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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 7, 1943)
; . ..... i : . i .. . -. .... - - ...--it--1-. t ,.' i - ; - r- ; ' . .... " . . . n n Wage Tax Slice -------- . jfc - - . - ; . This Year " Hall Plans Minority - Report; Proposals Appear This Week By STEPHEN a MERGLER The Walker income tax plan with a $2,000,000 offset to 1943 ' real property taxes added was approved Saturday night by a majority of the house and sen ate conference committee of the legislature that had been meeting since Friday morning seeking a compromise program. Lone dissenting member of the : committee, Rep. John H. Hall, Portland, said he would bring in an minority report He did not at tend the final negotiating meeting, at which Sens- Dean Walker, In dependence, -and Coe A. McKen n$, Portlandj and Rep. Burt K. Snyder, Lakeview, agreed on a majority Tepprt. ' Here are the two proposals the house and senate are to receive early this week: Majority report $20,500,000 in new and' surplus income tax moneys to be allocated to offset $9,500,000 in state and elemen tary school property taxes, $4,000, 000 in school districts' special levies, $2,000,000 in county school property tax and to set aside a $5,000,000 "cushion" fund to guar antee future property -tax offsets by that amount; income taxpayers to receive a flat 30 per cent re duction in theh required pay ments on present rates in 1944, based on an estimated minimum additional surplus of $6,000,000 expected "to - exist in the income- excise tax fund. , Minority report 30 per cent cut in income taxes in both 1943 and 1944. ,! The result of the majority Idas this year would be a sav ing' of $6,069,000 on property taxes which become payable be ginning next November 15, in addition to the continued elim ination of state levies. Only the $4,000,000 school district offset is provided for 1944 under this plan. ' -,'. i The special $2,000,000 fund to offset the county school . tax this year only "would be allocated to -v the counties on the basis of equil-f ized assessed valuation, county by county. Tax experts estimated it would reduce this $10 per school census child levy by two-thirds on a statewide basis, although the aavine will actually vary anions -the counties. ." ' Rep. Hall told reporters he re mained: convinced that It was practical to grant income taxpay ers a rebate on their 1943 returns and would advocate such a reduc tion, in spite of the fact that the house of representatives had vot ed down proposals for cuts of 20 and 15 per cent, respectively. The bouse eventually approved a cut of 10 per cent in 1943 and 11.62 per cent In 1944. : The majority members of the conference -committee said they 1 were in complete agreement on their report; although Rep. Sny der and Sen. McKenna preferred a different method of computing next year's income tax reduction. Proposed by Snyder and worked Into a formula by McKenna, their preferred plan would have grant ed the small taxpayer a relative ly greater "reduction than payers In the high brackets. I The redaction under the I Walker plan, now the majority proposal, woald.be a flat 5 per eeat for each $1,000,000 of sur . pins above the $20,500,000 fund net ap to meet property tax off sets. The same redaction rate weald be applied to the set corporation excise tax, after giving the-personal property tax , exemption. ; Sen. Walker said the committee wanted to give income taxpayers - a - reduction on their 1943 returns "but thorough investigation con vinced us it was utterly imprac tical." . These four points were outlined k.- by Walker in favor of the com mittee's program, with McKenna emphasizing the fourth: "Additional property tax offset this year means (1) relief to tax payers hit twice under the -fiscal year change in 1942, relief in view of increases allowed by this legis lature in 42) minimum teachers' . salaries and (3) various county - salaries, and (4) application of the extra $2,000,000 to , reduce 'the county . 'school tax seemed , the - most practical manner of return ing part Of the income tax, sur plus this year." . ' i Sen. McKenna added that while he and Snyder were disappointed v that their formula for-computing the income tax reduction next year was not agreed upon, they . felt that the Walker plan is eminently, fair and will meet pres- . manner." If, as the committee expects, ', ; the -tax commission finds next ' July that $6,000,000 will be available for reducing income ' taxes la 1944,' taxes i paid this year and next by a - married - taaa will compare as follows ea " the gross incomes listed: $2000, , fit tax this year, $7 next; $2500, ; (Turn to Page 1 Story A) j Whi (w )) rill m n I ffi ral 1 f M - irmns? v?? i " ; . At -. - ' - - 't-' - - - - ' I , - ;;. NINETY-SECOND YEAR 1 Vv Salam. Oregoxx. Sunday Morning Marca 7. 1943 ' - ' ' I: Prlca 5c i No, 553 . .Rommel toike Eatt From MarcUli u : : : ' -- ; " " - . - - - -;-7'f . - ' ymh , r -. h -v. - ; SessioTtrSanctiions I M Impo 35 Ret uses 1 16 Moves Governor Signs Burke, Steelhammer Pleasures; Dozen Items In Few pays Legislative By RALPH Gov. Earl Snell signed, Saturday afternoon,' Burke's bill limiting the sale of fortified wines; to the state liquor Stores and agencies, and Rep. John Steelhammer's 1 bill taxing pin ball machines and mechanical phonographs for the benefit of old. age assistance. - I i i U Old-timers say George E. Chamberlain, one of oWy four men Farmer Calls Delayed Deferments Ordered By WlCEven if j Quotas Not Met WASHINGTON, March 8 -py-The war manpower commission told local draft boards Saturday night to keep jfarm workers in de ferred classifications even if the quotas for .the armed forces jcan not then be imet.; : The comhussion also issued three other ;new instructions'' de Signed to heli meetJhSarn -la-borBhortage; Jfij J 1. Any mart with" farming! ex perience who) Is now j in other work should; be classified, as farm deferred (class 2-C or $-C) if he goes back td agriculture as a; reg ular job before notified; to appear for induction.! 2. State and county war boards of the agriculture department may request: the j deferment of a nec essary farm! worker even though the worker I himself or his em ployer do not seek the deferment. The boards also may appeal from decisions of local draft boards. 3. If a draft board finds that : a farm worker is not producing enough to Justify his deferment : It arast refer his ease to a county war board and allow 30 days1 for Mas to be placed la another Job before it can; draft him. To gain draft deferment a Jfarm worker is reoJuiredto produce a minimum output fixed by formu las prepared by the agriculture department. Cases of workers; fail ing to meet these requirements heretofore have been referred to the US employment service.: The new order is designed to give lo (Turn to Page 2 Story B) WU ForPrb-Medic Training, Navy WASHINGTON, March HJPf A new list Of colleges and univer sities approved for -specialized war trainiiig Lprograms of the armed , services was 1 announced Saturday by the joint committee for the selection of non-federal educational j institutions. Fifty two institutions were ad ded to those previously approved. The others jwere approved for ad ditional types of programs. ;They Include: j j j j For basic training under army program: . j j .!'.. Oregon: jOregon State college. Washington : College 1 of Puget Sound; State college of Washington.;;-.. - ) ( j I War department medical train ing program: j " ' j ; -- j Oregon: University of Oregon Medical school r- ' - - For war department dental training program: r ' Oregon : North Pacific College of Oregon pental school. I r For navy's pre-medical train -lag program: t - - ' ; . " Oregon: Willamette aaiver slty. ! f i ' Washington: j Gonzaga univer sity. University of ! Washington, Whitman college. -- For navy department medical training program: . I , v Oregon: j University of Oregon medical school. ' J j r For navy's dental training pro- gram: .. . j - Oregon: iNorth Pacific' College of Oregon Dental schooL - Approved Still Ahead Calendar ! C. CURTIS Sen. W. E. ever reelected to the governorship in Oregon, had a system: "Decide 'em quick, before anyone can squawk." Leaving the interesting question as to whether Gov. Snell has copied a page from Chamber lain's book, it may; be observed that in answer to the complaint expected to arise as soon as it adjourns, that; the 1943 legislature has "done nothing" here are two definite accomplishments refuting in advance that accusation. There are Oregonians who will claim that if the legislature had done nothing else, passage of the Burke bill was worth the trouble and expense of holding the session. LEGISLATIVE CALENDAR Third Readinrs Monday: - In House: HB 369. SB 96, 103, 123, 142; 172, 179, 194,211, 223, 230, ?46,-253? '265," 268, 269, 271, 286, 292, 303. 181, -185, 191, 238, 241, 242, 252, 257;r 267, 297, 298, 299, In Senate: SB 272, 278, 289, 301, 307, 192; SJR 17, 18; HB 46, 65, 80, 372, 381, 401, 402, 403 404, 405, 406, 407, 408, 409,i 410, 411, 412, 414, 415, 417, 384, 355. Special order, 1C:3 a.m.: Ia Senate: Majority, minority reports on HB 218.! As a matter of fact the legisla ture has accomplished some 35 definite and rather important acts, has refused to do 18 highly signif icant things that it was asked to do, and has approximately a doz en highly important questions yet to decide in the two to six days it will remain in session this week. Unfinished business includes: Income and excise tax redaction, sales tax, occupational disease coverage, compulsory work men's compensation, commercial fishing- a e a s a a ;s regulation, granting a share! of highway fnnds to cities, closing hours and requirement of permits for for tified wine sale, educational aid to veterans, j log branding and recovery legislation and a change in the basis for elemen tary school fand distribution. What the legislature refuses to do is as important as what it does. These proposals it has rejected: One-man tax commission, consol idation of banking and corporation departments, 1 abolition of milk control, the indeterminate penal sentence, civil service for state em ployes, school; cost equalization, permanent "Icing truck" legisla tion, changes j In unemployment compensation rates, abolition of the state tithing law, "de novo" appeal of liquor commission rul ings, authorization j of wine sale "over the bar," changing compo sition of county welfare commis sions, makingj Saturday a legal school day, removing tax exemp tions, sharing liquor revenues with cities, '"variable ratio of assess ment." ..' ! Here are the things the legisla ture has accomplished In addition to- the two already cited: .3. Amended! .the 'initiated law distributing surplus income tax money to schools, so as to make it workable and beneficiaL , - 4. Authorized quarterly pay ment of income and iexcise taxes.' 5. Eliminated the last vestige of the intangibles tax. ( 6. Reduced gift taxes. s . 7. Enacted' optional community property law '-aimed! at attaining federal income tax equality with neighbor states. j 8. Provided for taxation of mu nicipal power systems. ,9. Transferred milk control to department of agriculture, . 19. Provided for appeals from mCk control decisions, v 1L Provided simpler means of acquiring, delayed birth ear-: ' Ufieates. . - (Turn to Page 2 Story CJ Leads Boys LYLE L. LEIGHTON, Scouts Choose Council Chief Youthful Wenatchee Executive Due In Two "Weeks Appointment of Lyle L- Leigh ton, 33-year-old scout executive from Wenatchee, Wash., as ex ecutive for Cascade Area : Boy Scout council covering major parts of Marion, Polk and Linn coun ties, was announced Saturday by Charles S. McElhinny, president of the council board.-. Leighton will succeed Ronald R. Ruddiman, who left last month to become assistant executive in Se attle after three years service in Cascade area. " The new executive, ; expected to arrive in Salem on March 22, served as field executive atjFar- ao. N.D.. for three years before taking the Wenatchee position in 1938. He is married and has one child, a son 1. He holds an Eagle Scout rating, has served as scout master and scout commissioner as well as executive. He is a mem ber of Rotary club and of the Presbyterian church. " President McElhinny said! the council executive board "believes it has secured an excellent young executive who will do much to build up support of and partici pation in the scouting program in Cascade area. SHS Takes Most Prizes at WU . Salem high school representa tives talked themselves into a! ma jority of the first places, tap the. Oregon high school speech contest on the Willamette university cam pus Friday and Saturdayr taking three of four individual ; cham pionships. ' . ; '' .' Grants Pass debaters, Eugene Smith and Dick Stanton, topped their fieldV while -Stanton 'also took first place in extempore speaking.'';' : "- ' Jane Huston, Salem, placed first in oratory; David Dawson, Med ford, second, and Phyllis Graham, Salem, third. , , ; ,r - i ; i Bill Burns, Pat Leary and Ad dyse Lane, aU of Salem, took first, second and third places, respect ively, in humorous interpretation, while Jean Barham, Salem, placed first in serious interpretation; Bet ty Morris, Sheridan,'- second, J and Alice Rose, Salem, third. M t John Brown, . Salem, was sec ond to Stanton fa extempore speaking, while Richard Smurth waite of Beaverton and Jim Pur dy, Salem, tied for third placer Hillsboro's debate team, com prised by LaRoy Dillon and Or ville Meyer, placed second; Med ford and Roseburg teams tied for third. j - Director of the tournament was Dr. H. E. Rahe, head of Willam ette'g department of speech; as sistant : director . was 'Barbara Hathaway, WU speech major. Oregon Tops Goal PORTLAND, Ore, March 6-iP) -David W. Eccles, state war bond administrator,; said Saturday Ore gon passed its quota for. series E war bonds in February, the sixth month in succession. Sales '. were $7,498,630, or 6 per cent over the goal. , Speech Russians Seize Gzhatsk Threat to Moscow Removed; Reds Gain Below - By-EDDIE GttLMORrT MOSCOW, March llfrhe red army stormed Gzhat ji, 100 miles "wgSof MoscowSaturday to wipe out the biggest threat to the soviet capital and one which the . Russians had been trying to remove for a year and a half. A special communique ! an nouncing the fall of the town was issued coincident with another which said the supreme soviet had made Premier Stalin marshal of the soviet union. When Gzhatsk was in German hands the Russian high command always had to consider seriously the chances of a German break through toward the capital while the red army was engaged in prodigious offensives on other fronts. Now the strong hedgehog has been removed and the Russians can heave a sigh of relief and spare troops for other operations. The next offensive goal- is Vy azma, 35 J . miles southwest J of Gihatskf Srii-then "Smolensk, 230 miles. West of Mbscow. K ., A midnight. communique re ported that the red army had killed 1069 more Germans and - captured several dozen populat ed places in the continuing sweep southwest ef . Rxhev to ward a point on the road be tween Vyazma and Smolensk. Gzhatsk was by-passed by Rus sian units on the north and south before it was stormed, this bulle tin said, and a German infantry regiment was wiped out after fierce fighting. in tne soutn tne Kussians re ported further gains west of Sevsk in an effort to cut the main Bryansk-Kiev railway which links the central and southern fronts. One unit was credited with cap turing rive localities and killing 400 Germans in an offensive car ried out "despite deep snow and a storm.' , , In the Donets basin the mid night bulletin said a battalion of enemy infantry was wiped out and 32 German tanks destroyed or damaged southwest of Voro shilovgrad, and west of Rostov red army units "consolidated themselves in newly occupied po sitions" after destroying one en emy garrison in an unidentified German strongpoint. Byrd to Speak In Seattle r SEATTLE, " March 6-P)-Rear Adm. Richard Evelyn Byrd, fam ous Antarctic ""explorer, arrived unexpectedly and unannounced in Seattle Saturday night to address the mass meeting of Boeing air craft workers called for Sunday in protest of wage increases granted by the war labor board. Admiral Byrd, who since being called to active duty has, virtual ly dropped, from the news, ex plained that he would be making his first public address since the war began. He said he was '. on aviation duty on the Pacific coast but did not explain further. ' - "Production of Flying Fortresses must not be jeopardized, but air craft workers - are entitled to a wage increase which amounts to something," Business Agent Verne Burch of the Aeronautical , Me chanic! union announced ' J a-, Fire Near Detroit Burns 700 Acres .EUGENE, March 8 -WVAfter burning since late in February, and covering .700 acres, a forest fire near the Detroit ranger area of the Willamette National For est was' extinguished this week. Forest supervisor J: R. ; Bruck art said Saturday that censorship regulations prevented an earlier announcement of the fire. He said the blaze-did not cross into forest boundaries It- damaged- only young timber. . , Liquor Rationing To Start Monday PORTLAND, Ore, March C (JPjr The Oregon' liquor control commission Saturday night or dered liquor rationing, designed to cat consumption two-thirds, to so into effect Monday. Ration cards will be Issued limiting consumers" to two aii eg. whiskey sad a pint of gta . weekly. On addition pur chasers asay buy a fifth of runt or brandy dally. Administrator L. F. Allen said liquor purchases in Jan nary and February Increased 4ft per cent aver last year, despite aa order limiting consumers to a quart a day. He blamed part of thJs.eav Washington and Idaho residents who were evading rationing to their own states by Itoekiaa up ia Oregon stores. Where PlaheslSdnk ,i . . j j l x Kaviongj :::::n:r:;!::::n!r:j ' S1.- " ' - ' lllliilllllliilllip i iltort?rl&LAUP -1 mmMlsM Fin Attack t V"C - j Eight Mort IllOn Tuesday I - yifO AKS Mps Jam Ay - iUFAttackp i - ! i y if -1 - i 'aPiiSiHiil - :3- TROBtiAMO"lS " " - This map depicts the Bismarck -sea area, where a Lae-boand convoy was completely destroyed "to a man" by planes of General Mae Arthmr's command. Associated Press Telemai, o Cruisers Among Convoy I -; i O j .'- - ha- Losses; Sotomprys Wight Sinks 2 Jan 102 Planes Shot Down in Fracas In Bismarck Sea - ALLIED HEADQUARTERS 'IN AUSTRALIA, Sunday, March 7-(jp)-Three Japanese light cruisers were: among the 22 ships lost by the enemy In the sinking , of the Bismarck sea convoy by - allied planes, the high - command ; an nounced Sunday. . ' J v "The composition of the enemy's 10 warships which guarded his 12 transports Is now reported - as three light cruisers and seven de stroyers, said the non commun ique from Gen. Douglas MacAr thur's headquarters. "In the j battle of the Bismarck sea ; which terminated yesterday (when planes blasted to the bot tom barges with . troops adrift (Turn to Pago 1 Story E) i Women Pass . Fund's Goal : V Women of Salem have- taken their, division over the top In the current Red Cross war fund cam paign - to lead' the' parade in the city,1 campaign headquarters an nounced Saturday. With $7000 al ready - collected in : residential areas only a fewreturn calls re main before the assignment has been , completed. Already the women's collections are approxi mately 135 per cent over the quota set for their division. Meanwhile, the; city's ciuota was half complete with $15,649.34 recorded out of a 431,000 goaL . Every, community . outside v of Salem yet to report has been over its quota, according to Floyd Mil ler,; general chairman . for that territory.' . -" ' . ' Jefferson," Aurora, Shaw , and Woodburn have filled their quotas and: continued -solicitations, . it was said. Silverton workers have indicated they expected to go over, their quotaalso, although a report has not yet been received at the Salem office, , , : Axis Loses 21 Tanks page i. 7 H MI By WES GALLAGHER ALLIED HEADQUARTERS (Marshal rwin Rommel's axis forces lashed out savagely at the British Eighth army at dawn Saturday in1 an offensive against Geru Sif. Berrlard Montgomery for the first time since the battle El Alamein: in Egypt . loss of 21 tanks in : After: the Ships Desir yers Navy iFdrce Raids Island Shores; Sqa Frce Grows WASHINGTON. March It-Ufi A navy task j force stabbing into the outer fhntita of the Japanese defense zone n the south Pacific bombarded shore -installations at Vili andlMuada in the Solomon islands Friday; night, the navy re ported Saturday, and sank two 1 f g e enemy destroyers! which tried to,:ihterfere. ::':h-v-f'i ,; -r': j The destroyers were aalts of a sqaadroa of . light Japanese ' surface! forces - which a; navy commaaiqae isaid "attempted to d rive off joar bombardment sT4up."f !A battle resulted. No United States! ships were JostJ ; ; j .The encounter was first surface action to develop so far north in tils', Solomons j archipelago. Mun da and Vila, which are close to gether, are , about 180 nautical miles northwest of Guadalcanal. There arc several flying fields In the Munda a - e a but darkness saved the American ships, offi cially described, as "light surface units. from air attack.: i J frhe .nayyx also disclosed . that a; single American submarine had sunk, ten Japanese cargo ships and three warships during operations iri. the westernj Pacific. Destruc tion; of these ships had been pre viously, reported but they had not been credited it a single sub marine.; -: j : t: i h ; . j t -. f : , '," - Meanwhile evidence accumulat ed that naval and air forces in tile! south Pacific and elsewhere Will be strengthened, this spring ahd summer J Secretary Knox, who announced Friday that new rec ords in ship construction Were set during Februark said in! his an nual report t to President; Roose velt, released Saturday night, that tne entire pro, ected five -ocean fleet would ibe end oflfi45i ' completed by the Today State Tourtianicnt Team Koundup (See Page 10) - r in First Smash !; V j ;. .;.; IN NORTH AFRICA, March 6- " :.J j j : ." j the early stages of the fighting. the axis army whieh Rommel had brought 2000 miles across Libya, in retreat struck back and: pressed its attack. r. 1 .-rt I , - r The 21 German tanks were knocked out without loss to the British. - J r ' i- :-i I - ! Rommel's j tanks and infantry attack was described as fin con siderable strength' and early re ports indicated that fierce; fighting was continuing. - ' j i - Apparently gambling with the. idea that he could deal Mont- ' gomery a blow similar to the . one he handed the Anglo-Amer-' lean First army two weeks ago, the naai field marshal ; set his ' forces in action across the waste lands la front of the jMareth line. f h-1- -a:i.v I He, was -aided by -the fact that the old French-built lino was Jde signedi rto so much HIT a holding position ' . but one . from' which counter-attacks could be launched: It Is apparent that Rommel was slowly being; caged Up , Into the Tunisian bridgehead between the French and the British ' Eighth armies : and decided his best chance to forestall defeat and gain time was to strike first ' ' His first blow in the north had pushed American troops! out of most of southern : Tunisia, protect ing his flank until the Americans rallied st Kasserine pass and In flicted losses so heavy he had to I retire.: ' - HI'- j I : ' " . The persistence of. Col. Gen. Jurgen Von Arnfm's attacks tn the north In the face of heavy losses now have! been explained in jthat they have had the aim of pinning down the Anglo-Ameri can forces and keeping the allied force on this side from j stabbing at Rommel's exposed flank. i The German have withdrawn from almost all the "" territory they won ( m aoathern I Tunisia sad Americaa and British troops . are onee more la the foothills of the secondary Tunisian dontal at Pfehen and Sidl Bon Zld a ! bars 7 miles airline from the German desert panzer army's main supply base at Sfax. The forces used in Saturday's sssault were undoubtedly! the same ones Rommel had used j In his southern Tunisian drive, includ ing the rebuilt German 21st pan xer division with its new; Mark VI 60-ton tanks, . the tenth panzer division probably In position (to deal with any blow aimed at div-: iding the two axis armies. , While Rommel's sttack can be construed only as a desperate military gamble j to attack one foe while . another 'powerful force is ready to pounce on him, he has much to gain if it should succeed. If a crippling! blow could be , dealt to Montgomery's Eighth ar my the axjs would gain weeks and per naps montns in the battle to maintain a foothold in Africa and delay, the allied attacks on the continent just that much longer. : The new oatbreak followed by only a few, hoars the report that American troops had eap fared .Flehon. 29 miles west of the German base ef Lafrouan, to j win. bach most of the central ' and soataera Tunisian territory they had lost. , f " In 4he north the British First army had halted and inflicted se vere losses on the German force that had jpushed seven miles be hind Sedjenane, the local attacks were reported continuing, Drawl Ships Sunk RIO DE JANEIRO, March ! 6.-GD-The 1 6075-ton freighter Ern siloide and the 3540-ton passenger ship Afonso Pens have been sunk off the east coast, bringing Bra zilian ship losses in the war to 22, the government announced Sat urday.. .! v I L