Weather Warmer. we AL, A 4w 04W .& 4tlt Ey r t IWVFU 4~tv 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-