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'