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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Sept. 28, 1941)
run u a Time To Check Now for fw minute, af jonr tlm to check th U-nt Ad. Thfft r many peopl. buy during the week who hTt time to Inveatlcat your affer on Forecast: Fair today u Monday, wltk momtnf foe tittle chans la temp-rat-re. Temperature M.-e Yetferda- Tt Lowest ITeMer-a- ,, 40 rreclplUtloo put M hours M DFORD Sunday. Be tare to have your on the Want Ad pife. full Associated Prm Me Thirty-sixth Year Hugh Johnson Eyes Men and Issues of Day By Hugh S. Johnsea Washington, D. C, Sept. 27. When Secretary of the Treas ury Morgenthau said he thinks profits should be limited to six ' percent of invested capital, he wasn't reading from his pre pared manuscript, which made no such suggestion. Henry ' ought not to try ad libbing that Vway. His getting to be the "best ' secretary of the treasury since Willie Woodin" has been large- ' ly due to his choice of some able assistants. Henry, on his own, ain't any too smart. His six percent recommendation was either very vicious or very lg- ' norant. In these troubled times it is more charitable to say "very ignorant." Invested capital is not the Important thing to look at in examining the performance of any enterprise. Proof of that is that no financial expert on se curities looks first at the bal ance sheet of a company in question. It looks first at Its income statement to learn what it earns, not in percentage of invested capital, but on each share of stock. In many cases (as in non-par common stock) that has nothing whatever to yAo with invested capital which usually means largely bricks, mortar and machinery and which isn't worth a tinkers dam If it can't earn and Is in that ease a liability rather than an asset. FmTHERMORE, some com panies, railroads for example arc heavily over-capitalized, burdened with some "assets which are Just dead horses unburied corpses of dead mis takes. Six percent on their in vested capital" would be bon anza for them. At the other end of the list are companies which depend almost entirely on good will and skill which can t prop erly be written in their ' invest ed capital." Consider a great law firm. Its "invested capital" Is In a snag (Continued cn Pag Eight) SENATE FOES OF NEUTRALITY ACT REVISION UNITE Washington, Sept. 27. (IP) Opponents of administration foreign policy were CT8-nl-inS today for a fight against revis ion of the neutrality act, and Senator La Follette (Prog.-Wis.) made It clear that opposition senators would resist any changes. President Roosevelt Is expect ed to confer with his congres sional lieutenants Monday and to decide then what recom mendations to make in a formal message to congress later in the week. "I am opposed to either re peal or modification of the neu trality act," La Follette told re porters. "Either proposal would be another step toward actua. participation in the war. There fore, either would be violative of the pledges President Roose velt made in the 1940 cam paign." Saying that the administra tion had not yet given a clear cut outline of what changes were wanted in the neutrality act La Follette added that "ap parently they are trying to de cide whether to bury it com pletely or to leave a skeleton hanging up." Another administration op ponent. Senator Johnson (R,, Cal.), wi'.l return here early next week and, other senators said, l expected to call a meet ing of the "non-lntervenllonist bloc" Immediately after Mr. Roosevelt announces his recom mendations. Johnson is ranking minority member of the senate foreign relations committee and hMK-.-ti--, o n German pl-nes UTTil in Hie .villi um. v congressional battles against Mr. Roosevelt's International policies. - The present neutrality law, enacted In 1939, forbids Or arming of American mere haft ships and prevents them tram entering belligerent ports or combat areas fixed by the presi dent. In addition, it prohibits Americans from traveling on the vessels of belligerent na tions. VICTORY CLAIMS IN RUSSIA TOLD British Act To Aid In Cau casus Moscow Denies Berlin Communique Finland Warned. By the Associated Press The first anniversary of the German-Japanese-Italian tripar tite pact was marked yesterday (Sat.) by German announcement that five Soviet armies had been annihilated east of Kiev in an "unparallelled" victory; Japan ese claims to capture of Chang sha, stubborn capital of the Chi nese province of Hunan; and Italian decision to ration bread, raise taxes and weed out luke warm Fascists. The gigantic German claims overshadowed all others, official Nazis heralding this as the turn ing point of the entire continent wide conflict which has been in progress for 14 weeks. The Red army told of suc cesses on a more modest scale on the central front and before Leningrad, which a Russian spokesman aid never would be taken no matter how many tens of thousands of Germans fell there. London saw increasing indi cations that British forces were moving to help defend the Cau casus in the south. Official Berlin sources, how ever, contended British and American help for Russia al ready was too late because the Soviet union had been all but knocked out, basing their as sertions on this special coi . munique from Adolf Hitler's field headquarters: "The big battle near Kiev is finished. In a two-sided encircle ment of a tremendous region we succeeded In uprooting the Dnie per defense, destroying five Sov iet armies without permitting even small units to escape the encirclement. "In the course of operations, carried out with the closest col laboration of the army and air force, a total of 665,000 prisoners were taken, 684 tanks. 3,718 pieces of artillery, and un- surveyable quantities of other war material were captured or destroyed. "The opponents' bloody losses again were very high. "Thus a victory was won which is unparalleled In history The exploitation of these suc cesses is in full swing. The German radio blared forth the communique with a flourish of trumpets, and the press rolled out Its blackest headlines. The German public listened and read with stolid faces. Informed Germans said the invasion had reached to the source of the Volga river, 200 miles southeast of Leningrad. A Russian communique re ported more than 4,000 enemy soldiers slain on the approaches to beleaguered Leningrad, with 66 pla-.ies and 34 tanks captured or destroyed, as well as local successes on the central front, scene of repeated Russian counter-attacks. Authoritative military quar ters In London said a German attack on the Crimean peninsula was delevoping Into the biggest assault possible in the confines of the Perekop Isthmus. They expressed belief the Germans could not take the peninsula without destroying the Soviet Black sea fleet, how- ever, and the Russian spokes man in Moscow, S. A. Lozovsky, said the Germans had not yet been able to set foot in the Crimea. The British moved to help Russia by publishing a warning to Finland that she would be considered an enemy If she car ried on an aggressive war on territory of the Soviet un'on. The Finns have won back vir tually all the soil they lost to -snssla by the peace of starch IMt. If they seek more. Britain will' consider them axis mem baas, the foreign office warned. The RAF continued active blows at Germany, reporting de- t' day-long sweeps over north If France, with a loss of 14 1ttsh machines. This followed ttibings of the Rhineland and fthern France Triday night. Germans broadcast a loss of IVBrttUh planes, i Adolf Hitler and Benito Mus solini exchanged telegrams of felicitation with Premier Prince Fumimaro Konoye In observ ance of the first anniversary of th signing of the German-Japanese-Italian tripartite pact. Speedy Wings for the U. M' A A group of Lockheed two-motored P-38 Interceptors for the U. S. army held a rendeivous for this rare formation picture after cak-ui off from Burbank, Calif., on a recent delivery flight east wards with army pilots at the controls. Equipped with turbo-superchargers, these planes are de signed for high performance at extreme altitudes. E A NEW DEAL PLOT Fifth Columnists' In Oregon G.O.P. Charged Union Labor Leader Honored. Roseburg, Ore., Sept. 27. (JP) Re-election of Mott and Rep resentative Homer D. Angell was urged by Joseph W. Martin, National- Republican Chairman, who said, "they have done splen did work for the state of Oregon and they should have the full support of Republicans." "No man has done more for national defense than Jim Mott,' Martin added. Roseburg, Sept. 27. (IP) Re publicans who signed a resolu tion censuring Oregon's three GOP congressmen on their vot ing records are "fifth column ists," Rep. James W. Mott (R. Ore.) said today. He .told the Oregon Republi can clubs' convention, which will consider the resolution, that the action was a "plot which will be attempted not only in Oregon but everywhere republi cans meet in convention." "Failing in the last election to accomplish by the purge the policy of creating a one-party instead of a two-party govern ment, the new deal administra tion now is trying to accomplish by boring from within what it failed to achieve by a direct at tack from without," Mott said in referring to the resolution, directed against himself. Rep. Angell and Senator Rufus Hoi man. Mott asserted that "four fifths of congress is In accord on the defense policy and the only is sue is on the methods to be used to gain the desired purposes." The resolution, he declared, was submitted to the conven tion by a few Interventionists whom he called "republican fifth columnists." Roseburg, Sept. 27. W) The Oregon Republican club today elected Robert F. Fischer, Eugene typographer, president, the first union man to be named head of the organization. Barbara Benson, Salem, was elected secretary. Dr. C. K. Chapman, Oregon City, treas urer; Howard Waddell, Rose burg, sergeant-at-arms. BULLETIN Seattle. Sept. 27. V-Seat- playoff game tonight, making three errors to allow Hollywood to win, 3 to 3. The Rainiers. champions of the Pacific coast baseball league, batted out 11 hits but gave Kewpie Dick Bar rett such poor support that his four hit pitching Job went down the drain as a defeat Hollywood 9 4 1 Seattle 3 11 3 Tost, Bithom and Dapper; Barrett and Collin. MEDFORD, OREGON, SUNDAY, SEPTEMBER 28, 1941. F Portland, Ore., Sept. 27. (IP) The Liberty ship Star of Ore gon slid down ways of the Ore gon Shipbuilding corporation's plant today, one of 14 vessels launched throughout the nation in observance of "Liberty Fleet Day." The Star of Oregon, its keel laid May 19, 100 years after the first ship of that name was built here, was christened by Mrs. Charles A. Sprague, wife of Oregon governor. Br the Associated Press With 14 new cargo ships slid ing down the ways, America put a vital span yesterday into the "bridge of ships," by which this government expects to contri bute to the downfall of Adolf Hitler. It was the largest mass launching since World war days, and was notable, too, because among the vessels which hit the salt tides were three of the new "Liberty Ships," designed for mass production. The launchlngs took place on the Atlantic and Pacific coasts and on the Gulf of Mexico as well. President Roosevelt signalized the occasion with the unusual device of an electrically tran scribed speech, heard at all the launching ceremonies, in which he called the event a "telling blow at the menace to our na tion." He told the shipworkers of America they were doing "a great Job" and had "caught the true spirit with which all this nation must be imbued if Hitler and other aggressors of his ilk are to be prevented from crush ing us." . ITALY SUSTAINS HEAVY LOSSES AT Alexandria, Egypt, Sept. 27. (IP) September was Italy's blackest month at sea since the battle of Cape Matapp.n last March, with 29 troop and supply ships sunk, 30 others damaged badly, and the flow of axis re inforcements across the Mediter ranean to North Africa curtailed sharply, a compilation of British war bulletins showed tonight. British and Netherlands sub marines sometimes raiding In to gunfire range of Italian har bors and bombers of the Med iterranean fleet arm were cred ited with sinking one and dam aging two of every five Italian ships v. hlch tried the Mediter ranean crossing during the month. These sere the sinkings, total ing 200,000 tons, listed since September 1: Four liners of more than JO, 000 tons each, and each capable of carrying 8.000 German and Italian troops; 23 troop and sup ply ships of 3,000 to 8.000 ton each; and two destroyer. S. Army WMiPk- v 3 T NEW TAXES 00 TO 1. JONES No Tax On Beer But Matches Hit Bridge, Kodak Films, And Calls Higher. Washington, Sept. 27. (IP) Take the ease of Citizen Jones one of those who will help bear the extra $846,800,000 annual tax burden which will fall next Wednesday on articles ranging from wine to washing machines, from perfume to pianos. The so-called "nuisance" taxes, provided under the record-breaking $3,553,400,000 revenue bill enacted recently, might affect Citizen Jones this way: Mr. Jones takes a lata vaca tion and has to pay 9 per cent more on his railroad ticket. He arrives at a resort and is charged 5 per cent extra every time he takes his wife to the roof gar den for dancing and drinks. And, because the liquor tax is Increased from $3 to $4 a gallon, he will pay more for the drinks. If he orders wine, he will pay higher taxes, but if he is satisfied with beer there will be no increased tax. Picking up some trinkets for his wife In the resort novelty shop might cost Mr. Jones a 10 per cent tax on Jewelry. If he wanted a tennis racquet or a set of golf clubs that would be another 10 per cent. Cigarets will not cost him any more, but, because of a 2-cent-a-thousand tax on matches, he might have to pay for his lights. If he decides to buy a new car and drive home he will pay a 7 per cent tax on the car, a levy of 9 cents a pound on the tires and a 9 cents a pound impost on the tubes. And a $5 annual use tax on the car will go into effect next February. Deciding on his return home that ha needs a new radio and refrigerator, Mr. Jones will pay a 10 per cent tax on earn. Should he want to buy his wife a piano, a bottle of perfume or piece of luggage he will pay 10 per cent tax also on them. When visitors come for a game of bridge, he will pay a levy of 13 cents a pack for cards. When he wants to take a picture of his family there will be the 1 10 per cent on photographic apparatus. The telephone bill will go up ! 5 per cent on local bills and ! 10 per cent on most long dis : tanca calls and a new type writer will invoke the 10 per I cent tsx on business machines. Berlin. Sept 27 4V-DUB news agency reported today the commander-in-chief of the Russian fifth army had baea captured by German troops in mopping up operations east of Kiev and said another high ranking Russian officer. Iden tified as Colonel General JTlr ponk, had fallen In batue la he sana arts- I War Bulletins 1; D 4-H STOCK BRINGS I j RECORr.iCESIN AUf'M Gra' lampion Hereford Goes At $25.50 Per 100 Lbs. Awards Made. Prices rocketed to a general average of double market price in the auction sale of fat stock, climaxing the three day Jack son county 4-H livestock show which closed Friday afternoon at the fair grounds stock pavil- lion. Safeway stores offered the highest bid of $25.30 a hundred i for the grand champion Here- expected quickly to drive wide ford steer, owned by Tommy spreading pincer arms around Carlton of Upper Rogue, and weighing 98 pounds. Thirty seven cents a pound was the highest on sheep, and was given by Riverside market for a third class sheep owned by Wayne Smith of Table Rock. The grand champion sheep belonging to Patsy von der Hellen of Ante lope went to Groceteria mar kets for 32 cents. Riverside market also placed the highest bid on hogs, 25 dol lars a hundred for the first prize Poland owned by Wayne Smith of Table Rock, and weighing 218 pounds. The grand champion Duroc, owned by Mary Kruger of Dead Indian, weighing 230 pounds, went for 18 dollars to Walter Leverette. The reserve champion Angus beef, weighing 804 pounds, and belonging to Bill Ousterhout of Little Butte, went to Groceteria markets for 17 dollars. Nine teen dollars was the average beef price, 30 cents for sheep. (Continued on Pag Three) YOUTH CONFESSES TRIPLE SLAYING! TALKED TOO MUCH Pendleton, Ore., Sept 27. (IP) A youth " ho said he was IS but looked 21 was held here tonight for the slaying of a Hermiston, Ore., ranch family In which he admitted "only one mistake talking to two neigh bor women." The youth, John Sota, was returned here today from Ken- newick, Wash., where Police Chief M. H. Kershaw arrested him as he left a theater to re turn to his hotel room. He was traced by a 1929 model auto mobile belonging to one of his victims. The dead were Mrs. Cora Tobin, 70, who was shot as she stopped to take a plate of butter from a crock In her outdoor cellar; her nephew, Marvin Adams, 28, shot five hours later as he returned to the ranch. and her son, Kenneth Gorsuch, 35, slain eight hours after his mother died. Each was dispatch ed with a bullet through the back of the head. District Attorney's Deputy C. C. Proebstel said Sota, who lived at the ranch, admitted the slaylngs but regretted talking to two neighbor women, Mrs. L. T. Murray and Mrs. Charles McKenzie, who gave officers his description. Sota, who told neighbors he was a federal agent detailed to work at the nearby Hermiston army ordnance depot told Proebstel he shot the family be cause Mrs. Tobin "had some thing on him." He refused to tell what It was. A neighbor who went to the ranch to borrow eggs found the bodies with Gorsuch 's dog, Joe, mourning near his master. UTOURETTTOUT Portland, Sept. 27 (IP) How ard Latourette, Democratic na tional committeeman, announced tonight he would seek his party's nomination for governor In next May's primary election. Former speaker of the Oregon house of reoresentatlves. the Portland lawyer announced hi Intention at a gathering ad vertised as draft-Latourett n.eetlng. ! He will be nominated by pet! i tion. and Latourette-for -governor committee organized In leach coufitir. Interpreting THe War News By Kirke L. Simpson The astonishing thing about Germany's swift conquest of Kiev Just over a week ago is that within that brief time and despite unquestionably terrible losses the Russians have rallied effectively. Within those few days they have achieved a new defense set-up nearly 200 miles eastward of their former Dnieper front above Kiev. There is Nazi tes timony that it is a front well implemented with guns and tanks as well as men. And It has balked at least temporarily Nazi efforts to pinch off Kharkov, last great Ukrain ian city except Odessa still in Russian hands. It is clear that the Nazi high command had Kharkov from the north and south as they did about Kiev, then take it from the rear as Kiev fell. German strategy counted heav ily on the expected confusion and disorganization resulting on a wide gap in Russian ranks due to the fall of Kiev and capture or destruction of Russian armies caught in the Kie trap. This would have paved the way for an' even swifter dash into the Donets basin. The week long stand of Red forces east of Kiev has upset those German calcu lations. The exolanation probably Is that Russian leadership was well aware of the impending stroke on the Kiev front long before il came. It took time for the Germans, with fantastically long and difficult communications lir.es. to assemble sufficient forces for the drive above Kiev. They had to have not only the powerful shocktroop units built about panzer technique to break through Russian lines on both sides of Kiev in a converg ing sweep that leaped 125 miles east of the city to a junction but close-up masses of infantry for the follow-up. Holding the ground taken and laying siege to encircled and nara-iignung Russian forces caught in the trap was the business of the foot troops following up the armored divisions. The panzer unit, were to plunge ahead and hoped to engulf Kharkov also In their stride. But assembling so vast a force as the Germans required took time and needed some secrecy tn hostile territory where grape vine Russian communications must be the order of the day, the possibilities of surprise were strictly limited. The Russians knew what was coming. Following Nazi seizure of Chernigov on the Desna above Kiev and Kremenchug east of the Dnlper, part of Russian re serves eastward of Kiev were withdrawn, it now seems prob able, even before the Nazis lashed out in their vast and quickly executed pincer envel opment of Kiev. It Is also reasonably clear that powerful reinforcements wera sent from the Moscow defense hub tj bolster the prob able eac tnrcugh which the Germuns would drive on toward Kharkov. The fact that for a week after the fall of Kiev the Nazis cited no specific advances beyond the Poltava to the south or Glukova to the north (the gateposts of that 100-mile gap), nor claimed seizure of new towns In the center bears witness to Russian army staff skill In a terrific emergency. New York, Sept. 27 . (IP, The stage Is being et this week end for what should be one of the wildest, most spectacular World series ever played. In hlch Brooklyn's bristling Dodg ers confidently expect to ambush th powerful New York Yan kees. Nevertheless, tha American league champions were rated 2 to 1 favorite today, and most observers conceded they thould be able to capture the world championship In flva or six games, Tha series will open Wednes day at 7:30 p. m. (eastern stand ard time) in tha big, concrete confine of Yankee stadium, which 1 expected to b sold out th first time In aerie history. This would mean an attendance of about 70,000 or ,000 more than saw th Yanks battle tha New York Giants In tha fourth (an of tha 1938 cisssio. No. 163 STANFORD BEATS 1 OREGON 19 T0 15 IN THRILL GAME: T ' Ducks Lead At Half Safety Helps Roblin Best Threat Weak Punt Hurts. (By Russ Newland) Palo Alto, Calif., Sept. 27. (if) Stanford's football empira tottered and trembled today, but in1 the end remained intact the T formation Indians scored a 19 to 15 victory over the UruV versity of Oregon Ducks. The defending Coast confer ence champions and Rose Bowl winners of last New Year's day squeezed out their victory in the wake of a thrill filled, fum ble and penalty-infested contest It left some 28,000 fans limp from the excitement as well a the heat The 1941 debut of both elevens disclosed tremendoua power on Oregon's side and a pass defense weakness as well as a penchant for fumbling on the part of Coach Clark Shaugfe- nessy's winning combination. Stanford scored first but Ore gon led at the end of the first period, 7 to 6. At half-time. the home guards were In front again, 12 to 7. Th third quarter opened, and in less time than it takes to run off a dozen playa uie team from the north waa out in front again, 13 to 12. The thrill a minute spectacle continued full force. Stanford came back near the and of tha third quarter to score it third and last touchdown. This tima the extra tally was converted, the first of three tries. Rooter for tha Indians' causa cheered 19 to 13 lead, but midway of the .last period another of tha many Stanford bobbles paved the way for a safety, Oregon chalked up two mora points. Scoring took place this way: Stanford drove 58 yard on 10 play in tha first 7V4 minutes of the game for the opening touch down. Quarterback Frank AI bert, a last year's all-Amerlcan star, skirted Oregon' right end Standing up. Usually unerring on place kicks, he missed tha try for point Oregon took the kickoff and came back 70 yards within threo minute to score on four plays. Tom Roblin, left half, caught a pas from right Halfback Curt Mecham, to complete a 50-yard gain for the touchdown. Rob I to ran 16 yard with tha ball. Tha try for point was good, giving Oregon the lead. In the second period, Albert sneaked through center for tha final yard to put Stanford In tha lead. It climaxed a 47-yard march. It took seven play. Ken Robesky, a guard, tried to convert but missed. Stanford fumbling marked tha third period and one of tha bobbles led directly to Oregon'a second touchdown. Pete Kmct ovlc, Stanford left half, was a two-time goat in this crisis. Af ter running 83 yards to Oregon'a 22-yard line he fumbled and Roblin recovered for the North erners. They immediately powered down the field for 78 yards and a touchdown, using 12 play. (Continued on Ptae Two) Cpt Theron W. Bean, con structing quartermaster of tha proposed army cantonment here, will leave by motorcar thi morning for a conference at tha office of the zona 9 constructing quartermaster tn San Francisco. Captain Bean will b accom panied by Capt. Theodore C. Dittebrandt, constructing quart ermaster of tha proposed AW bariy-Corvalll cantonment, and Dittebrandt' chief engineer, Kenneth Legge, who arrived here yesterday. Frank J. Van Dyke, executlv secretary of tha civilian canton ment coordination board, plana to fly to Portland tomorrow for a conference with state health board official regarding health protection her should construc tion of th proposed camp b authorized. Captain Bean said there wat nothing new In tha statu of the proposed camp. i 1'