Editorial Laor Unions~A-d facial Discrimination . 40r 4ij t Nil tr4 9 lqpvvru 4ttv Weather Shower-7. VOL. LII. 6-8 ANN ARBOR, MICHIGAN, SUNDAY MORNING, JUNE 21, 1942 2:15 A.M. FINAL BBC Reports Reveal Bardia May Be Taken By AxisForce Believe Circling Of Tobruk Brought Axis Columns Near Egyptian Frontier; Cairo Dispatch Differs Nazi Africa Corps Claimed In Cheek NEW YORK, June 20.-(P)-The British radio quoted a dispatch to- night from its correspondent on the Libyan front as saying Axis forces had "probably" entered the town of Bardia, 10 miles from the Egyptian frontier." The BBC broadcast, heard here by CBS, said: "A dispatch that came in only a half hour ago from Richard Dimble- by, our observer in the desert, says that the enemy columns which with- drew from the frontier area last night, moved up again today and had by now probably entered the town of Bardia, some 10 miles from the frontier." Bloody But Unbowed But Cairo reported that Britain's bloody but unbowed eighth army stood firm tonight 30 miles inside Libya from the Egyptian frontier after turning back two main columns of Axis forces which by-passed en- circled Tobruk and drove to within 25 miles of Bardia. The armored columns of the Axis Africa, Corps withdrew after a brief fight with the sun-blackened veter- ans of Lieut.-Gen. Neil M. Ritchie and It appeared they were only test- ing the strength of the new British positions and consolidating their own stand. Military experts said no Axis tank or man came nearer than 30 miles from the frontier-the approximate position of the new and stronger Imperial defense line. Driven From Positions Although driven out of their main positions in, the loose triangle bound- ed roughly by Tobruk, Ain El Gazala and Bir Hacheim, British armored patrols still were operating extensive- ly in Cirenaica, especially in thein- land desert stretches, and were har- assing the enemy with repeated raids. Their attacks were exploiting the main problem confronting Marshal Erwin Rommel-his lengthened sup- ply lines. The Germans surround Tobruk but have not yet moved up to lay siege or assault that stronghold which hurled back every Axis attempt to take it last year in the eight months it was iso- lated. The strong defense works at the port continued to threaten the Axis rear. Consolidating Positions The British also were consolidating their new positions, much nearer their supply bases, after withdraw- ing and getting into the strongest possible positions for both defensive and offensive action. Military experts said the situation is similar to that of last year just before Gen. Sir Claude Auchinleck started his offensive which drove the Axis half way to Tripoli before stalling at El Agheila (The German High Command said "German and Italian troops are car- rying on the attack and pursuit of the enemy. Several hundred pris oh ne evrlhude were taken and important sup- plies captured." The Italians said Tobruk was bombed.) Allies Increase Sub Def enses Nazis Admit Eastern Coast Protection Is Strong NEW YORK, June 20.-()-The Germans acknowledged tonight that the Allies have "strongly increased" their defenses against Axis submarine attack, particularly along the Gulf and Atlantic coasts of the United States. "The fight against enemy supply shipping and patrol and escort ves- sels of the enemy assumed particular fierceness in the past week," said the Berlin radio in a German-language broadcast for European consumption, recorded here by CBS. T continued: "The enemy has strongly increased his submarine defense and convoy protection, and is using for the battle against thenever-greater submarine Ways And Means Group, Kills Sales Tax Proposal Leon Henderson Offers To Resign In Row Over Price Subsidization; House Committee Income 'Taxes Adopts From Formula For Colle Regular Pay Checks cting U.S. - Aid To East Seems WASHINGTON, June 20 -(-')- The House Ways and Means Com- mittee quickly killed sales tax pro- posals today, and then adopted a formula for collecting a part of each employed individual's income taxes from his regular paychecks begin- ning in January.-"- With the decisions, the Committee virtually completed a tentative draft of new tax legislation intended to add at least $6,640,000,000 to federal revenue. Final action sending the bill to the House is expected to be taken next week. The Treasury has asked for $8,- 700,000,000, which Secretary Mor- Nazis Continue Savage Attack On Sevastopol New Advance Also Made By Germans In Revival Of FightingAt Kharkov MOSCOW Sunday, June 21.-(')- The Germans continued last night to batter Sevastopol with some 150,000 men and hundreds of planes and tanks and at the same time registered a new advance in a revival of fighting on the Kharkov front, the Russians announced early today. "Ou heroic defenders are repuls- ing the enemy attacks day and night," the midnight Soviet communique said of the battle for Sevastopol, which has reached a peak of violence with the Germans making a mighty ef- fort to break into the Black Sea naval base. With the Nazis recklessly charging the north and south sides of the fort- ress, the Soviet communique reported one defending battery wiped out an entire enemy infantry battalion while an anti-tank unit of the Black Sea fleet in three days knocked out 23 Nazi tanks and killed 300 Ger- mans. In a one-line reference to the new fighting on the Kharkov front, the Soviet announcement said: "In one sector our troops fought advancing enemy troops." Launching a secondary drive of their own. Red Army tank and in-- fantry forces killed 600 Germans and captured a number of weapons and equipment, including six tanks, on the Bryansk front southwest of Mos- cow. This drive started after Rus- sian sappers cleared a gap in a Ger- man minefield, opening the way for the dnrushing Soviet attackers. Elsewhere up and down the front there was an eruption of fighting of local importance and reconnaissance activity, but it was the fighting for Sevastopol that overshadowed all else. Despite the efforts of the German Air Force to sweep the skies with hundreds of fighters and bombers over Sevastopol pilots of the Black Sea Fleet stayed aloft to challenge them. In 10 days Russian fighters and ground batteries were reported to have killed 2,000 German infantry- men and destroyed 34 tanks. genthau said was the least that Con- gress should raise. Advocates of a sales tax had argued that a 5 per cent retail sales levy, with govern- ment and state purchases exempted. would produce $2,500,000,000. Not To Be Considered At the end of a two-hour commit- tee meeting today, Chairman Dough- ton (Dem.-N.C.) announced that a sales tax would not be considered in this bill, and members assumed that the subject would not come up again for many months, if at all. The vote against a sales tax was not an- nounced but was reported to have been 13 to 8 with two proxies cast. Representatives McKeough (Dem- Ill.) and Healey (Dem.-Mass.), who led the fight against such a levy, contended that it would fall dispro- portionately heavy on those with low incomes. By a 10 to 9 vote, the committee agreed tentatively to the pay-as- you-go system ,of collecting individ- ual income taxes. It is designed to complete in two years a shift from the current system of paying one year's taxes the next year to a pro- gram of paying at least part of cur- rent taxes out of current income. Generally speaking, the new plan would work like this: Personal Exemptions An individual's annual personal exemptions would be determined and divided by 52 to ascertain the weekly exemptions. A 10 per cent "with- holding tax" would be levied on that part of the weekly pay check not covered by the exemption. Half of the pay reduction could be used as a credit against 1942 taxes due beginning next March 15, and the other half would accumulate as a credit against 1943 taxes due March 15, 1944. Labor Leaders Begin Study Here Monday Approximately 50 representatives of the UAW-CIO played chess, checkers, cards and table tennis in the East Quadrangle last night or tried to snatch campus walks be- tween rain storms, as they awaited the arrival of the rest of the 200 delegates who will attend the Uni- versity's first labor study conference, scheduled to begin tomorrow. Included in the week long program are classes for the representatives and a series of afternoon war con- ferences of which taxes, housing, ra- tioning and fair labor practices will be the central themes. Victor Reu- ther, George Addis,- University pro- fessors and labor experts from Wash- ington will pl rticipate in the dis- cussions. All interested persons are invited to the conferences. Three members of the University who will act as instructors at the conference are Prof. William Haber, newly appointed head of a War Man- power Commission department who will return from Washington for the meeting, Prof. Wesly B. Maurer and Arthur B. Secord. Reinforcement Of Egypt Armies Seems Doubtful, 'Military Observers Say British Clear Area On Channel Coast WASHINGTON, June 20. -()--- Egypt's hard-pressed defenders like- ly will be forced to rely on their own resources for weeks to come regard- less of any ifrgent pleas by Prime Minister Churchill for American aid. Because of distance, time and lim- ited shipping, any American rein- forcement of the Middle East beyond that already undertaken would be a long-time operation, competent ob- servers said. This was the reaction to London reports that Churchill's current secret conferences with President Roosevelt were concerned largely with the cri- tical Axis break through in Libya, Conferences Continue In the absence of any further in- formation from the White House since Thursday night's unexpected announcement that the Prime Min- ister had arrived in this country, it was assumed the conferences con- tinued today. Unless reinforcements arrive in a month or less, any aid for Lieut.-Gen. Neil M. Ritchie's Imperial Army would, by authoritative estimates, be too late to affect the immediate peril ous situation. From United States Atlantic ports, the 14,000-mile voyage to Suez around the tip of South Africa requires some six weeks for a slow convoy. The alternative of running the gantlet of Axis air and sea blows through the Mediterranean was tried this week with undisclosed success by a British convoy which admitted- ly sustained heavy losses. Realizes Importance Mr. Roosevelt undoubtedly is fully alive to the strategic importance of the Middle East Front to which sub- stantial contributions of American tanks, planes and trained personnel already have been dispatched. Any further diversion of resources to that area, however, would be at the expense of the Russian and oth- er theatres, because of the limitation on shipping at the present stage of the war British Clear Region Along Channel Coast (By The Associated Press) LONDON, June 20-The British Army announced today that it was taking over a 36-square mile zone in East Anglia for training purposes. The land is an obvious possible jumping off place for an invasion of the continent, which Sir Stafford Cripps said today would come. Sir Stafford said England and the United States would "launch a great and successful attack upon Hitler in the west," but he gave no indication of when or where the attack would come. Nazi Moves Expected Nazi measures to influence the in- vsiona might affect its timing, he !Germans Start Ruthless Purge Of 'Quarrelso me., Lazy'~Nazis LONDON, June 20.-(P)-All per- sons within the German Reich who are deemed irresponsible, lazy, quar- relsome, immoral or in any way dis- inclined toward wholehearted sup- port of the war effort were marked down by the Nazi party today for a, ruthless purge which already has gotten under way in Vienna and the Austrian province of the Lower Dan- ube. The internal campaign, on a scope so broad that apparently the Nazis can imprison or otherwise dispose of anyone whose looks they do not hap- pen to like, was disclosed in a radio broadcast by DNB, the official Ger- man news agency. Elimination of this "element of un- rest of the first order," said DNB, is "very important, particularly in war- time." Particular objectives of the purge are "anti-social elements," the agen- cy said, applying this epithet to any- one who "owing to criminal, anti- state or querulous inclinations con- tinually enters into conflict with the penal law, the police and other au- thorities." Others which it said were to be "educated" by the Gestapo or sent to forced labor camps or to "welfare institutions" included "the annuity- hunter, loath to do any kind of work, and the insurance sponger, or who- ever tried to burden the community with his upkeep or that of his chil- dren ; whoever is particularly un- economical and uncontrolled, lacks a sense of responsibility and is neither able to run an orderly household nor raise children to become useful citi- Bombs Disable Japanese Sip Heavy Cruiser Virtually DemolishedBy Plane WASHINGTON, June 20. --OP)- Bombs from carier-based planes of the U.S. Navy virtually demolished a heavy Japanese cruiser in the Mid- way Island battle, official Navy pho- tographs disclosed today. Gun turrets were twisted, plates were buckled, airplane catapults were blown to bits by the bombs which left the ship listing, fire-gut- ted and wholly disabled during the battle in which at least 17 enemy vessels were sunk or damaged. One gaping slit just above the cruiser's waterline gave evidence that a torpedo plane might have participated in the attack. Other jagged holes showed evidence of bombs detonating powder magazines beneath the gun turrets. Just what was the final fate of the 8,500-ton cruiser of the Mogami class and its complement of 850 men was not disclosed. But one naval expert said the damage was so severe that only by towing could it have been moved from the battle scene. zens. . . . the drunkard . . . and finally, persons who stand outside the national community by their im- moral life or earn their living by it." The broadcast also made somewhat vague references to racial purity, per-I sons of unsound mind and persons having hereditary diseases. Although hostility to the Nazi re- gime long has been subject to harsh1 repressive measures, DNB indicated that in this intensification of the campaign against dissidents andI drones the Nazi party alone would be both prosecutor and judge. "Committees have been appointedt in regions and districts to deal with these anti-social elements," it said., "Their expert opinion will bind ad-' ministrative authorities. The latter will decide whether an individual will be sent to an institute of welfare, to forced labor, or to a labor education- al camp of the state police. Thus the dread Gestapo becomes "schoolmaster" to all unwilling or unable to make themselves useful to Adolf Hitler. War Workers Can Buy Tires OPADeclares Committees To Be Set Up For Establishing Need; Effective, On July 15 WASHINGTON, June 20. (k")--" The Office of Price Administration made war workers eligible to buy second grade tires today provided their need for them is certified by special rationing committees to be established in all war plants em- ploying more than 100 workers, Plants with fewer than .100 em- ployes will not be eligible to partici- pate in the new plan, nor will their workers be eligible to buy the tires. OPA said the plant rationing com- mittees would be made up of labor and management members and, in addition to determining a worker's need for tires, also would make cer- tain that his automobile was being used in a transportation pool to carry other workers to and from their jobs. After a committee issues a certifi- cate to a worker, the latter must pre- sent it to his local rationing board. The boards retain their power of re- view and denial, OPA expl'ained, but the plan is expected to relieve them of the burden of establishing facts certified by the plant committee. The certification must show that the worker applying for the tire ra- tioning certificate is a permanent employe, has no other means of transportation, lives two miles or more from his place of employment. and regularly carries at least three other workers with him. D istant 1s all OPA Director To Quit Job Unless Congress Enacts Price Subsidy Measure Believes Inflation Can Be Prevented . WASHINGTON, June 20 -()- Leon Henderson, embroiled in a pat- ronage row with some members of Congress, offered today to resign his Price Administrator's job if: Congress refused to enact price subsidy legislation so long as he re- mained in office, or President Roosevelt wanted him t0. The price administrator's offer was made at a press conference at which he said he still believed that inflation could be prevented, but made it clear that he thought little progress was being made currently toward that end. Success Or Failure Success or failure in the battle against it is dependent on several developments, he said, Specifically, he described the fail- ure to stabilize wages and farm prices as the two greatest threats to price stabilization, and asserted that, "without criticism of those in charge of the tax program, nothing has been done to date on the tax front which would reduce the inflationary Pending in Congress is a request for $161,000,000 for the Office of Price Administration, primarily for administration of subsidies to hold prices at their present "frozen" levels. Under Henderson's plans, RFC funds would be used to pay increased costs of production and distribution of living commodities rather than letting the costs be passed on in added prices paid by consumers. Congress has shown no disposition to act on this request with speed, and there has been evident dissatisfac- tion, meantime, with Henderson's method of filling OPA jobs. Senators Complain A group of New Deal Senators complained to President Roosevelt recently that the price administrator had filled posts in their states with- out consulting them, and, in some cases, had appointed their political enemies. To such criticism, Henderson has replied that he has appointed to each post the best available man. At his press conference, Henderson observed somewhat ruefully that he had made considerable progress to- ward becoming the most unpopular man in the United States and seemed a certainty to cinch the title in view of "some things still to 'be done." Navy Discloses Ships Damaed By Axis HMtnes WASHINGTON. June 30. -(P)- The first official report of enemy mine laying oerations along the United States coast in this war came today in a Navy announcement that mines had caused the recent sinking of one merchant ship and damage to .another off the Virginia shore. The Navy said careful investigation had convinced it that the two ship casualties were not "as previously believed," the results of submarine attacks but were caused by the "ves- sels striking enemy mines." "Undoubtedly, these mines were laid by an enemy submarine under the cover of darkness, when detec- tion is extremely difficult," the Navy said. . That was the only official Navy comment regarding the minelaying, but the development had not been unexpected in Naval circles. Long-Range Submarines Germany is known to have a num- ber of long-range suirmarines equip- ped for mine laying. Available rec- ords show several ocean-going U- boats of more than 1,000 tons dis Senate Committee Proposes Placing Planes On Every Ship I J. WASHINGTON. June 20. -(A')- A proposal to make every warship of the fleet-from destroyer to battle- ship-a carrier of fighting planes was advanced today by members of a Senate committee considering a House-approved $8,500,000,000 Naval expansion bill. Expressing satisfaction at the Navy's decision to concentrate im- mediately on the construction of aircraft carriers instead of battle- ships. Senator Gillette (Dem.-Ia.) of the Senate Naval Committee told re- porters: "I am hopeful that immediate at- tention will be given to supplement- ing carrier strength by combining units for both offense and defense as air complements for all warships large enough to accommodate them." Jap Destroyers Used Gillette said he was informed by a source he considered reliable that the Japanese now were mounting fighter planes and even small bomb- ers on destroyers, adding that all of their larger vessels appeared to carry for landing in the water after being launched by catapult.) Recent editions of Jane's Fighting Ships show that the Japanese have installed four planes of undesignated types on their newer battleships, three planes on the older dread- naughts and four on their cruisers. No reference is made to planes on destroyers. Similarly, newer United States battleships of the North Carolina class are listed as mounting four aircraft, older battleships three, and cruisers four. Senator Stewart (Dem.-Tenn.) as- serted that all ships plying the ocean ought to carry aircraft for their own defense. if nothing else. He said this war already had demon- strated that battleships could not survive aerial attacks without aerial protection. Committee To Inouire Agreeing that all American war- ships ought to carry fighting planes, Senator Ellender (Dem.-La.) pre- dicted the Naval Committee also would inquire into the relative merits said. Ordinarily these developments would have produced a wild frenzy of expectation in Britain, coming as they did just when Churchill is con- ferring with President Roosevelt in the United States, when there have been recent arrivals of strong United States Army and naval forces, and when the war in Russia is nearing its first anniversary. But British reaction was condi- tioned by growing uneasiness over the German attack on Russia's Se- vastopol and deterioration of the British position in North Africa, coupled with indications that Hitler my be preparing to seize the initia- tive in an even more decided man- ner in the Mediterranean. Hitler Demands Shits The cause for disquiet over the latter sitution was found in a Reu- tens News Agency dispatch "from the French frontier" reporting that Hit- ler has demanded that Pierre Laval, Vichy Chief of Government, cede 1,000,000 tons of French shipping- a demand which seemed to say that the Nazis are planning a vast move- Representative Bradley Predicts End Of Sugar Rationmng Soon WASHINGTON, June 20-(;')-An end to sugar rationing within a few weeks is expected by Representative Bradley (Rep.-Mich.). It will be discontinued, he pre- dicted, as a matter of necessity be- cause the warehouses are bulging. Bradley's statement added that he doubted there ever was a serious shortage and suggested that if there was one it was the fault of the ad- ministration. "If there is a shortage," he asked, "Why?" and answered: "Because the policy of the administration has been to pay out huge checks to sugar corporations to raise less sugar . . . "It is a well known fact that sugar warehouses all over the country are crammed to the doors with sugar which the rationing program will not permit them to dispose of as fast ac 'aQ~n o nmP n ,i, T +nAL-ri oA r a. the rationing program because the Agriculture Department ordered a 16.2 per cent reduction of the 1941 domestic beet sugar acreage; "Beet sugar," he added, "was out because of a similar cut in the pro- duction of sugar cane in our conti- nental United States, all in further- ance of our 'good neighbor' policy, "In the 1940 annual report, the Secretary of Agriculture observed that sugar is one of our agricultural imports that can be produced in the United States, and he boasted how the operation of the ever-normal granary as applied to sugar had pro- tected farmers and consumers dur- ing the past year." Allied Bombers Strike At Japanese Air Bases eI