Hmtlterson 1'HlttTlKTH YEAR HENDERSON, N. 0., TUESDAY Al Reds Repulse Nazi Offensive rm ^ W Solomons Area Flames With Sea Battle | Is Reported j In Kula Gulf Sea and Air Forcee. Trade Heavy Blows Throughout Sector ot South Pacific Allied Headquarters in Aus tralia. .Inly <»—(AP)—The Sol omons area <>f I In • Pacific offen sive flanu-d with continued ac tion liotli on the sua, where American wavships (larin^iy movnl above the ground front into Kula Gulf, and in the air over newly seized Uendova is land. the high command report ed today. (A Navy communique from Wash ington Monday night indicated Japa nese and American war.-hips were in a battle in tiie Kula Gulf. The Tues day noon communique from head quarters of General Douglas Mac Arthur made no reference to such a battle but did confirm an earlier an- j nourcement from Washington that! United States warships in the gulf had shelled Japanese positions. (Even in the absence of word that major forces were engaged, this new "battle of Kula Gulf" was regarded as o! great significance, for it showed that the Japanese felt compelled to accept the challenge and risk at least a part of their South Pacific fleet in an effort to check the American advance. (The situation appeared to be somewhat similar to that during the lighting for Guadalcanal last fall which culminated in the decisive battle of mid-November when Ameri can t..sk forces smashed a Japanese sea-borne drive to reconquer the is land and thereby secured it lor .American occupancy. The Japanese strategy at that time was io use :i crcasmgly larger forces until the climactic acti 'n was joined.) I-'iies at the enemy air base of Vila, Kolombangara island, on the west side i I Knla Gulf, and Liairoko an chorage. New Georgia, on the cast side, were et both i>.v the shells of the warshins and bombs dropped by Mitchell intdaim bombers the night of July -I and in the pre-dnwn of j •Inly a. I.ater. dive bombers dropped I (inn p>iiml b nubs on liairoko. which ! is above tii" menaced enemy air i base of Murda. al. T reasury Eyes Incomes Upped By War Washington. Julv I! —(AP)—Appli cation of tlic principles of execs.-; prnlil- taxes In war-swollen income-; i:; under Treasury department study, offieial • said today. Intended to avoid jjrnss invqnities and hardship- that might arise from imposition of levies higher than tiiis year's record rates, the plan probably will (-libit! broadening the present system of basic- exemptions to include Consideration of "normal" incoint*. Thus John Doe. whose income rose from a peacetime normal of $2,400 fi year to M.ROfi. would pay more ta\c:. than Hichard Hoc. whose M. Run salary remained c >n- tant. even though bolh pay tiie .-ami* amount niid'-r pivsent exemptions The idea ■-till is in the hands of )er."ar<-h experts whoso problem is contnlicaled by two factors: (I) the «il> ence ol h stnr'eal background f-»i meh :i system. and (2) tin* difficul ty idetermining the point at which J-coine inci'.'ascs can be attributed directly to the war. Treasury authority emphasized it is on|v one phase of the department's continuing inquiry into the entire tax picture. Jones Hits Back Secretary cf Cominoif.-.e Jesse Jones (above) accuses Vice President Henry Wallace of un scrupulous tactics filled with "malice, innuendo, half-truths and no Iruth at all." in a lengthy dcnial of Wallace's charges of "obstructionist tactics" on the part of Jones' Reconstruction Fi nance Corporation. Verbal Bout At New Peak Wallace and Jones Renew Slugfest; President Roosevelt May Intervene Washington. July (i—(AIM — Six-fool-two Jci *c Jones, the j administration's hanker, and Vice President Henry Wallace, who | out-wrestles soldiers at the Stage Door canteen, apparently were | only warming u;> in tiieir week- j long verbal slugging match. To- i day, their appraisals of «aeii ether hit a new high in recrimi nation. The late-' explosion over 111 ■ p"' icies of Wallace's 1j«»:■ iti "I eeonom:<: warfare «"id ■'•"ties l!ecinstruction Finance Corporation—widened the rift so far that perhaps only tii • tirm and personal touch President lJoostvelt can heal it. II s trouble shooter, James |Fl ,Hyi e-, tailed when he made an initial attempt. Jor.es, accuse:! by Wall, r rcls last night. He us- i ~ ..">.•«» word to t'.'ll what lie thinks Wallace—»l nun., of it complimc: I mm:He \ Perkins replied in .1 letter t • the | same group. There w,'- prompt ■••action in the, Senate. Sen top I5t du*•.-. Ilepublici ■ of New Haiepshire. declared h,. uo rencwing lii.- demand for nn invesli-1 gali> n of the exchange-, to be h..11 tllvd by the military a flairs coin*' mittee. "C or press ought t • timl out who i right." lie said. Stock Buyers Are Wary New York. .I'll* "• (AIM I'.uyci «•«•!<• Wiirv in i-il.iy's stock niiirkrt. f'l !<•<•> w i■ i <* i «111;»i Iv • 111\\ ;ir11 ;it (lie Mart m liiirlv In cl.v < l«;i I in;;: . The |);icc lov.t i iii1rr. il- ii.i'l. iH'iir tiic* IoiiiMi hour. \ i.it jott.-i «*i1 lit*r vvjiy of (r.i''i"iis t«» .1 j• i 11' "i no ruled. Prominent on tin1 Kiiimni: side vvm- l'( I- I Colli. I . s. Si(•«'!, C'hry ,-ler. Sl.'inl il f| I '.I "I N .1. Wool worth. Allied CI ru>i< ;tls iind lvi«l iiitin Koikik. I'.snk • tint al intfiA il wrre AiiitH'tidii. (I'uwlrirh. I'tiMc'* Ai'TiitM and iWontu'iinery Wind. Bonds were steady. C'onrmvdil'e pu-lvd up in the morning but »he /■Ajr.g ws; <»■ enMnlly Heavy Damage Inflicted On Japanese Naval Units In Battle Of Kula Gulf Newspapers Cut Aga in XVnsliiti^i'i), inly (i i.\I'>— The war produc.ioii l#o,uil t >day ordered : ewspaper |>i:i>'>> icis lo IVCUICC fill'tll T tt'.C r l "II. U:l.pli< 11 ill r.ewspr.ir. during IJM.'S'- ihirct quarter. The r;it ...n^c up to 5 per cent lor large iri i'lie additional .1 per n-nl re duction clots not apply in the 111 si !!:> t s for newspapers lus iii'4 ics.- tna : 5011 tons .. quarter. 'I hi pi'"\'.-ion. Wl'li said, is cie .-ignco Ik aid lii< operation oi sinalK r newspapers. Last l)cc>'mhiT M newspapers were 1.:t:.t«.cl eaeli < 1:1.. ler to 100 per 1*.nt 01 the tonnage <>1 paper 1 (Sed in p. inline iheii net paid circtilati'>n during tin- corre sponding ciuarter ol I'JM. plu.> a 3 per cent allowance for produc tion waste. It Wat estimated at that time this requirement meant an overall reduction 111 current newsprint consumption of about lo per con1. Allies Raid Continent Large Air Force Roars Over Channel in Daylight; Nazis Report Night Raids Lomlail. July Ii—(AIM—Allied liluiit.v including main s:|iia Krilisli bombers. There v.nv no immediate liritish auiiouiiccim 11' - 1 ■ •ni-fi iniif* anv night activities • t the reich. i.ut .la Lierlin Lr< aoeast. recorded by toe As soc isited l*it.-s. saiit enemy plane. had carried • >nJ ■•nui.-ance raids over western and northern Germany. The daylight .-qnadrons, : lying high in weathtr so tle.ir the French shoreline* w«is c. ilv .-ecu from the LSntUh side of liovcr sirmt. were oij scrved I lead 111^ lor the areii between lieulngne iilid Calais. During the nigh! an KAK plane (iai :af;ed ail arn id vessel ol about 5oo t<-ns 111 a low level iiMaek oil the Dutch coast. t he »ir ministry newa service .-aifl. I'. S. Armv lie; ilip..liters aim •imc id. meanwhile. tlii'* photograph* hid di-ii"-f the (•imii.e lthone ' aelorv at l.e Mails. Knin-e. by i ighlh an lorn- bombers. Tile alinotint e-i.i-ii! -.ild a consider able p'-iuon ol t ie main building* at the l.e Alan lart >ry wiis damaged. OPA RAISES PRICES ON CANNED GREENS Washington. J:My <>—(AIM— New priccs for canned asparagus. mustard greens and turnip were set by the Oltice <>f Price Administration t < >I'A > today. This was the last <>t a series of orders covering the various kinds of vegetables in the 11M3 pack. With allowance.- lor increased la !> >r and material costs, tlit* new reg ulation will evrntually increase re la I prices of a number two can of 'i.-pnrngus by four cents and the same size can of mustard and turnip greens an average of I'i> cents. Allowance was also made for adding on the c".ri-Va''''(' la ther that it was an actioi*-.1,L'" tween fairly l:clit surface f»rc"s •if cruisers and destroyers. Whether bombing planes partic ipated was not known. A Navy e«" >•» " "v,! suf iicient details have not been reco. »-»h to give the results of this engagement, but it is believed that, while some damage was .-ulteivd by the United Siate.s force, considerable damage was inflicted on the enemy." At the same time the Navy an nouncer! that the United States de stroyer Strong was torpedoed and sunk Sunday night while engaged in a previously announced bombard ment of Japanese installations at i Vila i'licl Iiairoko on Kula Gulf. ! which lies between New Georgia island und Kolombr.ngara island in the Mir da airbase area. The n.i\al engagement, first an nounced last night, followed that bombardment. The iMiiu-jon de-tmyi-:- Strorg. cmiris-."lied only I. ' year, carried a Hernial conipleineni of .'->"Ut 2f>'i men. • Slic (was an excel • tonally large ves el. She was ooinn.atid'.-d by C'mian inder Joseph Harold YVel lings n! Kast lioston. M;is<. Whether lie surv \ed was not repor:ed no' was i iiy e timate given ol :iie loss of Jilt. Car Shortage Slows Digging Of Potatoes Norfoi;. July (> — (AP)—After appeal- I hi (-<>11111 v t(irill agents and I Ruvoi'iiii it iiffonlK in slow up «»n p*J talo (l u. hud fallen mi deul ears | ll! till 1. : lly "I KI "\M'I'S ill Pilsloril North C. tui iinci the Norfolk ill i>! V:r«ii.. ;i seareity of rail cars | is iiccim plishiiifj tin- purpose tin wool*. Only :\\ ears >•! V r«:nia potatoes were i>i.. i cd by llu- uiir fund :ul niiui.-tr.it i li'ere yesteiday, ,,nd tlic number v. cump arat \ t ly small ir. North C : li. ii ;il-i>. piieliasors re ported :■ .i iy. *riii.-» f red slowing up "! cli'i Kinu in i' section will more than anything rise to improve llu- crop,| WFA '.r.-men declared. Althi-uu'i Rovcrnment demands and <•;!.' defense requirements have resulted m llu- slow movement nf t a Ir • id i irs into the potato area, the sit. ' a i- in proved today over tlie p ' f \v day.*-. Norfolk S";:th,.,rii l aiir'ad Iicials .-aid They predict-| ed that a quale laeii ties fi>r uettillg all rroj at would be available. FARM INDEBTEDNESS NOW AT 25-YEAR LOW Cm!!' -t .Station, ifaleifih, July <>—j Inere; niortRaRe payncits •>* I .. | mors e rcduccd (he tolal far - mort mdebtedne - the tI State 'he lowe I )• i' in L' yea I s . d ' " W. (i>."divan, •si."' i I di* tfci.i ■ KxicfiKion at Si tc t'olieu" here I v and he ad\ sed Mo t C ii ' :'.rnvve:'., tn Inriiicr red thei.- I commitments lie v rtcd 11)ji 1 diirim: the tn •' ; part of 1943 demands fur loans ' ■ pure1,farms showed a conlim r I Heel"' '' 'hp Federal I .and Hank j.y«V "t*l thit r«h«>r r*.'*!1 t?r I -jTirir *★★★ ★★★★ Continued Fighting AS BATTLEWAGONS SHELLED ATTU A MOMENT OFF ATTU is pictured here, with the 14-inch girns of a U. S. battleship blazing away in the three-hour bombardment that preceded our landing on the Aleutian island. The big ships stood offshore till the Army was ready. Official U. S. Navy photo. (International) Paralyzing Blows Struck At Axis Outpost Islands Few Deaths Over Holiday (By The Associated Press) A nation forced to stay put to a large extent, over the three day .1 illy Fourth holiday week- j end discovered today that war time curtailment of highway tii vel saved scores ol lives. Thousands of Americans had tn loiego motor trips to lavoriu* limiting spot.- hi" luck to L'lir •lim".- farm, l>ut many \vei\- a'; . and whole to tell about »cin:; a wartime homebody instead * being received at a morgue 01 i ho: pital. Trae an As.->oc:ati-d l'i*\.. survey showed tnat at least deaths occurred over thy wee.;- i clid, but only 1127 of these wc'.e | trafi c fatalities. There were it dr .. umgs and 117 deaths from mi rellnneous causes. Forty-one states and the District of Colum bia reported fatalities. This year not a single fire work- death was reported. Holiday Death Toll Is Small (!!> The Associated I'i'e-s) Ann .it- celebrated Hie three-day July Uli week-end without .1 sintih" fata'itv from firework- ard with deaths f- 111 traflic aoeidcits fallai,: to the -mallest number •: rcco.it years. Total fatalities ropi-. tod ii|> t»> lay! hiu ' welt well undei Ml). Violen' deaths from all caases 1 1 the United States, acci'i'dinj: '<> an Associated Press survey, totaled 248. This C'in> -ted of 110 fatalities from traffic .undents: <>" from • - •wiiinfts ard 71 ' miscoi'aiio'ii- cause-, l.ast ve. the toll of trail . deaths nlor.V v • 320 and in ISMI il was ftOO. Clasnl • rationing \va. w > and the ban n firework)' sale* in "any s-'ates «<;< eredited lor reda fn taiit'os North ('iiriillnnV fntaliH l t it* elndec 1 from trail 1 ccident and two II"" drownings. NORTH CAROLINIANS PRISONERS OF WAR \V«» 1 War Dcparlmrnl ■ ad«« pti ' <• 1 »i tin- names or 2d| r s 11 w jiii- h"1d as pr oir-' •. oI v < I \ 1 eii .v '.'111 hy I', > mil IJJI I \ •laisc interned |>v Italy lii'l' M i>im al .lame- H II •e'.', Dn!r!i 0 llarrell. wile. Si I* 1 Captain ttr.— (AIM—Allied air forccs. spearheaded It.v I . S. Hying Fortresses wlnth shot down :>0 Oerinan lighter*. Mruek |)a I a I > / ■ li u I.laws us avis r-Mst aner yesterday in bailie-. I«r air supremacy over >ii ilj and Sar dinia. it was annoiiiteed IimI.iv. Tin* smashing ,icii;il •:'«»1 -i\ the llalllitl nulpo ' 1.111.1 weiil thmtiuii 11> third slraiuht dii,v , Willi liojnbi i i i i:i;a tivi'i (Srrbilll. \1.11 .ilit. lacaia. Sei.ea ami in S.r:iv olid Y:l!aiidl" mi tv. nil .. ail ol .lit in bast-.- Km the (It .• luiiu:; axis aerial licet. Iii "!l hours ending jesirrday. 12 enemy plants were shot down against a loss of twelve allied planes, it was staled olliiialiy. More than tin Liberator unbois I baseci in the Middle Ka-t a ted m the devastating raids, shak . Me sina m Sieilv wi.li nearly .Ta.oon pound.- ut bombs. a con.iiiuaaiiK nl She U. S. i'.inth air force decl.. ed. lilts bl.inl.tliim the ,e. i y :t"ti installation:- i.i Me.-.-ina ' ca .-el «>. tenxivc damage," the con rail way track#, .i roundhouse. .i >vare ht.tise. height y.iid . ml t t. ,/ul barrack:- by 11>*• l.ii >■: ,t . mu in three v.a\ •-. One -tin 1 bmiibs "fell iici'i - ■ lite 1... .. mole." The Liberal • s d'»wiud In < enemy planes ami let lined wit!, at loss themselves. Cotton Prices Are Mixed Ni v. York. .1111> (i (AP> l ■" ■'! lu:.iii-.s <>|niu in cr; a biilf higher. N• • n in- V, tTi cent .ill hlKlllT I" III ll'lll I \ I . • 1111 > •>}. Oi'lubcr l! <• • I ' ! ■ ' I' ■ •. 1 ■. \ : .Inly Ju.-lf". >rt Im jl !i;{ l)c.< it; i!' III lit; Marrll !!»".■• lit. 7 2 Ata.v . . Ill :.<> PAROLES GRANTED TO NINE PRISONERS !: i'i igh .Inly i: (At*) Till. v |h*i ■ .• in I'tcd ■: Mciinri dvjii'Wr in r - dri* at (I uitothor ciiiivit'lal •»< r.i it* -',i • i'"- w • . .in • .. tin. nine n i i IK )'H i «\ Ci(.i\ ti'i"'i Brntighton. T'w- IvC fl included: Th Wilkru. ron Ictwl In Wil?or in 131" ft with i <*: idly wca« Heavy Less Ss Inflicted On Germans Assault Continued on 165-Mile Front Despite Nazi Failure to Penetrate Lines M«i.—Vi cious (rcnsi;iii thrusts l»y armor «' ci ii Ili;i!'j liai'k with heavy I'Wm-s all al< iijr th. H»."> mile wii tral lion: i r..m Oivl t<> I»i*ljr<>ri>(l, till* !{i>>iaiis v>\» >1 iftl today as tin- I«• 11 v «-n|m ;-t 1 •(( per ii'i'it oi total attacking strength. tin- na/.i arni> kept linr ini; into tlii- hcavilt defended positions. !ii milt isolated sec tors. however. Iiavc* they man aged In penetrate tin* defense lines, lied army leaders said. The II !.• ..*i midnight conimunl jiif • -ifi li. ; in it . mi: .1! hour- of the bait'. ' lii'ti ill-;: y u-. destroyed tank and 2lK5 )>!. :ie Thv mid-day cm. .: mq :c reported .in additional I'll! t: 11»ks were knocked 0.1! of the light. including :i number uf the new OO-tnti 'I iuei tanks. In >iio sector alone in the Orel-Kursk area, tlie bulletin said. Soviet troops destroyed 50 out of :i CS<*:*ri.:iri unit >! 100 tanks. The e<>inn:unic|iie :il.- > reported 4.000 Cii i nian.- had been slain in this ; rc:i and L'.onn mure 111 >110 sector of the Belgorod fronf. (The German r< imiir 1 • report ed heavy lighting the !«e':u-■ *!'* and Kursk areas and declared it grew out i " . success!' tal at tack by Crer .11 mtaniry" : the Bolgot "(i sector followed by "strong Mi St' dawn jardment a - •. .1 to <««••*. •>- llus :.ill t:. .mi md '• • |».ith (h 11 j. . t! . ; :.c : the : Jvr: an 'dant y . :id :»»•;>. > i di\ 1 dor v. T Cm-, ni :i- "in- t vine with everything they had—lung rir.gc bal !< itwi's. multiple-barreled nun-tars and mil ■ '•««■*. r .s 1:• 1 wap >ns roll tin- artillery ine'- I ■ '.I ' tie:-: an at leiMOti-d i - -tr.i!e:.iMi .■ Mich as ■aiddt n'\ «\\ v 1 i:j targets -in ;.n ef fort to i- 11'. < the IS 11-shin The various rtis< failed and Soviet artillery iccwilwl in tdlencing a ;m• ■; ■ \I'1 !*0|> . x. • • • \«« >. IJrpnitl • •: <>f "\ rv. •* . v.. ; - it y '•if >tl CC of ; i 11 dniii ' l it'. 11 !..i(i nrrcd t'» • i'I.is >1 til.- h-s'i c! ■ i tllC Uvolvi • .i•-*»■ i"u .■ •iilMiHI'd >t.i!c.v In p.T mit vin'iiU'Mi trip* by "A" cnt'd liuld< . ;% : i..lv !.-| 11. ; fit ■ 'i : < iM-icrii fllllt'.'retHI' 'I C-i»UBl<'.«.«l11f11 N'ld .<"11 I liter."- which mi pre-shia for ■ tiv '1 11 i i" tlit* irjiti'ial 'His wilt c li irn '1 i»lc • r'c driving •II I he Plllilvril -;UM the relltxti* !)<>• i- it li cril t ■ iy Ol'A dlffrlw I'i h i - M. I'. - n '• r\ci.i| days' i.: cii fii ii ni ■ ■■< pi •l>!i-tn. 'I •• Now Jvrst'f rciiriwnliitlvo luld u p"i i< r- thnt under ;i new I"C ;i'»ll"t re I M illy vacation trips l\v "A" <• tvd holders to the ,(•;i "• -o for ;i week. or two weeks • ,i se:'«en fr>i 'he p lvtT-.se of Vfsit 118 • •*nt«r t one similar p •" " •*? p'v.r.i 'c:l