apital
Joiuiiriial
Palestine In Miniature
proclaimed the "eighth wonder of
the world," showing dally afternoon
and evening at Court and Commer
cial streets, for the benefit of tht
American Red Cross wax relief
fund. Continuous show.
Buy Defense Bonds
1 Wednesday, January 21, 1942
54th Year, No. 18 matter at Salem Oregon
Salem, Oregon
P! TUnn rn. Stand Fire Onto
m. IIIICB On Train, .nfl K,wm
Q tga xa AiBKin o jo n a g
ops Torpedoed in Atlantic
ore
ill til
r
n i m
U.S. Sh
Nelson Starts
o To Reorganize
War Industries
Abolishes OPM Creat
es 6 Divisions Auto
Branch Established
Washington, Jan. 2l (P)
Donald M. Nelson announced
today he would abolish the
office of production man
agement and bring all its
functions and activities un
der his authority as chairman
of the new war production
I board.
Nelson told a press confer
ence he was setting up six
major divisions under the
board, eliminating the old
contract distribution division entire
ly, and incorporating the priorities
and allocations system under a new
division of Industry operations
charged with lull responsibility for
the conversion of all possible Amer
ican industry to war production.
Requirement Head
He said an Important branch of
the new. set-up would be a require
ments committee, headed by Wil
liam L. Batt, Philadelphia indus
trialist, and composed of representa
tives of the army and navy, lend-
lease adminstration and all other
agencies concerned with production
of raw materials.
The reorganization, "effective as I
soon as the orders can be drawn,"
was described by the war produc
tion chief P-s an interim plan sub
ject to possible ftitUrerevlsioit ' '
k "Any revolutionary changes would
only bring delay," he commented.
Kanzlcr Named
As a first move in- the conversion
program, Nelson appointed Ernest
Kanzlcr, long time associate of
Henry Ford and formerly in charge
of Ford production, to head up the
automobile conversion program
with "all the authority I've got to
get that job done."
Last night Nelson commanded the
automobile industry to halt produc
tion February 1 and turn its full
power to war production.
Kanzler, as chief of the OPM au
tomotive branch, will move with
"as much of a staff as he needs" to
Detroit where he wilt set up a head
. quarters and direct the conversion
f at the scene of operations.
Nelson said that Kanzler would
have ample authority "if he needs
it" to compel autcmobile plants to
pool their machinery or to take any
other cooperative action which
might be necessary to assure suc
cess of the conversion effort.
The reorganization will strip Sid
ncy Hillman of his title of associate
OPM director but will leave him as
director of the WPB labor division
one of the six major board
(CniH'luilrU tin Page 7, Column 8)
Celebes Seized
By the Japs
Batavla, N. E. I., Jan. 21 W) The
Dutch high command reported to
day that "according to reliable re
ports" Japanese forces have occu-
picd all of Mlnahassa, the north
eastern arm of the Island of Cele
bes, but "paid dearly for this con
quest." The invaders used parachute
troops in their attack on the nar-:
row peninsula, it was announced
through Aneta, Netherlands news
agency.
The general attack on Mlnahassa
was said to have been preceded by
a series of air raids directed chiefly
at the airdromes. The parachutists
began to arrive at the same moment
as the first landing of Japanese
troops from the sea, and within two
hours landings were being made in
force in five or six places.
Japanese planes, a communique
said, staged three bombing attacks
yesterday on Belawan, seaport for
the town of Medan on the east
coast of Sumatra; against a light
chip in Malacca strait, near Medan.
and on an airdrome in Dutch Bor
neo. Three persons were reported kill
) Mi and seven wounded In the raid on
' Medan, while an unspecified number
of planes were damaged in the as
sault on the airdrome. The bomb
ing and machine-gunning attack on
the lightship, carried out by three
plane.1;, was said to have caused no
damage.
I ' -'-jrv -:
Prisoner of Japs? Nathan Dan
iel Teters (above), head of civil
ian workers on Wake island was
reported in an official Tokyo
broadcast to be a prisoner of
the Japanese. Teters, a son of
Mrs. Mary Teters of Wood
bridge, Calif., attended Wash
ington State college prior to
joining, the staff of the Morrl-ison-Knudsen
company at
Boise. Ida. Associated Press
-Photo." 4
Japanese Raid
New Guinea
Melbourne, Australia, Jan. 21 (&)
Japanese bombers raided the key
ports of eastern New Guinea and the
Bismarck archipelago for hours to
day in strength which the Austral
ian air command said suggested
that "major attacks in this area
can be expected."
Principal targets of the raiders
were Kavieng, at the north cape tip
of New Ireland where the Bismarck
archipelago juts closest to the Japanese-mandate
Caroline islands;
and the east coast New Guinea
cities of Madang, Sa la mail a, Bulolo
and Lae.
The bombers were supported by
strong fighter groups.
Forty bombers escorted by 20
fighters attacker Kavieng in the
first of the raids, early this morn
ing, an Australian communique
said.
A short time later three raiders
bombed Madang.
Strong Japanese aerial forces
were sighted at a number of other
places along the northern coast of
New Guinea and over the Bis
marck archipelago.
More than 50 Japanese bombers
and fighters were observed flying
In the direction of Salamaua, south
of Madang, and shortly after noon
a small group of raiders attacked
Salamaua airdrome.
Reopen in Portland
Washington, Jan. 21 (A) The of
fice of government reports said yes
terday that It planned to reopen.
probably in February, its Portland
office, closed this fiscal year because
of lack of funds.
Fewer Insane Since
Nation Went to War
Since America went to war, the populations of the state
hospital and the state penitentiary have decreased, the board
of control was advised today. Dr. J. C. Evans, state hospital
supci iiui-iKicm, ioia uie ooara mat
he had 2,630 patients, whereas he
had expected the population to be
more than 2.900.
"The population drop was caused
by a dearth of commitments," he
said, "and not by our curing any
more patients than usual. Since the
nation mobilized most people arc
angry and are keeping busy working,
so that It keeps them from becoming
subject to severe mental strains.
"But when people are thrown out
of work when tho war ends, and
they thus begin to pity themselves,
then our population will Increase."
Dr. Evans said that Insane hos
pitals In England also reported few
Russians Pursue
Fleeing Nazis
From Mozhaisk
Key Point of Hitler's
Line Taken with Many
Prisoners and Supplies
(By the Associated Press)
Russia celebrated her
greatest victory of the war
today as the red armies drove
six miles beyond fallen Moz
haisk, 57 miles west of Mos
cow, in pursuit of Adolf Hit
ler's battered invaders along
the Napoleonic road of retreat
to Smolensk.
London military quarters
estimated that 200,000 Ger
mans had been forced to with
draw toward the narrowing
Vyazma gap as a result of Mo
zhaisk's capture.
Vyazma is about half way be
tween Moscow and Smolensk.
Donets River Break
Simultaneously, a bulletin from
Hitler's field headquarters acknowl
edged that Soviet troops had broken
through German lines' on the upper
Donets river presumably in the
fierce battle for the big doncts rivet-
steel city of Kharkov, Russia's
"Pittsburgh" in the Ukraine.
The high command asserted, how
ever, that nazl counter-attacks had
thrown the Russians back.
No hint of the defeat on the cen
tral (Moscow) front was given the
German nation.
. While , Hitler's winter ' scourged
armies fell back along the 70-mile-
wide "escape corridor" from Mo
zhaisk, threatened by Russian
flanking thrusts on both sides, the
Berlin radio broadcast this version
of the struggle:
German Version
"The German line on the eastern
front, reaching from the sea of
Azov to encircled Leningrad, is in
tact in spite of many and heavy So
viet attacks.
"These attacks resulted in heavy
losses being suffered by the Soviets
but without achieving the occupa
tion of any important points.'
The fall of Mozhaisk, climaxed by
bloody street fighting in the glare
of burning buildings, was announced
in four words by the Russian com
mand: "Our units captured Mozhaisk,"
Key of Nazi Lines
The city, forward anchor of Hit
ler's winter defense front, was oc
cupied by triumphant red army
forces at 8:30 a. m. (12:30 a. m.
EST) Monday. It had been captur
ed by the Germans just three
months ago ip the heyday of their
now broken offensive against Mos
cowthe drive which Hitler pro
claimed would be "the last great, de
cisive battle" of 1941.
In London, Soviet quarters de
clared that the fall of Mozhaisk
would signal a "titanic continuation
of the battle" and that the Russian
army now had hundreds of thou
sands of completely fresh reserves
ready to hurl into a giant offensive
along the entire 1,200 mile front,
Enormous Losses
rass, the official Soviet news
agency, said the Germans suffered
enormous losses In an attempt to
obey Hitler's order to hold Mozhaisk
at all costs.
Tass said red army troops, storm
ing into the city after smashing
earth-and-timber forts 50 to 100
(Concluded on Vnuc 7, Column ft)
er patients after Britain went to war.
The state prison population Is
down to 979, about 50 less than nor
mal. The reason probably Is that
criminals arc finding defense work
moro profitable than crime.
Dr. Evans told the board that
Oregon has a high percentage of
insane because the state has high
standards. Many patients consid
ered insane In Oregon would not
be considered so In other states.
"A hill-billy in a southern state
who Is a little queer is permitted
to run at large. But in Oregon,
we lock him up," the superintendent
said.
Tanker Crew Cheer After Craft Limps to Tort Members of the crew of the SS Malay with their cap
tain, had a cheer after they brought the craft into Newport News, Va., after it had been shelled
and torpedoed off the Carolina coast. The seamen are grouped about a hole in the deck made by
the blast from the torpedo. Associated Press Photo.
Argentina Asks
For Compromise
Rio de Janeiro, Jan. -21 (U.R) Argentina was reported
today to have agreed to a compromise on the resolution for
a joint severance of all relations with the axis nations by
21 American republics. The compromise, it was understood,
was drafted by Foreign Minister Oswaldo Aranha of Brazil
War Plan for 1
Hemisphere
Washington, Jan. 21 tP) A gigan
tic war production plan for the
western hemisphere which in
cludes abolition of all trade bar
riers, establishment of a common
currency for all anti-axis nations
and use of United States naval and
air units to convoy hemispheric
shipping was disclosed today by a
high commerce department official.
The program, drawn up by the
United States, was expected to be
agreed upon at the American con
ference of foreign ministers, now In
sesssion at Rio de Janeiro. The com
merce official, who declined use of
his name, predicted it would be
applied to all nations subscribing
to the plan.
If Argentina, Chile, or any other
nation, does not enter the hcml
sheric collaboration plan, he said,
they will be ignored and the plan
will be pursued by the remaining
American republics.
Argentina and Chile were report
edly holding back on one of the
major aims of the conference total
severance of diplomatic and econ
omic ties with the axis.
The plan known as the Joint
war production plan is being out
lined at Rio by Undersecretary of
State Sumner Welles, Assistant
Secretary of Commerce Wayne C.
Taylor and Warren Lee Plerson
president of the Export-Important
bank.
Silver Replaces
Nickel in Coin
Washington. Jan. 21 (U.R) War
and priorities have finally caught
up with the nickel the magic
touchstone that operates the tele
phone, the subway turnstile, the
juke-box, the vending machine and
other prime essentials of American
civilization.
The old nickel was three-fourths
nickel and one-fourth copper; the
new nickel will be one-half silver
and one-half copper.
The famous 5-cent piece has been
taking up an average of 435 tons
of nickel a year. This Is one-fourth
of the amount consumed by the en
tiro civilian economy.
Russian Envoy to
Japan Going Home
Tokyo. Jan. 21 'Official Broad
cast Recorded by AP) Constantin
Smetanln, Russian ambassador to
Tokyo, will leave for Moscow Sat
urday, Domei news agency reported
today.
"Smetanln Is returning to report
to his government on various mat
ters as well as to recover his
health' the report said.
!wlth, the approval oi the United
States delegation, to permit -Argentina
lo "save her face" in the light
of her strong opposition to the re
solution. The compromise, it was said,
would permit the American Repub
lics to submit the severance resolu
tion to a referendum of the cabin
ets and congresses of their respec
tive countries, thus giving each
country freedom of action but ach
leving a unanimous vote on the
measure in the conference of for
elgn ministers.
One conference source explained
that the original resolution would
have required the approval of the
American governments anyhow.
It was believed that Chile also
would agree to the reported com
promise rather than remain the
lone holdout, inasmuch as Chilean
objections to the original resolution
were similar to those of Argentina,
In Chile's case the domestic poli
tical situation is complicated by the
presidential campaign terminating
with the Feb, 1 elections.
Before the compromise was
ported, drastic attempts were made
by some delegates to force a show
down on the resolution. Both Ar
gcntlna and Chile had joined, with
reservations, In the economic and
solidarity projects while holding
out against a break In relations
with the axis.
Expect New Jap
Thrust at Burma
Rangoon, Burma, Jan. 21
(U.R)-
New Japanese thrusts into Burma
during the next 10 days almost
certainly may be expected, an offi
cial announcement warned today.
"During the next 10 days ... it
is almost certain that the Japan
ese will make thrusts into Burma
territory," the director of news ser
vices said In a bulletin. He added
that enemy activity in Burma de
pends "on the fortunes In South
Malaya" where the enemy "has
made remarkable progress."
Burmese territory already has
been penetrated by both Japanese
and Siamese forces.
Big Navy Bill
Passed by House
Washington, Jan. 21 (P) A $3,
300.000,000 authorization for con
struction of 1,799 minor auxiliary,
combatant and patrol naval vessels
and authorization for expenditures
or $750,000,000 In additional ship
building facilities were passed swift
ly by the house today.
Action came on voice vote, Just
two days after the legislation was
introduced. Chairman Vinson (D.,
Ga.), of the naval committee told
his colleagues that specification of
the number of ships to be con
structed, rather than the total ton
nage, marked a departure from the
usual custom, and was done to hide
their type "lor military reasons."
Deserf Storm
Slows Clean-up
Cairo, Egypt, Jan 21 () The
worst sand and rain storms seen in
Libya in 10 years are hampering the
movements of British land and air
forces attempting to strike at Gen.
Erwin Rommel's axis forces along
the Gulf of Slrte, British headquar
ters said today.
As a result, much of the region
has been rendered Impassable, i
communique said, and the axis for
cos have taken the opportunity to
mine heavily the restricted areas
over which the British might press
the advance.
This has made operations doubly
difficult, the bulletin declared.
Tho announcement said, however,
that collection of equipment in the
Halfaya (Hellflre) Pass sector along
the Libyan-Egyptian frontier wrest
ed from the axis last week was con
tinuing and that the final count of
prisoners captured there was 5,026.
The prisoners were said to include
57 German officers and 2,069 men,
One hundred and 78 officers were
listed among the Italian captives,
Captured equipment, the British
said, included 16 German and 44
Italian field pieces "In first class
condition" and large quantities of
oiher arms, munitions and supplies
of all kinds.
German Soldier
Shot in Paris
Vichy, Jan. 21 (U.R) The shooting
of a German soldier outside ai
amusement center in Paris was dls
closed today when German authori
ties advertised In newspapers for aj
witness.
The authorities said through the
newspapers that a number of su
spects had been rounded up. They
asked a girl who was believed to
have witnessed the shooting to pre
sent herself to identify the assail
ant from among the suspects.
The shooting occurred outside
Luna park near the Maillot gate.
Jap Ship Torpedoed
By Mosquito Boat
Washington, Jan. 21 (Pj For a daring exploit bril
liantly accomplished, the navy wrote a new name on tho role
of its war heroes today and added one more ship to Japanese
josses lor the Philippines invasion.
The name belonged to 30-ycar-
old Lieutenant John D. Bulkcley of
Long Island City, New York, who
rocketed a swift motor torpedo boat
into enemy-held Blnanga bay and
torpedoed a 5.000-ton Japanese ves
sel, despite a storm of enemy fire.
Thus did the navy's new "P.T."
boat make its spectacular debut in
the Pacific war theatre and the ac
tion undoubtedly heralded many
similar attacks in the future.
The nocturnal assault, suggest
ing anew the steadily wider opera
lions of Admiral Thomas S. Hart's
far eastern command, was reported
by the navy department In a com
munique last night which said that
Bulkeley "has been commended for
executing his commission success
fully." Bulkeley had eight seamen, as yet
unidentified, In his crew, but the
mat ter-of -fact navy statement hard
Japan io Bring
Allies to Knees
Declares Tojo
Premier Reports on War
Claiming Unbroken Suc
cession of Victories
Tokyo, Jan. 21 (Official
Broadcasts Recorded by Unit
ed Press in San Francisco and
New York) Premier Hidcki
Tojo warned the 79th session
of the diet today that Japan
"must be prepared for diffi
culties of various tasks that
may arise in the future so
that the present war will be
come a successful one."
Speaking1 at the opening
session of the diet, called to
vote more war funds, Tojo said that
although the United States and Bri
tain had suffered early set-backs,
"It is not difficult to imagine that
they will stubbornly resist and try
to turn the tide."
llroughl to Knees
He said Japan, working in close
cooperation with Germany and
Italy, was prepared to fight until
the United States and the British
empire "are brought to their knees.'
A full report on the conduct of
Uie war and Japan's intentions to
ward interested nations was deliv
ered to the diet by Tojo and Foreign
Minister Shlgenori Togo. Togo said
that American and British "bases of
aggression in east Asia arc crum
bling one after another."
Of Japan's relations with other
nations, the diet was told:
Australia: "Japan will show no
mercy if they continue resisting."
Other Relations
Netherlands: "Japan harbors no
enmity toward the people of The
Netherlands East Indies. Now, how
ever, that America, Britain, The
Netherlands and Chungking in col
lusion have turned their countries
into a military base, and tho NEI
itself has embarked on a course of
flagrant hostilities, we have been
compelled to commence armed hos
tilities against that country."
The Philippines: "Japan will glad
ly enable the Philippines to enjoy
the honor of independence and to
further cooperate with us as one
of the partners toward the estab
lishment of greater east Asia."
China: "There still exists elements
in Chungking that rely upon Amer
ica and Britain, but the day Is not
far distant when they, too, reflect
ing on the entire mission of greater
cast Asia, wilt cooperate in the con
struction of the new order."
Russia: "The relations between
Japan and the Soviet Union . . are
regulated by the neutrality pact.'
South America: "We are prepared
to respect fully the position of the
South American countries so long
as they are not misled by American
and British machinations and do
not adopt a hostile or unfriendly at
titude toward Japan."
Germany and Italy: "However
frantically America and Britain may
endeavor to alienate Japan, Ger
many and Italy and their allies,
there Is no room for such imagin
ings. The Iron will of the axis pow
ers Is not to be compared with that
of the so-called allies."
ly hints at the nerve-racking peril
of their mad dash. It reports mere
ly that "this small boat carried out
its difficult task while under fire
of machine guns and three-inch
shore batteries."
Tlie greatest protection the men
had was the speed of their powerful
craft, whose 4,200 horsepower en
gine Is capable of producing a max
imum of of about 70 knots, or 80
miles an hour.
Besides speed, there was the ele
ment of surprise in the night-sur-
prLse Increased by the fact that
Blnanga bay, tucked away Inside
Sublc bay on Luzon Island, Is far
from any known baso of allied op
erations in tho far east. The Jap
anese might reasonably have ex
pected An. lean submarines In that
vicinity but they apparently were
not on guard against a lightning at
, lack by a lone small boat.
City of Atlanta
And Ciltvaira
Sunk by U-Boats
44 of Crew of Atlanta
Lost MacArthur Re
pels Assault in Luzon
Washington, .Tan. 21 (P)
The navy department an
nounced today two more at
tacks on steamers by enemy
submarines off the Atlantic
coast with one ship sunk, the
other believed sunk, and a
loss of 4fi men dead and miss
in fc.
The steamers were the
American ship City of Atlan
ta, which was sunk cither by
shell fire or torpedoing, and
the Latvian steamer Cilt
vaira. Both ships were at
tacked January 19.
The attack on the City of
Atlanta occurred in the morn
ing of that day off Cape Hat
teras, N.C. The Ciltvaira was
torpedoed "off the Atlantic
coast," the navy said, and 21
members of the crew arrived
at the coast guard base at
Charleston, S. C, yesterday
aboard an American tanker.
The heaviest loss was aboard the
City of Atlanta. The navy report
ed 43 missing and one dead out of
a crew of 46. Two survivors are in
a hospital In New York.
Two men were reported to have
lost their lives aboard the Ciltvaira
and survivors included, in addition
to the 21 members of the crew
taken Into Charleston, nine officers
and crewmen picked up by another
rescue ship and now en route to
port.
(Associated Press War Editor)
Allied warships were reported
shelling Japan's invasion armies
swarming down the Malay jungle
coast 60 .miles north of Singapore
today, and the United Nations were
further heartened by President
Roosevelt's disclosure that "the
Yanks are coming!" with A.E.P.
vanguards already in action or en
route to far-flung battle zones.
Singapore's defenders shot down 13
Japanese raiders over the Singapore
Island citadel today, and RAP bomb
ers wore officially reported to have
launched "heavy and successful at
tacks" against Japanese held air
dromes in Malaya during the night.
An official Tokyo broadcast claim
cd without confirmation elsewhere
that Japanese spearheads had
thrust within six miles of Johore
strait, mile-wide water barrier to
Singapore, and asserted that large
Japanese forces were moving up for
a direct assault on the Island
stronghold.
Heavy Fighting
British headquarters, however, de
clared that the main battle sector
was still many miles away, witli
heavy fighting raging in northwest
Johore state, in the Bakri and Bu
hit Payong areas, where British ar
tillery Inflicted bloody losses on the
Invaders in close-range firing.
In the Philippines, a war depart
ment bulletin said Gen. Douglas
MacArthur's valiant Amecican-Fili-pino
defense forces had driven back
the Japanese invaders with heavy
lasses "in particularly savage fight
ing" on the Batan peninsula.
The communique said Japanese
troops had gained "sonic initial suc-
(roiirliHlnl tin 1'iicn R. ('Milium 4)
Guard Against
Typhus Spread
London. Jan. 21 (U.R) Health
Minister Ernest Brown today an
nounced the government had taken
special precautious against spread
to tho British Isles of typhus,
dread disease creeping through
eastern and southeastern Europe
and which has readied North
Africa.
The war office has consulted
Russian specialists in London on
means to check the spread of ty
phus to British and Brllisli-con
trolled arras.
Brown said that the ministry of
health had also taken precautions
against tho spread of typhoid fever
from enstern Europe and that lo
cal authorities would be able to ef
fect Immediate large scale lnnocu
Jatlon whenever advisable.