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THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, MONDAY, JUNE 29, 1942. VOL. .LIX.. NO. 9073. PRICE TEN CENTS MEMBER ASSOCIATED PRESS BRITISH STRONGHOLD CAPTURED BY AXIS Nazi Spy Ring Nabbed On Eastern Coast Eight German_SEBoIage Experts, Landed by Sub InU.S.,C | NEW YORK, June 29—J. Edgar ¢ Hoover announces that the FBI has A - captured eight German sabotage ex- | ' perts who were landed from sub-| marines on the American coast with money and explosives for a two year campaign of terror against American war industries. The saboteurs are all former r dents of the United States, several are former German-American Bundsmen, and two are American citizens. Four were landed on Long Island on June 13 and the others near Jacksonville, Florida, three nights later. More Arrests Promised The seizure of “several contacts associated” with the band of Nazi spy and saboteurs who landed from U-boats on the East Coast, is an- nounced by the FBI who promised more arrests within a few days, al- so new cevelopments in the start- ling case. ! The eight German agents, sub- marine borne to Long Island and Florida beaches, had explosives in- tended to wreck vital American in- dustries. Brought Pay-Off Money Included in the discovery has been an additional cache of $20,000, increasing the tofal pay-off in thon- ey brought by the saboteurs ‘o $120,000.. | Neither the number nor the names of the persons arrested as aides to the invading saboteurs is disclosed by Earl Connelley, As-| sistant FBI Director. Two Year Campaign It is officially known that the agents captured were bent on a two| year campaign of destrucnoni (éc;ltin;);d o‘n’Psge Six) 1 'i'he Washington| Merry- (ig-’Round By DREW PEARSON— and ROBERT S. ALLEN WASHINGTON — Inside reacticn; of Administration advisers to the; political tribulations of Winston Churchill is mixed. Roughly there are two groups: (1) the inner| White House circle which knows Churchill well and has become a greater rooter for him politically; and (2) some of the Army and Navy officials who are inclined to think he is a little too debonair to be a hard-boiled, thorough-going military executive. All, however, pay great tribute' to his morale-building genius and' the great service he did England! in pulling it out of the slough im- mediately after the Chamberlain' fiasco. < i His administration critics, how- ever—and they are very sympathetic critics—point out that morale in England is now tops, and what she needs is a ruthless weeding out of | Inefficiency, and a tough executive.| Most interesting sidelight on the current Churchill debates in the House of Commons is the reaction| on the Inner Circle here. Some of them view the problem of keep-| ing Churchill in office almost as “the second fromt.” come to know and like Churchill s0 well that perhaps unconsciously they regard each problem in the| light of “what effect will this have on Churchill politically?” Some U. 8. strategists in the Army and Navy were quite frank in their criticism of Churchill’s, House of Commons speech after his last visit here, and felt that he had made political capital out of Roosevelt’s promise of tanks and! planes for Libya. | Whatever Churchill takes back with him this time will have been won with more difficulty. However, those close to the picture are not greatly worried about his political future. They point out that =al- though the majority of Churchill's own party dislike him and person-’ ally would like to get rid of him, they don’t dare have a general el- . ection, because most of them (acel (Continued on Page Four) U.S. BOMBERS -According fo Return- ing Plane Pilots WASHINGTON, June 29 — The Navy announced that United States bombers attacked the Japanese oc- cupied Wake Island last Saturday night, damaging the enemy’s air- fields and various shore installa- ticns. The communique said enemy antiaircraft fire hnd defense was weak. One U. S. bombgr suffered minor damage in the att; 'WAKE ISLAND PRODUCTION IS RAIDED BY OPTIMISTIC - SAYSNELSON 1 Defense R;;Eried Weak War Production Board » | Chief Warns Consum- | ers Outlook Bad WASHINGTON, June 29.—Con- gress received an optimistic report from Donald Nelson that plane, tank and ship objectives can be met, but that the outlook for the -consumer is “very bad.” He maae the statement in re- viewing the War Production Board’s work before the House Appropria- tions subcommittee and sald “I be- lieve we are over the hump. From now on it becomes a question of | | | | | | Where Major Fight Takes Place on Russian Front T Y\NEW SLOGA N—jerry McNamara carries the slogan “Gentlemen Prefer Bonds” at the 'opening of the war bond and stamp drive at Steeplechase Park, Coney Island, N. Y. GAS DROUGHT MARKED OVER EAST COAST Motorists JaTD umps to | Get Supplies-Trains | Are Loaded ‘f (BY ASSOCIATED PRESS) i and throngs of motorists gathered rck but all planes returned safely toitheir bases. .t | ANTI - NAIZI RIOTS HELD IN SWEDEN Break Up Atiempt fo Hold German Meeting at Raettvik STOCKHOLM, June 29 —In the second anti-Nazi riot within a week in Sweden, more than 1,000 persons broke up an attempt to hold a Naz meeting yesterday at Raettvik, 150 miles northeast of Stockholm. Raid Made On Nippons, New Guinea Allied Bombers Make Sweep of Troop Dis- positions, 2 Places ALLIED HEADQUARTERS IN AUSTRALIA, June 29—Alligd bomb- on Japarese troop dispositions at improvements in process, getting better distribution of raw material | and see that production is attuned | to strategy.” He said the President's goal of 18,000,000 tons of shipping will be View of the Crimean port of Sevastopol Here is a view of Sevastopol, important Crimean port, around which a major battle has been taking place for days. The Russians have been holding their main lines against furious Nazi onslaughts. After taking the Kerch peninsula at the eastern end of the Crimea, the Germans hoped to t‘uke Sevase topol in order to complete occupation of the entire Crimean area. Sevastopol owes its origin to Cath- e EXTENSION OF RUBBER COLLECTION Drive Will Last Until July 10 Because of Small Results WASHINGTON, June 29 — The President has extended the rubber collection drive an additional 10 days because collections through Saturday brought in a disappointing | total of 219,000 tons. The drive originally was sched- iled to end at midnight tomorrow The campaign now will continue | through July 10, Sec. Harold Ickes | told reporters he thought that lack | of success is probably due to hoard- |ing. | He said that there might be | people in official life doing a little | hoarding. REGISTERING ~ OF YOUTHS IS | | | Jammed trains, empty highways ers made a prolonged raid todayf o" TOMORRow around the few filling stations op- en, made the Eastern United States acutely conscious of the gasoline drought over the weekend. In Rhode Island, police called to control drivers of cars at gasoline pumps with available sup-| plies. ! Fifty motorists visiting soldiers | at Newport were stranded there and | defense workers in Boston expressed | the fear that they would not be' able to get to work today. | All through Massachusetts and New .England, autos rolling along the roads are becoming fewer andi fewer. Meanwhile, Mayor Fiorello La-| Guardia of New York attacked the fective along -the Eastern seaboard as “discriminatory and unfair.” Vacationists and visitors crowded New York in numbers comparable to those on holidays and railroad officials said that 30 extra trains were added to handle the travelers. | e FORMER U. OF IDAHO | ATHLETE NOW WITH PRA IN SKAGWAY Robert Laute, former University | of Idaho athlete, and now an en-| gineer’s aid with the Public Roadum letter was a form issued hyjstaytng at the Gastineau Administration, made a short lrip‘ to Juneau and expects to returniright following the attack on the today to Skagway. Mr. Leute, an outstanding basket- Lae and Salamaua on the island of New Guinea, northeast of Australia with good results. This is accord- ing to a bulletin issued by Gen. WETe pouglas MacArthur's headquarters.' year SANTIAGO IS ROCKED BY EARTHQUAKE SANTIAGO, Chile, June 29 — A They have 2%, cent, gasoline peice indrease ef- | ore earthquake was felt at 11:30 | |o'clock last night (Pacific Wartime) | fand communications"were interrup- | ted. Electric service was cut by the shocks, Thirty persons were injured, some seriously. bR T e, LETTER RECEIVED FROM J. CHENEY AT DUTCH HARBOR Mrs. Nina Cheney of Juneau has received a letter from her son, John, from Dutch Harbor, dated June 8. the Navy and said her son was all Aleutian Islands base June 3. John formerly worked at the Al-! { WASHINGTON, June 29—Uncle Sam will tomorrow register some three million youths in the 18-20 group possible for military service. i When this registration is com- pleted, the Government will have on record about 43,000,000 men from jevery walk in the country from 18 \to 65 years. | NO ALASKA REGISTRATION Owing to forms not arriving, the registration in Alaska has been ‘postponed. . 'Many Refurning fo Homes from Far East SHANGHAI, June 20—Carrying | 636 North and South American citi- :zens. the Italian liner Conte Verde \has sailed for various ports, the first \repatriation of the war in the Far East. The trip is expected to take |three weeks. ——e | MILES PRICE HERE | Miles Price, Internal Revenue rep- | resentative, arrived in Juneau from | Petersburg over the weekend and is Hotel iwhlle in Juneau. ————— SAM SHUCKLIN LEAVES BY PLANE FOR SOUTH; ball and football player, was referce | aska-Juneau for seven years, and | for the Pacific Coast Conferences|went to Dutch Harbor about a year for those two sports last year. ——————— BUY DEFENSE BONDS Sam Shucklin merchandise brok- ago to operate a compressor at thc;'Er. arrived in Juneau over the defense base. He has a sister, Kath-'weekend from the Interior and left Jones averages: industrials 103.17, ryn, in Juneau, by plane for the south, | | PEARL HARBOR, |Navy announces that staggering |losses were inflicted on the Japanese and may have been lost nLLempung} |tleet in the Battle of Midway. | The losses included four aircraft carriers that were sunk with their aircraft {otalling about 275 planes, together with the crews of the planes and the enemy ships. The Navy also announced that other ships sunk were two heavy cruises more transports or cargo vessels. A fouth destroyer is listed as prob- ably sunk, Thousandsof Women Now Employedin U.S. * War Production Plants HAZEBROUCK R.R. SECTION IS AIRRAIDED Bombers Make Dayligh | Aftack Following Night Assault on Nazi Base LONDON, June 29—British fighi- er planes raided the“railway yards at Hazebrouck, sharply following up last might's assault on the German submarine base at St. Nazaire. Five British and three German planes were downed in the raid, an authoritative source said. e, STOCK QUOTATIONS NEW YORK, June 29—Closing |there were 2,000 women employed two Japanese In addition to the sinkings, the lmuowmg ships were badly damaged {to return to their bases: | Two or three battleships, one | damaged particularly severely; two heavy cruisers, four transports or cargo ships, hit by bombs or tor- | pedoes. One of the latter is listed | as probably sunk The personnel losses on the ships three destroyers, one or |sunk are known to have been ex-|floor of the House tremely heavy as the ships receiving | bomb hits probably suffered heavy | losses in this respect. | | 1 { BY JACL STINNETT | WASHINGTON, June 29 Anderson, ditector of the Wome: Bureau of the Department of La- bor. is beginning to see some of | her wishful thinking of a year or| 50 ago become reality. | Until recently, the chatter about| women in war irMustry was| mostly chatter. At the time of Pearl Harbor, the number of women act-| ually employed in war production was negligible, By early spring it was no more than 500,000. But in| the last two months, that number | bas more than doubled, soon will } be quadrupled. | | ry n's | The spade work that Mary An- derson and her bureau did in sur- veys and the urging of women to| !train for skilled labor and enlist| in the army of war workers is be- | ginning to sprout a crop. From revellle to taps, soldiers, sailors and marines now are using| weapons and supplies produced and| Imspt'clnd by women. ! The aircraft industry is an ex-| | ample of the recent rapid expansion | of women workers. In October, 1941 \. ~ HOUSEFLOOR | war arine II of Russia. It is one of Russia's strongest naval bases. Staggering Losses Hit _Japanese in Battle of Midway, Dedares Navy June 29—The | SUPPLY BILL 15 SENT T0 | Expect Cont—r(;/ersy Over {15 Million Dollar ltem | for Henderson WASHINGTON, June 9 — The House Appropriations Committee fired another financial salvo at the program by sending to the the $1,810,000,000 supply bill This is estimated to boost to ap- proximately $28 billion the amount projected for national defense since June, 1940, The new bill carries funds for almost a score of war agencies for the fiscal year starti- ing July 1. . While more than half of the to- Henderson of OPA is expected to be the only part of the bill over which controversy of any conse- quence is likely to develop. The committee more than halved Henderscn's original request. D CHINA STILL HAS FIELDS OF TUNGSTEN Japanese Fail in Major Objective in Kiangsi Province CHUNGKING, June 29 — The Japanese have failed to reach one of the major objectives in the pres- | ent drive in East China, the tung- sten fields in Kiangsi Province This is the statement by the Chinese government which says that meanwhile, Chinese pilots fly- ing under the tutelage of veteran American volunteer airmen, sunk warships in the quotation of Alaska Juneau mine in the whole industry. When Japan yop,ize river and also inflicted stock today is 2, American Can 67%, 4 Anaconda 24%, Bethlehem Steel 51, Commonwealth and South- ern %, Curtiss Wright 6%, Inter- national Harvester 45%, Kennecott attacked Pear] Harbor, there were 4,000. Now there are more thah 20,000 women in aircraft plants | |and before peak production is| reached, present employment rates will have carried this to more heavy losses on Japanese ground forces in eastern Kiangsi The Chinese statement further says that while the enemy accom- plished much to prevent the use of 28%, New York Central 8, Nor-|yp., 100000, Three plants employ bases from which the Chinese hope thern Pacific 5%, United States ... than 1000 women each. One|to bomb Japan, the tungsten depos- Steel 46%, Pound $4.04. DOW, JONES AVERAGES The following are today’s Dow, rails 24.29, utilities 11.74. | has already more than 3,600. An- |other is now employing women at! the rate of 1,000 a month. (Continued on Page Five) ' its are still far from most of the advanced Japanese spearheads. - BUY DEFENSE STAMPS MATRUH, IN EGYPT, HAS BEEN TAKEN (First Defense of Brifish on Road fo Rich Nile Val- ley Falls fo Axis | EIGHTH ARMY BELIEVED TAKING NEW POSITIONS Desperate Search Being Made for Locations fo Stop Juggernaut (By Associated Press) The Axis announced this morning that its forces in Egypt have cap- i tured Matruh, thus reducing the first defense strongholds on the road of the rich valley of the Nile to Alexandria and the Suez Canal. ‘The British do not deny the claim, but indications are that the Allied forces making up the eighth British Army have withdrawn to take an- other stand in a desperate search for positions at which the Axis jug- | gernaut could be halted. After the impairment of isolated engagements, reinforcement defense tactics seemed, to call for avoidance of a full scale clash of Rommel’s columns so long as the defenders stood under the handicap of infer- jority in tanks. i By-Passed Defenses | On one point of the Axis claims | there is official British agreement. That is the fact that Rommel's | torces successfully by-passed Mat- |ruh’s western and southern defense | positions for two days and the bat- tle reached around to the south- eastern section of the Nile Valley. Sid Matruh is a prized railhead * 160 miles from Alexandria. That |area ‘was raided this morning by Axis planes, but they caused little damage and no casualties, accord- ing to the official Egyptian report. Take 6,000 Prisoners Berlin and Rome said that at Matruh, Rommel captured more than 6,000 prisoners and he is con- | tinuing his eastward drive. The, 6,000 figure suggested that the bulk of Matruh's defenders had with- drawn. The Axis claimed a much !larger prisoner haul of 33,000 at | | » | |tal is for the War Shipping Ad-|Tobruk | ministration, a $75,000,000 item for | The Royal Air Force communique | from Calro contained no hint of the | course of the land battle and mere- {ly reported that Axis truck and i tank concentrations had been at- ! tacked thorughout Saturday and Sunday nights and that large fires were springing up between Matruh "and Salum on the Libyan border. i During Sunday, fighters recon- | noitered the foe's positions and pro- | vided cover for the defense forces. | MATRUH EVACUATED LONDON, June 29—The British defenders in Egypt have evacuated | Matruh, the -British Military of~ | ficially announced tonight. The cowmunique further ' states {the bitterly fighting Eighth Army fell back in the third day of the great tank battle which sought to stem the drive of Rommel’s ar- mored columns to the Nile Valley ;and Suez Canal. - E. T. YARBROUGH 1§ PROMOTED TO RANK OF MAJOR IN ARMY Capt. E. T. Yarbrough, U. 8. Army Air Corps, has received his appointment to the rank of Major within the last few days, according to word received by Mrs. Stella Young, mother of Mrs. Yarbrough. ‘The promotion to the rank of Major was received by Major Yar- brough just five weeks after his appointment as a Captain, Mrs, Young said. The marriage of Major Yarbrough to the former Miss Edythe Young. of Juneau, was a social event of the early spring here. Mrs. Yar- brough left several weeks ago for Fairbanks to make her home. D BUY DEFENSE STAMPS