Tho Insider Tear complete morning newspaper The Statesman, offers you pertinent com ments . en war news Of the day by Kirke Slmpiti, Washington analyst. Dimout ; Tuesday sunset, :2S p. m. YTednesJay tunrLr, S:21 a. m. Weather: Sua. max. teirp. 43, mln. '33. Son. rain .11 in. Mob. rlTer 18.4 ft. Weather data restricted by army re quest. PCUND3D 1CZ1 KHIETY-SECOND YEAH Salem. Oragoxy Tuesday Morning, February 8. 1S43 Price 5c I7o ZZZ r - IT ' - Tf : ' ' 9S 1 v.. y. I - ' X I V 1 I I I i i f IX Tlax Cuts Crged by Governor School Fund Ceiling Asked ; Legislators Agree in General By RALPH C. CURTIS Temporary reduction of in come and corporate excise taxes; a $5,000,000 ceiling on the annual distribution of sur- -- plus income tax funds to school districts, with any additional surplus earmarked for precise ly the same use in subsequent years; these were uie major rec ommendations of Gov. Earl Snell in his special message transmitted on Monday to the legislature. Grateful for the influential sup- port thus volunteered," members of the house and senate taxation. LEGISLATIVE CALENDAR - Third readings Tuesday: In House: HB 145, 146, 160, 238, 283." SB 51, 63. In Senate: SB 39, 55, 128. HB 317, 321, 324. committees were careful not to mentlon. out loud, that this was approximately the program they already had in mind. Instead, the house taxation and revenue com - mittee proceeded to report out forthwith bills designed to accom- plish two of the lesser objectives upon which its members agreed with the governor or vice versa; from intangibles, and adjustment of gift tax rates to bring them more closely into line with -the inheritance tax. A third minor recommendation, quarterly - payment of income taxes, has been approved by both houses of -the legislature though in separate bills. Since the tax committees and the governor are in virtual agreement en . fundamentals, , it ij safely . be. assumed that UJ will t the program, with only details remaining to be decided. These Include the nee essary amendments to the sur pin-to-schools law, and - the rant and application of the income and excise tax redne tlona. ' " Th, S.i ' lustrated when Sneaker William n I M. McAllister, after praising the M M.Aiiut-r governor's message as "very con- atructive and timely,- and in his I worn of , the session," went on record in opposition to a flat percentage reduction "because of the fact that in view of the hih federal taxes, both individuals and corporations in the high income i i t . . ...... oracxexs wouia get little benefit I . auraieu a su per cent reduction for lowbrackot taxpayers, a smaller deducUon to those in th hiah,r,. I . xnciaentauy McAllister did dis- - wiiiumauq way oz saymgivisers, in a drive to put into ac what the tax committees wnniHnt t firm H;.;nn. . . aay; that the governor's recom- menaauons were -sound it l wie mam in accora with tho ideas I "-vc n ciysuuiizett Our- i in the inton.iv. .t,,, I . - w.u have been conducted by the com- mittee. ..." These were the specific recom-was tnendations of Gov. Snell: "The full application of a snr . pins to - farther reduction ef taxes would be in exact accord with the purpose of the Income tax law and I earnestly reeem nsend such action. The recent expression of the people In ap proving the mitUlcd measure should be our guide In framing this legislation. . . . The Initiated measure mast of necessity be amended so as to provide the mechanics, properly integrated with ar administrative vtMC tiees, essential to its effective operation. ... "The distribution of these sur- plus fund, should definitely eflert m reduction in school district taxes and. I am convinced, thero chmiM 1 . ,. . .. " . 1 . ceumg on tne amount to be apportioned in any year the i ?L-,Lr? amount to be bv Toil detormiriMf .vi.k v x - i I vu wmui suggest 81 Uie XigUre I of $5,000,000. While the placing departure from the provisions of ucjuimc xixjm vam provisions OI I xne toitiated measure, it would In my opinion most effectively serve v the purpose of property tax duction by spreading" that reduc-f won over a period of years, in-1 .Oil 4 in n mI. v A . I wuuiue, wiwiw, wBi-wir jean when such reUef may be needed farmore than during the income-1 w peoo. . i . i DC- lieve provision should be made for impounding all surplus income tax revenue in a special fund de- 4 I 1 J!4J 1 LTici tax reduction. ... I , . l As an adjustment to compen- uiu w rtzw oiory s; i A Oft ia 1 Med :Bped. Allied Jap-Occupied Tovn Mostly Destroyed Aroe Islands Area iln Flames; Ground ; Troops Inactive By MURLIN SPENCER r . ALLIED HEADQUARTERS j IN AUSTRALIA, Tuesday, Feb. Q-jriPUAllirl hnmhon virtnnliv ' . ... . ; nave aestroyea tne Japanese- occupied Dobo in the north western Aroe islands, leaving fullv thri-ouartPrs of the town ' j ourning ruins alter an aiiacic I Monday. The Aroe islands lie in the Ara-1 fura sea between northern Aus- tralia and the western end oi New Guinea, about 500 miles north of Darwin. 1 The attack, made by Dutch j fliers in American Billy Mitchells and Australians in Hudson bomb - ers, was part of a wide sweep by Gen. Douglas MacArthur's air force which also destroyed - a shore from Buin on the island of I Bougainville in the northern Sol- omons. Allied planes also raided Jap- occupied points at Babo in Dutch New Guinea, Gasmata in New Britain, and Finschhafen and Lae I m northern New Guinea. Ground activity in the south west . Pacific war theatre was confined to general patrol ac tion In the '-Wan-Mob, area where one" patrol stf miles east T the Wm airdrome wiped nt Japanese pocket. The shte of the enemy force was not report ed. In nearby Dutch New Guinea. Jamnou nin. m.,...l. ST "raldK M"e " ' " I rT . "Uk Jeai ueu 1 Tlle communique announced L' m.su",t " Ausxra- X 1 . . lLIf 'LfTZZ Zl V lla 8 ea8t coast, survivors' were LTT " v" ZZl H JU I ""'uA ,1 1, TJ "i, Ghurchill :s into "l mZ' JJT - awuiuj inio aay MM meM FOnftrPnr Mondav With his military and nnlitinal a1- toxic north African talks wito PrcMnf n,, lul v returned Sunday. While tho countrv was left olivine . " "'ime close committee session coro- is"4 w uie prune minisxer I postponed an exnected mvirt J narl amn w; CiV "v-Vi I electrified by the immediate - -- u i parleys with military, naval and air chiefs and cabinet officers' who were said to be translating into S..ftrnJJd!; at Casablanca. Phni.!ii.:'..-:; . in all 'ma4S... . .1 we press ov I strong new demands that a second I fhTL rLi TT W5llC vision of the Marion county civfl the Germans were still staggering i Aomm 0t4 under th- .Mm.. i 5f.-- ian oef enso organization and phy j under the blows of the Russian winter offensive. I While Churchill's report to par liament on tho Casablanca talks Snw9 faves. ftAa -t-W tin. , r ., .. a v met Inonu of Turkey and British 1 Bst am.. j v j- 1 uv - mumiui sci vive . uetua : at 1 Cairo and Algiers was put aside onl tar few dy. political ob- servers expressed doubt that he ': WOU- I - ,rt,,ij isi- " - rT""! on expected new front and tho I outcome of the 4alk will, ih- heads of Rr-italn'a nrm.Vill!artt " " 1 aB m Mtern Mediterranean. nn . fii : rr " 1 1 I 011108 JLmaea Aef t T re-JTOr Oy U1JUUS ! NEW YORK, Feb. S-irTWapa-1 J .LI..! I . i msramni mppmj has suffered severe blows since Pearl Harbor, with a total of 459 iFPwese amps sent w me ooiiom of the Pacific by allied forces, a tabulation of United Nations an- nouncements revealed Monday. ; , T - r .v.-,-i5 I u wuiLwison, uie wouiauon showed only 89 announced United I . - I States naval and merchant ship losses m me raciuc area. I W I . Bombers Embattled Yanhs on Gualcanal Hold Ridge i i i i i i i i ii ' i 1 i ip i win i ,tmm " ". j i I f -1 'in i ,- ' i I 1 United States warriors are pictured here ellmbin a steep ridge ' adeptness at Alpine tactics enabled them to gain and hold the post below. UN Soundphoto. J JVfQ C11T4 iaCirC 1 1" CcliS 111 C xsLolVo Worker Draft s-y 41 noover sees Snipping As Key, Says Home V- rront r eeos Help Ir J troduced leeislation MoidaT to draft worken for war fao and farms where necessary while r sj a ti i t- . I lul"ic x-xuCm serpen noover niggesiw inn ; me , manpower could be eased by military inductions and munitions I making to shipping limitations. Hoover made his suggestion for trimming the pace of the war ef- ski 15 miles over the rugged ter fort on the basis that "time runs rain to Sumpter, where be caught inur ,avoxT "i the war. , in our favor" in the war. v ppm? ne "w. " T w quuu" llulum " 80ia: reis wiu wuuii, cum uuisj ana guns, need not be produced "fast er than can pass (through) the shipping bottleneck," : with con sideration for reserves against 1944. Declaring that one million more workers are needed to remedy "acute shortage points' In farm, metal and oQ indus tries, he said he believed suffi- cient labor could be obtained by employing trained women, im porting workers from Mexico and fnrlonghing some men from the military services. . - ' ' Hoover presented his- views be- H 8mat tudying f'uii u press conference. Senator Nye (H-MDJ and others who attended I mented that committee members ved the Hoover ar- PP guments. Meanwhile Senator Austin (R- (Turn to Page 2 Story C) Puryine Assigned TV TlistiA TTanA sawo n. n.i.k -c n. 4 . , .j.i J; sician for Willamette university, reported for active duty at state selective service J headquarters Monday as a naval lieutenant.: He I " t ICr ,r7,. v-xiiur. Kuen fa nuts- ZLS2r!& Lg. TV ni mfinVorp' le .11 , W - X- w Kegan an assignment at met an assignment at the state selecUve service office here . . 61 Monday. TTf " m . ' -m Mynn Reelected - a w aiau iUl JL U91 NEW YORK.1 Feb. ward J. Flynn, former democratic lTl2tLiebA was elected democratic leader of T . . . . . . ... ue oaiui assemDiv aistriet the I first step toward resumins his r post as head of the Bronx county I execuuve committee. ? , ; This action came a few hours after Flynn announced he would accept i reelection to the Rmn-r . . . .r I county post one of three partyi nositinna b - -- w uM, wv o I being considered as US minister to Australia. . ' I i- f r i v Town's Food Low BAKER, Ore, Feb. t-(JFh-A clrinv Vk to -Mravsi' mi4 I auavtv uia ws Wfr Ui snowbound granite, BlueJ moun- rJ?11 northwest I of here, and told Monday of fast diminishing food supplies land fear for the health .of Jnfants and The skier. G. R. Allen, said the town had been isolated since Jan uarf, 19 811(1 grocery store I in the fommnninr of 41 ;tprsnn . i ""- N le canned goods left. The own exists principally on cereals. & 1CX- Allen said he took 14 hours to i. bus. In Baker he bought what food he could carry on his back and left for Granite. Prisoner I4- V r . - f r 4. -a-J .-: . voVomW b6m Staff Sgt. Earl T. Watson of Dal' las, who was reported, hy the war department Monday as be ing among a newly listed group of American soldiers held pris oners of war in the Philippines. His mother, Mrs. Agnes Cooper, postoffke box 19. Dallas, was of flciaDy notified of her son's whereabouts a few -days ago. He v was reported missing and probably' a prisoner last May 22. He was one of the defenders of Fort Mills in Manila bay. British Ambassadors " To Confer in Cairo xrv a-o a n 1 u s n- k-m . Vl-i . n JTJTi Minister Churchill's visit to Turk- kh lesdoni lart week British Am. blorSuHu KnS- Hugess was eportederoute r 1VUV Uiftu. wx.l with Richard Sasey, British min- 1SU7 fJJL tunc UiC UllUUlC VCUai. rh. , .c. i nr V i.rtrri. aaaa-w M w.v w Supply Heavily i by means of a hand rope: Their ridge position bearing on an enemy British Troops Ready to Hit Allied Planes Busy Over Axis Ships, Fortifications -imTX)N, Feb..cWThe Brit ish : Eighth army driving hr from Libya at the heels of Marshal PAmnukl. - A 1 .... . uvw vutp. uu reached the region ol the Tunisian announced that Gen. Sir Bernard Montgomery's troops had been in contact with the enemy west of Pisida, itself 10 miles from the boraer. , action against Rommel's transport over a wide area. In the Mediterranean, y shipping remained under pun ishing attack from the British fleet and it appeared that tho battle of the straits was being won by the allies. Recapitulations from Cairo dia- closed that during the past week i enemy snips naa been sunk or so badly damaged as to be aban doned; that two others were dam aged and four more believed sunk. Montgomery rolled up his tanks and artillery just inside the Tuni sian border for a move abainst the Mareth line, which, Reuters re ported, is manned now mostly by Italians. His patrols sounded out tacked axis vehicles west jt Ben Leaving the Italians to protect j his rear, Rommel was said .-..to have re-equipped I the African corps with new weapons from CoL I Gen. Judgen Von Arnio's stores I ward the Gabes Gap, where the I to cut their way to the sea. Police Seek Jail Escapee ncvnmt s-mnr w.i. . I r""" ...T who escaped from the Clackamas .n u i I nigni wr virgn jj. jueyers, 12, from the Clackamas jtvi.. . j Vlv.i j I vvuuj . joua - jnvuuai ssll vorar : uireXJUr I uiii . auu iuuuu ..1 .1 ! MM uvy sneriu in a ceil. Tho deputy, AI Scheer. said Meyers, who was booked as a -T j . w I hltweeksa na here last week, was a parolee from the California state prison at Fol- som. -' Scheer said Meyers held him up when he took breakfast to his cell. How the gun was obtained was undetermined. Hawaii Military Rule To Be Modified Soon WOTMOT TTTTT VK RiTVH.T?I I fixation of th . mnitarv ml In I tt im TtsursiTan l. fcland 1 sine ths Jaw attack of DMmber I 7. 1941, and the return to civil authority In 30 days of 18 func- tions of government were" an- j nounced Monday by Lt Gen. I Delos C. .Emmons, military gover-1 nor, and territorial Governor In-1 gram Stainback. - ' ... MfTOPill 717)1 ij-ju. vjiA j Axis -4-j ---- - - .' - - at Ship and U-Boat I m oases named; Lorient Blazes Evacuation of Frencn Port Ordered ; ' Yank Planes Hit Italy LONDON, Tuesday, Feb. 9 (-Heeding ." demands that the U-boat menace be beaten,4 the ! RAT , was .reported early.,Tuesr day to have blasted the big Danish shipyards at Copen hagen after .wreaking; such de vastation at the Lorient sub- marine base In France that the German radio said the Lorient I district . had been ordered evac uated. While German i radios went off j the air Monday night a sign that the RAF was paying a visit to the continent explosions heard on the Swedish side of the Skag- gerak late Monday night indi cated that Copenhagen, home of the world's largest diesel engine works, was given three doses of RAF terror. i The Burmeinster and Wain shipyards at Copenhagen were at tacked for the first time in this war January 27. . The raid on Lorient was one of a series ef devastating blow by 17 S a n d British bombers against key axis bases in Italy, Germany, and France Sunday and Sunday night, and fighter planes - sped hat k to Franco Monday : afternoon In a con tinuation of the. huge, sky of tenure. , , , am-a tLyL.. Italian port, in flames with a pow - .tfsrV hiHHh ,m. ,j , .aLZ,, Cagliari in Sardinia. British bomb- - than fn)lnr SK .1 olanejI werB lost m JihoRe I ... i Iuptrrauuna. : t v . Tm K T-ifc ifff, bombers roared lover Lorient, Bay of Biscay U-boat base, and left the target area "one man of flames" with "their two-ton block buster bombs.' f It was the 65th raid of the war on Lorient, and, London observers figured there was little left of the Rar nf Risray nort first French j town to be designated in its en- j tirety as a target of the RAF. The air ministry news service said Lorient was raided by two waves of bombers and that smoke Xrom the ha go fires (Turn to Page 2 Story A) I: IT J T Uaco j JUCllU"JLA?clot3 tO luilllia gO --"O J-s VfCIS JLfOOSl W A S H I N GTON, Feb. 8 -VP) Sentiment for increased lend-lease Monday as the house foreign - of War Stimson and Shipping Ad- ministrator Emory S. Land stress the need for continuing the mu- tuaL aid agreements for another year, An imnassioned clea br Ren. Curlev CD-Mass) for steoDinx ud I shipments of weapons to Chinese fjffhtin fore won. vigorous an-1 Sh, . ri, nr h, rTT'iVZ" tZ. everju iOIC1" everal members of the foreign af fain committee. I The former Bav State povernor I . " r.V-i 7 v.L. . - -V . . r announcea ,u ne naa uicu ii resolution wmcn wouia earmark w P ena-ess money for fThina . a ktjn which he aaid I ? n th livoa of mnr thai 00.000 I Americans. ' i , ; - . I UToanwhilo Ktimann eYnrented before the house committee his personal conviction that thia na- tion , could not and should not seek a postwar fdollars and cents" settlement of International debts arising from . the lend-lease pro- - !,.' ." ' It - 1W Tjsnd nmu Out sltvlnnira I that Amrlran-enntrolTid vmsse!. I 1 4 vr mHinf fWnhof 9t I 1042. had made1 1745 saHinpa load- ed with lend-lease material 1375 1 for Britain, 304 for Russia and I 68 for China. S ' ? ! v I Unortunately,,, he said, iot every vessel that sailed arrived I at her destination,-but by far the I largest portion ox them 010." Shoes Sell Again; " Restraint Asked WASHINGTON, Feb. 8 -yip) Shees go back oat sale again Tuesday, nnder a rationing program, but OFA Chief Pren tiss M. Brown asked Monday night that people refrain from buying shoes until they actually need them. ' v The ration program, announ ced by the White House Sunday fat the ' name of Economic Di - rector James F. Byrnes and without advance notice, allows three pairs of shoes a year a person.,.;--, 'The order ordering the ra tioning also put a - one-way freese on sales, allowing them to go back on sale Tuesday morning. . .': '' '.. ,-'- Brown, in new statement Monday night, urged people not to bay needlessly. He estimated that there are about St.aoe.OOf pairs of shoes lying Idle In clos ;. ets or being worn only occasion ally and asked the public to "get the maxlmnm wear from the shoes yon now have.' OPAtoSet Milk IVIaximum to Farmers "Slated ; Committee Discusses Here WASHINGTON. Feb. S.-VPt-A nation-wide ceiling on the prices paid to farmers for ; fluid milk will be issued in the near future, the office of price administration announcd Monday night - In general, 'the order will pro vide that no distributor of fluid milk may pay more to producers for his supplies than the highest price be paid for milk delivered in January this year. The regulation will be tempor aryj to be replaced within 60 days 1 b,.a permanent regulation n milk prices. Celling over prices of fluid I . " " w J,CVCU'' riSCS UT UlC COS I OI WG DU I uc ol this essential food." I The announcement said OPA, I m an effort to lower farmers' cost I . . . . . OI needing dairy cows and other iivestock' would issue a Compan- "er m p"cea 01 al" """J"' Oregon X Washington by 4 to $8 a ton. Twin prospects of an actual milk famine in Oregon and of a serious decline In the quality of milk sold to the public, un less the office of price admin istration lifts tho ceiling price in , recognition of production costs, were emphasised by speakers at a hearing before the senate agrieultare commit tee and the hoase food and dai ry products committee of the Oregon legislature Monday afternoon. - There was unanimous support at the hearing for a senate Joint memorial to the president and congress, Introduced by Sen. Merle Chessman and others, as serting that "price fixing when applied to milk must begin with (Turn to Page 2 Story E) Spprr1iT sH lOflfl rwv ' - npv JLlXeHt JLIrOPSo . JT. 7 Uitch surges threat of a second Willamette river flood this year and with it tne highest water recorded In S7 subsided Monday. Th. main rive rin w " "A - " V. , "ZL" ""I n Monday from d Sunday night. The rise re- suited In flooding arafn of W -.rd. Bnd .m nt w r,.M ' :r " ,r J.. V .7: " " . i .1 1 - Tho Santiam river also t 17 three feet above flood stare. Sun- uay, v " A one-day rainfall of 2.09 Inches m ialem ana meiung snOWS aDOV I .-.A 11 JSAt A I At- a "r1,0tr,r.Uilr, . wlUiiZ1 "" ? bankl' many plac 'f S"?' ,E"eer ?avij "f"- Several bridges were damged to ! """f "tent The exceptionany heavy rato An -J Ml A . w uowlea any OUCr Ume m many years, tne engineer re- POTted, School Doard BleetS Details of the next rationing registrations to be carried on through the schools may be pre- sen ted at tonight's meeting of the Salem school board, Supt Frank IB. Bennett said Monday. Ceiling Jmii Kharkov, Rosiov Encirclement Works Again; Qty Held By Nazis Since Ml By EDDY GILMORE , - MOSCOW, Tuesday, ' Feb. 0 (rT)-Sweeping westward with unprecedented speed, ; the red army has recaptured the pivotal city of Kursk, a major bastion in the nazies 1941-42 winter defense line, has fanned out over a tremendous area and is threatening vital objectives both to the. northwest and south. " Kursk was one of the bizeest German bases in all Russia, and the red army in its offensive last winter, although able to push to the immediate area, failed to take it then, and it remained in German hands to . become an ' important springboard for the nazi 1942 spring and summer onslaught. Now. however, the triumphant Soviet army toppled the city quickly. MajV Gen. Chernyakov sky led the occupation, a special communique announced Monday night, making the advance of 24 miles from Zolotukhino and other towns north and west of the city. With the fall of this strong point, more of the same kind of operations may be expected, and Kharkov and Rostov both are now in Imminent dancer and -appear to be under threat of encirclement a maneuver the Germans dreadfully fear after their debacle at Stalingrad cans- ' ed by these Russian tactics. " Pressure was Increased V an other of the -key Nazi defenses Rostov, gateway to the Caucasus, where the Russians are besieging the city from the south and an other column Is driving down from the north. , . The capture of Kursk Imperilled the entire German defensive le in Russia. ; The railroad city had been fe German hands since November 11, 1941, falling to the nazis only 4 months after they launched their drive into Russia. Kursk was occupied after Ma violent attack" assisted by "an En circling movement from the north- west," said the special communique as recorded here by the Soviet t Monitor. ' The announcement came as a surprise, for previous Russian communiques1 had not indica- . ted that Kursk was under di rect attack. It had been out flanked with tho capture ef Fatesh, 35 miles to the north west, announced Sunday, and other soviet columns had been moving up from tho . southeast " and east, and down from the north. Kursk ranked with Orel, Bry ansk, and Kharkov and Rostov as pivots of the German 1941-42 winter line.- The communique also announ ced the fall of Korocha, northeast of Belgorod, and east of the Kursk-Kharkov line. It freed more soviet forces for an attack on Kharkov, 125 miles to the south. Soviet spearpoints aimed at Kharkov already stand within, 65 miles to tho northeast, and 43 miles to the southeast Rostov on the high north bank of the Don was dominated by masses of Russian artillery on tho south short of the 1400-foot river while another Red army was re ported striking swiftly south from the Donets toward -the Sea of Azov threatening a quarter mil lion or more Germans with an other "Stalingrad death trap.1 The Russians declared they had beaten back counter -at tacking Germans trying to re- . gala lost positions south of Ros tov, mowing them down with powerful mortar fire. One frontline dlspatoh suggested that the Russians had given the German garrison inside the an cient city some kind of ulti matum. The Don at Rostov is covered with 50 to 70 centimeters (19 to 27 inches) of ice, Tass reported. Russian artillery already was reported lobbing shells across the Don into German positions in Rostov. (The British radio carried the unconfirmed report that the Rus sians "are now fighting in the suburbs of Rostov." Similar re Next ports have come from Stockholm for two days.) . ' - .