PAGE TWO
The OREGON STATESMAN. Salem. Oregon. Saturday Morning. August 8. 1342
OWI Reveals
Output Lag
War Not Fought Out
Of Surplus; Total
Of Ships Smaller
(Continued From Page 1)
.review declared.
OWI -was critical of "faulty
control of inventories and of flow
of rnaterials" which it said had
forced some temporary shutdowns
in war plants. The review added,
however, that the war production
drive was taking a new turn to
emphasize output of materials
and that "mistakes made this time
were nerhaps unavoidable and
will not be made again."
"But, their consequences will
be with us for some ; time to
come," the review added, "and
the resolution not to repeat them
must be backed up by an inten
sified effort of the entire nation."
Declaring that ( there was no
doubt that the Americaa people
meant to win the war. Owl con
tended there was doubt "that all
mt us realize how hard we are
going to have to work to win it"
"Toe many people seem to
feel that we are fighting this
war oat of a surplus a surplus
of resources and productive ca
pacity, a surplus of time," OWI
M "That i not true. We have
nlentv of some resources; m
ethers we are a have-not nation.
"We should all like to believe
M I 4k. unintf tn
have all the rubber we need for
pleasure driving as well as for
military and essential civilian
- Uses. Ul uwre JS b iHrcamxk ra-
: pect of that; if people , eagerly be
lieve everybody who tells them
that there is going to be plenty
of rubber,' they are only fooling
themselves and helping the en-
cmv "
This country is fighting a war
against an enemy "with whom no
honorable peace is possible, the
review asserted, adding that "we
can win it it we realize that win
ning it is the one vitally import
ant thing in the world today; but j
" we are not winning it yet.
Emphasizing that wars are
won only by flabting battles
with what is produced in muni
tions plants, "and winning some
of those battles," OWI forecast
that "it is probablye that we
shall also lose some of them,
and certain that we are not go
ing to win without heavy losses
ef men."
"We had better prepare our
selves for that," OWI cautioned,
"and learn to take it as our an-
eestors took it In a globaw war
we can not-expect always t wirtl
everywhere; we may have ; tQ
learn to take local and temporary
defeats as part of the price of
ultimate victory. Our ancestors
could do that; if we can't, we shall
be unable to . save the independ
ence they won for us."
e jl I oft a I
V 51 niTl f l-wlVf!"!
T f
On" Duration
Of Emergency
KLAMATH FALLS, Aug. 1-JP)
-C. M. Gartrell, Portland hous
lng authority chairman, said Fri
day that, the : emergency govern
ment housing program threatens
to become permanent.
He advised Oregon realtors at
their annual convention to take
immediate steps to lessen that pos
sibility.
fit is the duty of all of us to
do everything in our power to util
ize every available space in exist
ing structures for war workers,'
said
' Gartrell advocated private fi
nancing for the program of con
verting large dwellings and vacant
stores into apartments .lor work
ers. ;
Dr... , Donald M. ; Erb, president
of the 'University of Oregon, told
delegates at their .banquet Thurs
day inight that, freedom -must be
bought off the- installment plan
with a never-ending series of pay
mental ,'"'r' i'- '.!.? - v
"Our history is teeming with
wars,'' he said. "Our history shows
-.that we are a violent people. Our
.'nation was born Of revolution. We
. have had our bloody Civil war,
' we have had lynchings, . vigilante
. governments, the ku klux klan,
- violent and bloody strikes ...
"In not one of our wars have
' we been prepared for war . . . We
have never been willing to keep up
on our Installment payments for
freedom. 1
Power Kills Youth
PORTLAND, Aug. 7 An
accidental, brush, against a 440
volt power connector cost the life
i of Lloyd R. Shandeck, 17, elec
trician's' helper- at the Oregon
Shipbuilding plant Thursday
night, '.V ',--
Obituary:
Robei'"-v-x:;--vJ
Mrs. Bernice C Roberts, late
resident of Turner, at Taft, August
T. Survived by her, husband, Law
renc D. Robwttj one ion. Law
rence Deane Roberts, jr, of Tura
er; two daughters, Mrs. Barbara L.
McAllister of. Shaw and Alice
Roberts of Turner; brothers, Braz
ier C Small of Salem, WilUs H.
Small cf Eugene, Cecil I. Small of
Eugene; and Tmotlr," Mrs. Louise
M. SmalL Announcement of serv
', Ices later by Clouxh-Earrick com-
. pany. . v
r - ' ' 'vv' v
" : , . Y . : Y' " - ---V Y'v--VY.Y.':r ?:..Y-
I -, . ; , ,
v - . y. ,
4 v. .
German captioa ef this picture says
anlnsi soviet tanks on the eastern front, and that the gun bad been used in tbe battles asainst tbc
Belaium fortress Eden-Emael as
from neutral Portugal. (Associated Press Telemat).
More Railway
Stock Needed
New Transport Corps
Head Says Demand
Grows Steadily '
(Continued From Page 1) -
1918, the peak year of the first
World war."
Gross complained at a press
conference that new equipment
had not kept pace with increasing
traffic, but expressed hope the
situation eventually would be re-
I ns 1 TT. tJ 11 - 2. a: -
lieveu. nc saiu uie assucuiuun ui
American railroads was "geared
to war better than any other ag-
ency.
The army's most critical trans
portation problem is the flow of
troops and supplies to ports, and
the railroads are the main reli
ance for this purpose, he ex
plained.
"In an invasion of Europe,
however, we would have to move
mostly by motor truck, as by the
time a beachhead was established
we would expect the railroads to
be destroyed," Gross added.
"The army, he said, could
make effective use now of
twice as many ships as are
available, and advised that we
are going to scream for every
last ship we ean get."
Creation of the transportation
corps, which Ha similar to, agencies
Uet uo 1ri' this country' ; and in
France in 1917-18, was announ-
ced Thursday,
Senators and
DeWitt Talk
iM-awLi w..rwwv Y
CAW TO A Mrrcm Anr'7 fiv
Three members of a senate com'
mittee Jissigned to inspecting
Alaska defenses ' conferred for
four hot its Friday with "Lieut.
GenI J. L- De Witt of the western
defense command,, and "our talk
was very satisfactory," reported
Chairman A. B. Chandler (D-Ky)
"Naturally I can't divulge what
was said' Chandler told report'
ers, "for much of it was military
information that the enemy would
like to have."
Participating in the conference
were Senators Harold .Burton (R
Ohio) and Mon C, Wallgren (D
Wash), also members of the spe
cial militiry affairs subcommit
tee. TogeCier with Chandler, Sen
ator Rufus Holman (R-Ore) and
George W. Malone, committee
consultant, they are to leave from
Spokane, Wash for Alaska, prob
ably Monday.
On its return, Chandler said,
the committee will investigate
civilian defense preparedness on
the west coast.
Majority Not
Hit, Dimout
PORTLAND, Aug. l-JP)-Oie-gon:
civilian defense officials were
told Friday that the August 20
dimout regulations will not affect
the average householder.
Street lighting also will not be
affected except in ocean-front
towns, H. P. Everest, assistant di
rector of the northwest sector of
OCD, said in a meeting here. Nei
ther will navigation or railroad
signals be affected.
Home owners, however, will not
be able to use flood lights for ga
rages, chicken yards or back
yards.
Late Sports
HOLLYWOOD, Aug. 7-(-Manuel
Oritz of California won
the world's bantamweight cham
pionship Friday night by a de
cisive margin over Title Holder
Lou Salica of New York in a 12
round bout .
COAST LEAGUE '
PORTLAND, Ore., Aug.
Second night game: . . f
Seattle U
Portland
000 000 24M 10
000 000 000-0 7
BarreH. and . Keen OrrelL
Cohen (7) ai Leovich, Mayer
1(9). . -
Veteran oi the EuropeaitWar
Z 14
, Mi. 4 '- ...... -r,-,- ....
the artillery piece shown is
indicated on the sun barrfL The
Santiam Highway
Repairs Slowed
Late rains have retarded im
provement operations on the
South Santiam highway, although
considerable work will be com
pleted on the, road before fall,
R. H. Baldock, state highway en
gineer, reported here Friday, fol
lowing an inspection of a number
of eastern and central Oregon
highways.
Baldock reported that recon
struction of the Wallowa Lake
highway is progressing satisfac
torily. He was accompanied on
part of the tour by Herman Oli
ver, John Day, a member of the
state highway commission.
There were seven slides on the
South Santiam highway during
last winter.
Morse Warns
On Stoppages
Says Outlaw Labor
Moves Direct
War Conflict
(Continued From Page 1)
employes of the Detroit and Cleve
land Navigation company, De
troit.
The board refused the union's
request for pay for time lost dur
ing a work stoppage and con
demned both parties for the lost
time,", .
' The International Longshore
men's union (AFL) had asked in
creases of 15 cents an hour for
employes handling freight, 20
cents for watchmen, 10 per cent
for monthly employes earning
more than $150 a month and 15
per cent for those earning less
than that amount.
Inquiry Set
On Papers'
Midway Story
WASHINGTON, Aug. 7.-()-
Attorney General Francis Biddle
announced Friday night that
grand jury investigation would be
started immediately at Chicago
into the publication "by certain
newspapers on Sunday, June 7,
1942, of confidential information
concerning the battle of Mid
way."
Biddle said he had directed the
investigation as a result of a pre
liminary inquiry and upon the
recommendation of the navy de
partment.
The official announcement did
not name the newspapers but Ro
bert W. Horton, head of the news
bureau of the office of war infor
mation, said the investigation in
volved the Chicago Tribune, the
New York Daily News and -the
Washington Times Heral." 'I''
The grand jury will be direct
ed to investigate the possible. vi
olation of any criminal statutes,
Biddle said, particularly the act of
March 28, 1940, forbidding the un
lawful communication of - docu
ments or information relating to
national defense. " ;
Horton said the three newspa
pers he named published a story
stating that the strength of the
Japanese naval forces engaged in
the battle of Midway was known
in advance in American naval
circles. The story cited as Its ail
thority "reliable sources in the
naval intelligence." " !: ' V
The story carried' a complete
listing of both the enemy's strik
ing force and the occupation
force which v were engaged ". and
turned back by "American naval
and air forces. - '
Rites in .Tillamook : ;
TILLAMOOK, Aug. 7. -(5s)
Funeral services for Oscar A, Ef
fenberger,. 5 U Tillamook indus
trial, political, and civic, leader,
will be held here" Saturday morn
ing. He:.wafkjnlik--t)ox.iae;.
tory accident Wednesday -
EVERY SATURDAY
. Rowland's Band
Y 1 Miles. .North on -
Riva Road .v
DMIC
1
heavy anti-aircraft ran tn action
picture was received tn New York
Tacoma Feels
Clerk Strike
Retail Walkout Shuts
Four Stores, Maybe
All This Morning
(Continued From Page 1)
remained on duty until after nor
mal closing time.
A spokesman for the union said
no strike was called, but that af
ter months of "fruitless negotia
tions the retail clerks just walked
out"
"With all efforts at conciliation
resulting in failure, with the em
ployers refusing government ar
bitration, no other results could be
expected," a union statement said.
The industrial conference board
said the union struck in the midst
of negotiations In the presence of
US Labor Conciliator W. B. Hick-
erson of Portland. M. J. Muckey,
manager of the board, said Taco
ma merchants had offered sub
stantial increases ranging up to
13 per cent, but that the union
had rejected them.
Muckey said the merchants of
fered pay schedules that were the
basis of settlements being made
in Seattle. He said the schedules
were in most respects the high
est ever oriered retail clerks in
the United States.
No Indication
Yet of Eight
Nazis' Fate
WASHINGTON, Aug. 7 -(JP)-There
was no indication Friday
night as to when the fate of the
eight alleged nazi saboteurs would
be announced.
The White House merely let
stand a statement " by the chief
executive that he had not yet
completed his study, of testimony
obtained by a military commis
sion which tried the men on
charges they came to America on
nazi submarines to destroy key
war installations.
Mr. Roosevelt said last Tuesday
he would finish his review of the
case in "two of three days." But
in the three days that have
elapsed he has had Relatively lit
tle time to devote to the volumin
ous documents laid before him by
the military commission, since
Queen Wilhelmina of the Neth
erlands has' been a White House
guest.
In response to an inquiry about
an International News Service
story that the chief executive had
approved death sentences for six
of the saboteurs, William D. Has
sett, assistant presidential secre
tary, told reporters "the presi
dent has not yet concluded his
reading of testimony in the sab
oteur case," . The chief t executive
himself- repeated that assertion at
a press conference' .
' There was a possibility that any
executions which " might be or
dered would preced an announce
ment of the sentences meted out
Rails Head Harvests
- LIVINGSTON, Mont, Aug. 7-Oip-Bfinjamin
W. Scandrett vice
president of the Northern Pacific
railway has volunteered to help
harvest the hay crop at Ox Yoke
ranch, where he is a guest, and
probably will be pressed into ser
vice, Mrs. Peg Murphy, ranch
manager, said Friday. t
E
Show Starts 1 to
1 p. m. ". ' 5 p. za.
?5e
Plus Popey 'Re
tmd "Juncde Girl""
-The Ghost of I ""ObUaiacj
- at la- r.-r'tl.V Lady"
Japans Radio
Hints Front
May Attack Siberia;
Magnuson Says Jap
Soviet War Begun
"(Continued From Page 1)
ports, particularly from Chinese
quarters, that Japan had massed
a large army in eastern Asia for
an attack on Siberia.
SEATTLE, Aug. 7-P)-M Japan
is i already at war with Bussia
and it is common knowledge in
Washington, DC, that the Japs
have already sunk several Russian
ships in the Pacific." Rep. Warren
G. Magnuson (D-Wash), a mem
ber of the naval affairs committee
said here Friday.
; "The last was sunk very re
cently,' he said. "They are Jus
tifying their action on the ground
that the Russians were carrying
American materials."
He sal a ne Knew only in a
general way of the sinking of
Russian ships by Japanese sub
marines. He said he had heard
the name of the vessel most re
cently sunk In the north Pacific
but had forgotten it
"War between Japan and
Russia started, he told inter
viewers, "when the Japs began
strengthening their forces in
Manchuria, and when they seis
ed Attn and Klska islands In the
Aleutians.
"It is generally believed in
Washington that the Japs went
into Attu and Kiska for three
reasons. First, they beat us to it.
They knew we'd be there sooner
or later in offensive action against
the Japs' home islands.
"Secondly, they wanted weath
er miormation from that area.
Because the weather moves from
northwest to southeast across the
continent from the north Pacific,
they are now in a position to
know what kind of weather we're
having along the west coast and
in the northern interior.
"But the last and perhaps the
most important reason was to be
able to straddle the Russian sup
ply line from the American west
coast."
Britain Sets
Clocks Back
LONDON, Saturday, Aug. B-(JP)
-British clocks- will be set back
one hour at 12:30 a.m. Sunday,
returning to single daylight sav
ing time.
The blackout will be from a half
hour after sunset until a half hour
before " sunrise, effective Sunday
Under the present double sum
mer time the blackout has been
from, 45 minutes after sunset un
til 45 minutes before sunrise.
S Off
J :f rXJI
Hi AY "
Now
Showing:
i
I I - f The Biggest Shotv K
rfMIl II II ill I Value We Ever V
If L 1 a ffered! jj
' ill II , "J Yo" w "w aaything
' I W! lrV- ' J-rU - s "--1,1 ptctr vt fllmce.
lliilnrii Jr J .i5s ikrfltet - -
u V j '
Cox Office Open 1.00
CONTINUOUS SHOW
m
mm--
' .V, ,,V;'
' By KIRKE L. SIMPSON
Wide World War Analyst for Tha Statesman
A grave possibility that the left
wing of the Russian army of the
Caucasus, which Moscow says is
still battling nazi invaders south
of Kushchevka, has been trapped
was indicated by Berlin versions
of the south Russian battle.
The Germans claimed also cap
ture of important Armavir junc
tion, more than 100 miles to the
south, and penetration of Russian
lines across the Kuban to within
30 miles of the Maikop oil field.
It still seems possible, how
ever, that the fighting along the
Teya river, south of Kushchev
ka, is a rearguard action to
cover red retreat below the
Kuban in the sector between
the Axov sea coast and the line
of the Rostov-Baku railway.
German claims of the capture
of Yyeisk, Azov sea port 70 miles
due west of Kushchevka on the
lower end of the Bay of Tagan
rog, tends however, to confirm
the impression that the main
body of the Russian forces in the
northwest corner of the Caucasus
above the Kuban may have made
good its escape to the Yeya river
line.
House Owners
Warned on
Blacklist
Salem house and apartment
owners, provided they desire to
keep the city from being black
listed as have some other towns in
the Camp Adair area, should keep
their rentals down to the level of
last March.
This was the warning issued
here Friday by H. C. Johnson, co
ordinator for the four-county can
tonment council, and Clay C.
Cochran, business extension man
ager for the Salem chamber of
commerce.
Johnson referred to a letter he
received recently from army of
ficials. The letter, without men
tioning any names, saia one
apartment house owner, had
boosted his rent prices for one
class of apartments from $27 to
$45 a month and another from $18
to $35 a month.
The
RIOT
of
RADIO
Is Note The
Panic
of
Pictures
RED
"I Dood It"
SKELT0II
. r
IVEISsHuLtER
mmrmmnmmmm
O'SULLIVaU
DAILY
M
1 i
I ;w and
I'vv Ann
If that be true, it seems obvi
ous that the front the army of the
Caucasus still hoped to hold on
the left was the Kuban-La ba line,
backed by the foothills of the nor
thern end of the Caucasus range.
This front would , cover all ap
proaches to Maikop and the oil
pipeline from Kaikop to Tuapse
on the Black Sea, important as an
advance fueling base for Russian
Black Sea warcraft
Berlin asserts, however, that
nazi units not only are approach
ing Krasnodar on the Kuban 70
miles northwest of Maikop; but
have pushed to within 30 miles of
Maikop in that sector. If that is
true it means the Kuban defense
front has already been breached
east of Krasnodar as it has al
ready been crossed from Armavir
northward to Kropotkln.
Dark as the entlook Is on the
Russian left flank and in the
center, where the deepest nasi
spearhead fa reported astride
the Black Sea-Caspian railroad
below Armavir, there b one
gleam of encouragement
Berlin admits that heavy red
reinforcements have entered . the
battle in the sector between the
Don and the Sal rivers. That nazi
thrust northeastward up the Kras
nodar-Stalingrad railroad gravely
menaces the great Volga industri
al center of Stalingrad. It is a
nazi attempt to turn from the
south the Russian Don bend front
through which Germans have
failed to crash in repeated attempts.
I LAST DAY . 1 .' IT!
i I BETTY , VICTOR 1 "
GRABLE MATURE 1 A
Jack Oakle 1 U
"SONG OF THE ISLANDS" I n
AND 1 H
TYRONE , DOROTHY i
POWER L AMOUR ys. M
JOHNNY APOLLO- f X 1
y-''-J 0
Cif 'St w
take a untx, Kt f vA::f V I
Wool Weol I Aady ! '
ifcftaahteU Vrz
A private secieHiry . . - I
eB Jut ewH...ead ; ti .
U'lMitivrwU tWCl ffj
Uflh...at never r tYt iTk fTtTti fTi 1
i-,r.LI HOLE &iuL I
: . ( BARRYCORE
1 nC BOX OFFICE I 1
15 M'Jpm O OPEN
IM life' '-.fefls-y;.
Kaiser Gets
Nelson Order
Promise First Plane
Of 500 Ten Months
From Drawings
(Continued From Page 1)
program will not Interfere with
combat plane production by se
verely draining materials, mach
inery or equipment
A second. letter of Intent will be
Issued to Kaiser, a WPB spokes
man said, authorizing him to pre
pare designs and engineering spe
cifications for a 200-ton flying
boat, intended to be a cargo car
rier vastly greater than anything
in the skies.
: This commitment, however, will
nns: n v a r rnninifi irm rrr mm
mammoth plane.
Kaiser, who came to Washing
ton nine days ago with his idea
for building big aircraft in ship
yards, told reporters Friday night
that the' swift consideration given
his startling proposal by WPB
"was wormy of the attention of
the nation.".
; He promised j the first plane
weald be produced within ten
months ef the time that produc
tion drawings are complete. He
said he weald leave for New
York Friday night, meet a son
flying there from Portland.
Ore and the two would start
qfvening up our organization'
on Monday.
He had an hour-long conference
with Nelson Friday afternoon on
the giant planes pioneered at the
navy's instructions by Glenn L.
Martin of Baltimore. Kaiser has
testified they could carry 20 tons
of cargo or 100 troops each.
E. A. Locke, Jr., assistant to
Nelson, and directly In charge of
cargo planes, said he thought the
Kaiser program need not interfere
with comTsat plane production. He
suggested materials might be
shaved from other programs, pos
sibly a little each from trucks,
tanks and ships, if this, were
agreed to by the chiefs of staff.
WCWSSZ2
A- A
STARTS