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Buy War Bonds
Keep 'Em Flying
54th Year, No. 251 .."eXToS
Salem, Oregon
B Wednesdt??Ocrober21, 1942
Price Five Cents
myts
oes
u m -m 11
Says A
ueaciy hot poo w
No Further Tax
Increases Until
Next Session
President to Sign
Biggest Revenue
Bill Before Midnight
Washington, Oct. 21 WV-Congressional
leaders turned an un
official but emphatic thumbs
down today on any further ma
jor tax legislation until after the
first of the year.
With the biggest of all rev
enue bills on President Roose
velt's desk for his signature to
day, after Its final approval by
both houses yesterday, chairmen
of the two tax-framing commit
tees let it be known that they
and their aides felt they had
done enough for a while.
Chairman George (D., Ga.),
of the senate finance committee
told reporters that while Secre-.
tary of the Treasury Morgen
thau might carry out his an
nounced intention of requesting
$6,000,000,000 more in direct
revenue, he, George, thought
nothing concrete would be done
about it by congress until after-
January 1.-
Moreover, George made it
plain that he believed the tax
load contained In the new bill
already approached the maxi
mum. - -
"Of course," George said, "we
are going to have to go into the
question of compulsory savings
to help in fih'arieihg'the war."'lt
may be . that. Mr. Morgenthau
will bring back from London
some ideas of what the British
have accomplished in obtaining
such forced loans and they may
be useful to us."
Major Provisions
J President Roosevelt told his
press conference yesterday that
he would sign the new measure
before midnight tonight, thus
breathing life into the second of
two pieces of legislation he told
congress on September 7 he must
have quickly to prevent furth
er increases In the cost of liv
ing. The first of these, which
congress gave him speedily, was
firmer control over prices, wages
and salaries.'
As the tax measure stands, it
contained these major provisions:
A 5 per cent victory tax on
individual income over $12 a
week, with post-war credits. This
I was combined with stiff increases
Pin the normal and surtax rates
on net income and a broadening
of the base of the income tax
by a cut in exemptions.
A 9 percentage point increase
in corporation taxes on normal
and surtax income and an eleva
tion of the sliding scale of excess
profits to a flat 90 per cent rate
Battle Raging
In Yugoslavia
- London, Oct. 21 (U.R) Private
. advices from the headquarters of
Gen. Draja Mikhaliovich, Jugo
slav guerrilla leader, reported to.
day that a large scale battle was
raging in southern Bosnia be
tween his Chetnik forces and
axis troops.
The reports indicated the bat
tle was one of the biggest yet
waged In Yugoslavia.
First reports said the towns
of Kupres and Foca on the south
bank of the Drina river had been
heavily bombarded by artillery
irom Dom sides and that the
towns had changed hands.
At the same time, private ad
vices revealed that one of Mik-
hailovich's best officers. Mai.
VJadimir Todorvoich, had been
killed by an Independent band
of "foreign" guerrillas which in
filtrated into Yugoslavia and op
posed both Mikhailovich and the
axis forces.
Losses were reported heavy on
joth sides in the battle of Kupres
nd Foca.
Mikhailovich, reports showed,
suffered casualties estimated be
tween 600 and 900.
Field Marshal Jan C. Smuts,
prime minister of South Af
rica, who told the British
parliament that a great al
lied offensive looms.
Quake Rocks
Los Angeles
Los Angeles, Oct. 21 (U.R) A
moderate to strong earthquake
was felt in southern California
today, and reports indicated it
was most severe in the Imperial
valley near the Mexican border.
Taller buildings in Los Angeles
and San Diego swayed to the
east, and west with the motion
of the tremblor, which lasted
about 30 seconds in Los An
geles and approximately three
minutes in El Centro, Imperial
valley city.
The seismological laboratory
at California Institute of Tech
nology in Pasadena reported the
quake "was a good sized one at
some distance.",' Attendants, said
it was impossible immediately
to locate the epicenter. .
Reports from areas in which
the quake was most severe in
dicated little if any damage had
been done. Plaster was cracked
and knocked from the ceiling of
some buildings at 1 Centro,
In Brawley, 10 miles to the north
of El Centro, the motion was des
cribed as vertical. No damage
was reported in that city.
Virtually every community in
southern California, from down
town Los Angeles to the Mexi
can border, reported feeling the
quake in varying degrees.
Red Star Says
America Ready
Moscow, Oct. 21 VP) Red Star,
official organ of the soviet army.
asserted today that the United
States is ready now in men and
equipment to open active mili
tary operations.
(The Russian press' has ex
pressed the view with increasing
frequency recently that Russia's
allies have the strength to un
dertake second front operations
at once to relieve German pres
sure on the soviet forces.)
"Successful fulfillment of war
industry problems, growth of the
army and airforce and acceler
ated naval . construction create
all the necessary conditions for
active operations by the United
States," Red Star said.
"They have enough men and
machines. As to the training and
operative ability of the army,
this can be determined only in
armed struggle."
Crisis in France
Over Deportations
Bern, Switzerland, Oct. 21 VP) All Serbia was reported under
martial law today as a tide of unrest and uncertainty continued
to sweep occupied Europe from Norway to France and the
Balkans. Private advices from:
France pictured that unhappy
land as entering upon her most
critical period since the 1940 ar
mistice. With 11 days remaining
to chief of government Pierre
Laval before he is expected to
try compulsion to meet Adolf
Hitler's demands for French
workers.
Martial law was decreed by
the puppet Serbian government
at Belgrade, said a Budapest dis
patch to the Basler Nachrichten.
after the nazl military command
er in Serbia, Gen. Bader, an
nounced numerous arrests had
Allied Airmen
Rule the Skies
On Pacific Front
Bombing of Enemy
Troops and Bases
Continues in Solomons
By John H. Wiggins
Washington, Oct. 21 VP) Al
lied domination of the skies in
the vast Pacific battle front ap
peared growing mightier today
as American bombers slugged
Japanese invasion bases from
the Aleutians to the Solomons.
The fury of the allied bomb
ing of enemy troops and supply
concentrations in the Solomons
seemed thus far to have stalled,
at least temporarily, the full
force of a Japanese thrust to re
take the American-held Guad
alcanal airbase and win control
of the Southwest Pacific.
Airdrome Bombed .
While a large force of Jap
anese warships and auxiliary
vessel in the Solomons and re
inforced enemy troops on north
western Guadalcanal still held
an expected attack in leash,
United States bombers dropped
explosives on the embattled is
land's invaders on October 18
and 19, and started fires at the
Japanese Rekata bay base on
Santa Isabel island, 150 miles
to the northwest.
At the same time, Gen. Doug
las MacArthur's Australian com
mand reported J.tst night, allied'-bombers
werfei believed to
have inflicted extensive damage
on the Japanese airdrome and
shipping at Buin, Bougainville
island, about 315 miles north
west of Guadalcanal.
Offensive Expected
All allied planes, meeting no
attempts at interception, re
turned safely from the Buin
night raid, the communique said.
The navy's report yesterday of
the latest American assaults in
the Solomons and Aleutians
made no mention of any enemy
planes rising to counterattack.
Possibility that the South
western Pacific skies may soon
become a horn it's nest of al
lied planes was seen yesterday
in an assertion by Secretary of
the Navy Knox that the num
ber of navy land-based planes
was steadily increasing."
In the North Pacific, the navy
announced that on Oct. 18 the
army's heavy four-motored Lib
erator Domoers smashed again
at the island of Kiska, the last
of three Aleutian bases once
held by the Japanese.
Bomb Explosion in
Gestapo Offices
London, Oct. 21 VP) Several
Germans were killed by a bomb
explosion in Gestapo headquar
ters at Cherleroi, Belgium, Bel
gian sources in London said to
day.
Another bomb exploded on the
same day in a German police
headquarters at Mareinelle, the
Belgians said, but they had no
report on casualties.
A 9 p.m. curfew has been im
posed on the area, it was said.
been made because insurgents
had attempted to organize a re
volt against occupation authori
ties. The Basel socialist newspaper,
Arbeiter Zeitung, recently re
ported that the gestapo had put
to death 500 to 600 Serbs who
plotted a revolt.
Swedish newspaper correspon
dents reported from Norway,
according to the Swiss Telegraph
agency, that Vidkun Quisling had
ordered 25 more clergymen to
leave their homes as a result of
(Concluded on paie 10, column 7)
Marines Move Up to Attack Japs on Guadalcanal United States marines move through
the tropical jungle of Guadalcanal island to get into position to attack Jap forces en
trenched on the Matanikou river. This picture was radioed from Honolulu to San Fran
cisco. (Associated Press photo.)
Yank Bombers
Raid Axis Bases
Cairo, Oct. 21 (IP) American medium bombers participated
yesterday, in the broad allied attacks on, airfields, shippihg;fcrid
axis, arjies in Npth jAfriCaj' Eleven ;enemyplaries jwsre.downed,
Sweeping deep into enemy territory, the American task force
scored direct hits on grounded planes, protective revetments and
tent areas of the desert .war
Kiska Strafed
By Bombers
Alaska Defense Command
Headquarters, Oct. 21 VP) The
latest group of Liberator bomb
ers which are daily attacking
Japanese attempting to reinforce
their garrison at Kiska reported
enemy positions unchanged on
the island, the army announced
today. '
The group, one of several con
ducting the army's raid-a-day
tests against the invaders, was
led by Capt. Lynn R. Moore. The
flight noted hits in the camp area
and one especially heavy explo
sion which may have been a
gasoline dump. .
The Moore flight, like all since
Oct. 3, met no aerial opposition
while dropping its "; 12 tons of
bombs on the Japanese.
The latest attack was (concen
trated on Trout Lagoon ancfthe
main Kiska camp. A" number of
cargo ships already are beached
in the lagoon.
The Japanese positions at Ger
trude Cove where the reinforce
ment attempts are being concen
trated are also unchanged, the
fliers reported.
The raiders met continuing
anti-aircraft fire, but,most of the
Japanese scurried for cover and
froze to the ground when they
saw the American planes.
Strafing by raiders early this
month taught them to find pro
tection when the U.S. army fliers
the pilots believe.
The Japanese are even using
bomb craters for shelters, some
times putting up tents in such
improvised protection.
4 Axis Ships Sunk
In Mediterranean
London, Oct. 21 (P) The sink
ing of four axis supply ships in
the Mediterranean by British
submarines was announced today
m an admiralty communique.
Two of the sinkings were
credited to one submarine. They
were a small axis supply vessel
which went down off the Italian
coast and a medium size ship
which burst into flame and sank
after a torpedo hit amidships.
The other two were a large
supply ship, hit three times from
close range and sunk within two
minutes despite extremely bad
weather and destroyer protec
tion, and a smaller ship sunk off
the Libyan coast. '
theatre.
All the American planes re
turned safely, although a British
communique said 12 aircraft
were lost. The operations in
cluded long-range fighter as
saults on transport moving along
the coastal road.
Although ' the Americans lost
no planes, they reported that
they demolished by direct hits
three enemy fighters about to
take off from one airfield, des
troyed a bomber on another
landing ground and shot down
two other fighters from a group
of 22 in dogfights.
At the same time torpedo
planes and bombers were cre
dited with hits upon a tanker
and two other vessels in a raid
Monday night on enemy shipping
near Lampedusa, Italy.
"Enemy air attacks on Malta
were on a reduced scale," the
headquarters communique an
nounced. "Only fighter-bombers
and fighters were employed
in a series of abortive raids."
At least two of the pilots of
the 12 missing planes were re
ported safe..
5 Years' Prison
Terms for Bundisfs
New York, Oct. 21 (P) Twen
ty-four former German Ameri
can Bund leaders, including Ger
hard Wilhelm Kunze, national
leader, were sentenced today to
five years in prison each for con
spiring to counsel bund members
to evade the draft law.
Federal Judge Alfred D.
Barksdale said that in his-opinion
all of the defendants were
guilty of "far worse than any
tactical violation of the selec
tive service law" and said that
he would not impose fines be
cause that might have the effect
of causing their families to lose
their homes.
Under the conviction, each de
fendant could have been subject
to a $10,000 fine.
Temporary Court
Order Extended
Portland, Ore., Oct. 21 U
The OPA had another 10-day ex
tension of temporary restrain
ing orders against four Oregon
meat packers today.
The packers, accused by the
OPA of "upgrading" beef and
veal, reportedly were about to
reach a settlement whereby gov
ernment inspectors , grade the
meats.
Trial of Hess
Awaits War End
London, Oct. 21 (U.R) Foreign
Secretary Anthony Eden told the
house of common; today, that the-
government, .presently treated
Rudolf Hess, former No. 3 nazi,
as a prisoner of war but saw no
reason why he shouldn't be dealt
with like other war criminals,
after the war. -
He said no request for Hess'
immediate trial had been receiv
ed from Russia, where agitation
that he be tried without waiting
for the end of the war was grow
ing. An official Russian state
ment to' the refugee governments
in London had suggested an im
mediate trial, and the newspa
pers Pravda and Red Star echo
ed the demand yesterday.
"In our judgment," Eden said,
"there's no cause to apply to Hess
treatment other than is being
elaborated by the united nations
for dealing with war criminals.
Hess is treated as a prisoner of
war. There never has been or
can be a question of treating
him as an envoy or giving him
any form of diplomatic privileg
ed status."
Russian newspaper editorials
had asked sarcastically whether
Hess was "a war prisoner or
an envoy plenipotentiary." The
allied governments are planning
an international tribunal to try
war criminals after the war.
Gihralter Raid Warning
Gibraltar, Oct. 21 VP) An air
raid warning sounded in this
British stronghold last night, but
several Italian bombers which
flew over the Gibraltar area
dropped all their bombs in ad
jacent Spanish territory.
Only Essential War
Projects Get Priorities
Washington, Oct. 21 VP) Chairman Donald M. Nelson of the
war production board announced today he would limit government
construction to projects "directly essential" to the war effort.
Nelson notified the heads of
eight governmental agencies that!
u- , t -! t i I
lie iitiu Kivcii msirutuons xo re-
voke priority assistance to a
large part of non-military con
struction for the federal govern
ment, and said a review now was
under way of all military pro
jects of the army, navy and
maritime commission, with the
same end in view.
"As things now stand," Nelson
said, "facilities and construction.
Including many projects hot re
lated to the war effort, programs
for 1943, with the carryover of
uncompleted 1942 projects will
absorb between one-fifth and
one-fourth of the total war ef
fort." He added that the aggregate
demand for these projects for
Russians Drive
Nazis Back in
Drenching Rain
Red Army Seizes Initia
tive South of Stalingrad;
All Attacks Smashed
By Henry Shapiro
Moscow, Oct. 21 (U.ft Front
dispatches said today that the
Russians seized the initiative
south of Stalingrad and drove
the Germans back across sev
eral miles of open country amid
drenching rains that bogged the
enemy's communications.
(The German high command
admitted significantly that Mar
shal Semyon Timoshenko has
sent fresh reinforcements into
his drive from the north between
the Don and the Volga rivers.
Radio Berlin had reported yes
terday that there were prepara
tions for a big attack northwest
of Stalingrad.)
Battle at Steppes
Some of the biggest battles of
the campaign in the Stalingrad
area were being fought in the
barren and unfortified steppes
for possession of isolated water
wells, the main objective of both
sides. Domination of a single
well often moans control of an
area of hundreds of square miles,
dispatches said. The wells are
a necessity for the opposing
tank, cavalry and motor patrols.
South of Stalingrad, an enemy
-village manned by a Rumanian
garrison fell easily before the
Russians, experienced in steppe
fighting.
In Stalingrad itself, the Ger
mans were throwing 30,000
storm troops and 60 tanks into
a narrow sector in a frantic ef
fort to take the city before win
ter settled. The red army was
smashing every attack,
Food Situation Severe
The communist newspaper
Pravda reported that the food
situation among the German as
sault troops had become severe
while heavy rains that had fall
en unabated for three days
threatened to bog down their
drive.
The conclusion was Implicit
though not stated in the com
munist party organ Pravda's
documented description of hun
ger among the German hordes at
Stalingrad, that the nazis' 1,900-
mile-long communications,
which had for weeks supported
one of the greatest battles in
history were at last faltering.
There also was a possibility
that the heroic Russian resist
ance had forced such an expen
diture of munitions that the Ger
mans were now being compelled
to transport more munitions and
less food for their troops.
Loricnt Bombed by RAF
London, Oct. 21 VP) A Vichy
broadcast heard by Routers said
RAF planes bombed port instal
lations at Loricnt today, killing
100 persons and injuring 350.
Loricnt is on the south coast of
France's Brittany peninsula.
materials, labor, transportation,
i
manpower ann iccnnicai ana en-
gmccring services, is so great
as to not only jeopardize the var
ious military and essential civil
ian programs in general, but to
force the most essential war pro
jects dangerously behind sched
ule." Nelson was represented as
having told legislators that the
nation's production schedule for
1943 was becoming too big to be
met with the materials that were
likely to be availaablc.
It was his intention, he was
quoted as saying, to see to it that
the vital parts of the war mach
ine the tanks, planes, guns, ship
and other equipment came al-
ong as fast as humanly possible,
South African
Urges Second
Front on Nazis
German Army Being Bled
To Death by Russians;
Time Near to Strike
London, Oct. 21 VP) In a
broadcast address, breaking par
liament's traditional ban of the
radio from its chambers, Field
Marshal Jan Christian Smuts,
prime minister of the Union of
South Africa, told a joint meet
ing of the house of commons and
lords today that the allies have
arrived at "the offensive phase
of the war."
The German army Is "bleeding
to death" in Russia, and "the
stage is set for the last, the of
fensive phase of the war for the
united nations," Smuts declar
ed.
He said the "appalling blood
lotting which is necessary for
Hitler's ultimate defeat is being
administered by the Russians."
Although he said "they alone
can do it," he urged "whatever
help ... we can give to Russia
. . . in the fullest measure and
with the utmost speed."
Russia, Smuts said, Is "bear
ing more than her share of the
common burden" and he urged
that "whatever help in whatever
form' we can give to Russia to
sustain her in her colossal ef
fort should be given In fullest
measure and with "utmost speed;"
Defense Phase Ended t
In reference to the second
front, Smuts said the defense
phase of the war for the unit
ed nations has ended.
"The final alignments both of
the allies and of our enemies
have been made," he said. "Re
sources have been developed
and mobilized on a very large
scale. Ours are still on the in
crease, those of the enemy are
on the decline. Our manpower
is still growing, that of the ene
my is getting depleted, while he
makes ever heavier drafts on
his suffering vassal peoples.
"The spectre of want, hunger
and starvation are beginning to
stalk through the subject coun
tries and the spirit of unrest is
heaving and rising. The explo
sive limits of endurance are near
ing. We are approaching the
point when both on the war
fronts and on the home fronts
in the enemy countries, the sit
uation is ripening for far-reaching
developments." '
(Concluded on page 10, column T)
Big Naval Bill
Back in House
Washington, Oct. 21 VP) The
house completed its work today
on a supplemental appropriation
bill authorizing expenditure of
another $15,000,000,000 to build
a greater navy, and senate ap
proval later in the week was ex
pected to send the measure to
the white house.
Washington, Oct. 21 VP) A
bill authorizing the expenditure
of $15,841,106,997 for war pur
poses, $15,099,000,000 of it by
the navy, was returned to the
house today for action on senate
amendments.
This supplemental appropria
tion bill came back with $104,
240,266 added by the senate to
the amount passed by the house
on Oct. 8, including $100,000,000
for war housing and $1,000,000
for a farm labor survey by the
war manpower commission.
As passed by the senate, the
bill appropriates $6,341,196,887
outright, including $5,599,000,-
000 for the maintenance and ex
pansion of the navy. In addi
tion, the navy would be authoriz
ed to begin letting contracts on
$9,500,000,000 construction
program aimed at adding 2,101,
000 tons of floating craft 500,.
000 tons of new aircraft carriers,
500,000 tons of cruisers, 900,000
tons of destroyers and escort ves
sels and 200,000 tons of auxiliary
ships.