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THE DAILY ALASKA EMPIRE “ALL THE. NEWS ALL THE TIME” VOL. LVIL, NO. 8787. JUNEAU, ALASKA, MONDAY, JULY 28, 1941. Ml:.MBER ASSOCIATED PRI‘SS PRICE TEN CENTS 3., JAPAN WATCH EACH 01 HER BLITZKRIEG ON RUSSIA IS “WASH-OUT" NAZI UNITS DIG IN FOR LONG SEIGE Soviet Forces Take lnma- five as Hitler Finds New Verdun RED FRONT SOLID FROM SEA T0 SEA Russ Air Fleef Forces Raid- | ing Germans Back fo Home Bases (By Associated Press) The Battle of Beauty | 4 | Russia declared officially today that Hitler's blitzkrieg on the Soviet Republic has been a “wash-out,” with the conflict now settled down to an old fashioned siege. The Red Army reported the destruction of two German divisions of about 30,000 men over the weekend. A Red Army bulletin indicated that Soviet troops are taking the initiative in several sectors on the 2,000-mile front, The Germans are declared to have run into “another Verdun.” Russians Active | ‘While previous Russ communiques mentioned only stubborn battles or fierce fighting, today's account spoke of “the fighting actions of our troops,” throughout the night at the Nevel and Smolensk sectors on the Central Front, and at Zhitomir in the Ukraine, on the Southern Front. Countering Russian assertions, (Continued on Page Eight) WASHINGTON — On President Roosevelt’s desk is a stack of con- fidential naval reports from the Far East which show that there are two big squeeze-plays behind the squad- ron of Japanees transports and war- ships which silently dropped -m:hor { off south Indo-China. | As far as the United States is concerned, this may be the most important move of the entire war. For here is the double squeeze-play: | 1. The Japanese want to keep the United States so worried over the Far East that no more ships will be | sent to protect British shipping in | the Atlantic, or to take the Azores | and police Dakar. 2. Japan also will force the Brit- ish to keep part of their fleet around ; Singapore, thus preventing heavy | | | | British concentrations in the Near | East. More than two years ago the| Washington Merry - Go - Round re- | ported the concern of the Navy De- | partment in case the fleet had to be spread out over two oceans at once. It now looks as if this is exactly what the Navy now faces. HITLER'S TIME TABLE All of this Japanese maneuvering, according to the reports on Roose- ‘ velt’s desk, is a definite part of the | ‘ Hitler time-table. He has planned. first of all, to mop up the Red Army | before cold weather descends on the | windswept plains of Russia. After that, and during the equable | winter weather of the tropics, he will concentrate on the Mediterranean, the Near East, Suez, and later on India. This was one reason the Nazis paid no attention to the British ad- vance into Syria. They figured they could wait and later put the squeeze on Syria from two sides. — e (Continued - on Page Four) Beauties of Venice, Cal., resent MacARTHUR GIVEN HIGH ARMY POST f i Recalled fo ServicefoHead All-American Forces in Philippines IS GIVEN TITLE OF i the monopoly Atlantic City, N. J., apparently has on the beauty business and stage a demonstration to show test was w they feel. contest to select Miss America of National Wo communiques BEAUTY L VRN Venice says America’s first bathing beauty con- ged there in 1912, This year Venice plans to stage its own ti{ense. There have been from Atlantic City. ~ Jap Marines Force Homes OfRefugees : Jewish Colony in Shangha: Searched for Killers of Officers SHANGHAI, July 28—Japanese marines today reported !auure in two searches for persons respon- sible for the weekend shootings that | « slightly. The shooting followed the Barbara Wilson, 18-year-old byun- ette of Maywood, Calif., was se- lected “Miss California” beauty contest held at Venice, Calif. A rival “Miss California” | was to be selected at another con- | test later and was to be the state’s representative at the “Miss Am- erica” contest to be held in At- lantic City. . the International Settlement. in a, brought death to a Japanese Navy warrant officer and precipitated a 12-hour reign of terror over Jew- ish and other European refugees and hundreds of Chinese civilians.! The marines threw a cordon around the Siccawei area just out- side the French concession in -a i night effort to apprehend the group of Chinese who fired at three Jap- anese Army sentries, wounding one slaying of a warrant officer Sat- urday night in the Hongkew sector of the Japanese occupied part of After an all night house tohouse | search, Japanese marines were re- ;. ported to have forced their way| into Jewish refugee camps. Jewish girls later exhibited bruised shins, saying the marines kicked them. FORMER NEWSMAN DIES OF ATTACK IN SANITORIUM WASHINGTON, July 28—Edward B. McLean, 55, lavi§h spehding in- timate of the late President Hard- ing and one-time publisher of the There Wwere fewer cases of smallpox in the United States in 1940 than in any previous year on_ record. Washington Post, died of a- heart | attack yesterday in a ‘private unl- torium where he was- a patient since a Baltimore court'found him Forest Fire Sweeps Washiglon Timber LIEUTENANT GENERAL | 'Former Chief of Staff and, World War Hero Is As- - signed fo Big Position | WASHINGTON, July 28. — The War Department announces - that Gen. Douglas ‘MacArthur has been ! recalled to the service fo head the | All-American forces in the Philip- | pines, about 75,000 men. His tiuei will be Lieutenant General. Gen. MacArthur is a former Chief | ’ of ‘Army Staff and a World War | hero. Since 1935 he has direct,ed| the training of the Filipinos, pre-, paring them for independence, and ! has held the rank of Field Marshal. | i He has been recalled to the United | States Army service as temporary - Lieutenant General and ranks Major General George Grunert, Command- | er of the Army’s Philippine Depart- ment. President Roosevelt's order, issued | last Saturady, calling into the armed service of the United States all or- ganized military forces of the Phil- | ippine Government, created a new command of the United States Army forces in the Far East. MACARTHUR NOMINATED 1 WASHINGTON, July 28. — Presi- "dent Roosevelt today nominated Douglas MacArthur as Lieutenant General in command of the United States and Commonwealth forces in . the Philippines. The nomination of the tormer 'hief of the Army Staff went to the Senate as Senator Claude Pepper of Florida told the newsmen that President Roosevelt could have made 0 better selection for commander or the general forces in this tmuble- some P‘ar Eastern area | WARJITTERS INCREASE IN PHILIPPINES General MacArthur Takes - Over 75,000 Troops in Islands MANILA, P, I, July 28—War jit- ters increased noticeably in the Philippine - Islands today as the Japanese “new order” consolidates its gains in French Indo-China, and the United States is preparing for any eventuality with the uni- fied troops in the Philippines un- der the command of General Doug- las A. MacArthur, called from tirement for the tal * present Orienta | wickard's emergency. The expression most frequently heard from Americans and Fili- pinos who apparently feel that war is not far distant is, “Where do you figure you can find th~ best spots to avoid air raids?” Gen. MacArthur conferred today with the staff at Fort Santiagoand later with Commonwealth President Manuel Quezon. The General will have 75,000 troops under his com- | mand. ——— e A new Chinese-language daily, the Sun Yat-sen Times, has been jmentally incompetent in 1933. started in Manila, J perity Row. Five hundred men were recruited to fight the biggest of 300 forest fires in the State of Washington, which |wnp¢m8.mmmln’thesnnhn-hhwrul-t. On his hiliside fighters pour water on. this blaze in an effort to bring it under control, TMmesnmleJflMlmnflnr. At a number of Salesman No. 1 Aids befense EXTENSION SELECTIVE ACTOKAYED Senate Commitiee Ap-| proves Proposed Legis- | lation by Vote of 910 1 ‘WASHINGTON, July 28 — The Senate Military Affairs Commit- | tee, Jate last Saturday, approved by a vote of 9 to 1, after a four-| { heur session, the resolution amencd- ing the Selective Service Act to | retain selectees, National Guards- men and reserves in the Army be- iyond one year. Approval was given by the com-!, | mittee on the grounds that na- | tional interest would be Imperiled tif the period would be limited to |one year. ! ‘The committee declined however.‘ to accept .the War De, tmem.ss Thomas J. Watson, president of International Business Machines Cor- suzgesnzn that. e m:.:urc poration and known in financial circles as America’s No. 1 salesman, is shown laying the cornerstone of a new facfory at Endimtt, N. Y., whieh will increase by matve than 80 per cent the company's manufacturing wemergency eapacity for defense. At extreme right is Charl Kirk, vice presi- | Senator Lister Hill of Alabama dent in charge of manufacturing. \s-m the matter would call into ef- “|fect a long list of emergency pow- Ito invoke. Chairman Robert R. Reynolds of Butfer-and-EggMenAre | | Now Moving Right Back Again fo Prosperify Row (anada Bans ~ Hog Exports OTTAWA, July 28.—It is unsf- olution. —_—— e —— There are such trivial things for instance as a/ prospective shortage of milking machines because of priorities in! rubber and aliminum; sectional farm labor shortages; dislocations of markets through shifting popu- Jations to new defense and trdining centers. Domlnlon of Canada to England. But. two tmings stand out: (1) | domestic consumption s increas- Carol and Lupescu Sal for Vera Cruz . By JACK STINNETT comparatively WASHINGTON, July 28 As Secretary of Agriculture Claude R. “more food for defense” program moves into its fourth month, some interesting things arz becoming apparent. One of them is that the fellow who last year bought himself a little chicken ranch “just to get away from it all” and the farmet who has been increasing his cattle herd of late, for lack of something better to do, are finding them- selves riding the coattails of big defense business into an unex- pected boom. In other words, the butter-and- egg men are moving back to Pros- place a ban on all exports of hogs to the United States so more pori ing much more rapidly than Agri- culture Departments experts esti- mated four months ago—and (2) ! it is becoming apparent now that export demands, under the lend- lease program, for certain essential 'Carol of Rumania and his woman processed milk and egg products, friend, Mme. Eleana Lupescu have {may be well above the original salled for Vera Cruz, Mexico, and e . they expect to spend the next two! (Omfln\ld on page 8ix) lmonl.hs there and in Mexico City. ln-‘ ‘clude & declaration for national| ‘ers that the legislators do not wish, North Carolina was the only one | recorded as voting against the res- ficlally reported that Canada wil!| Industry | products may be sent from the' HAVANA, July 28.—Former King BATILE ON - JAPANNOW GRIM ONE Tokyo Newspapers Caustic Over Economic Meas- ures AgainstNippon 'DUTCH INDIES NOW ENTER AS FREEZER Appeal Broadcast for Lel- ting Down of Bars . Against Nation (By ASSOCIATED PRESS) There apparently is a calm, be- fore a serious upflaring, in the United States-Japanese situation today. Neither side is tipping any | further movements. Japan is watch- ing the United States and vice versa. The United States, together with Great Britain, is watching developments in the French Indo- China. Action however, is indicat- ed, but beneath the surface, The Foreign Office controlled Japanese newspaper Times-Adver- tiser in Tokyo today described the | United States as & “hostile” leader | in the grim economic battle against Japan e Japanese newspapers gener- rally employed sharper tones in the | attack on Washington's economic ‘ measures. More Freezing Informed sources declare that The Netherlands East Indies is ‘Ireezlng Japanese assets following [the example of the United States nnd the newspapers declared this might produce even more far- | reaching consequences than the American program. (Continued on Page Eight: HUGETAX ~ MEASURE APPROVED |House Ways—and Means Committee Acis-Appeal | Made fo Roosevelt WASHINGTON, July 28- — The House Ways and Means Commit- tee has formally recommended enactment ‘of a $3,520,200,000 tax bill estimated to propose levies in effort to meet 60 percent of the anticipated expenditures for the 1942 fiscal year and to borrow the | balance, | Ten Republican committeemen | issued a statement that there is ino alternative except to support the }geneul objective of the measure but they criticised the non-défense spending policy and called on | President Roosevelt to take per- sonal charge of the responsibility m an effort to effect economies. ,Thc Committee declared there are 'too many nonessential boards now serving at Government expense and ,Which are absolutely not needed. Here is a breakdown on the ad- ditional yields which congressional | experts expect from the new tax bill: ’ Individual income surtaxes—8$l,- }152.000.0@- Covrpontla: income taxes—$1,322,« New “or higher excess levies—$902, mzher estate and gt taxes— $151,900,000. Tax on broadcasting (new)—$4,= 500,000. | Tax on billboards (new)—$7%000,~ 000.