Weather
Slightly Cooler


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Editorial
Mismanagement Causes
Acute Steel Shortage.


VOL. LII No. 34-S ANN ARBOR, MICHIGAN, SATURDAY, AUGUST 1, 1942

2:15 A.M. FINAL

Nelson Backs
Kaiser's Plan;
Program May
Be Given O.K.
WPB Chief Gives Virtual
Promise Of 'Go Signal'
To Production Of Huge
Cargo Bearing Aircraft
Lack Of Materials
Is Chief Obstacle
By The Associated Press
WASHINGTON, July 31. - War
Production Chief Donald M. Nelson
virtually promised today to give
Henry J. Kaiser tlie "go signal" to
build a fleet of giant cargo and troop
carrying planes in his west coast
shipyards if engines and other ma-
terials can be spared from the pres-
ent military aircraft program.
Declaring that the War Production
Board has been "keenly aware for
some time of the necessity for more
and bigger cargo planes," Nelson said
in a statement that he was "mudh in-
terested" In Kaiser's offer to build
a fleet of 5,000 huge aircraft on ways
now being used to ,construct ships.
"If it develops," the WPB chair-
man said, "that. the engines and
otheft components needed for these
planes can be built without disrupt-
ing the present military aircraft pro-
gram, which is our No. 1 war essen-
tial, he will gt plenty of action."
Followed Kaiser Statement
Nelson's statement followed an an-
nouncement made earlier by Kaiser
F, before a Senate military subcommit-
tee that the WPB chairman had
given full support to the cargo plane
proposal. Kaiser said conversion of
a part 'of his shipyard capacity could
be undertaken immediately upon re-
ceipt of a "go signal" from war pro-
duction authorities. .
I Some indication as to whether en-
gines and other materials 'could be
made available may be contained in
a report of a special committee
named by Nelson late in May to
study expansion of the air transport
problem. That report will be pub-
lished within one or two days, Nelson
said.
Surprised Officials
Nelson's reaction to the kaiser
plan surprised many officials, be-
r cause WPB airc aft officials at first
voiced skepticisn about the feasibil-
ity of building huge 70-ton cargo
planes of the lenn Martin "Mars"
ytype _in shipbuildin g plants.J
Chairman Lee (Dein.-Okla.), one
of the Senate suppoiters of the cargo
program, told Kaiser he hoped the
joint Army-Navy aeronautics com-
mittee on construction could be
shaken out of their "prudence" to
give their support, too.
Kaiser submitted to the committee
a general outline of a design for 100-
ton flying boats patterned after the
70-ton Mars.
Mars Is Successful
The Mars pattern should be adopt-
ed at once, he said, because it "is a
successful ship." He added, however,
that 40 or more of his engineers were
at work on a special cargo plane and
that diversion of part of his ship-
yard capacity could be undertaken,
immediately upon receipt of "a go
signal."
The problem of turning out hun-
dreds of cargo ships, he said, "is a
joint one," and should enlist the sup-
port of Glenn Martin, the bomber
builder of Baltimore. Tom Girdler,
the steel magnate, and all others

with knowledge of ship and plane
building.


Supreme Court Denies
Plea Of Nazi Saboteurs
Highest Tribunal Agrees With President's Decision
To BringSpies Before Military Commission

Red Army

Retreat

To Caucasus

By RICHARD L. TURNER
Associated Press Staff Writer
WASHINGTON, July 31.-The Su-
preme Court briskly refused today to
let the alleged Nazi saboteurs escape
military judgment by taking refuge
in the civil courts and in ,the civil
liberties established for this nation's
loyal citizens.
In a swiftly-moving, four-minute
session it upheld the legality of Pres-
ident Roosevelt's orders that they be
tried by a military commission. And,
asserting that their detention by the
Army was lawful, it refused to free
them by issuing a writ of habeas
corpus.
The court did, however, assert its
authority to pass upon this applica-.
tion of the President's wartime pow-
ers. It assumed jurisdiction over the
case, an action which many inter-
prete; as the court's way of saying
that war or no war the protection
of the courts is still open to all who
may rightfully claim a haven in
them.
- Military Commission Free
The sum total result of the ruling
was, of course, that the military
commission is free to proceed with
its trial of the men, and that unless
reversed by the President himself,
the sentence which the commission
imposes will stand. The prisoners
are withrut further avenues of ap-
peal.
Even before the court met, how-
ever, the commission had resumed
its sessions, with the prosecution and .
the defense beginning their final
arguments. Obviously, the case was
moving swiftly toward its conclusion.
With the announcement of its de-
cision, the court ended a brief and
spectacular special term, called for
the purpose of passing upon the case
of the alleged saboteurs.
Two Days Of Arguing
Two days were spent in presenting
arguments, which, stripped of their
legal patois, boiled down to:
A contention by the defense that
the President acted illegally and un-
constitutionally in establishing the'
military commission to try the men;
and that all citizens, including lne-
mies and aliens, are entitled to the
protection of the courts.
An assertion by the government
that the proceedings have been fully
justified by the Constitution and the
Planes Battle
Over Franee
11 Nazi Aircraft Downed
In RAF Bombing aids
LONDON, July 31.--)-Hundreds
of British and German fighters-
Spitfires against Messerschmitts and
the Nazi's newest Focke-Wulf 190's
-engaged in tremendous air duels
over northern France today as the
RAF carried out intensive bomber
and strafing raids on the Abbeville
airdrome and the St. Malo docks.
Eleven German planes including
three Focke-Wulf fighters were shot
down in the dogfights. Four Messer-
schmitts fell to . American Eagle
Squadron pilots, Flight Lieut. S. R.
Edner, of San Jose, Calif., and Pilot
Officer Barry Mahon, of Santa Bar-
bara, Calif. Each got two.
Norwegians flying with the British
accounted for three of the Nazi
planes.
The British lost eight Spitfires.
Meanwhile Nazi planes roared
again over England on assaults de-
scribed officially as the beginning of
a sustained new aerial offensive
against the British Isles.
opening the night's Nazi offensive,
two German planes bombed the
southwest cast of England, "doing
some damage," the British acknowl-

edged.

laws of war; and that enemies have
no standing in the civil courts.
At noon today the court was ready
with its decision.
Chief Justice Stone looked out over
a half-filled courtroom, leaned upon
his elbows and began reading a brief
announcement of the decision.
"The court holds:
" (1) That the charges preferred
by the petitions on which they are
being tried by military commission
appointed by the order of the Presi-
dent of July 2, 1942, allege an, offense
which the President is authorized to
order tried before a military com-
mission.
' "(2) That the military commission
was lawfully constituted.
"(3) That petitioners are held in
lawful custody, for trial before the
military commission and have not
shown cause for being discharged
by writ of habeas corpus.
"The motions for leave to file peti-
tiops for writs of habeas' corpus
are denied."
Allied Actions
Hint At Early
Second Front
Russian Request Believed
Reason For Decision
To FightOn Continent
LONDON, July 31.-W)-Mounting
British and American offensive prep-
arations coupled with continuing
strategy conferences caused observ-
ers to believe tonight that a decision
has been reached to aid the impatient
Russian allies with as quick and posi-
tive action in Western Europe as
their combined resources will permit.
Thee were signs that the Russians
had laid the cards on the table and
told' their allies that the time for a
diversion in the West is here.
Delivery Difficult
The difficulty of delivering war
supplies to the Soviet over the bomb-
splashed Northern Sea to Murmansk,
and the danger that the Red Army
may be stripped of its offensive power
to aid a western drive of the Allies if
action is delayed too long were seen
as factors of urgency in the situa-
tion.
Of great moment, too, was the as-
sertion of British military sources
today that Japan has concentrated
nearly 400,000 troops on the 1,000-
mile Soviet frontier from LakeBaikal
eastward and "there is little doubt
they are planning to attack" from
Manchukuo. This source said that
the Japanese had been busy building
roads and rail communications and
that August and September are the
best months for a military campaign
in that area.
Seize Air Bases
Some observers believed that the
need for a diversion and a solution of
the Murmansk supply problem might
point to one answer-seizure of Axis
air bases in Scandinavia to provide
air protection for Arctic convoys.
Meanwhile in efforts to discourage
the Allies and buck up themselves,
German propaganda agencies were
pounding on the theme of Germany's'
western coastal defenses, which were
described as "stronger than the
Maginot Line."
The attention Germany was giv-
ing to the situation was indicated by
'a Reuters report, said to have orig-
inated in Vichy, that the occupation
forces had held a practice "invasion
alarm" at a German seabase on the
English Channel last night with sea,
land and air forces taking part.

Continues, But Reinforcements
Stall NazisNorth OfStalingrad
Prwtn, R p~I, a 4> 0 ainst Dogged Battle Goes On At Tsimlyansk

.
;

Wrilliam Peie Two Associteso
Climax Of Trial Is Reached As Evidence Reveals
Activities Beyond Confines Of America

INDIANAPOLIS, July 31.--UP)-
The government late today rested its
case against William Dudley Pelley,
Silver Shirt leader, and two associ-
ates, charged with criminal sedition,
and as a climax introduced docu-
mentary evidence which hinted his
activities might "go beyond the con-
fines of America."
Oscar R. Ewing, special prosecutor,
read to the jury excerpts froth copies
of two letters the government alleges
were written by Pelley to Dr. John
R. Brinkley, deceased, one-time,
"goat gland" specialist, and Col. E. N.
Sanctuary of New York, retired.
Sanctuary Indicted
(Colonel Sanctuary was indicted
July 21 in Federal Court at Washing-
ton, D.C., for criminal sedition and
conspiracy.)
The excerpt from the Aug. 14, 1941,
letter the government claims was
written to Dr. Brinkley, read by
Ewing to the jury, said:
"I think the time has come to con-
sider that everything I have done up
to now has been preparatory to the
real gesture of strting something
that literally sweeps the United
States and drives the luciferians into
the two oceans.
Beyond America
"In time, I am not so sure that it
isn't going beyond the confines of
America because already I find my-
self a mightier personage than my
own breed here is yet willing to ac-
credit.
"My 'drag' in Japan is so great
that if it were not for the war struc-4
I ture I could launch a branch of the
Galileans there overnight. I have
letters from prominent Japanese sol-
iciting that I do some such thing and'
offering me every practical assis-
tance in it.
Flying Carrier
Ship D'esigned
New Type Of Construction
Permits 'Unusual Load
WASHINGTON, July 31.-U)-
Aircraft engineers disclosed before a
Senate military subcommittee today
that they had designed a revolu-
tionary type of flying-cargo plane
which would be lifted and propelled
by a unique conibination of engines,
helium gas and air tunnels.
The plane could be used; they said,
as a sky-roaming carrier of a dozen
speedy fighting airplanes.
The engineers were Horace Chap-
man Young and Eric Langlands of
the Aerodynamics Research Corpor-
ation.
A description of the craft was
given the same Senate group which
heard Henry J. Kaiser. Oregon ship-
builder, offer to build giant cargo
planes for transporting military
equipment and supplies to the fight-
ing fronts.
Young told Chairman Lee (Dem.-
Okla.) of the subcommittee, that his
corporation was seeking government
encouragement, although no finan-
cial aid, to build a flying model.

"As for Germany and Europe, did
I . tell you that just before the war
broke out, every member of the Nazi
court, including Herr Hitler himself,
had read my book, 'Behold Life,' and
was classing it as exactly the type
of religion Nazi Germany could em-
brace?"
Judge Robert C. Baltzell recessed
the trial until Monday morning af-
ter the correspondence was intro-
duced,
'Earlier the government offered
evidence intended to prove that Pel-
ley's writings were similar to Axis
propaganda and did not reflect
American sentiment about the war.
Harold Graves, Jr., 27, director of
the FCC's foreign broadcast intelli-
gence division and former director
of the Princeton University listening
post, testified there were 14 types of
"argumentative persuasion" German
propaganda broadcasts, based on
such themes as:
"The United States is internally
corrupt" . . . "The foreign policies of
the' United States are morally un-
justifiable" . . . "The President of the
United States (and Prime Minister
Churchill) is reprehensible, a war-
monger and a liar and a tool of
Communists, Jews and plutocrats"
. "The United States (and Great
Britain) are weak and lack material
and manpower"
Army Orders
'Blackout Test
Set For Aug. 12
By The Associated Press
LANSING, July 31. - Forty-one
southern Michigan counties will join
in a three-state air raid blackout test
August 12 ordered by the Army, it
was announced today by the execu-
tive office and State Defense Coun-
cil.
Michigan participation in the ex-
periment was asked by the com-
manding general of the Sixth Ser-
vice Command at Chicago in a tele-
gram to Governor Van Wagoner
It asked that the blackout cover
Michigan south of the; northern
boundaries of the Oceana - Bay
county line from 11 to 11:30 p.m. on
the night of Wednesday. Aug. 12. It
also will cover parts of Illinois and
Wisconsin.
Upon receipt of the telegram, the
State Defense Council began the pre-
paration of telegraphic orders to all
county defense committees in the
"alerted" area. The council staff said
important street, airport and railway
lights would be exempted from the
blackout, as well as hospitals and
war production plants, but it was
pointed out that many plants have
been working on their own blackout
methods and may join in the state
alert.
The council said 168 blackouts
have been held by Michigan counties
and municipalities already, and that
much of the area involved has had at
least one, experience with a blackout
trial.

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Against Enemy Crossing Don River;
Local Fighting Grows At Leningrad
By EDDY GILMORE
Associated Press Correspondent
MOSCOW, Aug. 1 (Saturday). -The Red Army has retreated deeper
into the western Caucasus below Bataisk, but reinforced Soviet legions
were reported early today to have stalled a big Nazi drive in the Kletskaya
area some 80 miles northwest of Stalingrad, where the Russians rushed
trainloads of reserves to the front.
In the third critical area of the south, a midnight communique said
one Russian unit defending the Don River barrier in the Tsimlyansk sector,
120 miles upstream from Rostov, had killed more than 1,000 Germans who
had effected a crossing of that barrier.
The communique said of the new retreat south and southeast 'of Bataisk:
"After bloody battles our units fell back to new positions. The Germans
lost 13 tanks, 18 guns and more than
600 men kille'd in these battles."
P ontiac Strk eIn the Kletskaya battle, the Rus-
sians reported, the Red Army was
O I .AFLfhurling captured German tanks im-
mediately into the battle against the
Nazis.
W orkers Ends It was in the Kletskaya area that
press dispatches said the Russian re-
~~~serves had arrived in armored trains
Van Wagoner Successful to stem the Nazi drive in the Don
AgRiver elbow.
In Arbitrating Grocery "In the area of Tsimlyansk stub-
Dispute Of Rival Unions born fighting went on against enemy
groups which had crossed to the
By The Associated Press southern bank of the Don in a sector
PONTIAC, July 31.-A dispute over held by one of our 'units," the com-
CIO and AFL 'efforts to organize munique continued.
grocery clerks, which caused a shut- Tanks, Guns Destroyed
down of two war production units "Nine German tanks, 15 guns, 23
here today, ended late this afternoon machine guns and eight mortar bat-
with an agreement to arbitrate. teries were destroyed. The enemy
Governor Murray D. Van Wagoner lost more than 1,000 officers and
announced the agreement at Detroit, men."
after most of the food stores in this A resurgence of "local fighting"
industrial center had closed from on the Leningrad front also was dis-
lack of supplies or because of picket closed, the communique saying that
activity. artillery-supported Russians repulsed
The governor said AFL and CIO two German attempts to regain posi-
unions had agreed to withdraw all tions which the Soviets had cap-
pickets and permit deliveries of food- tured.
stuffs, to cease all interference with German dive-bombers supported
war production, and to accept the the Nazi charges, but five of the
decision of an arbiter to be named planes were shot down and the Ger-
by the War Labor Board. mans lost 300 men, the communique
At Washington, the board an- reported.
nounced it had appointed David A. Another 300 Nazis were reported
Wolff, a Detroit attorney, as arbi- killed when Russian guerrillas in the
trator. - Leningrad district derailed two Nazi
Wilson Appeals troop trains.
Before Van Wagoner's announce- The Russians apparently made no
ment, the dispute had brought a further offensive attempts in the
threat to tie up truck transportation Voronezh sector on the upper Don
throughout Michigan, and an appeal yesterday, but the Nazis were re-
by C. E. Wilson, president of General ported to have suffered heavily in'
Motors Corp., for federal action. a pair of unsuccessful counterattacks
The war plants closed were those I there.

U. S., British
Forces Raid
Axis In Egypt
CAIRO, July 3L.-(R)-U.S. Army
and heavy British bombers joned in
a violent attack on Tobruk lastnight
while British naval aircraft raided
Matruh, the Axis port closest to the
desert front line, and scored hits on
two ships.
After hitting .at the Matruh har-
bor the naval planes roared inland
and made direct hits on what appar-
ently were Axis fuel and munitions
dumps. Fires set off at Matruh could
be seen 30 miles away, the British
said.f
The visibility over Tobruk was
poor but the raid nevertheless was
described as successful.

of GM's Pontiac Motor Division and
of the Baldwin Rubber Co. Thou-
sands of workers were affected.
Wilson addressed his appeals to
Secretary Knox of the Navy and -to
Donald Nelson of the War Produc-
tion Board. In a separate telegram
to Dean Wayne L. Morse of the War
Labor Board, Wilson said:
"To shut down war production over
a dispute involving grocery clerks
none of whom work in any of our
plants is more than a national dis-
grace. I think I can agree with you
in these times it approaches trea-
son."
Pickets Row
CIO pickets and AFL men unload-
ing a meat truck at a north side
chain store engaged in a brief fight
this afternoon, with some stones be-
ing thrown, but no one seriously
hurt.
The clerks' dispute has smouldered
for a week, since members of the
Retail Clerks' Union (AFL) started
picketing independent stores oper-
ated by members of the Oakland
County Food Dealers Association.
Association members, reporting
threats of a boycott by some custo-
mers who are CIO unionists em-
ployed in war plants here, voted to
sign contracts with, the United
Wholesale, Retail and Department
Store Employes' Union (CIO).
I0,000 Nipponese
In Aleutian Islands
WASHINGTON, July 31.-()-A
Navy spokesman estimated today
that the Japanese had thrown a
force of possibly 10,000 men into the
western Aleutian Islands, of which
about half are actually occupying
territory ashore and half are either
manning or livinr on warshins and

Transport Sunk
A 15,000-ton enemy transport was
announced sunk in the Barents Sea.
The Russians were using every-
thing from hard-riding descendants
Af Genghis Khan's warriors to Amer-
ican-made tanks and planes in turn-
ing beck repeated attacks in the
Kletskaya area nearest, industrial
Stalingrad.
As the thunder of battle rose to a
new crescendo along the 300-.ile
Don front, the Soviet press raised a
cry to the Red Army to stand firm-
"Die but don't retreat!"
Jap Patrols
Take Intiti~ve
In, Austrqlia



New University Pension Plan Creates
Fund For All NonFaculty Employes

Army Pilot Killed
As Plane Crashes
Near War Factory
NEWARK, N. J., July 31.-P)-An
Army basic training plane crashed
in a parking lot alongside a war
plant in busy Frelinghuysen Avenue
tonight, killing the pilot, a lieuten-
ant-colonel, and leaving the fate of
.a passenger in doubt.
MaJor Oliver Holden of the First

By ROBERT PREISKEL
A new University pension plan, de-
signed to afford security to office
employes, truck-drivers, painters,
library workers and all other non-
faculty staff members, was an-
nounced to University employes yes-
terday.
Under the plan. the first perma-
nent contributory one proposed for*
non-faculty employes on the campus,
both the University and the workers
will contribute to a fund which will
permit retirement at the age of 70.

to a maximum of thirty.
For example, an employe whose av-
erage annual compensation has been
$1,500 during the five year period and
who has worked twenty years for the
University, would receive an annual
pension of $450 per year, which would
be paid in monthly installments.
According to Prof. Harry C. Carver.
of the mathematics department, con-
tributions to the retirement fund will
vary with the income of the workers.
In cases where the annual income is
$1,500 or over, both the employe and

will receive full benefits of the plan
although he has made no contribu-
tion to it. If a person becomes un-
able to work earlier than the age of
70, his case will be considered on its
individual merits.
Because of the increasing cost of
living and employes' obligation to
buy war bonds, payments to the
fund will not be begun until one year
from now, and perhaps not until the
end of the war, said Prof. Carver.
A temporary plan, beginning July
1. 1942. has been established, and

By The ?associated Press
GENERAL MacARTHTR'S HEAD
QUARTERS, Australia, July 31 -
The Australian front, quiescent for
nearly three months since the Coral
Sea battle, is becoming active again
with the Japanese showing signs of
taking the initiative.
Since landing July 2 in the GBuna-
Gona area of northeast New Guinea,
Japanese jungle patrols in the last
10 da.ys have pushed[ 55 miles through
the low grasslands and foothills of
the towering Owen Stanley ange1
a penetration that has cut half the
distance between their new bases and
Port Moresby.
First estimates of the force landed
at Gona and Buna was not over 2,500
men, too small a force to undertake
a land expedition against the AllIed
base. But it may soon be reinforced
and the Japanese apparently alrekdy
have based fighting planes there to
drive off Allied bombers.
1anran, ,n ya t-,a an lal .f