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Independent (Newspaper) - July 29, 1941, Helena, Montana .-if. Senate Poll Favors Army Bill Extension of Term In Service Informally O. K. Washington, July 28. informal admin istration poll indicated today that the senate would grant two-to-one approval of leg- islation empowering the president to prolong the service periods of all army personnel. The poll, taken by White House lieutenants, showed the oppon- ents could muster a maximum oi only 30 votes, out of the total senate membership of 95. Chair- man Reynolds (D., N. only member to vote against military committee approval of the bill conceded It would be approved by a substantial majority. Senator Barkley of Kentucky the majority leader, announced that the legislation would be taken up Thursday, and said he hoped debate could be completed "in a few days." Reynolds saic the opposition had no disposition to delay action, and added that approval by Saturday was pos- sible. The military committee, re- porting the extension measure formally today, said it woulc seive notice on the world "thai this nation is continuing withou cessation to do everything neces- sary to provide a strong, effective and adequate national defense." Promptness Needed Pointing out that the army had requested a declaration of na tional emergency, the committee report said that such a declara- tion was not included in the legis- lation because it might precipi- tate considerable debate and prompt, action was necessary. The measure simply empowers the president to hold all soldiers in service "for such periods (Continued on Page 2) Netherlands-Japanese Rift To Have Widespread Results, Officers Say "Hostile" U. S. Is Accused of Leading in Cutting Oil Supplies, Upsetting Batavian-Nipponese Trading Agreement Tokyo, I'uesday, July Japanese hint- ed today of far-reaching consequences of the action of the Netherlands Bast Indies in cutting off oil supplies, breaking off a monetary agreement and freezing com- merce with Japan. The foreign office-controlled Japan Times and Adver- tiser, already calling the United States "hostile" and at- tributing to her the leadership of the economic offensive against Japan, declared that the Dutch colonial govern- ment was "in league with the United States and Britain." Strike in Florida Spreads to Navy Defense Project Walkouts Threaten Delay; Many Are Idle___ By The AssKlitrt An A.F.L. strike at Key West Fla., spread to additional nava projects there yesterday and an- other at St. Louis threatened to curtail work on an ammunition plant, but the defense mediation board in Washington announced progress toward set- tling three other disputes. 1. Air Associates, Inc., of Ben- dix, K. J., and the C.I.O.-Umtec Automobile Workers, which callec a btrike over the discharge o mine unionists, reached an agree- ment for resumption of work pending negotiations. 2. The A.F.L. Chemical Work- ers' union accepted board recom- mendations to settle its dispute with the Western Cartridge com pany of Alton, 111., and a reply as awaited from the company. S The C.I.O.-XJmted Automobile Workeis and the Federal Mogu corporation of Detroit, which makes airplane and automobile parts, agreed to submit to the labor board a dispute over union recognition. At Key West, 300 to 400 A.F.L carpenters walked out in sym pathy with striking laborers seek ing an increase in the basic wage scale from 40 to 62% cents an hour. The carpenters' walkout which their spokesman said was not a strike, halted work on submarine base, a naval air base a navy housing project and nava improvements. Arms Strike Goes On Some A.F.L. laborer continued their strike at the St Louis small arms plant over the discharge of two ice water hauler whom the contractors accused o Idling, but most of the othe craftsmen on the day shift re turned to work. The superinten dent said that the work would b seriously curtailed, however, un less the strike the laborers wa settled shortly. At-New York, member; of an A.F.L. Electrical Workers union voted unanimously to cal 8, strike of electricians today. DAILY ttt Allocated Press NBA Feature Service 'j N. Y. Stock tad Bond Ust Montana's Oldest Publication It Blankets Helena's Trading Territory J VOL. 76-NO. 107 HELENA, MONTANA, TUESDAY, JULY 29, 1941 PRICE FIVE CENTS The Japanese press discussed the East Indies action in a pessi- nistic vein. "In general, financial circles are inclined to believe that for- midable difficulties will be en- countered in attempting to make a new monetary agreement with :he Java said the Times and Advertiser. This referred to the Java bank's accord with the Yokohama bank, suspend- ed by the Batavia government. The Dutch action, Japanese said, possibly will bring conse- quences even further-reaching than the United States action in freezing credits of Japan since the Dutch islands are Japan's nearest substantial source of oil. Oil Is Vital Factor In fact, it was said, oil may be considered the most vital single factor in the economic struggle, for Japan must have oil whether she gets it from the United States or the East Indies and it was said that cutting off that supply might bring a drastic change in the Far Eastern situation. (In Batavia it was announced that the agreement reached last November whereby Japan was to get tons of oil annually had been suspended as part of economic counter measures against Japanese prohibition of ex- ports to the Dutch islands.) The Japanese privy council, In the presence of Emperor Hiro- ratified yesterday the Japa- nese-French accord on French In- do-China which touched off the round-the-world economic strug- gle. The authoritative Japanese news agency, Domei, said that members of the council, further (Continued on Page 2) Highest Taxes in U. S. History Are Predicted; Sales, Other Types Of Levies Are in Newly Made Bill Washington, July 28. An authoritative forecast ot more and higher taxes including a general sales tax and lower per- sonal income tax was-made today as the way was cleared tor house consideration of the tax bill to- morrow under procedure dras- tically curbing amendments. Answering criticism that the bill should provide for bioadeu- ing the present income tax base so as to make more persons tax conscious, Chairman Doughton (D., N. C.) of the house ways and means committee leminded mem- bers of the rules committee that another levenue measure prob- ably would be necessary next year. "It will doubtless be neces- he said, "to lower the ex- emptions and impose a general consumption tax." Doughton's request that the rules committee approve par- liamentary procedure under which only amendments sanc- tioned by his committee could be offered was granted after less than five minutes' deliberation. Doughton's reference to a sales tax was regarded as especially significant in view of his con- sistent opposition In the past to such a Asked for amplifica- tion of his statement, however, he laconically replied that "we haven't come to that bridge yet." The bill, which would levy the highest taxes in the nation's his- tory and bring federal revenues during the current fiscal year tc about is sched- Mild Earthquake Is Felt in Spokane Spokane, Wash., July earthquake apparently lim- ited to the Spokane area and felt only in the western half of the city shook houses and sent resi- dents scurrying into the streets at m. (M.S.T.) today. Louis B. Franklin, assistant seismologist at the Mt. St. Mi- chaels scholasticate, said the quake was moderate, centered within 90 miles of the city in an undetermined direction and lasted a minute and a half. There were no reports of damage or injuries. Control of Prices to Be Provided for In Legislation Going Into House Washington, July Speaker Rayburn disclosed today that price control legislation would be introduced this week and oth- sr well-informed sources hinted that, in addition to applying to industrial products, it would con- tain a compromise provision for control of farm prices. The speaker told his press con- ference that the measure had been revised satisfactorily and In- dicated he believed its enactment (bould be expedited. Rayburn declined to discuss de- tails of the measure at this time but it was learned from usually well-posted sources that It would provide for regulation of prices en agricultural commodities M long as they were not fixed below "parity." (Parity means a price level that would give farm products the same purchasing power that pre- vailed in the years Immediately prior to the World war.) Accuse Henderson Members of both the house and senate from farm states have pro tested bitterly in recent weeks against activities of Leon Hender- son, price control administrator saying that he was unnecessarily depressing prices. Some influential house mem- bers said the measure probably would give the president rattier broad powers to control both prices and rents but that it would not permit the fixing of wages. uled for three days of debate. Its passage this week m -virtually its present form is almost a cer- tainty. To Tax Signs The other late changes woulc impose the proposed tax of two cents per matches on flooi stocks except those in the hands of retaileis and would add three new brackets to the proposed levy on billboards. Billboards up to 100 square feet would be taxed only yearly; up to 200 square feet, 300 square feet, 400 square feet, 600 square feet, and over 600 square feet, Both democrats and republi- cans on the rules committee ex- pressed belief that more peisons should be required to pay income taxes but Rep. Cooper (D. speaking for the ways and means committee, assertec that at present, single persons haye only of their weekly in- come exempt from taxation and married persons only HERMANN! PICTURE SEEING YOU HERE! Germans dutifully issued this picture of Hitler and Goering together after reports spread abroad that the fat man was "in disgrace" for disagreeing with his fuehrer. They are conferring here with Dr. Ante Pavelic, Croat quisling of Yugoslavia. But the joker is that unidentified, surprised-looklng fellow. He too must have been reading those reports about Hermann. Senators Defend Wheeler on Stimson Charge AVashington, July a drama packed afternoon during which the decorum of the United States senate was shattered by repeated applause from packed galleries, 13 United States senators rose in their seats here today to refute the remarks of a Roosevelt cabinet member against one of their colleagues, Senator Burton On The War Front K. AVheeler, of Montana. Attacking remarks made by Secretary of War Stimson last week regarding Wheeler's action in sending out franked postcards calling on the American people to oppose war, a parade of senators rose to defend Wheeler's cour- age, patriotism and honesty of purpose. Both isolationists and members who have followed the administration foreign policy joined in the denunciation of Stimson and his allegations. On Personal Prhilege The debate" touched off when Wheeler himself rose to a question of personal privilege im- mediately after the senate con- vened at noon. Reports that the Montana senator was to speak had packed the galleries and the press section was loaded with ex- pectant newspapermen. In cold measured tones. Whee- ler called attention to the state- ment of Secretary Stimson last week that postcards he had sent out came "very near the line of subversive activities against the United States, if not treason." Then the Montanan read the post- card in full, which contained ex- cerpts from public addresses of President Roosevelt, ex-President Hoover, former ambassador to Britain, Joseph P. Kennedy, Sen- ator Gerald P. Nye of North Dak- Preliminary County School Budget Is Fixed at But No Change Is Scheduled in Levy Lewis and Clark county's pre- liminary 1941-42 school budget of will call for only a 6-mill levy, unchanged from last year, despite many planned in- creases in individual district budgets, Miss Frances Forgy, county school superintendent, said yestei day. Miss Forgy explained that In- creased taxable valuations will make this possible and said that both high, schools and elementary schools were included in the total budget figure. Miss Forgy said that a number of millages in the county would be reduced, including the county gen- eral high school levy which will be reduced from 7.61 to 7.4 mills, despite an Increase in both the Helena and Augusta high school budgets. The bonded indebted- ness levy lor Helena district No. 1 will be 7.3 mills, compared with 9.4 mills last year and the Helena elementary school levy will be 6.05 mills, compared with 8.32 last year. The county high school budget was advanced in the preliminary estimates, which will be open for public inspection at Miss Forgy's office until Aug. 11, from 635.05 in 1940-41 to for the comin-g school year. The Helena elementary school budget (district No. 1) was advanced from in 1940-41 to in 1941-42. The Craig district went the hon- ors for the lowest levy in the county. Tho Craig board of trust- ees has managed its finances so that the preliminary budget calls for no levy at all for school ex- penses and maintenance and only The Weather Montana Generally fair Tuesday and Wednesday. Warm- er extreme southwest portion Tuesday. 1 mill for bonded Indebtedness. At :he same time, the school district will enjoy a hudget increase of The school budgets, for 1941-42 and for 1940-41 respectively, for all 39 districts in the county, and the mill levy for each district for next year, are: Kessler, 10.78 mills Warren, 725, 6.7 mills; Canyon Creek, 8.55 mills; Har- mony, 10 mills; College Place, 10 mills; Rimini, 10 mills; Middle Fork, 10 mills; East Helena, 10.5 mills. Hauser lake, 2.6 mills; Marysville, 20 mills; AVolf Creek, 6.7 mills; Seven-Mile, 3.4 mills; Barnes, 9 mills; Spokane (Continued on Page 2) ota, Col. Charles Lindberg and Wheeler himself. All of the speeches had previ ously appeared in the Congres- sional Record and Wheeler asked: 'Can it be that The Record is a treasonable document That read- ing it is a subversive He added that Stimson fiad ap- parently taken his definition o: treason from the teachings of (Continued on Page Montana Will Sell Bushels Of Wheat Harvest Montana will sell an estimated bushels of wheat grown on state school land "as it is har- J. W. Walker, state land commissioner, said yesterday. Walker said the decision to sell the wheat rather than seek stoiage and secure wheat loans was reached because of the lack of storing facilities in Montana mills and elevators. An original plan to have farm- ers store the wheat and hold i1 for the state was abandoned as not wholly piactical. The state receives a minimum one-fifth of crops harvested on school land, and in some cases a greater return under practices o competitive bidding for use of the school land. The land commissioner said that inasmuch as law provides the state shall pay storage of whea grown on slate-owned land, it is expected a loss of only 3 cents a bushel will be felt through the sale disposal the harvest. He added that the state had already received offers to pur chase the wheat from elevatoi companies having storage facill ties in the east. Walker said he believed the state would receive 71 cents a bushel lor the crop, since offers received were at market price. Montana has been cramped fo wheat storage space this year, am for the past several weeks farmer have been urged to provide home storage facilities. In the case o the state-owned land it was de cided after discussions between the commissioner, the state Ian; board and Gov. Sam C. Ford, tha difficulties presented in endeavor ing to secure home storage woult be more than offset by offering the wheat for sale as it is bar vested. Raid on Moscow Moscow, Tuesday, July 29. 150 Ger- man warplanes again attempted a mass attack on Moscow dnr- in the night, but only several of them broke through to scat- ter bombs which killed several persons and started a few fires, it was announced today. Nine German planes were re- ported shot down, with Soviet night fighters unscathed. Fires set by German bombs in Russian homes were extin- guished by prompt work of the fire brigades. Japan Planes Down Chungking, China, July Japanese warplanes were reported shot down today in the first indication of a serious Chinese aerialjchaUenge to repeated Japanese attacks on (Jiis capital. Hitherto Chinese resistance mostlj has been anti-aircraft fire, credited with bringing down only one Japanese plane. Observers now were speculating that a new Chinese air force under training for some time was at last reaching combat strength. Turks Stop Sailing Xew York, July The reported in a broad- cast from Ankara tonight that Turkish ships had been ordered to remain in Turkish waters. The NBC broadcast said the order was prompted by the bombing of a Turkish ship in (Continued on Page 2) Argentina in Row With Nazis as Plot Detected by Bolivian Officers Berlin, Tuesday, July The strongest protest has been launched against the Argentine action in seizing a German diplo- matic pouch on the way to Bueuos Aires from Lima, Peru, DNB, of- ficial German news agency, re- ported early today. The agency said three diplo- matic pouches which the German legation at Lima forwarded the German embassy at Buenos Aires had been taken off an airplane at Cordoba, Argentina. Buenos Aires, Argentina, July congressional com- mitte investigating anti-Argentine activities announced tonight it wou'id turn over to the German embassy a portable radio trans- mitter seized in an airplane trav- eling from Peru to Argentina. The committee acceded to re iterated demands of the Germa government for return of th property. NAZI CONSUL TAKEN La Paz, Bolivia, July German consul at Cocba bamba, Bolivia, was arrested to day and other Germans were rp ported detained because of SUE picion of subversive activities i that central Bolivian center o German colonization. There was no immediate state ment on whether the arrest wa connected with the expulsion from Bolivia of Ernst Wendler, Gei man minister. Cochabamba, bow ever, was declared to have bee the center of a subversive move ment with which Wendler wa connected, United States Is Acting Swiftly to Meet Any Possible Far East Peril But It Is Decided Not to Detain Ships Of Japan for Time; Senate Soon Confirms MacArthur as Commander Washington. July 28. (AP) Swift senate action today clothed Douglas MacArthur, former TT. S. chief of staff, with the rank of lieutenant general commanding the army of the Far East, as the War department moved to strengthen the armed forces in that troubled area. Only a few hours alter the president had submitted MucArthur's nomination, the senate confirmed it without a single dissent. How far the swift vote could be taken as an endorsement of the administration attitude toward Japan was not known in view of the lack of debate. The elevation MacArthur, The AsiocJated PriM has been field marshal of the Philippine commonwealth army, was one of three moves with which the administration reacted to Ja- pan's push into French Indo-China. The others were an order freezing Japanese assets in the United States and a proclamation putting Philip- pine aimed forces on virtually a wartime basis. Freezing Order Clarifying the freezing order, the go% eminent made plain tonight hat for the present at least, it would not be applied in such a way as to detain Japanese ships In United States ports. Admiral Kich- saburo Nomura, the Japanese am- bassador, called at the State de- partment seeking light on the order as it applied to ships. Sumner Welles, acting secretary of state, assured him that prompt clearance would be given, under present con- ditions. This apparently meant ;hat the assurance was not bind- ng for an indefinite peribd. A number of Japanese vessels had been hovering off the west coast, fearful to come Into port lest they be immobilized. Among them was the big Japanese liner Tatuta Maru with American pas- sengers aboard. Besides MacArthur's nomination, the war department moved to strengthen Philippine defenses bj ordering 16 officers, ranging from second lieutenants to captain, to proceed there. Whether the> would be accompanied by. troops was not disclosed. Defense BUI By Meantime the house passed an defense appropria- tion bill, carrying funds for ex- panding the army, navy and mer- chant marine and for a new war department building described as twice as big as the Empire State building. The measure now goes to the senate. Before passage, which came on a voice vote, the house rejected, 65 to 15, an amendment by Hep. Hull (Prog., Wis.) to strike out the pro- vision for the war de- partment structure. The building (Continued on Page 1) Moscow Claims German Attack Broken While Russians Have Assumed Counter-Offensive With Success Moscow, Tuesday, July 29. Russians declared to- day Moscow's defenses took the edge off a new nazi night raid on the Soviet capital, and said that on the land front German drives toward Moscow and Kiev were "breaking against the firm- ness and stubbornness of our troops." Red army counter-attacks were reported taking a heavy toll of the Germans In sector after tec- tor along the battlefront. Night fighter patrols and anti- aircraft barrages were declared officially to have knocked down nine of approximately 150 Ger- man planes which struck at Mos- cow in its sixth raid of the war. Only a few of the raiders were said to have broken through over the city, starting some fires and causing casualties. The heaviest fighting was In Nazis Claim to Be Near Victory in Smolensk But Russians Hold the third reported said to Berlin, July forces were reported tonight on the threshold of victory in the fierce "battle of Smolensk" and a direct assault on Moscow was fore- :ast as the next offensive stroke for Adolf Hitler's legions. Another Red army within 24 have been wiped out aud war dispatches said Lhe newest one destroyed had been shifted all the way from the Far Bast to buttressthe wavering de- fenders of the Soviet capital. The latest German reports pictured the Russians as hopeless- ly split up and trapped in a Ger- man pocket at Smolensk. A brief but confident communi- que from Hitler's headquarters said: "The battle of Smolensk is drawing to a successful conclu- sion. All Bolshevist attempts to prevent the annihilation of en- circled Sovieet units were nipped m the bud." Tanks Active DNB, official German ne agency, said that the coup de grace to the new division reported destroyed was delivered by Ger- man tank forces and that prison- ers disclosed the division had been shifted some miles from one side of Russia to the other. (This was the first Indication that the Russians may have drawn Fears U. S. fo Have Dictator Later Baraboo, Wis., July Rep. Joseph W. Martin, Jr., chair- man of the Republican National committee, warned Wisconsin re- publicans today that America was threatened with a dictatorship as an aftermath of the second World war. In an address prepared for de- livery before party's off-year state convention, Martin said he was taking the opportunity to call attention to "the greatest danger, menacing this country.'' on their Far' Hast army to strengthen the front against the Germans. It has been regarded as fundamental Russian strategy to treat the Far Eastern army as a :ompletely Independent, self-suf- ficient and almost autonomous force guarding the Soviet's Pa- :ific frontiers.) Some advance units were un- officially said to be within 45 miles of Leningrad, Russia's sec- ond largest city but the war bulle- tin said only that progrss was be- ing made in that direction. It de- scribed the German-Rumanian- Hungarian allies as "in pursuit of the enemy in spite of bad roads" in the Ukrainian sector. Admits Coing Hard The German press marked the start of the sixth week of the cam- paign with a new reminder that such vast operations "can't be fin- ished between dawn and dusk." German front reports disclosed that in some places at least the Stalin line wag still standing. The high command many days ago had reported th's defense system "broken at all important points." the Smolensk lector, -where the Germans are attempting to break through to Moscow, and in. the Zhitomir area; the battle ground for the Ukranian capital of Kiev, The Soviet information bureau Indicated in its morning com- munique that Russian forcet passed to energetic counter- drives after the German drives bogged down. Aside from the Smolensk and Zhitomir fighting, th e com- munique said, there were no im- portant combats on the front. It declared that planes were brought down Satur- day while only 36 Russian planei were lost. At sea, the asserted Red planes had sunk a German torpedo boat and two patrol boats in the Baltic. The communique acknowledged the loss of a Rus- sian torpedo boat. Reports last night bad indi- cated that Red troops had seized the initiative on the approachei to Kiev and Moscow. The swing to offensive tactics by the ground forces was paral- lelled, said the Red general staff't communique, by a widening bombing campaign of the Soviet air fleet not only over the battle- front against nazi troops and air- dromes but extending from Ger- man-allied Rumania to the waters of Finland. Constanta, the principal Ru- manian oil port, was raided over- night, it was declared, while other Red bombers ranging fai to the north hit a Finnish coastal defense cruiser with heavy bombe and left her exploding. Proposal to Divide U. S. High Court Washington, July 28. (IP) Senator Bone (D., Wash.) asked congress today to divide the ninth United States circuit court of ap- peals and create a new eleventh judicial circuit out of Washing- ton, Oregon, Montana and Idaho. The present ninth circuit, whicl functions from San seven judges and Bone said hit bill would permit three of them tc be detached to staff the new eleventh circuit, which would lit in Portland and Seattle. Finland Severs Diplomatic Ties With Britain; Assets May Be Frozen London, July 28. Fin- land severed diplomatic relations with Britain today, an authorita- tive source said tonight. This information said the break was made when the Finnish for- eign minister called on the Brit- ish minister in Helsinki during the afternoon. A foreign office statement said that the Finnish foreign minister "has handed an aide memoire to Gordon "Vereker, Britain's min- ister at Helsinki, informing him that as Finland Is a co-belligerent with Germany normal diplomatic relations between Great Britain and Finland can bardlr be main- tained. "In reply to Vereker's question whether this statement meant Finland was requesting the sever- ance of diplomatic relation! Finnish foreign minister replied this was so.." Informed sources said the Brit- ish-Finnish break probably wott'ld be folio wed' by British (reeling ol Finnish assets. Only was preparing to.aftnd ot men to'WBland in the fight against quantities "of dispatched planet, was" subscribed FtaalshMUst
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