Informer Gels
Cut in US
Fraud Case
PITTSBURGH, August 12 JP)
A $130,000 settlement went today
to Harry L. Marcus, 36-yeaibld
attorney, for digging up an old
civil war "informer's suit" law and
prosecuting a group of electrical
contractors who had pleaded no
' defense to charges of "bid rig
ging" on jobs in which federal
funds were involved.
i The - government also received
$130,000 under the agreement ap
proved by the US district court
today. The defendants were the
Pittsburgh Electrical Contractors
association and 41 individual con
tractors and firms. -'; i T -' '
. The ancient law provides that
informers can sue for twice the
: amount Involved In a proved
fraudulent" contract I involving
, federal funds and receive one
. half of the award. It was testl
; fled at the contractors' trial that
their association's secretary av
i erased the bids, added a per-
rentage for profit and over
i head and then assigned the "low
bid" to a firm, with all others
; bidding higher. . ,
i. Originally - Marcus, represented
by Charles J. Margiotti, former at-
torney general of Pennsylvania,
asked for $1,500,000 but the sum
i was cut to $315,000 by a jury at
,the 61-day trial, longest on re
cord here. -'. :
j i Testimony ! covered losses Mar
cus charged occurred by pre-arranged
bids ion school, municipal
construction and other WPA pro
jects. -;. ::v '
i Marcus said after the settlement
that the two years court - fight
had about used up the award. The
case was once thrown out of court
by the circuit courts of appeals
and later sustained by the su
preme court..'
Oregon Farm
Income Due y
For Record
CORVAT.T.TS, August 12 iJPy-
Farm income in Oregon was on
the way Thursday to breaking the
all time high of approximately
$220,000,000 in 1942.
The department of agriculture
and the Oregon agricultural ex
tension service, reported the 1942
cash farm (income was almost
double the 1935-39 average. For
the first four; months of. 1943, the
iptal was almost one-fifth greater
than for the same period in 1942.
The general farm price level at
mid-July, 1943, was 194 per cent
of - the 1933-39 average, 38? per
cent higher than a year ago but
three points below mid-May, 1943
the extension, service said. !
1 Oregon farm costs were higher
( than a year ago with wages
; averaging 47 per cent more and
costs for feed and hay higher than
the national average. '
Agriculture still was the state's
major basic source of income with
lumbering second.
US Chamber Head
Predicts Advances
In Post-War Life
- LONDON, August Eric
Johnston, president of the US
chamber of commerce, who ar
rived in Britain Thursday, pre
dicted that the United . States
would embark on a period of
widespread economic development
after, the war under a system of
free enterprise
Technological advances, devel
opment of synthetics, the demand
for goods in a war ravaged world
and the technical skill of Ameri
can labor will combine to produce
post war prosperity, he told a
press conference.
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.The Japs' Jnhe Dutch East Indies and nearby; islands have a new enemy in their gnnsixhts Popeye.
the Sailor. He is a big twin-engined American Mitchell bomber used by Netherlands fliers based in
"Australia, with the brightly painted Popeye Just alongside the bombardier's position. This particular
plane has already been on many dangerous missions, bombing Japanese installations at Amboina,
Kupang'and other points. The Dutch squadron is composed of fliers Who escaped from the Indies and
a number of men trained at the hug Eoyal Netherlands flying school at Jackson, Miss. Its bombing
missions usually entail long flights ever shark-infested waters and ' deep jungles. Incidentally, the
English pronunciation b used when, discussing Popeye; no attempt at translation .Is made.;
Filipino Seamen
4 - i
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FDR Promises Filipinos Full
Freedom When Japs Licked
By D. HAROLD OLIVER
WASHINGTON, August 12 -Jf)
President Roosevelt Thursday
night promised the Filipino people
full independence from the United
States "the moment the power of
our 1 Japanese enemies is des
troyed" and said that such free
dom would come quickly.
In a recorder radio address
broadcast to the Philippines on the
occasion of . the? 45th anniversary
of American occupation of the is
lands, the president said flatly:
"I give the Filipino 'people my
word - that the republic of the
Philippines will be established the
moment the power of our Japanese
enemies is destroyed. The congress
of the United States has acted to
set up the independence of the
Philippines. The time will come
quickly when that goes into full
effect " A" ?V;;
Ten will soon be redeemed
from the Japanese yoke and you
will be assisted in the fall repair
of the : ravages caused by the
war." f f ' .
' The executives remarks were
interpreted in Philippine circles
here as countering Japanese Pre
mier Tojo's reported pledge to the
Japaneseseized islands that they
will be made an independent na
tion by the end of this year.
Joaquin M. Elizalde, Philippine
resident commissioner in Washing
ton, 'gave this meaning to the ad
dress. He also said it meant that
the islands would not have to wait
until July 4, 1946 for full freedom,
as provided by the Tydings-Mc-Duf
fie independence act, -but that
political I independence would be
"automatic when the Japs are
driven out"
Popeye. Goes to War
Fight to Win -
!
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This would require a mandatory
legislation by the American con
gress, but Elizalde saw no diffi
culty there. Present law provides
for full freedom after a : transi
tion period to prepare the island
economically to become a republic
Elizalde said Tojo's . indepen-
dence promise was being followed
up by a commission in the Phil'
ippines working on a new, consti
tution for the islands, but that it
was "hard to tell" whether the
Filipinos of this commission were
cooperating , voluntarily , with the
Japanese or at the point of guns.
-Obviously," he said, "the
president's message to the Phil-,
ipplne people is to counteract
Japanese proaganda." I -
The president told the islands
that Japan already is tasting de
feat in the southwest Pacific and
added: ' - . - -
"But that is only the beginning."
He said the "great day of your lib
eration will come, as surely as
there is a God in heaven." -
He praised the Filipinos for their
bravery at Bataan : and ! Corregi
dor and said that by resisting the
Japanese Invaders they gave final
proof that "here was a nation fit
to be respected as the equal to any
on earth, not in size of wealth, but
in the stout heart and national dig
nity which are the true measures
of a people." - .A."
That is why, he added, the Unit
ed States "in practice regards your
lawful government as having the
same status as the governments
of other independent nations. That
is why I have looked upon Presi
dent Quezon and Vice President
Osmena, not only as old; friends,
but also as trusted collaborators
V.- aj&: WW-fc
if.
Tlx OrJXSON STATESMAN. Salem.
Promised Independence
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1 ' . '
FILIPINO LIGHTING I SPIRIT, immortalized aa
Eataan, now sails tho seven seas. These photos, re
leased by the U. S. Navy, show the Eicers and men
f a Philippine merchant ship which, sine Pearl
Harbor, has carried war materials for the United
Nations through H9,tM 'miles of sab-infested waters
fat the Atlantic and Pacific.-Above, the flag ef the
Philippine Commonwealth flies beside the Stars and
Stripes; symbolizing the cooperation between the twe
nations and the fighting spirit ef the Filipino people,
20,099 of whom f ought and fell en Bataan and ether
Philippine battlefields.:
In the best United Nations tradition, Filipino officers
and men share their Australian mascot (upper left)
with a U, S. Navy gun erew, i who sail with the ship.
Filipino gunners take their torn (lower left) during
the weary 24-hour vigils when Axis submarines are
on the prowl for the ship and its precious war cargo.
Although only three ships remain ef the Philippine
.merchant fleet, motto of the 44 officers and men ef
this one is SEE YOU IN MANILA.
in our united task of destroying
our common enemies in the east
as well as in the west."
Pointing out that the Philip
pine government Is a signatory
to the united nations declara
tion with 31 other nations, that
it is represented on the Pacific
war council and in the united
nations' food conference, the
'president then said: i
'And, of course, the Philippine
government will have its rightful
place tin ; the ' conferences which
will follow the defeat of Japan."
Milk Prices
Under Fire
In 3 Cities
By the Associated Press .
Office of price, administration
(OPA) milk' prices .were under
fire in three Oregon cities ! Thurs
day night . j- .
At Klamath ' Falls, dairymen
threatened to dispose of their
herds and go out of business un
less OPA increased the price ceil
ing on butterfaf from 85 cents to
$1.00 ,a pound. Large, producers
said they were operating at a loss!
Seven ty-three cows w e r e sold
from Klamath . herds last week;
dairymen said. J ,
Bend's , milk situation still was
the center! of a controversy among
city and-OPA officials and dairy
men. .- City an . OPA . chiefs met
Wednesday night but could not
agree orv a proposed tax subsidy
pxan wmcn would aid nroducers.
OPA Price Officer Blair Stewart
said-: conferences with producers
may lead to increased, payments,
possibly on the same basis as at
The Dalles where, butterfat was
raised to 90 cents a pound with
out increasing the consumer cost
But at The Dalles, grocers ex
pressed dissatisfaction with the
plan in vogue there. They planned
a mass meeting to protest the OPA
order. Some threatened to discon
tinue the sale of inflk unless the
ceiling price for retailers is made
higher. - - . -f
Around Oregon
- Bt the Associated Pre -
Cavalry units of ; the , Oregon
state - guard will begin summer
maneuvers Sunday in the Metolius
section of central Oregon . . '.
Industrial uses for wheat and
waste lumber will be considered
Friday at a meeting of , the state
committee of the national farm
chemurgic council at Portland
? Claude ,L Sersanous, O t e g p n
salvage committee chairman, said
the second scrap metal 'drive, al
ready started In the east and mid
west probably will be scheduled
for. the Pacifie northwest also . v .
AFL .warehousemen's union offi
cials at Portland said , some 500
employes of Montgomery Ward &
Company there had been granted
pay increases by the regional war
labor board ..." v-
Portland school" authorities said
children working in food proces
sing industries and for. the forest
service w ould be permitted to
register late this year . . u Ore
gon housewives turned in-only 52
per. cent of the state's waste fats
quota during June 10 1 ,589 pound.
Mrs. Ethel Leek," state salvage
committee -women's activities
chairman, said at Portland . . .
k Umatilla - county's war -'bo n d
campaign -to -buy a Flying; For
tress bomber to be named Spirit
of Umatilla" went" over the top
with a total -of $350,000 .' . . .
Oregon, Friday Morning. August
Cook Commander
OniCaribbean
JACKSONVILLE,-FlaM August
VZ-iJPjrTht promotion of Rear Ad
miral A. B. Cook, chief of naval
and operational training for the
last 15 months, to the rank of vice
admiral and his transfer to San
Juan, Puerto Rico, as commandant
of the tenth naval district and
commander of the Caribbean sea
frontier, was announced today by
the navy department .
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fS jmr every
13. 1243
Tortilla
Factory
Wanted
' PORTLAND, Ore., August 12(P)
Food preferences of Mexican and
Jamaican farm 1 workers in the
northwest are somewhat of a pro
blem, R. T. Magleby,1 director of
the new regional labor office of
the' war food administration said
today. ':;.; ' l: F';.v .-t:ii":V i! -1 "Li
"The Mexicans ' are splendid
workers, he said, f but they don't
care a hang for vitamins and bal
anced diets. tTKeyl want tortillas.
Our Burlington, Wash, labor camp
figured out it would take 20 men
working .all day at a 50-foot stove
to produce enough of the flat cakes
to supply them with their favorite
food for 24 hours, f.
, "The;; Jamaicans s are ; interested
in no ether food but fried potato
sandwiches. They , turn 'up their
noses at food which' would- make
tha'aver age 'American's "mou th wa
ter? - 't; Uil l"s y - -4: ''
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Tax(ritrof 1
!
1
i. t
!
WASHINGTON. August 12-OP1
Arpoy and .navy, authorities" are
taking part in 'current tax studies
and , are counselling against any
increse so steep as to destroy. the
incentive for, fullest possible war
production, Secretary of the Trea
sury Morgenthau disclosed today.
, Backed, by the war "department
board, the armed services want
to make sure that existing in
centive systems under -which
workers are swelling their incomes
by putting, forth" greater efforts
are not nullified by taxation.
Thus a new factor entered, the
drafting of a program' intended to
raise an - additional 12,000,000,000
during the year beginning January
1. The treasury already has in
dicated it is studying means to
prevent inequitable tax burdens
on persons whose incomes have
not conformed ' to the '.upward
trend. , : --.
Linfield Given
Infirmary Fiind -
McMlNNVTLLE, Ore, August
12-P)-President Harry L. Billin
of Linfield college Thursday an
nounced receipt of a gift of $5000
toward construction of a new. in
firmary on the campus. He said
the donor, a New York woman,
wished her identity withheld. -
Ariny
WFVE SOLVED TWO unusual coffee problemscaused
- by the government's severe restrictions on the use of glass
for coffee packaging, and the lifting of coffee rationing.
'First: what to use for a package! This is answered by the
glassine-lined bag. Second: how to insure freshness and
flavor! Speedy delivery to your grocer, in small quanuties, j
v is now a part, of put L serviceVfor ' our ' roasting plarit' is
located' in this area.' J - - , 1 '
Here's how you can help - patriotically -,Let every
other pound you : buy," be " the wartime jpackage. ,The
price will be slightly lower than the glass jar.
Drip or Rmrjular Grind, of course!
im the vnsrl-it's
Russians Jubilantly Look
I Arid' Work Toward Victory
By WILLIAM McGAFFIN
CAIRO, Aug. 12 -F)- When I
left Russia a few days ago the
air was electric with the feeling
of victory. - --";" :
Never , have the Russians been
so buoyed up and so sure of
themselves. Some even predicted
quite seriously: It will be all
over in two months." ."
You hear no such rash prophet
cies among red army men nor
among ' more sober-minded civil
ians. The soldiers are elated over
reversing ' the tren4 of the prev
ious two summers when the Ger
mans always advanced and the
Russians ' always retreated, but
they know how tough the Ger
mans can be on the defensive. :
. Most Russians believe it will
take another year ; to defeat the
invaders. Some . of . the factors
involved are unpredictable. ; '
, 1 am convinced! "the' Russian
people never dreamed their army
and air , force would , be o strong
after .two years "of exhausting
Struggle.' I ! got' the impression
when, I 'arrived, In Moscow that
the people last May expected the
army would hold the German of
fensive successfully - but few sus
pected that it would be . capable
oSf making a devastating counter
offensive immediately. - ! j
That Was something which hap
pened only in winter. ' .The Rus
sian army,! gathered, wasn't built
for swift maneuvering on dry
summer plains- but it marvel
ously gave the :lie to, that im
pression. ' ' ' ' . " -:;-?" ' j
The", red air . force provided a
similar surprise. Moscow was preT
pared -to - withstand severe raids.
A heavy' concentration of guns
was brought into the city and an
elaborate air raid prevention sys
tem was developed. - . j
.Women' are ' vsed . extensive
ly in the. ARP army. .Dassllng
circus performers, I for example,
. spend the first part of the even
ing balancing .hefty males en
their heads (when the girls got
- equality here they get It with
vengeance). Then they go home
and spend the rest ef the night
en fire-watching daty. " f
In May, I ! and ; many others
thought Moscow would be under
going cruel, raids . by now. This
was Goering's last chance. It was
logical he would throw everything
possible at the capital. But in fact
no bombs have fallen! on Moscow
since April, 1942, although it was
only about A 150 miles - from the
front at the j nearest point easy
bombing range. That is, it would
be easy. if it-weren't for the, red;
air force, which, actually is strong
er after two years of war.
The luftwaffe at the same time
'-r "
.cbior:i vest ccm
was growing weaker, partly froni
the allied bombing . of airplane
factories, partly from the neces
sity of spreading out before the
many gates of occupied Europe
and partly from severe bombings
by the Russians.
For the first time since the
start of the war the Russians
therefore at least air parity with
the Germans along the 1500
mile front With the aid ef a
great number ef planes the red
air force forged an impenetra
ble wall about Moscow. L
Soviet-madel fighter planes such
as the Yakland "Meg" appar
ently are the equals of the best
British and American planes. The
Stormovik fighter-bomber i is an
other excellent plane which the
Germans" call "black death." "
American Airacobra fighters and
UA-20 attack bombers were used
extensively, 'with good results.
Russian heavy .bombers are effec
Uve on night raids. r
RCAF Boat
Lost Off
BC Coast :
VANCOUVER, BC, Aug. 12-iP)'
A royal Canadian air force supply'
boat carrying 15 persons and ply- '
ing in British Columbia ' coastal
waters has been missing for sev
eral days and kiespite widespread
search no trace of the. vessel has
yet been found, an official RCAF
announcement 'said tonight. ! ' '
The statement said the , search .
will be continued until the boat
is found or it is positively known
she foundered. I
- The vessel was the former fish-.
boat BC , Star. Unofficial reports
said the 87-foot boat is missing'
in Hecate, strait. . ' . , '
Next-of-kin of the 13 crewmen
and passengers have been notified.
Eight, of the missing men were
from "British Columbia and the
other seven j from other parts of
Canada. H- ; ',, ':
Prune Men to Protest
Price at McMinnville-l;
I PORTLAND, Aug. 12-F)
Prune growers of Yamhill and
adjoining counties will meet in
the McMinnville courthouse Sat
urday night to protest the OPA's
price of ! $40 per ton on green
prunes, Peter Zimmerman 1 j of
Yamhill said Friday. t'i ;
Zimmerman said the price must
be increased substantially if grow
ers are to harvest the crop un
der existing high farm labor costs.