Indianapolis Times, Indianapolis, Marion County, 28 May 1942 — Page 4

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PAGE 1 pe nS ITaNsPOZES TTI er Ca a Cr CARTER DROPS |Decision Should Be Reached Soon in Kharkov Battle, SCAN PAY LIMIT IN TAX PROGRAM

Today's War Moves RECOUNT SUIT Determining Summer Strategy in Russ-Nazi Conflict only ‘Human Errors’ Found | ht rn crt Tr Fiscal Experts Try to End Siphoning of Profits by

By LOUIS F. KEEMLE United Press War Analyst The Germans have started a drive in Libya at the worst possible time of the year, which indicates United Press Staff Correspondent : that the attack has a very definite and urgent purpose, LONDON, May 28.—The next few days of the grueling|’ In 41 Precinct Check, |battle of Kharkov may decide the entire summer strategy . along the 1800-mile eastern front. i alari He Explains. Unless the slugging armies knock themselves both out Jumping Salaries. Clyde C. Carter today dismissed|and are forced by sheer exhaustion to halt, it seems likely VASES. Mey 28 i P.). his recount contest against William itani i ided. One or the other —Secretary of the Treasury Henry D Be A ie that the titanic battle will soon be decided Mocgortiing 3%, wil lay before este gressional fiscal experts tonight a

either military or strategic. If military, it most likely would be a drive for tion for criminal court judge after|army, it is believed, will have to give before the sheer| ° the counting of votes in 41 precinets

on

Suez and thence for the oil fields of Iraq and Iran, since Hitler's objective is presumed to be oil from the Caucasus or the Middle East, or both. But if the Germans are striking for the Middle East, they kave gone at it the hard way. It would involve reducing the coastal defenses of Egypt, the main naval base at Alexande ria, Suez and then a hard fight through Palestine and TransJordan. Unless British military intelli-

months’ lull since Rommel’s last drive.

ferocity of the combat.

showed a net gain of only 10 votes. Mr. Carter said that “the only

Meager details of the fight-

shenko caught the Germans off

guard only three days before their)

plan to limit salaries and bonuses

of executives, in general, to the

gence is wrong, Col. Gen. Erwin Rommel has not many more than

Rommel has repaired the losses suffered then and has been ree

inforced extensively. The Germans made careful preparations for the attack. The day and night pounding of Malta from the air kept the British

ing, now in its third week, indicate that the Red army is determined to strike with its supreme force for victory in

125,000 men. This may or may not exceed the British force defending eastern Libya, but back of that are thrice as many defending Palestine, Syria and Iraq.

amounts paid in recent years. Objective of the plan would be to prevent corporations, facing higher income taxes under pending rev-

differences were merely human errors in judgment” of central counting bureau officials and that he could not hope to overcome Mr. Bain’s 2145 majority on this basis.

own offensive eastward was due to begin. Suddenly lengthening the arc off‘ his attack, Timoshenko struck in

In dismissing the suit, Henry Krug, Mr. Carters: attorney, said

1942.

miles southwest of Kharkov, with even heavier forces, from a salient

the neighborhood of Krasnograd, 55]

A force such as Rommel is credited with having, therefore hardly

enue legislation, from attempting to siphon excess profits out of the

occupied there, while under cover of the attacks the Germans sent men

seems capable of driving all the way to the Euphrates. Hence the Rommel drive may be strategic, unless it is intended to strike only for Alexandria and Suez, and no farther.

and material to Libya.

DO NOT CONFUSE

UR) RT

EVAPORATED MILK!

Russ Strike First

Hitler's vast massed armies probably never again can be duplicated for a summer campaign in Russia. The resulting struggle may be the greatest in the history of the world. Soviet Marshal Seymon Timo-

shenko, taking advantage of reported low morale among axis troops

corporate ledgers by jumping the salaries of officials. The treasury plan would not attempt to impose any fixed dollar limit on incomes.

Morgenthau to Explain It

Mr. Morgenthau will explain the plan to a closed meeting tonight of the joint congressional committee on internal revenue taxation, a group which includes members of the house ways and means committee and the senate finance committee. Their okay for the scheme would be tantamount to approval of congress. Under the plan, any increased compensation could not be deducted as business expenses of a corporation in computing taxes. In other words, if the salary of a corporation executive who had been receiving $100,000 was boosted to $175,000, only the $100,000 could be deducted for tax computation purposes, while the additional $75,000 would be taxed as profits. This would in

that the contest “vindicates the central counting system as an honest count other than these human errors” on questionable ballots,

Petit Shows Gain

Meanwhile, recounting of ballots continued in Jesse Hutsell’s contest against Otto Petit for the Republican sheriff nomination. With 24 precincts counted, Petit showed a gain of two votes. Two other contests have been filed but the counting has not started. Recount boards that have not yet started checking ballots are those appointed for the contest between Dr. Walter Hemphill and Jack Tilson in the Republican county clerk race, and Toney Flack against Glenn B. Ralston in the Democratic auditor contest.

he had thrust into the German lines during the winter. With several defense areas over= run and the Russians still surging forward, the Germans were in imminent danger of losing Kharkov. Field Marshal Fedor von Bock hurriedly threw in a big force under Schwedeler against the weakf relentless warfare, est spot in the Russian salient— lil E in the object of de-|the Izyum-Barvenkova neck. ERAN THRUSTS i roving concentrations of German | SOY I, Ciena or LIBYA GYPT GERMAN THREATS SBD Strength beiore Hitler SOW gst as an imminent offensive against Ros-| : San CER SER en 3 GERMAN GR

OE ocic yf TT even a| tov, gateway to the Caucasus. stalemate on the Kharkov front Masses of air force reserves were would be a Russian victory, because brought from other parts of the it probably would prevent the Ger-| Ukraine and from the Black sea mans from launching their project-|02St: ed march on the Caucasus oil fields. Timoshenko, bearing out Russian predictions that 1942 would be an offensive, not a defensive, year for Russia, seized the initiative 16 days ago with a sudden assault on the Kharkov front, on a line about 35 miles long, running between Volc-

Main Drive Into Syria?

If strategic, the attack could only be intended as a diversion in preparation for the real drive on the northern side of the Mediterranean. British and American military men have suspected for some time that Hitler’s real strategy is a drive to the Middle East either by way of Turkey or through Cyprus into|# Syria. They consider the latter the more probable of the two. Such a drive would be from Crete and the Italian Dodecanese islands, fortified points sprawling northeast

of Crete along the southwestern shore of Turkey.

Libya Is No Sideshow An attack on Cyprus would be

Oil is the goal of new German offensives, shown by this map. The axis drives, reported held at a standstill today, are aimed from Libya, Kharkov and the Kerch peninsula.

Timoshenko Diverted

Schwedeler struck with hundreds of planes, several motorized divisions and probably about three tank divisions, His impetus seemed to carry him at least half way across the neck of the salient. He put the entire Russian left wing in a

must smash the Russian army this year to survive. Meager information available here indicates that the Germans planned their main effort against the Caucasus, using the area between Khar-

1 h Ehark ” He 1 3 kov and the sea of Azov as their warned today that New Zealand can{kansk, 35 miles north of arkov, | dangerous position. He forced Tim- CBE b 3 i : ."_|undertaken by air and sea-borne expect hit-and-run raids by planes/and Chuguev, 20 miles southeast. |oshenko to discontinue his attack BE thefe was evi Bo Mey Ir troops. Once in possession of Cyting fro my carriers. According to some reports, Timo-|on Kharkov and turn around in de- ’ = o EE I LIED 3 ro dence that another very large con- |boost. prus, the Germans would be sepa-

| ——— centration was grouping around the Sales Tax Studied Pte Som Syria by only 60 miles}

Smolensk-Vyazma sector southwest i $ : : ’ y Details of the plan still have to| Even if it is a diversion to cover

fense of his rear against encirclement. The Kharkov battle is important not only because it involves in its various sectors up to 30 divisions on each side, a total of about 800,000 men. but because of the effect it may have on Russian summer strategy and the grouping of the axis forces with which Hitler knows he

" FEARS NEW ZEALAND RAIDS WELLINGTON, N. Z, May 28 (U. P.).—Vice Admiral Robert Lee Ghormley, commander of allied naval forces in the south Pacific,

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5 ie aay or be worked out, but some level will &8n attack on Cyprus, the fighting in be the base for another attempt to|Pe set as the bottom floor where ii95 Ju bY fo MENS % SdeshowAl outflank Moscow by way of Tula, the plan would become effective.|judging by reports from correspond- |i 110 miles south of Moscow. The figure $35,000 has been men- Ents on the spot. i | tioned as this figure. The Germans have thrown in Meanwhile, the house ways ang|heavy forces of tanks and airmeans committee delves further into |Planes accumulated during the three! § the possibilities of a general sales tax to raise revenue to meet the heavy costs of war. Various types of that levv—manufacturers, wholesalers and retail—were discussed during a two-hour secret session last night. Chairman Robert IL. Doughton (D. N. C.) said no decision was reached.

| There was another concentration 0 a e around Leningrad. The Russians |there, in the north, had been un-

|able during the winter to break the siege of the old capital and they now face a serious defense problem this summer against odds. | At a rough guess, Hitler has at {his disposal something more than 14,000,000 men. Included are 200,000 Rumanians, 50,000 Hungarians, 40,000 Italians and 20,000 Slovaks, Spaniards and Quisling troops from occupied Europe. The Germans are not as good nor as high spirited as they were when they attacked Russia 11 months ago. They are still probably the best equipped army, man for man, on earth. They have a very heavy fire power and a large proportion of armored units. They raised their army by draining man-power reserves of Germany to the bottom and straining their industry throughout the winter in the pro(duction of new weapons. | Probably this army could never be duplicated by Germany. | Most of the German army is ‘available for Russia, except for per(haps less than 1,000,000 men needed |elswhere in Europe. It would be an overwhelming force against anything except the Russian army,

Russ Size Is Mystery

As things stand, any emergency {which might require the withdrawal of considerable German forces from areas to which they were originally assigned might seriously weaken German attacking efficiency. The Russ army may have anything up to 5,000,000 men ready for the summer campaign. | The exact size is a mystery. The bulk of the Russian troops are well trained; the rest were whipped into shape hurriedly. Nobody knows the extent of Russian equipment, espe- | cially the extent to which Russian industry has been able to keep replacements flowing on the scale necessary for this fight. The rate at which the Russians are throwing tanks, guns and planes into the Kharkov battle seems to indicate that they are satisfied with their arsenal. According to unofficial reports, Gen. Grigori Zhukov has planned an early move against the Germans on the Moscow front. Such strategy would call for a heavy price in men and material, but it might sueceed in disorganizing German plans |%&§ until summer is so far along that a decisive campaign could not be fought. The result of the battle of Kharkov may indicate the chances of this Russian strategy of anticipational attack.

‘MIRACLE OF PRODUCTION’

NEW YORK, May 28 (U. P).—| Price Administrator Leon Henderson said last night that America’s war production problems have been overcome by “one of the greatest miracles of modern production,” but warned the nation fo prepare for further shortages of essentials and the “terrible prospect” of the heaviest military losses in our history. He spoke to the National Association of Purchasing Agents.

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Organizations

Club to Join Veterans—Members of the Ohio Valley 33d club will meet at department headquarters on Monument circle June 7 in connection with the United SpanishAmerican War Veterans, department of Indiana, state encampment.

Shrine to Honor Drill Team-—In-dianapolis Shrine 6, White Shrine of Jerusalem, will give a reception for its championship drill team at 8 o'clock tonight in Castle Hall. Mrs. Katherine Armbruster is captain of the patrol, which was voted 100 per cent in competition with 18 others at the supreme session at Grand Rapids, Mich. The patrol will give a drill following a business meeting. Mrs. Bessie Hensel is worthy high priestess of Shrine 8, and Chester Leppert watchman of the shepherds.

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