Indianapolis Times, Indianapolis, Marion County, 30 December 1941 — Page 1

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VOLUME 53—NUMBER 252

Burma Road Racket Robs Ch

This is the first of a series of articles by Mr. Stowe. By LELAND STOWE

Copyright, 1941, by The Indianapolis Times and The Chicago Daily News, RANGOON, Dec. 30 — Of all the “squeezes”

Inc. ich

Chinese ingenuity has perfected, the Burma Road ever since its opening in*September, 1938, has been the greatest

racket in China.

It has been and still remains both a national scandal

and a national disgrace. This

is the plain truth known to

all who have spent any time in China or along the road. Because the Burma Road has for years been domi-

nated by racketeers and war operated or controlled by the

profiteers, always partially same kind of gentry, 10,000

Chinese soldiers have gone without rifies, hand grenades

or munitions.

TUESDAY, DECEMBER 30, 1941"

UNKNOWN QUANTITIES of medical supplies including gifts from Chinese relief organizations in the United States and elsewhere never reached a military or civilian hospital but have been sold at neat profifs in private shops

in various parts of Chiha.

Because of the Burma Road racket hundreds of

thousands of Chinese blankets.

soldiers have existed without

And Chinese wounded still lie on hospital cots in thin, dirty cotton uniforms while 1,000,000 woolen blankets have lain in Rangoon warehouses, neglected by the Chinese administrators of the Burma Road traffic for more

than a year.

at

BEFORE THEY were destroyed and while no effort was being made to move them, the Chinese solicited more blankets from the American lend-lease. For several months 200,000 new blankets have been arriving here

with each lend-lease shipload.

As a result of the Burma Road racket tens of thousands of tons of private contraband have been moved into

China during the past three

years while as many thou-

sands of tons of essential war materials have been left in

Burma or along the road. Hundreds of motor cars

™

have been sent inte China

where they were sold to wealthy Chinese, whether poli

ticians or private citizens, at mal price.

four to.10 times their nor-

En Second-Class Indianapolis,

Matter Ind,

PRICE THREE CENTS

inese Of Arms

IN KUNMING while I was there, a new Buick sold for between 5000 and 6000 American dollars. Smuggled whisky brought $20 and sometimes even $30 a bottle. Perfume for wives or concubines was almost priceless.

Hundreds and probably

thousands of trucks loaded

with such luxuries have slipped over the Burma Road’s 750-mile route from Lashio to Kunming labeled as “war

materials” or marked as agencies, while a share of along the line. Nobody knows how many

destined for governmental the profits was distributed

millionaires have been made,

thanks to the Burma Road scandal, but the total certainly

runs into several millions of d

ollars.

All these are facts which have been long notorious One, Section Two)

{Continued on Page

HOW STH COLUMN SOLD OUT HAWAII

REPORT U.S. |On the War JAPAN TO PAY

PLANES REACH MANILA FRONT

Hint Reinforcements Arrive; Capital Believes Land. Sea Attacks Near.

War News Inside Todays War Moves...... Details of Fichting Deny Japanese Slain By JOE ALEX MORRIS United Press Foreign Editor American forces in the Philippines braced today for a probable immi-| nent Japanese major land attack! and possibly a naval assault upon| Manila, and in Malaya the Jap- | anese air force blasted at Britains! Singapore bastion. : i Gen. Douglas MacAtthur's latest communique tersely reported that “everything is quiet.” But it seemed evident that it was the calm before the storm. U. S. forces defending the north-| erm approaches to Manila reported | a battle raging in the vicinity of! Cabanatuan, 60 miles north of the! capital as United States army planes | appeared for the first time over the| North Luzon fighting front. Appearance of the American planes (suggesting that air rein-

forcements may have reached the Philippines) was greeted with cheers by civilians and soldiers in the battle zone.

Naval Threat to Manila?

Gen. MacArthur has massed his main forces in Pampanga province 25 to 50 miles north of Manila for a probably decisive encounter with the Japanese troops pouring ashore along Lingaven Gulf about 50 miles | to the north.

A naval threat to Manila was]

hinted in reports to Manila news- Minister . . papers — not confirmed officially — dresses Parliament this afternoon, |Uers were “deliberately selected

that Japanese warships appeared at|

the height of the air attack on the fighting speech, although revealing |

Fronts

PHILIPPINES: U. S Amy

planes over northern Luzon front | suggest air reinforcements may |

have reached Philippines; main battle at Cabanatuan, 60 miles due north of Manila; report Japanese warships driven off in attempt to approach Manila Bay during yesterday's air attack on

| fortress of Corregidor at mouth | | of bay.

SINGAPORE: Japanese planes

| blast at Britain's great naval base, |

but official reports say little damage is done: Japanese suffered heavy losses in slow advance in

9 | northern Malaya.

TOKYO: Propaganda reports

| claim another “Dunkizk” is near

at Singapore; predict Manila will fall by Jan. 10.

BATAVIA: Reports of Japa- |

nese paratroops landing in Medan area of Sumatra officially denied, attributed to mistake caused by enemy pilots bailing out of blasted bombers

LIBYA: Olinactie bate. per: haps final battle in offen sive inté Libya, reported developing south of Benghazi in effort to complete destruction of Axis armored strength; Germans lose 22 tanks snd 20 others reported heavily damaged.

RUSSIA: German resistance to Soviet counter offensive stiffening; Moscow says gains continue; Berlin reports one Russian spearhead trapped and being destroyad.

{dicted that at the proper time the | bombings will be repaid 10-fold, with :

Speech Without Revealing Policies.

| OTTAWA, Dec. 30 (U. P.) —Prime | : Winston Churchill aad. churches and other religious cen-

FOR MANILA AT

| ‘MacArthur Charges Raid On Open City Violated | ‘Civilized Process.’ WASHINGTON, Dec. 30 (U. P). ~Gen. Douglas MacArthur, com/manding the valiant U. S.-Filipino |defenders of Luson, vowed today (that the treacherous Japanese ‘bombing of Manila would be avenged

at the “proper time.” In & radiogram to the War De-

declared an open city and defenses against air raids were removed. Gen. MacArthur reported that the Japanese had used 63 bSmbers in causing severe .d Cathedral, hospitals,

Silent as to Fighting

“It is notable that before Manila was declared an open city and be- | fore our anti-aircraft defense evac{uated therefrom he (the enemy) had abstained from attempted bombing of anything in Manila ex{cept military installations,” Gen. { MacArthur said. “His present actions can only be xd completely violative of all the civilized processes of international law. At the proper time I bespeak die retaliatory measures.” Congressional leaders have pre-

American aerial assaults on cities such a% Yokohama, Kobe, Osaka

Expected to Give Fighting 2nd Tokyo.

| ‘Deliberately Selected | Todays War Department ocom|munique made no reference to the [current fighting in the Philippines. The Department said that

as

He is expected to deliver another |Special targets for the Japanese

{bombers, and that the buildings

Corrigedor guardian of Manila Bay none of the policies decided upon Were of such architecture that they yesterday and were driven off by! here and in Washington.

could not have been mistaken, “Before the brutal assaults were

‘PROPER TIME

LOCAL TEMPERATURES

Gam ....%W Mam... va. m .... 2 Ham... 9 Sam ....2¢ 12 (moon) .. 31 am... 28 1pm... 3

———

coastal guns. His reception in Canada was over- begun, Japanese bombing planes! anese warships may have been test-| feted him when he arrived yester i . ' he i lecting the buildi which were ing American defenses preliminary | day and Royal Canadian Mounted | subsequently comm 1d the Depart- | into Manila Bay. |a path for him. er ————— Singapore Ts Bombed Mr. Churchill was up late last | right atten PLANS TO BE MADE over Singapore brought four raids | armor Chery. the Earl By Ms | ficially reported as slight. Canad hors k ., | A meeting of all county &ivilian It was presumed that the 350 - loner Privy boumeil; « high | gefense directors in Indiana and of ish base reflected the steady ad- speech in Cana : (will be held at the Claypoo! Hotel vance of their lines in northern| uncheon Pret si ben and |2t 1 p. m. Sunday, Clarence A. i hy i The Japanese optimistically dom have at last reached the crest | nounced today. claimed in propaganda broadcasts|of the road and are now ae see| Ihe tire rationing program will be proaching at Singapore. They also for salvaging metals and other maclaimed they would win Manila, terials needed for waging war. ponement of yesterday's Tokyo as- | SEEK WRIT AGAINST | sertion that they would win the i Rime NS 50 REGISTRATION BOARD From Europe came a scattering of | | | 9 ing indications that Germany iS a. a J preparing for new blows in the Suit will Charge That Law’

Jo the Army Medical Board.

STE

aireraft defenses,

New York® was as

Testing N. Y. Anti-Aircraft Defenses

showifiy = gun crew running to positions in a test

| the Navy Fr:

to be said of the ¢ of New York's antic

DRAFT SPEEDUP TO BEGIN JAN. 1

“Fit Candidates’ to Be Placed in 1-A Before Final Exam.

In a move to speed draft inductions, State Selective Service of-| ficials announced today that beginning Jan. 1, registrants regarded | as fit candidates for military serv-| ice will be definitely classified in| (Class 1-A before taking their final! physical examination. | This procedure will permit the \draftee to appeal his classification | | before he receives his final physical | examination, if he chooses to do so. | | Under | Robinson Hitchcock, Selective Serv- | ice Director, pointed out, the draft registrants will be subject to call ‘after they have passed the physical

Previously, draft registrants could begin to appeal after they had been examined by the Army Medical Board. Usually, at least 30 days were taken to dispose of the appeal. Lieut. Col. Hitchcock said the draft registrants would be given their customary ten days to wind up their business affairs after being passed by the Army Board before being called into military service,

GANDHI OUT AS HEAD | "OF INDIA CONGRESS,

BARDOTI, India, Dec. 30 (U.P). —The All India nationalist Congress today relieved Mohandas K. Gandhi of responsibility for Con- | gress leadership after he had dissented from a decision that the Congress would participate conditionally in the British war effort. Gandhi, however, n willingness to hold himself in readiness to act in an advisory capacity.

It was speculated that the Jap- whelming. Cheering crowds buf | sex low over the city, obviously se- | to an attempt to blast their way Police had to charge in and clear | nt Said The sudden Japanese air activity | attending a dinner at gov- | + ONIN during the night. Damage was of- {swore him in as a ber of the | FOR TIRE RA G anese air activity over the big Brit-| Mr Churchill delivered his first he county tire-rationing boards Malaya closer to Singapore. said that “those who fight for free. |Jocison, State defense director, an~jhat a British “Dunkirk” is ap- what lies ahead. outlined and plans will be discussed by ‘Jan. 10. That was a 10-day postnews items which reflected increas- | BIC HSMTahn sphere. Is Invalid.

An injunction suit, asking that | the newly appointed bi-partisan voter registration board be reStrained from taking office, was to

TIMES FEATURES ON INSIDE PAGES

U. S. Needs That 1941 Tag: Take It to Filling Station

9 Movies .... 14 15 {Music ........ 15 Obituaries .... 4 Pegler ........ 10 Photography... 10 Pyle .

Crossword .... 18 Editorials .... 10 Fashions ..... 13 , Ferguson 19 ai 1

It may be bent and dirty and the; Clubs, asked women of

A * * France Hiding Gold at Dakar VICHY, Dec, 30 (U. P).—The Bank of France disclosed for the first time ‘today that part of its $1,903,000,000 - gold stock now is being held “for safety” at the French naval base at Dakar. The bank did not reveal when the transfer was m#&de or the amount of gold stored at Dakar. The statement for the period ended Dec. 4 stated only that its gold stock amounted to $4,597. 593843 francs (the franc has a nominal value of about 24 cents), including bullion” transferred to

TAXES TO CURB WAR FORTUNES

Individual Incomes. WASHINGTON, Dec. 30 (U. P) =

Congressional fiscal leaders today

demanded that individual and cor poration incomes be taxed enough

New York, Martinique and Dakar. The amount of French gold held | at Martinique has been estimated | at $200,000,000. The latest statement disclosed a further rise in costs of maintaining the Germany Army of Occupation. |

LINDBERGH OFFERS |

TO SERVE AIR CORPS

Government Gives No Indie cation of Action.

WASHINGTON, Dec. 30 (U. P). —Charles A. Lindbergh, who resigned last April from the Air Corps Reserve, has volunteered his serve feces to the United States Army Air Forces, it was disclosed today. Lindbergh offered his services in letter to Lieut. Gen. Henry H. chief of the Army Air

a Arnold, Forces. The one-time “Lone Eagle” resigned his reserve colonelcy after President Roosevelt criticized his isolationist views and compared him to the “Copperheads” of the Civil War era. Gen. Amold confirmed Lind

YYTH CONGRESS DELAYED WASHINGTON, Dec. 30 (U.P) — The Senate and House today adopted a joint resolution postpone until Monday, Jan. 5, the open-

RE

to guarantee that there will be “no war millionaires this time.” They are preparing to start work on an unprecedented tax bill Jan. 15. Their demands for a bill that will restrict profiteering came as Secretary of the Treasury Henry Morgenthau Jr, warned the public that it must rearrange its finances a considerable degree” to meet the impending war taxes. Far Short of War Costs Congressional leaders predicted that the new bill would call for between $5,000,000,000 and $10,000,000,000 in new levies. But that would fall far short of the projected war costs for the coming year. The Treasury already is spending $61, 000,000 a day—$1,900,000,000 a month —on the armament program. That rate is expected to be doubled with« in a year. Administration tax advisers are aware that these enormous expenditures offer many opportunities to amass large riches quickly, and they are studying various proposals to insure that war fortunes are paid

into the Treasury in taxes, Aim at Millionaires Proposals eimed at “war million aires” include: 1. Limitations of individual in< comes’ to $25,000, $20,000 or $15,000 a year, 2. Increasing the excess profits

on individual incomes.

STOCKS CLIMB WITH DECLINE IN TAX SALES

SUNDAY BOMBS §

Carroll Story on Amazing Espionage Serves

to Warn All U. S.; Traced Fleet

ISLAND'S SPIES PAVED WAY FOR

|

Vegetable Dealers Movements.

By WALLACE CARROLL (Copyright, 1941, by United kress.)

NEW YORK, Dec. 30.—A fifth column and espionage

network, patiently organized

over many years, paved the

way for Japan's surprise blow at Pearl" Harbor.

The full story of the fifth column, which ‘Secretary of Knox described as the cannot be fold. until official inquiries have

Norway, pro been completed.

But during my recent vis

it to Honolulu, I learned:

1. That big arrows, pointing to military objectives,

were reported to have been cu

t in the sugar cane on plantas

tions in the islands a few hours before the Japanese struck, 2. That a Japanese who was arrested for allegedly operating a short-wave transmitter during the Pearl Harbor attack was a business man who for 20 years had been a frequent visitor at Schofield Barracks, the U. S. Army post,

Vegetable Dealers Kept Eyes on Ships

3. That Japanese vegetable dealers had an uncanny knack of knowing about movements in and out of port of

units of the American Navy produce to the ships. 4. That advertisements,

because they delivered their

innocent looking and accepted

by newspapers in good faith, may have contained code mes«

sages to the fifth columnists.

This is not intended as an indictment of all Japanese in Honolulu. On the whole they were industrious, depend. able and well behaved, but enough of them were fifth cole umnists to make the attack successful. The facts, if presented to the American people now, may help put them on the alert in other potential areas of danger, + Dawn Patrol Found Nothing Unusual

Here was the situation on the week-end of the attack:

Early Sunday morning th

e dawn patrol went out on its

regular survey and reported nothing unusual was happening

in the area covered by its fligh

t. Shortly afterward—during

a “sabotage alert’—the Japanese struck. Bombs fell on

hangars crowded with planes.

Empty hangars were ignored.

The Japanese knew precisely when to attack and where their objectives were. Some of the Japanese aviators shot

down were wearing the rings Oregon State.

of Honolulu high schools and

Some of the Japanese agents caught during

or after the raid had been trusted figures in Honolulu for

20 years or more.

The strength and importance of the Japanese commu-

nity on the Hawaiian Islands has hitherto passed without =~

notice on the American mainland. The Japanese form the biggest racial group in the islands, accounting for 155,000 of the total population of 414,000

residents refused to question the loyalty of many of their Japaneses American friends. Army and Nevy officers continued to keep Japanese servants in their homes. The wife

> SA since

of one officer told me she still had |

two Japanese servants. “We haven't the slightest doubt of their loyalty,” she said. “They have been with us such a long time

(Continued on Page Two)

The Inside Story

The accompanying dispatch detailing the sell-out | of Hawail by the column was written by Wallace Car