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Special Treatment Looms for Factories WASHINGTON—President Roosevelt, it was learned Mon day, has assured the army and navy of preferential tax treat ment for manufacturers who intend to expand facilities which could be used to provide national defense needs, The internal revenue bureau would be able to accord special tax treatment under its adminis trative authority, it was said. New legislation would not be required. It was understood the com cessions would be closing agreements between manufac turers and the government which would stipulate in ad vance the rate at which plant ‘ depreciation and obsolescence would be computed. | Last September, Secretary of the Treasury Henry Morgenthau, Jr., informed both the war and navy departments of his willing ness to negotiate closing agree ments in the case of army or mvy} contracts subject to the Vinson-' Trammell act. ‘This act limits eontractors’ profits on naval ves sels to 10 per cent and on military and naval aircraft to 12 per cent of the contract price. Such a closing agreement, Morgenthau explained, would set forth in advance of the ompletion of contracts the nanner in which the internal ‘evenue bureau would treat the cost of any special facilities in the computation of the con tractor’s’ profits under the Vinson-Trammell act. Normally, in the absence of such an agreement, the cost of new facilities may be amortized by de preciation or obsolescence allow ances determinable only upon completion of the contract. | Recently, representatives of two| airplane engine manufacturers sounded out the treasury on pros-[ pects for closing agreements lnl cases involving plant expansion for foreign war contracts. These manufacturers pointed out that the additional facilities would be avail able for contracts from the United States government if an emergency developed. Several other manufacturers, who would be asked to pro duce planes and other military equipment if this country were drawn into war, have indicated reluctance to expand plants to meet foreign demands because of the fear they might be sad dled with extra taxes after the European orders end. Before negotiating any closing | agreements, it was expected that the treasury would first consuilt with the war and navy depart ments. At present, the army and navy certify to the treasury their opinions concerning the proper percentage of cost to be allowed as a deduction under Vinson- Trammell act contracts. F. R. Flip Flop Over - Neutrality For Our - - . Ships Anticipated WASHINGTON—President Roosevelt's flipflop with re spect to transfer of American vessels to Panama registry re veals how difficult it will be for the U. S. to maintain its neutrality in the present Euro pean conflict. The incident demonstrates that the only sure safeguard is American public opinion, Here's is what happened: When the proposition was submitted to the maritime commission, they ap proved it without any questioning. Secretary Hull gave it his bless ing after a telephonic exchange with the maritime commissioners in which they did not give him the full, and fake data. When he learned that the proposed transfer was a phoney sale, he denounced it as a moral violation of the neu trality act. Meanwhile, Roosevelt had given his O. K. to the deal in a Hyde Park interview with news papermen. It looked as if there would be a public clash between the president and his secretary of state, The president backed down-—not because of any legalistic argu ments which Mr. Hull presented— but because of the adverse reac tion on Capitol Hill and through out the nation., Had it not been for popular resentment over the proposed transfer of shipping registry, President Roosevelt would have sealed at Washington the preliminary approval which he gave at Hyde Park. -~ - - Wilsonians like Joe Tumulty, President Wilson's secretary, are (Continued on Page 4, Column 4) e ———————————————— WEATHER Fair tonight, Wednesday. Tem peratures: High, 58; low, 38. Sun rises, T:22; sets, 4:30, - S - | fooilas ) { = bas ‘,;l‘.;} SR g L ey < b SRy s TR R A - vl ; LeyN R S ; ¥ R L bR SR T s 4 H : v o ‘ § L i &figfi, S TS 3 g LN Tu bR e i J % na e s Wi g e N . , o % Ue N , . 2 o e TR B - —— e iR § & ' b et dae i St K E 3 H H ¥ S bl b : : i e ; feo - 2 . ] A Rt E b - e ¥ & i fo e 2o s : u b A 5 G % § % ~% ?‘f (3% b fe g ~:,,. - b 3 ;‘ 2 el e " v R BED g B ; PUD PROGRESS THREATENED IN COURT ACTION Right Of Districts To Condemn, Buy Private Interests In State Court ~ OLYMPIA Development of public power districts in the state was seriously threatened in a suit appealed to the supreme court Monday involv ing the question of whether districts can condemn and buy private power companies with a vote of the people. The question was brought to the court in a certiorari action by the Grays Harbor public utility dis trict, which was enjoined from paying $2,842,000 for the Grays Harbor Railway & Light Co., on grounds it failed to secure ap proval of the voters on the pur chase. So vital was the Issue in volved that the Washington state Grange, the Washington Public Utilities association and many of the state’s score of districts intervened in an ef fort to upset the lower court decision, John A. Bayha and the city of Aberdeen secured a permanent in junction in lower court barring ac quisition of the private utility and issuance of $3,350,000 in revenue bonds to pay for it and for subse quent expansion. The bonds would be retired solely from the district’s earnings. In a similar action in Skagit county, Judge E. D. Hodge of Tacoma held shortly after the Grays Harbor court decision that he believed no election was necessary before the Skagit power distriet couMd acquire the Sedro-Woolley util ity properties. Attorneys for the Grays Harbor P. U. D. urged the supreme court to decide the case as soon as pos sible, since its contract with the private utility to purchase its hold ings expire Jan. 2, 1940, They also said if the court could decide the case by Dec. 15 the district would be able to withdraw its $43,000 tax levy on the county if the decision were favorable, The two main questions pre sented in today’s appeal were whether an election was nec essary and whether the district commissioners passed in suf ficient time a plan and system resolution to acquire the util ity. The lower court held the resolution had to be passed before the district was com mitted to purchase the private company. If the supreme court holds an election is necessary before private holdings can be purchased, it would seriously hamper develop ment of power districts because of the usual difficulty in getting voters to approve bond issues of any sort, even though they are not general obligations on the public. ! | HEALTHY BOOM ’ SAN FRANCISCO-—An expand ed manufacturing and construc tion program for Pacific coast | industry to “help keep this nation |out of war” was urged Monday by |John P. Frey, president of the | AFL metal trades department. ! “A continued healthy boom is in |store for the Pacific coast ship building industry as a result of the merchant marine expansion program undertaken by the U. 8. maritime commission,” he said. “However, if European condi | tions continue as they are for any |length of time, there will be an | even greater and more urgent need wfor increased manufacturing of 'v!w materials on the Pacific {coast. This expansion is impera tive for an adequate national fde!eme e i’ Pointing out that western ship | building yards were one of the | weakest links in the national de fense organization, due to lack of ship construction, Frey said the | maritime commission ship con | struction program would result in thousands of skilled workers being |employed in half 5 dozen coast | plants. SCOUTS" FOUNDER DIES PLAINFIELD, N. J.—-William |D. Murray, 81, pationally known | civic and religious worker and one of the founders of the Boy | Scouts of America, died Monday at | his home after a logg iliness, ‘Nothing Wrong,’ Mprs. Pantages Says Mrs. Beatrice Veryl Pantages, pictured above with her attor ney, Charles Conlin, testified Monday in Hollywood there was nothing wrong in her friendship with Pete Bedwell, Palm Springs bartender, as charged by her estranged husband, Rodney Pan tages, heir to the Pantages the ater fortune, in his divorce ac PEOPLE IN THE NEWS— Former Kaiser Escapes Death e gy R el i Former Kaiser Wilhelm of Germany had a narrow escape 'trom death when a cyclone | passed within 50 feet of him as he walked in his private park at Doorn, Netherlands. It tore down three beech trees each at least three feet thick. The former kaiser re turned to his house highly alarmed and said prayers of thanksgiving . . . Warden Joseph E. Ragen of the Tllinois state penitentiary rejected several toy machine guns and pis tols in a truckload of discarded playthings charity workers had brought to be repaired by inmates and distributed to the poor. “They're out,” he said. “The boys are apt te get ideas with them inside the walls” , ~ Dr. Kakoto Oka, former manag ing director of the Toyko Nichi | Nichi and the Osaka Mainichi, two |of Japan's most important news ipnpcn. died at Tokyo after a long illness. Dr. Oka, 66, was a Jap anese delegate to the Versailles peace conference and attended the international labor conference at Washington in 1919 . . . Chairman John D. M. Hamilton {of the Republican national com | mittee announced at Washington that the organization's executive committee would meet there Dec. |7 to map plans for the 1940 politi leal campaign. The conferees, he I said, would not discuss plans for ’m GOF’s convention since that 'mtm is “solely the prerogative | of the full national committee” . , . | Maurice Renaud, popular mys {tery story writer and author of | scientific and philosophical novels, ' died at Paris . . ~ Marie Teresa | Benavides, 16, daughter of the | president of Peru, and Francisco | Mendoza Canaval, 25, were mar !ried at Lima in the private chapel |of the presidential palace. Canaval |is & member of a prominent Lima ifamily . .. | Federal Judge Paul J. MeCor idah granted a non-suit because of lack of evidence in the case of | Comedian Charlie Chaplin, charged | with plagiarism involving the idea for his motion picture, “Modern g‘nnu" Michael Kustuff, Hussian lwnur. filed the suit charging that | Chaplin based his picture on &n il et auaion ! Rites Held for | Justice Butler ST. PAUL, Mian.- The body of Associate Justice Pierce Butler of {the U. S supreme court was | buried Monday in Calvary ceme | tery. | Before the burial the body lay iin state for two hours in Lthe | rotunda of the state capitol. A { military guard of honor stood at i the head and foot of the casket, tion. She sald her husband knew of her acquaintanceship with Bedwell while she was wvaca tioning at Palm Springs In March and April. Pantages and two detectives had testified they raided Mrs. Pantages’ bed room on the night of May 1 and found Mrs, Pantages with Bedwell, idea taken from a script by Kus tuff. Chapiain denied seeing Kustuff's script and said he first got the idea 18 years ago. 1 b R RS e R ‘Bridges Accused Of Making Trouble Along Docks SAN FRANCISCO- A statement attributed to Harry Bridges that “1 am the clerks’ {union” was reiterated Monday by the San Francisco Cham | ber of Commerce as it sought [to end a strike which has tied ‘up the San Francisco water | front for ten days. I W. W. Monohan, executive vice president of the chamber, address ed a letter to Henry Schmidt, pres |ident of the International Long shoremen’'s and Warshousemen's {local 1-10, in which he declared |that five representatives of the Waterfront Employers’ association {had heard Bridges boast that be alone controlled the striking Ship | Clerks’ association, which is affili | ated with ILWU., Bridges is pres {ident of the Pacific Coast ILWU and California director of the CIO, Monohan charged that Bridges had declared publicly that be would violate any written contract between the employer and union at any Uime the contracts were found to be unfavorable to the union; that he recently deciared there could be no common ground of agreement between employers and employes; that he had sald he believed all ship eperators and waterfront employers should be {done away with and that he was responsible for opem viciation of the award of the maritime arbitra tor named by the secretary of labor und that this viclation re sulted in the arbitralor's resigna tion “These statements sre all & matter of record” Monochan | continued, “and 1| refer to i them now as justification of | our contention that practically ’ all of our waterfrent problems are directly attributable Lo the determination of one man lo incite dissension between the | employers and the employes | and to continue the devastal | img tieups of our pert which | have characterized his direc ! thom of maritime labor since 1984 Bchmidt answered Monohan with a flat denial that Bridges ever had made the remark attributed o N, ; e .y ‘, Y ‘ 5 —', o 2 - , .T 9 4 J i . . A T figifi‘m.;m:fii 'awm VOL. 36, NO. 288, i Czech Bullets Hit Two Bodyguards of President Hacha During Uprising LONDON--The Daily Her ald reported Monday in a dis patch from Zagreb, Jugo slavia, that German troops had been forced to fire artil. lery into workers' quarters to subdue last week's Czech up- | rising at Prague, and that at tempts had been made Friday to assassinate Dr. Emil Hacha, | president of the Bohemia- | Moravia protectorate, i Although the Germans had n-! nounced the execution of 12 ring leaders of the uprising, the Dflly! Herald Dispatch sald Nazi police | and storm troopers killed or! wounded 30 students when they | stormed the Czech University, and | that after they captured it, they uu:(. students against classroom walld and shot them, leaving their | bodies propped against the walls | for 24 hours as & warning. 1 1 There were many other casn alties In two days of furious fighting the W sk The newspaper's cor-' respondent said he got W-’ mation from an unnamed foreign commercial attache, who had just | Tleft Prague. He told of two days | of furious fighting during which | Czech students barricaded their | university and fought off German secret police and storm troopers | for hours by showering them with | ‘deskn, busts of Adolf Hitler and | other misslea from windows, The informant sald the trouble started lnat week when students broke up the lecture of & new Nazi professor be cause he insuited them. They peited him with books and he fled. The students then bar ricaded the university against | the Gestapo men whe arrived ‘ in three buses. “The rebel students were ‘wul? until afternoon to pull down their Czech national flag and sur- | render,” the informant said. They | refused and two armored ocars arrived and took up stations in! (Continued on Page 16, Column 5) | U. S. ASKED T 0 WASHINGTON - Rodrigue Car dinal Villeneuve, spiritual leader of Canada’'s 4,000,000 Catholies, urged the United States Monday W siay out of the European war and help promote & return among bations to the Christian foundations of so- Clety. In & radio interview Sunday, he said the United States could best serve the ends of peace after the present war s over “if not drawn into the conflict.” He was questioned in the inter view by Rev. Maurice Sheehy of Catholic university. The cardinal is attending ceremonies in connec tion with the observance of the 150th anniversary of the Catholie hiersrchy in America, BANK TRANSACTIONS VIR & oaverdnaieq .. RN Elmer Dover’s Resignation - Will Be Effective Dec. 31st Elmer Dover closed another chapter in & most colorful political career by tendering his resignation as federal district court clerk to Judge John C. Bowsn, senior U, 8. Jurist in the state, Saturday. Dover's resignation becomes ef | fective Dec. 31, His resignation comes not as & surprise. Bince Judge E. E. Cush man retived several weeks ago, speculation in court and politieal circles has been rife with rumors regarding dispensation of the clerk ‘#hip & post worth more than $5.000 a year to its holder. | Judge Cushunan's retirement left TACOMA, WASH,, TUESDAY, NOVEMBER 21, 1909 Don’t Fail Te Resnd The Times B For Newe, Features Pictures 14 SHIPS LOST AT SEA DURNG LAST § DAYS| THE WAR AT SEA British naval authorities Monday listed 14 ships sunk in the past nine days, most of them by mines in the North Sea during the week-end with A heavy loss of life. They be lieved Germany's unrestricted sen warfare had begun, The loss of the British n.ni Torchbearer and possibly nime of tucrwolu,\vnnpfl“u-‘ day morning. It was the seventh Normlnmmkunmlfi-{ urday, The list also included the 4,208-ton British ship Vensilva, “sunk since Saturday” and the 345-ton British ship Wigmore, not previously reported. No further de taile of the loss of these two were: O | authorifien ingisted that the mines were German, becauss, ‘they said, British mines are % equipped that they are harmiess ‘after they break from their moor inge. A week-end gale apparently had seattered German mines, drive ing them in on the British Isles and the Danish and Belgian coasts, but British authorities said the mines in the shipping lanes were set de liberately, probably by German submarines, and had not drifted there, ; (In Hamburg, the newspaper Hamburger Tagelbatt carried an article by A. Muersr, retired Ger man vice admiral, suggesting that Germany throw its surfgos naval eraft Into war against m 1 convoys, to assist German sl planes and U.-boats, "Becauss it's no longer & battle but & ruthiessly conducted ecommereial war which bas become the chief naval task.”) The ship losses were given ~ follows | For the week ending last Batur a-y.mmmu.mmp:! Cresswell, 275 tons. Ponzane, 1,348 tons. Matra, 5,008 tons: Weed. mmm;mum‘ tons; Biackbill, 2,402 tons; Terch. boarer, 1267 tona; Wigmore, 345 (Continued on Fage 16, Column 3) SAY PROPOSED FILM STRIKE CALLED OFF HOLLYWOOD - Widespread re ports were glreulsted Monday that the threstened strike of studioc workers, scheduled for Tussday, definilely had been cailed off and that producers and lead ery of the 27 AFL unioms Inveived had compromised the unions’ de mands for an immediste 0 per cepl pay increase, KINGNTON, Jnmsies A hurr cang was reported today off the inlands west of Jamica Fioods and heavy rain blocked roads sl & score of places and hindered trassport to Kingston. Judge Bowen ss senior judge, lflmmmd” sitions. | Dover, 66, said he had no Immes diate plans for the fulure and made no comment regarding bis resig - nation further than remarking that his position “reslly ended when Judge Cushman retired” 1 ~ Dover has held the position slightly more than a year. He re placed Edgar M. Lakin, who re tired on Sept. 1, 1938, | ~ Daover has enjoyed s career such | (Continued o Page 30, Colume ) “ l'n nv RETREAT FRON ENELAND COAST Anti-Aircraft Gum ~ Force Invaders Te i I‘u'r‘:‘ I‘:ck; Naszi LONDON Anti-airersft guna fired Monday on.a wh :m flying at » grest T.W town. No air rad was sounded, : Crowds stood in the streets and watohed the machine flying slong the const in an easterly direction. Heavy anti-airersft fire also was }Muu»“m i Observers saw ahell bursts one circle the plane. The anthalreraft zmhnn away for severnl minules. gik v o evetimant flying high over the the plane flew guns ware fired but " away In an essterly direstion. &o & ¢ mgnmng‘ N“W“d'fi“-“ ‘mmuumm‘ cortain whether ao'rm | shot down or erashed trying lumhmh | The German plans was fired on imnmmm by fiying over Holland tervitory. It erashed within the Duteh from. Usr. The pilot was illed. (At the propagands -&hmflnl.m had yoit bowm revsived of & mh-‘. pinne crashing o Mol ) | m-:aum.n-n Gormn fiying woke iy 1o German fiying boats a Duteh tervitorial waters. A Duleh plane fired on thres Nasl flying l:.u. Ons of them returmned the - The first version of the ineldent wan that the Nasi piane was shet down, but later it was said that 1t was uncertal whether the eraft ‘had been hit by the anthaireraft fire or whether 1t crashed whils trying to evade buileta Slayer Awaiting ; Lile Sentence! POCATELLO, us.J.su»f graves, jr. 18, Posatille former conviel, Monday swaited senlenc ing to life mprisonment by Judge €. J. Taylor in distriet court Wads nesday for fiest degree murder, A jury convieted Hargraves om | the first degree murder count snd recommended jife wt umumummi day i i Hargraves was convisled of | saying ¥. V. Huster, Alameds town marshal, when he offiosr interfered with HMargraves ab | lempt to see Bis estranged wife and child af the Bome of Ns fathar-in-law last July 12, i . ‘Name Seattleite : - - Census Director SEATTLE - Bap. Warres G Magouson, D, Wash, todey s nounced appuintment of Joseph P. Adams, Besllle attorney, as cpnsus director In Besltie snd Kiteap county. Theodors Pruitt of Brem orton Was mamed assistant Girector. . Adsms formerly was seoretary of the King County Democrabie innlnlm | ~ VOLCANO FLARES UP CATANIA, Maly -~ A M-hour “danger walch” was eastablished Monday on voleanic t Btos which was violently mmlé as laly's most unpredictable val cano, it flared up suddenly Satur day, spouting flames snd lave, It had been quiet jox manthe, - Tragedy ls Climas To Quarrel Last grapher, shot and hilled o s m:u Monday. mn:fi ond Wl annoyeq vernl s soes, | Mo was walling fn the downtewy [ neetion with ansther givl when :t‘:mmwmfi "".........""“..'..‘2-. -t SEToE ~' Y ‘,‘V-':“ wvw e Z’(" wae e aal of an ol she was oifting in Ms sutomebine [ voo & drepetnes s, ol .-: M‘u take h;.hl‘l. QWQWMQ ‘ Coutious seieelion of & Jooy | Superior Judde Wrmest M. Casd's ’m Monday made & sow Sard o the trisl of Chauscey 7. M, 30 year-ald Ruston tavern eperaton, who ia charged with deiving while intawieatad nat Jan. § when bis aar struck Mre. Ruth M. Pusen o S ‘u.u..m.. opposite the Temple Ihsenter ln that sesident. Mrs. Pusen, S of 107 80. George ob., had bar sight leg completely seversd at Lhe knes. Rarious condition of the injared woman for & long time snd & civil personal injury st growing oub of the seeident heid off triak of the Crimingl action ageinet Husd - Attorney Rebert 5. Absl, repres wnting the defundast, and Deputy Prosscutors Muge Metuier, jr., sod Dewitt € Nowiasd questioned svery jurer af grest length on prejudices for or sgainst drinking and agsinst persons in the tavern usinrae Mre. Vuson, whoss oivilk sult againet Hurd was setiled out of mmmmmz‘r& ent 1o witness Lhe man's SEATTLE CLERKS GET " NEW UNION | | MEATTLE - The Retall A :—mm-' : The contract will run thees It included one weskls vaealion with pay for employes of nensty 109 stoves. : BOY, 16, ACCUSED OF - THEFT OF FIVE CARS f:;:ir::amm pect “l:- -uy..on:tw'_f ; = -*-,.....”3 3 o 4 Chebalis, R