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Mason City Globe-Gazette (Newspaper) - August 12, 1942, Mason City, Iowa I NORTH IOWAS DAILY PAPER EDITED FOR THE HOME COWP C P I IS T Of H ri f 0 Y A A C I V 5 V V I N t j I A THE NEWSPAPER THAT Wttl EIRHBCRV MAKES ALL NORTH IOWANS NEIGHBORS VOL XLVIII ASSOCIATED PRESS AND UNITED PHESS FULL LEASED WIRES FIVE CENTS A COPY MASON CITY IOWA WEDNESDAY AUGUST 12 1942 THIS PAPEIl CONSISTS OF TWO SECTIONS SECTION ONE NO 261 BATTLE RAGES IN SOLOMON JUNGLE l V Nazis Drive To wa rdSea SOVIEHORCES USE SCORCHED EARTH RETREAT U S MAY SEEK Report New India Riots Roosevelt Believes American War Debt Can Be Paid Off by Heavy Taxes Low Expenses INDICTMENTSON TREASON COUNT Germans Drive Red Army Defenders to Point Near Turkey By HENRY SHAPIRO United Press Staff Correspondent MOSCOW German arm ored forces advancing through towns and fields laid by a soviet scorchedearth retreat swept into the Caucasus moun tains Wednesday and drove red army defenders back upon the highway center of Mikoyan Sbak har barely 150 miles from the Turkish frontier Driving directly south from the ArmavirBaku railroad the Germans carried their attack into the mountains in an effort to clear the southern flank of heir forces striking simultane ously toward the Russian fleets Black sea bases to the west and tile rich Grozny oil fields and he Caspian coast to the east From the Nivinomoniskaya junction on the ArmavirBaku rail line the German panzers swung southward and pushed the Russians back into the mountains along a branch line which runs through Cherkess Wednesdays soviet high com mand communique reported in tense lighting against enemy tanks and motorized infantry President Speaks Highly of Planning Laid Out by Mellon WASHINGTON Roosevelt believes the American war debt can be paid off after th2 conflict ends by continuing heavy wartime taxes and cutting govern ment expenditures to the bone it was learned Wednesday British Aircraft Carrier Sunk in Mediterranean LONDON British air craft carrier Eagle has been sunk The presidents plan for amori in the Mediterranean but a large tizing tlie cost of the war in post war years was outlined by him re cently in talks with national lead ers Mr Roosevelt it was reported authoritatively believes that heavy taxes should be continued long enough to pay off the billions being spent today by the United States in arming the united na tions Total government expendi tures this fiscal year are ex peeled to reach and the president foresees a pub lic debt of about 5175000000 000 by Ihe end of the war By cutting government expendi tures to a peace level of about and continuing part of the 22600ton warships crew has been saved the admiral ty announced Wednesday A German broadcast heard here indicated he Eagle went down at the start of a battle which may be continuing be tween a British convoy and axis submarines and svarplanes X Tlie broadcast quoting DNB said a British capital convoy escorted by the bulk of the Medi terranean fleet had been en gaged in the western Mediter ranean since last evening The original German report said the Eagle was sunk at mid day 14 Suspected as Accomplices of SpySaboteurs a tax load of about S20000000 Adding to the scope of the re around Cherkess Other Iront dis patches revealed that the Rus sians were being forced bacic upon Mikoyan Shakhar Mikoyan Shakhar is close to the provincial boundary of Georgia 1he home of Josef V Stalin ad joining the Turkish border A mountain highway leads from Mikoyan Shakhar across the high mountains to the Black sea port of Sukhumi north of Batum and about 110 miles from the Turkish border Eastward from Mikoyan Shakhar lies the Caspian and the port of Makhach Kala 280 miles away A thrust to Sukhumi on the Black sea might cut off Rus sias Novorossisk and Tuapse naval bases and ports The German radio claimed on the basis of rumors abroad that the United States and Britain are urging Turkey to permit Ihc Rus sian Black sea fleet to pass through the Bosphorus straits and escape info the Mediterranean The German statement was coupled with an implied warning to the Turks to maintain their firm attitude Ankara dis patches last week said that if the Black sea bases fell the Russians would be compelled either to scuttle their warships or permit their internment by Turkey be cause no Bosphorus passage would be permitted Every occupied city town and hamlet in the north Caucasus was reported in flames or ruins as the Germans advanced southward H was emphasized that the Germans were pouring in new re inforcements every hour reckless ly attacking day and night in a determined effort to reach the sen Fighting constantly spread to new areas and in most of them it was admitted the Germans were advancing but gallant Russian rear guard actions were taking a heavy toll Around Krasnodar the enemy drove an armored wedge into so viet defenses on a narrow sector and rushed up reserves to widen the breach The Russians re grouped counterattacked pinned the enemys flanks and wiped out the vanguard of the wedge The Germans hurled immense forces into their new effort in the Cherkess area Cherkess is an autonomous province Attacking in force in the vi cinity of a large inhabited point the Germans pierced soviet de fenses on one sector and threat ened to envelop the entire Rus sian defense system The Russians threw7 in reserves however cut off the Germans and compelled them to retreat chief executive believes the debt can be amortized Prolongation of the war for a number of years of course would put the public debt higher than the foreseen now by Mr Roosevelt His ideas about amortization however would re main basically the same accord ing io his recent conferees Officials who have talked with the president recently on the sub1 ject of postwar finance also saidj Mr Roosevelt spoke highly of the postwar planning of former Secre tary of Treasury Andrew Mellon who served under Presidents Harding Coolidge and Hoover The president it was understood from these sources thinks Mellon had excellent plans for postwar finance but made a serious fiscal mistake in removing the wartime tax load too soon thus releasing a flood of surplus spending power which Mr Roosevelt believes con tributed to the 1929 stock market crash The presidents plan has the dual purpose of preventing a runaway postwar inflation and paying off the war debt The annual gov ernment expenditure figure re portedly envisaged by Mr Roose velt would be higher than thc peace years before the present war and probably would leave room for some of the public works the president has been reserving for his postwar kitty to help take up the slack of a country turning from wartime to peace time enterprise Total expenditures in the 1938 fiscal year were and 58938000000 in 1939 In 1941 this figure jumped to SI2710000000 as the nation began to convert and produce for war and in thc fiscal year ended June 30 1942 expendi tures totaled 532431000000 The present lax load exclud ing the additional levies being considered by congress is ex pected to bring in about S18 000000000 this fiscal year As suming thai congress enacts the present tax program at levels approximating those under con sideration about will be added o the tax struc ture ported action thc ltaiian high command said that one of its sub marines scored two torpedo hits at dawn Tuesday on a large war ship of unascertained type strong ly escorted The admiralty said at least one enemy submarine operat ing in thc same areA as the old carrier already had been sunk indicating that the Eagle went down fighting German broadcasts Tuesday night said four torpedo hits sent her to the bottom in the western Mediterranean The Eagle carried a customary complement of 748 men and 21 or more planes The vessel was begun in 1013 as a battleship the Almirante Coch rane ordered by Chile from a British yard Work ceased with the outbreak of the World war and in 1917 the British purchased her from Chile and redesigned her as an aircraft carrier She was commissioned and given trials in 1920 but was not finally completed until 1924 She was completely refitted in 1932 The purchase price and other expenditures brought her cost to more than obout WASHINGTON decision lo ask treason indictments against possibly half of the 14 persons held as suspected accomplices of the eight nazi spysaboteurs may be announced late Wednesday by Attorney General Biddle The justice department chief and some of his lop aides have been reviewing the evidence against the 14 for several weeks Treason is the highest of all crimes and carries the death penally By constitutional pro vision conviction is not possible without the testimony of at least wo witnesses lo an overt act or a confession in open ceurl The first conviction under the federal treason statute in nearly 150 years was that of Max Stephan who was sentenced to death at Detroit last week foi aiding a German war pilot who had escaped from a prison camp in Canada Ten of thc 14 are held on gen eral charges of assisting the eigh saboteurs six of whom have been electrocuted one of whom has been sentenced to life imprison ment and the other to 30 year in prison The two who escaped the death penalty George John Dasch and Ernest Peter Bur ger may be used as witnesses against some of the alleged ac complices Here are thc 14 Helmut Lciner 33 German citi zen alleged to have aided Edward John Kerlin leader of the Florida roup of saboteurs Anthony Cramer 42 German TIBET Ganaei RVer L INDIA BOMBA Arabian Sea Say of Bengal ANDAMAN g ts Hi f 4O STATUTE MILES From Bombay to Calcutta came reports of demonstra tions and the shutting down of trade in the Indian cam paign for independence Students drew five at Poona where Gandhi is held and at Lucknow Strikes threatened in the big mill center of Ahmedabad and violence flared in New Delhi United States C of C Says Tax Bill Based on Politics Gable Joins Army as Buck Private born naturalized citizen accused of helping Werner Thiel a mem ber of Kerlings party Miss Hedwig Engemann 35 na tive of Brooklyn N Y alleged to have helped Kerling by chang ing bills of large denomination The nazis brought more than 5170000 in American money with them Hermann Heinrich F a j e 36 native of Hamburg Germany nat uralized citizen charged with having agreed to keep a money belt containing S3fiOO for Hein rich Heinck one of the four sabo teurs who landed on Long Island Mrs Maria Kerling 38 widow of the Florida group leader Ernest Herman Kerhof 36 Germanborn naturalized citizen alleged to have been intimately associated with Mrs Kerlin No actual assistance to the saboteurs by Mrs Kerling or Kerhof was Fire Control Program AMES statewide fire control program for rural Iowa is being presented to civilian de fense leaders attending a civilian protection training school in ses sion at Iowa State college this week The program emphasizes Ihe elimination of fire hazards on Ihe farm In another economic matter of more immediate Importance the president was reported to have told conferees that there must be some form of overall control over wages and that the situation is too urgent to subject the question to a congressional debate which might last several months Consequently Mr Roosevelt has asked Atty Gen Francis Biddle to the presidential war powers a view toward taking executive action on thc wage situ ation Mr Roosevelt it was under stood was told by his congres sional leaders that it would lake at least two months to pass a brief resolution giving the president complete power to fix wages It wTas then that the president called in Biddle Mr Roosevelts latest public statement on the inflation situa tion was that his studies were still in progress charged in ments original FBI state All of lh above livr in the New York City area Thc fol lowing live in Chicago Mr and Mr Hans Max Haupt parents of Herbert Haupl a mem ber of Kerlingi group Mr and Mrs Otto Wcrgin boll German born friends of thc Haup family Mr and Mrs Walter Wilhclm roehling uncle and aunt of youn Haupt The FBI said lhat the Froehlings were important con acls for the nazi agents and tha heir home was to be the head quarters for the sabotage expedi tion Mr and Mrs Harry Jaques both born alleged to havi aided Hermann Ncubauer one o Kcrl ings group Buy War Savings Bonds and Stamps from your GlobeGazette carrier boy HOLLYWOOD UP Clark Gable one of the genuine he men of thc movies joincti thc army Wednesday as a buck private Thc man with tiie ears and Ihc wide grin who was regard ed until the tragic death of his uifc Carole Lombard as Holly woods most carefree star told the army he wanted to sell no bonds He said he wanted to make no speeches nor entertain any soldiers What I want Gable said is o be a machine gunner on an airplane I want to be sent where the going is tough Buy War Savings Bonds an Stamps from your GIobcGazett carrier boy Mice Fire Repeatedly at Unruly Mobs BULLETIN NEW DELHI India Rioting independence demon strators surged closer to the British American residential section Wednesday and backed by troops willi machine fired on crowds which previously had suffered 12 killed and 35 wounded The disorders were spreading from the old Delhi section to the approaches n New Delhi which includes the British and Ameri can residences and government offices BOMBAY India icxv rioting in which police re peatedly fired on independence demonstrators was reported icsday in dispatches from Wardha iicknow Delhi Poona Nasik Cawnpore and Madras as the total loath roll mounted to an esti mated 30 in spreading disorders At Wardha a center of the All India congress party police fired Four rounds after charges with their batons failed to disperse n meeting which had been declared illegal Many constables were in jured when attacked by the crowd which hurled stones at them after a student bad ad dressed the meeting and urged the people to disperse The crowd refused to leave Wardha is only six miles form Ihc home of iMflliandas K Gandhi in terned congress leader at Sev agram Weather Report FORECAST IOWA Warmer Wednesday an Wednesday n i g h 1 scatterei thundcrshowcrs northwest por lion Wednesday night cast and south portions Wednesday night and northeast and southeast portions Thursday forenoon Scattered showers or thunderstorms Wednesday night and east and south portions Thursday forenoon IN MASON CITY Maximum Tuesday 76 Minimum Tuesday 52 YEAR AGO Maximum Minimum 59 Propose Flat Retail Sales Levy Income Tax Witholding Tax WASHINGTON Pj The Chamber of Commerce of thc Iniled States describing the new evenue bill now before congress a failure Tuesday proposed a lat retail sales tax of 10 per cent nd a 5 per cent withholding tax n addition to income tax The chamber submitted a pro gram to the senate finance com Tiittee which it said would raise 12000000000 in new revenue for var purposes as contrasted with he 56271000000 provided for in he measure under consideration This would be in addition to the which it said was produced by present taxes Declaring a fiscal program based upon politics Is as doomed as a war program based upon appeasement Ellsworth C Alvord chairman of thc chambers committee on fed eral finance said A courageous offensive is re quired to fight inflation Victory on the home front is vital There is no place for appeasers The program passed by the house and now before the senate committee he said failed in both of its primary raise the minimum amount required lo finance thc war and lo provide a control over inflation Alford described the sales and withholding taxes as the only two major untapped revenue sources A retail sales ax exempt ing federal slale and local purchases with an effective rate of 10 per cent and a 5 per cent withholding tax would pro duce more than 10 billions of addilional revenue and would produce this amount cur rently without delay in collec tion he said The treasury slands in the most urgent need of this additional revenue If we avoid the issue in this tax bill we must face it in the next It is time to be realistic The plain hard fact is that we must have the money and there is no other place to look for it The arguments against both sales and withholding taxes are thc same that they fall more heavily on the lower income group and curtail the standard of living But a realistic appraisal of thc present situation compels thc con clusion that Ihcse arc precisely thc reasons why we should have sales and withholding taxes now If 30 million families each had SlOOO more income than last year this would mean S30 billions of new purchasing power competing for a diminishing sup ply of civilian articles Taxes must cut down this purchasing power Otherwise the S30 billions will vanish absorbed by the increased price of goods If we tax away a portion of this purchasing power Pelley Given 15 Year Term INDIANAPOLIS William Dudley Pelley Wednesday was entenced to 15 years imprison ment on his conviction of sedition nd conspiracy charges in federal ourt The sentence was imposed by udge Robert C Ballzell immedi itely following denial of the anti iemitic leaders retrial petition Pelleys attorneys said the case vould be appealed to the U S circuit court of appeals at Chicago Marian Agnes Henderson Pel eys secretary who was con ricted on the lone conspiracy count of the 11 count indictment w iven a two year suspended sen encc by Judge Baltzell Lawrence A Brown an official of the Fel owship Press al Nobleville was sentenced to five years in prison In imposing sentence Judge Baltzell said this is the hardest case I ever had to decide Recover Bodies From Milwaukee Brewery MILWAUKEE but on body had been recovered Wcdnes day from the ruin1 of a brewery warehouse in which 12 workmci perished beneath the rubbic o bricks limbers and empty bottle when the 30 year old building col lapsed In Bombay there were nev disorder but the situation seemec be slightly improved Ther verc no clashes and no gun fire untJl noon and Ihcreafler clashe vere fewer than on previous clays At Delhi a military truck car soldiers was surrounded b i mob near the New Delhi rail station Stones and dus vcrc thrown at the truck At Lucknow constables anc civic guards were injured whei he crowds stoned the police out post of Aminbad Two police car vere damaged by stoning A dozen persons were arrested At Lueknow the united prov inces government issued an or dinance providing stern punish ment for rioters The punish ment ordered was grcated than normally permitted under Ihe penal code for ccrlain classes of offenses Any one fount guilty of causing mischief by fire or explosives will be liable to the dcalb Penally or to whipping Thc same penally will apply I anyone damaging buildings hides or machinery which is use by the government or by commu nications lines At Nasik and in the Bomba presidency 14 persons were kille in the last two days and at Dell 11 were dead In Madras police fired in se defense against a mob that stonetl them wounding three One man wns killed and jeveti were wounded at 20 miles from Bombay Police fired on a mob at Cawn porc and 60 were ancstcd Disorders also were reported at Poona but details were lacking INVASION FORCE ENGAGES ENEMY HANDTOHAND Jap Propagandists Say Encounter Was OneNight Affair By ROGEK D GREENE Associated Ircss War Editor Seaborne American invasion forces officially described ar trained in new twists to the busi ness of killing Japs battled the enemy in fierce liancltohaiul righting in the Solomon island jungles aOO miles northeast of Australia Wednesday and the navy in Washington declared The marines have opened the door to an allied offensive in the south Pacific correspondent of the Austral i broadcasting commission rc orted from an advanced allied ise that there is a general fecl g that our forces arc still making ogress toward their objective lat is the occupation of the lands in the Tulagi area The correspondent said United talcs marines and other shock apparently were firmly cs iblishcd in their counterinvasion ootholds While detailed information was lacking on developments in the six day old battle a Wash ington communique declared operations were continuing on Hie tiny bill strategically im portant island of Tulagi in the southeastern Solomons A Tokio broadcast quoting Capt Shoichi Kamada lapancse laval spokesman at Shanghai persisted in the fiction that the aattlc was over and termed it a onenight encounter The broadcast pictured the sen battle off the 900mile chain of slancls as having hcen fought at such close quarters that United States and Japanese warships ac tually collided Captain Kamada was quoted as declaring that the nutcnmc was a defeat for United States forces a version in sharp con flict with Mondays announce ment hy Admiral Ernest 1 King commander in chief of the U S navy and later word from AVasliinglon and Australia The spokesman said the defeat resulted from the poor training of American forces for night fighting Only a few hours earlier the navy in Washington issued a com munique describing how U S marines staged invasion rehearsals day and night ns a prelude to the attack on the South sea islands in cluding a mock assault under a barrage of live bullets On combat ranges hewn mil of cocoanut and banana groves the leathernecks sharpened their shooting for the invasion opera tions they have now practiced on the Japs the communique said Japan Lost 21 Ships in Aleutians Occupation WASHINGTON price Japan has had to pay for occupa tion of three western Aleutian slands stood Wednesday at 21 ships sunk or damaged an unde termined number of airplanes lost and important installations blasted into uselessness This record of destruction has been run up by American army and navy bombers surface war ships and submarines whose latest exploits were detailed by the navy in a communique bringing thc Aleutians campaign up to date from July 22 Tiic official account brought naval surface craft fully into thc story of Aleutians fighting for thc first time with the disclosure that last Saturday a task force raid by cruisers and destroyers on Japa neseheld Kiska harbor and so surprised the Japanese lhat they replied to Ihe first shells with antiaircraft fire In the course of the raid the navy said shore batteries were silenced fires were started in thc enemy camp area a cargo ship ap encountered was from aircraft1 Following up Ihc raid the next day naval patrol planes dam aged two cargo ships and ob served the sunken hulk of an other lying in the harbor wu lers This vessel said the navy is believed o have been sunk we may preserve thc balance 1 parcntly was sunk and thc only during Ihe bombardment These ship losses raised the East Japs total for thc Aleutians to newlyoccupied Kci islands due The marines put new twists and Iricks to he business of killing Japs Quick shooting at surprise targets Knock ing sniper dummies out if trees Knives small arms and ju iitsu were important train ing V f As the leathernecks fought to broaden their hardwon gains under furious Japanese counter attacks supporting allied flyers struck triphammer blows at Japa nese bafes and shipping along a 3 000mile front north of Aus tralia Gen Douglas MacArthurs head quarters said united nations war planes bombed the big Japanese base at Rabaul New Britain for fourth time in four days at tacking an airdrome from which Japanese planes could be sent to aid the defenders of Tulagi Other allied airmen were offi cially credited with destroying two and possibly five Japanese Zero fighters over New Guinea ngnin bombing Japanese ships below Timor island in the Dutch Indies and attacking the nine sunk one believed sunk and 11 damaged All the actions reported by the navy were in the Kiska area ex cept for a Japanese aircraft attack Aug 3 on Ihc U S destroyer Kane off Atka island about 305 miles cast of Kiska The dcstroyer was unharmed Kiska is the Japs main base although the navy has reported their occupation of Altu and Agattu at the tip of the is land chain The navy reported that Kiska was bombed once July 22 and twice July 29 in addition to the other actions reported A n d on Aug 4 army pursuit planes shot down two Kawanishi seaplane bomber in an action no details of which were given north of Australia Better Late PORTLAND Ore E S Ott ordered Corp Fred An gell to get him a pack of cigarcls Angel hiked five miles but found thc canteen closed That was in France in 1918 Sunday Brig Gen E S Ott at Medford Ore will receive his cigarcs from civilan Fred Angel 1 has just learned where his onetime commander is Buy War Savings Bonds and Stamps from your carrier boy ;