Indianapolis Times, Indianapolis, Marion County, 3 July 1941 — Page 1

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53—NUMBER 98

FORECAST: Cloudy; scattered light showers foday, tonight and tomorrow; warmer tomorrow,

THURSDAY, JULY 8, 1941

Entered as Second-Class Matter at Postoffice, Indianapolis, Ind.

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PRICE THREE CENTS

Marshall Asks Power To Use Troops Outside H

EDS RETREATING. NAZIS SAY:

The New Tax Schedule

WASHINGTON, July 3 (U. P.).—Here is the complete list of new taxes which the House Ways and Means Committee has approved in the largest single revenue program in the nation’s history:

INDIVIDUAL INCOME TAXES—$1,154,500,000.

Normal 4 per cent rate continued. Personal exemptions of $800 single, $2000 married and $400 for each child retained, except the a widowed head of a family cannot deduct $400 for the dependent that makes him or her head of the family. New surtaxes begin at 5 per cent on the first taxable dollar of income, after exemptions and deductions. Man and wife living together must file joint return. Special defense tax, 10 per cent of normal and surtaxes, retained. ESTATE AND GIFT TAXES—$113,700,000 . Present $40,000 estate exemption retained. Present $40,000 lump sum and $4000-a-vear exemptions continued on gifts to individuals. Rate of tax sharply increased in lower brackets, with graduated scale upward. Gift taxes are 75 per cent of estate taxes.

. EXCISE AND MISCELLANEOUS TAXES—$904,200,000

Distilled spirits: Increased from $3 to $4 a gallon, Wines, cordials and liquers: Increased from 6, 18 and 30 cents a wine gallon to 15, 35 and 65 cents in the three brackets; 14 per cent

alcoholic content; 21 per cent and 24 per cent. Automobile sales: Increased passenger cars and trailers from 31 to 7 per cent; busses, trucks and accessories from 2% to 5 per cent. . Admissions: Exemption reduced from 20 to 9 cents. Tires: Increased rates from 2% to 5 per cent per pound, tubes 41; to 9 per cent. ‘ Telephone, telegraph and cable tolls: New rates starting at 25 instead of 50 cents of toll charge. The brackets: 25 to 49 cents, 5 cents tax; 50 to 99 cents, 10 cents tax; $1 to $1.49, 15 cents tax; $1.50 to $1.99, 20 cents tax; $2.00 to $2. 49, 25 cents tax; each additional 50 cents, 5 cents tax. ’ Passenger transportation, rail, water, air, bus: 5 per cent of the fare (35 cent exemption). Telephone bills: 5 per cent. Jewelry, clocks, watches, etc.: 10 per cent on the retail value. Photographic apparatus: 10 per cent.

REFRIGERATORS AND SPORTING GOODS

Mechanical refrigerators, including commercial refrigerators and air conditioning equipment: Increased rates from 5% ‘to 10 per cent. Sporting goods: 10 per cent. Matches: 2 cents per thousand. Radios and parts: Increased rates from 5% to 10 per cent. Luggage! 10 per cent. SEBEL Phonographs and records: 10 per cent. Candy and chewing gum: 5 per cent. . Musical instruments: 10 per cent. Bowling alleys, billiard and pool establishments: ws per alley

or table. Club dues: Lower exemptions, redefine base.

Playing cards: Increase rates from 11 to 13 cents a deck. Safe deposit boxes: Increase rates from 11 to 20 per cent of annual rental. Cabarets: 5 per cent of total charge.

operated by state or Federal government, but Including planes of commercial airlines: $5. SLOT MACHINES AND PINBALL Slot machines and pinball machines, exempting those taking only a penny and those actually vending merchadise such as cigaret machines: $25 a year. Optical instruments, other than eyeglasses: 10 per cent. Office and store machines: 10 per cent. Electrical appliances: 10 per cent. Rubber products, not including footwear, tires and tubes, or surgical equipment: 10 per cent. Electrical and metal signs: 10 per cent. Washing machines for commercial laundries: 10 per cent. Soft drinks: One-sixth cent a bottle. Furs: 10 per cent of retail price:

Use of automobiles, yachts and airplanes, not including those

A ST Ae

Cosmetics: Revised base. Cutlery: 10 per cent.

| Proced from

creasing to 7 per cent thereafter.

1936 to 1939, inclusive. Capital stock tax increased valuation.

8 per cent thereafter. ;

Withholding tax on non-resident aliens and non-resident foreign corporations: Increased from 16% to 27% per cent,

\ CORPORATION TAXES—$1,332,000,000

ure reversed so that excess profits taxes are computed full net income instead of after deduction of normal corte tax. Present normal corporation tax of 18 to 24 per cent

Both capital investment and average-earnings methods of computing excess profits retained. Capital investment system devised so that present 8 per cent exemption is in force up to $5,000,000, de-

Excess profits rates increased 10 points in each bracket to 35 to per cent; special excess profits tax to prevent “war millionaires” posed at rate of 10 per cent on difference between the percentage earned on investment in the tax year and the percentage earned in

New corporation income surtax of 5 per cent on first $25,000 and |

from $1. 10 to $1.25 per $1,000

U.S. Notes Goon Sale Aug 1in 'Lay-Away’ Tax Payment Plan

WASHINGTON, July 3 (U. P.).— Secretary of the Treasury Morgenthau today announced a “lay-away” tax payment plan that would permit lazpayets to meet the heavy 1942 bill through systematic NE over a period of months. The plan also is designed to bring tax revenues into the Treasury as much as a year ahead of time.

Morgenthau told a press conference that under the “lay-away” plan, taxpayers may purchase Treasury netes this year for application on their tax bills next year. The new tax notes will be put on sale Aug. 1 in two series—one series in denominations of $25, $50 and ; the second series in denomi-

(Continued on Page Three)

TUCKER LANDS JUICY PLUM AUTO DIVISION

Schricker Concedes His Right to Name 500 to Jobs In License Section.

By EARL RICHERT

Through one of the strangest paradoxes in recent State political history, 33-year-old Secretary of State James M. Tucker today emerged as Indiana’s most powerful Republican as a direct result of the pro-Democratic Supreme Court ripper suit decision. He assumed the control of the automobile ‘licensing sections, one of the State’s juiciest patronage plums, under 1937 and 1941 laws. : Had the Supreme Court held the main G. O. P. decentralization bills constitutional, in its decision last week, Mr. Tucker would have shared control of the department with Republican State Auditor Richard T. James and Democratic Governor Schricker.

Sole Exception

As it is, the Court’s decision left the four elected Republican officials without a shred of the patronage they had expected to receive under the “ripper program” and placed all patronage powers in the hands of the Governor, except in cases where there was a legal statute in existence pertaining to the control of the department. The Motor. Vehicle License Bureau was the only department for which there was such a statute, and thus Mr. Tucker gets the fat patronage while his Republican col-

leagues get none. Poiten] 1 ~observers - believe: : that}

with the control of the 500 employees in the State House and in the 136 branch offices throughout the State, Mr. Tucker will be able to gain control of the Republican Party in Indiana, since these are practically the only State jobs that G. O. P. members will get,

Schricker Statement

The announcement of the assumption of the control of the department was made by Governor Schricker in a press conference. The Governor said he was convinced that the statute “clearly substantiates the view that it is the responsibility of the Secretary of State to collect license fees and that if the Secretary of State was to be charged with this responsibility, he should have the right to name the men to do the work.” The Governor pointed out that although a petition for a re-hearing on the “ripper case” is still pending, and thus the case is not closed, that he did not wish to “consider this matter in the light of legal technicalities.” “The disposition and transfer of these duties to the Secretary of State is a decision dictated not only by the advice of my counsel but it is in keeping with and honoring the pledge which I made both in my inaugural address and in my speech (Continued on Page Two)

HEAT WAVE CRACKS AND CITY SLEEPS

Cooler Again Tonight; Rain,

Warmer Tomorrow.

LOCAL TEMPEATURES

6am ....73 10a.m..... 7am ....7 1llam..... 8s.m. ..., 78 12 (Noon) .. 67 9am ....71 1ip.m.....67

The week-long heat wave cracked last night and gave Indianapolis residents their first good sleeping =~ight for a long time. The second good one is coming up tonight. But it wil] get a little warmer tomorrow. That's the word from the Weather Bureau, which also predicts scattered light rains for tonight. and tomorrow. This relief from the heat is a part of an arrangement of air masses that has brought lower temperatures from the Dakotas to Ohio. : That is the general pattern of weather you'll have to work with

70 68

over the long Fourth ot July weeken

Dome Stuff

The Capitol dome . . . even the bats shun the place.

SCRIBE CLIMBS CAPITOL TOWER

Follows Hot Tip, Finds Even The Thermometer Wilts. Up There!

By RICHARD LEWIS . There is a theory that the city editors of newspapers sometimes ein. = strangely Jauman. fash= ion.

Like everybody" else, they suffer when it gets hot, they get thirsty and long for a tall drink of iced beer in a cool nook. In short, it is said they have feelings. It is my pleasure to report that such is the case at The Indianapolis Times. It seems that the City Editor had a bad night. It was hot, he .tossed and turned in bed, perspired and couldn't sleep. But he was prone to take an optimistic view of - his discomfort yesterday afternoon, as he lolled . in. the breeze of an electric fan. “I have an idea,” said he, “that hot as it is around here, there is some place where it is a good deal hotter and we have much to be thankful for.”

Useless To Argue

He pondered a moment, sipping ice water and re-wrapping a damp towel about his head. Then a strange light came into his eyes. . “You,” he said, ,“might take a little walk up to the :top of the State House tower. See how hot it] is up there. Go out and buy a thermometer, . 3 “If you come back, write something about how happy people ought to be that it isn’t as hot down here as it gets up there.” It was useless to argue. I recalled how three years ago I climbed to the top of the Monument and how awful I felt afterwards for five days. I had heard the top of the State House Tower and the Monument platform are about the same distance above sea level, only thére isn’t any air in the State House Tower. William Gill, State House custodian, was sympathetic, co-opera-

(Continued on Page Two)

Sam Harris, Ace

Producer, Dies

NEW YORK, July 3 (U. P.).— Sam Harris, 69, producer of many of Broadway's greatest stage hits, died of pneumonia’ today in his Ritz Tower apartment. He had been ill since an appendectomy was performed last March in Palm Beach. Mr. Harris’ condition became critical a few days ago although for a time after his operation he apeared to have recovered. With him when he died was his third wife, Mrs. China Harris, a sister of George Brent, the film actor, who married the producer in March 1939. Also at the bedside was Mrs. Wallace Giblin, be former Constance Talmadge, frienli of Mrs. Harris. >

LONGER DRAFT SERVICE ASKED BY STAFF CHIEF

Emergency ‘Grave,’ He Says in Report to Stimson; Cites Needs. WASHINGTON, July 3 (U. P.).—

: |Gen. George C. Marshall, Chief of

Staff, today urged that Congress immediately pass legislation to permit the use of armed forces outside the. Western Hemisphere. He also asked for authority. to hold selectees, National Guardsmen and reserve officers beyond the one-year period. ‘Gen. Marshall said this action is necessary - to “protect ourselves against the coldly calculated, secret and sudden action that might be

, |directed against us.?

The recommendations were made in Gen. Marshall's 23-page biannual report to the Secretary of War Henry L. Stimson, on the status of the Army program. He warned that conditions have deteriorated to such an extent that a “grave national emergency exists” of a more severe character than the public believes.

“Vital to Security”

“As this report is submitted the possibilities of a year ago have become dangerous near probabilities today, and it is vital to the security of the nation that the hazards of the present crisis be fully recognized,” the General said. “What has happened is history. “Of grave concern today are the contingencies of the present and future. There are legal restrictions

on the use _the armed forces, Which “8h be femoved without

delay. Events of the past two months are convincing proof of the terrific power possessed by a nation administered purely on a military basis. Events of the past few days are even more forcible indications of the suddenness with which conflict can spread to areas hitherto considered free from attack. “It is therefore urgently recommended that the War Department be given authority. to extend the period of service of the selective service men, the officers of the Reserve Corps, and the units of the National Guard.” Asserting our interests are “imperiled” in the present world situation, Gen. Marshall simultaneously asked that legal restrictions on the (Continued on Page Two)

U. S. FORMING TANK DESTROYER GORPS

Part of Prooram Stepping Up Army' to Blitz Pace.

WASHINGTON, July 3 (U. P)= Secretary of War Henry L. Stimson said today that the Army is organizing 22 tank “destroyer” battalions, and has developed a “radical” new type of division . combining mechanized and armored equipment. Stimson told a press conference that the two moves were part of the Army’s program to develop hardstriking units in the era of 60-mile-per-hour blitz warfare. The 22 new anti-tank units, which he said he believed were the first used by any army in the wotld, will be created out of present artillery outfits. Of these, 14 will be attached to infantry divisions, and the other

{tank destroyer battalions will be at-

tached to the Army G. H.' Q. or Corps Headquarters, so that they can be moved about easily to meet any possible attacks. He said that the Army is developing various types of self-propelled artillery which can be used for tank destroying purposes. These consist of self-propelled guns, including the 77 mm. cannon, and will carry protection against aircraft attacks.

LESSONS IN GAS SAVING WASHINGTON, July 3 (U. P).— Ickes today urged city and state

highway patrols throughout the East to make a few “judicious

arrests” to encourage conservation of gasoline and oil by motorists.

Defense Oil C-Ordinator Harold L.|Flynn

Yank New Hero

Here is Pilot Officer Gregory A. Daymond, 19, “baby of the Eagle Squadron,” American fliers attached to the R. A, F., believed to be the new hero mentioned in London dispatches following the air battle over Lille, France. The youngest Eagle is reported to have downed one of three German planes shot down by the American contingent. (Story on Page Three.)

CITY READY FOR 3-DAY FOURTH

Fireworks Shows Carded; Most Stores, Plants Close Saturday.

By TIM TIPPETT Indianapolis observes Independence Day tomorrow with highways stretching before the travel hungry and a varied list of events awaiting the stay-at-homes. This year’s observance, falling on Friday, has given “the common man” a three-day holiday and, from all indications, he intends to make the most of it. A majority of the downtown department stores, restaurants and other establishments, will remain closed through Saturday giving their employees three whole days of relaxation.

July 4 Program

President Roosevelt speaks over networks at 4 p. m. Sahara Grotto program: and fireworks at the Butler Bowl at 5 p. m. . Riverside Amusement Park fireworks afternoon and evening. Gregg Farms rodeo at 2:30 Pp. m. and 8:30 p. m. West Side Legion posts program and fireworks at Coleman Park at 7:30 p. m. - Double header at Perry Stadium between the Louisville Colonels and the Indianapolis Indians at 1:30 p. m.

Even the huge factories, which roar and clang on a 24-hour basis turning out ‘airplane motors, tanks and other implements of war, have declared a three-day holiday. The workers, many of them working six and seven days a week for national defense, will have the first long holiday they have had in many months. The Federal Building and the Postoffice will be closed on the Fourth. However, mail will be delivered on Saturday and skeleton staffs will operate Federal agencies.

(Continued on Page Two)

TIMES FEATURES ON INSIDE PAGES

Clapper ...... 9|Johnson ......10 Comics .......16/Movies ......4, 5 Crossword ....15|Obituaries .... 5 Editorials sree ..10 Mrs. Ferguson.10 (Questions .....10

..10|{ Mrs. Roosevelt 3 Forum ........10|Short Story . Homemaking .12|Side Glances. je In Indpls. .... 3|Society .......11 Inside Indpls.. 9|Sports

Jane Jordan...12|State Deaths. “14

STALIN ORDERS

SCORCHING OF ALL LOST LAND ©

Moscow Evacuates Children in Fear of Aig Raids as Germans Batter Main Defense . |

Lines From Arctic Circle to Ukraine.

By JOE ALEX MORRIS United Press Foreign News Editor

Adolf Hitler's armies hammered at the main Russian defense lines from the Arctic Circle to the Ukraine granaries today. Josef F. stain pledged a fight to the finish by resorting to a policy of “scorched earth” and ceaseless guerilla warfarey The German High Command reported that the fighting power of the Red Army “now seems broken” as the Russians retired all along the 1800-mile front. : Moscow dispatches said the Nazi panzer thrusts had been _|“checked” in fierce battles still in progress on the Central Front before Smolensk and Moscow and on the Tarnopel Front guarding the Ukraine. The communiques of both sides indicated that the Ger: mans had penetrated into the main line defense on pre-war Russian soil only in the Borisov sector east of Minsk ‘and

perhaps in the Shepetovka area, east of Tarnopol, on: the ib.

i SR

Ukraine frontier. ; : , Soviet authorities speeded precautions against German air attacks cn Moscow, evacuating children to the. country,

{and rushing air raid shelters to completion. Sandbags res

piled high along public building fronts, United States Ambassador Laurence Steinhardt in all Americans in Moscow to use the shelter in’ his off residence at Spasso House. 8.8 The American Colony now| gms i comprises eight private citizens and 20 members of the

Embassy Staff. Military developments were: CENTRAL FRONT — Moscow reported that repeated German attempts to cross the Berezina River east of Minsk and on the road to Moscow had been checked. The Nazis claimed they were mopping up the remnants of a Russian Army estimated by the Berlin press at 500,000 men trapped. west of Minsk in the Bialystok sector.

2 Nazi Drives Checked

SOUTH FRONT—The Red Army reported that two Nazi drives via Luck and Lwow toward the Ukraine| is had been checked in severe fighting] & that is still in progress in the Tarno- | i# pol area. The Germans were headed toward Shepetovka, 25 miles inside the Ukraine, and Kiev, 170 miles

Josef Stalin

8|coming into action, supported by

further east. NORTH FRONT — The Moscow communique failed to mention the Murmansk sector, where the Russians previously had been reported putting up a fierce defense. Fragmentary reports via Helsinki indicated that Germans had. pushed close to Murmansk and possibly had cut 100 miles across the Soviet territory south of the port to the shores of the White Sea. The Germans were using many parachute troops but the Soviet Information Bureau said that they were being quickly mopped up as

they landed behind the R lines and that no damage had done. An indication of the ext of such operations was given by one report from Moscow of 80 parachutists landed at one time. Both the Russian and German communiques indicated that for J first time the Nazi military is gathering momentum in the drive for the Ukraine. The Moscow war bulletin, mene tioning a “great battle in the direcs g tion of Shepetovkd,” did not m plain whether the German colur (Continued on Page Two)

Today's War Moves

posed the direct challenge that the

By United Press War Experts Josef V. Stalin, in his extraordinary call to the Russian people, hat

Nazi army is not invincible. To

world in which masiy people, especially in Europe, have come to ; the contrary, he asserted history shows there are no invincible armies

and never have been.

German gains, his words strongly suggested that he feels the battle is only in its preliminary stages. An important point in the speech, which has a direct bearing on the present military = situation, was Stalin's assertion that the “main forces” of the Red Army are now|al

thousands of tanks and airplanes. If that is so, the Russians are in a better position than early German successes indicate. As British m itary expen Roirks out, if Russia

expended the best. of

Stalin’s speech was far from defeatist. While he admitted creat

forces and equipment in an effort: stem the fury of the sudden G man onslaught at the very sta

If, however, Russia still has i |tanks, planes, equipment and ae in |tive manpower which Stalin suggests she has, the German drive migh%

Nazi Plans Envision Conquest of America, Whitaker Told by Pro-German Diploma a

‘By JOHN T. WHITAKER

LISBON, oy 3 The German invasion of Russia is more than an effort to crush and disarm the enemy on Adolf Hitler's flank, according to a source close to the Germans, who described it to .me today .as a bold sparation for the isolation and conquest of America.

e Chicag,

~ Once he has reached Baku in a

the southernmost stretches of Western Russia, will find Iran already in the Nazi camp and ready to join in. a blitz operation Agamst

India,

successful operation .

formant said.

“If Britain is knocked out, you Americans will be too

swift conquest of Africa. This is the German plan, according to this reliable source, who says that the Germans base it frankly upon the relization that either Germany or America must win this war. juan J hands, Hitler will lack nothing vital in raw ma-

With Russia, India and Africa in

“Then Germany will concentrate on the destruction of Britain and the destruction of Anglo-American shipping, working with all of Europe’s shipyards, meanwhile, to build a fleet to work with Japan,” my in-

superbattleship). “Twelve Ger-

ica is easy.”

British fleet to sink one ik (Germany's late Bismarcks—and

mans will have the shipyards and raw materials to build them swiftly—could sweep the seas clean of combined American and British naval strength. With the Anglo-Saxon naval strength gone, South America goes and, with your factories in ruins, the conquest of Amer-

Under cross-examination my informant admits that it is probably not that easy. He admits that the invasion of Russia was undertaken essentially because the German military fear the entry of America into the war and cannot risk being defeated while an armed Russia

the Ger-

going

Hé admits

won in this day when technical advances give great advantages to the offensive. My informant said, too, that if America threw its weight in, now, the German plans would go all wrong. that Russia may lose its Western cities and yet prove as unconquerable as China has proved in face -of Japan. But still, he believes that bile Germans ate

to pull it off.

Why? I asked.. v Traits Bets Sain 1 50 busy. playing ostrich” He “You have had & chance for, 10 days, now, to throw

done? You have done nothing.” What this man says about what the German's plan

your fleet, into the Atlantic to ciean out German subremains on their flank. He admits, moreover, that Ger-. marines, u had a chance to ut Your Bombers over 5 chance out to

Soar to fight. If Britain is not, you will be no match man plans are based on the certainty that only by at-

i Shilianeously with the conquest of India, rich sid important, the Germans will® for. two years hence. Imagine your Navy fryd against 12 Bismarcks. took half the

sonsolidate