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Editorial
National Unity Necessary
For American Victory , l
VOL. LI. No. 20-S ANN ARBOR, MIChIGAN, SUNDAY, JULY 12, 1942
2:15 A.M. FINAL
Tass Says Laval
'Bargaining Away'.
Al French Ports
May Mean Fleet Transfer;
Nazis To Take Control
Of Unoccupied Sections
Vichy To Get Paris
As Capital In Deal
By The Associated Press
MOSCOW, July 11.-The Moscow
radio tonight broadcast a dispatch
by the official Soviet news agency
Tass from Bern, Switzerland, report-
ing "competent French sources" had
declared that the Vichy government
had agreed to give Germany control
of all important war installations,
railways and ports in Unoccupied
France.
The dispatch said the Germans in
return had agreed to a request of
Chief-of-Government Pierre Laval
to transfer French government of-
fices from Vichy to Paris.
These sources were represented as
saying. the removal of the demarca-
tion line between the occupied and
unoccupied zones was also a part of
the bargain between the Germans
and Chief - of - Government Pierre
Laval.
Nazis At Toulon
Laval was said to have granted
the Germans permission to establish
a naval commission at Toulon,
French Mediterranean base, with ex-
tensive powers, including the right to
maintain 4,000 soldiers in a special
zone near Toulon.
Laval also was understood to have
promised to militarize French youth
associations, Bern Radio said, with
special detachments organized as
"mobile defense" units along the
coast, apparently to help meet any
attempted invasion.
The strength of these detachments,
it was said, was expected to reach
130,000, with the Germans training
and arming them.
Favored Collaboration
Laval, since he became Chief-of-
Government, has spoken openly in
favor of collaboration with the Ger-
mans. If the Bern radio reports are
borne out it appears that he has
given the Germans most of what they.
had been demanding from the aged
Marshal Petain in vain for more than
a year.
There was no mention in the Bern
report of the fate of the French
Navy, but virtually all the French
naval units in home waters were sta-
tioned at Toulon, which was said to
have been turned over to the Ger-
mans.
It also was not clear whether the
surrender of ports would include
those in the French colonies as well
as on the continent but it seemed
likely that this would be the case.
If so, Germany would be free to
use bases in French North African
colonies, such as Tunisia. This would
greatly simplify Field Marshal Erwin
Rommel's problem of getting supplies
to his hard-pressed forces in Egypt,
for he could ship from Marseille,
Toulon and other French ports di-
rectly across the narrow western
Mediterranean to French North Af-
rica, avoiding the dangerous trip past
Malta.
FBI Snares
158 Involved
In Nazi Plot
By The Associated Press
NEW YORK, July 11.-The Fed-
eral Bureau of Investigation today
announced its biggest single haul of
German aliens with the arrest of 158
members of a group which financed
the return to Germany of one of
eight submarine-borne saboteurs re-
cently landed on American shores.
The latest to be landed in the FBI
net were 130 men and 28 women-
all identified as members of the Ger-
man-American Vocational League-
a Nazi-dominated group which paid
for the passage to Germany in 1939
of Heinrich H. Heinck, a 35-year-
old native of Hamburg now on trial
before a Military Commission in
Washington.
Heinck was one of the eight high-
ly-trained Nazi saboteurs landed on.
Long Island and Florida beaches by
a German submarine late in June
and subsequently picked up by the
FBI.
Already in custody were 113 Ger-
man-American Bundists swept into
jail by a nationwide drive last week,
and Herbert Karl Friedrich Bahr,
accused Nazi spy apprehended trav-
elling as a refugee aboard the Swe-
dish diplomatic liner Drottningholm
earlier this week.
P. E. Foxworth, assistant FBI di-
rector in charge of the New York of-
fice, said the German-American Vo-
cational League members were part
of an organization which had 2,000
members throughout the country,
operating through 20 locals. The
league had two publications, one in
German and the other in English,
both described as anti-American and
"intensely pro-Nazi."
The 158 were arrested on Presi-
dential warrants in spot raids yes-
terday over the New York Metro-
politan Area.
Federal Agent
Grilled In Trial
WASHINGTON, July 11. --(P)-
An exhaustive cross-examination to
which a Federal Agent was subjected
today indicated that the prosecution
apparently had reached the climax
of its case against the eight Nazi
saboteurs on trial for their lives be-
fore a military court.
Despite the brevity of his direct
testimony, the story he told was the
most damaging that had yet been
presented if the lengths to which
the defense went to shake it are a
criterion.
Tickets for the School of Music
dinner and dance to be held at
6 p.m. Thursday in the League
Ballroom will go on sale tomor-
row morning in the Music School.
Axis'Pacifiers'
Are Hard Hit
By Yugoslavs
Mihailovic Guerillas Smash
Across Italian Frontier;
Army 250,000 Strong
By The Associated Press
ISTANBUL, Turkey, July 11.-
Fearless Yugoslav patriots, a quarter
of a million strong, have opened
widespread offensive operations of
their own with sharp, deadly assaults
upon their would-be Axis "pacifiers"
in the South Serbian mountains and
across the Croat frontier into Italy,
official Yugoslav informants report
today.
Under the command of General
Draja Mihailovic, these hardy men
of the mountains were slugging it
out with German, Italian, Bulgarian
and Hungarian forces numbering up-
ward of 100,000 in two major strug-
gles which began late in June.
Took Heavy Toll
One force of 10,000 Yugoslavs is
taking a heavy toll of plane-sup-
ported Axis forces five times its size
in Croatia, informants said.
In another major clash Mihailo-
vic's men were reported to have
smashed attacks upon their moun-
tain stronghold by Axis forces made
up of one division of Hitler's picked
Blackshirt Elite (SS) Corps, Ger-
man armored units, the 16th Bulgar-
ian division and two or three Italian
divisions. The Yugoslavs said the
Axis has yet tohtakeaa single impor-
tant point in this campaign.
Attacked Croats
Latest accounts from Yugoslavia
said the battle in Croatia began when
the patriots attacked Croats discov-
ered massing near Banjaluka, 90
miles southeast of Zagreb.-
The Yugoslavs were declared to
have surrounded the Croats there
and also at Sanksimost, 28 miles
west of Banjaluka. Fighting is in
progress at both these communica-
tions centers according to this in-
formation.
U.S. Troops
In Strategic
New.Guinea
By The Associated Press
WASHINGTON, July 11. - The
presence of American troops in New
Guinea, strategic jumping-off place
for attacks on the Japanese invaders
of the Southwest Pacific, was dis-
closed today by the War Depart-
ment.
Officially - approved photographs
pictured Negro troops at Port Mores-
by, along with Australian and Ameri-
can fliers.
Many Negro troops, the War De-
partment said, are "spotted in the
Pacific area building bases and air-
fields." The disclosure of the move-
ment of American ground forces
northward from Australia was thus
made in backhanded fashion.
Until today's disclosure, there had
been no official word of American
troops in the southwest Pacific ex-
cept in Australia and on the Free
French island of New Caledonia
some 800 miles to the East, where an
expedition under Maj.-Gen. Alexan-
der M. Patch landed prior to April
25
At
El Alamern Figh
German Blitz Sp
Voronezh In
' f}
British Patrol Breaks Up
Air Transport Convoy;
Axis Prisoners Taken
Land Skirmishes
See Allied Gains
By EDWARD KENNEDY
Associated Press correspondent
CAIRO, July 1.-A German effort
to rush reinforcements by air to the3
hard-pressed Axis desert armies was
broken up today when a patrol flight
of British Beaufighters pounced up-
on a group of big Junkers-52 troop
transport planes and damaged or
shot down at least 12 into the sea.
In the land fighting British troops,
have taken 1,500 Axis prisoners, de-
stroyed 18 enemy tanks and ad-
vanced five miles along the northern
coastal railroad west of El Alamein,
front line dispatches reported.
Escorted By Fighters
The troop-carrying planes from
bases across the Mediterranean were1
under escort of twin-engine Axis
fighter planes, but the British said
there were no RAF losses in the en-
gagement.
The British attack ended only when
the Beaufighters ran out of ammuni-
tion and low on gasoline, indicating
that some of the aerial convoy might
have escaped and reached the Axis
bases in North Africa.
Squadron Leader C. V. Ogden gave
this brief account:
"We were on patrol when we
spotted the Junkers. They were only
50 feet over the sea when we engaged
them and in the series of fights which
followed the air was thick with shells
and machine-gun bullets."
The German troops who perished
in the British attack probably were
specialists being rushed to reinforce
Marshal Erwin Wlommel's front line,
it was believed here.
Land fighting raged throughout
today in the region close to the coast
and some fighting was reported in
the southern sector, where fierce ar-
tillery duels continued.
Italians Captured
Most of those captured were Ital-
ian troops and the toll was for the
first day of the resumed desert fight
which began in the waning light of
a half moon at 3:30 a.m. Friday.
Aerial fighting hit a new peak of
intensity over the desert and the Al-
lies were said to hold the initiative.
In the southern sector, inland from
the coast, the British yielded slightly
before Axis pressure. Fighting con-
tinued all day with Allied artillery'
laying a barrage down on Axis con-
centrations to the west.
Allied Planes
Hit Jap Bases
Chinese Troops Continue
To Push Back Invaders
CHUNKING, July 11.-(4")-Lln-
chwan, base for Japan's ambitious
30000-man drive in Kiangsi Prov-
nce, was bombed by Allied planes
yesterday "with satisfactory results,"
Lieut.-Gen Joseph W. Stilwell's
Headquarters announced tonight,
while the resurgent Chinese ground
forces reported the Japanese were
being driven back steadily toward
Linchwan and Nanchang.
While the Stilwell communique
identified the bombers only as
"Allied," Brig.-Gen. Claire L. Chen-
nault, Chief of Air Operations against
the Japanese in China, declared
pointedly:
"There has been a defiinte change
in policy since July 1," the date reg-
ular United States Army Air Forces
began operations in China.
"Hankow, Canton and other cities
in occupied China which were never
bombed before have been bombed
now," Chennault said.
FDR Defines Alien
Employment Policy
WASHINGTON, July 11.-A')-
President Roosevelt today redefined
the government's policy regarding
Stable Wage
Scale Asked
ByIndustry
By The Associated Press
LOS ANGELES, July 11.-War-
plane makers asked the Office of
Price Administration today to sug-
gest a stabilized wage scale after the
government rejected labor's plea for
an estimated $125,000,000 annual
increase.
Labor representative sat the gov-
ernment-sponsored management-la-
bor conference to fix wages promptly
assailed the manufacturers' sugges-
tion and threw the parley into a
deadlock at the end of its first six
days.
Paul R. Porter, wage stabilization
chief of the War Production Board,
told the conferees that pay boosts
jointly requested earlier in the week
by both the CIO and AFL "would not
only contribute to an upward spiral
in the cost of living, but would un-
stabilize employe relations in other
war and essential industries."
Foster W. Harper, deputy chair-
man of the war manpower commis-
sion, demanded that a great turn-
over of labor in war industries be
stopped. He attributed the turnover
both to labor migration and to en-
listments in military services.
The conference was called to sta-
bilize the industry's wages commens-
urate with increased living costs in
the last year and with comparable
pay in other war industries, but with
a warning note that too high a boost
would lead to inflation.
'Thunder Rock'
Will Be Second
Repertory Play
Produced in New York and in
London with great success, Robert
Ardrey's unusual drama, "Thunder
Rock," will open at 8:30 p.m.
Wednesday at the Mendelssohn The-
atre as second offering on the 14th
annual Repertory bill.
Action of "Thunder Rock" takes
place against an original setting, a
lonely lighthouse in Lake Michigan.
Frederick Nelson is cast in the lead
role as the journalist Charleston, who
becomes lighthouse keeper in this
desolate spot in an effort to cut him-
self off from a crumbling world. In
essence, the story concerns the
brooding Charleston, who tries to re-
fresh himself by thinking of a group
of immigrants who were shipwrecked
on his lonely island in 1849. By re-
viving these ghosts from the past
and looking into their minds, Ardrey
feels sufficiently encouraged to be-
lieve that civilization will go on for
some time to come. Although ghosts
are difficult to accept as prophets
in a modern world, the author has
created some very sensible and en-
couraging ones in these ominous
times.
Other students cast In Ardery's
philosophic study are Christopher
Lane as Inspector Planning; Rich-
ard Strain and Merle Webb, both
seen in "The Bluebird" and "The
Rivals," as Streeter and Chang, re-
spectively; Donald Hargis, instructor
of radio at Morris Hall, 'as Captain
Joshua; Yvonne Wotherspoon, of
"Sleeping Beauty" fame, as Mela-
nie; Robert Reifsneider, as Briggs;
(Continued on Page 2)
earhead Stalled
Savage Struggle;
ig Flares Anew
Slashing Nazi Thrusts Are Hurled Back
By Crushing Russian Tank Offensive;
Bridgehead East Of Don Enlarged
By EDDY GILMORE
Associated Press correspondent
MOSCOW, July 12. (Sunday).-The German spearhead east of the
River Don was pushed forward a few miles to the outskirts of Voronezh, on
the Moscow-Rostov railway, the Soviet midnight communique said today,
but the Russians indicated two other German thrusts on the 220-mile front
made little or no headway.
The communique did not mention a withdrawal in any sector, but its
mention of fierce fighting "on the outskirts of Voronezh" indicated the Ger-
mans had enlarged the bridgehead they established east of the Don some
days ago.
Whatever gain the Germans made, however, must have been small for
<->Voronezh is only 10 miles from the
river.
Laroest W ar An indication of the intensity of
the fighting here was seen in the
Tax Z11O~ d communique report that an entire
Tax Bill OK'd "" $
enemy regiment had, been smashed
in one sector northwest of Voronezh
B Committee and that one Russian tank crew
alone had killed 200 Germans.
' The communique made no men-
Record Breaking Measure tion of the fighting around Kante-
SO emirovka, 145 miles south of Voronezh,
and Lisichansk, 55 miles still farther
Goal After Long Fight south, beyond saying fierce fighting
continued in these regions.
By The Associated Press "On other sectors of the front no
WASHINGTON, July 11.-A rec- essential changes took , place," the
ord-breaking $6,250,000,000 wartime communique said.
tax bill, falling heavily on both cor-
porations and individuals, was ap- BERLIN (From German Broad-
proved finally by the House Ways casts), July 11-(M--The Germans
andasMeansJCommittee) toray.
anProdMeansCommittee toa18weeks of claimed officially today they "have
work, the 324-page measure proposes destructively beaten" the Russians
to increase corporation taxes by on the Don, capturing 88,689 pris-
$2,485,400,000, and individual income oners and huge amounts of materi-
taxes by $2,958,000000. el. The central waterway was
Huge as it is, the bill 3s short of reached along a 220 mile front and
the Treasury's goal. Secretary Mor-
genthau asked the committee to raise several bridgeheads were estab-
about $8,700,000,000 in additional lished, a High Command communi-
revenue to swell to $17,000,000,000
the Federal Government's prospec-
tive receipts this fiscal year.
Goes Only Part Way
But the committee chose to go only
part way in that program, and de-
feated attempts to write in a five
per cent retail sales tax which ex-
perts estimated would make up about
$2,500,000,000.
Chairman Doughton (Dem.-N.C.)
said that the $6,250,000,000 yield from
the measure-computed by Treasury
experts-probably was too low. He
made the personal prediction that
the revenue would be closer to $7,000,-
000,000.
Treasury Wrong Before
"The Treasury was too low last
year by about $1,000,000,000 (in esti-
mating the revnue from the 1941
bill)," he commented. "My opinion
is that if business continues as it
now appears it will, this bill will
raise about $7,000,000,000."
Rep. Cooper (Dem.-Tenn.), speak-
ing for Doughton, said the commit-
tee had adopted a motion as its last
action making all of its decisions
final.
Ehrmann To Give Third
Review Of War Tuesday
The third "Weekly Review of the
War" in the University summer lec-
ture series will be delivered by Prof.
Howard M. Ehrmann of the history
department at 4:15 p.m. Tuesday in
the Rackham Building.
Prof. Ehrmann discusses the most
important developments of the war,
interpreting the most recent moves
and indicating trends.
The lectures are followed by ques-
tions addressed to Prof. Ehrmann
and a period of discussion.
que said.
--- -------Clip Here And Mail To A U.-M. Man In The Armed Forces - -
In naval attacks on German supply
lines, the Soviets reported their ships
-;ank five German transports, with a
total displacement of 46,000 tons, in
the Baltic.
The Russians also claimed Soviet
fliers on various sectors of the front
had destroyed or damaged 89 tanks
and 400 trucks with troops with
supplies.
Caucasus Isolation Aim
The vast Nazi offensive clearly
was aimed at isolating the rich, oil-
>earing Caucasus by cutting across
northern approaches to the Volga.
Sealing off the Caucasus also would
;ut the vital Russian supply route
from the Persian Gulf and would
take off a rich prize of war for at-
tempted conquest during the winter.
But at Lisichansk, the Germans still
were 800 miles from Baku and its oil
fields and much hard fighting lay
ahead.
The Russians admitted the fall of
Valuiki, an important railway junc-
tion 60 miles west of Rossosh, which
was evacuated yesterday. It al-
ready was outflanked and probably
not defended.
The Soviets said previously that
Marshal Fedor Von Bock had laun-
ched a fresh attack on Lisichansk,
200 miles south of Voronezh in the
area where the Don makes a wide
semi-circle to the east to within 45
miles of Stalingrad, the great indus-
trial city of Volga.
Cut Strategic Railway
In capturing Rossosh, the Ger-
mans already had cut the important
Moscow to Rostov railway, the last
remaining vertical line connecting
the armies of the center and the
north with those of the south.
The advance also gravely threat-
ened to outflank Russian positions
farther south guarding Rostov, a
gateway to the Caucasus. Pressure
was being increased in that area, the
Russians said.
Fighting was stubborn in many
quarters The Red Army, capitalizing
on the deep extension of the Ger-
mans, was hammering vigorously at
the German flanks and imposing
mounting losses of men and material
on the invader.
Russians Outnumbered
The Russians at several points were
outnumbered.
The most violent fighting-perhaps
the bloodiest the world has ever
known-earlier had been reported in
SERVICE
EDITION
hr~ Af'riioan Da*1j
VOL. I. No. 3
ANN ARBOR, MICHIGAN
JULY 12, 19421
"No one is loafing in
Ann Arbor's war plants
and you can be sure that
everyone is doing every-
thing he can, and doing it
well to get maximum pro-
duction," Lieut.-Gen. Wil-
liam S. Knudsen said here
Thursday . . . The ex-GM
head came on a special in-
spection visit . . . Later
that day local factory
heads had lunch with him
in the Michigan Union.
Student war groups, in the
meanwhile, saw the for-
mation of the War Heads
Committee this week un-
der the aegis of the Stu-
dent Senate with repre-
sentatives from the dorms,
rooming houses and the
Greek letterites . . . The
new committee will act as
a coordinating body for all
That's just 17 Books A Day Apiece...
All was orderly at the ROTC headquarters this week
until expressmen dumped four large USO crates of more
than 250 Victory books on the company steps, right in
the shadow, you'll remember, of the University's million-
volume library.
The nine officers and six enlisted men who are sta-
tioned at the training post are appreciative, but doubt
that they'll be able to read all 250 books before the next
shipment in the rotating USO library arrives in two
weeks.
Headquarters officials, who think that some sort of a
mistake must have been made, don't expect to find time
to even classify the books unless the student cadets will
volunteer to do it. Besides, there aren't enough shelves.
Major Bernard Vollrath is afraid that by the time
they get these books classified it'll be timeto crate them
up again and send them on to another army post-pref-
erably one with more than 15 men.
Students in fine arts,
music, several combined
courses and honors pro-
gram in liberal arts have
fallen from their ivory
tower total of 7.5 percent
to 2.4 percent.
U. of M. Sports .. .
Coach Ray Fisher, who
has put together a sum-
mer baseball nine for
Michigan,usually confines
his summer activities to
coaching a pro butfit at
Burlington, Vt. . . . In its
first week of play the
Michigan team performed
in such professional fash-
ion that Ray probably did-
n't miss the fast company
of the Vermont League.
His Wolverines won three
games against City League
comnetition. all of them
Fresh Air Camp To Hold Annual
Summer Tag Day Drive Friday
Reeves, who resigned from
the faculty last February,
died following a two-year
illness.
Rart. a .o-
tinue throughout the sum-
mer, appearing later on in
productions which include
"Letters to Lucerne" and
"H.M.S. Pinafore" . . .
Philosonhv maors aren't
Boys from the University Fresh
Air Camp will man posts throughout
Ann Arbor Friday for the annual
summer Tag Day campaign to raise
funds for the camp.
Proceeds from the drives help to
provide four-week vacations at the
camp on the shores of Patterson
Lake in Livingston County for about
300 underprivileged boys from Ann
same time make a careful. study of
the problems of boys entering their
teens. Special counselors keep in
touch with the boys throughout the
year.
Since its foundation in 1921 the
camp has grown from a small clus-
ter of tents to a modern, specious
establishment offering many modern
recreational facilities and opportuni-