r 60 Miles zis From 9 POUNDDD 16S1 Na ;ie 1 Mlf (?Stt ivjLamuup nip ply of Oil KINCTY-SECOND YEAR Salem. Oregon Saturday Morning, August 8. 1842 Price Sc. No. 105 OWI Reveals War Output says WASHINGTON, Aug. l.-yP-Tht office of war information, warning that "we could lose this war," declared Friday night that pro duction of fighting planes, tanks, moet types of artillery, and naval vessels fell behind schedule in June and that increasing sacrifices must be made by civilians if the war program is to be successful. Presenting a gloomy and critical review of the military and pro duction situation at the present tome, OWI asserted that individual Americans had made great sacrifices but "as a nation we are not yet more than ankle deep in the war." . Referring by Indirection to demands for the opening of a see end front In Europe, the OWI declared that "popular pressure for . action on this front or that of the many possible fronts can serve no useful purpose." i American, military forces are being disposed "as and where the military commanders believe they get the maximum of results," and when we can not be strongand.hit hard everywhere, we must be . able to hit hard where it counts most even at the price of leaving oth er areas inactive," OWI said. "We always knew that, for us, 1842 would be largely a year of preparation, and that our allies would have to do most of the fighting . during most of the year. Before we can do much of the fighting we must move great numbers of men and vast masses of material over enormous distances. This Job, so far, has been done with entire success; but we axe foinf to have to keep on doing it, in Increasing volume, until '. the war is won." The review declared that our allies thus far have carried most of the load "and we have not given them as much help as we had led them to expect." This was due partly to enemy victories, the review ndded, but "by and large, we have not been producing war material to ; the w?Ti""" of available capacity and have not been getting that Kaiser Gets For Aerial Navy Balks Nelson RAF Bombs - -i Ruhr Valley Dubburg Raid Goal; Germans Loose . . . .Incendiaries v LONDON, Aug. 7 VPy- The RAF sent a strong force of bomb ers through thick weather to the Ruhr valley for the third succes sive night Thursday -night, blast ing the big' industrial center and inland river port of Duisburg and other points. The air ministry acknowledged that six planes were missing af ter those attacks and other raids tat nazl . airdromes in the low countries, but did not disclose the number of participating planes. However, a. British source said that in the days before the 1000 bomber raids Thursday night's force would have . been regarded ' as "a whopper. The German high command ad mitted there had been material damage to buildings and said the raids had caused some casualties in residential quarters in several . . tmm. It claimed seven British .bombers were shot down, The luftwafi e sent only a small force against Britain in attacks on Scotland and East Anglia on Thursday night, and Friday af ternoon a few raiders dropped bombs in three places in the 'raithat at England, causing a small number of casualties. Thursday night's nazi raiders dropped high explosives and 'in cendiaries, including a new type i of phosphorus fire bomb for ' which the public had been fcre- z?ti. "ssJ-ZOtiZl try bulletin, Tnis gave expucn instructions for dealing with the incendiaries and as a result fires they started were extinguished with a minimum of damage. East Asks West Type of Ration '. NEW YORK, Aug. 7 HV The executive committee of the east era states gasoline dealers confer ence Friday condemned the cou tinnine svstem being used I ' - J - , In the east and urgea a return w the dealer-rationing system "as It is now being successfully ap plied in Oregon and Washington.' The committee, with members iwirntinff retailers , from 11 eastern states, held that the al lotaent to dealers to bo dis tributed at their discretion need not be reduced by more than 30 per cent More Essential Job: Listed Twelve industrial employ ment classifications ruled by selective service officials to be essential" to the war effort and Mintiiril as exemptinr : a family, man from military serv ice if he Is considered not re placeable In SHch Job, are listed In today's Statesman, on nt five, snsplementing a list of 22 snch occupational fields frahlished in Friday's paper. We owld Order Fleet; 500 Mars Cargo Planes Okehed; Plan for Bigger WASHINGTON, Aug. !.-&)- Henry J. Kaiser, west coast build er of dams and ships, got the .go- ahead -Friday - from Production Chief Donald M. Nelson to build fleet of 500 70-ton "Mars" fly- ing boats, but there were plain indications that the navy had balked at he plan. A WPB official, who declined to be quoted by name, acknowled ged that the navy had "been re acting all afternoon" to Nelson's announcement in the morning that Kaiser would get a letter of intent to build 100 cargo planes of the Mars type in shipyards, to. be fol lowed by 400 more if he makes good on the first batch. The official said the navy was skeptical that the program could be carried out satisfactorily by Kaiser since he is a shipbuilder and has not been building planes. A source in the middle of the aWaatten said Nelson was deter mined to sign the commitment himself if the navy would not Under his wartime powers, the WPB chairman had author ity to direct that contracts be placed by other government ag encies, Jgelson told reporters one im portant string was attached to his commitment to the shipbuilder, Kaiser must demonstrate, before he starts construction, that his (Turn to Page 2, CoL 8) Dutch Queen Honors b lve US Officers WASHINGTON, Aug. 7- Wilhelmina of the House of Change-Nassau, queen of The Neth erlands, Friday toasted in orange juice five American naval offi cers upon whom she conferred high Dutch decorations for diS' tinguished service in the Pacific campaign against the Japanese. The decoration ceremony was l - - ner official three-day visit in the notirai'a ranital wn civH nn her way by President Roosevelt, Secretary of State Hull and Mrs. Hull, wno oaae xne oi-year-oia monarch "God-speed." One of the naval men honored was Adm. Thomas C. Hart, for mer commander-in -cruel 01 xne United NaUons fleet in the south- Rear Adm. William A. Glassford, . . American chief of staff of the combined fleet Com. T. H. Bin' ford, Com. H. E. Eccles and Lieut I Com. H P. Smith. The ceremony took, place in a private- residence that of The Netherlands ambassador, A. Lou Hon and Mrs. Londnn. Hor MaU esty had wanted to stand on Dutch sciL which diplomatic protocol ac cords .her at the embassy. But she also wanted to pay. a little vis it to the home of her representa tive in the United States, so it was decided to hold the ceremony 9 material to th F O fronts in the time and in the volume that will be needed to w " "We are deep In what may be the decisive year of the war," the review continued. "But 1942 will be the decisive year only if our enemies do not succeed in inflicting crippling blows on out allies before the year is out." "Even if they fail in that they will still take a lot of licking. "But, if they should paralyze the striking power of Russia or wear down the endurance of China, or break the British power in the mid dle east, the war will be decided in some later year not now foreseen, and victory will be far more costly. Asserting that the military forces had done "pretty well but not well enough," OWI said "we held the central Pacific and reinforced Australia; but he (the enemy) still holds the Philippines, and "the Dutch islands and the rubber that we need." The situation at home likewise is a job done "pretty well but not well enough," OWI asserted. "Our production, measured by oar standards of a couple of ' years ago Is amaxing; measured against what we need to win. It Is not yet enough. In June we fell slightly below schedule In to tal military planes, In total combat planes, and in most of the In dividual types; we made more planes than any other country In 1 the world, but we did not make as many as we said we were going . to make. The same Is true of tanks, of most types of artillery and of naval vessels particularly the small eraft needed to fight sub marines." - In July, the review said, the curve of submarine sinkings through out the world started downward and, while it was hoped this trend would continue, "production of small vessels lor the anti-submarine campaign is still lagging and in June was less than half of schedule." "Even if shipbuilding continued to rise and sinking to de crease, we shall probably Je well Into 1934 before we again have as much merchant shipping as we had on December 7, 1941," the (Turn to Page 2, Col. 1) Three Vessels Sunk, Atlantic Captain Is Prisoner; Craft Attacked While Halted By The Associated Press Loss of a Uruguayan ship, a Norwegian freighter and a Pana manian merchant vessel, disclos ed Friday, increased the Associat ed Press tabulation of announced sinkings in the western Atlantic since Pearl Harbor to ,418. Thirteen crewmen of the Uru guayan 'craft revealed .-the ; tor pedoing of their vessel when they were landed at Hamilton, Ber muda, by a United States warship which had picked up their life boat Three other lifeboats which put out from the sinking vessel were not accounted for. The men said their captain was taken prisoner by the sub marine. This was ' the second such ' incident : reported in the last eight days, the crew of a medium-sixed American ship having disclosed July St that their skipper was seised by . a German submarine commander after the ship was sunk July t. A U-boat sank the Panamanian ship in the Gulf of Mexico June 6. One oiler was killed but 51 sur vivors were picked up by a res cue vessel within 15 minutes. Johannes Hammerman, an Es- tonian, seaman aboard the freight er, said two submarines lurked in the vicinity and he saw them ex change light signals. Two torpe does ripped into the vessel. Four seamen were lost when the Norwegian craft went down. Thirty nine survivors, adrift in three lifeboats, were picked up by a British warcraft soon after the vessel went down. They related that their ship, halted, because of engine trou ble, was attacked without warn ing June 27. Captain Alf Amundsen ordered the ' vessel abandoned but remained aboard with eight others waiting for a chance to open fire on the raid er as soon as it surfaced. An hour later another torpedo struck and set the craft ablaze. Two seamen were lost in the ex plosion. Captain Amundsen and the others and second officer died soon after being landed. Survivors said the submarine surfaced and that an officer, Ital ian in appearance, queried them regarding the ship's name and destination. I a - irk Allied JjOlllDerS Hit EtlfttTiV Rnfip' J GENERAL MACARTHUR'S HEADQUARTERS. Australia. Sat urday, Aug. 8-taVAllied bombers - 1 carrying out a heavy raid on the ) Japanese invasion base at RabauL New Britain, dropped -15 tons of 1 J 41 -i . drome there, ; it was announced i Saturday. - An allied command communique j i reported that allied planes shot down seven Japanese fighters in Friday's operations. It also declared that the run- - 1 waf of tho airdrom at Lae, New "e". w wmocu. Apple Men-Elect, BUFFALO, . NY," Aug. 1.(JP) Paul W. Scea, Wenatchee, Wash., I was elected president of the In ternational Apple association Fri day, succeeding G. Warren Lag, War' Work Clothes To Get Less Cloth, Metal WASHINGTON, Aug. 7 The war production board de creed styles for men's work clothes Friday fewer pockets. fewer buttons and buckles, and no unnecessary yardage. Unlike previous clothing or ders, this one contained a mini mum as weU as a maximum yardage regulation for each type of garment. The minimum yardage re striction was provided," ' the WPB expbtfnedV - ?to prevent skimping- which would- Inter fere with a worker's freedom of action and defeat the eon- tervi"JL r .?!!. 1' z?" VJ IUUUJ I. llvvvBMU J WI worker to buy a larger siae or. wear out In a snort time a tight-fitting garment." The WPB estimated the or der would result in an annual saving of 21,000,000 yards of cloth, enough to provide 7,000,- 000 additional garments; 125,- 00,000 yards of thread, throug-h the elimination of triple stitch ing; 150,000,000 buttons and 12,000,000 buekles; and 29 per cent of the normal shipping space involved In the shipping of work shirts, since the order prohibits the shipping of these in boxes. Morse Warns On Stoppages Says Outlaw Labor Moves Direct War Conflict WASHINGTON, Aug. 7-jP)-Al though American workers have made a creditable record, outlaw stoppages of work have been on the increase recently and "they must stop," Dean Wayne L. More, public member of the war labor board, declared Friday. "Although they have not reached any serious proportions, they nevertheless are shocking to the national morale and thorough ly in conflict with the country's war efforts," Dean Morse said. "Understandable as they may arc not uoucrsumuauie 10 u American people. -They are going to become even less understand able in the days to come as. our people face unflinchingly the realities of the war They must .stop. The most effective way to stop them is by the way of the voluntary action of the Individ ual worker himself. "He should " remember at all times, even when some justifiable letting Crosswhite out to play in grievance within his plant tries his non-benefit games, and Judge W. soul and patience to the point of g. Bramham, minor league base exasperation, that ne- must work ball commissioner, wired for an L, resort, along with his . I ' ' " w ""-'A-'- war production. Dean Morse's remarks were made as WLB ordered a wage in-1 crease of 24 cents an hour for 550 1 I Turn to Page 2. CoL 3) Our Senators Lest 11-4 Oregon Tops Bonds Quota PORTLAND. A u gl 7.-4-Ores;on exceeded Its July war savings bonds quota while the nation as a whole lagged. Bay Conway, acting state adminis trator, was advised front Wash ington Friday. Oregon purchased ' S9,823,00a worth of the securities during' the month, or 19.8 per cent more than the quota. July also won the state's biggest month in sales, Conway said. The quota for the nation was a billion dollars. Sales were S909,0MO. :ore Stock Needed For War Load New Transport Corps Head Says Demand Grows Steadily WASHINGTON, Aug. 7.-(P)-A Warning that without additional locomotives, cars and other equip ment the railroads might be un able to carry the mounting Am erican war load came Friday from the chief of the new army trans portation corps. Brig. Gen. Charles P. Gross said the carriers were approach ing "a rather serious and even critical condition," and that next year would bring even heavier demands than 1942. I "The railroads already have about used up their reserves or surplus equipment," he told re porters. "Rirht now because of ship sinkings they are obliged to use some 1200 locomotives to haul oil which were available last year for other traffic move ments. 'Since 1939, car loadings have increased 27 per cent, ton miles of freight 80 per cent and passenger travel 'has nearly doubled. This year will see 34 per cent more ton miles of freight moved than in 1529 and. 48 per cent,-more than (Turn to Page 2, CoL 2) JLacoma reels Clerk Strike Retail Walkout Shuts Four Stores, Maybe All This Morning TACOMA, Aug. 7-(P)-Almost every department ana variety store in this booming defense city of 135,000 population may be closed by Saturday morning be cause of a wage dispute between operators and the AFL ! retail clerks union, spokesmen for both sides of the controversy said Fri day night ' Four stores - were closed and picketed Friday, including Rhodes Brothers department store, one of the city's largest The union said groups of clerks walked out of other stores from time to time Fri' day and that all would be out by Saturday. The Tacoma Industrial Confer ence Board, Inc., representing the management of "most Tacoma stores, said no important stores would be opened Saturday unless pickets were removed Friday. The pickets who went on duty shortly before store opening time Friday, (Turn to Page 2. CoL 4) Railway Senators9 Hold on Prison Pitcher in The Salem Senators baseball rfub created a sensation in the .: . . 4V. vA;th "Luke" Crosswhite, state peniten tiary inmate and legendary "mir acle pitcher," but the management was not so certain Friday nignt that it had acquired a much needed extra moundsman to bol ster a draft and war Industry drained team. ':- ! " - Warden George, Alexander In dicated, he was dubious about emanation. I . control were not available - Fri day for comment on a report that thev might call a meeting to in quire about Warden Alexander's plans for Crosswhite. ; : Telegraphic requests for pic hires of the penitentiary ball player were received from as far away as New York city, Alexan der reported. Outside newspaper photographers "were after me all . ..... -J Vl V- day xo laae pictures umi said. . w . Original motive behind the move to sign Crosswhite . was to feature him in two benefit games. one for navy relief at Silverton Uprising Is Asked Of India Gandhi Sees Jap Threat, Declares Against Violence By PRESTON GROVER BOMBAY, Aug. 7-(iP)-In the bazarre setting of a canvas pa vilion fitted with electric fans and a public address system, Mohandas K. Gandhi called on his nationalist followers Friday to rise with him in an unprece dented mass campaign of civil disobedience aimed at driving the British out of power in all Indian. "Our movements for freedom in the past will become insignificant compared with the forthcoming movement," the frail little ascetic orator declared as he sat motion less, bare above the waist, his bare legs crossed on a couch be fore which a microphone had been adjusted. "Now is the occasion when we will have to rise." Tet with this dramatic sum mons to action he coupled warn ings that the campaign must be passive, that he would not tole rate violence, and that Japa nese invasion would be "a dan gerous thing you must re move it from your minds." Ten thousand spectators heard him in a hush so deep that the hum of the electric fans was clearly audible throughout his address. The occasion was the opening of an all-India songress party session called to sanction a resolution which will make Gand hi the non-violent generalissimo of the independence drive. Ap proval, perhaps Saturday, is re garded as a foregone conclusion. The committee adjourned until Saturday without any action on the resolution. NEW DELHI, India, Aug. 1(JS) The British government Friday night prohibited the closing of shops and restaurants in India daring a Hartal (days of mourn ing), a weapon of civil disobed ience used by the all-India con gress party in the past. (With this decree the British apparently were taking steps against a civil disobedience cam paign projected in an independ ence resolution , now 'before the full committee of the all India congress party.) . The order, . intended to main tain supplies and essential com modities, empowered district mag istrates to staff shops when own ers refused to open and to sell a number of products, including grain, sugar, milk, vegetables and meat at fixed prices! - Gets Tickets, but No Auto, No Gasoline TORONTO, Aug. 7-(tf1)-Mar-tin Bruton inquired of the police Friday why they , keep sending him summonses for such . things as speeding and ignoring stop signs. He said his car has been dismantled, he has no gasoline ra tion book, and he has been able to navigate only on crutches since he broke his hip in February, 1941. Doubt Now next Monday night and the other in a league contest against Spo kane in Salem on August 21, the latter a percentage benefit ulti mately going to the USO, accord ing to Al Lightner, Statesman sports editor who was asked to assist in the business management of the Senators on a part-time ba sis following-the resignation of Manager Howard Maple early in the season. 5 V - - As to Crosswhite's pitching in other home games, Lightner as serted that "that was fully dis cussed and no question was raised at the - time the contract was signed." . It. was necessary to have baseball association contract form executed to permit Crosswhite to play in league games, but not for the one scheduled - for ; Monday night against : the Silverton Red Sox, a semi-pro club, Lightner said. The contract Lightner. said, was admittedly "only matter of form, because Crosswhite as penitentiary inmate has no civil rights. , ., "We still are planning, to play Crosswhite at Silverton Monday night," Lightner added. "But . as to other games, it's up to Judge Bramham and to Warden Alex ander." ; Stalingrad IS eared in New Drive; Allied Leaders in rSave Russia? Session -"By Th Associated Press', ' ' . a German troops stood Saturday within 60 miles of tha Maikop oil fields in the Caucasus after a swift advance to the Armavir region, and drove in an advance north of Kotelnikovski. . ' Kotelnikovskl lies only 95 industrial city on the railway ious tank battle had raged there throughout Friday and the Russian communique made it apparent that the German steel monsters had forced back the extent of the retreat was not munique. . j. Armavir lies almost due east of Maikop and is 160 miles Japan's Radio Hints Second Front in East May Attack Siberia ; Magnuson Says Jap Soviet War Begun NEW YORK, Aug. 7-VThe Tokyo radio Friday night broad cast -Japanese editorial comment containing the first .hints from there that Japan herself might open a second front with an at tack on Russia in Siberia. The broadcast noted reports of the arrival in Moscow of allied representatives and said the moves in the Russian capital were "indicative of further Anglo American machinations aimed to open up a second iront to save the soviet union from collapse." The Japanese press, the radio added, pointed out that forma tion of a second front was not ne cessarily restricted to Europe or western Asia or Africa. The radio quoted the newspa per Chugaf as warning that this point should be borne in mind by Japan "and that with the approach of Che decisive strag gle between Germany and the soviet union, Japan too should be prepared even more fouy for ultimate victory.' - There have been various re : (Turn to Page 2, CoL 5) Steel Rolling Plant Okehed Portland Company's Equipment Bought, BIcNary States s -WASHINGTON, DC, Aug. 7(P) Construction of a 30,000-ton steel rolling plant at Portland was ap proved Friday by the war pro duction board. Senator McNary was informed.. . . " Senator McNary said Morris Schnitzer, president of the- con cern, the Oregon Electric Steel Rolling company, had purchased nearly all of the equipment need ed and that production likely could be started early next win ter- ' The plant will have initially . . . i . one electric xurnace cbiuw producing 30,000 -tons of steel a year and rolling facilities for shapes, angles, rods, flats and the like. He added that the equipment was excellent and would give Oregon "a" 'very excellent milL" The senator said foundations have been laid for a second elec tric furnace and if the demand for alloyed steel becomes greater than that for carbon steel, " might be used for producing sne higher grade products. About 130 to 140 local workers will be employed but the plant's key men will come from the east, the senator said he was informed. McCallister Claims Votes For Speaker PORTLAND, Aug. 7-PV-WU- liam M. McAllister of Medford, aspirant to the speakership of the state house of representatives, "be lieves ho has lined up some sup- Port -,:v . McAllister said he had been able to enroll some early sup porters. " but he did not disclose the names of his backers. ' Likely opposing him when the legislature opens : will be . John Steelhammer ct Marion county, Herman.'II. 'Chindjrcn of Clack amas county ' and - Carl ' Engdahl of Umatilla county.. Thursday's Weather ", Thursday's max. . temp. 9S, mis. 55. Thursday's river -JJ fit. By array reqnest, weather forecasts are withheld and tern peratnre data delayed. perilously closer to Stalingrad miles south of the great Volga crossing the Caucasus. A fur reinforced Russian lines. The given" in the midnight com south of Rostov. It was the driving German " tank masses that had shattered the Russian defenses around Belaya Glina that rolled deeper and deeper into the vital Caucasus a treasure house of oil, v minerals, industrial plants and fertile farm lands. Armavir Is across the Kuban river. Even as the Russians fought val iantly against overpowering super iority of. German machines 'and men, hints came from the Tokyo radio that the hour of another Japanese stab in the back in soviet Siberia . might be immin ent. (See story - in adjacent col umn.) In the Don elbow 75 miles northwest of Stalingrad . the first Russian defenses still held .and hit back with such fnry that 10S tanks and over 851 Germans were destroyed, ' the communique said. . Guardsmen were credited with repulsing 17 nasi tank charges in the last few days. - The southern arm of the Ger man envelopement drive against Stalingrad was spearheaded by enemy tanks and automatic rifle men who wedged into the red lines ,the accounts said. The battles were fought in oppressive mid-summer heat ? . One bright spot in the Russian communique was the announce ment , that Russian A troops had forced a Don river crossing south. .. of yoronezlr and 'that-fightm is going on for several other popu lated places. "Defensive battles" were fought in the Belaya Glina region, which lies to the north- of Armavir, and the Russian communique said new retreat there; came only in the face of superior German num bers. Forty tanks and 1000 of tho enemy "were reported destroyed. The Germans claimed they were within It miles of the oil derricks at the foot of the great Caucasus moan tains. Moreover, they said they were approach ing Krasnodar on tho Kabaa I river 15 miles southwest of Rostov. , The urgency of the soviet posi-- tion was highlighted by a reported Moscow- conference 7 of allied strategists and diplomats seeking means to save Russia and win tho war. Among those talking with rank ing Russian military leaders were Admiral William H. Standley, US ambassador Maj. Gen: Follett Bradley, US air forces Sir Archi bald Clark Kerr, British ambassa- dor Roger Garreau, of the light ing French; and Maj. Gen. William Steffens, of Norway. German radio reports have insisted mat Prim Minister Churchill, and William C Bullett special envoy from President Roosevelt, were in the Kremlin. The eonf erenee ; apparently was preoccupied with supplies, for Stalin has Insisted stead fastly that Russia's vast reser voir of manpower obviated , the necessity of any expeditionary force of Britons, American or Chinese flghtlnr on Russian soil. He wants tanks, planes, cannons, shells. He also wants a second front In western Europe to dl vert sutler's strength. The vast Russian manpower po tential was being felt on the cru cial fronts, where , soviet lines everywhere except in the Belaya f Glina sector .100 miles southeast of Rostov were reported holding and inflicting enormous casual ties. -X Service Men ? Robert Price, ton of Mr. and Mrs. Wayne Price, 16ft North Cottage street, has received or ders to report to University of Notre Dame, South Bend, IndV Aumst 31 " for - four ; months training tn' the US naval re serve. Upon completion he win be commissioned aa ensign. Price Is a graduate of Wil lamette university la the class of 1942 and at present Is on va cation ' in California and Ne vada. ...' For additional' newt aboat 'men from Salem and vicinity In the armed forces, turn to page five of today's Statesman. . - v. 'there. . French, New York. Turn to page Ave.