills, and then ap
proved the bill by a voice vote
which sounded unanimous.-
: The measure raises income tax
rates to their highest level yet.
The jiormal individual income tax
rate is increased from 4 to 6 per
cent. To that is added a graduated
curtax starting at 13 per cent and
Increasing 'to 82. At present the
urtax ranges from 6 to 77 per
cent Personal exemptions have
been lowered.
The result Is that the tax
payer will pay It per cent of
his dollar f taxable Income,
with the tetaJ percentage to be
paid rising sharply as income
. increases. , " ".-
In addition, thj bill levies the
new victory tax, called by some a j
. gross income tax. Under its terms,
all individuals will be taxes a flat
f per cent of income in excess of
$12 a week, or $624 a year Some
deductions are permitted for debt
payments, insurance premiums
and war bond purchases, or a por
tion of the tax may be recovered
after the war.
An increase of nine percentage
points in the tax on corporations
was provided, raising the levy
from 31 to 40 per cent by a com
bination of normal and surtax
rates. Excess profits will be taxed
at 90 per cent, after a (5000 ex
emption. ;Tbe present excess prof
Its tax is a graduated- scale run
ning from 35 to 60 per cent -The
bin freezes social security
tax payments at the present rate
f one per eentea employers
and one per cent oa employes,
over the opposition of President
Roosevelt. The president may
criticise this featare in connec
tion with signing the ML The
taxes had been ached aled to rise
automatically to two per cent
January 1.
The tax on passenger transpor
tation is increased from 5 to 10
per cent A new levy of 3 per
cent on freight bills is imposed.
In addition, the bill increases
virtually all the excise taxes now
levied. These will become effec
tive November 1, ifrMr. Roose
velt signs the bill by midnight
Wednesday, otherwise they i will
take effect December 1.
Liberty Ship Rose
Sunk in Atlantic
RECIFE, Brazil, Oct 20-()
Sinking of the 10,000-ton US lib
erty ship John Carter Rose was
disclosed Tuesday with arrival of
35 survivors aboard the Argentine
tanker Santa Crux,
The John Carter Rose, complet
ed only two months ago, was own
ed by the US maritime commis
sion, and her home port was Bal
timore. .y 1 1 I'M
Now Two Big Hita
Plus Companion Featare !
She's a Terror with a Gun! :
"LADY GANGSTER- with
Faye Emerson - Jane Blahon
Plus MARCH OF TIME
See how th TOT f;rht. t. ...
ret batUe against Axis agents! j
33333
STARTS TODAY
Paillette's back . . . in the
raciest, most riotous ro
mantic escapade youU
see this year!
0 -r.
!!
Aim M
1
--PLUS--
SllrrUf
IhrilUI
Yeothfal
ronosca!
:: u::::ui:ru:szz2 I!
4 COLUMBIA HCH.fr "fc, VZ
o4 V.
im.tteppireitOimfl
. The Wc? Newo
By K3RKE L. SIMPSON
Wide World War Analyst tor The Statesman '
The British admiralty revelation that 530 axis submarines
have been sunk or damaged by British and "some American"
action since the outbreak of the war is a startling figure, al
though its significance is not measurable without a time break
down to show the current rateof
sinkings. -ii'S'"
Jost why It was decided U
break British silence on U-boat
sinking at this time is not in
dicated. That information has
been closely guarded on both .
sides of the Atlantic and It
was
to the Atlantic MediUr-
' ranean theatre First Lord Alex- .
ander referred.
What Alexander stressed was
that Anglo-American second-front
operations In Europe must de
pend upon "the degree of control
we exercise at sea as well as in
the air." His remarks were clear
ly designed in part to still public
clamor in England for, a prema
ture second-front attack, or at
least to impress his hearers with
the scope of the problem.
Such figures have been ' with
held up to now in London and
Washington as a result of World
war experience. The progressive
demoralization among German
U-boat crews in that war was a
major factor in the final German
home front collapse. They saw
comrades put out increasingly
never to be heard of again. There
was no mention of the actions in
which they died or were captured
in British announcements. The
gnawing effect of that upon the
morale of German undersea per
sonnel led to mutiny.
In there today any dim indica
tion of declining public morale in
Germany- or Italy as another grim
war winter closes down? It seems
indisputable. . It was almost con
ceded by-Hitler and his nazi
spokesman in recent speeches. ;
A rising tide of revolt against
the nasi conquerors in Norway,
Denmark, the low conn tries,
France and the Balkans is re
fleeted in many ways. A crista
for the French collaborationist
regime at Vichy is undeniable.
-, Nasi garrison troops in many
sections of occupied territory
art reported living almost in a
state ' of alege, surrounded by
protective barbed -wire.
To cap mat have come, reports
of mutinies by German and Ital
ian units ordered to the Russian
front There is no way to test
their truth, but the conditions
under which axis forces of occu
pation in the Balkans or elsewhere
are serving are not conducive to
high morale. The grim lesson of
last winter in Russia must make
assignment there a matter of
dread for axis troops.
Whether the progressive toll of
U-boats lost in action is sapping
nazi undersea personnel . morale
seriously is a matter of pure con
jecture. There can be no question,,
nowever, that a morale collapse
on that limited sector of his home
front could wreck Hitler today as
it did the kaiser in 1918.
New Battlers
Roam Oceans
For Britain
' (Continued From Page 1)
destroyed or damaged by British
and . American forces since the
war began.
The commanders of the new
battleships are Capt H. R. G.
Klnahan of the Anson and Capt
C H. L. Woodhouse of the Howe.
Woodhouse already has a'
feather in his cap from one con
tact with , a crack ship , of the
German navy. He-commanded the
cruiser Ajax in the battle of the
river Plate with the pocket
battleship Admiral Graf Spee. He
, , : i ,
ana lunaaan leamea logeiner as
cruiser captains In the West In
dies before the war. . "
Details of the action in which
the Anson already has engaged
were few; But it was announced
that she had tested her armament
by firing a dozen rounds and
chased a German scout plane
away from an important convoy.
t- - Today
It's Saucy! US Gay!
' - 5
;t::::;i.:: y :n
i:r.:::::Trpr -
S
Added JIarch of Time
. News Cartoon
Plus
2nd Featare '
Mrs. Barnes
Describes
Europe Life
By MARGUERITE GLEESON
Newspaper men and women
who have heard over and over
again, "Oh, I'd like to be s news
paper .reporter, it must be so in
teresting" will have a hard time
being blase and casual in duscus
sing the matter with any one who
has heard Mrs. Ralph Barnes tell,
in her Inimitable and charming
way, of her life as the wife of a
foreign correspondent
; Speaking In a delightfully per
sonal manner to members of the
Salem Kiwanis club Tuesday,
men and women who had known
her and Ralph Barnes as high
school and college sweethearts, or
as fellow students during those
same high school and college days,
she pictured 16 years spent in
European capitals so that it
seemed her listeners were given
a real part in that life. V
When she told of how she had
missed meeting Benito Mussolini
by such a "few inches", it became
such a personal matter with one
officer of the club that he later
expressed the hope that If he
ever had a chance to meet the
duce he would not be prevented
by any such margin. .
' To newspaper folk, at least to
one who wrote advance stories of
the coming marriage . of Esther
Parounagian and Ralph Barnes
18 years ago, it was a thrill to
hear big names in the newspaper
world mentioned so casually by
this '' charming poised - world
traveler.
Shopping difficulties of Rome
and Moscow,: learning Italian
from the maid, getting settled in
one apartment only to hear they
were leaving for another capital
at once, these were all part of the
life of a foreign correspondent's
wife. - -
"Some one asked me once hf
the life was so hard, why did you
marry a foreign correspondent?'
and I can only reply I did not
marry a foreign correspondent'
"Ralph got a chance to work on
a Brooklyn pape when we went
to New York 18 years ago His
first week's pay check was for $6
and we had run all around town
to get the story, something about
a lost dog. ' --
"We went to Europe the next
spring expecting to come back in
a year. After that Ralph was only
in the United States all together
about three months."
Freeze Action
Said Taken
Against Press
t Continued Tmo Page 1)
' "Because the situation has a pro-'
found and portentous bearing on
the freedom of public opinion,
every newspaper reader must be
concerned, because he is directly
involved." '
Ackerman asserted the changes
of a "domestic revolution" in the
U.S. were being borne by .the peo
ple with - "remarkable fortitude
and good spirit" but he said the
leaders in . this 1 revolution were
equally determined to "freeze the
bill of rights" along with substi
tuting "freezing the press for
freedom of thee press.".
"This domestic revolution is go
ing on," . he continued, "while
millions of young men are under
arms and orders, while they can
not express their opinions or reg
ister approval or dissent
" We who remain at home share
a literally stupendous responsibil
ity for what we are permitting to
happen while 'these men are
away, -at sea, or on the several
battle lines
Ackerman pointed to the ser
vices of ; newspapers : throughout
the United States in promoting
salvage drives, sale of war bonds,
the Red Cross roll call, the USO
campaign, and the mobilization
of civil ;- defense and community
chests, and said the press had
"enthusiastically and loyally
UEDIIESDM IHGII7 BAUCSIIG
' ; AT .
: . WiEM. EE '
2 Miles North of Albany on Highway 99 -Wednesday,
October 21 - -SPARKLING
ENJOYABLE MUSIC BY
Let Us Remind Yon
that if you want a gay, care-,
free evening of fun; dont miss
our regular Saturday Evening
Dancing Party with Al Ben
Ding's Ork. and Dorothy Evans.
Older Soldiers
May Take Jobs
Labor Shortage Areas
To Get No Work;
Luxuries Mulled
(Continued from page 1)
had said the army was studying
such a plan.
r With regard to luxury goods,
Mr. - Roosevelt remarked .that he
had been on a drive and had been
held up in a small town near
Washington where he had time
to stare Into store windows. Three
Quarters of then, he said, were
filled with luxury goods which
we could do without One reason,
he said, Is that people began
stocking up their stores some time
ago.
We have got to face the ques
tion, the president declared, whe
ther we are going to allow produc
tion of luxury goods to continue.
' In that connection he noted that
people now had about $14,000,000,
000 In cash In their pockets, com
pared with about $9,000,000,000
some time, ago. People with that
extra $5,000,000,000 are going to
spend ' their money for unneces
sary things, he said, and since
they- will buy luxuries, the stores
will kep demanding them, and tt
will tie up manpower to manu
facture them.
Moreover, he remarked, " the
fellow who gets his salary in cash
is less likely to buy war bonds
than the one who is paid by
check. - -
; WASHINGTON, Oct Zo-flP)
The war manpower commission
Tuesday listed M labor short
age areas to be avoided la plac
ing war prediction contracts
(whenever too facilities for
meeting the "prodaetlon" re
niremnta are available in oth-
On the other hand, the WMC
listed 97 areas as having labor
surpluses and designated them as
areas "in which contracts should
be placed." :i4:;.vV"i;:'
WMC chairman Paul V. McNutt
said the designation of areas "in
which contracts should and should
not be placed" was requested by
the war production board as a
guide to the war procuremnt
agencies army, navy, maritime
commission and treasury.
The 6jS areas designated as ones
to be avoided are located prin
cipally in the northeastern and
Pacific coast states. Two-thirds are
in the following states:
s Maine, New Hampshire. Ver
mont, Connecticutt, Rhode Island,
Massachusetts, New York, New
Jersey, Ohio, Michigan. Illinois.
Wisconsin, Washington, ;, Oregon
and California. ?
'. , . , ,;' , -
Russians Drive
Back Assaults
(Continued from Page 1)
"This attack also was repelled
with heavy losses to the enemv in
men and tanks. At the end of the
day our troops firmly held their
positions.
"Our troops likewise repulsed
all enemy attacks in the area of
one of the factories. German war
prisoners stated the German divi
sions which participated in the
attack during the past days have
lost 70 per: cent of their effec
tives." . , v
Soviet troops above Stalingrad
were said . to have strengthened
their positions in 1 local fighting
on the Tiazi flank with one Rus
sian detachment wining out two
Rumanian . infantry companies.
and anti-aircraft gunners knock
ing down two nazi planes.
In the Caucasus the Russians
said their; counter-attacking
troops captured a copulated nlace
and "continued to press back the
HiUerties" In the"; Mozdok area
which bars the nazis from the
Grozny oil fields some 50 miles
to the east - v
" "As a result of the fighting in
this sector about 900 German of
ficers and men were killed," the
communique said. "We . captured
an enemy store of food and uni
forms as well as various arms." ,
Southeast of Novorossisk
along the Black sea coast the :
war bulletin said that soviet
marines had repulsed enemy at
tacks, killing 119 axis troops
In one sector and dispersing a
Romanian Infantry company In
another.
. Like the midnight communi
que,: yesterday's noon communi
que also Indicated the Germans
had been unable to extend their
salient In the ruined factory sec
twos of the city-
mobilized public sentiment in
support of every war project"
al tsinnirs's
10-Piece Orchestra
Featuring .
Deductions Few From Income
Tax; Victory Levy Slated
(See also story on Page One) ,
WASHINGTON, Oct 20-flJ)-Taxpayers who have business
expenses and individuals who receive! compensation for injury
or sickness will be able to deduct those items from income before
figuring out their S per cent victory tax.
The victory levy, a new impost placed on top of the regular
Income tax, will go
will go into-effect
January 1 on incomes over1 $624
a year. .Periodic collections. will
ty withheld from the pay checks
of wage and salary earners, i -v
Ordinary Individuals will
have few ded actions from the
tax. unless they are engaged in
business for themselves. How
ever, they can subs tract any ali
mony or separated maintenance
payments from their taxable in
Come as well as any gain from
the sale of a capital asset and
any compensation they receive
for injury or sickness.
Business men will be permitted
to deduct the expenses they are
allowed to subtract froms their
regular income tax net income,
including interest taxes, business
losses, - bad debts,; depreciation,
depletion, payments to pension
trusts, -net operating losses, , and
amortization. ' ; - ' i -
The new tax wul be collected
from all alike, 'whether they are
single or married and have de
pendents. . v,
Thus a wage earner who makes
between $20 and $24 a week, for
instance, will find 50 cents with
held weekly from his paycheck
and a man who makes between
$70 and $80 a week will find $3.10
subtracted. (In certain cases, audi
as wages paid to domestic ser
vants and fees paid to public of
ficials, the' tax will not bo col
lected at the source but will be
payable In the same manner as
regular Income levies.) -
At the end of the year, the
married taxpayer will be per
mitted to claim n credit for 40
per cent of the tax. pins 1 per
cent additional for each de
pendent, np to a maTtmnnr of
$1090. The single person can
claim credit for only ti per cent
of his tax, or a maximum of
$5M. -Mr
This credit can be used In two
ways, either for. current deduc
tions or for. post-war rebates.
Laval Appeals
For Workmen
(Continued From Page 1)
scrip tion since his appeal was not
expected to yield the 150,000 vol
unter workers demanded by Hit
ler,) "(Private advices reaching Bern
said Laval had until November 1
to furnish the full 150,000 in or
der to avoid the "measures of
constraint" to which he referred,)
Laval told his listeners that his
government was "resolved not to
tolerate resistance" to his appeal
that workers go to Germany de
spite their "love of liberty and of
independence." .
The government must be
obeyed," he said.
"The highest Interests of
France demand that we under-
take a policy of entente with
Germany," he said. "I am di
recting the policy of France in
such a way that' France shall
net be the victim of a German
victory." He added that such a
victory was Inevitable.
Germany has the . right to take
workers from France, Laval went
on, "Because these are the laws
of war" and that Hitler's cause
had : to be supported "Because I
am certain and do not doubt for
one moment that I am telling the
truth that if Germany were beat
en i the Soviets would tomorrow
make the laws of Europe."
Fito Result
s
PORTLAND, Oct 20.-ff)-Cos-tello
Cruz, 158, . Santa Barbara,
Calif., pounded out' a decision
over Leo Turner, , 157, Portland
negro, m the last two rounds , of
a crowd-pleasing boxing match
here Tuesday night " v - V
A' slugging bee . from start to
finish, the bout turned to Cruz In
the; ninth and tenth when he
ripped home solid blows at infighting.-
All New Show
TODAY
F4Ter tTP ti tt A1 iTaSnSa
: li p woerv ww ow -mm
Jlischa Acer
- Ernest Truex
K -- I II'' Mm- f
11 I II
i r
I)
Allied BbmberS
Hit Solomons
Extensive Damage
Inflicted on : '."."
Enemy Bases
(Continued from Page 1)
Bremen, an air ministry . com
munique said, but no details of
the damage were given.
This was the first time In more
than a year that Bremen was at
tacked in daylight, the last occa
sion being September J, 1941. It
was the second time -mis month
that Hannover had a daylight
attack.
The flight to Hannover meant
a round trip of at least 700 miles
an easy Job for the Mosquitos,
which combine speed with long
range. Relying on speed, they do
not need a fighter escort
' Although they flew late some
of the Basis' heaviest anti-aircraft
fire and fighter concen
trations, the communique said
only one plane was-missing In
the day's operations. v
i While the RAF was continuing
its bombing of the continent the
luftwaffe remained grounded. No
German raids on Britain were re
ported after Monday's scattered
attacks on East Anglia.
Air ministry sources said 19
railway engines, seven tugs and
numerous barges were destroyed
by the RAT'S American-built
Mustang (North American) fight
ers last week in operations against
German communications In Hol
land. '
CAIRO, Oct 20.-ffHJnited
States and British planes. In day
and night a e r I a 1 partnership
against the axis, have struck
heavy blows ashore, asen and
afloat In a new, stepped-up of
fensive, communiques from the
USAAF and the RAF disclosed
Tuesday.-
Two axis ships were sunk and
at least two others hit Sunday
night and Monday in these com
bined attacks in which the allied
forces brought Into action the
whole range of their flying fleets.
Including fighter -bombers and
torpedo planes. -
At least two enemy mer
chantmen were hit by heavy
United States bombers m : an
attack on Tobrnk. British tor
pedo planes left another sink
ing, with hits In her stern, off
the Italian island of Fantouarla.
Long-range British fighter
bombers left a fourth vessel, a
two-masted schooner, aflame
and sinking off the enemy-held
Greek Isle of Crete. .
Homeward-bound from this at
tack, the same planes encount
ered a large formation of fighter
escorted JU-52 transport planes,
some of them towing gliders, over
the eastern Mediterranean about
25 miles southwest of Gavdos, a
small Island 1 off the south coast
of Crete. One of the Junkers was
downed, the RAF communique
said.
USO Wing Plans
To Be Ready Soon
Plans In detail for the proposed
new wing to Salem's Legion hall
USO center and a check Qf con
struction costs are In preparation
In the hope that funds may be
made available shortly, H. M.
Radley of : the public buildings
adniinistration of the federal se
curity agency, said In Salem on
Tuesday.
Radley, architect, Is here to
complete the plans, . already out
lined and to double-check antici
pated costs. ' v .
Apply for License
An application for a marriage
license was made in Walla Walla,
Wash, Tuesday to Charles . Otis
Taylor and Verna W. Bush, both
of Salem. - . 'v '
t t J0f77
. v J j ' "'
Two Action-Packed Hits
in
With Lynn ilerrick
alUC
rios Tax
Tl 5.-CJ
ONtheHOME FRONT
'By EASEL agLD3
Package FROM' camp received
and contents noted.
The ; chewing gum "should aid
considerably in bolstering civilian
morale. As for the bottle caps,
I know Mr. Censor, that bottled
goods are not acceptable In Uncle's
mails, but if you had to drink
the coke addressed to me by a
kindly friend In khaki, was it
necessary to leave the little re
minders in the box? - -v-
-V . : ,
Women who eat at officers mess
should put in the afternoon drill
ing troops, or head immediately
for some successil school of re
ducing. -
The cauliflower was gone when
we arrived (and I did not cry)
but our plates were heaped with
squash delrvioualy "loaded" with
brown sugar, fresh buttered car
rots, succulent and cooked as the
nutritionists . advise, : two cube
steaks served In a gravy made
with vegetable stock in which
I could discern onions and celery,
all well-seasoned. Oh, yes, when
the young lieutenant said he'd
skip the soup I sought a sample.
Just to see what was wrong. It
was non-greasy, full-flavored and
filled with still crisp and tasty
vegetables.
The salad was my own broth
ers' favorite, a great platter of
fresh, sliced tomatoes on lettuce
leaves,' dotted generously with a
tangy salad dressing.
On the table . also was bread
(both white, and brown if I re
member"conectly), a variety of
sauces, butter, jam, salt and pep
per and a steaming pitcher of
GI coffee. To an army man the
GI Is sufficient description me,
I've tasted worse at some well
rated restaurants on days when
the Java trade had not been
brisk.: ,;? ., ,. -.j ; :
As for the rice pudding well,
that takes a woman's hand. Per
haps when the WAACs get in,
the .boys may even be served
blanc mange with whipped cream,
but until that time they can al
ways buy a candy bar at the well
stocked px (post exchange to us).
En route- home, we picked up
a big private, a fisherman from
St Helens, he was. i .
- "Suppose you ate at officers'
mess," said he with a sigh, and
we thought he might be hungry,
so we questioned him.
His menu had been, the same
as ours, except that . he was in
time for the cauliflower . . . may
be that explains the sigh!
No Move Made
On Solomons
(Continued from Page 1) 3
Knox did hot elaborate, but he
said "It is still a good stiff fight"
and news from the battle area is
being made .public as quickly as
received In Washington. " , ' t
BERLIN . (from ' .German
broadcasts), Wednesday, Oct
j
r
, 0
0
t mw m i mm km
V - -
claimed Wednesday that the
Japanese bad' recaptured three
Important landing . places on
Guadalcanal island la the Solo
. toons. l:'r,--vuv
The Berlin dispatch did not say
when the action , took place, but
stated it was announced in Tokyo
Wednesday morning. The . claim
may refer to landings previously
announced by the US navy. ; (
The action was carried out by
dive bombers and tanks, the. dis
patch said, and the positions were
being held despite furious Ameri
can counterattacks.
: The dispatch also said eight US
bombers, including three flying
fortresses, had been shot down
over Guadalcanal and neighboring
waters.; iZ "3;
' (There is no confirmatiofi ef
this claim from any source), r
Oregon Qaims
First Place,
Scrap Drive,
(Continued from Page 1)
the airport offered the services
of their men and tracks . last
. week to load and haul the col
lection of a number of years
thev had found at the old ettv
ineenerator site. Membera of
the- county and state salvage
' enaunltiees. ; viMrliir mtl
there, agreed with one city Junk
, dealer that ha . Ita present shape
transportation ' would cost more
Chan tt eonld be expected to
bring. -, j . .:. ' ,-
On the other hand, it was point
ed out,' except lor its encrustation
of dirt and rust much of it is simi
lar to the contributions of city
residents. In rural areas, salvage
committee members agreed, the
more valuable donations - are al
ready being received In the form
of heavy discarded farm machin
ery. ' -i;;' ;
October 29 was this week named
pickup day for scrap metal col
lections in Bethel and Fruit
land districts, Where the Com
munity will provide four trucks
and make its own sale, pro
ceeds to go to the air observa
tion post Pringle. providing its
own trucks except in the more
congested area adjacent to Sa
lem, where assistance from the
city may be asked, is to gather its
scrap harvest October 29; the
same days has been selected for
Pleasant Point ,
, . Named on the Salem city coun
cil's special committee by Mayor
W. W. Chadwick are Tom Arm
strong, Frank Marshall, James
Nicholson and David O'Hara. ,
tb .
ecu n-go
- pus .
Ml
aBnammao. ssamaea, kn m
i- .-.V' , , -. ". - .