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Editorial
Henry Wallace For
President In 1944 .

I

VOL. LIL No. 17-S ANN ARBOR, MICHIGAN, THURSDAY, JUL= ,N 1942

2:15 A.M. FINAL


Nelson Reveals
Full Reasons
For New WPB
Realignment
Conversion Of Industries
To Wartime Production
Is Over; Defense Needs
To Govern Supply Uses
NewAdministrative
Posts Are 'Created
By The Associated Press
WASHINGTON, July 8,-Donald
M. Nelson announced realignment of
the top directing officials of the War
Production Board today and happily
reported that the first,' difficult
phase of the production task had
been °,accomplibhed.
The objective of converting big
industries from the manufacture of'
automobiles and other civilian items'
to the making of planes and other
military essentials has been accom-
plished, he said. I
Retooling Carried On
With this has gone the Herculean
Job of retooling these industries of
.providing them with the machinery,
the jigs and dies and myriad other
devices without which the engines
and munitions of war could not be
manufactured.
Now, he said, a new phase lies
ahead, one of controlling production
by directing the flow of the limited
supply of raw materials into the
making of the things which the Army
and ,Navy considers', urgent, with a
simultaneous regard for producing,
too, the things the civilian economy
, needs.
First 'consideration will be given,
of course, to the requirements of the
fighting forces, he added, but it mayf
.become necessary to ask that they
reexamine their schedules in sqme
instances in the light of shortages of1
raw or other materials.
Up To Us
"It is not up t vfus to tell the
Army and Navy what they want,"t
.he said, "but it is up to us to tell
them when the supply gets so shortt
that a program must be changed."t
To supervise the new production
phase, Nelson created four new of-
fices between himself and the actualt
operating cgmmittees to handle de-2
tails of administration which he has
attended to personally in the past.
Thus he will be left free to decidea
matters of policy.e

rAllies Bomb Rommel's

I

Supply Ports In Libya
Egyptian Fight Takes To Air As British Desert Patrols
Scout Bivouacked Axis Forces West Of El Alamein

Enemy Ship
Is Damaged
By Lone Sub
Jap Destroyer Torpedoed
Off Aleutian Islands,
Communique Reports
Success On Sea
Claimed By Navy

Nazis Take Staryi Oskol
As Reds Counter-Attack;

By HARRY CROCKETT
Associated'Press War Correspondent
CAIRO, July S.-The British de-
fenders of Egypt resorted to desert
patrol and air actions today against
the bivouacked Axis forces 'vest of
El Alamein, but the great declsion
apparently was in the making in
aerial battle, as far away as the
mid-Mediterranean island of Malta.
There were indications that the
supplies Marshal Erwin Rommel
needs to resume his march into
Egypt were being harassed in transit
overseas. frome Italy, and the ports
of entry in Libya were being 4nethod-
ically bombed by the Allies.
The British communique issued
this morning told of continuing en-
emy air attacks on Malta, and these
intensified blows on the much-
bombed island apparently were de-
signed to counteract British attacks
on Axis convoys supplying Rommel's
desert armies.
The communique said that British
fighters shot down nine Axis fighters
and damaged others in yesterday's
fighting and that in the Malta oper-
ations and the desert warfare com-
FBI Continues
Bu1 dist Drive;
Gets 70 More

Denaturalization
Begun Against
AllegedBUnd

Actions
24 Other
Members

. I


Survey'Finds
C ,c odEl $
City School
System Okay
The way Superintendent Otto W.
Haisley runs the public schools of
Ann Arbor is apparently all right
with the registeregi electorate, a
z nine-month public opinion survey
conducted by R. R. Shelters, secre-
tary of the survey committee of the
Board of Education, revealed yester-
day.
Shelter's told board members and
a group of public schoolteachers
packed in Ann Arbor High School's
small auditorium last night that the
survey had "no whitewashing or
witch-hunting" motives behind it.
He said the survey was conducted
"Impartially and honestly" to get at
the root of the alleged 'criticism be-
ing fired at the Ann Arbor public
schools.
Begun lasp October after an ex-
plosion had ousted Hisley from his
superintendent's post only to have
a new school board reinstate him-
the survey sampled 450 of Ann Ar-
bor's 4,500 registered voters.
Most important question in the
survey was: "On the whole do you
think that the Ann Arbor school
system is doing a good job or a poor
job?" 234 (or 57 percent) of those'
approached answered "very good,",
202 (or 45 percent) said "fair" and
only 13 (or three percent) were em-
phatic with their "no."
Army Procurement'
Seeks Skilled Help
The many positions open in the
Army Quartermaster Corps Motor
Transport Service office in Detroit
were explained last night by Norbert
A. McKenna, assistant procurement
director of the division, in the Rack-
hamn Tecture H-all.

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By The Associated Press
NEW YORtK,*July 8.--OP)-Federal
agents, carrying on the government's
sweeping effort to wipe out the der-
man-American Bund, arrested 70
persons, including 15 women, in a
series of swift raids tonight.
The roundup, biggest haul since'
the PBI began its drive Tuesday with-
the seizure of 29 men in coast-to-
coast sorties against the Bundists,
brought the number in Federal cus-
tody to 99.
Denaturalization
Denaturalization proceedings also
have been ordered against 24 other
alleged Bund members.
The national campaign to eradi-
cate the Bund was launched with the
arrest of 29 persons Tuesday by Fed-
eral agents armed with warrants ob-
tained by U.S. Attorney Mathias Cor-
rea.
The Bund, also, known as "a mili-
tant organization of free Americans,"
has been nomin; ", defunct since
the outbreak of war between the
United States and Germany, but the
indictments against those arrested
on the first day of the government
drive alleged a conspiracy continuing
from January 1, 1940, to the present.
Selective Service Evasion
Charges against the 29 indicted
range from espionage-against Ger-
hard Wilhelm Kunze, former na-
tional leader of the Bind recently,
captured in Mexico and now held at
Hartford, Conn., under $50,000 bond
-to evasion of the Selective Service
Act and the Alien Registration Act.
John August Grill, one of the 29,
pleaded guilty in New York City late
today at his arraignment before Fed-
eral Judge George Sweeney, who had
previously ordered seven others held
in bonds totaling $85,000. The seven
pleaded innocent.

bined eight British fighters were lost.
with six of the pilots saved
(The British communique from
Malta Tuesday evening reported the
island defenders had bagged 24 en-
emy planes in 24 hours, and there the
British undoubtedlyewere using
planes delivered recently off the
flight deck of the U.S. aircraft car-
rier Wasp.)
In addition to the indicated long-
range attacks on Axis convoys at sea
and in African ports such as Tobruk
and Bengasi, the Allied aerial forces
were striking Rommel in the recoiled
positions he has taken by curving
his southern flank like a fishhook,
with the shank on the seashore west
of Alamein and the point around to
the southwest above the Qattara De-
pression.
British Mediterranean
Fleet Spreads Power
WITH BRITISH FLEET IN THE
MEDITERRANEAN, July 8. -()-+-
Britain's Mediterranean Fleet is
spreading its power over a wide area
to protect Allied supply lines and
simultaneously keeping a weather eye
open for any enemy attempts to re-
inforce desert positions through sea-
borne landings.
While the British Army is holding
firm against Axis attacks and artil-
lery duels rage 70 miles from Alex-
andria, the warships are maintaining
ceaseless patrols, ready to give battle
to surface craft, sky raiders or sub-
marines.
Unlike previous desert campaigps,
the Fleet this time did not have a
chance to turn its guns on the enemy
since thus far' no effective targets
have been offered.
Kelso To Lead
Reorganiz atton
Of StateRelief
By The Associated Press
LANSING, July 8.-Governor Van
Wagoner today appointed Robert W.
Kelso, director of the Institute of
Public and Social Administration of
the University of Michigan Graduate
School, to call signals for a wide-
spread reorganization of Michigan's
public relief system.
Kelso accepted the position of con-
sultant with the understandingdhe
would spend not more than 90 days
on the job, at= a salary to be fixed
by the State Civil Service Commis-
sion.-
He has two tasks, Van Wagoner
said: to direct a partial integration
of the social welfare and social secur-
ity branches of the State Social Wel-
fare Commission, and to propose leg-
islation which would extend the in-
tegration.
Van Wagoner said he wanted it
understood he was seeking no auar-
rel with the powerful Michigan Asso-
ciatii of Supervisors, which'has re-
sisted efforts to consolidate the two
divisions. He hinted that if Kelso's
legislative recommendations are too
controversial, they may not be dis-
closed until the legislature meets
He described Kelso as an "out-
standing authority" on welfare sub-
jects capable of offering valuable
suggestions to promote efficiency and
economy in the welfare set-up.


By The Associated Press
WASHINGTON, July 8.-A lone
American submarind, following up
the smashing undersea attack on
Japanese warships in the Aleutian
Islands on the Fourth of July, was
reported today to have torpedoed
and probably sunk an enemy de-
stroyer last Sunday in the vicinity of
Kiska Island.
Announcement of the action was
made in a Navy $communique which
WASHINGTON, July 8. --(P)-
The Pacific War Council looked
at events on the Aleutian front to-
day and one member, Canadian
Minister Leighton McCarthy, re-
ported in connection with the Aleu-
tians that President Roosevelt had
referred to the sinking of Japanese
destroyers there by United States
submarines and indicated that ad-
verse weather since then had ham-
- pered further counter-blows.
noted that this was the fifth enemy
destroyer suntk or damaged by Amer-
ican subs in the Aleutians area dur-
ing the two-day period, July 4-5.
The Independence Day operation,
carried out by at least two submers-
ibles, resulted in the sinking of two
destroyers at Kiska and one at Agat-
to. A third destroyer at Kiska, which
is 585 nautical miles west of Dutch
Harbor, was left "burning fiercely."
Thus in two days the submarines,
pressing home their attack under
incessant fog, which had hampered
aerial bombardment, raised the en-
emy's ship losses in his attempts to
consolidate his positions on Ameri-
can soil to five sunk, one probably
sunk and m}ine damaged.
And the toll of Nipponese ships,
taken by American submarines in
the war to date as reported in Navy
communiques was raised to 47 sunk,
14 probably sunk and 13 damaged.
Canal, Pipeline
Get Senate Nod
$93,000,000 Construction
FinallyApproved
By The Associated Press
WASHINGTON, July 8. - The
Senate Commerce Committee today
approved a $93,000,000 measure au-
thorizing construction of the Florida
barge canal and two ,pipelines and
enlarging of the Gulf waterway after
hearing a forecast that the East
Coast's petroleum requirements might
be met by the end of the year.
When it voted its 11 to 3 approval
the committee had before it a report
by J. R. Parten, Director of Trans-
portation in the Petroleum Coordi-
nator's Office,, estimating potential
daily deliveries of 1,429,000 barrels
of oil with completion by Dec. 31 of
upwards of a dozen pipeline con-
struction and readjustment projects.
Farten said this was 62,000 barrels
in excess of average needs for this
year.

it was possible to speculate that the
prosecution was tracing the earlier
background of the defendants before
taking up the recital of their recent
activities.
All of them were in this country
for considerable periods before re-
turning to Germany, attending the
Nazi school of sabotage, and board-
ing U-boats from which they landed
in rubber boats, with a fortune in
American currency and quantities of
explosives, on Long Island and Flor-
idabeaches.
They were arrested soon afterward
by agents of the Federal Bureau of
Investigation. Their' apprehension
prompted the Senate Judiciary Com-
mittee to approve the award of an
"appropriate medal of honor" to J.
Edgar Hoover, the chief of the FBI.
Secrecy Impressive
Secrecy and unusually heavy and
well-armed guards were the first or-
der of the trial. The men were lodged
several days ago in the District of
Columbia jail, and a military detail
assigned to walk post about it. To-
day they were loaded into two huge
black vans and taken to the Justice
Department building. Police lined
the route and the vans were followed
closely by an armored Army scout
car with its machine guns at the
ready. It was assumed that one or
more guards were assigned to each
prisoner for otherwise all eight could
easily have been accommodated in
one vehicle.
The vans entered the flagged
courtyard in the center of the block-
square Justice Department building
through a seldom-used gate and the
prisoners were unloded in the base-
ment of the building. surrounded by
troops. Then they were taken by a
private elevator to the fifth floor.
Gejn, Knudsen
A rrivesToday
Lieut,-Gen. William S. Knudsen
is scheduled to arrive in Ann Arbor
at noon today for a morale and effi-
ciency building tour of local defense
plants.
He will inspect the Hoover Ball
and Bearing, American Broach and
Machine, King-Seeley Corp. and In-
ternational Industries plants as part
of his eight-day trip through Michi-
gan industries outside of Detroit.
General Knudsen will have lunch
with heads of Ann Arbor war fac-
tories in the Union before setting out
on his hurry-up visits to their plants.
At the luncheon will be Cone W.
Lighthall, general manager of Hoov-
er Ball; John Airey, King-Seeley
president; George Langford, presi-
dent Economy Baler; Hugo Olson and
Francis J. Lapointe, president and
vice-president, respectively of Ameri-
can Broach; Joseph F. Buhr, presi-
dent of Buhr Machine Tool Co.
Pollock To Lecture
On Russia's Place
In Future World
Russia as a vitally important force
in the world to come will be discussed
by Prof. James K. Pollock of the
political science department at 4:15
p.m. today in the Rackham Amphi-
theatre.
Basing his University lecture. "On

Jdap Invasion
Columns Seeky
China Railway
Battle Enters New Phase
As Outflanking Attempt
Fails, Casualties Heavy
By The Associated Ps
CHUNGKING, July 8.-The fight,
for China has gone into a new phase
with fierce battles swirling around
two rail line towns southwest of Nan-
chang where the Japanese have
struck toward Hunan Province in a
bid for control of the second vital
link of an overland railway system
to link Shanghai to Singapore, the
High Command disclosed tonight.'
A communique said invasion col-
umns which drove to Fengchang and
Changshu, 30 and 45 miles south
west of the Kiangsi provincial capi-
tal, failed to outflank Chinese posi-
tions and were engaged in a battle
with heavy casualties for both sides.
Japs Surrounded
A central news dispatch said Jap-
anese spearheads had penetrated both
towns but had been surrounded by
the defenders.
The Japanese seemed launciled up-
on a new effort to storm westward
into Hunan, where they failed and
were beaten back before in three
drives toward Changsha' from the
north and other atta4s across the
Kiangsi border from the east.
A clear route, at least across the
southeastern third of the, province,
would be needed to advance their
plan to' ease the load on their coast-
al shipping by winning a complete
north-south railway system.
Already in Japanese hands are rail
connections from Korea and Man-
chukuo through Shanghai to Hang-
chow. Attacking from Hangehow
through Chekiang Province and from
Nanchang through eastern Kiangsi
Province the Japanese in the last
month have worf all but a bitterly-
contested 25 mile segment of tha
first rail line needed to complete
such a system,
Freak Aceident
Electrocutes 2
Chelsea Farmwife, Driller
Killed ByLoose Wire
/ e
Special to 'the Daily
CHELSEA, July 8.-A young farm
wife and a Chelsea well-driller were
electrocuted here late today when a
tall drilling jig fell from a guide ring
and lodged against a high tension
wire carrying 11,000 volts.
Dead are Mrs. Betty Van Riper, 20
years old, and Carl Barth, about 47
years old. The accident occured on
the Van Riper farm, five miles north
of Chelsea,
Mrs. Van Riper and her sister, Jean
Gillepsie, 12 years old, were in the
farmhouse when Barth was killed.'
Hearing his screams, Mrs. Van Riper
sent Jean to the next farm to phone
for help.
When the young girl returned with
Mr. Van Riper and others, Mrs. Van
Riper was found prone -on the run-
nina baaa r + t a..mrllin . ryr

Nazi Hears Ex-Fiancee Testify
AgatstHim In Secret Trial
Pretty Chicago Divorcee Takes Stand Against Haupt
As U.S. Begins Prosecution Of Eight Saboteurs
By The Associated Press
WASHINGTON, July 8.--Herbert Hans Haupt, one of the eight would-
be saboteurs from Germany on trial for their livs today heard a former
fiancee, who jilted him when his true character was revealed, testify against
him-presumably to his erstwhile activities as a free American citizen with
a yen for helping Hitler.
The witness was Mrs. Gerard Melind, pretty 24-year-old Chicago di-
vorcee, a bright figure in her white suit, flowered blouse and white turban
against a grim setting of barricaded corridors, uniformed judges and
heavily-armed guards.
From the fact that she was on the stand-one of the few facts to seep
from the highly secret proceedings-' -

Russian Sub Hit

irpitz
Drive Wipes Out German.
Crossing Of vital Don;
BridgeheadsDestroyed
Submarine'Twice
TorpedoesWarship
By HENRY C. CASSIDY
Associated Press Correspondent
MOSCOW, July 9 (Thursday).-
The Russians acknowledged today
that the battered city of Staryi Oskol,
65 miles west of Voronezh, has fallen
to the Germans after heavy fighting
but Soviet reports indicated that
spirited counter-attacks have wiped
ou t the first German crossings of
th vital Don River, 65 miles east of
Staryi Oskol,
Russian tanks, cavalrymen from
the Urals and Red infantry appeared
to have taken the situation in hand
as. the Germans moved nearer Voro-
nezh, vital as an important link of
the Moscow-Rostov rail line.
Russian dispatches said that light
enemy units which reached the east
bank of the Don River in the Voro-
nezh areahad been destroyed and
the bridgeheads over which they
crossed were torn down.
Tide Turned 'Monday
The tide apparently turned Mon-
day night when the Red Air Force
bombed and shattered German pon-
toon bridges and prevented the en-
emy from sending reinforcements to
the east bank,
"During July 8 our troops fought
fierce battles west of Voronezh," the
Soviet midnight communique said,
"After stubborn battles our troops
evacuated the town of Staryi Oskol.
On other fronts there were no essen-
tial changes."
Staryi Oskol was an objective of a
German drive which developed in
full force last week-end as the Ger-
mans sought to fight their way to
the Don in their Kursk offensive.
Northeast Of Kharkov
The city, the southernmost point
of a triangle formed with Kursk and
Voronezh, is some 80 miles northeast
of Kharkov, scene of heavy fighting
this spring.
The Russian counterattacks ap-
parently have pushed aside heavy
German forces from the main line
of their offensive smash toward the
Caucasus.
The violent struggle still raged on
the Don water barrier, reports indi-
cated, and the bulk of the German
forces were reported held on the
west bank. Repeated further efforts
to cross the stream were said to have'
been thrown back.

Submarine Twice
Torpedoes Warship

I



European Invasion, Defeat Of Jap
MainFleet Is Allied Plan-Bourne
___--______ K-t

By The Associated Press
CHARLOTTESVILLE, Va.,. July 8.
-An over-all strategy of defeating
Japan by forcing its main fleet into
action and conquering Germany
through an eventual invasion of
continental Europe was outlined as
a promising possibility today by Brig.
G. K. Bourne of the British joint
staff mission in Washington.
The highly-placed staff officer
outlined the considerations confront-
ing the United Nations war planners
in an address prepared for the Uni-
versity of Virginia's Institute of Pub-
lic Affairs but carefully refrained,
for military reasons, from defining
any specific courses of future action'
which may have been adopted thus'
far.

because it is an offensive and forget
the need for covering up our soft
spots."
But, Bourne continued, the United
Nations "refuse to be ruled by his-
toric precedent and are determined
to find new methods for the final
offensive." It might develop, he said,
that the Allied methods of attack
would have to conform to the prin-
ciples of Hitler himself,
Continues Blockade
"In other words," he added, "we
may be right in not plunging ahead
into an uncalculated risk but rather
beat Hitler at his own game in the
preliminary phase; by softening pro-
cess, by continued blockade, by in-
creasingly intense British and Amer-
ican bombing, by the threat of in-
vasinn and h raids on the model of

depends upon her fleet for protec-
tion, as does England. The question
then was one of forcing the main
Japanese Fleet into action, end not
one of surface actions between bat-
tle squadrons.
Air Forces Promising
"The increasing effectiveness of air
bombing attack and particularly of
its long range power is the most
promising factor for a reasonably
quick decision in the Pacific war," he
said.
Turning to questions of grand stra-
tegy, he said that first essentials were
continued and increasing assistance
to Russia, and the defense of Great
Britain, against Nazi seizure. The
latter, he added, entailed an inten-
sification of the war against sub-
marines in the Atlantic,
"The hiL miqestion then arises " he

By The Associated Press
MOSCOW, July 9 (Thursday),-
The powerful new German battleship
Admiral Von Tirpitz, now on the
loose again from her Norwegian fjord
refuge apd ranging the U.S.-British
supply route to Northern Russia, has
been torpedoe'd twice and seriously
damaged by a Russian submarine,
the Russian communique announced
early oday..
The 35,000-ton battleship, pride of
the Nazi fleet and sister ship of the
Bismarck, which the British Navy
harried tg her doom last year, was
hit by two torpedoes in the Barents
Sea, the official report declared.
The Russians, in the same action
in northern waters, sank a German
transport and damaged another, the
communique declared.
" In the Barents Sea one of our
submarines attacked the new Ger-
man ship Admiral Von Tirpitz. Two
torpedoes hit the vessel and caused
serious damage," the communique
said.
Brumm To Lead
Post-War Council
Panel iscussion
The Post-War Council will put
Prof. John L. Brumm of the journ-
alism department, on the speaker's
platform at 7:30 p.m. today in the
Grand Rapids Room of the Michigan
League.
William Muehl, '44L, will introduce