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Editorial
Production Dilemma
Is Very Confusing . ,


VOL. LII No. 30-S ANN ARBOR, MICHIGAN SUNDAY, JULY 26. 1942

2:15 A.M. FINAL

Senate Group
Won't Accept
Tax Proposal,
SaysGeorge
Will Reject Treasury Plan
To Increase Individual,
Business Income Rates
For New Tax Methods
May Adopt Sales
Or Direct Levies
By The Associated Press
WASHINGTON, July 25 - Chair-
man George (D-Ga) predicted today
that the Senate Finance Committee
would reject Treasury proposals to
increase individual and corporation
income rates in the House- approved
$6,271,000,000 revenue bill, but would
explore possible new fields of tax-
ation.
George told reporters that while he
believed a majority of the committee
would like to attain the Treasury's
goal of an $8,700,000,000 net increase
in taxes, he felt certain that mem-
bers would be willing to go that high
only if they could agree on some
form of levy not now in the pending
bill.
No Definite Goal
"I am of the opinion," he said,
"that the committee will not fix any
definite goal but will be disposed to
raise additional revenue above that
provided bv the House bill if sources
are found other than those hereto-
fore suggested by the Treasury which
will yield a substantial portion of the
increase."
The committee chairman said
such a viewpoint obviously would
bring about a discussion of a sales
tax or the possible conversion of
a House-approved payroll deduc-
tion into a direct tax instead of
merely an advance payment on
regular income tax liabilities.
Remarking that both of these mat-
ters must be classed as extremely
controversial, he said he was not at
all sure the committee would agree
on any forth of- new tax. He intim-
ated such a disagreement might well
result ip failure by the committee to
recomniend any substantial revenue
increases in the measure.
Increases Asked
In an appearance before the com-
mittee last Thursday, Secretary of
the Treasury Morgenthau asked for
increases of $356,000,000 in individual
income taxes and $758,000,000 in
corporation taxes over the amounts
in the House bill.
The committee has not yet re-
ceived from the Treasury specific
tables setting out proposed increases
in income tax rates. However, George
said it was understood that Morgen-
thau's proposal would call for an in-
crease to 50 per cent in the House-
approved rate of 45 per cent for
combined normal and surtax levies
on corporation income.
George and some other members
already have said the 45 per cent rate
was too steep.
Prof. Metcalf
Will .present
Organ Recital
Prof. John Metcalf, who teaches
organ and theory at Hendrix Col-
lege, Conway, Arkansas, will present

an organ recital at 8;30 p.m. Mon-
day in Hill Auditorium.
Mr. Metcalf formerly taught at the
University of Illinois, where he
earned his Bachelor of Music degree,
and has worked for his Master's de-
gree here under Palmer Christian and
Arthur Poister.
Among the numbers on this pro-
gram are "Toccata, Adagio and Fugue
in C major," by Bach; "Prelude on
a Welsh Hymn," by Vaughan Wil-
liams; and two choral-preludes by
Brahms.
An all-Brahms faculty program
will be given at 8:30 p.m., Tuesday,
in Hill Auditorium, by Maud Okkel-
berg, Wassily - Besekirsky, Joseph
Brinkman, Hanns Pick and William
Stubbins.
Both recitals are open, without
admission charge, to the general pub-
lic, but small children will not be
admitted.
Michigan Boy Is Killed

U. S. Bombers Smash
AtPorts In Libya, Crete
Army Plnes Inflict Heavy Damage On Shipping
In Regular Tours Of Destruction Over Tobruk

Reinforced German Troops Blast
Bloody Path To Rostov Outskirts;

By STEPHEN BARBER
Associated Press Correspondent
CAIRO, July 25.-Flying a regular
schedule of destruction, American
Army bomber crews heavily damaged
Axis ports and shipping at Tobruk
and Bengasi in Libya and Crete's
Suda Bay on seven missions in the
last week, the U.S. Air Forces com-
mand for the Middle East announced
officially today.
Observations indicated great dam-
age was inflicted on dock installa-
tions, said the communique from the
headquarters of Maj.-Gen. Lewis H.
Brereton.
"Several medium-sized merchant
vessels were left in flames. At Ben-
gasi one large ship was set afire as
a result of a direct hit."
Brereton's command in the Middle
East was announced only a week ago
in a communique which told of 21
successful tactical missions carried
out up to last Saturday by American
airmen flying their own planes over
the desert and far out across the
Mediterranean.
It had been hinted in midweek
that American Liberators were'
among the bombers striking at Axis
bases on Crete, but the formal an-
nouncement of the American partici-
pation was made only today.
(The importance of the Ameri-
can aerial cooperation with -the
British was underscored in the in-
formed military opinion expressed
in London to the effect that al-
Navy Reports
New Sinkings
Of Jap Ships
By The Associated Press
WASHINGTON, July 25.-Ameri-
can submarines recently sank a large
new Japanese destroyer and four
other ships in enemy-dominated wa-
ters of the Western Pacific, the Navy
announced today, adding that a sixth
vessel was damaged and probably
sunk.
The destroyer was hit by two tor-
pedoes and went down in nine min-
utes. Shortly before it sank the sub-
marine poked its periscope above the
ocean surface less than a quarter of
a mile away and made the first com-
bat picture ever taken in the U.S.
Navy from under the sea.
The Rising Sun insignia painted
on its forward turret for identifica-
tion by airplanes was plainly visible
and two men in white uniforms could
be seen apparently in the act of
scrambling off the ship.
Lieutenant Commander John Long,
Navy photographic chief, said that
the picture through the periscope
was made with a special secret cam-
era now being supplied to all large
U.S. submarines by the Bureau of
Aeronautics which developed it.
The accounting of undersea opera-
tions in the Western Pacific, first
issued here since May 28, was given
in Navy Department communique
number 100 which listed the damage
inflicted of the enemy as:
Sunk-one modern destroyer, one
medium-sized tanker, three cargo
ships.
Damaged and believed sunk-one
medium-sized cargo ship.
NOTICES
There will be a meeting of the
Wolverines at 2 p.m. today in
Room 302 of the Union.
Prof. Howard M. Ehrmann of
the history department will de-
liver his "Weekly Review of the
War" at 4:15 p.m. Tuesday in the
Rackham Amphitheatre

though the British retain the in-
itiative in the desert fighting the
arrival of a single Axis convoy
might swing the balance of mili-
tary power to Marshal Erwin Rom-
mel's armies.)
In the aerial fighting closer to the
immediate battlefront, the RAF re-
ported its newest blow at the close-
up airfieldatEl Daba resulted in
damage or destruction to more than
20 Axis planes on the ground and
three in the air yesterday.
This would bring to more than 80
the number of Axis planes put out
of action by actual count in mass
raids in several days in addition to
uncounted others referred to as "sev-
eral" and "many" in some cases.
Norris Says
Axis Nations
Must Disarm
Tells Omaha Constituent
Post - War S'urveillance
Will Not Be Necessary
By The Associated Press
WASHINGTON, July 25.-Senator
Norris (Ind.-Neb.) expressed belief
today that post-war surveillance of
Germany, Italy and Japan - an
avowed American war aim-could be
carried out without armies of occu-
pation.
He made public a letter to an
Omaha constituent saying he
thought total disarmament of the
three Axis partners would be suf-
ficient for their control.
Advocating destruction of all their
battleships, airplanes, submarines
and other weapons as well as the fac-
tories with which to make them, he
commented:
"They cannot carry 'on it they do
not have the weapons and the money
with which to carry on."
.- He - conceded, however, that it
might be "fifty or a hundred years"
before new generations in those
countries would see disarmament as
"a blessing," but he thought it
"would not require any effort to keep
the conquered nations in that con-
dition."
Rescue From Lake
In Grandpa's Day
Brings Third 'Hero'
MUNCIE, Ind., July 25.--(P)-Wil-
liam Smethells, South Haven. Mich.,
today became the third man to claim
he was the person who helped rescue
the late Wallace M. Ballard, Muncie,
from drowning almost 20 years ago
and thus entitled to a $5,000 bequest
included in Ballard's will.
Ballard, who committed suicide
last spring, said in his will that
$5,000 should go to Hall Cain, South
Haven, for saving his life in Lake
Michigan in the "early twenties" and
that $5,000 should go to Cain's com-
panion whose name Ballard did not
remember.
Cain also has died.
Previous claims to the money have
been filed by Richard C. Merson and
Paul V. Wynn on July 23, both South
Haven residents.
Machinists Needed
WASHINGTON, July 25. -(G)-
The Civil Service Commission said
today that "hundreds" of men ex-
perienced in reconditioning machine
tools and production machinery were
needed by the smaller War Plants
Corporation, newly created agency of
the War Production Board.

Russians Attempt To Stem

Tide



June Production Of War Goods
Almost Tripled November Output
But Nelson Warns Against Undue Optimism, Sees
New Raw Material Shortage, Bottlenecks

Germans Rush Up Fresh Reserve force
To Replace Fallen As Savage Battle
Rolls Along Entire Lower Don River
- By EDDY GILMORE
Associated Press Correspondent
MOSCOW, July 26 (Sunday).-German troops augmented by a steady
flow of reserves to take the place of fallen thousands have smashed their
way into the outskirts of Rostov, the Russians acknowledged early today.
Heavy fighting rolled all along the lower Don River to Tsimlyansk, 120
miles to the east, where the Nazis were reported also suffering enormous
losses in constant attempts to penetrate Soviet defenses on the south bank
of the river.
"The Germans have succeeded in reaching the outskirts of the town
(Rostov)," the midnight communique said. "The Germans are being forced
~~~ -- - -~~- -to throw in reserves in heavy fighting

WASHINGTON, July 25.-()-
War Production Chief Donald M.
Nelson told the nation today that
this country's June output of planes,
tanks, ships, guns, ammunition and
all campaign equipment was almost
triple production of last November-
but he admonished against "undue
optimism.''
In the first six months of this
year, Nelson said in a communique
from the production front, the vol-
ume of such war munitions turned
out was one-and-a-half times as
large as production during all of
1941.
While Nelson reported that in gen-
eral, the arsenal of democracy was
doing a good job, he asserted that
serious raw materials shortages were
impending, new bottlenecks forming,
and "too much boasting is altogether
premature."
PEM Advance
Sale Of Tickets
Nears -Sell-Out
The ticket campaign for the
Townsley Memorial program has
been so highly successful that an ad-
ditional supply had to be printed.
Early yesterday morning most of the
University offices had sold their al-
lotments and were calling Andrew
Baker, ticket chairman, for more.
The memorial program, which will
be held Wednesday evening, is dedi-
cated to the late Dr. Elmer R. Towns-
ley and will take the form of a giant
PEM display with most of the 1850
PEM students participating.
Dr. George May, who was head of
the men's physical education depart-
ment until he retired this spring,
had this to say about the coming
exhibition: "This makes our efforts
during the last war look rather feeble
compared to the present hardening
program. We have come a long way
as far as physical fitness is concerned
and all people should turn out Wed-
nesday to see that progress."
Tickets may still be purchased. at
the Michigan Union, the Michigan
League, Wahr's Bookstores, the
Michigan Sports Building, the Uni-
versity golf course, the Orient, Hal-
ler's Furniture Store, the United Ci-
gar Store, , the Moe Sport Shops,
Sportsman's Park, Wines Field and
The Michigan Daily.
Former Michigan
A W-Stars To Mleet

Nelson Pointed Out:
1. Production of aircraft in the
first six months of 1942 exceeded to-
tal 1941 output.
2. Merchant ship tonnage delivered
in the first six months of this year
was 133 percent greater than during
all of last year. Although total de-
liveries for the first six months of
1942 were not up to expectations,
May and June deliveries were ahead
of schedule. Future deliveries will
depend upon availability of steel
plate, engines and shipways.
3. The number of anti-aircraft
guns produced in the first six months
was about three-and-one-half times
as large as total production in 1941,
but output must be stepped up sharp-
ly because of a lag in the early phases
of the program.,
4. "Many more" tanks were built'
in the first six months than during
all of last year.
5. Production of machine tools,
presses and other metal-working ma-
chinery was valued at $649,800,000,
an increase of 98 percent over the
first six months of 1941, or 77 per-
cent of last year's entire production.
6. A great expansion in salvage
operations must be carried out to
offset expected shortages in materi-
als.
"Production is going well on the
whole-in some categories, very well;
in others, it is lagging somewhat,"
Nelson said. "Industry, labor and
government are generally doing a
good job of production, but too much
boasting about production progress
is altogether premature. The biggest
part of the job is still ahead. Serious
raw materials shortages are looming
up ahead. Many bottlenecks are be-
ing broken, but some new ones are
forming.
Ingersoll OK'd
By His Board

House Reports
Refute Hingms
Case Decision
Two Members Assert No
Steel Shortage Existed
When Contract Was Let
By The Associated Press
WASHINGTON, July 25. - Two
members of a House investigating
committee said today they had re-
ceived evidence contradicting the
contention of the Maritime Commis-
sion that a steel shortage made it
advisable to cancel the contract of
the Andrew J. Higgins Company of
New Orleans for the construction of
a shipyard and 200 new vessels.
"The evidence tends to establish
the fact that at the time of the can-
cellation of the Higgins contract
there was and there had been suffi-
cient steel for the construction of
the entire shipbuilding program,"
they said.
They were Reps. Boykin (Dem.-
Ala.) and Culkin (Rep.-N.Y.). Their
findings, they said, were concurred
in by two others members of their
House Merchant Marine Subcommit-
tee, Reps. Welch (Rep.-Calif.) and
Jackson (Dem.-Wash.). The report
was issued after receiving lengthy
testimony by Dr. Mordecai Ezekial,
economist of the War Production
Board.
Earlier in the day, Chairman Em-
ory S. Land of the Maritime Com-
mission, told the committee flatly
that "absolutely no outside influence"
affected the commission's decision to
cancel the Higgins contract.
Brazil Demands
German Answer
RIO DE JANEIRO, July 25.-(P)-
The Brazilian government was dis-
closed tonight to have demanded an
immediate satisfactory solution tC
"the unjustified imprisonment" ci
Brazilians by the Germans in Occu-
pied France. under threat of taking
"measures suggested by the circum-
stances" if satisfaction is not forth-
coming.
The Brazilian foreign ministry de-
clared the government was aware of
the arrest of Brazilian citizens and
their internment in a concentration
camp at Compiegne.

which continues in the Rostov area."
Germans Pushed Back
The Russians said their troops still
were pushing the Germans back in
the Voronezh area far to the north
on the Upper Don "in spite of con-
tinuous counterattacks."
Soviet troops also were still locked
with the Germans in the Novocher-
kassk area, 20 miles northeast of
Rostov and north of the Don River,
the communique said. (The Germans
claimed the capture of Novocher-
kassk).
Two Nazi transports totalling 16,-
000 tons were announced sunk in the
Gulf of Finland
American bombers flown by Rus-
sian pilots were engaged heavily in
the defense of the lower Don where
a German drive not only threatens
the Caucasus but Stalingrad on the
Volga River, a vital communications
link between southern and central
Russia.
The steel and concrete Rostov forts
which have been strengthening for
eight months were pierced at points
on the north side of the Don.
Battle Is Bloody
Frontline dispatches said the bat-
tle-obviously one of the bloodiest
ever-was extremely strenuous with
the Germans employing vast tank
forces and swarms of planes based on
swiftly built airdromes near the
front.
"Heavy battles are still in progress
against enemy tanks and motorized
infantry superior in number," the
Russian command said grimly of the
Rostov fighting. "On one sector the
Germans succeeded in driving into
positions occupied by our troops."
Hand-to-hand fighting developed
frequently and the Russian com-
munique listed 2,000 Germans killed
by the bayonets and sidearms. A vast
area of carnage was pictured with
thousands of German bodies and ma-
chines lying on the ground.
Reached By Army
The sector of the middle Don
reached by the million-man army of
Marshal Fedor von Bock was not
specified, but one section of the river
is only 45 miles from Stalingrad, on
the Volga.
The broadening river, running red
with blood, was crossed twice near
Tsimlyansk, 120 miles upstream from
Rostov. The first crossing apparently
was eliminated.
The second push, supported by in-
tense aviation artillery put small
units across the Don within 35 miles
:f the last remaining railway linking
Stalingrad to the Caucasus and its
treasures.

PM's
For

Editor Will Report
Duty With Army

By The Associated Press
NEW YORK, July 25.-Ralph In-
gersoll. 41-year-old editor of the
newspaper PM, who voluntarily en-
listed in the Army yesterday while a
controversy over his draft status was
pending, has passed the Army's
physical and mental examinations.
Major C. A. Pivirotto, district re-
cruiting and induction officer of the
southern New York area, announced
today that the former World War
veteran had successfully completed
his tests and would be notified when
to report for duty, probably within a
few days.
Apparently without informing any
associate on his newspaper, Ingersoll
applied for enlistment yesterday and
went to Governors Island for a phys-
ical checkup.

Nin e

Tomov rrow

Letters To Lucerne' To Open
Wednesday On Repertory Stage

Coach Ray Fisher's baseball team
meets the State Street All-Stars at
Ferry Field tomorrow night in what
promises to be a colorful affair.
Although the All-Stars, also known
as Slater's Sluggers, are an unknown
quality as a unit, they possess a lot
of color, for all were star performers
for the Maize and Blue in one sport.
or another.
Managed by Russ O'Brien, the
All-Stars boast such names on their
roster as Cliff Wise, Russ Dobson,
Al Wistert, Don Boor, Bob Ingalls,
Howard Mehaffey and many others.
Michigan's victory over Blissfield
was especially encouraging because
the Wolverines proved that they can
hit, even against better than aver-
age pitching.
'H.M.S. Pinaf ores
Tryouts Are Sought
All men-both student and local-
who wish to participate in Gilbert
and Sullivan's operetta, "H.M.S.
Pinafore," slated to appear Aug. 12,
15, 17, 18 on the Mendelssohn stage,

. . - . - - -.- Clip Here And Mail To A U.-M. Man In The Armed Forces . - ..-.- .-
SERVICEa4n
EDITION
VOL. 1. No. 5 ANN ARBOR, MICHIGAN JULY 26, 1942

By BERYL SHOENFIELD
Nominated one of the best ten
plays of the year by Burns Mantle,
"Letters To Lucerne," a drama of
World War II by Fritz Rotter and
Allen Vincent, opens at 8:30 p.m.
Wednesday at the Mendelssohn The-
atre, as fourth presentation of the
Department of Speech's 1942 Reper-
tory Players.

tries. It is not long before the Eng-
lish and French girls are hating the
German girl, while the Polish girl is
beginning to mistrust her best friend,
the young German.
Portraying the six seniors will be
Yvonne Wotherspoon, as the French
student; Marjorie Warren, repre-
senting Poland; Barbara White, Ger-
many; Philippa Herman, England;

PEM Credit ...
Herbert 0. (Fritz) Cris-
ler, varsity coach and PEM
(physical hardening) di-
rector, told the Men's Edu-
cation Club the other night
that he thought it would
be a good idea to give
credit hours for PEM . . '
and most of the 1,850 fel-
lows enrolled in the mus-
cle-building course are
talking, but they don't
know just exactly what to
talk about. Crisler didn't
say whether he thought
the credit hours should
c. n f-f'ni. fir .. n no A ni

Latins Getting 'Lowdown' On English
Twenty-one Latin Americans--representing 11 na-
tions south of the Rio Grande-are on the campus this
summer learning how to speak and to understand
English.
Members of the English Language Institute, the
only one of its kind in the country, the students are
studying from books, special recordings, conversation
and by living the life of the average U. of M. student
on campus.
Prof. and Mrs. Leo Rockwell, of Colgate, have re-
turned for a second year to act as director and coun-
selor of the House . . . and as last year they will again
enforce their rigid "English only" rule which they orig-
inated last year.

but some mentioned expe-
rience in cartooning, ath-
letics, gem polishing, api-
culture and nutrition.
Some of the more talented
include a clergyman, a de-
tector of forgery and a
juggler-and among the
linguists, we've men who
can speak Filipino, Malay,
Persian and Turkish.ay
'Camouflage' . . .
Prof. Harlow 0. Whitte-
more of the landscape ar-
chitecture department says
that a course in camou-
flage of civilian installa-