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SAVE ME--I AM PAPER-- 1 Am Ammunition For War-- Don't Waste or Throw Me Away THE NEWSPAPER THAT HOME EDITION MAKES ALL NORlSi IOWANS NEIGHBORS f VOL. ; Associated Press and United Press FuH Leased Wires (Five Cents a Copy) MASON CITY, IOWA, WEDNESDAY, JANUARY 19, 19W This Paper Consists ot Two Sections--Section One NO. S9 RAILROADS ARE BACK IN HANDS OF COMPANIES Estimate Settlement to Cost Roads About $350,000,000 Annually Washington, (If}--The nation's y rail transportation system was back in the hands of privaTc operators Wednesday but Senator 'Wheeler (D.. Mont.) warned that it still faces a critical manpower problem. President Roosevelt announced settlement oÂ£ the wage dispute, with raises all around, late Tuesday, and War Secretary Stimson thereupon ordered the seized railroads returned to their owners, effective at midnight. ' 'The roads, once threatened by later disputes of the 350,000 members of five operating unions and at 1,1M,MO non-operating workers, including shopmen, clerks and others, were taken over by the government on Dec. 27. three days before a strike-call deadline. Â· The settlement and some earlier agreements, which labor and management sources estimated would cost the roads approximately, $350,000,000 annually, plus retroactive pay awards, provide generally for increases of 9 cents ah hour to the operating workers and increases of from 9 to 11 cents for the/non-ops. The 15 non-op unions originally had asked fov 20 cents an hour more and the operating brother- h'odds .a 30 per cent hike, or S3 a day. whichever might be greater. In his announcement, Secretary Stimson said the agreements, which were approved by Wage Stabilization Director Vinson. "provide assurance that there will be no stoppage of rail service and that the employes of the roads will continue :to discharge their responsibilities 1 faithfully and conscientiously so that there may be no diminution in the rising tide I of our military might." Senator Wheeler, however, who Is chairman of the senate interstate commerce committee, said the military draft and the lure of higher wages In war industry are thinning personnel ranks to dan- gerno* leveUÂ£^;-:.~:.: 'Â·".. " ; .j^..;J-;; _ a " Â·" "IÂ£" somefiilifg" 7isirtT?3oncptq; relieve Â· this -situli*fiÂ«rii*.7tnef^on- lahari said, "we are in for serious [Ttrouble. . Â· Â· Â· - Â· . ' . "Railroad men are being drafted Â«yery ; day and there are thousands of experienced railroad men in the armed forces. 'The railroads are so vital to the prosecution.of the war in the transportation ol troops, arms, equipment, food and everything else that we can not afford to take [,chances on adding to the thous- i ands of idle cars we. now have I because the railroads' can't find I experienced m e n so vitally [needed." He said there had been instances of men being returned by line services for work in aircraft (plants and other war plants and I that such a course to relieve the [railroad manpower s h o r t a g e [merited consideration. Meanwhile, Wheeler and Sen- fator Reed, (R-Kans.), are await- fing war food administration j(WFA) action on their request for [rescission of an order diverting 1200 box cars daily to -Canada for [moving Canadian wheat 'feed into his country. Reed said WFA Administrator iMarvin Jones "has indicated that Ithe order will be vacated and the f railroads left to work it out 1 themselves." , If this isn't done, Reed said, he land Wheeler will introduce a res- lolution "to require that the order ( b e vacated." BATTLE IN NEW BRITAIN RAIN--A drenched marine (left) raises his hand 'for the signal to fire a 75mm. howitzer as the Americans battle the Japs at Cape Gloucester, New Britain, in a pouring r ain. Fighting on the invaded western end of the island has been vicious. YANKS TIGHTEN GRIP ON ARAWE Continue Drive to Knock Out Keystones By MORRIE LANDSBERG Associated Press War Editor American "Bushmaster" troops pioneers in deadly jungle warfare, have tightened thc invasion grip on the Arawe peninsula ol New Britain as a part of the general allied offensive to knock out, n one way or another, the Habaui- Kavieng keystones of the enemy's southwest Pacific defense system. Allied planes engaged the Japanese in other sectors, pouiidinpr at their installations alone the northeast coast of New Guinea in support of ground forces-headed toward the Nipponese air-shipping center at Madans. Aided by pfcines, tanks and artillery; ..the -. 158th Â·. (Bushmaster) STIMSON SAYS TROOPS RESENT LABORTROUBLE Declares Industrial Unrest Must End to Keep Up Soldiers' Morale Washington, UP) -- Secretary o War Stimson Wednesday asked congress for national service legislation with the assertion that industrial unrest and a "lack of a sense of patriotic responsibility" on the hoiac front has "aroused a strong feeling of resentment and injustice among the men of the armed forces." "It will be tragic indeed if the discontent and resentment felt by our gallant soldiers on the fighting fronts burn deeply and fester in their hearts," he told the senate military committee. "Unless we set forth boldly to stamp it out, the hot flame will destroy some of the great love of country which, alone, can make a man endue*-- the hardship, the pain and death which service above self has offered them. "The voices of these soldiers speak out very clearly today in demanding that all Americans accept the same liability which a soldier must accept for service to country. They are far away now, but someday they will return." Reviewing recent labor troubles in the railroad, coal and steel industries, the secretary declared "it does not require great imagination to realize the effect of these occurrences upon our troops,'' and added: "I believe it,is hazardous to belittle the effect which such a situ- Reds Gain 7 to 12 Miles in Drive for Baltic Sea Mrs. Jetmund, 24, Wife of Sailor, Perishes as Fire Destroys Dows Restaurant Dows--Mrs. Raymond Jetmund. 24, was burned to death in a fire which destroyed the Sanders cafe, formerly known as the Rock Island cafe.-at 3 a. m. Wednesday. The fire was discovered by Dr. G. E. Schnug who was returning home from making a professional call. He turned in the alarm and aroused Mr. and Mrs. Eldon* Sanders who lived with their daughter, Mrs. Jetmund, in apart- ntents above the cafe. Mr. and Mrs. Sanders succeeded in making their escape from the burning building in their night clothing, but It was impossible to arouse their daughter who perished in the flames. Mrs. Jetmund occupied a room alone in the upstairs quarters and assisted her parents in the business. Mrs. Jctmund's husband is in the U. S. navy and has been stationed with our forces in the Ha- 1 DIVISIONS OF NAZIS THROWN BACKINATTACK Devastating Barrage on North Front Made Before Tanks Advance .vaiian Islands. There are no children. The fire department was prompt in responding-to the call, but the flames had made such great head-1 London, (UP.)--Powerful Russian way that it was impossible to save armies drove toward the Baltic the structure. sea along a 25 mile front west of The origin of the fire was un-1 Leningrad_Wednesday and Soviet determined Wednesday morning, Premier Josef Stalin announced but it was thought it might have tna (. been due to faulty electrical wir- 105,000 ing. back 714 to 12','j miles in 5 days No arrangements had been made O f bloody fighting, for the funeral Wednesday morn- m nazi divisions--possibly men--have been thrown ing, pending word from thc hus- | band in Hawaii. Blasting through German fortifications paralyzed by the massed guns of the red army, soviet infantrymen stormed and captured the fortress town oÂ£ Krasnoyselo, 15 miles southwest of Leningrad on the Leningrad-Pskov railroad line. German field guns that had Newton, (flV-District Judge Henry N. Graven, Mason City. Wed-1 *Â·**^"^mo^th's^'e'o^the^- nesday denied a request for appointment of a receiver for the $20,000,- r-7-Ti-iqt r-initil" fell to Ihe 000 Iowa Southern Utilities company of Centervillc but ruled invalid !."" et t ". oops as they s w e p t 39,460 shares of stock held in the*: through Krasnoyselo and drove company by Martha Bechtel ot well as a number of other charges oll down the rail line toward the relating to Bechtel financing ac-1 Estonian frontier, 65 miles south- Graven Rules 39,460 Shares of Bechtel Stock Invalid LATEST STYLE FROM CAPE GLOUCESTER -- After Â·waging'through'-the stinking muck "of-New Britain's hot, steamy jungles, U. S. marines in the Cape'Gloucester area loll near their foxholes awaiting the call to battle. Leatherneck ; at left has solved the sticky weather problem. MAXIMUM FINES GIVEN ANACONDA 4 Defendants Sent to Jail in War Fraud Providence, R. I., (JP)-- The maxi imum fine of 510,000 has been im- I posed on the Anaconda Wire and Cable company of Pawtucket, and 1 4 defendants sentenced to jail and | a. fifth placed on probation in the war fraud conspiracy case against the company. Judge John P. Hartigan imposed the fine and sentences Tuesday and termed the company the chief culprit. He said the company "corrupted these other defendants and did not hesitate to' corrupt women employes and ordinary laborers." Sentences of 18 months each were given William H. Horley. former manager, and J a c o b .Eagleson, former superintendent. Lowell K. Morrow, chief inspector, ^^ was sentenced to 15 months. Wil;^H liam Eagleson, 64, head of the water test room, who is ill, received a year and a day term. Robert L. Wright, former electrical engineer, who pleaded guilty and testified for the government was placed on probation for two years. The company and the defcnd- aants were found guilty of conspiracy to defraud the government by production of sub-standard army field wire, for the signal corps. JUGOSLAVS TRAP GERMAN FORCE Wild Fighting Reported in Rugged Hill Country I.'ondon, (JP)--Jugoslav partisans have trapped a German motorized division, of 400 vehicles near Lipovac in western Bosnia and wild fighting now is progressing through rugged h i l l country against t h e encircled nazis and a second division rushed to its assistance, Marshal Josip Broz ' (Tito) ; announced Wednesday. The nazi relief expedition, T i t o's broadcast communique said, broke through partisan lines toward Jajce. Tito's former headquarters, 30 miles south of Banka Luka on the Vrbas river. Bitter fighting ensued and thc issue apparently was still in doubt at the time-the bulletin was issued. Meanwhile units of the 3rc Jugoslav corps, suddenly takinj the offensive, -were rcporlc pushing the Germans back in tlv vicinity of Maglaj, Tuzla ant Vzornik in the eastern Bosnia The heaviest fighting was in thi Tuzla area, where the partisan; were attacking in force, said Tito's bulletin. War Secretary Sir James Grigg Tuesday told thc house of com mons that Jugoslav partisan have tied down at least 125,00 German troops, and said the Ger man drive which began in Croa tia laic in December was "a fail urc." All possible aid was be ing supplied to Ihe partisans, h added. BOND CAMPAIGN GAINING SPEED Encouraging Reports Come From Rural Areas Des Moines, (fP)-- The .111) War oan campaign for S17 (,000.000 ained m o . m e n t u m in Iowa Wednesday as it moved. into its nd day. First reports to the state war inance committee indicated that esidents of the Hawkeye state ere swinging behind the drive vith reassuring vigor; Several counties, including Clay. Madison anil Green, indicated they loped In be completely over the op on their quotas within a few days: , Bond sales were reporter! to be larticularly encouraging in a num- er of rural areas. Three townships in Adair county and one ill Lucas county already had gone over the top. War finance committee officials said'the first statewide figures on towa sales probably would be announced Friday or Saturday by the federal reserve bank at Chicago. "!. LI Clark, executive manager of the committee, cautioned that it would be a Ionic, hard pull to reach Iowa's F. bond quota.of S66,- 000.000. ''This is not a one day effort." he said.-"It will take sales effort right up to the final days of the campaign." infantry., sprang", i won IfJOO yards of Japanese territory close to the American defense perimeter above the neck of the Arawe peninsula. The Bushmasters, seirt in lo reinforce midwestem elements who landed on the southwest coast of New Britain Dec. 15 and now hold the Arawe beach positions, killed 139 Japanese at a light loss to themselves. Their personnel, made up largely of men from Arizona, New Mexico. Colorado a n d ' O k l a - homa, includes Indians from 20 American tribes. Thc Arawe attack and the U. S. marines' successes on invaded Cape Glouces'ter, northwest across the island fitted in with the gradual building up of the campaign against Rabaul, prime Japanese base on the northeast corner of New Britain, and Kaviens. much- bombed harbor at adjacent New Ireland. As Rear Admiral Robert B. Carney put it, "ihey are next on the list." Games', chief of staff at south Pacific headquarters, declared "we plan to put them out oÂ£'business" but adedd cruptically that it won't be accomplished "in accordance w i t h any familiar pattern." He said, loo. that it's not logical to expect the allies to permit continued Japanese occupation of lit- , tic Nauru island, their only base between the Americans' Solomons- Gilbert island offensive arc. ation will have upon the ultimate welfare of our democracy. "If it continues, it will surely affect the morale of the army. It is likely to prolong the war and endanger our ultimate success, and when those troops come back to us it may have an effect upon the future of our nation which is disturbing to contemplate." "The men in the army sec this country divided into 2 entirely distinct classes," Stimson said. "On the one hand are the men who are fighting in' the armed forces. They have been told not only thatTthey must serve, but the ' Davenport. The ruling on the Bechtel stock method :o'f tiieir service' has been choseri'for them. They are facing a duty which they cannot escape and which involves the possibility of death or mutilation. "On the other side they see that the government imposes no corresponding duty upon the remaining men of the nation and even permits them to leave tlic most important war jobs without re- had the effect of removing from t h e u t i l i t i e s corporation t h e Bechtel interests which had been largely responsible for developing the company from a small, single concern, to a utility service system which now includes 140 communities in southern Iowa. Attorneys declared the net effect to the stockholders of Judge Craven's decision was to increase the value of the holdings of the 4,000 "small stockholders" by 11 per cent, which was the proportionate amount of stock held by Bechtels and ruled invalid. Including the Bechtel stock, there Â·were 35S,WÂ«-:sh'sres of cwnaxm stock outstanding in the company. Martha Bechtel is t h e . wife of George M. Bechtel -head of George M. Bechtel and company, Daven| port, bond firm through which most of the stock transactions in- olved in the growth of Iowa S o u t h e r n Utilities corporation have been handled. By removing the Bechtel inter- tions, were not involved in the W est. case. Receivership was not neces-l Ropsha, 7 miles west of Kras- sary to make any recovery from | noyselo and another strongpoint the the Bechtels, he said. gard to thc needs of the country." The armed forces, he stated, are "beginning to feel that they are being discriminated against." ' Stimson branded as wishful thinking all talk that the war is almost over. "In fact the war is not almost over," he declared. "To me it appears to be the plain duty of the congress to give our troops this all-out necessary backing,'' he told the senate mili- . For the present, allied bombers gave Habaul and Kavieng a respite--probably because of the weather--and concentrated instead on northern New Guinea. They dropped 120 tons of explosives on the enemy's supply dumps at Hansa bay, between Madang and We- wak. Other attacks hit Bogadjim, south''of Madang. Naval units bombarded the Japanese barge center at Gali, southeast of Madang, while enemy shipping suffered further crippling blows in attacks which destroyed barges and small craft along the coasts of the Admiralty islands and New Britain. Â· tary committee as it reopened hearings on national service legislation requested by Presidenl Roosevelt to prevent strikes and make virtually alj. able-bodied men and women subject to assignment to essential tasks. Appearing as the first administration witness before a committee which includes many senators hostile to thc idea of labor conscription. Stimson said nationa service would hasten victory, and asserted: . "Every month the war is prolonged will be measured in the lives of thousands of young men, in billions of dollars." ests. Judge Graven left full control of the firm in thc hands of more hail 4,000 "small stockholders." In denying the receivership pe- :ition, Judge Graven held that here had been no charge of insolvency against the company, :hat its management was competent and able, that a receivership action and the subsequent sale of property would result in heavy loss to the stockholders and mean the "financial death" of the company. The receivership action had been brought by J. B. Wcede, Des Moines real estate man, on behalf of the Â· state. Begun in 1938, it charged the company with allegedly" violating state statutes in the issuance of certain stock and in other transactions concerning stock. Other suits--one in Centerville and one in New York state--are on file against the utilities coin- any, but are not a part of the ction ruled on Wednesday. Each jit seeks 35,000,000 damages for .ockholdcrs. The judge h e l d thc Bechlel lock invalid on the grounds that 8 BIG BARGES ARE LAUNCHED Floated on Missouri by Water From Fort Peck .-Kansas C/ity;V..Kans.* #P)-- Kansas-buirt fleet of 8 se'a-gdirig invasion barges floated down the Missouri viver Tuesday night in water released from . the Fort Peck. Mont., dam a month ago for that specific purpose. Launched at docks of the Darby corporation where the Kansas river empties into, the Missouri, the big boats, capable of carrying tanks and men to hostile shores, had been held in readiness for the rising water. It was the first time that navigation ever had been attempted on the Missouri in winter when the river is low. A month ago army engineers had water released from the Fort Peck dam, hundreds of miles upstream, at a time when it would reach Kansas City at a period favorable for its temperature and water flow. They followed the water closely as it twisted along the channel. They knew several days ago it would reach Kansas City Tuesday at a time when mild temperatures prevailed a n d the stream was open. Monday the stage was 2.9 feet. Tuesday it was up to 4.9 and ris- in the Germans' hedgehog defenses facing Leningrad, also fell to thc attacking Russian armies. Stalin's order ot the day, broadcast by radio Moscow, indicated that Russian armored spearheads were striking into the nazi lines at several points along the 25 mile .battle front in a series of lightning encircUngi moves that chopped the German front into scores of isolated pockets. .." PRECEDES M o s c o w, (U.PJ-- The battle of the war was .. . bloodiest reported ing. It was move. lime [or the fleet to Illegal Parking Notice Sent to Sailor Now on Duty in South Pacific San Pedro, Cal., (*P--When Don Finch failed to appear in court on an illegal parking charge, police got a b e n c h warrant and wrote that if he didn't ccme in within 5 days, they'd- come and get him. Finch replied: "I'll glady pay the fine if you'll come and get me." He's a sailor somewhere in the south Pacific. Report Badly Mauled Nazis in Ukraine Are Regrouped to Hold Line New York, /P)--The London radio said Tuesday "there are signs the Germaqs are regrouping their badly-mauled panzer divisions in the south Ukraine bulge in preparation for another desperate attempt to hold the line of the Bug river and retain control of the great trunk railway running down to Odessa." The broadcast, recorded by CBS, quoted dispatches from Moscow as the source of this information. SCREEN' STAR ENTERTAINS Clinton. (/Pi--Boris Karlpfl, stage and screen star, entertained patients at the Chick army hospital here. . . Wade,,RAF Ace, Dies in Flying Accident Allied Headquarters. Algiers, (fP)--Lance C. Wade, RAF squadron leader from Tucson, Ariz., and top-ranking ace of this theater, met death in a flying accident in Italy Jan. 12, it was announced Wednesday. Wade, regarded by many as this war's greatest fighter pilot, had shot down 25 enemy planes in combat. ARRIVES IN ALGIERS Allied Headquarters, Algiers, (U.R)--Col. Oveta Gulp Hobby, head of the WAC, arrived here Wednesday. She was accompanied by Maj. Betty Banelel, WAC liaison officer with the army air corps. FORMERLY OF ALGOXA Sioux City. iP\--Services were held Wednesday for Mrs. George C. Call, 70. widow of a Sioux Cily investment banker. Mrs. Call, a native of Algona, died Sunday. Police Find $10,000 Loot and Cooked Meal Ixw Angeles, (/P)--Three policemen set to solve a clothing slorc burglary, found S 10.000 worth iif a Slo.OOO stock in a residence. Although thc occupants had f l e d , they left a meal cooking on the stove which the officers ate while they awaited arrival of a truck. ' Weather Report FORECAST Mason City: Partly cloudy and colder Wednesday night; lowest temperature about 20; fresh to moderately strong winds Wednesday; Thursday fair and mild Iowa: Fair Wednesday night anc Thursday: moderately coldei Wednesday night; little temperature change Thursday. Minnesota: Fair and cold Wednesday night. Thursday partly cloudy and warmer. IN MASON CITY Globe-Gazette weather statistics Maximum Tuesday 51 Minimum Tuesday Jiight 25 At 8 a. m. Wednesday 31 Tuesday's maximum was th highest January temperature re corded in Mason City since Jar 28. 1931. when 53 was reported It was also the highest of the cur rent winler since Nov. 3, when 5 was recorded. YEAI? AGO: M a x i m u m Minus R Minimum Minus 20 Precipitation Trace t a meeting .fox^rccapitalization f the company and reclassifica- on of thc stock on Aug. 1, 1338, j he Bechtel interests held some 1 00,000 shares of no-par common lock which Judge Graven termed worthless," by reason the corn- any, while keeping up bond in- ercst payments and so forth, was n arrears about 82,000,000 on ireferred stock dividends. Yet. by the Aug. 1, 1038, mccl- ng thc judge said, the Bechlel lock was exchanged for 39,460 hares of new common stack vorth S15 a share, thereby put- ing this stock on an equal basis vith preferred stock held prior to :hat meeting. He held the action was a case of taking "5600,000 out of thc jockcts of the other stockholders" :or the Bechtel stock and termed t a "gross wrong." The judge held thai the records did not substantiate claims of the plaintiff, Weedc, that slock in the company had not been issued tor cash and that stock had been issued in excess o[ authorization by thc state executive council, which must pass on such matters. To the charge that the company had not certified issuance of stock to the executive council, he held that it had acted in good faith and had done so to the best of its ability. Judge Graven, who announced his decision in on oral opinion to thc attorneys in the case and a small crowd of interested spectators, said that charges that thc Bechtels sold utility properties to the Iowa Southern at higher prices than they paid for them, as Gunner of Jap Descent Holds Flying Cross and 5 Air Medals Los Angeles, (U.R--T/Sgt. Ben Kuroki. flying fortress gunner ol Japanese descent and holder of the distinguished flying cross and 5 air medals, Wednesday was headed for a crack at the Japs. A veteran of 30 bombing missions in the European theater including the Ploesli oil field raid, Kuroki said the fighting had been easy compared to his struggle to be accepted as a regular crcw- member. Even the Spaniards considered him a Jap. Forced down in Spanish Morocco and flown to Spain with thc rest of thc crew, Kuroki had the Spanish officials talking to themselves, he said. raging deepjn Germany's defense belt west of Leningrad Wednesday after soviet tanks smashed through, the nazi lino^in the wake of an artillery barrage so devastating that it left enemy troops literally numbed and speechless. Thc pulverizing Russian push south of the Baltic town of Oran- iciibaum, co-ordinalcd with another strong drive thai penetrated thc nazi right flank south' of Leningrad, opened thc long-awaited soviet offensive designed to roll back the besiegers of Leningrad to the Baltic. Front dispatches said the northern column was advancing steadily through the world's most formidable defense zone, taking one concrete blockhouse and one fortified village after another while mobile guns blasted enemy gun emplacements and firing points, Swarms of soviet fighters and Stormovik assault planes strafed and cannoned German infantry as: they emerged from trenches and forts for futile counterattacks. Dispatches reported that the initial soviet artillery barrage, loosed by hundreds oE massed. cannon, was thc most destructive ever luid down on a battlefield. German prisoners brought into one Russian command post had "They couldn't figure They wouldn't believe I it out. was an American Japanese. They thought an American Japanese wouldn't je fighting the axis." Kuroki won his 5th air medal [or volunteering for 5 additional oombing missions after completing the regular tour of duty of 25. To his squadron, "The Eager Beavers," he is known as "most honorable son." ' His home is at Hershey, Ncbr. SHEPHERD'S CROOK STOLEN Chicago, (U.R)--Police Wednesday were looking for a shepherd's crook which some crook stole from the automobile of Stephen A. Haboush. Haboush said he doubted that the crook could get very much for the crook which lie used to tend when he was his father's sheep boy in Palestine. NEAR ROVNO -- Developments on the Russian front included: (A) Russian forces striking hard in thc Leningrad area: (B) also moving forward in thc sector north of Ncvcl: (C) Gen. Ro- kossovsky's army battled toward P i n s k : (D) Gen. Vatutin's forces closed in on Rovnp; and (E) heavy fighting north ot Uman.