Weather
Generally Fair
ig
5k1 i tgan
off icial Publication Of The Summer Session
II133
E ditorial
International,
Deralent .
VOL. I No. 28 ANN ARBOR, MICHIGAN, SATURDAY, AUGUST 2, 1941 Z-2S
PRICE FIVE CENTS
I try Divisions
In Smolensk Area,
Germany Reports
Adminjstration Forces Offer
Compromise in Draft Dispute
Senate Leaders Would Limit Army Service Period
To 21/2 ears; Debate On Bill Continues
WASHINGTON, Aug. 1.-(AP)-Ad- -"it is unfortunate that we have to
Panzer Units Now Freed
For Further Advances
On Road To Moscow
Russians Report
Drives Repulsed
(By The Associated Press)
BERLIN, Saturday, Aug. 2.-Ger-
man infantry divisions have been
brought up to the advance lines in
the Smolensk area, informed sources
said early today, freeing hard-hitting
panzer units for further penetration
into Russia in this 'strategic front
along the road to Moscow.
After fierce battles in which tens
of thousands of Russians were anni-
hilated, the infantry troops, it was
said, have been moved into positions
which heretofore had been held by
the armored divisions. These nor-
imaly operate far ahead of the in-
fantry.
35,000 Prisoners Taken
German military dispatches also
claimed capture of 35,000 prisoners
And 245 cannon, but at the same time
reported a second encircled Red force
was yet to be finally dealt with
northeast of Smolensk.
This second force, however, said
the news agency DNB, has been re-
pulsed with great losses in its at-
tempts to break out and is "well
under German control." It was re-
called the High Command itself
stated recently that German forces
in the Smolensk sector were dealing
with "the last encirclement" en route
to Moscow.
The action of' annihilation south
of Smolensk, said DNB, left unnum-
bered dead upon a battlefield lined
with smashed and burnedout wa'
machines.
War Bulletin Is Brief
The day's official war bulletin was
brief, reporting: "Battles on the east
front continue to develop in our
favor."'
Official dispatches gave no hint of
general action for the final pushes
on Leningrad and Kiev. Berlin ob-
servers declared, however, Adolf Hit-
ler wanted no triumphal entry into
cities for the mere sake of prestige,
but was directing efforts to the main
job-"destruction of the Ped Army."
It was admitted unofficially that
Soviet forces had "temporarily"
driven a wedge between German and
Rumanian troops on the far south-
ern front, where it was claimed the'
Germans had crossed the Dniester
River.
Soviets Report Heavy
Fighting On All Fronts
MOSCOW, Saturday, Aug. 2.---()
-Heavy fighting in the four main
German drives into Russia raged
throughout Friday, the Soviet Infor-
mation Bureau announced early to-
day, but there was no substantial
change in positions of the armies.
The Red Army fought off the Ger-
mans in the Porkhov Nevel, Smo-
lensk and Zhitomir regions, the daily
morning communique said, while the
air force struck at the invaders both
by land and sea.
This communique indicated a re-
sumption of the German smash to-
ward Leningrad after at emporary
lull. The previous communique had
not mentioned the \ Porkhov sector,
which is 150 miles south of Lenin-'
grad, saying instead that important
fighting was underway only in the'
"ovorhev, Smolensk and Zhitomirj
areas.
The Friday afternoon communique
stated the Red air force had sunk a
destroyer and severely damaged two
other enemy ships in the Baltic. To
that toll this morning'ssstatement
added an enemy patrol ship and a
5,000-ton tanker sunk and four en-
emy ships severely damaged, also in
the Baltic.
Control Basis ,
Is Announced
WASHINGTON, Aug. 1. -(P)-
Chairman Steagall (Dem.-Ala.) oft
the House Banking Committee said
today the Administration's pricet
control bill would use the price levels
of July 29 as the yardstick or basis
by which it is intended to regulate
the price structure of tl;e nation.
After a series of hectic conferences
Japanese Seekl
Thailand Base,
British Claim
(By The Associated Press)
LONDON, Aug. 1.-Japan, moving
again in the direction of British in-
terests in; the Far East, has de-
manded that Thailand grant it mili-
tary bases and control of the Thai
rubber, rice and tin production, it
was reported authoritatively here'to-
day.'
The report found Britain fast pre-
paring for Asiatic action, both de-
fenive and offensive.
Japan was declared to have of-
fered to restore to Thailand, in ex-
change for the concessions, the prov-
ince of Laos and the ancient city of
Angkor. These are both in southern
French Indo-China, lying to the east
of Thailand.
ChThe Japanese moved into Indo-
China only this week after the
French surrendered tb demands simi-
lar to those Tokyo is reported to be
making on Thailand.
London sources expressed belief
Thailand. had only two choices : to
grant the demands or have the Jap-
anese take what they want by force.
The reported Japanese move found
Britain moving in several ways to
bolster its positions from Singapore
to Burma.
The Air Ministry announced the
RAF had been considerably strength-
ened in Burma, which lies alongside
Thailand on the -west, "for both de-
fensive and defense actions."'
The Ministry disclosed; new all-
weather airdromes had been built,
"so located that th'ey give Burma
protection from any quarter," and
that American-made Brewster Buf'-
falo fighting planes had been dis-
patched to reinforce the British air
strength there.
One-Act Plays
To Be Given
Secondary School Theatre
To Present Program
A bill of one-act student-directed
plays will be presented by the speech
department's Secondary School The-
atre under the direction of Nancy
Bowman, at 10 a.m. today at the
Pattengill Auditorium in Ann Arbor
High School..
The purpose of the Secondary
School Theatre is to give students
experience in plays adapted to high
school and under conditions found
in the average high school. Assisting
Miss Bowman as technical director
is Jack Bender. June Madison is
costumiere.
ministration forces in the Senate of-
fered today to compromise legislation
extending 'the service period of all
army personnel by setting a limit of
18.months on the extra training, but
Sen. Wheeler (Dem.-MontJ prompt-
ly demanded that this be cut to six
months.
Senator Thomas (Dem.-Utah),
floor manager for the service bill, of-
fered amendments late today em-
bodying the compromise offer. Un-
der the amendments, selectees, na-
tional guardsmen, reservists and reg-
ulars could be- held in service a maxi-
mum of a year and a half beyond,
their allotted time. However, if Cop-
gress declared it to be in the interest
of national defense, the President
could lengthen the additional service
indefinitely.
Period Could Be Extended
Under the bill in its original form,
the President would have authority,
until it was terminated by Congress,
to extend the training peroid- indefi-
nitely.
When Thomas submitted the com-
promise, Wheeler, a leader of the
opposition forces, told the Senate
that "while it would not be so bad to
extend the time for a few months, it
is very different to talk about 18
months, or a total period of two and
a half years for selectees and na-
tional guardsmen."
Would .Agree To Six Months
"How long an additional period
would the Senator ;support?" asked
Senator Lee (Dem.-Okla.), an Ad-
ministration supporter.
Wheeler replied he would agree to
a six-month extension, but added,
Government's
July Expenses
Hit New High
have any extension at all."
"No one wants to wreck the army,"
he continued, "and if a six-months
extension is necessary I think it
would be agreeable."
While the Senate debated the serv-
ice extension bill, a joint Senat6-
House committee agreed today on a
compromise measure providing that
all selectees who had reached their
28th birthday last July 1 should be
released from the army.
Senator Johnson (Dem.-Colo.),
meanwhile, offered an amendment
providing that draftees should be
released whenever they could be re-
placed with volunteers. The amend-
ment also would increase selectees'
pay by 25 percent beginning August 1.
The compromise on the service ex-
tension measure, which Senator Aus-
tin (Rep.-Vt.) said was approved by
a majority of the military commit-
tee, would provide forfinal termina-
tion May 15, 1945, of all of the powers
granted under the act. The Selective
Service Act will expire on the same
date.
Study Program
Will Preview
Future Outlook
'Problems And Prospects'
Is Chosen - As Theme
Of Talks Next Week
"Problems and Prospects" is the
theme of the sixth week of lectures
of the Graduate Study Program in
Public Policy in a World at War.
The first speakerof the week will
be Prof. W. Menzies Whitelaw of the
University of Saskatchewan's history
department. Professor Whitelaw will
talk about "The Prospect for a Union
of Democracies" at 4:15 p.m. Monday
in the Lecture Hall of the Rackham
School.
At 4:15 p.m. Tuesday Prof. Charles
C. Colby, professor of geography at
the University of Chicago will speak
on "Regional Aspects of World Re-
covery."
Concluding the week's lectures,
Prof. Percy E. Corbett of McGill Uni-
versity, professor of international
law and jurisprudence, will talk on
"The Future of Nationalism and the
Nation State" at 4:15 p.m. Wednes-
day. ,
Introlucing the speakers will be
Prof. Arthur E. R. Boak of the his-
tory department on Monday, Prof.
Charles M. Davis of the geography
department on Tuesday and Prof.
John P. Dawson of the law school on
Wednesday.
The talks, all of which will be held
in the Lecture Hall of the Rackham
Schodl, are open to the public with-
out charge.
Ten Philippine Regiments
Mobilized For U.S. Armfy
MANILA, Aug. L-(P)--Ten in-
fantry regiments, between 12,000 and
15,000 men, of the Philippine Army
were ordered mobilized tomorrow by
President Manuel Quezon for incor-
poration into the U.S. armed forces
commanded by Lieut. General Douglas
A. MacArthur.
This move, made at General Mac-
Arthur's request, marked the first
mobilization of Filipino reservists
since President Roosevelt's proclama-
Russia Wins
FDR Praise
ForStruggle
President Expresses Belief
The Soviet's Resistance
Has Surprised Germans
Quiet On Far East
WASHINGTON, Aug. 1. -(-()-
President Roosevelt today applauded
Russia's struggle as magnificent, and
expressed belief it had surprised the
Germans and thrown them off their
stride.
The Russian resistance, he said, "is
magnificent and frankly better than
any military expert in Germany
thought it would be." For emphasis,
he authorized the use of direct quo-
tations, a permission only occasion-
ally granted for hi press conference
statements.
No Further Conyment
Reporters quickly followed up the
point, but beyond that one assertion
found the President uncommunica-
tive. He laughed and suggested they
not spoil the story, when one asked
if the President included in his
statement Germany's outstanding
military expert, an obvious reference
to Adolf Hitler.
Another question, whether Ger-
many had been doing "some tall ly-
ing," in, its public announcements on
the progress of the war to the east,,
received only a laugh for an answer.
Decision Awaits Hopkins
Other questions elicited a state-
ment that no decision on new Lease-
Lend appropriations would be made
until Harry Hopkins returns from
consultations with officials in Lon-,
don and Moscow. Hopkins is super-
visor of the Lease-Lend program.
Rusia, Mr. Roosevelt said, did not
come under the, terms of the Lease-
Lend bill because it was able to pay
for war equipment manufactured
here for the battle against Germany:
He saw no prospect that status would
change.
Questions on conditions in the Far
East and on oil shipments to Japan
received no answers, and in response
to another, Mr. Roosevelt said he
had heard no discussion of the possi-
bility of giving Lease-Lend assistance
to the Free French.
':
r
U. S. Bars Exports
Of Motor Fuel, Oil
In Blow At Nippon
Railroad Cut,
By Air Force,
Finns Claim
HELSINKI, Aug. 1.-(R)-The
Murmansk Railroad, strategic link
between Leningrad and the ice-free
Arctic port of Murmansk, has been
cut in several places by the Finnish
Air Force, the Finnish high command
declared tonight.
Russian transport ships and trains
were bombed in the northern sector,
and a 1,000-ton Soviet vessel was
sunk, the Finns announced.,
Finnish land forces reported the
destruction of another Russian bat-
talion which had been surrounded
on the Karelian Isthmus.
Three Russian transports were
sunk off the Russian naval base on
Finland's Hango peninsula, and ar-
tillery hits were scored against two
Russian gunboats on Lake Ladoga,
it was stated.
Finland had its first full blackout
tonight, but it affected the popula-
tion little because it was nearly mid-
night in Helsinki before it became
really dark, and in the northernmost
part of the country the midnight sun
still shines.
Enid Szantho
To Sing Here
Contralto To Give Concert
With Poinar And Beller
The noted Cosmopolitan Opera
contralto, Enid Szantho, will present
a concert with George Poinar, vio-
linist, and William Beller, pianist, at
8:30 p.m. tomorrow in the Pattengill.
Auditorium of the Ann Arbor High
School.
Miss Szantho will open the pro-
gram with "An die musik," "Liebes-
botschaft" and "Erlkonig" by Franz
Schubert, and will conclude the re-
cital with Gustav Mahler's "Kinder-
totenlieder." Prof. Ava Comin Case
of the School of Music will be ac-
companist. -
Claude Debussy's "Sonata for Vio-
lin and Piano" will be played by
Poinar and Beller. The latter will
appear in another, concert Monday
with Prof. Joseph Brinkman.
One of Ann Arbor's favorite May
Festival stars, Miss Szantho made
her first American tour in 1935 with
the New York Philharmonic Orches-
tra. Before coming to this country
she was a star of the Vienna State
Opera and in 1937 was made a mem-
ber of the Metropolitan Opera Com-
pany.
One Million In
Expenditures
Since World
Defense
Biggest
War I
Embargo Will Not Allow
Materials To Be Sent
From This Hemisphere
Step Is Obviously
Aimed At Nippon
WASHINGTON, Aug. 1. -(P)-
President Roosevelt tonight clamped
down an embargo which prevents
absolutely the export of aviation gaso-
line and oil to Japan and which lim-
its the shipment of other petroleum
products to that Emipre.
The order made no mention of Ja-
pan, whose move into southern Frencr
Indo-China has aroused the United
States Government. However, there
was no mistaking the effect of the
sweeping order on Nippon, which has
been drawing upon the United States .
for a large part of the petroleum
needed to keep its war machine mov-
ing.
The order directed that the admin-
istrator of export cntrol cut qff com-
pletely the shipment "of motor fuels
and oils suitable for use in aircraft
and of certain raw stocks from which
such products are derived to destina-
tions other than the Western Hemi-
sphere, the British. Empire and the
unoccupied territories of other coun-
tries engaged in resistirng aggression."
Quantities Limited
It was also announced shipments
of other petroleum products to the
nations affected by the order would
be iimted to: "usual or prewar quan-
ities.",
Officials explained that so far as
aviation gasoline and oil were con-
cerned, the order merely formalized
a situation which has existed for
sometime. On July 26, 1940, export
control restrictions were imposed re-
quiring licenses for the shipments of
aviation gas and, oil. In practice no
licenses for such shipments to Japan
have been granted, It was said.
However, the Island Empire has
been getting a large quantity of the
lower grade pertoleum products, it
was explained, and these shipments
are now to be limited to "usual or
prewar" quantities.
American exports of petroleum
products to Japan in 1940 were
valued at $54,600,000, against $45,-
285,000 in 1939.
Licenses Revoked
The State Department announced,
soon after the White House order,
that the,.Government had revoked all
licensee issued hitherto for exporting
petroleum products to countries oth-
er than the following:
Countries of the Western Hemir
sphere, the British Empire, and the
unoccupied territories of other coun-
tries resisting aggression.
Secretary of Interior Ickes, the De-
fensce Petroleum Co-ordinator, took
action yesterday to move aviation
gasoline to embattled Russia.
He recommended priorities for the
manufacture of 10,000 steel drums by
which the gasoline would be hauled,
presumably across the Pacific, on
U.S.S.R. mnerchantmen. Ickes also
revealed Russia had asked the United
States for the use of two American
flag tankers to funnel the aviation
fuel into that country.
Convoy Carries
More Supplies
WASHINGTON, Aug. 1.-(I)-Cash
expenditures in connection with the
armaments program totaled about
$1,000,000,000 in July, the largest
sum since the World War.
Officials estimated the July total
onl the basis of nearly complete rec-
ords for the month. These figures
showed that through July 30 cash
payments by the Treasury totaled
$899,488,021, and through July 29
defense payments of the Reconstruc-
tion Finance Corporation and its sub-
sidiaries amounted to $62,053,364.
Final reports, officials said, should
bring the total for these two types of
expenditures to almost exactly $1,-
000,000,000.
Taken on a checks issued basis or
work done basis, they said, the
month's total would be much higher,
but the $1,000,000,000 total would
cover money actually paid out during
the month after checks had been
cashed.
The July total represented a sp rt
of approximately $130,000,000 over
the June figure of $868,800,000, and
carried the program far past the
highwater mark of $903,700,000 for
the present program set in May.
Officials have estimated that in
another year the defense program
may cost $2,000,000,000 a month. The
Budget Bureau has estimated Treas-
ury expenditures for defense in the
fiscal- year which began July 1 will
be $15,500,000,000.t
Japa Takes
Over As Men
Enter Saigon
SAIGON, French Indo-China, Aug.
1.-(RP)-Thirtf-six hours after land-
ing here in a military occupation
which has no visible ultimate limits,
Japanese men and machines still
were streaming from Saigon's docks
tonight, carrying ever mounting
quantities of munitions and supplies.'
Scores of trucks moved back and
forth between the~waterfront and the
unseen Japanese military encamp-
ments beyond the city. They were
piled high with equipment.
D'erricks aboard the Japanese
transports tied up at the piers, with
the assistance of several thousand
sweating Japanese soldiers, con-
stantly were unloading still more
stores.
Mountains of munitions boxes and
crated bombs were stacked at the
dockside; gasoline drums in fantas-
tic number rolled from the ships.
All the supplies were heavily
guarded.
6
No Blacklists
Are Accepted
By Argentine
BUENOS AIRES, Aug. 1. -(P)-
Argentina was reported today to have
decided not to support the United
States blacklist of Latin-American
firms suspected of trading with the
Axis.
Authoritative diplomatic sources
-who reported the decision said it was
based on a constitutional guarantee
that a citizen who has been doing
business for a long time with another
is entitled to continue his trade un-
less Argentine lavr' prevents it.
More of the blacklisted firms are
in Argentina than in any other Latin-
American country.
The reported government decision
was opposite to the course taken by
the Mexican Government, which re-
jected yesterday a German request
that it protest to Washington against
the anti-Nazi trade blacklist:
However,' Argentine police con-
tinued their drive against subversive
activities with a raid on headquar-j
ters of the German Culture Welfare
Association at Rosario, the country's
second largest city. Thirty persons
were arrested and books and pamph-
lets were seized.
A national defense program con-
tion of July 26.
,'Barefaced Impuidence':
Welles Praises InterA merican Solidarity,
Denounces Diplomatic Moves By Germany
Nazi Consuls
May Be Sent
From Mexi"co
MEXICO CITY, Aug. 1.-(P)-Mex-
ico was said by an informed govern-
ment source tonight to be "seriously
considering closing German consul-
ates" in reprisal for the German gov-
ernment request that Mexico protest
President Roosevelt's Axis trade
blacklist.
The German request, made through
German Minister Rudt Von Collen-
berg, was flatly rejected by Mexico
with a stern rebuke to Berlin. The
closing of consulates woud match ac-
tion the United States already has
taken against both Germany and
Italy.
An informed government source de-
clared tonight the German request
was "a deliberate provocation of a
warring nation" atttempting to make
relations ,betweenMexico and the
United States :hostile.
Mexicans, he said, are indignant at
such tactics, which they consider out-
right "intervention. "
enate circles reported a commit-
tee of Senators hasplanned to re-
quest President Manuel Avila Cama-
cho to order the registration of all
Germans in Mexico as a control meas-
tn nrevent Nazi agitation here.
WASHINGTON. Augj 1.-(P)-De-
nouncing German diplomatic moves
in the Western Hemisphere as bare-
faced impudence, the United States
served blunt notice on the Hitler
Government today that American re-
publics needed no advice from Ber-
lin on the conduct of their own af-
fairs.
Coupled with this broadside at
Germany was high praise from Sum-
ner Welles, acting secretary of state,
for the energetic action of Latin
American countries in combatting ac-
tivities described as subversive.
"Very Heartening"
He said their resistance to Axis
operating for the benefit of the Axis.
Mexico rejected the request with a
stern rebuke.
Welles interpreted the German
Even Army Camp Life
Is Open To Sob Sisters
WASHINGTON, Aug. 1.-(P)-The
Army has selected a woman editor
to interpret the activities of Mars to
wives,, sweethearts and mothers.
She is Mrs. William P. Hobby of
Houston, Tex., youthful and atttrac-
tive newspaper executive, the first
move as a threat to act against Mex-
ico in the fut\ire unless the blacklist
was protested. He said the Nazi
request was based on a pretext the
blacklist was in some way in deroga-
tion of Mexican sovereignty.
No country in the world, Welles
told reporters, has been more defi-
nitely jealous of its own sovereignty
and its legitimate rights as a sover-
eign and independent country than
has Mexico.
No Advice Required
In strong terms then, he declared
Mexico or any other American re-
public required no advice from the
German government on the protec-
Canadian Troops Arrive
To Augment Forces
LONDON, Aug., 1.--(P)-One of the
biggest convoys yet to cross the At-
lantic, bringing planes, guns, muni-
tions and food worth approximately
$400,000,000, arrived in Britain today
without a torpedo or bomb scratch
on a single ship.
An officer of one escort vessel said
the only incident was the dropping
of one lot of depth charges "just in
case" submarines were lurking about.
The convoy arrived at about the
same time troop ships brought the
third 'Canadian Division to Britain.
The first and second Canadian divi-
sions and a Canadian tank brigade
already are, in Britain.