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MEDFORD
Pull Associated Plan
United Prooa
Thirty seventh Year.
MEDFORD, OREGON, SUNDAY, JUNE 28, 1942.
NO. 84.
Off
V
an
News Behind
The News
By Paul Mallon
Wa-hlneton. June 27 The
war cost is already $208,000,-
000. 000 appropriated by con
gress so far. The common esti
mate here is that It will run to
$300,000,000,000, although this
1. hiwd on Dure supposition
tnai me con
flict will end
r- I in 1943.
I JLt U It ia difficult
,to explain tne
size of $208,
000,000,000 be
cause auch an
amount has
never before
been used by
men In one
lump sum.
PerhaDS the
Paul Mallon
Obest way to express its vastness
ia that it represents about two
years of labor for every wage
earner in this country.
. We had 43,047,000 earning
units last year, made up of
32,097,000 families and 10,950,
000 single employed persons.
Their average earnings were
$2,303. The share of each one
in the war appropriations made
by congress so far would be
more than twice as much, rough
ly $4,800.
What this will mean to the
lives of citizens ia beginning to
be apparent as the size of the
problem becomes clearer. Some
few congressmen, debating the
historic, unprecedented $42,000,
000,000 army appropriation bill
the other day suggested it might
mean bankruptcy if expendi
tures kept piling up, but they
apparently had not stopped to
O figure the real probabilities,
o o o
OBVIOUSLY we ara going to
have a federal debt of at
least $200,000,000,000 at the
end of this war, five times the
size of the feared debt limit
reached in nine yeara of new
deal spending before we entered
upon war preparations.
That will be a permanent
obligation upon which the treas
ury will have to pay annual
Interest. The average Interest
rate now is 2.35 per cent and
before the war the average was
2.4 per cent. (During the first
world war it was 4.2 per cent.)
The treasury, while financing
these new vast sums, is at the
same time hammering the in
terest rate down. Some expect
to get it down to around 2 per
cent before the war is over.
If they do, and the entire war
debt is no more than $200,000,-
O 000.000, the treasury will have
to tax the people $4,000,000,000
a year after this war merely
to pay interest charges fixed
charges, not including any ac
tual cost of government opera
tion.
If government costs run
around $9,000,000,000 as they
have been running, the treasury
will have to raise $13,000,000,
000 a year from the people to
keep going.
o o o
THERE are two ways to handle
that. One is by inflation,
which is a government's way of
going into bankruptcy.
Cheapening the value of dol
lars reduces the cost of its debts
and accomplishes a washout of
(Continued on Pgo oovonl
War Bulletins
fiunda. Jun. 28
UP) Tha admiralty reported
today that the 1.719 Ion liner
Tongeriro dntroyed a Jap
anese submarine which it en
countered en route home to
Britain with a cargo of Aus
tralian meat and wool.
Allied Headquarters, Aus
tralia. Sunday. June 21 (IP)
Allied bombers made light
raids last night oa enemy
installations in Salamua and
Lae, in New Guinea, and Tu
lagi. in the Solomon islands.
General MacArthur's head
quarters announced today.
London. June 27 HP) Fif
teen Consolidated B-24 bomb
ers from Egyptian airfields
participated ia the United
Staiee army air force raid
which struck at the Rumanian
ail center of Ploesti two
weeks ago, it waa disclosed ia
London today.
F.R.
PROMISE STROKE
TO SOVIET
Victory Outlook Brightens
Early Action Hinted
Exact Plans Secret.
Washington, June 27 (JP)
President Roosevelt and Prime
Minister Churchill today jointly
promised a stroke at Germany
which will divert nazi troops
from the Russian front and said
the outlook for victory had Im
proved in the last six months.
With Churchill safely ba;k in
London, they issued a statement
which in addition called trans
portation the present "major
problem" of the United Nations.
But it noted that while the U-
boat toll in the Atlantic was
heavy, ship production was in
creasing and said new steps
against the submarines were
planned by the British and Am
erican navies.
The statement made no spe
cific mention of a 'second
front," but nevertheless includ
ed a paragraph which provoked
an intensive whirl of specula
tion on that subject-
"While exact plans, for obvi
ous reasons, cannot be disclos
ed." the statement said, "It can
be said that the coming opera
tions which were discussed in
detail at our Washington confer
ences, between ourselves and
our resnectlve military advisors,
will divert German strength
from the attack on Russia."
Many observers concluded
that the millions of American
and English troops mobilized in
the British Isles were to be
thrown into an Invasion of the
nazi-held continent. Since the
project had reached the stage of
discussion in detail, some sug
gested that the day of attack
might be very near.
Second Front Hinted
Others cautioned, however,
against Jumping at conclusions
and advanced the theory that
the "coming operations," might
be confined to intensified mass
air attacks upon German cities
such as have spread havoc In
Rostock. Cologne and Bremen.
Nevertheless, it was recalled
that the White House said when
Churchill arrived that it would
be justifiable to speculate that
the second front would be dis
cussed. The statement, which was en
thusiastically applauded by
most members of Congress,
went also into numerous other
phases of the war situation. The
conferences between the two
war leaders, it said, covered
"very fully all the major prob
lems" of the conflict, took "full
cognizance of our disadvantages
as well as our advantages," and
did not "underrate" the task
ahead.
"We have conducted our con
ferences with the full knowl
edge of the power and resource
fulness of our enemies," it said.
A survey of the munitions pro
duction situation, it said, gave
"on the whole an optimistic pic
ture." Monthly output has not
yet reached its planned maxi
mum rate "but Is fast approach
ing it on schedule."
Never before, the war leaders
added, have the United Nations
"been in such hearty and de
tailed agreement on plans for
winning the war as they are to
day." With thli they combined an
assertion that they "recognize
and applaude the Russian resist
ance to the main attack being
made by Germany and we re
joice in the magnificent resist
ance of tha Chinese army."
They and their advisors, they
said, went thoroughly into the
question of methods of relieving
China and striking at the Jap
anese. OSC ALUMNI MANAGER
Corvallis, June 27 (JP) The
Oregon State College Alumni
association's executive board to
day selected Eunice Courtright,
Alumni Magazine editor, as act
ing association manager.
SHELL SOUVENIRS $10
Astoria, June 27 4JP) Shell
fragment from the Japanese
submarine bombardment of the
Oregon coast near here Sunday
night are selling at $10.
Ace Nazi
Seven Pattens Survive Lexington
Home in Portland, Ore., on furlough, thl seven Patten brothers,
U.S.S. Lexington in the Coral
Oregon, now a museum piece at
No Sign of Break In Crimea
Defenses Moscow Re
port Brighter.
Moscow, Sunday, June 28
(IP) The valiant defenders of
Sevastopol smashed attack after
attack by storming nazi forces
which tried without success to
advance all day yesterday in bit
ter fighting over stacks of their
axis dead, the Russians reported
early today.
The siege of the Crimean port
roared Into its 24th day with no
indication of a German break
into the vast defenses of Sevas
topol.
On the Kharkov front It was
the same story, military dispat
ches said.
There Marshal Tlmoshenko's
forces were credited with halt
ing the eight-day-old German
drive, and in one sector threw
the Germans back in slashing
tank counter-attacks.
The Germans were unable to
make any headway whatever,
the front-line account said, de
spite the extravagent use of
massed air attacks In an effort
to enlarge their gains.
These accounts were pointed
up by the midnight communique,
which told of continued repulse
of the Germans before Sevasto
pol and added there had been
no other changes yesterday any
where on the long front.
Of the battle for Sevastopol
it said: "Our troops repelled
several enemy attack! on the
Sevastopol sector and inflicted
heavy losses on the enemy."
The Soviet air ofrce was cred
ited with inflicting "devastat
ing blows upon the Germans on
the Kharkov front. In two days,
the communique said, 23 nazi
planes were shot down, 48 tanks
and 117 trucks destroyed and
300 Germans killed by Russian
airmen.
(The British radio, relaying
Moscow accounts, said that in a
violent flare-up of aerial war
fare all up and down the front
Soviet pilots were "breaking up
raid after raid upon Red army
positions.
(The BBC. heard In New York
by CBS, quoted one correspon
dent as saying that "for the mo
ment at least It looks as if fur
ther developments in tha fight
ing may depend on which side
can get air superiority first. )
Portland. Ore., June 27 UP)
All Portland produce prices
steady, unchanged.
Saboteurs, Off U-Boats,
Sea, were with their lather (extreme left), on the old battleship
rortiana.
20-CT.BOISIGHT
USED IN RAID ON
JAPANESE CITIES
Feared Modern Secret Would
Fall in Hands of Enemy
Heroes Decorated.
Washington, June 27 (JP)
An improvised, 20-cent bomb
sight was used by the American
fliers who blasted Japanese cit
ies in April, It was disclosed to
day when 23 of those who par
ticipated In the famous raid
were given distinguished flying
crosses.
Lieut. Gen. Henry H- Arnold,
commanding general of the ar
my air forces, presented the
medals in ceremonies at Boiling
Field while proud wives of sev
eral of the fliers looked on.
Brig. General James H. Doolit
tie, who led the raid and was
awarded the congressional
medal of honor by President
Roosevelt May 18 attended.
- Those decorated today and
five others unable to attend be
cause of injuries or illness not
connected with the raid have
Jut returned to the United
States for reassignment. The
other participants are still in
combat zones. All are to re
ceive decorations eventually.
While the Japanese failed to
onng down any of the planes,
the citations noted that each re
cipient of the flying cross "vol
unteered for the mission, know
ing full well that the chances
for survival were extremely re
mote and executed his part in
It with great skill and daring.'
It was the belief that some
planes must inevitably fall into
Japanese hands, that led to re
moval of the secret Norden
bomb-sight from each plane
Anyway, the war department
explained, the Norden sight was
not necessary for a successful
low altitude attack such as was
carried out. The improvised
bombslght, costing only 20 cents
to make, was designed by Major
Charles R. Greening of Tacoma,
Wash., armament officer of the
squadron.
Greening piloted the plane
which probably met the heavl
est atack.
Salmon Packers Indicted
Portland, June 27 Several
corporations, Individuals and a
labor union engaged in salmon
fishing and packing were under
Indictment here today on
charges of Interstate Commerce
law violations. Deputy U. S, At
torney John H. Daly said.
who survived the sinking of the
BRITISH AT FULL
E
Tank Battle Imminent U.
S. Bombers In Action
Nazis Near Mat run.
Cairo, June 27 (JP) The
British eight army stood rein
forced at full strength tonight
13 miles west of Matruh against
a powerful axis striking force
spearheaded by three mechan
ized divisions aiming at Alexan
dria, 163 miles away, and the
Suez canal beyond.
The allied desert army was In
position on a chosen line 115
miles inside Egypt, and military
men said that when the lmmi
nently expected German on
slaught comes, the veterans will
defend Egypt inch by inch.
With the enemy within 130
miles of the lush Nile valley
where 88 per cent of the Egypt
ians live, there was no doubt the
situation was serious but the
eighth army smarting from its
bad defeat In Libya was de
scribed as determined that the
enemy shall not pass.
Marshal Erwln Rommel, the
axis commander, has thrown
everything he has Into his
Egyptian Invasion, military
men said, but before he can
reach the Nile he must smash
through the 40-mile desert
stretch between the Mediterra
nean and the great Qattara de
pression a great inland sea of
sand through which a modern
army can not move.
Rommel had advanced 19
miles overnight but he definite
ly had been slowed.
Throughout the day and night,
the allied air force which In
cludes sofe of the United States
army's mightly B-24 bombers,
fought against the aproachlng
enemy host.
Axis and other reports reach
ing Cairo Indicated that the bat
tle of mechanized land forces
was Imminent, if not actually
underway.
"By day and night, bomber
and fighter-bomber formations
of the allied air force In the bat
tle area have been turned
against the enemy ground for
ces and grounded air forces in
the area west of Matruh," said
tonight's communique.
SUGAR CHIEF OUITS
Portland, June 27 (IP) W. S.
Dirker, Portland, will retire as
state sugar rationing executive
July 1. Oregon OPA Director
Richard G. Montgomery an
nounced today.
CIVILIAN AUTOS1
URGED TO GARRY
MORE PASSENGERS
Camp White Workers Asked
To Team Up More To Con
serve Tires.
A statement, signed by Major
Theron W. Bean, army engineers
was issued yesterday to all can
tonment workers on the Camp
George A. White here, urging
there be more teaming up of
passengers in workers' autos to
conserve rubber."
The notice notes "a number
of cars are still being driven to
and from this project with only
one or two passengers. . . . ."
It reads:
"To all construction workers
of this project.
This ofice is Informed by the
Adjutant General, Washington,
D. C, that neither new or re
treaded automobiles tires will
be available in sufficient quan
titles to permit the continued
operation of all automobiles now
being used for transportation of
civilian personnel to and from
government projects.
A number of cars are still be
ing driven to and from this pro
ject with only one or two pas
sengers and it is believed that
there can be mora teaming up
of passengers to conserve rubber,
Every trip saved prolongs the
nation's rubber supply. In order
to insure that the - tires now
mounted on your automobiles
are used to the maximum ad'
vantage you are urged to cooper
ate even more than you have in
the past in the Joint use of auto
mobile transportation and in
carrying out other conservative
measures being publicized, such
as reduced speed, alternating
the use of tires on different
wheels, and limiting the usa of
your automobiles to necessary
and essential travel.
(Signed) Theron W. Bean
Major, Corps of Engineers
Area Engineer.
Atlanta, Juna 27 (IP) This
war s first major expeditionary
force of United States Marines
landed at a South Pacific "Jump
ing off place," apparently
equipped to spearhead any
United Nations offensive In that
theater of war.
The far-off arrival of "trans
ports swarming with Marines'
was revealed here today by
Major Meigs O. Frost, southern
public relations chief for the
Marine corps.
Accompanying tha announce
ment that the convoy carried
the Marines biggest overseas
contingent of the war was the
first story to be released as
written by one of the Marines'
own war correspondents assign
ed to combat forces.
EAST COAST HIT
BY GAS SHORTAGE
New York, June 27 (JP)
Motorists on the eastern sea
board today faced another "gas
less" week-end, with 80 per cent
of the dealers completely out of
fuel and confronted with a situ
ation described by Sol A. Her-
zog, general counsel of the east
ern states retail gasoline dealers
conference, as "simply hellish.'
A region within 40 to 00
miles of tha coastline from
Maine to Florida an area with
S9.000 dealer was hardest hit,
Herzog said.
He said long queues of mot
orists had lined up at empty
pumps early this morning, and
that tha situation worsened
nourw
Caught by F.B.I.
Interpreting
The War News
By Kirk. L. Simpson
(Wide World War Analyst)
Though Hitler's summer of
fensive in the east apparently
has not yet been loosed, prelim
inary axis thrusts In Egypt and
the Ukraine already have pro
duced a twin crisis for his Brit
ish and Russian opponents.
Both Jaws of a vast axis pincer
movement eastward have gnaw
ed their way forward danger
ously, at an uncounted cost in
life and battle wreckage.
In Egypt, battered British im
perials with the bitter taste of
defeat in their mouths have
mustered for a last-ditch stand
perilously close to their vital
Alexandria naval base. In
southern Russia an ominous
dent has been made in Marshal
Tlmoshenko's communic a 1 1 o n
services east of Kharkov.
Yet In Washington a confident
note is sounded. And in the
Joint Roosevelt-Churchill state
ment there Is tha definite prom
ise of coming operations which
will divert German strength
from the attack on Russia. .
Cheering, too, ia the resump
tion of British air pounding at
Germany and reliable reports
that United States air units are
laying the groundwork for
American participation in such
mass raids.
The creation of an American
zone of operations in Europe
suggests that joint Anglo-Ameri
can second-front moves ara a
near, not remote, possibility
Naturally no hint of their nature
of scope ia available beyond the
certainty that American army
air power will soon join the
British against German targets.
Turning westward to appraise
tha war picture across tha Paci
fic at this time of crisis in Eur
ope and the middle east, reports
from the Chinese-Japanese front
are a little more encouraging,
There are some indications that
the Japanese invaders ara losing
momentum in China and still
far from a knock-out blow at
foes who defied them single-
handed for nearly five yeara.
American air power is begin
ning to even tha odds somewhat
for the Chinese.
The Japanese campaign else
where in tha Pacific haa been
In a lull since the Midway bat
tie. From Australia allied air
power is ranging far to batter
persistently at Nipponese ad
vance bases, keeping the enemy
largely on the defensive
Whether the Japanese toehold
in the Aleutian islands can be
exploited remains to be seen.
Perhaps the most surprising
development of the oriental war
sector, however. Is a delayed
Moscow assertion that it was
Japanese submarine, not an
American submarine as Tokyo
asserted, which sank a Russian
ship in Japanese waters. In light
of tha unstable Tokyo-Moscow
peace pact, there is a challeng
Ing quality about the timing as
well as tha phrasing of that Rus
sian charge which gives it great
potential significance.
I
By The Associated Press
The Hitler-ordered all-out sub
marine offensive against United
Nations shipping in the Atlantic
entered its second day today
(Sat) with the reported toll of
western Atlantic sinkings since
Pearl Harbor standing at 313.
Indications that Japanese
submarines were on the prowl In
the Pacific while the nazi U-boats
feed on Atlantte victims became
evident yesterday when surviv
ors of two allied merchantmen
reached an Australian port to
tell of the torpedoing of their
vessels.
Escape Foiled
Rsthdrum, County Wlcklow,
Eire, Juna 27 (IP) Canadian
and English airmen interned at
the Curragh camp attempted a
mass escape soma time ago. It
was disclosed today, but were
frustrated in a fight with their
guards after their makeshift
ladders broke as they were scal
ing a barbed wire fence, -
8 HELD IN PLOT
TO WRECK VITAL
DEFENSE PLANTS
Explosives Seized Land
Off Subs on Lond Island
and Florida, June 13th.
New York. June 27 (JPt
German submarines have boldly
ianaea nigniy-skilled saboteurs
on American shores with full
equipment for wrecking war
factories, J. Edgar Hoover, chief
of the FBI announced tonight.
tign. men nave been cauahL
Hoover said, and their explosives
seized.
Two groups of four men each
were caught, one on Lone? Is.
land east of New York Cltv
and the other in Florida.
Four men were nut ashore nn
Long Island June 13 and the
others near Jacksonville, ria,
three-days later. Hoover aald.
The four who reached Ana-
gansett Beach, Long Island,
came in a rubber boat from a
submarine about 500 yards off.
shore. Hoover said. They chang
ed into American civilian cloth
et on tha beach, and buried loada
of TNT with time-clock fuses la
the sand. Then they went sep
arate ways to New York City.
.The others carried out a sim
ilar procedure on a beach ntat
Jacksonville, ha declared.
Hoover described tha . eight
agents as "men highly-trained la
sabotage at a Berlin cabotaM
school."
Former Resident Held
The names of the agent aa
given out by the FBI were:
Group 1 (landed on Long Is
land) George John Dasch, 33,
group leader; Ernest Peter Bur
ger, 38, who in 1931 was
private in the Michigan National
Guard; Helnrich Harm Helnk
39, and Robert Qulrin, 34.
Group 2 (landed in Florida)-
Edward John Krrllng, 83, group
leader; Herbert Haupt, 22; Wer
ner Thlel, 39, and Herman Neu
bauer, 32. ,
Hoover said that some of tha
agents were imprisoned in New
York and others in Chicago.
He said that the disposition
of their cases would be left to
Attorney General Biddle ia
Washington.
There wero no speclfio
charge placed against the eight
prisoners, according to Hoover.
Hoover released picture of
the men and of tha equipment
and explosives they brought
ashore. One nazi uniform cap
was also included in tha evidence
collected by the FBI.
Hoover said the men had sup
plies of explosive for a two
year sabotage campaign against
American war objective, includ
ing TNT, fuse and time clock
for delayed action bombs, and
small black bombs camouflaged
to look like large piece of coal.
Under questioning by FBI
men, Hoover said, tha agents
listed war plants, waterways,
railroads and bridge which
were marked for destruction.
Objectives
These Included tha Alumin
um Corporation of America's
plants at Alcoa, Tenn., Masse na.
N. Y., and East St. Louis.; tha
Cryolite plant at Philadelphia,
manufacturing light metals; tha
Chesapeake and Ohio railroad
In Industrial areas; Hell Gate
bridge. New York City, the
Pennsylvania railroad terminal
at Newark, N. J, and all bridge
on which transportation waa
carried in the New York area.
Other objective. Hoover said,
were in tha inland waterways
system, a aerie of canal locks
on tha Ohio River near Cincin
nati, the New York City water
supply system, conduit In West
chester county, hydroelectrki
plants at Niagara Fall, and
railroad track on tha famous
Horseshoe curve near Altoona,
Pa.
ftasors Get Respite
Washington, Juna 27 V
Tha War Production Board to
day postponed from Juna 23 to
July 31, tha effective data of it
limitation order restricting pro
duction of razor and blade.
r