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.