The Daily Alaska empire Newspaper, August 4, 1941, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, MONDAY, AUG. 4, 1941. VOL. LVIL, NO. 8793. MENPER ASOCIARED T — PRICE TEN CENTS JAPAN AIMS NEW BLOW AT U S, REDS ADMIT NAZIS CLOSE IN ON KIEY Modern Espionage Was af TRAP SPRUNG ON RUSSIANS AT SMOLENSK Ten Thousand Defenders Surrender During Leningrad Drive ; SOVIETTANK COLUMN | SMASHES PAST LINES | Drive on Moscow Becomes | Serious as Hitler Push- es Forward (By Associated Press) | German troops, lunging past thei bloody Zhitomir sector on the southern front, have advanced with- | in 50 miles of Kiev, the Russians | admitted today, while both sides told of new slaughters of thousands. Hitler's command also claimed new successes on the vital central front guarding Moscow. “The bulk | of the Soviet armed forces trapped east of Smolensk, is now destroyed | with the remainder facing dissolu- | tion,” a German communique said. | Nazi dispatches claimed 2,300 Rus- sians were killed, thousands taken prisoners and 71 tanks captured in an unstated northern area. This may have been the same action re- ported previously by the German High Command which said 10,000 Red Army troops have been taken (Continued on Page Eight) “lhe Its Best in Spy Ring'as IN SEATILE FBI Unearths Big Doings GUN BATTLE The vast geographical ramifications of the present ring have only been hinted. When details of the chase finally are disclosed, they will lead from Shanghai to Lima, Peru; to Rio de Janeiro and other cities in Brazil; to Lisbon and Madrid; to Genoa, Rome and Budapest; far north to Stockholm and Goteb and Bremen in Germany; not to United States. urg in Sweden; and to Hamburg mention numerous cities in the The inside story of the spy ring recently rounded up by the Federal Bureau of Investi- gation and indicted by a Fed- eral grand jury in New York reveals almost all that is known of modern espionage. In three aiticles, Jack Stinnett, Wash- ington columnist for the Em- pire, explains why. THREE DIE Hold-up Man Kills Three, | Wounds Seven in Af- | | temped Robbery |SPEAKEASY SCENE | OF MASS MURDER - {Walla Walla Youth Claims! Non-existent Accom- | | i | | | | SEATTLE, August 4—All Seattle | jspeakensles were ordered closed to- iday by new Police Chief Herbert Kimsey after three men were shot | to death and seven wounded in a | | ten-minute night club holdup pistol ‘bame early Sunday. | Kimsey, identified the gunman,; | himself critically wounded, as Ed- !ward Linton Yager, altas James | Green, 28, who left employment at the Bremerton Navy Yard last | month. He said Yager’s parents live in Walla Walla. Battle in Club The battle in the basement club at | 410 Second Avenue South, cost the lives of Monte Brown, 61, Vice-Pres- ident of the Seattle Journal of | Commerce; bartender Gum Galma- | | tos, 48, and John Linder, bystander. ! | Still in danger are Police Patrul-I | man Leon Brown, 42, who answered f a call for help at the club at 5 am.; | | Carl Johnson, 28, bystander, who re- | ceived a chest wound; Nick Galma- | | tos, brother of the slain bartender, | | who received a chest wound; John | ! Nordstrom, 60, janitor, shot in the | neck; Horace Smith, 43, hotel clerk, | | shot in the foot and Police Patrol- | | plice in Crime [} - Japanese warships were reported off Saigon, French Indo-China, States and Britain appeared near the breaking point as a result o ases ern Indo-China from France. A Japanese battleship squadron, led by the Huso and the Kirisima, 7 War battleships, is pictured during South Pacific maneuvers. Japanese Battleships . JAPANESE MOVES on the Move in Crisis as relations between Japan, the United f Japanese acquisition of bases in south- World CABINET HEADS I"MAY RULE ON FISHING AREAS Charge of MTanon inAl- | aska Is Refuted by . Court of Appeals WASHINGTON, Aug. 4—The United States Court of Appeals in the District of Columbia ruled today that the War and Interior Department may desig- nate certain Alaskan waters as fishing areas, Wilbur Dow and Jack Gil- bert, both of Seattle, sought the district court to enjoin Secre- NIPPONS STOP SHIP SERVICE T0 AMERICA jSix Hundred U. S. Nation- | als Now Stranded in ‘1 Island Empire 'ECONOMIC POLICY 15 T0 STRIKE NEXT | Military Forces Reported | landing on Siber- 1 i | ian Borders | (By Associated Press) Japan today took ominous new !steps in the Far East crisis with the suspension of all direct steam- ship service (o the United States, leaving about 600 American citizens stranded in the island empire. | Simultaneously the Japan Times- Advertiser, organ of the Tokyo For- eign Office, said tie Japanese gov- ernment will shortly invoke a eoms. .. ' plete economic mobilization to cope with the United States and British economic pressure. Prepare for Dash ‘While steamship departures were suddenly cancelled, two big Japan- ese liners in United States West Coast ports prepared for a speedy | dash home. { At San PFrancisco the $15,000,000 Tatuta Maru discharged the last of her $3,500,000 cargo of raw silk as emergency longshore crews, working around the clock, rushed aboard a thousand barrels of fuel ofl and bal- last cargo in preparation for leav- /ing the Pacific Coast bound for Japan. | A Japanese tanker previously sail- ed from San Francisco empty, the second to leave the U. 8. without cargo. | At Seattle the Heian Maru also «d By JACK STINNETT B vemmorsoiegrosng - v g oug Robert$ Alles WASHINGTON, Aug. 4—Not even | il AWk tary of the Interior Harold L. piled raw silk on the docks and was in pulp fiction have more melo- Ickes and Secretary of War posted to sail as soon as loaded. dramatic stories been written than that between the lines of a com- paratively dry legal document of INCREASED Henry L. Stimson from enforc- ing certain regulations promul- gated in - the action, The dismissed swit was taken # At sea the Asama Maru, which left Honolulu Friday with 140 Am- erican passengers and a $3,000,000 cargo of raw silk, maintained radio 33 persons and the naming of 37| more in which Chief G-Man John | Edgar Hoover has described asi the greatest spy ring in the his-| to the Court of Appeals where silence as a result of orders from Dow and Gilbert contended in | Tokyo. (Editor’'s Note: The Merry- separate suits that the Interior | Go-Round’s famous brass ring is Americans Stranded the little fellow looks on ruefully * from the side-lines. The Brandels i awarded to the little business- man, whom the New Deal vowed . to save, but who is getting al- most nowhere under the Defense program.) WASHINGTON—On three differ- ent and historic occasions Franklin Roosevelt has been elected President of the United States despite the vitriolic opposition of Big Business ! and on a Democratic platform which featured attacks on Big Business. Yet today, the Roosevelt Admin- istration and Big Business are walk- ing hand-in-hand as far as the De- fense program is concerned, while theory that this nation prospers most when business is broken into small parcels scattered over the country still exists — but only in theory. In practice, the big con- tractor, the big engineering firm, the big munitions company gets the gov- ernment job, almost every time. Thus the Roosevelt Administra- tion now finds itself in the unique position of having awarded one- third of all Army-Navy expenditures during the past year to exactly six firms: Bethlehem Steel, New York Shipbuilding, General Motors, du- Pont, Newport News Shipbuilding, and Curtiss-Wright. These six firms were given con- tracts totalling nearly ten billion dollars. | Some of this concentration of orders is necessary, because these are specialized firms. Much of it.| on the other hand, is unnecessary | but comes about because the big| companies have their close mendsi in the Army and Navy, with whom | they have done business for years. In the contracting field, for in- |Jones averages: industrials 128.17, stance, a half dozen big building (Continued on Page Four) PATRI10TI C—rhis 1daho miss—Ruth Blackburn—ex- presses her patriotism by wear- ing a bathing suit made of the new defense savings stamps. And she’s really stuck with it. STOCK QUOTATIONS NEW YORK, Aug. 4 — Closing quotation of Alaska Juneau mine stock today is 4%, American Can 88%, Anaconda 29, Bethlehem Steel 741/2, Commonwealth and South- ern %, Curtiss Wright 91/2, General Motors 39%, International Har- vester 55, Kennecott 38%, New York Central 13%, North Pacific 8, United States Steel 58 1/2, Pound $4.03%. DOW, JONES AVERAGES The following are today's Dow, rails 30.60, utilities 18.60. ————————— | BUY DEFENSE BONDS tory of the U. S. Some of the story cannot be written now. Only eight at this ariting are pleading guilty (seven sersons who pleaded guilty to oreliminary charges changed their dleas to “not guilty” when ar- aigned on the indictment). Eight 3uilty persons make a sizable spy «ing in anybody's country. sthers are presumed innocent.) Some of the story may never be told, for it is simple reasoning hat unless the Federal Bureau of investigation has to reveal every card in its hand te clinch the case, it will withhold anys newly devel- vped ' methods of counter-espion- age used here. But that doesn't mean that the inside story” of this ring isn't already there or that most of it cannot now be now be related. FANTASTIC PATTERN In the long 39-page indictment, with its listing of 65 overt, or spe- cific acts; in the statements of FBI Director Hoover and United States Attorney Harold M. Ken- nedy, who will prosecute the case in New York; and in the guilty pleas of the eight persoms, includ- ing, according to Hoover, some “key” conspirators, there is all that need be known to fit this case into that fantastic pattern of modern spying. By boat, plane and short wave radio, military secrets poured | through some or all of these cities and back through many of them came instructions and money for the agents. For the first time in this war, (Continued on Page Eighis (The | IN NORWAY i Mean Reign of Ter- ror for Norge OSLO, Augb 4. — The German , Commissioner in Norway has been | empowered to declare a state of emergency in Norway, under which he will deal with any alleged dis- turbances, maintain public order .and the security of public life. | There is no indication in official announcements whether the Reich's Commissioner Terboven intends to make use of his new powers soon. | Under his new authorization, Ger- | | man authorities in Norway will be enabled to conduct summary hear- ings of persons accused of creating disturbances. Sentences which then might be promptly executed will in- clude death or imprisonment and the confiscation of property of ac- cused persons. | Stockholm newspapers report a state of civil siege is already being put into effect in Norway. Berlin denied this, however, announcing that Terboven is empowered to de- cree it but no action has been taken. | Civil siege, the Nazis declared, ! would be more effective than a mili tary state in Norway. The siege would virtually affect all occupied territories, it was explained official- ly. The move is a precautionary legal step taken beeause of recent events brought about by the devel- ‘opment of the foreign political sit- uation, they said. New German Edict May Observers, The new demands of Japan on Indo-China, sulted in forces being stationed now within striking distance of Singa- pore and the Dutch East Indies and also puts Japan in a position for reporting conceritrations at Hainan, said the Japanese planned to move into French Indo-China and this is being done. which were granted, re- a blow at China’s Burma road supply line. Arrows indicate the objectives; shading, Japanese penetration of China. Suez (anal ~ AirRaided, ijs_UniIs Seventeen Persons Are Reported Killed-Alarm Sounded Three Areas (BY ASSOCIATED PRESS) Seventeen persons were killed and 50 are reported to have been injured in an Axis raid today on the Suez Canal. These are the heaviest casualties yet recorded there. Air raid alarms sounded in Cairo;, Alexandria and Port Said. —,———— OUT FROM FAIRBANKS Woodrow Conklin and Mary M. Conklin of Fairbanks are passen- gers south aboard the Alaska. SIEGE OF TOBRUK IS OVER NOW German am—i_lt;slian Forces Reported Withdraw- ing from Sections (By Associated Press) British Headquarters in Cairo to- day announced that it unof- (icially reported that German and Italian troops are withdrawing from advanced sitions they have oc- cupied during the - four months’ siege of the British garrison at To- bruk, Libla. ———o—— ON TRIP TO SEATTLE Mrs. Grace Wickersham is a pass- enger south on the Alaska for a brief trip in the states. is Dispatches from the Far East said | the departures of the Hikawa Maru, the Nitta Maru and other Japanese ships scheduled to sail to the United States have been postponed indef- initely. Passengers on board the Nitta Maru enroute from China ports to San Prancisco. were taken off in quarantine when the liner arrived in Kobe. Department violated law in regulations for application for fish trapping, that the War Department refuses to issue more than one permit for the | ercction of traps in any. given | site, and in cffect government | regulations create a monopoly on trap fishing in the Aleutian Peninsula and Western Alaska | On Siberian Border waters. | Shanghal dispatchies said that The government’s attorney main- Japanese troops are still arriving in ! tained there was no legal basis for T “m———— | the action and said the complaint !showed no act of the secretaries ! which would prevent the exercise BRITA'" MAY \ - of the common right for fishing within legal limits of the law. The Rumors of Expedition fo North Not Killed by law, he said, does not control the discretion which cabinet officers may exercise in the matter. . o ¥ Officials { Pt ;l::d ox Lgeacl:: hall to discover it LONDON, A ® 4. flood &b | Mhyoct Tugaa'| stit. ipkn: thati ha SR0IE uncoRRrntd bGE SRR unchallenged, persisted in London had awakened early, looked at the today that Britain will soon dis- |clock when the hands said twenty, patch an expeditionary force to open minutes to six, and confused the ;5 tne porthern European fromt, | minute and hour hands, which made ' pogj him believe it was already 8:30 a. m. Io::,};,?l n?;:;:‘g;“ today carried TR advance stories from Goteborg, MRS. REEDER SOUTH Sweden, that large British naval {forces are already in the Arctic. Mrs. Bessie Reeder left for Seattle Minister of Supply Lord Beayer- aboard the Alaska whete she will| prook’s Daily - Express carried a |spend sometime recuperating h-omi headline saying, “All the Axis is ask- |an illness. ing where we are going to invade.” Mayorr Goes : 5 To Work on J Early Shift i Mayor Harry I. Lucas is keeping early hours at the office these sun-| | shiny days. The mayor startled himself this| | morning, however, when he ar-