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Editorial
Costello Moves Argentina
Towards Axis .. .

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VOL. LII. No. 19-S ANN ARBOR, MICHIGAN, SATURDAY, JULY 11, 1942

2:15 A.M. FINAL

ital Russian Railway

Lines Cut In South


Savage Battle
Breaks Calm
In Area West
Of El' Alamein
Combined Attack Of U. S.
And British Bombers
Crushes 400 Armored
Axis SupplyVehicles
Sub And Bombers
Hit Libyan Convoy
By The Associated Press
CAIRO, July 10.--(A)-Fierce fight-
inig broke out today between British/'
and Axis desert forces on the Medi-
terranean rim west of ElVAlamein in
' a renewal of the battle for Egypt
which had been bogged down in an
uneasy lull for more than. a week.
The new fighting erupted after
RAF ad American planes were re-
ported to have destroyed or disabled
400 - to 500 Axis vehicles out of a
concentration of 2,000 shuttling for-
ward to replenish Field Marshal Er-
win Rommel's thrust toward Alex-
andria, 70'-miles from the front.
The fighting ended a deadlock of
several days during which both ex-
hausted armies dug in under severe
sandstorms and awaited supplies and
reinfo6rcements.
.Front 'dispatches gave no hint of
the trend of the great struggle, but
did say that the Axis apparently had
not made any additional gains east-
ward.
Rommel Forced Back
Rommel's German-Italian legions
already had been compelled to with-
draw part of his curved-back right
wing northward toward the sea be-
fore today's fighting was resumed.
Huge four-motored bombers of the
U.S. Air Force were reported at-
tacking enemy shipping in the sea-
lanes while the RAP concentrated on
Axis land lines.
Besides the 400 to 500 vehicles
caught in bne huge camp the RAF
war' said to have destroyed 55 other
trucks.
It was certain that the Germans
were moving supples and reinforce-
ments to their army threatening Al-
exandria, 70 miles to the east, be-
cause for the second time in a week
the British told of attacks on Medi-
terranean convoys.
A British submarine sank two ships
of a sea train bound for Libya, an
Admiralty announcement said. It
was probable that the Liberators
(Consolidated) of the U.S. Army Air
Corps assaulted the survivors of the
same convoy.
24 Axis Planes Downed
(The British announced that 24
Axis planes had been shot down over
Malta during the 24 hours ended last
night. The same number was claimed
Tuesday. Ueavy Axis air attacks on
Malta in the past have coincided with
the movements of convoys across the
Mediterranean.)
On land, the Germans withdrew
part of their already curved-back
right wing northward, closer to the
sea.
The reforpling or the Axis right
wing was forced by a clash in the
southern sector between stabbing
british armored columns and Axis
tank forces, recorded by the British
Command communique. The effect
is that Rommel's line now describes
a rough arc from the coastal anchor
on the left slightly west of El Ala-
mein to the right flank in the south-
west.

Nmitz Slightly
InjuredIn Crash
WASHINGTON, July 10.-(JP)-
Admiral Chester W. Nimitz, Com-
mander of the United States Pacific
Fleet, was injured recently in a West
Coast airplane crash in which a Na-
val Reserve pilot lost his life.
The accident, which occurred
when the plane was landing at an
airfield at an unidentified port, was1
announced today by the Navy de-
partment in a statement emphasiz.-
ing that the foremost Naval officer1

German Subsidization
Of U.S. Trucking Bared
FBI, Army, Reveal "Accidents" Result Of Sabotage;
28 American Operators Found In Nazi Pay

(Editor's Note: Thistexclusive story
by Clifford A. Prevost, head of the
Detroit Free Press Washington Bureau,
is printed by special permission of the
Detroit Free Press.)
WASHINGTON, July 10.-Comple-
tion of a nationwide study of the
ownership of trucking concerns re-
vealed that 28 of them had been sub-
sidized by the Geran Government,
it was made known today. The probe,
by the FBI and military intelligence,
was under way for several weeks.
Now that the survey has been ter-
minated it is expected that the truck-
ing route between Detroit and Port
Huron, on the western end ,and Buf-
Saboteur Trial
Secrecy Irks
OWlDirector
Rep. Monroney Declares
Procedure In Violation
Of Democratic Spirit
By The Associated Press
WASHINGTON, July 10.-Dissat-
isfaction with the profound secrecy
in which a 'military commission is
trying the eight alleged Nazi sabo-
teuts who landed in Anerica from
U-boats was expressed today by El-
mer Davis, the director of war in-
formation.
At the same time, Rep. ,Monroney
(Dem.-Okla.), said in a statement
the procedure was a violation of "the
democratic principle for which
America is fighting," and was "not
satisfactory to the American people."
From the trial itself there was lit-
tle news. A statement issued at the
close of the day said.:
"The commission opened the third
day's proceedings at 10:27 a.m.
"Before the proceedings opened,
the commission permitted the United
States Army signal corps to make
photographs and silent motion pic-
tures of the trial scene.
"Most of the day was taken up by
the testimony of An FBI agent and
by the reading of documents.
"Counsel for both sides stated to
the commission that the great vol-
ume of evidence to be introduced
was expected to prolong the trial.
"The commission will sit on Sat-
urday."
This was an intimation that the
trial would run into next week, al-
though earlier Attorney General
Biddle had expressed the view that
it could be finished by tomorrow. It
was understood that the commission
would not sit on Sunday.
Labor Threatens
Strike For Rent
In Detroit Area
DETROIT, July 10.-()-The Of-
fice of Price Administration, reply-
ing to UAW-CIO threats of a "rent
strike" if real estate owners succeed
in their drive to raise rents above
the present ceilings here, said to-
night that no such action in behalf
of landlords is contemplated now.
The OPA made the statement in
a telegram to George F. Addes, Sec-
retary-Treasurer of the United Au-
tomobile Workers-CIO, who had
asked that labor and tenants be given
a hearing before any rent boost is
authorized.
Meantime, Karl H. Smith, presi-
dent of the Greater Detroit Property
Owners and Taxpayers Association,
charged that the "CIO is/trying to
make a dog-and-cat fight out of the
rent control issue."
School Band Clinic

Here Tomorrow
One hundred and fifty young peo-
ple from all parts of Michigan as
xxal Ae frn nthPra, tt+ will nar-

falo, on the eastern end of the short
cut through Ontario, will be opened.
The Canadian authorities have re-
peatedly declined to permit Ameri-
can firms to ship over this route, and
have been reluctant to give an ex-
planation.
May Have Had Information
It is now assumed here that C. D.
Howe, Canadian minister of defense,
had information relative to German
funds behind truckingfirms operat-
ing in the United States. The fact
that Michigan and other manufac-
turers, of the Midwesthave been re-
quired to ship over the longer route,
around Lake Erie, has been a sore
spot with them.
\The investigation wasadescribed as
being "most thorough" and the fact
that it had been concluded is indi-
cated by the fact that this story has
been cleared by the Office of Cen-
sorship and by military, intelligence.
Concerned Over Ownership
Both the Army and Navy have been
concerned over German ownership
of trucking firms hauling vital war
materials. Concern had been ex-
pressed by theCanadians because of
the possibility of blasting tunnels and
bridges at Detroit and Port Huron,
linking the United States and Can-
ada.
These trucks have been pulling up
to dock yards on both coasts a~d, it
is pointedaout, any one of them could
carry sufficient high explosives to
destroy an entire shipping center.
In one instance, the military in-
telligence found that a German-
American owning two small trucks
went to Germany in 1936, and within
a few weeks after his return pur-
chased 16 large tractor-trailer trucks.
He was granted a license for inter-
state transportation and received or-
ders for transport of, war machinery.
Turn To Page 4, Col. 3
U.S. To Take
Wayne Land
For Housing
DETROIT, July 10.--(P)-Declara-
tion that the government was taking
over 157 acres of land in Romulus
Township, Wayne County, as site for
a Federal Public Housing Authority
project to provide dwellings for Wil-
low Run Bomber Plant workers was
filed Thursday in Federal, Court by
U. S. Disrict Attorney John C. Lehr.
At the same, time, Lehr deposited
a check for, $60,106 with Federal
Judge Ernest A. O'Brien to bind the
declaration.
Structures now on the property
must be removed by July 22, Judge
O'Brien said, if owners intend to
salvage them.
The project is one of seve al
planned in western Wayne County
by the FPHA. Col. Charles F. Starr,
Detroit representative of the FPHA,
explained, however, that it is not
part of the proposed "bomber city"
project being fought by Henry Ford,
Washtenaw County officials and
farmers residing in the area.
No construction will be started,
Col. Starr said, until the FPHA re-
ceives a report in a few days from
a War Production Board fact-finding
committee which has made a survey
of housing needs.

KALUGA
-OE
______ VORONEZH
STARY
-------BELGOROD -.OSKOL PVRI
ROSSOSH
KPOVOR IWO
----- KUPYANSK Do
____UM STALINGRAD
TAGAN ROTOV
KERC
SEVASTOPOL ::....2...
Scene of German advances: (1) Voronezh, where Russians are still
holding against German pincers. (2) Rossosh, important rail cen-
ter connecting central and southern Russian armies, and just cap-
ture# by the Germans.

Nazi Drive Peril
EntireGaucasu
Timoshenko Counterattacks Take T
Loss Of Rossosh 'Cuts Supply Line

s

:ill;

By The Associated Press
MOSCOW, July 11 (Saturday),.-German troops have driven into Ros-
sosh, 159 miles east of the industrial city of Kharkov, and cut the main
railway linking the central and southern Red armies.
A communique early today announced the Russia'n withdrawal from
.Rossosh before a German wedge thrust parallel to the steel arm now pluck-
ing at Voronezh, 100 miles to the north.
Rossosh itself is 20 miles short of the Don River, which already had
been crossed 'by the Germans striking at Voronezh, but it also is a point
on "the Moscow-Rostov railway.
The Russians still were fighting fiercely "west of Voronezh," the com-
munique said, but by evacuating Rossosh the Red Army acknowledged that

It

Senate Appropriations Committee
Asks 120 Million Fund For OPA

By The Associated Press
WASHINGTON, July 10. - The
Senate Appropriations Committee
recommended a $120,000,000 operat-
ing fund for the Office of Price Ad-
ministration today, but in raising the
House-approved total $45,000,000
wrote in sharp restrictions on the use
of the money.
First of all, it directed that none
of the money be used for subsidies.
(Price Administrator Leon Hender-
son has urged that provision be made
for subsidies to producers who, be-
Allied Bombers
Smash apanese
Strike At Chinese Capital
To Destroy Ten Planes
CHUNGKING, July 11 (Saturday).
-Allied bombers have delivered a
second smashing blow to Nanchang,
capital of Kiangsi province, sinking
one transport in the river and de-
stroying ten Japanese planes on the
ground, Chinese dispatches reported
today.
Allied planes heavily bombed this,
Japanese base last week. During
that raid two, or possibly three, Jap-
anese hangars were struck by direct
hits and three Japanese planes were
hit on one runway.
All the Allied planes returned safe-
ly from the second attack on Nan-
chang, the dispatches said. The term
Allied planes is generally taken to
mean United States machines be-
longing to the regular air force in
China.

cause of higher costs, cannot operate
under present price ceilings.)
It also stipulated that:
None of the appropriation could be
used to enforce any price ceiling on
commodities manufactured in whole
or in part from agricultural products,
until the Secretary of Agriculture
had deterihined that the price so
established would reflect to the pro-
ducer of the raw material a return
not less than any of the following:
110 per cent of parity; the market
price last Oct. 1; the market price
last Dec. 15, or the average price
from 1919 to 1929.
None of the OPA fund could be
used to enforce a regional increase
in the price ceiling of any commod-
ity on the theory that the rise was
made necessary by increased trans?.
portation costs, unless in fact the
cost of transportation had risen.
Senator Russell (Dem.-Ga.) in-
sisted upon the latter amendment,
declaring Georgia was being unfairly
penalized by the 21/2 cent pert gal-
lon increase in the price of gas'oline
recently allowed by OPA in the ra-
tioned eastern states. Russell said
the cost of bringing gasoline to
Georgia had not increased because
it was carried in pipe lines. Senator
McKellar (Dem.-Tenn.) told report-
ers the amendment would apply also
to South Carolina and Florida.
Still another amendment requires
Senate confirmation of OPA em-
ployes receiving more than $4,500 a
year. Some legislators have com-
plained that Henderson has made ap-
pointments to regional OPA posts
without consulting them-in some
cases giving jobs to their political
foes.

the Nazis in their second year of war
stood halfway across European Rus-
sia to the Ural Mountains from the
old Polish demarcation line. More-
over, the Nazis were some 70 miles
east of a line drawn directly south
of Moscow, and had virtually cleared
the last Russian armed frces from
the fertile farm lands of the Ukraine.
The two long steel arms of the en-
emy were reaching out to envelop a
100-mile stretch of the central water-
way and its vital adjacent railway,
which links Moscow and the gentral
armies with the rich Caucasus and
the Red forces in the south.
Aim To Drive On Volga
The German strategy was clearly
aimed at wrapping the Red Army
forces west of the sluggish Don in a
great sac, and to 'drive on to the
Volga, isolating the entire Caucasus.
Marshal Semeon Timoshenko, re-
alizing the peril, was reported coun-
terattacking vigorously on the Ger-
man flanks. He was pictured as de-
termined to sell the rich earth and
its industrial establishments only at
the most exacting price in German
lives and materiel.
The situation admittedly was yri-
ous. Red Star, the official army
newspaper, called for a stand to the
death and said the conditions near
Voronezh were growing "more com-
plicated" and near Rossosh "very
difficult." Rossosh is but 235 miles
from industrial Stalingrad, a key to
the Caucasus.
Rossosh Is Battlefield
Rossosh, on a tributary 20 miles
from the big bend of the Don, is on
the Moscow-Voronezh-Rostov rail-
way, last remaining north-south
railway still held by the Russians.
The city and district now has be-
come a battlefield.
(The German High Command said
that "the retreating enemy" 'is being
pursued on a broad front in the
Ssouthand that local resistance was
broken. Russian attacks with tanks
northwest of Voronezh were said to
have collapsed with heavy casualties.)
College Reserve
Officer Draft
Educator's Plan
CHICAGO, July 10. -(RP)- Con-
scription of qualified students into a
"college enlisted reserve" upon which
the armed forces might draw for offi-
cer material as need arose was pro-
posed today by Earl J. McGrath, dean
of administration at University of
Buffalo.
Dean McGrath told the annual in-
stitute of administrative officers of
higher institutions at the Uniiversity
of Chicago, that officer recruiting
programs were failing, and added:
"If officers are to be available, and
if the training provided by institu-'
tions of higher education is consid-
ered desirable by military authorities,
it is apparent that some substitute
plan or plans must be found-for en-
listing or conscripting college men
for the fighting forces of the nation."
Qualified students, he said, should
be selected for a pool to be admin-
istered by the war manpower com-
mission, and from which quotas could
be asigned at need to each of the
fighting services, or to essential civ-
ilian work.
- BULLE TIN -
MOSCOW, July 10.-(P)-Soviet
bombing squadrons entered the

British Sub Commander
Tells How His Raider
Sank Heavy Cruiser
By LARRY ALLEN
Associated Press Correspondent
ALEXANDRIA, Egypt, June 29.
(Delayed).-United States bombers
struck so savagely at the Italian
battle fleet two weeks ago that Mus-
solini's armada became "a fantastic
circus of widely careening ships" try-
ing to escape, a .British submarine
commander who witnessed the attack
said today.
Lieut. Stephen L. Maydon told the
story upon bringing his undersea -
raider to its base after sinking a
heavy cruiser and torpedoing a bat-
tleship of the 35,000-ton Littoria
class, seriously damaging it.
Italians Cautious
The cautious Italian fleet-or what
the British have left of it--made one
of its rare excursions against the
convoy bound for Malta June 15.
Maydon said he sighted the Italian
battle fleet at dawn and was closing
in when the huge, four-motored
American bombers and the RAF
loosed their first explosives.
"One of the greatest scenes of con-
fusion followed the first bombing at-
tack," the 28-year-old skipper said.
"My submarine Was in the center of
a fantastic circus of wildly careening
capital, ships, cruisers and destroyers,
none of which kept on course long
enough to allow us to fire torpedoes.
The urge to surface and use our guns
was terrific.
Bomb Flashes
"Bomb flashes seemed to punctu-
atesthe movements of the fleet. Red
and yellow tracers and black bursts
of heavier anti-aircraft fire from the
Italian battle fleet streaked and
blotched the sky in all directions.
"At one period there was not a
quadrant of the compass that was not
occupied by ships weaving continu-
ally to and fro. I gaped through the
periscope in utter amazement at the
fleet dashing around in mad circles."
Highlghts
On Campus...
Graduate Mixer Today
A cabaret setting will furnish the
theme of the Graduate Student Mix-
er, to be held from 9 to 12 p.m. to-
day in the Ballroom and Terrace of
the Rackham Building.
Open to all graduate students in
the University, the Mixer is planned
to meet the wishes of all graduate
students. Special features available
are the ballroom for dancing, special
game rooms, cabaret tables and the
broad reaches of the Rackham Ter-
race. Admissions will be sold both
singly and to couples.
The Mixer is the first in a series of
summer graduate dances sponsored
by the Graduate Student Council. In


U.S. Bombers
Scatter Italian
Battle Armada

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U. S. Factories Producing At Rate
Of 45 Billion This Year, Says Nelson

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By The Associated Press
DETROIT, July 10.-The factories
of, the United States will turn out
war goods of one kind or another to
a value of 45 billion dollars in the
current year, War Production Board
Chairman Donald M. Nelson told
members of the Automotive Council
for War Production here tonight.
Speaking at the annual banquet
of the council, organized by the auto-
moniv indimtrv +o exneditewar nro-

year will be a splendid achievement]
and raising the level to 75 billions
next year will be nothing less than
magnificent."
Nelson's address to the, automobile
manufacturers featured the one-day
session of the industry's War Council
called to appraise the achievements
of the last year and to appraise what
lies ahead of the industry in the
war production effort.
Auto Inntre nts raio Role

lars a year. This is three times as
large as the industry's estimated 1941
sales of four billions; it will repre-
sent approximately one-sixth of tile
entire war production effort of the
whole United States.
"These are amazing figures. I think
everyone connected with the automo-
tive industry is entitled to feel a great
deal of honest pride in the fact that
such great reliance can be placed
upon this industry in this time of