Indianapolis Times, Indianapolis, Marion County, 3 July 1942 — Page 2
~ America Is Losing War Against Inflation—On Every Front
By E. A. EVANS Scripps-Howard Writer
. WASHINGTON, July 3.—On every front America losing the war against inflation. The enemy is “making vast inroads, and his most formidable forces not yet come into action. Each communique from the domestic battlefields tells of a detest suffered or foreshadows a defeat to come. : Perhaps it was only an idle hope that this country sould win that war. Yet two months ago the president made it seem very plausible, ~ We would stop the rise of prices, he said. We would halt the upward spiral of the cost of ving.
Yes, that would mean sacrifices. For business, 4 : : smaller profits. For farmers, parity prices and no
| sig wage earners, except the victims of inequali- + ties and sub-standards of living, present wage ¥ Bot 41, doug Without tings we Want in order . ‘t0 pay higher taxes and invest in war bonds.
most of us, “a drastic reduction in our standard of
. living. ”
2 & =»
BUT SUCH SACRIFICES would be a small price
for the benefits to be obtained. We would preserve a stable domestic economy while we fought the axis. We would avert the disaster of soaring prices, and the worse disaster of later collapse.
We would save ourselves, and our returning soldiers and sailors, from the hardships and heart-
aches of such depression as followed our last -
foreign war. Having said that, having outlined the all-embrac= ing program which alone would suffice for the task,
‘the president turned to other matters.
Responsibility for levying anti-inflationary taxes and restricting agriculture to parity prices was passed to congress. Responsibility for wage stabilization was assigned to the war labor board. Responsibility for imposing and maintaining ceilings on manufacturing, wholesale and retail
prices, and on rents, was. left to Leon Henderson. Mr. Hendersan, alone, hag isd. 0 a0 Ie Job. » BECAUSE HE wat INSISTED ‘that the presi dent’s whole program should be .carried out—that labor costs and farm commodity costs, as Well as ultimate prices, should be stabilized—he has incurred the bitter enmity of labor-union leaders and ”" farm-bloc congressmen. - Because help and co-operation are withheld fom him, he now believes that “utter disorganization and anarchy” confront the price and rationing effort. And he has ample grounds for that belief. The first real puncture in the price ceilings has come, Retail prices of dried and canned fruits are to be raised as much as 15 per cent, - . Growers’ prices and labor wage increases, both beyond Mr. Henderson’s control, have forced canners’ and processors’ costs up 50 per cent. - Congress frowns on government subsidies for the processers and canners. The only alternative is to let them charge more for their goods. ; Hundreds of thousands of other manufacturers,
would be spent to keep business alive in spite of
‘interest ©: general welfare,
and whol: salers and retailers, are feeling the same deadly sq.cese between rising costs and price ceilings.
Unless they are rescued by subsidies, the ceilings must be punctured again and again. - And si beidies would merely encourage the rise of costs. '“axpayers’ dollars, by billions upon billions,
continuall increasing wages and farm commodity prices.
It may. not yet be too late to win the war against: inflation. The % egident could help greatly by coming promptly nd forcefully to Mr, Henderson's support. The war board could help him by giving real meaning | io wage stabilization in its forthcoming decision fh the crucial little steel case. Congr:ss could help by forgetting farm politics, labor poliiics, tax politics, and acting bravely in the
The president’s program, capvied out in full, might stil} turn the tide, But there isn’t much time: left.
| WARTIME TRANSIT
(LY ary secretiveness of the
BRITISH HOLDING GYPTIAN LINE
* Rommel Reforms Forces for Quick New Assault After
Counter-Attack Forces
Him to Retire Several
Miles to West.
of Rommel’s
tween the Qattara salt marshes and El Alamein. - The German marshal had moved up air reinforcements to meet the increasing numbers of American and British planes that were blasting his rear bases, his supply lines
“and flying low over his desert
columns at the front to dump
their deadly loads of explosives on tanks and armored
vehicles.
But it was evident that the allied aerial onslaught had ‘been effective against Benghazi, Derna, Crete airdromes,
Tobruk and other rear line centers. Benghazi was report‘ed to have been “Colognized” by mass bombardment. A dispatch from Richard McMilfan, United Press correspondent, at
the Ml Alamein front said that allied pir attacks had destroyed many
War Analysis
ALLIED OUTLOOK DARK IN EGYPT
American Writers Are Not Impressed by Size of
Reinforcements. (Continued from Page One)
"| mbsolute lack of reliable news from | the battlefield.” Those accustomed to read between _ the lines of censored dispatches had no- difficulty, however, in discerning that the more experienced Ameri can correspondents consider the sit
ey would hasten to so a : Their reserve respect is eloquent. Mr. Churchill lifted the veil someWhat yesterday in his successful bid for continued direction of British War measures as well as for the retention of the prime ministership. Admits British Losses . His sdmissions of heavy British “fosses of materials as well as 50,000
1" Prisoners in a2 fortnight of the Cyrenaica fighting (Egyptian losses
|, mre-yet to be reported), despite su- ~ perior British strength in men,
tanks, artillery and in the air, were In striking contrast to the custom-
Eastern authorities. ~The prime minister did not minimise the “mortal peril” of Britain but sought to cheer his hearers with ‘assurances of strong reinforcements ‘at hand or en route which he hoped “would turn the tide before it may ~ be too late. Mr, Churchill properly refrained
Allies Weakened
. Any one of those regions may he the object of early axis attack and their loss would be a severe blow ~ to the united nations’ cause. : There is comfort in the thought that Marshal Rommel’s forces must 7 exhausted by their astonishingly ~ swift and wide advance and that he i 8 now far from his accustomed bases. But the weakened sea position of the united nations in the Mediter-
Middle | tween
enemy tanks which were blazing on the battlefield and that New Zealand, British, South African and other imperial units were fighting strongly and in excellent spirits. Military sources in Turkey, however, emphasized that Rommel is a gambler who has been pyramiding his bets. as he pushed eastward across the desert and expressed belief that he would muster still greater strength to throw into a battle that had brought him so cloce to complete victory in Egypt. Rommel threw. the full power of his armored forces, backed by motorized infantry and mobile antiaircraft units, against the most vital point of the English line, 60 miles
ernéon, Oairo dispatches said. The British forces held their line against the terrific impact of the attack. Then the imperial mobile forces, racing’ into action, smashed the enemy's right flank south of El Alamein. They advanced through the advanced axis screen, hit the German flank and led by the 15th and 21st armored divisions, attacked the enemy forces from the flank and rear, “After an armored battle, late in the evening the enemy withdrew to the west, leaving our positions in-
e| tact,” the Cairo communique said
tersely of the imperial victory at a moment when the Germans were boasting of taking Alexandria and continuing on to Cairo. It was revealed officially at Cairo that the allied air force, the one arm which enjoys superiority, according to British sources, had conducted one of the greatest bombing offensives ever known during the last seven nights.
Axis Bases Bombed
Royal air force Wellingtons and the big four-motored Oonsolidateds of ‘the -U., S. army air corps, with their bomb capacity of four tons and their speed of upwards of 300
of ‘all types and weights on Benghagi, the central Libyan axis base; Derna, on the coast midway beBenghazi and Tobruk, and all the coastal concentrations, camps and supply dumps they could find over a B500-mile front stretching westward from the fighting line.
the Mediterranean and enemy air
across the sea from their nearest bases. The use of combination fighterbombers in the African fighting was mentioned for the first time in a Cairo communique today. It added .|{that the American-made Curtiss Kittyhawks were performing in the new role.
(Continued from Page One)
between 7 and 8 a. m., 3 and 4 Pp. m. and 11 p. m. te midnight. Particular areas the police would
west of Alexandria, yesterday aft-|
Runs Trial
offensive in the 40-mile-wide bottleneck be-|§
‘Maj. Gen. Frank R. McCoy ” » 2
PREPARE TO TRY NAZI SABOTEURS
Maj. Gen. McCoy, Probed ' Pearl Harbor
Raid, Will Preside.
will convene within a few days.
The commission will formulate its own rules for the trial which President Roosevelt ordered to start July 8 “or as soon thereafter as practicable.” The proceedings, expected to be highly secret, will be conducted at a place to be chosen by the com-
mission.
There have been few precedents in American history for such a trial. One of the most important involved eight persons who were charged with conspiring to assassi-
nate Abraham Lincoln.
Mr. Roosevelt will review the findings and recommendations of the It was understood that the death penalty would be demanded for the eight Nazis by Attorney General Francis Biddle, who,
commission.
with the judge advocate general o the army, will prosecute the case.
‘Maj. Gen. Frank R. McCoy will
preside. Other commission mem bers will be Maj. Winship, Maj.
Gen. Walter
John T. Kennedy.
miles an hour, have rained bombs| CARIBBEAN DEFENSE COMMAND HEADQUARTERS, July 3 (U, P.)~—American and British authorities continued search today for additional members of a Nazi spy ring charged with aiding enemy submarines in the Caribbean area. The arrest of George Gough, | .
known as “The King of Belize” as
They have bombed shipping in|he attempted to flee from British Honduras, and of 19 other persons fields in Oréte, nearly 500 miles{in Honduras and the Canal Zone was not believed by authorities to have wiped out the espionage gang. Special precautions have been
taken to protect the Panama cana
approaches but it was believed here that the chief purpose of the Nazi gang was to supply U-boats with fuel and to gather Bortslion for
the enemy.
The parade lineup: First Division Governor Schricker,
Who
WASHINGTON, July 3 (U, P.)— A seven-man military commission set 1p by President Roosevelt to try eight German saboteurs who landed in this country from submarines
Gen. Blanton S. Grant, Maj. Gen. Lorenzo D. Gasser, Brig. Gen. Guy V. Henry, Brig. Gen. John T. Lewis and Brig. Gen.
James NM.
U.S. ECONOMIC POLICY FALTERS
Anti-Inflation Program Under Crossfire of
Special Interests. (Continued from Page One)
Wednesday when Henderson was compelled to authorize an increase of 15 per cent—perhaps more—in the price of the 1942 crop of canned and dried fruits. Henderson’s announcement and a supplementary radio address by Budget Director Harold D. Smith were interpreted by some persons as having charged to congress blame for threatened bogging of anti-inflation policies. Congress was still in uproarious dissent to that suggestion at the close of legislative business yesterday and among the last and, perhaps, most revealing statement was one from Rep. Thomas H, Eliot (D. Mass)., an administration supporter.
Says Break Has Started He introduced a bill to authorize the secretary of agriculture to set the price of agricultural products at
parity. “The break in the price ceiling has started,” Eliot said, “with an increase of 15 per cent in all cannéd and dried fruit. This is just the beginning unless action is taken by
canned fruit was caused by the provision in the law saying that the fruit growers can charge a price of at least 110 per cent of parity. “The farm bloc just looks ridiculous when it says that -every price ceiling on farm products must be at least 10 per cent higher than sa fair price. Yet, that is what they wrote into the law.” There were bitter comments on both senate and house floors as congress maneuvered for a contest which, on the economic front, might be measufed for importance with the united nations battle in the Middle East. Who is right and who is wrong in the anti-inflation dispute probably will not be decided until the story is old and has been written by an objective historian. Some congressmen are angry because Henderson's vast proposed office of price administration bue reaucracy might incroach on their own political preserves back home, especially in the selection of state and regional .directors. Henderson wants 88,000 employees and congress is disposed to give him only 50,000. There is bitter congressional protest against the 21% cents increase in gasoline prices in the Eastern rationed area, the contention being that all paris of the country should help pay the freight for bringing expensive tank car gasoline into this area.
NOTICE TO ENLISTEES!
Notice ' to prospective soldiers, sailors and marines who want to celebrate the Fourth of July by enlisting in the armed services— Recruiting officials announced that the army, navy and marine offices will be open as usual all day tomorrow,
GEN. HANDY ELEVATED WASHINGTON, July 38 (U. P.).— Brig. Gen, Thomas T. Handy today was named assistant army chief of staff in charge of ‘operations, succeeding Maj. Gen. Dwight W. Eisenhower, recently appointed to command the new European theater of operations.
f
1
Army-Navy Parade and Thrill Cavalcade Among Features of July 4 Observance
qcounty and city defense directors at 11:30 a. m. tomorrow at the Columbia club. ° : Following this will be a drama-
parity instead of 110 per cent of|
the congress. The price rise in|}
(Continued from Page ¢ Ene)
second line troops, dispatc': 188 Te~ ported. Dispatches to the Commu) 56 par-
ty organ Pravda revealed or the
first time the magnitude of the German drive around Kuk, 2% miles: helow Moscow. I On the first day of the « Tensive, the Russians destroyed 223 | fferman tanks, Yesterday—the fifth ay offensive — the Germans : hurled “hundreds of tanks and nn: 1sses, of infantry and aireraft” at i 2 Rus. gians on the main sector of the front, the dispatch assertec Reinforcements of Adolf Hitlers’ pet 8. 8. brigades were rep rted to have been routed, while tli: Soviet air force yesterday destre: ed 130 German motor transports: tanks and anti-aircraft and killed 1300 men. The battle, however, gr i with mounting ferocity. r Apparently, the Kursk huitle was the main action on the’ blazing
of the
% atteres
Nazis Smas! Across River Bar:ier i in Kursk Battle
southern front, although the Russiang officially admitted for the first time today that the Russians were fighting in the streets of Sevastopol The Germans had started still another offensive, between Belgorod and Volchansk, 60 and 33 miles, respectively, northeast of Kharkov, the Russians reported. The Germans claimed the capture of Sevastopol two days ago, and the first Russian communique, saying fighting “continued” in its streets, indicated that the battle had been within the city for some time, The Russian communique said “our troops fought the enemy at Sevastopol in hand-to-hand fighting.” The emphasis on hand-to-hand fighting suggested that- much of many | Sevastopol’s artillery was out of action on this, the 27th day, of the Germans’ continuous assault. A week ago Russian correspondents reported that artillery emplacements had been shattered in a
PLAN TO BE TESTED
* (Continued from Page One)
rush hours, with schedules so arranged that full loads will be assured at all times. 7. Extension of bus service to war factories. 8. No more chartered busses for pleasure purposes. 9. Use of school busses to supplement regular facilities. 10. Street traffic control, by which stop-and-go signs are to be adjusted to effect the most efficient movement of mass traffic vehicles. 11. Continual study of schedules,
pediency. 12. Use of parkway busses. Meanwhile, Edward Zink, Indians apolis ODT administrator, urged war factory workers to follow the example already set at several Plans of “pooling” their autos.
roads by
The State Public Service Commission, acting at the request of the Office of Defense Transportation, today moved to eliminate none essential and duplicated publie transportation routes in the state. Frederick PF. Eichhorn, Gary, chairman of the commission, announced that PSC officials would survey -all bus and railroad tacili~ ties in Indiana in an effort to con-
serve vitally-needed jwranspotiation services.
1
12:15 “5”
Monday:
10 A. M. to 5:30 P. M.,
number. of points.
AYRES’
Will Be Closed All-Day
Tomorrow July 4th . . .
Store Hours Monday=-
New Summer Store Hours 12:15 P. M. to 8:45 P. M. Tuesday Through Friday:
Saturday: 9:30 A. M: to | P.M.
8:45 P. M.
1 I
[I |
Harold L. Fel:=y Harold J, Gar er James J. Gite: Dave A. Glare - Albert R. Bre: :a Francis A. Bu: thardt
EE ———————
uly 4th 1942...
Dedicated to the men of our armed forces who, like the embattled
farmers of one hundred sixty-six years ago, have left their peacetime
tasks to meet, with courage, the forces that threaten their ideals of
freedom and liberty.
how in military service.
Robert Goecker Carl J. Haas Walter L. Hadley Joseph L. Hall Frederic M. Ayres, Jr. Lyman 8. Ayres
o « dedicated especially to these men who formerly
forved pou at L. S. Ayres & Company and who are
Frank W. Schefer William Schobert Forrest L. Scott Patrick E. Shannahan ‘Joseph A. Lynch Harold C. McGee
William J. Stout
Wilbur B. Sharp, Jr. Enos E. Shumaker John M. Snoddy James L. Spellman Thomas M. Speliman
Charles E, Miller
‘Blair M. Csti:-ton Ebert Chatha » Eugene E Ha: is James Herdri:
Hugh G. Baker William F. Blackmore Charles K. Compton Harry Craig be,
Joseph A. Mayberry Francis J. Meyer ‘Edgar A. Strong
Landis, Dan T. Moore, Clarence A. Jackson, and Mayor Sullivan; army band; army troops—five companies; navy men and Indiana home guard.
tized demonstration of a municipal emergency control center at the Murat. : Mr. Landis will make his address following this demonstration.
ranean permits Rommel to receive fresh troops and supplies considerahly easier than the British and in Egypt can be rein- . Rommel’s reinforcements
like to keep clear of holiday motorist congestion are the Hoosier ordnance works at Charlestown, the Wabash Valley ordnance works
William P. Miller
eome only a few hundred whereas fresh aid from the i kingdom must come 14,000
Rommel, too, has been strengthby the British and American 8s and supp! which he capred in good condition or can easy salvage. Maximum Effort Needed
This stark picture of the situation nded to make clear the neces“of maximum efforts to rush that can be delivered to
crucial battlefront and to ex-|
mn why we must all prepare for 1g war than had been anticiiin
many quarters, en if Rommel is halted In the as in at the Japa d the war just as the Japa-
consequences | the Michigan at.
near Clinton, the shell loading plant at Kingsbury and Camp Atterbury near Columbus. ® » ”» . The army’s thrill show at the Fair Grounds is for the relief of soldiers’ dependents. Lucky Teter’s stunt troupe will be on hand, as well as a rodeo and other special acts. For an hour at each show the army will stage maneuvers and simulate an “attack.” At 2 p. m. tomorrow, there will be a public wedding. ] » 2 The downtown parade will march on the usual route: South on Pennsylvania st, from St. Clair st. to Washington, west on Washington to Illinois, north on Illinois to Market, east on Market to the Circle, right around the circle to N. Meridian and north on Meridian to St. Clair. Following the parade about 200 navy recruits will be sworn in on
Second Division
air raid warden;
civil air patrol and Red Cross. Third Division
Knights of Columbus, other fra-
Fourth Division
E. C. Atkins,
out the parade.
r| address
th
Police and fire chiefs and chief
fire apparatus; News Boys band; air raid wardens;
Boy Scouts’ band; Jewesh war veterans; other .veterans’ groups; Sahara Grotto drum corps, color guard and drill team, Eagles, Elks, Moose,
ternal organizations, women’s organizations and labor organizations.
Twelfth district, American Legion drum and bugle corps, navy recruits, American ‘Legion posts and legion auxiliary units, floats from Allison's and the Moose will be distributed through-
In connection with Mr. Landi’|
” » ® The fireworks display at Columbia park tomorrow night will include a picturization of the battle of Corregidor with Gen. MacArthur, President Roosevelt, Spirit of 1776, Old Glory and comics for the children and others." Z Gates to the park will open at 9 a. m. both tomorrow and Sunday and on Sunday there will be a homecoming picnic. Ted Campbell's or-
2 to 5 and 8 to 12 p. m. both days
tainment features. ® ® »
Sahara Grotto, which annually}
bowl, has canceled them this year in co-operation with the government’s efforts to conserve rubber.
chestra will play for dancing from |] and there are to be other enter-|}
staged fireworks displays at Butler|}
Donald H. He: stis Ross A. Daglic: 1 John Richard Davis John W. Davi: - Meredith E. ¢ Rear Robert E. Par ett Ralph R. Phillips R. Leon Rain ater Joseph J. Rer han C. Gene Rob: on
The Sov]. is now Ring used Tor tie
Robert V. Creighton Roy E. Holt Clayton B. Hord Charles A. Hurt Robert D. Keel James E. Keyt Maurice T. King Edward R. Kingsbury John B. Lansing : William F. Luoas
David A. Suddeth Marion E. Sullivan Merrill G. Sullivan Jack W. Moore . James C. Roney Gordon R. Dunn
Edwin M. Eokard Sa doth M. Edmundson
umes 3, Etats.