DImout Tho Insido Thursday sunset I p. m. Friday sunrise 8:44 a. m. Weather: Toes. max. temp. JS, min. 2L Thur. river 2.S ft. Weather 4aU restricted by army request - Tear complete morning newspaper, Th Statesman, offers yon pertinent com meats on war news of the day by Klrke 8 1 m n a o a Washington analyst. s I IJUIETY-SECOND YEAR Golem, Oregon, Thursday Morning, January 21, IS 43 Pries 5c No. 223 Da A s I it i l i i ill l il t i ll 1 Cold Due: Hem Freeze Surplus on Tax Great Problem For Legislature Ueciuctions in By RALPH C. CURTIS ...... Total revenue from Oregon's state income tax will not be substantially less in 1943, un der existing r t e s, than the $13,800,000 collected in 1942. There is good reason to expect that it will be greater. Income tax receipts are not subject to accurate prediction. But the point is that legislators, wrestling with the "surplus" problem, will not be in position to "let nature take its course" confident that the reduc--tions in individual payments thanks to deductions for federal income tax payments, mentioned by Gov. Earl W. Snell in his in augural message, will solve the 'problem for them. Oregon's lawmakers and par ticularly taxation committee members already have encount ered the need for "education" in tax matters and the possible fact that they have heretofore been well informed Is of no crest help. For nothing less than a revolution has occurred In this ypnase or coTcrameni, ana inose . wj onee were familiar with all Xhe . angles will have to learn all over again. That the surplus will not evapo rate due to federal income tax deductions is the first lesson. It is true that an individual whose, income in 1942 was the same as in'1941 vkll pay less state Income tax in 1943 than in 1942, and Gov. Snell's estimate that the reduction will amount to 15 per cent truly was, as he insisted, conservative. But in the aggregate, incomes in Oregon in 1942 were greater, by considerably more than IS per cent, than in 1941. How much greater, and to what extent the increases will be reflected in tax payments if the legislature does not revise the rates, cannot be stated accurately. But here are some figures which indicate the trend: The state unemployment com pensation commission reported that the "covered" payroll which does not include all wages and salaries paid in Oregon, not to mention income from other sources amounted for the year 1941 to $355,000,000. That was a gain .from $216,000,000 in 1940. The total of "covered" payrolls for 1942 has not yet been announced. But for the 12-months period end ing September 30, .1942, they amounted to approximately $500, 000,000. That is a 40 per cent in crease. For the full year 1942 the total almost certainly was still higher. : That's not to say that state in - come tax receipts will be 25 per (Turn to Page 2 B) Chain Stores Are Charged KANSAS CITY, Kan., Jan. 20 (jfy-The federal government brought two more of the coun try's big food store chain organ izations Safeway and Kroger under indictment Wednesday on charges of violating the Sherman anti-trust law, charges promptly denied by officials of the two companies. In separate indictments a fed eral grand jury in the court of Judge Richard J. Hopkins alleg ed that Safeway Stores, Inc., and a group of its subsidiary organ izations and officers and the Kro ger Grocery and Bakery company and its subsidiaries and officers each conspired to restrain and u: A. nailed, uuuuu, vaui president of Safeway, and C. M. Robertson, Cincinnati, president cf Kroger, issued promptdenials. "Safeway has in no way vio lated any anti-trust laws unless being efficient and rendering a . . : x lutiduuicis iiaa wcvuuw a nuuci said Warren. siriKe wearing oei LEBANON, Jan. 20 Issues in a strike which closed the Evans . Products company plant here for five days recently will be pre , sented at a hearing before a west coast lumber commission referee ka Perttand Friday. Oregon Roads Ice-Coated. Snow Coming PORTLAND, Ore, Jan. 20(3 The weather bnrean warnev Wednesday night that all high ways 'out of Portland were a sheet of ice as a new i cold wave struck the entire state. State police headquarters here said there was a minimum "of : traffic . on the slippery routes Snow blanketed the Salem area early, this morning. It was the first of this winter to "stick." and urged motorists j to travel with j utmost caution. Chains were advised. Earlier, the weather bureau issued the following forecasts: "For Portland and vicinity, clear cold wave next 24 hoars; occasional snow "flurries until tonight ; with occasional high winds; temperature falling to 10-15 ' decrees above aero dur ins next 24 hours. "For Oregon, clear cold wave next 24 hours in northern Ore gon. Snow until tonight with hich winds, occasionally reaeh ing force. Temperatures falling- to It-15 decrees above zero west of the Cascades and to sere-15 above east of the life Extended Bill Signed Last Day; Post-War Committee i Measure Ieadied - . Gov. Earl W. Snell signed Wed nesday afternoon the bill extend ing legal existence of the state guard, enlistments in which might have expired today if the meas ure had not become law. Contrary ; to rumors that the senate amendment providing the guard's existence should finally be terminated upon proclamation by the governor at his discretion, rather than six months after the war ends as the house bill had originally provided, house concur rence In this and other senate amendments was unanimous and there was no debate. Gov. Snell's bill proposing crea tion of a 15-man committee on post-war readjustments and de velopment was ready for intro duction. I Problems of returning service men's employment and de velopment of the state's resources are to be undertaken by the com mittee. Members of the committee would j be Sen. Angus Gibson, Junction City, , chairman of the senate ; ways and means commit tee; Rep. Carl Engdahl, Pendle ton, chairman of the house ways and means committee; State Bud get Director George Aiken, State Forester IN. S. Rogers, State Di rector of Agriculture J. D. Mickle, State Director of Geology and Mineral Industries Earl K. Nixon, State Highway Engineer R. H. Baldock, a representative of the University of Oregon school of economics or business administra tion, a representative of the Ore gon State college engineering school,! and six members to be appointed by the governor. The state election division pre pared a bill to permit soldiers to vote in all elections. The federal law qualifies them to vote in con tests for. federal offices. This bill would allow them to vote for state and county offices, permitting the elections division to send each sol dier who applies a ballot on which he can vote for all offices. New Yorktown To Be Launched NEWPORT NEWS, Va., Jan. 20 (-Another Yorktown, to replace the gallant aircraft carrier sunk by the Japanese last June in the battle of Midway, will go down the ways into the James river Thursday afternoon at the New port News Shipbuilding and Dry Dock company plant. The last Yorktown had 104 days of continuous battle cruising and participated in every major naval engagement in the Pacific before she went down. Taking ' up the fight where her predecessor left off, the New Yorktown will follow the earlier ships tradition, in hav ing as sponsors Mrs. Franklin D Roosevelt. The first lady christen ed the old Yorktown here on, April 4. 1938.' State Guard Again; Midwest 32 "kJow Zero I Vjst; Plants, Canada Short of Coal; Weather Shuts Down Boeing at Seattle By Tho Associated Press Subzero cold harassed the icy midwest Wednesday. Temperatures ranged: down to 32 below zero in Roseau, Minn. , Chicagoans donned their heaviest coats, ear muffs and overshoes as the thermometer registered 13 below, the lowest of the winter and an all-time mark for the date. Twenty deaths were attributed to the weather in t h e central states, and many persons were treated for frost bite. Schools were closed in many parts of Illinois, but they re mained open in Chicago on the SAN FRANCISCO, Jan. 20 Storm warn in rs were ordered continued along the California coast from the Oregon line south to Point Sur 1 because of winds- of sale force Wednesday night and Thursday. theory that the children who live in poorly heated homes would be better off in their class rooms. Some temperatures recorded by the weather bureau were Garri son, ND, -31; Glasgow, Mont -26; Lemmon, SD, -25; Valentine, Neb., -22; La Crosse, Wis., -20; South Bend, Ind., -22; Battle Creek; Miefa and SpentJer, Iowa, 15; Rockford, 111, -13. WINNIPEG, Man, Jan. 2$ (P)-A cold wave, with tempera tures reaching the lowest of tho winter, continued across west ern Canada Wednesday. From the prairie provinces came re ports of Arctic weather. Prince Albert, in northern Sas katchewan, held the low point for the prairies 56 below during the night, it was 54 at Saskatoon, and 52 at Edmonton, equalling the Al berta capital's all-time low of January 13, 1911. The Pas, 500 miles north of here, reported 50 below and in Winni peg it was 41. In 1936, the mercury dropped to a record low of 53 in Winnipeg. EDMONTON, Alta, Jan. 20-C) A coal shortage Wednesday night (Turn to Page 2 D) Chile Breaks With Axis; Brazil Ready SANTIAGO, Chile, Jan, 2(HP) Chile severed relations with the axis powers Wednesday, and Pres ident Juan Antonio Rios told his people in a broadcast Wednesday night that it was a step toward continental solidarity and in de fense of democracy. Rios explained the rupture with Germany, Japan and Italy in a half hour address -from the gov ernment palace. ; , The Chilean, senate approved Tuesday night by a 30-to-10 vote, and Rios afterward signed the de cree to oust axis diplomats. A roundup of all axis nationals was quickly begun. Wednesday night Rios gave Chileans the full explanation of his decision, reached ; long after the original popular protest against axis attacks on Chilean shipping had subsided. (It was not known immediately whether the diplomats would re main in Chile until an exchange could be arranged or whether they would be transferred to- Argen tina, which now is tho only Amer ican nation maintaining diplomatic relations with the axis.) : Foreign Minister "Joaquin Fer nandez called in the American diplomatic corps to make the an nouncement. The Brazilian ambassador, Sam uel Souza de Leao Grade, whose ' (Turn to Page 2 II) Water Pure Now WEST SALEM, Jatu 20 City Recorder Robert E. Pattison of West Salem has ' announced that further,, tests of the city water tanks have found them pure. Resi dents may use water now without boiling it, he stated Wednesday. Russians Close In On Cities Kharkov, Rostov and . Salsk Threatened - By Soviet Noose By EDDY G1LMORE I : 9 ' MOSCOW, . Jan. 20-P)-The red army, driving deeply into the Ukraine, gained 17 miles In the sweep toward Kharkov, and farther south reached a point only 45 miles above Voroshilov grad, Donets river industrial center, a special communique announced Wednesday night The Russians now have rolled back the Germans to an area where the resilent red army itself had retreated last summer when the big nazi drive began. (The midnicht Soviet eommu nkrue heard by the Soviet Mon itor in London said the Russians had captured Mityakinskaya, only 22 air line miles east of Voroshilovcrad, a Junction on a network of railways that winds down to Rostov. Thus tho Rus sians not only were closing in on the important Nazi base of Rostov from three sides, but micht aim to sweep around it to anchor their flying columns on the sea of Azov behind It) In the Caucasus the Russians now were near Salsk, big; rail junction 100 miles below Rostov. (British military observers said the Russians, in two months had rendered ineffective a total of 89 Axis divisions, representing -the demoralization of some 1,335,000 enemy troops if they were at full divisional strength, ) - : KX . The southern, arm of the Rus sian sweep toward Kharkov cap tured Byelokurakina,. 115 miles southeast of the big industrial cen ter. A northern army is fight ing within 79 miles of the city from the east Byelokurakina was taken by Soviet troops advancing 17 miles from Novo-Pskov. Farther south another column took Byelovodsk, 45 miles above Voroshilovgrad. (Turn to Page 2 A) Hendricks Funeral Today Funeral services for R. J. Hend ricks, for many years editor and publisher and since 1928 editor emeritus of The Statesman, are to be held at 10:30 this morning from Clough-Barrisk chapel, Bish op Bruce Baxter of the Methodist church officiating. v To allow felloe-workers at The Statesman office to attend services and in tribute to the man who had been connected with the paper for a longer period, of time than had any other, Oregon Statesman offices will be closed from 10:15 to 11:15 this morning, i , Honorary pallbearers are to be Paul B. Wallace, A. N. Bush, Dr. H. H. dinger, E. T. Barnes, Ray Yocom, Charles A. S p r a g u e. George Ejitnam, Ralph Glover and Ralph Kletzing. Lowell E. Kern, Ralph C Cur tis, Arthur Edwards, Carle Ab rams, Stephen, A Stone and John (Turn to Page 2 G) Lobby Hobnobber "It will be a short session," one veteran observer r e m a r k e d. Things are so quiet for the lob byists that they're mooching off each other." No question about it, the lobby is quet almost deserted, in sharp contrast to the old days when the rotunda in the old capitol always was crowded at session time and there frequently 1 was "standing room only?, in the microscopic gal leries. ' ' On Wednesday the lobby hab itues had - dwindled to a quartet and its members demonstrated how busy ihey were not by haul ing out a flat board and starting a card game. It wasn't poker, and no chips or cash were in sight The lobbying profession isn't what it used to be. However, . complaint of ."lob bying" on the part of state of-, ficials and their "top employes; voiced in the last session, is be ing heard again.- State employes TTTlTm Cold - - hut NotrLike This Members of Undo Sam's first mountain troop unit, in training at Camp Hale, Colo for action in moun tainous country anywhere in the world under any conditions of weather or terrain, leant that' at - times they have to substitute for draft animals. Here white-clad troops step into harness to haul heavy equipment up the mountainside while carrying full packs and walking en snowshoesv Associated j'Press Telemat , u - -. i I ' j . i.' TV- " .Z-S., Jungle Troops Move Rapidly Japs Compressed on Guinea; Airmen Raid Heavily ALLIED HEADQUARTERS IN AUSTRALIA, Thursday, Jan. 21 (flAllied jungle fighters, moving bo last they ; didn't have time to count the. enemy dead, further compressed Japanese pockets around Sanananda point in New Guinea while allied bombers at tacked 10 points embracing prac- UciCl tb& w hp I-south. Pacific area' Tuesday - and Wednesday. "The whole thing is crumbling," said a spokesman at Gen. Doug las MacArthur's headquarters con cerning tho Papuan ground re sisting of the Japs. An enemy pocket northwest of the point where the Sananan da road reaches the beach still is resisting land there is heavy fichting on the other side of the point between Giruwa and Tar akena where the Japanese at tempted to break out . Two other enemy groups still are showing some fight along the inland road. One about 2500 yards inland has been split up. The bombers made their strong est call at Lae, starting new fires among supply installations. On the aerial war front, these achievements were listed: The jetty at Debo in the Aroe islands I was raided and one of three Jap float planes which at tempted to intercept probably was damaged. At Ambon in the same sector, a Jap fighter was shot down by a bomber. - Jap i localities at Lautem in Portuguese Timor were bombed and near Juijoro one of five Jap fighters trying to intercept was damaged. Along the coast of the Willau- mez . peninsula . in New Britain, three barges were strafed and these had to be beached. Also in New - Britain, tho Gasmata air drome, a much-bombed target was raided, and gun positions were hit at the 'Cape Gloucester airdrome. ' ! - In New Guinea, the Madang airdrome and wharf were bombed, (Turn to Page 2 C) Quips, "Angles And Personalities At the Capitol possess a great deal of the infor mation legislators need and are frequently consulted, so it's dif ficult to determine whether any one of; them is "lobbying" from selfish; motives or not when he appears around the legislative halls, j Chief criticism two years ago was that some of them en tered the legislative : chambers and conversed with' members while tho bouses were 1b ses sion. ; .The fnew" capitol is almost five years old, counting its age from the ' date of first occupancy, but It hasn't lost much of its newness. The public and state . employes have respected its immaculateness and-' refrained., from acts which might rnar it . Inside some of the constantly-used offices there may be signs of wear and tear, but not in j the lobby nor in the legis lative chambers, - now being util ized for; the third time. The white marble i exterior has lived up to (Turn to page 21) tfjv : o . o Ti - - - ' - ' . - - J 1 s . . . . . , ,. 5 y - i ' i V - 4 Navy to ReleaseJ Casualties Daily WASHINGTON, Jan. The . navy announced Wednes day 1 effective immediately all casualties of the navy,! marine corps and coast cuard would be announced In a daily list In stead of in periodical accumula tions as heretofore. f Tho first daily list contain Ins Che names of 14 men killed, 15 wounded and 45 missing, was made public Wednesday. ; The navy will continue to follow the policy of notifying next of kin before, makinc the names pub lic. None were of Oregon men.! Salem Nurse . ..- .... - V ' M - - ' Is Stabbed; i 2 Suspected I Two suspects in the Salem stab bing of a nurse were under sur veillance by city police early this morning as officers waited for Mrs. Dale Moon, 21, to regain con sciousness following remedial surgery, at Salem General hospital before making any arrest ; f Both men were said to answer descriptions given by Mrs. Moon 15 minutes after she had been ac costed,! threatened and stabbed in the abdomen at 9:05 p. m. as she stood waiting for a city street bus near the Center street gate lights at the General hospital, where she had been "ott special duty. ; - Mrs, Moon, Woodburn resident, declared to the investigating of ficer that she had obtained a clear view of the man who stepped out of the darkness, knife in hand, telling her he would stab her If she refused to do his will.;' She slapped - him, she said, : and - he stepped back before lunging at her with the knife. . : j iThej-wound,t between i stomach and Intestines, was straight and clean; in appearance, made : by a double-edged -knife, it was be lieved. Mrs. Moon was able to run back to the hospital,! where investiga tion i revealed that more than emergency care' would be required. Depth of the wound was not known to them, police said. f Axis Agrees,; Economic Aid ; By Thm Associated Press A Berlin radio broadcast re corded by the Associated i Press Wednesday night said that Ger many, Japan and Italy had signed an economic cooperation! pact Wednesday to utilize, "each In his own . economic sphere, their re sources for "totalitarian warfare against common enemies, and al so as the basis for permanent col laboration ."a f t e r - a victorious termination of tho war." . t The agreement to run concur rently with the 10-year military assistance', pact of September 27, 1940, was signed at Adolf Hit ler's ' headquarters - by nazi ' For eign Minister Joachim Von Rib bentrop and the Japanese ambas sador, Iliroshi Oshima, the broad cast said,; i-; , - . j An identical pact was signed In Rome by Italian . Foreign Minis ter Count Galeazzo Ciano and the Japanese charge d'affaires, Shuni chi Kase. in Salem "T! "'I German Planes Bomb London , At Least 30 Killed! - In School; City - -Has Night Alarms . LONDON, Jan. 2 0-P) German rooftop raiders : killed at least 30 school children and buried 30 to 3 more and three teacheri be yond hope of life under tons of debris in a ! swift but' relatively small-scale attack on London , at at noontime-Wednesday. It was the worst blow suffered by Lon don' schools since the blitz, attacks began, i, . ', ; Only six raiders eluded Lon don's defenses, and the school, in the heart of a residential section. was smashed into rubble. There wasn't a chance that the children and teachers buried in the ruins were alive, for they had been chattering gaily at luncheon on the first floor," but 200 rescue workers kept digging for them.- ' Only 11 i chUdren and one teacher in the building emerred alive. Sixty bodies of children from six to 14 years" of ago had beefi recovered. .. The known victims besides' the children in the one building were .10 children and six women. - - - In southern England, where the raiders also delivered destruction, one elderly man died of shock in a southeast coastal town where 40 to 60 planes appeared in i two waves ,but dropped ho bombs. Two brief ; alarms sounded in London between dark and mid night but no; planes were heard, although the guns went Into action in one suburban district in the second alarm. x After midnight the sirens sound ed for a third alarm in one Lon (Turn'to Page 2 E) ' Most Miners Vote to Work ... - f ----- ;-Mx ' i " " Again Today r WILKES-BARRE, Pa, JanT 20. - (JP) - Stomping, shouting miners launched a new . back - to - work m o ye m e n t in Pennsylvania's strike-bound h a r d coal fields Wednesday night .. Cries of "back to" work, boys" rang through union halls as near ly three thousand workers voted to comply . with President Roose velt's order -that they . end their t h r e e-w e e k-o 1 d unauthorized walkout by noon Thursday. " v Throwing parliamentary- order to the winds, the 1800 employes of the Lehigh Valley Coal com pany's " Prospect - Henry' Colliery didn't even bother to take a for mal vote. In a five-minute session they yelled unanimous approval when one worker called out: - "What do we want ,a meeting fof? Let's go back to work!",. They were the first to make such a decision since Mr. Roosevelt Is- .'(Turn to Page 2 F), Rotary Nominates CHICAGO, Jan. 20-vTJ)-Charles L Wheeler, of San Francisco was nominated Wednesday' for presi dent of Rotary International Jor 1943-44. His selection by the nom inating committee will place him in the presidency automatically on July 1 if no other nomination is received from a member club be fore April 1. 1 -. r - f , 9 Advance Hurries Rommel Allied Navies Sink 14 Axis Vessels In Three Days By ALFRED E. WALL LONDON; Jan. 20-(P)-Th Fighting Fr enc h . fwarminj northward from' equatorial Africa have joined forces with the British Eighth army closing on Tripoli, .v it was , announced Wednesday n i gh t while thu British reported sinking 14 axis vessels in the Mediterranean In the first three days of this week. ; These French troops swept up from the1 Lake Chad area over deserts and mountains, conauer- ing the Italian Fezzan, and now -are continuing their advance northward and. have established contact with the British Eighth army," a communique from Brig. Gen. Le Clerc's headquarters an nounced.. "These forces are brilliantly taking part with their British allies In the advance on Tripoli. ' They are attacking; on the. left of ; ;- the Elchth ; army mwlnc northward,"- said the war bul letin broadcast by the Fighting French at BrassavHle. The juncture was announced shortly after the British had re ported sinking 14 Axis ships In the central .Mediterranean in the first three days of this week, and as twin British columns pounding toward .Tripoli rere ; reported within 40-to 60 miles of the bomb battered capital ' of-. MussoUni's vanishing Libyan empire. The new threat from this French thrust increased the probability that Field Marshal Erwih Rom mel would fight only a delaying action at Tripoli, Instead of mak ing a final stand there. The French column had moved up under Col. Ingold, the field commander under Leclerc. Its new advance was announced by the authoritative French radio sta tion at Brazzaville, and not tho "radio Brazzaville" used as a cloak by an Axis broadcasting, station. A triumphant communiaue br the admiralty. Wednesday niht disclosed that a pack of destroyers, six British and one Greek, sank these vessels on Sunday, Monday and Tuesday nights without dam age or loss: . A 2090-ton supply ship, ap parently carrying ammunition which blew up south of . Sar dinia. Ten ships of varying rises, off Tunisia.X;" . , v A motor launch, also off Tu nisia. ' . ' K small naval vessel carrying gasoline to the Island of Lam pedusa.' Further, a British submarine chased an enemy supply ship for five hours ind sent her down off the Tunisian coast. . This, same submersible also drove ashore two small supply ships, both burning. The destruction of these ships swept Mussolini's "mare nostrum" virtually dean from the Tunisian coast to Sardinia as the Eighth army - steadily drew nearer to Tripoli. The navy has announced the destruction of 23 surface craft In the central Mediterranean since the first of-the year.1 The absence of opposition at sea was taken here to Indicate there . was little probability of the Axis attempting to evacuate 'its forces from Tripolitanla and Tunisia. Thus these would be squeezed be tween, the advancing Eighth army and. the Allied forces in Tunisia. Abroadcast of. the Morocco radio recorded here said that part of Nazi Marshal Erwin Rommel's retreating forces already Is well to the west of Tripoli and moving rapidly toward the Tunisian fron tier. - : ' 'To the northwest in Tunisia, the Axis tank forces pushed for ward seven miles into French held positions southwest of Pont du Fahs in an : apparent move to take some of the .pressure off Marshal Rommel's route of retreat Irons Tripolitanla. Gen.-Sir. Bernard LV Montgom ery's troops, advanced more than 25 miles along the coastal road to the Horns" area, 60 miles east of Tripoli, t while : a companion spearhead of the ... Eighth army swept in on Tarhuna, 40 ir.llos from Tripoli.