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VOL. LIV No. 53 ANN ARBOR, MICHIGAN, FRIDAY, JAN. 14, 1944

PRICE FIVE CENTS

Allied Plaes

Pom nard

Germany, Rome

Congress Receives
Budget for 1945
Financial Plans Anticipate Downitur in
War Spending; Two Million Less Asked
By WILLIAM T. PEACOCK
Associated Press Correspondent
WASiHINGTON, Jan. 13.-Congress received from President Roosevelt'
today a $99,769,000,000 budget for the 1945 fiscal year-perhaps the last
huge wartime budget-and notably chiefly for a.contemplated downturn in
war spending and upturn in post-war costs.
Although it assumes the war in Europe will still be going on in 1945,
it calls for a reduction from the $92,000,000,000 of war spending in the
current fiscal year, ending next July 1, to $90,000,000,000.-
And reflecting the kind of increases which may be expected after the
war, it provides for $1,252,000,000 for veterans' pensions and benefits, com-
pare with $865,000,000 this year, and for $7,750,000,000 in-interest on the
pudlic eb, an increase of $1,100,000,000 over this year.
.The total in the new budget compares with estimated expenditures
this year of $99,276,000,000 and amounts to an average of $726.07 for
every man, woman and child in the'> ----


R() I'tl Inspects In lvaion)

Defenses

nation.
In a message accompanying the
budget, Mr. Roosevelt vigorously re-
newed his earlier request for higher
taxes, saying the $10,500,000,000 in
new revenue asked by the treasury
is a minimum. He also asked that
the social security tax be increased
one per cent.
"The time to impose high taxes is
now when incomes are high and goods
are scarce," he said.
Congress already has indicated ov-
erwhelming sentiment to turn the
Administration down on both points
by maintaining social security taxes
at the present level while increasing
general taxes only a little over $2,-
000,000,000.
Because of the uncertainties of the
war-and of legislation-it was clear
that the budget, covering some fiscal
matters still 18 months ago, may
come in for drastic revision later.
Mr. Roosevelt told the legislators
that much of the 90 billions put down
for war spending might not be need-
ed.
Roosevelt Returns $1,950
To Treasury Department
WASHINGTON, Jan. 13.- (P)-
President Roosevelt turned back to
the treasury $1,950 of his $75,000
salary in 1943 under his order limit-
ing salaries after taxes to $25,000 a
year.
This was disclosed today in the
budget bureau's table of receipts for
the fiscal year 1943, sent to Congress
along with the President budget mes-
sage.
The President's order limiting sal-
aries was issued in October, 1943, but
subsequently was nullified by Con-
gress. While aimed generally at hold-
ing salaries to $25,000 after taxes, it
also made allowance for certain fixed
obligations including insurance pay-
ments.
N New
Nazis Say New%
Fighter Used
STOCKHOLM, Jan. 13.-( P)-A
new type of high-climbing Nazi
fighter plane equipped with a "glid-
ing bomb" was used against United
States bombers for the first time
Wednesday, a German military
spokesman told Swedish correspond-
ents in Berlin tonight.
(In Washington, Secretary of War
Stimson said the Germans were us-
ing a twin-engined bomber-the
Junkers 188-equipped to carry radio-
controlled glider bombs in attacks on
ocean shipping.
(The Nazi announcement of a new
fighter may be aimed principally at
heartening the German people aft-
er unblanketing of a jet-propelled
plane and the P-51B Mustange long-
range fighter as weapons in the Al-
lied aerial arsenal.
President Ruthven
To Speak on WJR
Dr. Alexander G. Ruthven, presi-
dent of the University, will speak on
"Victory FOB" at 3:30 p.m. tomor-
row over a nationwide hookup on
station WJR.
Dr. Ruthven 'ill discuss some of
the dangers in the post-war educa-
tional field and the present trend
toward bureaucracy.

Reds Stop Nazi
Counterattacks
For Second Day
LONDON, Jan. 14., Friday-(/P)-
The Russian Army beat back frantic
German counterattacks on the road
to Rumania for e second straight
day yesterday in erhaps one of the
decisive battles of the winter, killing
3,000 Germans in "extremely fierce
fighting," while other forces extend-
ed the Russian salient into old Po-
land to an 80-mile front.
Farther north in White Russia
Soviet forces drove to the rail hub of
Kalinkovichi and the regional center
of Mozyr, now outflanked and all but
surfounded, Moscow said. More than
1,500 Germans were killed, many
taken prisoner, and 11 of their tanks
and guns destroyed as the Russians
veached the gates of the two towns,
five miles apart.
,The midnight supplemnient of the
Moscow communique, recorded - by
the Soviet Monitor from a broadcast,
said large forces of Germans were
fighting bitterly to halt the Russians
hammering south toward the Ukrain-
ian Bug River and the Rumanian
frontier.
At stake in this battle-the first
important counterattack launched by
the Germans since the Russians
broke through their lines west of
Kiev-was not only the Rumanian
frontier but the Odessa-Lwow rail-
road, the last communications routef
feeding Germans in the Dnieper
bend. 'The Russians were last report-
ed at Nemirov, 21 miles north of the
railroad, and only five miles north of
the Bug.
To the north the right wing of'
Gen. Nikolai Vatutin's First Ukrain-
ian Army captured the district cen-
ter of Korets, extending the Russian
line into old Poland, and advanced
to the rail station of Tutovichi.

German Field Marshal Erwin Rommel (front) emerges from a
camouflaged gun emplacement during an inspection of defenses on the
invasion coast, according to the caption with this picture distributed
by a Swedish picture agency.

French Troops
Open New Push
Near Cassino
ALLIED HEADQUARTERS, Al-
giers, Jan. 13.-(!P)-French troops
under Gen. Alphonse Juin opened a
flanking drive through Italy's rugged
Apennines Mountains and seized
peaks overlooking Acquafondala, sev-
en miles northeast.of Cassino, while
American infantry in a frontal as-
sault from captured Cervaro pushed
within three miles of Cassino, main
German stronghold on the Fifth Ar-
my front, the Allied command an-
nounced today.
American forces pressed on toward
Cassino after they entered the fort-
ress village of Cervaro at 1 p.m. yes-
terday, while British units on their

Japs' Araw~e
Line Is Raided
y U.S. Troops
ADVANCED ALLIED HEAD-
Friday-(AP)-American troops have
QUARTERS, New Guinea, Jan. 14.,
raided the Japanese ,positions at Ara-
we, southwest New Britain, the High
Command announced today. The
invaders attacked the enemy under
protecting artillery fire Tuesday
night.
<This communique report put a
definite denial to the Tokyo radio
report that the Japanese had recap-
tured Arawe, which was taken from
the enemy Dec. 15.)
Allied bombers continued hammer-
ing enemy bases, dropping 104 tons
at Alexishafen on the northeast coast
of New Guinea, 38 tons at Rabaul,
northeastern New Britain, and 36 at

FDR Discusses
Demobilization
In Budget Talk
Congress Told Victory
Over Germany Would
Release Many Troops
By The Associated Press
WASHINGTON, Jan. 13.-Victory
over Germany will permit large num-
bers of American troops to come home
and important segments of industry
to shift to civilian production even
while the war against Japan increases
in fury, President Roosevelt indicated
today.
"If hostilities end on one major
front before they end on other
fronts," he told Congress in his an-
nual budget message," large-scale de-
mobilization adjustments will be pos-
sible and necessary while we are
still fighting a major war."
The statement occasioned some
surprise in quarters which remem-
bered the storm of Yankee criticism
that burst less than a year ago
around the head of Prime Minister
Churchill when he asserted that a
partial demobilization would be pos-
sible in Britain as soon as Germany
is beaten.
Eisenhower Predicts
With both statements now before
the public-the Prime Minister's sev-
eral months ago and Mr. Roosevelt's
now-it becomes possible to assess
some of the factors which make it
evident that partial demobilization
will begin in both countries after the
European victory which Gen. Dwight
D. Eisenhower has predicted will
come this year.
Outstanding among these are the
outlook for predominantly naval and
air warfare against the Japanese,
with a consequent reduction in the
size of land armies required as com-
pared with the war against Germany.
War Production Meant
Mr. Roosevelt's reference to demo-
bilization was in a broad sense--de-
mobilization of war production as'
well as of men.
It would be a bad guess to assume
that millions of soldiers will get their
discharge papers as soon as Germany'
is defeated. Occupation forces will
be needed in conquered territory, per-
haps even in liberated lands of the'
United Nations.
Gunner To Be
'Stomp's' Guest
Navy Mascot, Now Ill,
To Be Feted at Dance
Gunner, the official Navy mascot,'
may be guest of honor at the first GI
Stomp of the winter season, to be
held from 3 to 5 p.m. tomorrow in
the north lounge of the Union, it was
announced yesterday.
The Navy dog suffered an attack of<
pneumonia last week and was rushedI
to the veterinary, but it is hoped thats
he will be sufficiently recuperated tol
be present at the dance.t
Special invitations have been is-t
sued to women of Kappa Kappa!
Gamma, Gamma Phi Beta, Kappa
Alpha Theta and Stackwell to act as
hostesses, but any woman on campus
is welcome to come, according tot
George Darrow, '46. More than 100
women are expected to attend.
The GI Stomp will follow the sameI
general plan as its predecessors last
summer with dancing to juke boxY
tunes as the main attraction. TheE
purpose of the affair is to give wo-
men and servicemen a chance to be-1
come acquainted, and all servicemeni

are cordially invited to attend. z

left flank fought forward along the Cape St. Georle, on the south tip of
railway leading into Cassino and New Ireland.

German Aircraft Plants
Take Heavy Poundings
Allies Lose 60 Bombers, 5 Fighters in
Greatest Sky Battle Southeast of Berlin
By The Associated Press
LONDON, Jan. 13.-British and American bombers, escorted by
fighters, bombed the outskirts of Rome at noon today, the Rome radio
announced tonight.
A subsequent broadcast from Berlin said 90 raiders made the
attack.
Three Allied craft were reported shot down in an aerial battle that
ensued. The targets were not identified, but the broadcast said civilian
dwellings were hit and that there were casualties.
There was no immediate confirmation from Allied quarters of such
a raid.
Several Allied formations flew over Vatican City, the broadcast
said, but it did not even intimate that the Vatican was attacked.
LONDON, Jan. 13.-W)-American airmen shot down at least~152 Ger-
man fighters at a record cost of 60 bombers and five fighters in history's
greatest sky battle Tuesday, and blasted two other targets besides shatter-
ing the three aircraft centers southeast of Berlin, it was disclosed of-
ficially tonight.
The Eighth Air Force recapitulation hikcd enemy fighter losses from
100 to 152, and added one more American heavy bomber to the 59 announced
yesterday as having failed to return from the raid carried out by more than
1.200 fighters and bombers.
Fresh American crews rolled new bombers out on runways today to re-
place the lost 60, and were ready and eager to strike another paralyzing
</blow at the enemy's anti-invasion

Biddle orders
Investigation of
CIO Politics
WASHINGTON, Jan. 13.- (P)-
Attorney General Biddle today or-
der'ed "an immediate iiivestig-+'- ~
of chs -es that the MO's i
action committee viol t ' ;, ,
provisions ,f the nti
seeking "tn infli'e
ihe 1944 elctir "
The cha-ye, wi ;e 'i ,V9
ISmith (Dem.; a.) re V o.~
Labor Disputes A t, in al1. .
Justice Department. The
comment immediately from the
Anittee but in the past it has ta'-
the position that its "general polit-
cal and educational activity" cannot
legally be prohibited in view of th'
constitutional guarantees of free
speech, press and assembly.
Smith timed the letter with intro-
duction of a bill which would deprive
a wartime striking union of its lec-al
status before the NLRB and with-
draw the protection given unions a
such by other federal legislatoin. He
said he offered it as a substitute for
President Roosevelt's request for a
National Service Law.
WPB Member
Asks Post-war
Control of Cars
NEW YORK, Jan. 13.-()-Iron
Age, a trade publication, said today
that Arthur D. Whiteside, War Pro-
duction Board Civilian Requirements
vice chairman, would propose to
automobile makers at a meeting of
15 leading industrialists in Washing-
ton next week that war-time con-
trols of that industry be maintained
for three years after the European
war to insure every producer an
equal start in protluction.
Iron Age said in a statement that
the industrialists had been invited to
Washington by Donald M. Nelson,
WPB chief, to discuss re-conversion
problems.
Whiteside, who is president of
Dunn and Bradstreet, was quoted as
saying that under the proposal each
automobile manufacturer would be
permitted to produce as many cars
in the three years as the company
made in 1941.

Ai~( ] A

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menaced Nazi control of the last
heights southeast of the city.
Allied announcement of Cervaro's
capture came nearly 24 hours after
the Germans reported their troops
had lost the fortified town in hard
fighting. Cassino, thus stripped of its
main defenses to the east, southeast
and south, was expected to fall soon
to the steady, grinding assault of Lt.
Gen. Mark W. Clark's forces.-

efforts centered in air production
plants.
Reconnaissance pictures disclosed
the great damage was inflicted on
German aircraft plants at Oschers-
leben, Brunswick, and Halberstadt.
Rome's outskirts were attacked to-
day at noon by British and Anerican
bombers escorted by fighters, the
Rome radio said. A Berlin broadcast
roil subsequently that three of 10
W rTO h ado-r T' *h , :

TO AID COMMUNITY:
Ann Arbor Church Council Is
Established for United Action

The Alexishafen pounding brought
to more than 1,200 tons the total of
explosives laid on supply dumps, air
fields and gun positions here and at
nearby Madang this month.
The Madang-Alexishafen sector is
about 55 north of American invasion
troops at Saidor.
Accused BLank
leads Innocent
NEW YORK, Jan. 13.-(A)-The
Chase National Bank pleaded inno-
cent today to two federal grand jury
indictments charging conspiracy and
violation of the Trading with the
Enemy Act. Judge Henry W. God-
dard set Feb. 1 for hearings of mo-
tions.
Emmet F. Smith, vice-president of
the bank, entered the plea on the
bank's behalf.
Indictments filed yesterday charg-
ed that the barnk and Leonard J. A.
Smit, an international dealer in in-
dustrial diamonds, violated the act
by conspiring and engaging in illegal
sale and export of industrial dia-
monds.
Smit pleaded innocent at an ar-
raignment yesterday.

neinh Air F orco ,av ade
iailed statemnt oni Tuesday's rasid
hul m e many.
0 -he A &ben, 9: ile suuthwest of
Derlin,- bclieved to be th- ,an-)i
uo tant producer of Focke-Wulf 190.
was well covered by a heavy conce-
tLation of high explosives and incen-
diaries loosed by the Americans who
tore through swarms of rocket-firing
German fighters.
Nit asnTells
Norway Schools
"The Nazi domination of the Uni-
versities in Norway has only intensi-
fied the students determination to
throw off the German yoke," Dr.
Ragnar Nicolaysen, former professor
at Oslo University who recently es-
caped from Norway through Sweden,
said last night.
In a factual and realistic descrip-
tion of the Nazi seizure of Oslo Uni-
versity, Dr. Nicolaysen told how a
German instructor was released from
an insane asylum to teach the Nor-
wegian students. He explained that
the Germans have tried to keep as
many Norwegian professors as pos-
sible so that they can justify their
actions "as in accord with Norwegian
thought." However, he stated that
all professors who would not con-
form to the Nazi codes were immedi-
ately ousted.
"Before the occupation, the Uni-
versity of Oslo was very much like
your universities here," he said.
"There were five schools, and the
president and deans of each school
were elected by the faculty mem-
bers." There were no admission fees
until a few years ago. A student who
was academically able, could finish
a seven or eight year course with
about $20 to $40, except for living ex-
penses.
"On September 11, 1941, a state of
seige was declared in Oslo," he con-
tinued. "That was a day I shall never
forget. There was a dissolution of
unions, Quislings were put in and all
who signed protests were arrested.
The university student, end facl'y
were called upon to attcnd a m
Gestapo -oldierr

Faced with increasingly serious
problems of a religious, educational
and social nature, thirty-five minis-
ters, religious educators, and laymen
last night established an Ann Arbor
Council of Churches which will take
united action on community diffi-
culties.
With a view toward establishing
week-day schools of religion in Ann
Arbor, the executive body of the
Council appointed a special commit-
tee to study the educational situa-
12 Killed, 45 Hurt in
Texas Train Wreck
NOVICE, TEX., Jan. 13.-(R')-A
passenger train slashed into the rear
of another at the Santa Fe station
today, killing at least 12 persons and
injuring 40 to 45, several of them
critically. Both trains were west-
bound.
Dick Cooke, reporter for the Abil-
ene Reporter-News, said most of
those killed were in a chair car on
the first train. The victims have not
been identified but Santa Fe officials
at Temple, Tex., said that two sol-

tion. These week-day schools would
be taught by religious workers pro-
vided by the, Council, and arrange-
ments would be made to use release
time from the community schools.
Religious Education Needed
Dr., J. Burt Bouwman, executive
secretary of the Michigan Council of
Churches and Christian Education,
pointed out the need 'for religious
education throughout the state. It
was stated at the meeting that the
problem of juvenile delinquency will
never be fully settled without some
kind of religious instruction to the
young people.
The committee appointed to study
the religious educational problem in
Ann Arbor includes Mrs. James Ed-,
monson, wife of Dean Edmonson of
the School of Education, Robert
Granville of University High School,
Dr. Charles Brashares of the First
Methodist Church, and Dr. Edward
Blakeman, counselor in religious
education for the University.
Dr. Shaver To Come
Ii order to secure further informa-
tion and suggestions, the Council is
planning to bring Dr. Erwin Shaver,
member of the Internation Council


FOURTH NATIONAL WAR LOAN:
University Drive To begin Monday

Sale of bonds in the University
drive is to begin at 10 a.m. Monday
when "bond belles" will go on duty
to take orders by telephone or in
person.
The University drive will thus be-
gin one day earlier than the national
Fourth War Loan drive, which is
slated to run Jan. 18 through Feb. 15.

front. Part of the two reels is also Christman, secretary of the Chamber
devoted to a brief resume of Rus- of Commerce.1
sian history since the year 1200. Dance Is Planned
Lt. McLean To Speak "Bond Drive Dance" is planned
Lt. McLean, who will tell some of Jan. 21 by the Junior Chamber of1
the uses of money invested in war Commerce. An auction of bonds will
bonds, is coming from the Percy be part of the program and individ-
Jones Hospital at Battle Creek, where uals buying the greatest amount of
he has been recuperating from bonds will receive prizes donated by
wounds. local merchants.
Other city plans for the forthcom- Another development in the bond